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BOYS & GIRLS CLUBSOF GREATER BATON ROUGE, INC.

BATON ROUGE, LOUISIANAFINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2004

Under 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

Independent Auditor's Report 3

Financial Statements

Statement of Financial Position 4

Statement of Activities 5

Statement of Functional Expenses 6

Statement of Cash Flows 7

Notes to Financial Statements 8

Report on Compliance and on Internal Control over FinancialReporting Based on an Audit of Financial StatementsPerformed In Accordance with Government Auditing Standards 15

Prior Year's Findings and Status 17

Member T j / l f f / ? / I i ) 0 / l l P MemberAmerican Insitute CPAs A*XI/rM»M/ W/« -*_/£' K J-U-C- Louisiana Society CPAs

7829 BLUEBONNET BLVD.BATON ROUGE, LA 70810

(225) 767-7829

INDEPENDENT AUDITOR'S REPORT

April 28, 2005

Members of the Board of DirectorsThe Boys & Girls Clubs of Greater Baton Rouge, Inc.Baton Rouge, Louisiana

I have audited the accompanying statement of financial position of theBoys & Girls Clubs of Greater Baton Rouge, Inc. (a non-profitorganization) as of December 31, 2004, and the related statements ofactivities, cash flows and functional expenses for the year then ended.These financial statements are the responsibility of the Boys & GirlsClubs of Greater Baton Rouge, Inc.'s management. My responsibility isto express an opinion of these financial statements based on my audit.

I conducted my audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicableto financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. Those standardsrequire that I plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating theoverall financial statement presentation. I believe that my auditprovided a reasonable basis for my opinion.

In my opinion, the financial statements referred to above presentfairly, in all material respects, the financial position of the Boys &Girls Clubs of Greater Baton Rouge, Inc. as of December 31, 2004, andthe changes in net assets and its cash flows for the year then ended inconformity with accounting principles generally accepted in the UnitedStates of America.

In accordance with Government Auditing Standards, I have also issued areport dated April 28, 2005, on our consideration of Boys & Girls Clubsof Greater Baton Rouge's internal control over financial reporting andour tests of its compliance with laws and regulations. That report isan integral part of an audit performed in accordance with GovernmentalAuditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

BOYS & GIRLS CLUBS OF GREATER BATON ROUGE, INCSTATEMENT OF FINANCIAL POSITION

DECEMBER 31, 2004

(With Comparative Totals for 2003)

TEMPORARY PERMANENTLY TOTAL

ASSETS:

Cash $189,929Baton Rouge Area Foundation -0-Accounts Receivable 7,385Grants Receivable 45,142Prepaid Expenses 375Fixed Assets, Net 22,316Deposits 1,850

TOTAL ASSETS 266,997

LIABILITIES & NET ASSETS:

LIABILITIES:Accounts Payable $14,251Employee Withholding Payable 549Retirement Plan Payable 500Refundable Grant Advances -0-Custodial Funds -0-Lease Payable 12,365

TOTAL LIABILITIES 27,665

NET ASSETSUnrestricted 239,332

TOTAL LIABILITIESAND NET ASSETS 266,997

1TRICTED RESTRICTED 2004

$4

4

4

4

4

,363-0--0--0--0--0--0-

,363

$-0--0--0--0-,363-0-

,363

-0-

,363

$-0-45,539

-0--0--0--0--0-

45,539

$-0--0--0--0--0--0-

-0-

45,539

45,539

$194,45,7,45,

22,1,

316,

$14,

4,12,

32,

284,

316,

292539385142375316850

899

251549500-0-363365

028

871

899

2003

124,41,3,10,

28,1,

210,

$14,

2,3,

15,

37,

173,

210,

484343600269425901850

872

767641400620596731

755

117

872

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT.

BOYS AND GIRLS CLUBS OF GREATER BATON ROUGE, INCSTATEMENT OF ACTIVITIES


(With Comparative Totals for

TEMPORARYUNRESTRICTED RESTRICTED

REVENUE AND OTHER SUPPORT:ContributionsUnited WayGovernment GrantsFoundation GrantsSpecial EventsMembership DuesGain on InvestmentsInterest IncomeMiscellaneousNet Assets Released fromRestrictions :Restrictions SatisfiedBy Payment

TOTAL REVENUE

EXPENSES :PROGRAM SERVICESPrograms

SUPPORT SERVICESAdministrationFund Development

TOTAL EXPENSES

INCREASE (DECREASE )IN NET ASSETS

NET ASSETS, Beginning of Year

NET ASSETS, End of Year

$47,404261,945276,97942,201128,250106,188

-0-1,1203,708

-0-

867,795

603,371

59,34997,517

760,237

107,558

131,774

239,332

$-0--0--0--0--0--0--0--0--0-

(-0-)

-0-

-0-

-0--0-

-0-

-0-

-0-

-0-

2003}

PERMANENTLY TOTALRESTRICTED 2004

$-0--0--0--0--0--0-

3,8151,042

-0-

-0-

4,857

-0-

661-0-

661

4,196

41,343

45,539

$47,404261,945276,97942,201128,250106,1883,8152,1623,708

-0-

872,652

603,371

60,01097,517

760,898

111,754

173,117

284,871

2003

125,793261,782317,94620,600128,48352,5477,3301,1543,365

-0-

919,000

677,468

67,779118,151

863,398

55,602

117,515

173,117


5

BOYS AND GIRLS CLUBS OF GREATER BATON ROUGE, INC.STATEMENT OF FUNCTIONAL EXPENSESDecember 31, 2004

PROGRAM SERVICES SUPPORT SERVICES

SalariesEmployee BenefitsParyoll TaxesProfessionalSuppliesPostageTelephoneOccupancyPrintingTravelConferencesMembership DuesPayment to AffiliateYouth ActivitiesSpecial EventsGot HomeworkBank ChargesMiscellaneousRepairsInterestContract LaborDepeciation

Total Expenses

PROGRAM FUND TOTAL EXPENSESSERVICES ADMINISTRATION DEVELOPMENT 2,004 2,003

$322,26846,95824,838

7,22535,1284,0694,916

43,5126,854

14,03011,647

1,2593,8396,103

34,0500

1,6707,3944,6671,740

13,7757,428

603,371

$32,6354,7552,515

7323,557

412498

4,406694

1,4211,179

128389

03,448

0169749

0176

1,395752

60,010

$53,031 $407,9347,7284,0881,1885,781

670809

7,1601,1282,3081,917

207632

05,603

0275

1,2160

2862,2671,222

97,5161

59,44131,441

9,14544,466

5,1516,223

55,0788,676

17,75914,7431,5944,8606,103

43,1010

2,1149,3594,6672,203

17,4379,403

760,898

$467,88352,10835,87516,58782,9814,1897,349

63,59015,33613,85713,8432,7704,5953,172

32,9578,0121,4715,9384,9761,741

13,46410,704

863,398

The accompanying notes are an integral part of this statement.

BOYS & GIRLS CLUBS OF GREATER BATON ROUGE, INC.STATEMENT OF CASH FLOWS


(With Comparative Totals for 2003)

2004 2003CASH FLOWS FROM OPERATING ACTIVITIES;

Increase (Decrease) In Net Assets $111,754 $ 55,602

Adjustments To Reconcile Increase In Net AssetsTo Net Cash Provided By Operating Activities:Depreciation 9,403 10,704

(Increase) Decrease In Operating Assets:Accounts Receivable (3,785) (3,600)Grants Receivable (34,873) 34,053Prepaid Expenses 50 (425)

Increase (Decrease) In Operating Liabilities:Accounts Payable (516) 8,070Withholding (92) (93)Retirement Plan Payable (1,900) (2,800)Grant Advances (3,620) (17,829)Custodial Funds 3,767 597


7

NET CASH PROVIDED BY OPERATING ACTIVITIES 80,188 84,279

CASH FLOWS FROM INVESTING ACTIVITIES;Purchase of Equipment (2,818) (18,778)Baton Rouge Area Foundation (4,196) (9,733)

(7,014) (28,511)

CASH FLOWS FROM FINANCING ACTIVITIES;Lease Payable (3,366) 18,778Repayment of Long-Term Debt -0- (3,047)

(3,366) 15,731

NET INCREASES (DECREASE) IN CASH AND CASH EQUIVALENTS 69,808 71,499

CASH AND CASH EQUIVALENTS, Beginning of Year 124,484 52,985

CASH AND CASH EQUIVALENTS, End of Year 194,292 124,484

SUPPLEMENTAL DATA:Interest paid 2,203 1,741

BOYS & GIRLS CLUBS OF GREATER BATON ROUGE, INC.NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004

NOTE #1. NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES

OrganizationThe Boys & Girls Clubs of Greater Baton Rouge, Inc. (Club) is aLouisiana non-profit corporation, for the purpose of promoting thehealth, social, educational, vocational and character development ofboys and girls.

BASIS OF PRESENTATIONThe financial statements are presented in accordance withStatement of Financial Accounting Standards No. 116 (SFAS No. 116),"Accounting for Contributions Received and Contributions Made" andStatement of Financial Accounting Standards (SFAS) No. 117, FinancialStatements of Not-for-Profit Organizations. SFAS No. 116 requirescontributions to be recognized as revenue when they are received orunconditionally pledged. SFAS No. 117, which eliminates theutilization of fund accounting for financial reporting purposes,requires net assets to be classified as either 1) unrestricted,2) temporarily restricted, or 3) permanently restricted depending onlimitations placed on the net assets.

DONATED SERVICESAmounts have not been reported in the statements for donated servicesbecause they do not meet the criteria for recognition under SFAS No.116. A substantial number of volunteers have donated significantamounts of their time to the Organization.

Contributions of service shall be recognized if the servicesreceived (a) create or enhance non-financial assets or (b)require specialized skills, are provided by individualpossessing those skills and would typically need to bepurchased if not provided by donation.

REVENUE RECOGNITIONContributions are recognized as revenue when they are received orunconditionally pledged.

Conditions - Contributions are recorded as unrestricted asunrestricted, temporarily restricted or permanently restrictedsupport depending on the existence and/or nature of any donorrestrictions.

Support that is restricted by the donor is reported as anincrease in unrestricted net assets if the restriction expiresin the reporting period in which the support is recognized.


DECEMBER 31, 2004

REVENUE RECOGNITION: CONTRIBUTIONS - Continued...

All other donor-restricted support is reported as an increasein temporarily or permanently restricted net assets, dependingon the nature of the restriction. When a restriction expires(that is, when a stipulated time restriction ends or purposesrestriction is accomplished), temporarily restricted netassets are classified to unrestricted net assets and reportedin the Statement of Activities as net assets released fromrestrictions.

The Organization reports gifts of land, buildings, andequipment as unrestricted support unless explicit donorstipulations specify how the donated assets must be used.

Contributions receivable represent amounts committed by donorsthat have not been received by the Organization.

INCOME TAXESThe Organization is a not-for-profit organization that is exempt fromincome taxes under section 501(c)(3) of the Internal Revenue Code.

CASH AND CASH EQUIVALENTSFor the purposes of the statement of cash flows, the organizationconsiders all unrestricted highly liquid investments with an initialmaturity of three months or less to be cash equivalents.

INVENTORIESInventory is stated at the lower cost or market, determined by thefirst-in, first-out method.

PREPAIDInsurance and similar services which extend over more than oneaccounting period have been recorded as prepaid.

ACCOUNTS RECEIVABLEAccounts receivable are written-off under the direct write-off methodwhereby bad debts are recorded when a receivable is deemeduncollectible. If they are subsequently collected they are recordedas miscellaneous income. The direct charge-off method is not amaterial departure from GAAP as it approximates the valuation method.

USE OF ESTIMATESThe preparation of financial statements in-conformity with generallyaccepted accounting principles require management to make estimatesand assumptions that affect the reported amounts of assets andliabilities at the date of the financial statements and the reportedamounts of revenue and expenses during the reporting period. Actualresults could differ from those estimates.


DECEMBER 31, 2004

PROPERTY AND EQUIPMENTThe purchase of property and equipment is recorded at cost. It is theOrganization's policy to capitalize expenditures for these items inexcess of $1,000. Donations of property and equipment are recordedas support at their estimated fair value. Such donations arereported as unrestricted support unless the donor has restricted thedonated asset to a specific purpose. Assets donated with explicitrestrictions regarding their use and contributions of cash that mustbe used to acquire property and equipment are reported as restrictedsupport. Property and equipment is depreciated using the straight-line method over the estimated useful lives of 5 to 10 years.

Functional Allocation of ExpensesThe cost of providing Club's various programs and supporting serviceshave been summarized on a functional basis in the statement ofsupport, revenue and expenses/ and changes in fund balances.Accordingly/ certain costs have been allocated among the programs andsupporting services benefited.

COMPARATIVE DATAComparative data for the prior year have been presented in theaccompanying financial statements to provide an understanding ofchanges in the Clubs' financial position and operations. However,presentation of comparative data by fund type have not been presentedin each of the statements since their inclusion would make thestatements unduly complex and difficult to read.

NOTE #2. CONCENTRATION OF CREDIT RISK FOR CASH HELD IN BANK

The Boys & Girls Club maintains several bank accounts at fourfinancial institutions. Accounts at an institution are insured bythe Federal Deposit Insurance Corporation (FDIC) up to $100,000.

At December 31, 2004, the Club had cash and cash equivalent (bookbalances) totaling $194,292. These deposits are stated at cost/which approximates market. At December 31, 2004, the Club had$227,069 in deposits (collected bank balances) of which $113,840 wasinsured by FDIC insurance leaving $113,229 at risk of loss.

10


DECEMBER 31, 2004

NOTE #3. ENDOWMENT FUND

In order to assure the perpetual operations of the Boys & GirlsClubs of Greater Baton Rouge, Inc. and the continuation of its goalsthe board established a permanently restricted endowment fund withthe Baton Rouge Area Foundation. The activity of the fund is asfollow for the year:

Balance, Beginning of Year $41,343Revenue - Gifts -0-Net Gain on Investments 3,815Income on Investments I/042Expenses and Fees (661)

Balance, End of Year 45,539

NOTE #4. EQUIPMENT

Equipment at year-end consist of the following:

Equipment $172,926Less: Accumulated Depreciation (150,610)

Equipment Book Value 22,316

NOTE #5. DEPOSITS

Deposits at year-end consist of the following:

Rent $1,850

NOTE #6. CUSTODIAL FUNDS

The Club administers the Children Scholarship Fund as follows:

Beginning Balance $-0-Cash Receipts 63,510Cash Disbursements (59,147)

Ending Balance 4,363

The mission of the Children's Scholarship Fund is to open the doorsof educational opportunity for lower income families in communitiesnationwide by helping their children attend the private schools oftheir choice.

11


DECEMBER 31, 2004

NOTE #7. REFUNDABLE GRANT ADVANCES

During 2003, State of Louisiana Office of Family Support advanced theBoys & Girls Club $7,280 during the year. The remaining amountunearned as of December 31, 2004, and December 31, 2003, was $-0-and $3,600, respectively.

NOTE #8. RESTRICTIONS ON NET ASSETS

Substantially all the restrictions on net assets at the end ofDecember 31, 2004, are related to unearned advances from the State ofLouisiana.

Prermanently restricted net assets consist of endowment fundinvestments to be held indefinitely at the Baton Rouge AreaFoundation, the income from which is expendable to support theorganization.

NOTE #9. RELATED PARTY TRANSACTIONS

During the year the Club had the following related party transactionwith Boys and Girls Clubs of America:

Membership Dues $4,860

NOTE #10. LEASE OBLIGATIONS

On January 1, 2000, the Club entered into an operating lease of abuilding that houses the Club's main office. On December 23, 2003the Club extended the lease and the rental to be paid by the Clubshall be $1,900 per month ending December 31, 2004. The Club now ison a month to month basis.

In 2003, the Club entered into a capital lease with Xerox for acopier. The lease payments to be paid by the Club shall be the sumof $23,939 in sixty monthly installments of $399. The future minimumlease payments are as follows:

Year End December 31, 2005 - $4,788Year End December 31, 2006 - 4,788Year End December 31, 2007 - 4,788

12

BOYS & GIRLS CLUBS OP GREATER BATON ROUGE, INC.NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2004

NOTE #11. PENSION PLAN

The Boys & Girls Clubs of Greater Baton Rouge, Inc. participates in apension plan covering various Boys and Girls Clubs. The plan is aninsured, non-contributory defined benefit pension plan, coveringsubstantially all employees of various Boys & Girls Clubs. Theamount charged to pension expense and contributed to the plan duringthe year was $17/582.

The Organization also has a 403 (b) Plan, "salary reduction plan"where by the employee chooses to reduce their compensation and havethese amounts contributed to the Plan on their hehalf. The purposeof the Plan is to reward eligible employees for long and loyalservice by providing them with retirement benefits. Employee areeligible to participate in the Plan on the date of their employment.The Organization has the option to match employee contributions. Nomatch was paid for the year.

NOTE #12. BOARD OF DIRECTORS' COMPENSATION

The Board of Directors is a voluntary board; therefore, nocompensation has been paid to any member.

NOTE #13. CONTINGENCIES

The Boys & Girls Clubs receives a portion of its revenues fromgovernment grants and contracts, all of which are subject to audit bythe governments. The ultimate determination of amounts receivedunder these programs generally is based upon allowable cost reportedto and are subject to audit by the government. Until such audits, ifany, there exists a contingency to refund any amount received inexcess of allowable cost. Management is of the opinion that nomaterial liability will result from such audits.

NOTE 14 - RISK MANAGEMENT

The Boys & Girls Club is exposed to various risks of loss related totorts, theft of, damage of and destruction of assets; errors andomissions and natural disasters for which the organization carriescommercial insurance. There have been no significant reductions incoverage from prior year and settlements have not exceeded coverage inthe past three years.

13

SUPPLEMENTAL INFORMATION

14

C. DeVitleSs.k-.c*. uonaw u. uevtue ^_s,«;-S;7829 BLUEBONNET BLVD.BATON ROUGE, LA 70810

(225) 767-7829

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIALREPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

April 28, 2005

Members of the Board of DirectorsBoys & Girls Club of Greater Baton Rouge, Inc.Baton Rouge, Louisiana

I have audited the financial statements of the Boys & Girls Clubs ofGreater Baton Rouge, Inc. as of and for the year ended December 31,2004, and have issued my report thereon dated April 28, 2005. Iconducted my audit in accordance with generally accepted auditingstandards and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of theUnited States.

COMPLIANCEAs part of obtaining reasonable assurance about whether Boys & GirlsClubs of Greater Baton Rouge, Inc.'s financial statements are free ofmaterial misstatement, I performed tests of its compliance with certainprovisions of laws, regulations, contracts, and grants, noncompliancewith which could have a direct and material effect on the determinationof financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of my audit and,accordingly, I do not express such an opinion. The results of my testsdisclosed no instances of noncompliance that are required to be reportedunder Government Auditing Standards.

INTERNAL CONTROL OVER FINANCIAL REPORTINGIn planning and performing my audit, I considered Boys & Girls Clubs ofGreater Baton Rouge, Inc.'s internal control over financial reporting inorder to determine my auditing procedures for the purpose of expressingmy opinion on the financial statements and not to provide assurance onthe internal control over financial reporting. My consideration of theinternal control over financial reporting would not necessarily discloseall matters in the internal control over financial reporting that mightbe material weaknesses. A material weakness is a condition in which thedesign or operation of one or more of the internal control componentsdoes not reduce to a relatively low level the risk that misstatements inamounts that would be material in relation to the financial statementsbeing audited may occur and not be detected within a timely period byemployees in the normal course of performing their assigned functions.

15

I noted no matters involving the internal control over financialreporting and its operation that we consider to be material weaknesses.This report is intended for the information of the management, andfederal awarding agencies and pass-through entities. However, thisreport is a matter of public record and distribution is not limited.Under Louisiana Revised Statutes 24:513, this report is distributed by theLegislative Auditor as a public document.

16

BOYS AND GIRLS CLUBS OF GREATER BATON ROUGE, INCSCHEDULE OF PRIOR YEAR'S FINDINGS AND STATUS

DECEMBER 31, 2004

NONE

17

BOYS AND GIRLS CLUBS OF GREATER BATON ROUGE, INCAUDIT COST PAID WITH FEDERAL FUNDSFOR THE YEAR ENDED DECEMBER 31, 2004

No audit cost were paid with Federal Funds.

18

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