NEW ORLEANS VIDEO ACCESS CENTER, INC

FINANCIAL STATEMENTS

December 31,2013 and 2012

Under provisions of state law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and. where appropriate, at the office of the parish clerk of court

Release Date SEP 1 7 201^

NEW ORLEANS VIDEO ACCESS CENTER, INC.

CONTENTS Paeels)

Independent Auditors* Report 1-2

Financial Statements Statements of Financial Position 3

Statements of Activities . 4-5

Statements of Functional Expenses 6-7

Statements of Cash Flows 8

Notes to Financial Statements 9-14

Special, Report of Certified Public Accountmts

Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 15-16

CLIFTON W. NEWLIN

ROBERT D. WATKINS

COWARD G. BERBUESBE. JR.

JON s. FOLSE

MARK D. BDHNET LISA D. CNGLAOE

KERNEV F. CRAFT, JR. JONATHAN'P. KOENIB

WEGMANN DAZET & COMPANY JOHN D.WHITE

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of New Orleans Video Access Center, Inc. New Orleans, Louisiana

Report on Fmancial Statements

We have-audited the accompanying financial statements of New Orleans Video Access Center, Inc; (a nonprofit organization), which comprise the statement of fintmcial position as of December 31,.2013, and the related statements of activities, statement of functional expenses, and cash flows for the year then ended, and the related notes to the fmancial statements.

Management's R^ponsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fin^cial statements in accordance with accounting principles generally accepted in the United States of America; this> includes the design, implementation, ^d maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud, or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial 'Statements based on our audit. We conducted-our-audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. Those st^d^ds require tbafwe plan ^d perform the audit to obtain reasonable assurance about whether the^financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about.the amounts and disclosures in the fmahci^ statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether^due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's pr^aration and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing.an opinion on the effectiveness of entity's internal control. Accordingly, we express no such opinion. An audit also -includes evaluating the ^propriateness of accounting policies used and the reasonabl^ess of significant accounting estimates made by management, as well as evaluating the overall presentation of the fmancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide.a basis for our auditnpinion.

Opinion

In our opinion^ the financial stat^ents referred to above present fairly, in all material respects, the Lancia! position of New Orleans Video Access Center, Inc. as of December 31,2013, and the changes in

WEQMANN DAZET & COMPANY | A PROPESSIGNAL CORPORATION | CERTIFIED PUBLIC ACCOUNTANTS

lEMSERS: AlCPA PRIVATE COMPANIES .PRACTICE SECTION | AN INOEPENOENT MEMBER OF THE BOO SEIDMAN ALLIANCE

NEW ORLEANS OFFICE j Ml VETERANS BLVD. | SUITE 600 { .METAIRIE | L'A 70005

NORTHSHORE OFFICE | I09 NEW CAMELLIA BLVD. j SUITE I06 ] COVINGTON | LA 70433

1504) 837-BB44 I FAX 1504] B37-OB56 I WWW.wbcD.BIZ

itsmet assets and its cash flows for the year then ended in accprd^ce with accounting principles generally accepted in the United States of America.

Prior Period Financial Statements

The 2012 fmancial.statements were compiled by us, and our report thereon, dated June 27, 2013, stated we did not audit, or review the fmancial statements and, accordingly, did not express an opinion or provide assurance about whether the financial statements were in accordance with accounting principles generally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards '

In accordance with Government Auditing Standards, we have also issued our report dated June 26, 2014, on our conrideration of New Orleans Video Access Center, Inc.'s internal control over fmancial reporting and on our tests of its compliance with certain provisions of. laws, regulations, contracts, and graiit agreements and,other matters. The purpose of that report is to describe the scope of our testing of intemal cdiitt'ol over ^ancial reporting and compliance and the results of that testing, and not to provide an opinion,on intemai control over financial reporting.or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing-Standdrds iii considering New Orleana Video Access Centerj Inc.'s intemal control oyer financial repbrting and compliance.

June 26, 2014

NEW ORLEANS VIDEO ACCESS CENTER, INC. STATEMENTS OF FINANCIAL POSITION

December 31,2013 (Audited) and 2012 (Compiled)

2013 2012 ASSETS

Current assets Accounts receivable S 4,835 $ 7,535

Tot^ current assets 4,835 7,535

Endowment fund - rwtricted 12,276 11,000 Deposits 3,237 3,237

Total assets s 20,348 $ 21,772

LIABILITIES

Current liabiiities Cash overdraft . s 3,824 $ 273 Accounts payable 6,237 4,194 Accrued expenses 348 855 Due to related party 10,000 -Current portion of long-term debt 14,653 13,307

Total currCTt liabilities 35,062 18;629

Long-term debt, less current portion 6,420 21,023 Tot^ liabilities 41,482 39,652

NET ASSETS

Net assets Unrestricted (33,410) (31,880) Temporarily, restricted - 3,000 Permanently restricted 12,276 11,000

Total net assets (21,134) (17,880)

Total liabilities and net assets $ 20,348 $ 21,772

See accompanying Notes to Financial Statements. -3-

NEW ORLEANS VIDEO ACCESS CENTER, INC. STATEMENT OF ACTIVITIES

For the Year Ended December 31, 2013 (Audited)

Revenues Unrestricted

Temporarily Restricted

Permanently Restricted Total

Grants $ 124,025 $ 5,000 $ $ 129,025 Membership dues 9,185 - - 9,185 Wortehop fees 14,775 - - 14,775 Contributions 18,045 - - 18,045 Sponsorship 28,061 - 28,061 Production fees 21,715 - - 21,715 Investment - - 1,334 1,334 Fimdraising 3i757 - - 3,757 Miscellaneous 4,824 - - 4,824

Net assets released from restrictions 8,000 (8,000) - -

Total revenue 232,387 (3;000) 1,334 ,230,721

Expenses Program services 172,236 - - 172,236 Supporting services

Fiind Raising 17 - - 17 Management and general 61,664 - 58 . 61,722

Total expenses 233,917 58 233,975

Change in net assets (1,530) (3,000) 1,276 (3,254)

Net assets Beginning of ye^ (31,880) 3,000 11,000 (17,880)

End of year $ (33.410) $ $ 12.276 $ (21,134)

See accompanying Notes to Financial Statements. -4-

NEW ORLEANS VIDEO ACCESS CENTER, INC. STATEMENT OF ACTIVITIES

For the Year Ended December31, 2012 (Compiled)

Revenues

Expenses

Program services Supporting services

Fund Raising M^agement and general

Total expenses

Change in net assets

Net a^ts Beginning of year

End of yeitf

Unrestricted Temporarily Restricted

Permanently Restricted

139,691

9,691 13,411

162,793

(50,176)

18^296

$ (31.880) J.

3,000

3,000

52

52

1,052

9,948

$ ,11.000

Total

Grants $ 12,700 $ 10,680 ! 5 .$ 23,380 Membership dues 5i880 - - 5,880 Workshop fees 13,142 - - 13,142 Contributions 4,871 - - 4,871 Production fees 54,576 - - 54,576 Sponsorship 5,950 - - 5;950 Investment - - 1,104 1,104 Fundraisihg 2,933 - - 2,933 Miscdlaneous 4,885 - - 4,885

Net assets released from'restrictions 7;680 (7,680) - -

Total revenue' 112,617 3,000 1,104 .116,721

139,691

9,691 13,463

.162,845

• (46,124)

28,-244

$ (17.880)

See accompanying Not^ to Financial Statements. -5-

NEW ORLEANS VIDEO ACCESS CENTER, INC. STATEMNT OF. FUNCTIONAL EXPENSES

For the Year Ended December 31, 2013 (Audited)

Management Total Program Fundraising and general Expenses

Bank service charge $ 778 S - $ 763 S 1.541 Audit costs - - 4,930 4,930 Dues and subscriptions - - 951 951 Equipment 553 - 1,199 1,752 Insurance - - 6,011 6,011 Interest expense - - 2,404 2,404 Licenses and permits - - 15 15 Marketing 878 - 607 1,485 Meals and entertainment 5,051 - - 5,051 Office supplies 211 17 1,697 1,925 Gdier expense 15,971 - 365 16,336 Postage ^d delivery - - 167 167 Printing and reproduction 2;899 - 1,694 4,593 Professional seryices 50,889 4,293 55,182 Rent expei^e 3,254 - 14,400 17,654 Repairs ^dmaintenmce . - - 417 417 Wages-and payroll expenses 80,683 - . 12,079 92,762 Supplies other 2,431 - -• 2,431 Telephone - - 3,073 3,073 Travel 8,638 - 682 9,320 Utilities - - 5,975 5,975

Total expenses $ 172,236 S 17 $ 61,722 $ 233,975

See accompMying Notes to Finahcial.Statements. -6-

NEW ORLEANS VIDEO ACCESS CENTER, INC. STATEMENT OF FUNCTIONAL EXPENSES

For the Year Ended December 31,2012 (Compiled)

Program Fundraising Management and general

Total Expenses

Bank service charge $ 851 $ 87 $ 345 S 1,283 Audit costs - - 6,193 6,193 Dues and subscriptions - - 1,503 1,503 Equipment 1,811 - 816 2,627 Insurance - - 6,139 6,139 Interest expense - - 4,244 4,244 Marketing - - 270 270 Meals and entertainment 2,382 - - 2,382 Office supplies 195 22 2,082 2,299 Other expense - 70 24 94 Postage and delivery 63 313 92 468 Printing and reproduction 577 513 897 1,987 Professional services 22,137 1,771 4,463 28,371 Rent expense - 1,200 14,400 15,600 Repairs and maintenance - - 358 358 Wages and payroll expenses - - 69,919 69,919 Supplies other 730 - - 730 Telephone - - 4,385 4,385 Travel 5,975 2,095 373 8,443 Utilities - - 5,550 5,550 Year end expense allocation 104,970 3,620 (108,590) -

Total expenses $ 139,691 S 9,691 $ 13,463 $ 162,845

See accompanying Notes to Financial Statements. -7-

NEW ORLEANS VIDEO ACCESS CENTER, INC. STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2013 (Audited) and 2012.(Compiled)

Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash

provided (used) by operating activities: Net gain'on investments

(Increase) decrease in operating ̂ sets: Receivables Prepaid expenses

Increase (decrease) in operating liabilities: Accounts payable and accrued expenses Increase in bank overdrafts' Due to related party

Net cash provided (used) by operating activities

Cash flows from fliiancing activities: Repayments of long-term debt

Net cash used by flhancing activities

Net decrease

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

2013

(3,254)

(1.276)

2,700

1,536 3,551 10,000 13^257

(13,25.7) (13,257)

2012.

(46,124)

(1.052)

42,099 3,626

(15,555) 273

(16,733)

(12;012) (12,012).

(28,745)

28;745

See accompanying Notes to Financial Statements. -8-

NEW ORLEANS VIDEO ACCESS CENTER, INC. NOTES TO FINANCIAL STATEMENTS

For the Years Ended December 31, 2013 (Audited) and 2012 (Compiled)

1) Nature of activities

New Orleans Video Access Center, Inc. (the "Organization") is a non-profit organization established in 1972 to cultivate a sustainable film community by providing access to resources, education and locally generated content. The Organization provides services to the cpmmunity in the form of educatiori,, career development, community outreach, independent media productions and special events.

2) Summary of significant accounting principles

The financial statements of the Organization have been prepared on the accrual basis of accounting. Significant accounting policies are summarized below.

a) F inancial' statement presentation The Orgahization's'policyds to prepare its financial statements on the accrual'basis of accounting, which recognizes all revenues and the related assets when eamed and all expenses and the related obligations when incurred.

b) Cash and cash equivalents All cash-related items having a maturity of three months or less from the original maturity date are classified as cash and cash equivalents.

c) Accounts receivable Accounts receivable are stated at the amount the Organization expects to collect. The Organization writes off uncollectible accounts as they are identified. No allowance for uncollectible accounts has been provided,^ management has evaluated the accounts and believes they are all collectible.:

d) Use of estimates The preparation of financial statements in conformity with, accounting principles generally accepted in the United States of America requires mjmagement to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

e) Property and eouinment Property and equipment are carried at cost. Depreciaticn of property is provided over the estimated useful lives of the.assets using the straight-line method. Repairs: and maintenance are expensed as incurred. Expenditures that increase: the value or productive capacity of assets are capitalized. When property and equipment are retired, sold, or otherwise disqibsed of, the assets carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. The estimated useful lives of depreciable assets are:

Useful Lives Computers 3 years Video Equipment 5 years

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NEW ORLEANS VIDEO ACCESS GENTiER, INC. NOTES TO FINANCIAL STATEMENTS

For the Years Ended December Tl, 2013 (Audited)''^d 2012 (Compiled)

•2) Summary of significant accounting principles" (continued)

f) Descriotion of net assets classification Financial Accounting Standards jBoard Accoimting Standards Codification^ 958, Financial Stistements forNotrfor-Prdflt E^^ requires the net assets ^d changes in net assets be-reported

• for three classifications - peiinanently restricted, temporarily restricted and unrestricted based on the;existence birabsence of ddnpr imposed restrictions.

The Organization reports gifts of cash and.other assets as.restricted supportTf they are received with donor: imposed restrictions or requirements that limit the use of the. donation. A^ donor restriction ends when a time restriction is met or a purpose restriction is accomplished. As resftictipns <ire mef assets are recl^sified to unrestncted net assets. Funds receiy^ with, the stipulation that the,fun^ be returned if specified future.eveiits fail to occur are accounted for as refiindable advancesiuntilthe conditions have been substahtialiy met.

g) Gbhcehtratidn of credit risk Financial instruments- that potentially subject the Organization to concentrations of credit risk consist principally of cash deposits. Accoimts.at each institution^are insured.by theFederal Deposit Insurance^Gorporation (FDIG) up to certain lirhits. The Organization has not experienced any losses in such accounts. The Organization has no policy-requiring collateral or other security to support its.deposits.

The Orgahizationiat times extends credit to, its members: The OrgMzation perforins ongoing credit evaluations of its members but generally does not require collateral to support accounts receivable.

h) Advertising TheprgMUzation,expenses advei^ing.as incurred. Advertising expet^e was $1,485 and'$270 for Ae ye^:ended December 31„2013 and 2012, respectively.

i) Incothe taxes ' The Organization is exempt from income taxes under Section 501(c)(3) of the U.S. Internal

Revenue Code and, accordingly,- no provision for income taxes has been reflected in the accqmp^yingifin^cial statement.

-liie Organization adopted the provisions of Financi^, Accounting Stand^ds Board Accounting Stan^rds Godification 1 Ad, Accounting for Uncehaihty in Income .Mariagement of New Orleam Video Access CentCTi Inc. telieyes there is' no material uncertain tax position and, accor^rigly it will not recognize My liability for unrecognized tax benefits, With few .excqitions. New Orleans Video Access Center, Inc. issho.lbniger.subject to United Statesfederal or Louisiana state iricorhe tax examinations by tax authorities for the years before 2010.

J) Investments Investments are r^orted at their fair value in the statement of,financial position. Unrealized gains anddosses are included,in.thephMge in net assets. Investments with a maturity-of phe yeM orjess are claissified as current.

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NEW ORLEANS VIDEO ACCESS GENTER, INC. NOTES TO FINANCIAL STATEMENTS

For the Years Ended December Tl, 2013 (Audited)'and:2bl2 (Compiled)

3) Property and eauibment

Property and equipment is summarized as follows:

2013 2012

$ 7,060 : S $7,060 910 910

7,970 7,970 7.970 7.970

$ J g ..

Video equipment Cbrnputers

Total' cost Less accumulated depreciation Property and equipment

-4) Endowment Fund

The Ch'ganization maintains m endowment corpus that is included on its Statement, of Financial Positiph: Once the fund'exce^ $lb,bOO,.the Organization CM elect.to receive the;quarterly:iriterest income; The fund is.Tnjmaged by Greater New Orleans Fom^tion; T^e Orgaiiization elbcted not to, receiye'die interest ihcpme fipm this endpwinent for'the y 31,'2013 and 2012. The balance of the erido\^eht fund was:$ 12,276 and $11,000 for the years ended December31, 2013 and 2012, fesjjectively.

,5) Operating lease

The .Organizatipri leases its office location tmder. aimonth to month operating le^e, Total .rental expense under the leascwas $14,400 and $15,600 for,the:years ended Dec^ber 31, 2013 and 2012,-respectively.

6)' Long-term debt

Long-term debt consists of the foUbwing at December 31,2013 and 2012:

2013 2012 A note payable to a baiik paid'in quarterly installments of approxihMtely $4jp4b, including interest pf,9.75%. The note is secured by the assets ofthe Organization and rnatures on Julyi,2015

Total long-term debt .Lesis cmrent portion • LoiigiteiTn debtj less current portipn

S 21,073 $ 34,330 21,073 34,330 14,653 13,307

s , 6,420 $ ,21,023

.Thie ihaturities of long4erm debt are as follows: 2014 $ 14,653, 2015 6;420

-11-

NEW ORLEANS VIDEO ACCESS CENTER, INC. NOTES TO FINANCIAL STATEMENTS

For the Years Ended December 31, 2013 (Audited) and 2012 (Compiled)

7) Financial assistance

The Organization was awarded a grant from the City of Baton Rouge to assist in the Ready, Set, Film! Project utilizing a Community Development Block Grant. The grant is considered to be an exchange transaction. Accordingly, revenue is recognized when earned and expenses are recognized as incurred. The Organization had a balance due from the grantor of $3,150 at December 31, 2013 which is included in accounts receivable. Grant activity for the,year ended December 31, 2012 was as follows:

2013 Grant Receipts $ Grant Expenditures 3,150

Due from grant at end of year $ 3,150

The Organization was also awarded a grant from the Arts Council of New Orleans for operating support. The Organization had a balance due from the grantor of $1,675 at December 31, 2013 which is included in accounts receivable.

8) Due to related party

The Organization has a payable to the Ex^utive Director. The Organization has classified this payable as current as the payable will be paiid off in 2014. The balance of the payable at December 31,2013 was $10,000.

9) Temporarilv restricted net assets The Organization received funding for its youth programs in 2012 and at the year December 31, 2012

$3,000 was temporarily restricted for youth programs.

10) Fair value measurement

Financial Accounting Standards Board Accounting Standards Codification 820-10, Fair Value Measurements, establishes a framework for measuring fair value. That firework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level I measurements) and the lowest priority to unobservable inputs (leyel 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820-10 are described below:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in activemarkets.

Level 2 Inputs to the valuation methodology include:

• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets;

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NEW ORLEANS VIDEO ACCESS CENTER, INC; NOTES TO FINANCIAL STATEMENTS

For the Years Ended December,31, 2013 (Audited) and 2012 (Compiled)

10) Fair value mea^emept Ycontinuedl

Level 3

• Inputs other th^ quoted prices that'^e observable for. the asset or liability; • Inputs,that ^e derived principally from or cbiToborated by observable ihark'et

data by correlation or other means.

If the asset or liability has a specified'(contractual) term, the Level 2 input must.be obsen'able for,substantially .the:Iull term of the^^set or liability.

Inputs'to.the yaliiation me^odolo^^are unobservable and si^ficmt.tp thefair value measureihent.

The asset's or liability's fair vdue rne^ureinent level within ±e fair value hierarchy.is b^ed on the lowest levej of any input that isf sigiyficant to the.feir y£due;measiirement. Valuation techniques used need to m^imize the use of bbservabjeiripute arid minirhize the use of unobservable inputs.

TheTollowing table setsTorth by level, within the fair value'hierarchy, the Association's assets at fair value as of Deceniber 31,2013:

Quoted Prices in AchveMWkelS'

Total Fair ' for Identical Value Assets Asisets (L^el 1)

Significant Other Observable Inputs

(Level 2)

^Si^fipant Unobservable

ihputs (Level 3)

Investments $ j2;276 $• $ $ 12,276

'Total .$ .12,276 •$ $ 12,276

TheTollowihg table.sets forthhy level, within the.fair value hierarchy, the Association's assets at fair value as of Deceinber 31,2012:

Total Fair Value Assets

Quoted'Wees iri Active, Markets

for Identical AssetS;(Leyel 1)

Significant Other Observable ^puts

(Level 2).

,Significant Unpiwervabie

Inputs (Level 3)

byesmients $ ii,obb $ $ $ 11,000

Total S 11,000 .. •$' . ^ $ r. $ 11,000

11) Supplemental statement of cash flows information

Cash paid for interest expense was $2,056 and $3,389 for the: years ended December 31, 2013 and 2012, respectively.

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NEW ORLEANS VIDEO ACCESS CENTER. INC. NOTES TO FINANCIAL STATEMENTS

For the Yeare Ended December Sl, 2013 (Auditied) and 2012,(Compiled)

12) Net asset deficit

The Organization plans on reducing the net asset deficit,by reducing expenditures in future years.

13) Subsequent events

Management has evaluated subsequent events through June 26. 2014, the date which the financial statements were available to be issued. There were no material subsequent events that required recognition or additional ̂ disclosure in these financial statements.

-14-

CLtPTON W. NEWLIN

ROBCRT D. WATKINS

COWARD 6. BERauESse. JR.

JON S. FDUSE

MARK D. BDHNET LISA O. CNBLAOE

KERNEV F. CRAPT. JR. JONATHAN P. KOCNIS

WEGMANN DAZET & COMPANY JOHN D.WHrre

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AMD OTHER MATTER BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board pf Directors New Orleans Video Access Center, Inc. New Orleans, Louisiana

We-have audited, in accordance with the auditing standards generally accepted in the United'States of America and the' standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of New Orleans Video Access Center, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2013, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated June 26, 2014.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial, statements^ we considered New Orleans Video Access Center, Inc.'s internal control over financial reporting (intemalcontrbl) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose Of expressing an opinion on the effectivene^ of New Orleans Video Access Center, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control.

A deficiency in internal control exists when the desi^ or operation of a control does not aljow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such.that there is a reasonable possibility that a material misstatement of the entity's.financial statements will not be prevented, or detected and correct^ on a timely basis. A significant deficiency is a deficiency, or a combinatiph Of;deficiencies,.in intertial contrplthat is less.severe than a material weakness, yet-important enough to merit attention by. those charged with governance.

Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies ,in internal control that might Im material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining ,reasonable assurance about'whether New Orleans Video Access Center, Inc.'s financial statements are firee from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agfeemients, noncompliance with which could bave.a direct and materi^ effect OD'the determination of fmancial statement.amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not expiiess such ^ opinion: The

WEGMANN DAZET St COMPANY | A PRO FE S SI G N AL CORPORATION j CERTiriEO PUBLIC ACCOUNTANTS

MEMBERS; AICPA PRIVATE COMPANIES PRACTICE SECTION I AN INDEPENDENT MEMBER OF THE BOO SEIDMAN ALLIANCE

NEW ORLEANS OFFICE | 11 1 VETERANS BLVD. [ SUITE BOO | METAIRIE { LA 70005

NORTHSHORE OFFICE { IQ9 NEW CAMELLIA BLVD. j SUITE 106 j COVINGTON | LA 70433

tsod) a37-aa44.| FAX ISOAI a37-oa56 ( WWW.WDCO.BIZ

-15-

results of pur tests disclosed no instances of noncdmpliance or other matters that^are required to'be reported under Gdyernment, Auditing Standards

Purpose of this Report

The purpose of tliisireport is solely to describe the scope of pur testmg.pf intern^ ,conttol and compli^ce and ffie results of that tiestirig, and hot to provide M^ppiriioh on the .effectiveriess of the entity's internal contrpl or on compliahce. This report is. ah integral part of,an audit-performed in accordance with Government Auditing Standards in considering.the entity's internal;control and compliance:,Accordingly, this comiriunicatioh is hot suitable for any other purpose. Under Louisiana Revised Statue 24:513, this report is distributed by the Legislative Auditor as apublic document

Metairie, Louisiana -Juhe26.;M4-

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