Volunteers of America of North Louisiana,...

Volunteers of America of North LouisianaShreveport, Louisiana

June 30, 2008

jnder provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public-officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date


Table of Contents

Page

1 Statement of Financial PositionJune 30, 2008 (with Comparative Totals for 2007)

2 Statement of Activitiesfor the Year Ended June 30, 2008 (with Comparative Totals for 2007)

3 Statement of Functional Expensesfor the Year Ended June 30, 2008 (with Comparative Totals for 2007)

4 Statement of Cash Flowsfor the Year Ended June 30, 2008 (with Comparative Totals for 2007)

5 Notes to the Financial StatementsJune 30, 2008

15 Additional Information

16-17 Schedule of Expenditures of Federal Awardsfor the Year Ended June 30,2008

18 Independent Auditor's Report

19 - 20 Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial Statements Performedin Accordance With Government Auditing Standards

21 - 22 Report on Compliance with Requirements Applicable to Each MajorProgram and on Internal Control Over Compliance in Accordancewith OMB Circular A-133

23 Schedule of Findings and Questioned Costs

24 Corrective Action Plan

Volunteers of America of North LouisianaShrovoport, Louisiana

Statement of Financial PositionJune 30, 2008

(with Comparative Totals for 2007)

2008 2007Assets

Current AssetsCash and Cash EquivalentsInvestmentsAccounts Receivable, NetPrepaid ExpensesOther Current Assets. Net

Total Current Assets

Property and EquipmentLandBuildings and Leasehold ImprovementsFurniture and EquipmentLess: Accumulated Depreciation

Total Property and Equipment

Long-Term Investments

343.034 $457.229

1.453.111223,34940.918

2,517,641

23.8751.928.1521.599.856

( 1.966.107)1.585.776

6,944

169.768396.613

1,727.183262.035176.381

2,731,980

23,8751.711.9191.438,462

( 1.664.136)1.510,120

9.784

Other Assets

Total Assets

492.553 2,985

4.602.914 $ 4.254.869

Liabilities and Not Assets

Current LiabilitiesAccounts PayableCurrent Portion of Notes PayableAccrued Expenses

Total Current Liabilities

Noles Payable • Long-Term PortionTotal Liabilities

Not AssetsUnrestrictedTemporarily RestrictedPermanently Restricted

Total Net Assets

Total Liabilities and Net Assets

704,646555,019717,344

1.977.009

115.4382.092.447

2,372.55257.66580.250

2,510.467

651.427806,937708.971

2,167,335

2.167,335

2.055,57031,964

2.087.534

4.602.914 $ 4.254.869

The accompanying Notes are an integral part of those statements.1


Statement of Activitiesfor the Year Ended June 30, 2008(with Comparative Totals for 2007)

Revenues from OperationsPublic Support Received Directly

ContributionsChallenge GrantContributions, In-KindGovernment Fees and GrantsMedicatd Service Fees

Public Support Received IndirectlyService Fees and SalesUnited Way

A/of Assets Released from RestrictionsSatisfaction of Program Restrictions

Total Revenues From Operations

Operating ExpensesProgram Services

Encouraging Positive DevelopmentFostering IndependencePromoting Self-Sufficiency

Total Program Services

Support ServicesManagement and GeneralFund Raising

Total Support Services

Total Operating Expenses

Unrestricted

$ 2.518,772 $

250.0003.714,0563.976.551

244.056224,905

6,352.03717,280.377

5,765.628

6,110,0332.467.06014.342,741

Temporarily PermanentlyRestricted Restricted

2008Total 2007

2.100.526601.415

2,701.941

17.Q44.6B2

42,951 $500.000

5,834.787

80.250 $

6,352.037)25.701 80.250

2.641,973500,000250.000

9,548.8433.976.551

244,056224.905

17.386.326

5.765.6286.110.0332.467.08014.342.741

2.100.526601.415

2.701.941

17.044.682

$ 1.831.980

102.5008,989,5233,602.249

229.732281.256

15.037,240

4,208.0765,102.0643.405.79712.715.937

1.913.931737.034

2.650,965

15,366.902

Excess from Operations 235,695

Non-Oporating Gains (Losses) and Other RevenueInvestment Income (Loss) 7.002Gain (Loss) on Investment Transactions ( 17,624)Rental Income 85,733Other Income 6.176

Total Non-Operating Gains (Losses)and Other Revenue 81.287

Change In Net Assets

Net Assets at Beginning of YearNet Assets at End of Year

316,982

2.055.570$ 2.372.552

25.701 80,250

80.250

341.646 ( 329.662)

7.002( 17,624)

85,7336.176

81.287

20,16630,130

103,43113,367

167,094

422.93325.701

31.964 - 2.087.53457.665 $ 80,250 $ 2.510,467

162,568)

2.250,1022.087.534

The accompanying Notes are an integral part of these statements.2

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Statement of Cash Flowsfor the Year Ended June 30, 2008(with Comparative Totals for 2007)

2008 2007

Cash Flows from Operating ActivitiesChange in Net Assets

Adjustments to Reconcile Change in Net Assets to Net CashProvided by (Used in) Operating Activities

Depreciation(Gain) Loss on Investment Transactions(Increase) Decrease in:

Accounts ReceivablePledges ReceivablePrepaid ExpensesOther Current AssetsOther Assets

Increase (Decrease) in:Accounts PayableContract AdvancesAccrued Expenses

Net Cash Provided by (Used in) Operating Activities

Cash Flows from Investing ActivitiesProceeds from Sale of Investments

Transfer to Investments

Purchase of Investments

Purchase of Fixed AssetsNet Cash Provided by (Used in) Investing Activities

Cash Flows from Financing ActivitiesPayments on Notes PayableProceeds from Issuance of Notes Payable

Net Cash Provided by (Used in) Financing Activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents - BeginningCash and Cash Equivalents - Ending

Supplemental Disclosure of Cash Flow InformationCash Paid for Interest During the Year

$ 422,933 $ ( 162,568)

301,96917.624

274,072

38.686135.463489,568)

53,219

8.373762.771

( 1,511.480)1,375.000

( 136.480)

272.856( 30,130)

( 187.153)50,000

( 45.219)

108,619

106.965)

72.775)

205.09831,763

148,740 173,197

( 80.280) ( 90.665)

( 143.859) ( 142,685)

( 377.626) ( 548.394)( 453.025) ( 608.547)

( 137,950)700.000

562.050

173.266 ( 14.734)

169.768 184,502343.034 169.768

58,243 $ 44,213

The accompanying Notes are an integral part of these statements.4


Notes to Ihe Financial StatementsJune 30, 2008

Note 1 OrganizationVolunteers of America of North Louisiana ("VGA" or "the VGA") is a nonprofit spiritually based human servicesorganization, incorporated in the State of Louisiana, that provides social services within North and CentralLouisiana as a subsidiary corporation of Volunteers of America, Inc., a national nonprofit spiritually basedorganization providing local human service programs, and opportunities for individuals and communityinvolvement.

The VGA's programs are grouped into three major impact areas;

Encouraging Positive DevelopmentWithin the impact area of encouraging positive development, VOA provides services to encourage positivedevelopment for troubled and at-risk children and youth, while also promoting the healthy development of allchildren, adolescents and their families. VGA's programs provide a continuum of care and support for youngpeople, ages birth to 21, through prevention, early intervention, crisis intervention and long-term services.

This impact area includes the following categories:

Children and YouthWhatever It Takes provides linkage, referral, planning, assessment and advocacy services to childrensuffering from a serious emotional disturbance in an effort to reduce hospitafizalions and (o allow them to livein the community. The program is primarily funded by federal funds passed through the State of LouisianaDepartment of Health and Hospitals.

Family Resource Center provides family preservation support and respite to fostering and adopting familiesand to families in need of supervision. The program is funded by federal money passed through the State ofLouisiana Office of Community Services.

Family Resource Center Jena provides family preservation support and respite to fostering and adoptingfamilies and to families in need of supervision and is funded by federal money passed through the State ofLouisiana Office of Community Services.

Mentoring Adolescents in Need of Support is designed to give at-risk students the opportunity to be with amentor, exposing them to positive experiences that will better them in the future. The program is funded byUnited Way and private donations.

Project Hope provides a pre-vocational training program for eligible youths ages 14 - 21 and is primarilyfunded by federal funds passed through the City of Shreveport, Louisiana.

Pregnancy and Adoption Services provides comprehensive care for pregnant girls and women, birth fathers,and their families by providing options counseling and case management and provides licensed adoptionservices throughout North and Central Louisiana and Southern Arkansas and is primarily funded by UnitedWay funds, private contributions, federal grants and program service fees collected from adoption clients.

Teen Pregnancy Prevention provides educational and support services for youth with the specific goal ofreducing the number of out-of-wedlock pregnancies and is funded by federal funds passed through the Stateof Louisiana Department of Social Services and Office of Family Services.

Mental Health Respite Alexandria provides temporary respite for families of children and adolescents withemotional disturbances and is primarily funded by federal money passed through the State of LouisianaOffice of Mental Health.

Scholastic Books Program provides books donated by Scholastics Books to children in lower-incomefamilies through VOA of North Louisiana.

Career Vision provides one week of intensive job readiness training for 19 - 21 year olds and also assists inrecipients obtaining their G.E.D and is primarily funded by federal funds passed through the City ofShreveport, Louisiana.

Lighthouse Programs provides after-school homework assistance and tutoring and a teenage pregnancyprevention program and is primarily funded by United Way and private donations.

Quality Child Care Initiative is a center-based "parents as teachers" program that provides parent andchildcare giver education, parent enrichment and an early literacy program whereby participants areencouraged to read books handed out to the children. This program is primarily funded by federal fundspassed through the State of Louisiana Department of Social Services.

Twin Cities Early Head start promotes school readiness by enhancing the social and cognitivedevelopment of low-income children through the provision of health, educational, nutritional, social, andother services that are determined, based on family needs assessments, to be necessary. The programis primarily funded by federal funds passed through the State of Louisiana Department of Social Services.

21il Century Community Learning Centers program provides students from low-performing, school-wideTitle I schools the opportunities in the out-of-school hours to engage in content-rich learningencompassing academics, the arts, recreation, technology, and other youth-development activities thatare supported by scientifically based research. In addition, the families of students should have access toadult education, literacy, and other needs-based, innovative activities at the school site. The program isfunded by the U.S. Department of Education.

Community Response Initiative provides enhancement to the Lighthouse programs by providingmentoring, a resource center, crisis intervention and counseling and other educational and skillsprograms. It is primarily funded with federal funds passed through the Louisiana Department of SocialServices.

LA Promise provides early childhood parent education programs and support services, adult learning/jobopportunities and promotes academic achievement through parental involvement. It is primarily fundedwith federal money from the U.S. Department of Education.

Intensive Home Based Services provides intensive, short-term crisis intervention and teaching/educationalservices in the homes of families being served. It is primarily funded with federal money passed throughthe Louisiana Department of Social Services.

Rural Outreach Monroe facilitates access to community based services that serve families ofchildren/youth with emotional, behavioral or mental disabilities. It is primarily funded with federal moneypassed through the Louisiana Department of Health and Hospitals.

Mobile Parent Education provides training opportunities for families of children and youth determined tohave emotional/behavioral disorders and increases public awareness of children/youth mental healthissues.

Fostering IndependenceWithin the impact area of fostering independence, VOA fosters the health and independence of the elderly andpersons with disabilities, mental illness and HIV/AIDS through quality affordable housing, health care servicesand a wide range of community services.


Disabilities ServicesPersonal Care provides personal care attendant services to developmental^ disabled adults and is primarilyfunded by the Federal Medicaid Program.

Supported Independent Living provides supervised apartment living to mentally retarded/developmentallydisabled adults and is primarily funded by the Federal Medicaid Program.

Service Coordination provides service coordination for clients with disabilities in the HUD 202 and 811projects, primarily funded by the U.S. Department of Housing and Urban Development.

Assertive Community Treatment provides adult consumers with skills toward the goals of preventinghospitalization, meeting basic needs, enhancing quality of life, providing employment and social skillstraining with the goal of decreasing dependence on Iheir families. It is primarily funded with federal moneypassed through the Louisiana Department of Health and Hospitals.

Traumatic Head Injury/Spinal Cord Injury (SHV, ALX and MOM) provides PCA, case management andother supportive services to persons with traumatic head and spinal cord injuries. Funded by LouisianaDepartment of Social Services-LRS Trust Fund.

Housing for tho Disabled and ElderlyVOA has entered into management agreements with various organizations, which are part of the NationalAffiliation with Volunteers of America, Inc. The activities are primarily funded with management feesgenerated by the management agreements. VOA manages the following entities:

Entity Name d/b/a Name Project TypeShreveport VOA Community Living Center I, Inc. Corbitt Lodge Section 202Shreveport VOA Community Living Center II, Inc. Greenwood Lodge Section 202Ruston VOA Living Center, Inc. Independence Meadows Section 811Bossier City VOA Independent Housing, Inc. Independence Lodge Section 811Alexandria VOA Living Center, Inc. New Haven Square Section 811Pineville VOA Living Center, Inc. Pinehaven Place Section 811

Mental Health Housing Alexandria provides housing for mentally ill individuals and is funded by the U.S.Department of Housing and Urban Development.

Rural Mental Health Housing provides case management that supports the seriously ill and promotes thetransition from homelessness to permanent housing. This program is funded by the U.S. Department ofHousing and Urban Development.

HUD Housing Monroe provides safe and affordable housing with supportive services for the homelessmentally ill in Ouachita, Richland and Caldwell Parishes and is primarily funded by the U.S. Department ofHousing and Urban Development and State of Louisiana Office of Mental Health.

HUD L.I.T.S (Louisiana Integrated Treatment Services) provides housing and support services for clientswith co-occurring disorders, assisting them in the process of going from homelessness to permanent housingand is funded by the U.S. Department of Housing and Urban Development and State of Louisiana Office ofMental Health.

G.A.P.S. provides group home residential care for mentally challenged adults. It is funded by U.S.Department of Housing & Urban Devefopment and the Office of Mental Health.

Mental HealthAssertive Community Outreach Services are designed to provide assistance to the consumer in obtainingand maintaining necessary support to achieve or improve community living situations and are provided intheir natural environment in the community where they live. The program is primarily funded by federal fundspassed through the State of Louisiana Department of Health and Hospitals.

HUD Minden provides housing for mentally ill individuals and is funded by the U.S. Department of Housingand Urban Development.

Assertive Community Treatment program is designed to assist seriously mentally ill adults andemotional/behavior disordered children in receiving services in the area of assessment, service planning andadvocacy. The services are designed to provide assistance to the consumer in obtaining and maintainingnecessary support to achieve or improve community living situations. These services are provided in theirnatural environment in the community where they live and are primarily funded by the State of LouisianaOffice of Mental Health.

Rural Assertive Community Treatment program is designed to assist seriously mentally ill adults andemotional/behavior disordered children in receiving services in the area of assessment, service planning andadvocacy. The services are designed to provide assistance to the consumer in obtaining and maintainingnecessary support to achieve or improve community living situations. These services are provided in theirnatural environment in the community where they live and are primarily funded by the State of LouisianaOffice of Mental Health and the U.S. Department of Housing and Urban Development.

Shreveport Mental Health VGA acts as fiscal agent for the community mental health centers in Region VII inobtaining support to achieve, maintain and improve home and community based living. The program isprimarily funded by federal funds passed through the State of Louisiana Department of Health and Hospitals.

Transitional Residential Living teaches independent living skills to mentally ill adults and provides temporaryshelter to the mentally ill homeless and is funded by federal money passed through the State of LouisianaOffice of Mental Health.

McAdoo provides long-term housing for mentally ill homeless individuals in a safe, decent and sanitaryenvironment and is primarily funded by state and federal funds passed through the State of LouisianaDepartment of Health and Hospitals,

H.O.P.S. (Housing Opportunities for Permanent Solutions) provides housing for mentally ill individuals; andis funded by the U.S. Department of Housing and Urban Development and the Slate of Louisiana Office ofMenial Health.

LA Rehabilitation Services provides employment services including assessment, counseling, jobdevelopment, employment placement and support services and is primarily funded by State of LouisianaDepartment of Social Services.

Eligibility Assistance provides assistance to mentally handicapped people in Regions VI, VII and VIII whoappear to be eligible to qualify for supplemental security income, social security disability and/or medicalbenefits. The assistance is primarily funded by state and federal funds passed through the State ofLouisiana Office of Mental Health.

Vision of Hope provides day programs for adult mental health consumers with serious mental illness.Funded by federal monies passed through the Louisiana Department of Health and Hospitals.

Rural Family Support provides services to families of children with emotional and behavior disorders ormental illnesses by providing service coordination and parent support. It is funded by State of LouisianaOffice of Mental Health.

ICS Enhancement provides counseling and education for daily living skills to mental health consumers. Itis funded by the Office of Mental Health.

Promoting Solf-SufficloncyWithin the impact area of promoting self-sufficiency, VGA works to promote the self-sufficiency of those whohave experienced homelessness or other personal crisis, including chemical dependency, involvement with thecorrections system and unemployment. VGA focuses on solution-oriented approaches, using a continuum ofservices from prevention to intervention to long-term support.


Correctional ServicesTracker Services keeps up with young persons released from juvenile detention centers to live at home. Theservices are funded by the State of Louisiana Department of Public Safety.

OYD Court Empowerment provides a community based prevention and diversion service to reduce thenumber of at risk youth that are removed from a family environment and placed in custody of OYD. It isprimarily funded by the State of Louisiana Office of Youth Development.

Homeless ServicesIntensive Sheltering Program provides shelter to clients who are mentally ill and homeless and is funded byfederal money passed through the Louisiana Department of Health and Hospitals.

Magnolia Place provides housing and support service for adult consumers who are homeless or at risk ofbeing homeless due to serious mental illness or affected by Hurricane Katrina. It is primarily funded withfederal money passed through State of Louisiana Department of Health and Hospitals.

Transitional Housing provides a transitional housing program for male and female adults with seriousmental illness, equipping consumers to transition into individual living. It is primarily funded by State ofLouisiana Office of Mental Health.

ACT Mobile Crisis provides assertive community treatment, case management and mobile crisis servicesto seriously mentally ill adults in Region VIII. it is primarily funded by the State of Louisiana Office ofMental Health passed through University of Louisiana at Monroe.

Transitional Living provides transitional Living Program for youths 16-21 years of age. It is funded byFederal money passed through the State of Louisiana Department of Heath and Hospitals.

Housing for Families and Single AdultsHousing Services provides management of VGA's housing programs and the first-time home buyerprogram. The services are funded primarily by donations and a HUD grant.

Individual Development Account provides information on home ownership and business start-ups and isprimarily funded by program fees.

Employment and Training ServicesEmployment Counseling is a micro-enterprise endeavor to promote art for sale, thus generating incomeand creating occupations for those with disabilities and is primarily funded by state and federal fundspassed through the State of Louisiana Office of Mental Health.

LA HOPE program is an initiative by the Social Security Administration to secure health care coverage tohelp chronically homeless people with disabilities and is primarily funded by the Social SecurityAdministration passed through Louisiana State University.

La Family Recovery Corps - VOA has deployed trained professionals (Family Liaisons) to work one-on-one with impacted families from parishes for which a major disaster has been declared under the RobertT. Stafford Disaster Relief and Assistance Act pursuant to Hurricanes Katrina and Rita. VOAcommunicates families' needs to Louisiana Family Recovery Corps and service providers, andappropriately link Louisianans to the recovery services they require. VOA delivers services andemergency assistance in areas of need which have been underserved or where resources have beendepleted.

Work Incentive Program Assistance identifies individuals in need of assistance and provides trainingworkshops and referrals to other agencies for further services. It is primarily funded with federal moneypassed through Louisiana State University.

KAID provides aid to disabled Hurricane Katrina evacuees and is funded by the Advocacy Center.

Disaster Assistance Consumer Care Resources provides services to Region VII evacuees displaced byHurricanes Katrina and Rita. These services enable evacuees to maintain/improve their ability to functionin the community. It is primarily funded with federal money passed through the State of LouisianaDepartment of Health and Hospitals.

Dress for Success provides job related clothing assistance to clients and is funded through privatedonations.

Katrina Aid Today - VOA is participating in the National Case Management Consortium, utilizing a cadreof 60 professional case managers and 240 trained volunteers to provide individualized case managementservices that will empower 9,600 Hurricane Katrina disaster survivors to achieve stability and self-sufficiency. This goal will be achieved through subcontracts with approximately ten local VOA affiliates inLouisiana, Mississippi, Alabama and other targeted communities outside the Gulf Coast region, plus withInternational Relief and Development's (IRD) office In Gulfport-Biloxi, Mississippi.

The continued existence of new funds for the preceding programs, which are primarily funded through grantsand contracts, will be dependent upon contractual renewals with VGA's various funding sources.

Note 2 Summary of Significant Accounting PoliciesBasis of Accounting - The accounting policies of VOA conform to generally accepted accounting principles asapplicable to voluntary health and welfare organizations. VOA prepares its financial statements on the accrualbasis of accounting. Accordingly, revenues are recognized when earned and expenses are recognized whenincurred. The more significant accounting policies of the VOA are described below:

Accounts Receivable - The VOA predominantly extends credit through billing for reimbursement of allowed costsin connection with providing services under contract with various federal and state agencies. The VOA alsoextends credit to select individuals in the course of performing adoptions and other services for fees in Centraland North Louisiana. All extensions of credit are on an unsecured basis. Grant receivables are recorded at theamount billed and are deemed delinquent based on contractual terms.

Allowance for Doubtful Accounts - The allowance for doubtful accounts is evaluated on a regular basis bymanagement and is based upon management's periodic review of the collectibility of the receivables in lightof historical experience, the nature and type of account, adverse situations that may affect the payer's abilityto repay and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimatesthat are susceptible to significant revision as more information becomes available. Receivables deemeduncollectible are charged off against the allowance when management believes the uncollectibility isconfirmed.

Property and Equipment - Land, buildings and equipment purchased by the VOA are recorded at cost. VOAcapitalizes all expenditures for land, buildings and equipment in excess of $1,000; the fair value of donated fixedassets is similarly capitalized. Depreciation is computed on the straight-line method based upon the followingestimated useful lives of the assets: furniture and equipment - five to seven years; transportation vehicles - fiveyears and buildings and improvements - thirty years. Certain property and equipment purchased with grantfunds may revert back to the funding agency if the program is closed or abandoned and proceeds from the saleof certain property could be returned to the granting agency.

Cash Equivalents - Cash equivalents are all highly liquid investments with a maturity of three months or lesswhen purchased, unless held for reinvestment as part of the investment portfolio, pledged to secure loanagreements or otherwise designated or restricted. The carrying amount approximates fair value because of theshort maturity of those instruments.

Contributions - Contributions are generally recorded only upon receipt, unless evidence of an unconditionalpromise to give has been received. Unconditional promises to give that are expected to be collected in futureyears are recorded at the present value of the amounts expected to be collected. Conditional promises to giveare not included as support until such time as the conditions are substantially met. All contributions areconsidered available for unrestricted use unless specifically restricted by the donor.

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Contributed Services - The VGA recognizes contribution revenue for certain services received at the fair value ofthose services, provided those services create or enhance non-financial assets or require specialized skilfs,which are provided by individuals possessing those skills and would typically need to be purchased if notprovided by donation.

Restricted and Designated Assets - Restricted and designated assets, if any, represent the total of all assetsthat are encumbered by donor restrictions, legal agreements and board designation or are otherwise unavailablefor the general use of the VGA. This category generally includes client/custodial funds, escrow/reserve funds,temporarily and permanently restricted assets and securities that are pledged and held by the lender ascollateral for financing.

Net Assets - The VGA classifies net assets into three categories: unrestricted, temporarily restricted andpermanently restricted. All net assets are considered to be available for unrestricted use unless specificallyrestricted by the donor or by law. Temporarily restricted net assets include contributions with temporary,donor-imposed time or purpose restrictions. Temporarily restricted net assets become unrestricted and arereported in the statement of activities as net assets released from restrictions when the time restrictionsexpire or the contributions are used for the restricted purpose. Permanently restricted net assets includecontributions with donor-imposed restrictions requiring resources to be maintained in perpetuity, butpermitting use of all or part of the investment income earned on the contributions.

Operations - The VGA defines operations as all program and supporting service activities undertaken (see Note1). Revenues that result from these activities, and their related expenses, are reported as operations. Gains,losses and other revenue that result from ancillary activities, such as investing liquid assets and disposing offixed or other assets, are reported as non-operating.

Income Taxes - Under provisions of Section 501(c)(3) of the Internal Revenue Code and the applicable incometax regulations of the State of Louisiana, Volunteers of America of North Louisiana is exempt from income taxes,except for net income from unrelated business income, as a subordinate unit of Volunteers of America, Inc.Volunteers of America, Inc. is exempt from federal income taxes under Section 501(a) of the Internal RevenueCode as a religious organization described in Section 501(c)(3). There were no unrelated business activities in2008. Accordingly, no tax expense was incurred for the year ended June 30,2008.

Investments - Investments consist primarily of bond and corporate mutual funds, stocks and cash reserve funds.They are recorded at fair value based on quoted market prices. All other investments are reported at historicalcost, if purchased, or, if contributed, at fair value at the date contribution.

Summary Financial information for 2007 - The financial statements include certain prior year summarizedcomparative information in total but not by net asset class. Such information does not include sufficient detail toconstitute a presentation in conformity with generally accepted accounting principles. Accordingly, suchinformation should be read in conjunction with the VGA's financial statements for the year ended June 30, 2007,from which the summarized information was derived.

Allocation of Functional Expenses - The costs of providing the various program services and supportingactivities have been summarized on a functional basis in the statement of activities. Accordingly, certain costshave been allocated among the various functions.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates and assumptions that affectthe amounts reported in the financial statements and accompanying notes. Actual results coufd differ fromthose estimates.

Reclassification - Certain 2007 amounts have been reclassified to conform to the 2008 financial statementpresentation.

Concentrations of Credit Risk - The VGA maintains its cash balances at several different financial institutionsand investment companies in its service delivery area. The balances with the financial institutions are insured bythe FDIC up to $100,000 for each bank. The VGA can have exposure from time to time due to cash balancesheld in excess of the FDJC coverage. At June 30, 2008, VGA's cash balances were fully secured.

11

Included in cash and cash equivalents is $174.133 in overnight repurchase agreements that are unsecured.

VOA has ihe following mix of grant receivables and grant revenue at June 30, 2008:Receivable Revenue

Medicaid waiver program 16 % 30 %U.S. Department of Health and Human Services 65 % 49 %U.S. Department of Education 6 % 8 %U.S. Department of Homeland Security - % 3 %U.S. Department of Housing and Urban Development 9 % 6 %Other Sources 4_ % 4_ %

Total 100 % 100 %

Note 3 Temporarily Restricted Not AssetsTemporarily restricted net assets at June 30, 2008 were composed of undistributed contributions earmarked forscholarships or other expenses under the Lighthouse program.

Note 4 Permanently Restricted Net AssetsPermanently restricted net assets at June 30, 2008 were composed of cash contributions totaling $30,250 tobenefit VGA's adoption program and $50,000 to benefit the greatest need of the Organization. Both donorsstipulated that the VOA annually distribute a percentage of the annual market value of the fund (as determinedby the Board of Directors), to include earned income and realized gain, and that the corpus of the trust willremain and grow in perpetuity.

Note 5 InvestmentsInvestments at June 30, 2008, are summarized as follows:

Cost Fair ValueBond Mutual and Money Funds $ 377.209 $ 381,454Corporate Bonds 10,000 6,944Stocks 14,457 20.060Certificates of Deposit 54.000 55,715

455,666 464,173Less Current Investments 445.666 457.229

Long-Term Investments $ 10,000 $ 6.944

Investment income at June 30. 2008 is composed of interest and dividends of $7,002. Gain (loss) oninvestment transactions at June 30, 2008 is composed of net realized gains of $37,636 and unrealized losses of$55.260.

Note 6 Accounts ReceivableAt June 30, 2008, accounts receivable consisted of the following:

Grants and Contracts Receivable $ 1.453.111Less Allowance for Uncollectible Receivables ( - )

Total $ 1.453.111

Note 7 Notes PayableLine of credit payable to a financial institution, with a maximum credit of $650,000with interest based on JPMorgan Chase prime plus .5% (5.5% at June 30, 2008)maturing January 31, 2009. secured by deposits, real estate and land. $ 450,000

Note payable to a financial institution in the original amount of $300,000 withinterest based on JP Morgan Chase prime plus ,5% (5.5% at June 30, 2008),payable in thirty-six (36) monthly installments of $9,544, including interest, dueAugust 31. 2010, secured by land and buildings. 220.457

Total 670,457Less Current Portion ( 555.019 )

Long-Term Portion $ 115.438

12

The following is a schedule of the debt maturing in subsequent fiscal years ending June 30:

2009 $ 555.0192010 110,9432011 4.495Total $ 670.457

Interest expense for the year ended June 30,2008, was $58,243.

Note 8 LeasesThe VOA leases certain facilities and equipment from unrelated parties under operating leases, which expire atvarious dates. The minimum future lease obligations under such leases are as follows for Ihe fiscal yearsending June 30:

2009 $ 211,7172010 182,4482011 116.463

510,628

Total rent expense under all leases amounted to $291,282 for the year ended June 30, 2008, and is included inoccupancy expense.

Note 9 Pension Plan for MinistersThe VOA participates in a non-contributory defined benefit pension and retirement plan. The plan isadministered through a commercial insurance company and covers all commissioned ministers. Pension planexpense was $22,636 for the year ended June 30, 2008. Because the plan is a multi-employer plan, theaccumulated benefits and net assets available for benefits as they relate solely to the VOA are not readilyavailable.

Note 10 Retirement PiansThe VOA joined the national retirement savings plan of Volunteers of America, Inc., which is organized underInternal Revenue Code Section 403(b). The plan allows all employees with one year of service to participate.Employees are able to contribute annually up to the statutory limitations, currently $15,500. Employerdiscretionary contributions are up to one (1%) percent of the employee's salary, limited to fifty (50%) percent ofthe employee's contribution. In addition, Volunteers of America, Inc., Ihe plan sponsor, contributes four (4%) ofthe employee's salary. Contributions made to the plan are at the discretion of the Board of Directors.Retirement plan expense was $198,601 for the year ended June 30, 2008, under this plan.

Note 11 Related-Party TransactionsVOA is affiliated with Volunteers of America, Inc., which provides supporting services to the VOA for a fee.Affiliate fees for the fiscal year ended June 30, 2008, totaled $344,565. The amount due Volunteers of America,Inc. for administrative fees as of June 30,2008, was $134,466.

VOA manages six HUD projects that are part of the national affiliation of Volunteers of America, Inc.Management, salaries and bookkeeping fees paid by the projects for the year ended June 30, 2008 were$340,633. Of this amount, $47,798 was for management and bookkeeping fees. At June 30, 2008, the projectsowed VOA $489,568, which is included in other assets.

VOA is affiliated with Volunteers of America of North Louisiana Highland Center Corporation (VOA HCC).Certain expenses are paid by VOA on behalf of VOA HCC. At June 30, 2008, VOA HCC owed $719.783, (ofwhich $719,783 is reserved as uncollectible) to VOA and is included in other current assets. It was the opinionof management that based on current projections, the amount due would not be collectible.

VOA HCC also leases building space from VOA. Rent paid to VOA for the year ended June 30, 2008, totaled$46,000.

13

VGA participates in the Scholastic Books Program whereas donated books are given to children in lower-incomefamilies. VGA recorded $250,000 in revenue and expense from participating in this program.

Note 12 Compensated Absences - Accrued LeaveEmployees may accrue up to 160 hours of vacation leave each year. Upon an employee's separation ofemployment, earned and/or accrued leave will be paid up to a maximum of 160 hours. Employees can alsoaccrue sick leave, but accumulated sick leave Is forfeited upon separation of employment.

At June 30, 2008, the approximate amount of accumulated and vested employee leave benefits was $218.636.which is included in Accrued Expenses.

Note 13 Accrued ExpensesAt June 30, 2008, accrued expenses consisted of the following:

Accrued payroll and related taxes and withholdings $ 498,708Accrued leave payable 218.636

Total $ 717,344

14

Additional Information

15

Volunteers of America of North LouisianaShroveport. Louisiana

Schedule of Expenditures of Federal Awardsfor the Year Ended Juno 30, 2008

Federal Grantor/Pass-Through Grantor/Program Title

U.S. Department of Health and Human ServicesPassed through the State of Louisiana Department of Health and Hospitals

Block Grants for Community MH Services - McAdooBlock Grants for Community MH Services - Housing ProgramBlock Grants for Community MH Services - Adjunctive ServicesBlock Grants for Community MH Services - OMH ConsultingBlock Grants for Community MH Services Red River Artist with Disab.Block Grants for Community MH Services - Vision of HopeBlock Grants for Community MH Services - SSI-Reg. VI & VII Elig. Ass.Block Grants for Community MH Services - SSI-Reg VIII Elig. Ass.Block Grants for Community MH Services - Child/ Youth CCRBlock Grants tor Community MH Services - Adult CCRBlock Grants for Community MH Services - Whatever it TakesBlock Grants for Community MH Services - Assert. Comm. 0/R & TRLProjects for Assistance in Transition From Homelessness - L.I.T.S.Social Services Block Grants - Intensive Sheltering ProgramBlock Grants for Community MH Services - Respite (Props) - AlexBlock Grants for Community MH Services - Rural Outreach

Passed through the State of Louisiana Department of Social ServicesSocial Services Block Grant - SHV Family PreservationSocial Services Block Grant - Intensive Home Based Serv - ShvTANF - Community Response Inillativo-SHVTransitional Living for Homeless Youlh - Transitional Living ProgramTANF- Alexandria Q.T.I.P.TANF - Community Response Initiative - AlexPromoting Safe & Stable Families - Alex. Child WelfareSocial Services Block Grant - Alex. Family PreservationSocial Services Block Grant - Alex. Family ReunificationTANF - TPPP - JonaHead Start - Early Head StartHead Start - Early Head Start

Passed through Louisiana Family Recovery CorpsSocial Services Block Grant - KAT-LFRC

Passed through SpauldingInfant Adoption Awareness Training - Spaulding for ChildrenInfant Adoption Awareness Training - Spaulding for Children

U.S. Department of Aqricullure Food and Nutrition ServicePassed through Louisiana Department of Education-CACFP

Child and Adult Care Food Program - Early Head StartChild and Adult Care Food Program - Early Head Start

U.S. Department of Education21st Century Community Learning CentersParental Assistance Centers - LA PromiseSafe and Drug Free Schools and Communities - Life Support

FederalCFDA

Number

93.95893.95893.95893.95893.95893.95893.95893.95893.95893.95893.95893.95893.15093.66793.95893.958

93,66793.66793.55893.55093.55893.55893.55693.66793.66793.55893.60093.600

93.667

93.25493.254

10.55810.558

84.28784.31084.184

Pass-Through

Grantor'sNumber

621326621327647662654784654784654040634074634430651790651643634510641599622357647274622355645543

625704unknown645972

06CX0767/01630646645972626282628053

unknown652497

06CH70240506CH702406

unknown

unknownunknown

25-09125-091

615469U310A060137Q184B080065

TotalFederal

Expenditures

$ 72,14060,200

1.7009.500

18.00069,93667,91453.38848.3674,858

38.47046,91936,912

-22,70029,611

-184,039162.99838,353

125.000175,408643,530

-230,70662,785

594,820507,768

75,728

35,97886,261

5.46922.929

258,052560,74935.977

Passed through La. Department of Social ServicesTANF * After School for All 93.558 660333

Passed through Caddo Parish School BoardTitle I Grants to Local Educational Agencies - Supple. Educational Svcs 84.010 unknown

167,672

30,522

16

Federal Grantor/Pass-Through Grantor/Program Title

U.S. Department of laborPassed through City of Shreveport, Louisiana

WIA Youth Activities - Project HopeWIA Youth Activities - Career Vision

U.S. Department of Housina and Urban DevelopmentSupportive Housing Program - Rural Acts HomelessSupportive Housing Program - Minden HousingSupportive Housing Program - Minden HousingSupportive Housing Program - Shreveport HousingSupportive Housing Program • Shreveport HousingSupportive Housing Program - GAPSSupportive Housing Program • L.I.T.S.Supportive Housing Program • L.I.T.S.Supportive Housing Program • Supportive Permanent HousingSupportive Housing Program - Supportive Permanent HousingSupportive Housing Program - Supportive Permanent HousingSupportive Housing Program • Supportive Permanent HousingSupportive Housing Program - Monroe HousingSupportive Housing Program - Monroe Housing

Passed through Home Free USAHousing Counseling Assistance Program - Housing ServicesHousing Counseling Assistance Program - Housing Services

Community Development Block GrantsPassed through City of Bossier City, Louisiana

CDBG - Lighthouse BossierCDBG - Lighthouse Bossier

Passed through City of Shroveport. LouisianaCDBG - Project HopeCDBG - 21st Century Learning CenterCDBG - Lighthouse BossierCDBG - Travis StreetCDBG - Highland Center

FederalCFDA

Number

17.25917.259

14.23514.23514.23514.23514.23514.23514.23514.23514.235t4.23514.23514.23514.23514.235

14.16914.169

14.21814.218

14.21814.21814.21814.21814.218

Pass-Through

Grantor'sNumber

K7001K7001

LA48B602006LA48B602011LA48B702015LA48Q602009LA48B702017LA48B402001LA48B607002LA48B707002LA48B507004LA48B607003LA48B507005LA48B607004LA48B605008LA48B705003

unknownunknown

unknownunknown

unknownunknownunknownunknownunknown

TotalFederal

Expendiluros

76.24947.648

80,19290,522

-95.68140.029

157.3451t6.01813.58716.60445.73014,02727.18866.72422,684

5.00012,500

9,810-

15,233110238861112

Passed through VOA. Inc.Supportive Housing Program - Service Coordination 14.235

Social Security AdministrationPassed through Louisiana State University

Social Security - Work Incentives Planning and Assistance Program 96.008Social Security - Work Incentives Planning and Assistance Program 96.008Social Security Research and Demonstration - LA Hope 96.007Social Security Research and Demonstration - LA Hope 96.007

Department Of Homeland SecurityPassed through United Methodist Coalition on Relief

Hurricane Katrina Case Management Initiative Program - KAID Project 97.084Hurricane Katrina Case Management Initiative Program - KAID Today 97.084

LA62HS03001

14-W-5003-6-0214-W-50038-6-0218-H-40019-6-0118-H-40019-6-01

unknownunknown

27,236

71,34021.94871,246

14,940337,562

6.083,721

See Independent Auditor's Report.17

ROBERTS, CHERRY AND COMPANYCertified Public Accountants, Consultants

Independent Auditor's Report

To the Board of Directors ofVolunteers of America of North LouisianaShreveport, Louisiana

We have audited the accompanying statement of financial position of Volunteers of America of NorthLouisiana (a nonprofit organization) as of June 30. 2008, and the related statements of activities, functionalexpenses and cash flows for the year then ended. These financial statements are the responsibility ofVolunteers of America of North Louisiana's management. Our responsibility is to express an opinion on thesefinancial statements based on our audit. The prior year summarized comparative information has beenderived from the VGA's 2007 financial statements and, in our report dated November 17, 2007, weexpressed an unqualified opinion on those financial statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and the significant estimatesmade by management, as well as evaluating the overall financial statement presentation. We believe thatour audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of Volunteers of America of North Louisiana as of June 30, 2008, and the changes in its net assetsand its cash flows for the year then ended in conformity with accounting principles generally accepted in theUnited Slates of America.

In accordance with Government Auditing Standards* we have also issued our report dated December 31,2008, on our consideration of Volunteers of America of North Louisiana's internal control over financialreporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grantagreements and other matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to provide an opinionon the internal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in assessing theresults of our audit.

Our audit was performed for the purpose of forming an opinion on the basic financial statements ofVolunteers of America of North Louisiana taken as a whole. The accompanying schedule of expenditures offederal awards is presented for purposes of additional analysis as required by U. S. Office of Managementand Budget Circular A-133, "Audits of States, Local Governments, and Non-profit Organizations", and is not arequired part of the basic financial statements. Such information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in allmaterial respects, in relation to the basic financial statements taken as a whole.

IsROBERTS, CHERRY AND COMPANY

A Corporation of Certified Public AccountantsShreveport, LouisianaDecember 31. 2008

18

A Corporation of Certified Public Accountants • r. o. BOX JITS • Slltti.vi PORT, LA 7HM-0278 • <ji8> 122-2x22 • FAX (318) 22&-7I50


REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


We have audited the financial statements of Volunteers of America of North Louisiana (a nonprofitorganization) as of and for the year ended June 30, 2008, and have issued our report thereon datedDecember 31, 2008. We conducted our audit in accordance with auditing standards generally accepted inthe United States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered Volunteers of America of North Louisiana's internalcontrol over financial reporting as a basis of designing our auditing procedures for the purpose of expressingour opinion on the financial statements, but not for the purpose of expressing an opinion on the effectivenessof Volunteers of America of North Louisiana's internal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Organization's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent or detect misstatementson a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, thatadversely affects the organization's ability to initiate, authorize, record, process, or report financial datareliably in accordance with generally accepted accounting principles, such that there is more than a remotelikelihood that a misstatement of the organization's financial statements that is more than inconsequential willnot be prevented or detected by the organization's internal control. We consider the deficiency described asFinding 2008-1 in the accompanying schedule of findings and questioned to be a significant deficiency ininternal control over financial reporting.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in morethan a remote likelihood that a material misstatement of the financial statements will not be prevented ordetected by the organization's internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in internal control that might besignificant deficiencies or material weaknesses. However, we consider Finding 2008-1 to be a materialweakness.

Compliance and Other MattersAs part of obtaining reasonable assurance about whether Volunteers of America of North Louisiana's financialstatements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not express suchan opinion. The results of our tests disclosed no instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards.

19

A Corporation of Certified Public Accountants • P. O. BOX 4ns • SIIRKVFPORT, LA 711344m • (318) m-2in • FAX (3i8> JI6-7150

This report is intended solely for the information and use of the board of directors, management, others withinthe Organization, federal awarding agencies, Louisiana Legislative Auditor and pass-through entities and isnot intended to be and should not be used by anyone other than these specified parties. Under LouisianaRevised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

"R AHI>

A Corporation of Certified Public AccountantsShreveport, LouisianaDecember 31,2008

ROBERTS. CHERRY AND COMPANY

20


REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TOEACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVERCOMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133


ComplianceWe have audited the compliance of Volunteers of America of North Louisiana (a nonprofit organization) withthe types of compliance requirements described in U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year endedJune 30, 2008. Volunteers of America of North Louisiana's major federal programs are identified in thesummary of auditor's results section of the accompanying schedule of findings and questioned costs.Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its majorfederal programs is the responsibility of Volunteers of America of North Louisiana's management. Ourresponsibility is to express an opinion on Volunteers of America of North Louisiana's compliance based on ouraudit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller Genera! of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 requirethat we plan and perform the audit to obtain reasonable assurance about whether noncompliance with thetypes of compliance requirements referred to above that could have a direct and material effect on a majorfederal program occurred. An audit includes examining, on a test basis, evidence about Volunteers ofAmerica of North Louisiana's compliance with those requirements and performing such other procedures aswe considered necessary in the circumstances. We believe that our audit provides a reasonable basis forour opinion. Our audit does not provide a legal determination on Volunteers of America of North Louisiana'scompliance with those requirements.

In our opinion, Volunteers of America of North Louisiana complied, in all material respects, with therequirements referred to above that are applicable to each of its major federal programs for the year endedJune 30, 2008.

Internal Control Over ComplianceThe management of Volunteers of America of North Louisiana is responsible for establishing and maintainingeffective internal control over compliance with the requirements of laws, regulations, contracts and grantsapplicable to federal programs. In planning and performing our audit, we considered Volunteers of America ofNorth Louisiana's internal control over compliance with requirements that could have a direct and materialeffect on a major federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectivenessof Internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofVolunteers of America of North Louisiana's internal control over compliance.

A control deficiency in an entity's internal control over compliance exists when the design or operation of acontrol does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent or detect noncompliance with a type of compliance requirements of a federal programon a timely basis. A significant deficiency Is a control deficiency, or combination of control deficiencies, thatadversely affects the entity's ability to administer a federal program such that there is more than a remotelikelihood that noncompliance with a type of compliance requirement of a federal program that is more thaninconsequential will not be prevented or detected by the entity's internal control.

21

A Corporation of Certified Public Accountants • P. o. ROX 4j?s • SHRF.VFPORT, LA 711*1-0278 • (JI8) 222-2222 • FAX (318) 226-7150

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in morethan a remote likelihood that material noncompliance with a type of compliance requirement of a federalprogram will not be prevented or detected by the entity's internal control.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in internal control that might besignificant deficiencies or material weaknesses. We did not identify any deficiencies in internal control overcompliance that we consider to be material weaknesses, as described above.

This report is intended solely for the information and use of the board of directors, management, others withinthe Organization, federal awarding agencies, Louisiana Legislative Auditor and pass-through entities and isnot intended to be and should not be used by anyone other lhan these specified parties. Under LouisianaRevised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

.. G.

A Corporation of Certified Public AccountantsShreveport, LouisianaDecember 31, 2008

ROBERTS, CHERRY AND COMPANY

22


Schedule of Findings and Questioned CostsJune 30, 2008

Section I - Summary of Auditor's Results

Financial StatementsType of auditor's report issued: Unqualified

Compliance and internal control over financial reporting:Significant deficiency(ies) identified? YesMaterial weakness(es) identified? YesNoncompliance material to financial statements noted? Yes

Federal AwardsInternal Control over major programs:

Significant deficiency(ies) identified? NoMaterial weaknesses identified? No

Type of auditor's report issued on compliance for major programs: Unqualified

Any audit findings disclosed that are required to be reported inaccordance with section 510(a) of OMB Circular A-133? No

Identification of major programs:

CFDA Number Name of Program or Cluster17.25984.28793.55684,31093.60093.667

WIA Youth Activities21" Conlury Community Learning CentersPromoting Safe and Stable FamiliesParental Assistance CentersHead StartSocial Services Block Grants

Dollar threshold used to distinguish between Type A and Type B programs: $300,000Auditee qualified as low-risk auditee? YDS

Section II - Financial Statomont FindingsFinding 2008-1Criteria: The Organization is responsible for providing timely and accurate financial information.

Condition: The financial statements required significant adjustments.

Effect: The financial statements required significant adjustments, the aggregate of which were material tothe financial statements as a whole.

Cause: One significant year end entry was inadvertently posted backwards and another significant entry wasnot made at year end to reduce a related party receivable to its net realizable value.

Recommendation: We recommend management perform a more detailed review of month and year endbalances to ensure that the financial records are reported correctly and in accordance with generallyaccepted accounting principles.

SectionNone

- Federal Award Findings and Questioned Coats

Prior Year FindingsNone

23

Volunteers of America1'North Louisiana

Volumucrs ttf AmericaNorlli Louisiana3^0 .Ionian SnvctSlm-vepon. l.onir>i:ina 7! 101Tel: .^IH.221.26ftyl;:ix: .MH. 222.6371)\vw\v. vo;inori Ilia.ori;

December 31,2008Charlt.s Median

lJrc;:idmL /CEO

Roberts, Cherry and Company650 Olive StreetShreveport, LA 71104

Ref: Volunteers of America North Louisiana

We offer the following corrective action to the finding noted in the audit report for the fiscal year endedJune 30, 2008.

Finding 2008-1

Recommendation:We recommend management perform a more detailed review of the month and year end balances toensure that the financial records are reported correctly and in accordance with generally acceptedaccounting principles.

Response:Personnel changes have been make to provide more streamlined financial reporting to management on amonthly basis and at year end.

Sincerely,

SignatureDirector of Finance

J

K:uhI nl' Director},

\iuli-rson crlv Brock

ky ("uokscyn \V. I'H-.m

UnitedWay

ul'.Vurth l.uiii>i;a[;i in your t,'M:(if f

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