raintree services inc. -...

6 > ^ ]

Financial Report

Raintree Services, Inc,

June 30, 2012

<^^nfree

Under provisions of state law, this report is a public document. Acopy 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, v^here appropriate, at the office of the parish clerk of court.

Release Date DEC 1 2 2012

Bouraeois Bennett * ^ C E R T I F I E D PUBUC ACCOUNTANTS | CONSULTANTS

TABLE OF CONTENTS

Raintree Services, Inc.

June 30, 2012 and 2011

Page Number

Financial Section

Independent Auditor's Report 1 - 2

Exhibits

A - Statement of Financial Position 3

B - Statement of Activities 4

C - Statement of Functional Expenses 5 - 6

D - Statement of Cash Flows 7

E - Notes to Financial Statements 8-17

Supplemental Schedule

1 - Schedule of Support and Revenues and Expenses 18

Special Reports of Certified Public Accountants

Report on Intemal Control Over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards 19-20

Schedule of Findings and Responses 21-22

Reports By Management

Schedule of Prior Year Findings and Responses 23

Management's Corrective Action Plan 24

FINANCIAL SECTION

Bourgeois Bennett *^CERTIRED PUBLIC ACCOUNTANTS | CONSULTANTS

A LIMITED LIABILITY COMPANY

INDEPENDENT AUDITOR^S REPORT

To the Board of Directors, Raintree Services, Inc.,

New Orleans, Louisiana.

We have audited the accompanying statement of fmancial position of Raintree Services, Inc. (a non-profit organization) as of June 30, 2012, and the related statements of activities, functional expenses, and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the 2011 financial statements, and in our report dated December 1, 2011, we expressed an unqualified opinion on those statements.

We conducted our audit 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, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are fi*ee of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial posifion of Raintree Services, Inc. as of June 30, 2012, and the changes in its net assets and its cash flows for the year then ended in conformit>' with accounting principles generally accepted in the United States of America.

P.O. BOX 60600 NEW ORLEANS. LA 70160-0600 504.831.4949 BOURGEOISBENNETT.COM

http://BOURGEOISBENNETT.COM

In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2012, on our consideration of Raintree Services, Inc.'s intemal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of support and revenue and expense is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived fi*om and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedure, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

/ O H A A ^ ^ /OUiA%e4fl l"^'C^

Certified Public Accountants.

New Orleans, Louisiana, November 21, 2012.

Exhibit A

STATEMENT OF FINANCIAL POSITION


June 30, 2012 (with comparative totals for 2011)

Assets Cash and cash equivalents Service fees receivable Accmed interest receivable United Way receivable Grant receivable Prepaid expenses Investments Property and equipment,

net of accumulated depreciation

Total assets

Liabilities Accounts payable Accmed vacation

Total liabilities

Net Assets Unrestricted Temporarily restricted

Total net assets

Total liabilities and net assets

2012 2011

$

J=

$

$

251,277 158,547

-

20,480 10.000 7,263

2,291,475

669,620 .

3,408,662

3,009 21,959

24,968

3,348,214 35,480

3,383,694

3,408,662

$

_

$

$

—

—

_

$

138,891 146,862 9,371

39,538 -

4,670 2,691,721

529.208

3,560,261

1,029 18,816

19.845

3,490,820 49,596

3,540,416

3,560,261

See notes to financial statements.

STATEMENT OF ACTIVITIES


For the year ended June 30, 2012 (with comparative totals for 2011)

Exhibit B

2012

Support and Revenues Raintree House program Foster Care programs Family Support Coordination Attendant Care Services program Contributions United Way grants and designations Investment income Other income Special event income, net of expenses

($17,004 and $17,390, respectively)

Total support and revenues

Net assets released from restrictions: Expiration of time restrictions and program

restrictions satisfied through payments

Total revenues, support and net assets released from restrictions

Expenses Program services:

Raintree House Foster Care programs After School program Family Support Coordination Attendant Care Services

General and administrative Fundraising

Total expenses

Change in Net Assets

Net Assets Beginning of year

End of year

Unrestricted

$ 469,810 742,855 213,254 265,851 103,320

3,031 (110,890)

143

121,201

Temporarily Restricted

3

$ 15,000 20,480

Totals

S 469,810 : 742,855 213,254 265,851 118,320 23,511

(110,890) 143

121,201

2011 Totals

i 394,080 749,097 279,338 60,380 88,500 42,161

500,925 6,649

106,390

1,808,575

2,000,777

(142,606)

3,490,820

35,480 1,844,055

49,596 (49,596)

(14,116)

49.596

2,000,777

(156,722)

3,540,416

2,227,520

1,858,171 (14,116) 1,844,055 2,227,520

484,639 532,013 22,761

223,927 255,769 429,191 52,477

484,639 532,013 22,761

223,927 255,769 429,191 52,477

491,483 565,698 35,063

280,309 96,350

473,695 54,698

1,997,296

230,224

3,310,192

$ 3,348,214 $ 35,480 $ 3,383,694 $ 3,540,416

See notes to fmancial statements.

STATEMENT OF FUNCTIONAL EXPENSES



2012

Advertising and promotion Bad debts Bank charges Consultants Contracted services Dietary expenses Dues and subscriptions Foster care parent expenses Health insurance Housekeeping and laundry Insurance Licenses and permits Medical Occupancy:

Depreciation Maintenance, buildings and grounds Outside services Repairs, buildings and grounds Repairs, fumiture and equipment Supplies Utilities

Other Payroll taxes Personal client needs Postage Printing and office supplies Professional services Recreational expenses Salaries Telephone Therapeutic and training supplies Travel and seminars

Totals

Raintree House

$ -

-

2,830 -

13,961 500

-

22,884 2,672

48,260 527 902

23,380 7,636 5,471 6,247 2,734

-

17,789 1,554

22,771 7,687

54 694 104

5,137 274,094

980 6,288 9,483

$ 484,639

Program Services

Foster Care

$ -

--

3,967 -

500 358,985

6,363 -

11,888 50

_

-

314 -

-

--

-

12,215 7,407

22,664 354 739 603 181

90,955 1,110 4,388 9,330

$ 532,013

After School

$ -

--

6,887 -

---

-

255 -.

---

-

--

-

68 1,231

--

83 _

-

14,042 -

195 -

$ 22,761

Family Support Co

$

$

ordination

.

-

--

10,121 -

--

24,423 -

13,450 654

-

822 1,226

-

-

-

1,287 3,474

.

11,857 _

692 943 647

-

145,396 2,039

42 6,854

223,927

See notes to financial statements.

Exhibit C

2012 Program

Attendant Care Services

$ --

---

--

5,502 -

4,835 600

-

-

668 -

--

-

--

20,104 -

-

1,164 753

-

219,415 495 862

1,371

$ 255,769 1 =

Services

Totals

$ --

2,830 20,975 13,961

1,000 358,985

59,172 2,672

78,688 1,831

902

24,202 9,844 5,471 6,247 2,734 1,287

21,263 13,837 63,370 30,351

1,100 3,623 2,107 5,318

743,902 4,624

11,775 27,038

$ 1,519,109

General and Administrative

$ 90 -

16,984 1,630

--

5,700 -

19,503 -

24,233 250

-

13,486 8,592

-

250 2,837

540 3,474

17,282 17,462

-

1,549 8,879

41,850 -

232,424 8,800 1,819 1,557

$ 429,191

Fundraising

$ 2,505 -

----

--

4,621 -"

--

••

--••

--

-

2,388 2,600

-

228 4,507

--

35,157 330

-

141

$ 52,477

Totals

$ 2,595 -

16,984 4,460

20,975 13,961 6,700

358,985 83,296 2,672

102,921 2,081

902

37,688 18,436 5,471 6,497 5,571 1,827

24,737 33,507 83,432 30,351 2,877

17,009 43,957

5,318 1,011,483

13,754 13,594 28,736

$ 2,000,777

2011 Totals

$ 11,000 35,015 12,704 5,878

33,195 13,050 6,328

360,731 93,050

1,063 97,261

1,645 853

25,627 19,151 2,050

13,565 6,788

612 26,873 40,638 74,552 29,428

4,211 23,886 42,477

3,056 951,503

15,195 14,401 31,510

$ 1,997,296

STATEMENT OF CASH FLOWS



Exhibit D

2012 2011

Cash Flows From Operating Activities: Change in net assets Adjustnients to reconcile change in net assets

to net cash provided by (used in) operating activities: Bad debts Depreciation Realized gains on investments Unrealized (gains) losses on investments (Gain) loss on disposal of assets Donation of property (Increase) decrease in operating assets:

Service fees receivable Accrued interest receivable United Way receivable Grant receivable Prepaid expenses

Increase (decrease) in operating liabilities: Accounts payable Accrued vacation

Net cash provided by (used in) operating activities

Cash Flows From Investing Activities: Purchases of investments Proceeds from sales and maturities of investments Purchases of property and equipment Proceeds on sales of property and equipment

Net cash provided by (used in) investing activities

Net Increase (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents Beginning of year

End of year

See notes to fmancial statements.

$ (156,722)

37,688 (387,973) 551,317

(123)

(U,685) 9,371 19,058 (10,000) (2,593)

1,980 3,143

53,461

(2,304,477) 2,541,379 (180,177)

2,200

58,925

112,386

138,891

$ 251,277

$ 230,224

35,015 25,627

(170,415) (257,114)

223 (1,000)

18.855 (1,483) 1,718

20

(1,329) 707

(118,952)

(591.384) 556,640 (44,524)

(79,268)

(198,220)

337.111

$ 138,891

Exhibit E NOTES TO FINANCIAL STATEMENTS


June 30, 2012

Note 1 - NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Nature of Activities

Raintree Services, Inc. (the "Agency"), a non-profit organization incorporated under the laws of the State of Louisiana, provides services and support principally to children through young adults in the community. The Agency provides these services through five programs: The Raintree House program, The Therapeutic Family Care and Private Family Care programs (Foster Care programs), the After School program, the Family Support Coordination program, and the Attendant Care Services program (terminated June 30, 2012). Funding for the Raintree House program, the Foster Care programs, and the Attendant Care Services program is through contracted rates with various agencies of the State of Louisiana for services provided.

b. Basis of Accounting

The financial statements of the Agency are prepared on the accrual basis of accounting and, accordingly, reflect all significant receivables, payables, and other liabilifies.

c. Basis of Presentation

The Agency reports information regarding financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted, based on donor stipulations and restrictions place on contributions, if any. Accordingly, net assets of the Agency and changes therein are classified and reported as follows:

Unrestricted Net Assets - Net assets that are not subject to donor-imposed stipulations.

Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Agency and/or the passage of time.

8

Exhibit E (Continued)

Note 1 - NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c. Basis of Presentation (Continued)

Permanently Restricted Net Assets - Net assets subject to donor - imposed stipulations that they be maintained permanently by the Agency. Generally, the donors of these assets permit the Agency to use all or part of the income eamed on related investments for general or specific purposes.

d. Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ fi-om those estimates.

e. Cash and Cash Equivalents

For the purposes of the Statement of Cash Flows, the Agency considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.

f. Service Fees Receivable

Service fees receivable consists primarily of unsecured amounts due fi-om various govemmental agencies. Management closely monitors outstanding service fees receivable and estimates an allowance for uncollectible receivables based on prior experience. Balances that are determined to be uncollectible are written off All accounts are considered fully collectible by management. Accordingly, no provision for doubtftil accounts is considered necessary.

g. Contributions and Revenue Recognition

Contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or nature of any donor restrictions. Support that is restricted by a donor is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restrictions. When a restriction expires (that is, when a stipulated time restriction ends or a purpose restricfion is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. Donor restricted contributions whose restrictions are met



g. Contributions and Revenue Recognition (Continued)

in the same reporting periods are reported as unrestricted support.

h. Investments

Investments in equity securities with readily determinable fair values and all investments in debt securities and certificates of deposits are measured at fair value in the Statement of Financial Position. Investment income or loss (including gains and losses on investments, interest, and dividends) is included in the Statement of Activities as increases or decreases in unrestricted net assets unless the income is restricted by donor or law.

i. Property and Equipment

Property and equipment acquired prior to 1979, which primarily consists of the land and building, are recorded at their appraised fair market value as of June 30, 1979, because historical costs were not available. Other items of property and equipment are recorded at cost if purchased or at fair market value at the date of donation if donated. Repairs and maintenance are charged to expense as incurred; major renewals and replacements and betterments are capitalized. Depreciation is computed using the straight-line method over the estimated useful life of each asset which range from three to forty years.

j . Donated Services of Volunteers

Donated services have not been reflected in the fmancial statements since no objective basis is available to measure the value of such ser\'ices. A substantial number of volunteers donate significant amounts of their time in the Agency's program and supporting services.

k. Allocated Expenses

The costs of providing the various programs and other activities are summarized in the Statement of Functional Expenses. Certain expenses have been allocated among the programs and support services based on management's estimates of the costs involved.

10



L Income Taxes

The Agency has received a letter of determination fi-om the Intemal Revenue Service advising that it qualifies as a non-profit corporation under Section 501(c)(3) of the Intemal Revenue Code, and therefore, is not subject to income tax.

Accounting standards provide detailed guidance for financial statement recognition, measurement, and disclosures of uncertain tax positions recognized in an entity's financial statements. It requires an entity to recognize the financial statement impact of a tax position when it is more likely than not that the position will not be sustained upon examination. Tax years ended June 30, 2009 and later remain subject to examination by the taxing authorities. As of June 30,2012, management of the Agency believes that it has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements,

m. Subsequent Events

Management evaluates events occurring subsequent to the date of the financial statements in determining the accounfing for and disclosure of transactions and events that affect the financial statements. Subsequent events have been evaluated through November 21, 2012, which is the date the financial statements were available to be issued.

Note 2 - CONCENTRATION OF CREDIT RISK

Raintree Services, Inc. maintains cash accounts at several financial institutions located in southeast Louisiana. The Federal Deposit Insurance Corporation insures accounts at each institution up to $250,000 as of June 30,2012. There were no uninsured or non-guaranteed cash and cash equivalent balances as of June 30, 2012.

11

Note 3 - INVESTMENTS

As of June 30, 2012, investments are composed of the following:


Mutual funds Certificate of deposit

Totals

Balances at June 30, 2012

Balances at June 30,2011

Decrease in unrealized appreciation

$

$

$

Cost

2,304,463 3,010

2,307,473

Cost

2,307,473

2,156,402

$

$

$

1.

Market Value

2,288,465 3,010

2,291,475

Market Value

2,291,475

2,691,721

Excess of (Cost Over

Market) Value

$ (15,998)

$ (15,998)

Excess of Market Over Cost / (Cost

Over Market)

$ (15,998)

535,319

$ (551,317)

Investment income for the year ended June 30, 2012 is summarized as follows:

Interest Dividends Royalties Gain on sales and maturities

of investments Unrealized losses

Net investment income

$ 8,781 43,216

457

387,973 (551,317)

$ (110,890)

12

Note 3 - INVESTMENTS (Continued)

As of June 30, 2011, investments are composed of the followdng:

Totals $ 2,156,402 $ 2,691,721

Cost Market Value

Balances at June 30,2011 Balances at June 30, 2010

Increase in unrealized appreciation

$ 2,156,402 $ 2,691,721 $ 1,951,243 $ 2,229,448


Common stocks Corporate bonds Exchange traded funds Municipal bonds Govemment obligations Certificates of deposit

Cost

$ 926,060 654,242 422,396 100,708 50,000 2,996

Market Value

$ 1,319,994 683,301 534,108 101,068 50,254 2,996

Excess of Market Value

Over Cost

$ 393,934 29,059

111,712 360 254

-

$ 535,319

Excess of Market Value

Over Cost

$ 535,319

278,205

$ 257,114

Investment income for the year ended June 30, 2011 is summarized as follows:

Interest Dividends Royalties Gains on sales and maturities

of investments Unrealized gains

$ 34,502 38,777

117

170,4i5 257,114

Net investment income $ 500,925

13


Note 4 - ASSETS MEASURED AT FAIR VALUE

Fair value concepts are applied in recording investments. A fair value hierarchy which has three levels based on the reliability of the inputs used is used to determine fair value. These levels include: Level 1, unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, directly or indirectly observable inputs other than quoted prices for the asset or liability, such as quoted market prices for similar assets or liabilities; and Level 3, unobservable inputs for use when little or no market data exists, therefore requiring an entity to develop its own assumptions.

The asset's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The Agency uses the market approach for valuing mutual fijnds, common stocks, corporate bonds, exchange traded fiinds, municipal bonds, govemment obligations, and certificates of deposit which are within the Level 1 fair value hierarchy. These methods may produce a fair value calculation that may not be indicafive of net realizable value or reflective of fiiture fair values. Furthermore, while the Agency believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instmments could result in a different fair value measurement at the reporting date.

Assets measured at fair value on a recurring basis as of June 30, 2012 and 2011 are comprised of and determined as follows:

2012

Description

Mutual Funds Value Growth Blend Bond ftinds

Certificate of deposit

Totals

Total Assets Measured at Fair Value

$ 378,314 276,664 111,856

1,521,631 3,010

$ 2,291,475

%of Total

16.51 12.07 4.88

66.41 0.13

100.00

Quoted Prices in

Active Markets (Level 1)

$ 378,314 276,664 111,856

1,521,631 3,010

$ 2,291,475

Based on Other

Observable Inputs

(Level 2)

$

Unobservable Inputs

(Level 3)

$

14


Note 4 - ASSETS MEASURED AT FAIR VALUE (Continued)

2011

Description

Common stocks: Materials Consumer staples Consumer

discretionary Energy Financials Healthcare Industrials Information

technology Corporate bonds:

AA A BBB

Exchange traded funds: Small blend Foreign large blend

Municipal bonds: AAA

Govemment obligations Certificate of deposit

Totals

Total Assets Measured at Fair Value

$ 83,559 142,969

101,714 134,050 190,955 199,431 196,637

270,679

105,495 474,006 103,800

281,520 252,588

101,068 50,254 2,996

$ 2,691,721

%of Total

3.10 5.31

3.78 4.98 7.09 7.41 7.31

10.06

3.92 17.61 3.86

10.46 9.38

3.75 1.87 0.11

100.00

Quoted Prices in

Active Markets (Level 1)

$ 83,559 142,969

101,714 134,050 190,955 199,431 196,637

270,679

105,495 474,006 103,800

281,520 252,588

101,068 50,254 2,996

$ 2,691,721

Based on Other

Observable Inputs

(Level 2)

$

Unobservable Inputs

(Level 3)

$

As of June 30, 2012 and 2011, there were no assets measured at fair value on a nonrecurring basis.

15


Note 5 - PROPERTY AND EQUIPMENT

A summary of property and equipment is as follows:

2012 2011

Land Buildings and improvements Fumiture and equipment Automobiles

Less accumulated depreciation

Totals

$

$

90,000 1,213,996

238,162 53,804

1,595,962 (926,342)

669,620

$

$

90,000 1,096,953

236,321 31,594

1,454,868 (925,660)

529,208

Depreciation expense for the years ended June 30, 2012 and 2011 was $37,688 and $25,627, respectively.

Note 6 - RESTRICTIONS ON NET ASSETS

Temporarily restricted net assets are restricted by donors for specific programs or purposes of the Agency. These restrictions are considered to expire when payments for restricted purposes are made. Temporarily restricted net assets as of June 30, 2012 and 2011 are available for the following specified purposes:

2012 2011

Program expenses $ 35,480 $ 49,596

Note?- LINE OF CREDIT

The Agency has available a line of credit up to $50,000 with a bank at a variable interest rate (4.150% as of June 30, 2012). The line is collateralized with a certificate of deposit held by the Agency and matures January 26,2015. The Agency did not draw fiinds on the line of credit during the years ending June 30, 2012 and 2011. The line of credit was required by the State of Louisiana Department of Health and Hospitals for the Attendant Care Service program.

16

Exhibit £ (Continued)

Note 8 - ECONOMIC DEPENDENCY

Durmg the years ended June 30, 2012 and 2011, the Agency received $1,212,665 and $1,143,177, respectively, approximately 66% and 51%, respectively, of its support and program revenues, through the State of Louisiana, Department of Social Services in the form of a per diem rate set by their office. Should the contracted services be discontinued or the per diem contract rate be substantially reduced, the Agency would be required to obtain other sources of fiinding in order to maintain its present level of services.

Additionally, during the years ended June 30, 2012 and 2011, the Agency received $213,254 and $279,338, respectively, approximately 12% and 13%, respectively, of its support and program revenues, in the form of Medicaid reimbursements for the Family Support Coordination programs. The Medicaid intermediary for Medicaid patients reimburses for services rendered to Medicaid program beneficiaries under an agreement with fixed monthly rates that is subject to audit and retroactive adjustments. Management does not believe that the ultimate outcome of any cost report audit will have a significant impact on the Agency's financial statements.

Note 9 - RISKS AND UNCERTAINTIES

Investments in various securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is a least reasonably possible that changes in risk in the near term would materially affect the fair market value of investments held by the Agency.

Note 10 - RISK MANAGEMENT

The Agency is exposed to various risks of loss from torts; theft of, damage to, and destrucfion of assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters; and employee health and accident benefits. Commercial insurance coverage is purchased for claims arising from such matters. There were no settlement claims that exceeded this commercial coverage during the years ended June 30, 2012 and 2011.

17

SUPPLEMENTAL SCHEDULE

Schedule 1

SCHEDULE OF SUPPORT AND REVENUES AND EXPENSES


June 30, 2012 (with comparative totals for 2011)

2012 2011

Raintree House program Foster Care programs After School program Family Support Coordination Attendant Care Services program

Total program services

Contributions Private grants United Way grants and designations Investment income Other income Special events General and administrative Fundraising

Total

Revenues and Support

$ 469,810 742,855

-

213,254 265,851

1,691,770

68,320 50,000 23,511

(110,890) 143

138,205

$ 1,861,059

Expenses

$ 484,639 532,013 22,761

223,927 255,769

1,519,109

17,004 429,191

52,477

$ 2,017,781

Net

$ (14,829) 210,842 (22,761) (10,673) 10,082

172,661

68,320 50,000 23,511

(110,890) 143

121,201 (429.191) (52,477)

$ (156,722)

Revenues and Support

$ 394,080 749,097

-

279,338 60,380

1,482,895

65,500 23,000 42,161

500,925 6,649

123,780

$ 2,244,910

Expenses

$ 491,483 565,698 35,063

280,309 96,350

1,468,903

17,390 473,695

54,698

$ 2,014,686

Net

$ (97,403) 183,399 (35,063)

(971) (35,970)

13,992

65,500 23,000 42,161

500,925 6,649

106,390 (473,695) (54,698)

$ 230,224

18

SPECLVL REPORTS OF CERTIFIED PUBLIC ACCOUNTANTS

Bourgeois Bennett ^^CERTIFIED PUBLIC ACCOUNTANTS | CONSULTANTS

_ ^ _ _ _ _ _ ^ _ ^ ^ _ _ _ _ _ _ ^ _ _ _ ^ ^ ^ ^ . ^ ^ _ A LIMtTED klABrLITY COMPANY

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCLVL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

To the Board of Directors, Raintree Services, Inc,

New Orleans, Louisiana.

We have audited the accompanying fmancial statements of Raintree Services, Inc. (the "Agency") (a non-profit organization) as of and for the year ended June 30,2012, and have issued our report thereon dated November 21, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

Management of the Agency is responsible for establishing and maintaining effective intemal control over fmancial reportmg. In planning and performing our audit, we considered the Agency's intemal control over fmancial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the fmancial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's intemal control over fmancial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's intemal control over fmancial reporting.

A deficiency in intemal control exists when the design or operation of a control does not allow 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 significant deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement of the Agency's financial statements will not be prevented, or detected and corrected on a timely basis.

19

P.O. BOX 60600 • NEW ORLEANS, LA 70160-0600 504.831.4949 BOURGEOISBENNETT.COM

http://BOURGEOISBENNETT.COM

Our consideration of the internal control over fmancial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in intemal control over financial reporting that we consider to be material weaknesses, as defined above. However, we identified a deficiency in intemal control over financial reporting, described in the accompanying Schedule of Findings and Responses, as item 12-01 that we consider to be a significant deficiency in intemal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards,

The Agency's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. We did not audit the Agency's response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use of the Board of Directors, management. The Bureau of Consolidated Educational Programs, Office of Educational Support Programs and the Legislative Auditor for the State of Louisiana and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statue 24:513, this report is distributed by the Legislative Auditor as a public document.

/ d ^ u A j j ^ ADe,,uHJt^, l ^ C ^

Certified Public Accountants.

New Orleans, Louisiana, November 21, 2012.

20

SCHEDULE OF FINDEVGS AND RESPONSES


For the year ended June 30,2012

Section I - Summary of Auditor's Results

a) Financial Statements

Type of auditor's report issued: unqualified

Intemal control over financial reporting:

• Material weakness(es) identified? yes X_ no

• Significant deficiency (ies) identified? X yes none reported

Noncompliance material to financial statements noted? yes J(_ no

b) Federal Awards

Raintree Services, Inc. did not receive federal awards in excess of $500,000 during the year ended June 30,2012 and, therefore, is exempt from the audit requirements under the Single Audit Act and 0MB Circular A-133, Audits of States, Local Government, and Non-Proflt Organizations.

Section II - Internal Control Over Financial Reporting and Compliance and Other Matters Material to the Basic Financial Statements


12-01 Preparation of Financial Statements and Disclosures

Criteria - Adequate intemal controls in relation to financial reporting require the Agency to have the ability to prepare its own financial statements in accordance with generally accepted accounting principles ("GAAP"), including all required footnote disclosures, or detect misstatements or errors in statements prepared by others.

21

(Continued)

Section II - Internal Control Over Financial Reporting and Compliance and Other Matters Material to the Basic Financial Statements (Continued)

Internal Control Over Financial Reporting (Continued)

12-01 Preparation of Financial Statements and Disclosures (Continued)

Condition - Financial statements and required disclosures were prepared by the auditors.

Cause - The management of the Agency has not determined a need for a financial person possessing the required technical expertise for cost-benefit reasons.

Effect - The independent auditor cannot be part of the Agency's intemal control over financial reporting.

Recommendation - Management and those charged with govemance can mitigate the lack of qualifications and expertise in preparing financial statements by carefully reviewing the financial statements, including disclosures.

Views of responsible officials of the auditee when there is disagreement with the finding, to the extent practical - None.


There w ere no findings noted during the audit of the year ended June 30, 2012 related to compliance and other matters.

Section III - Federal Award Findings and Questioned Costs

Not applicable.

22

REPORTS BY MANAGEMENT

SCHEDULE OF PRIOR YEAR FEVDEVGS AND RESPONSES


For the year ended June 30, 2012

Section I - Internal Control Over Financial Reporting and Compliance and Other Matters Material to the Basic Financial Statements



Recommendation - Management and those charged with govemance can mitigate the lack of qualifications and expertise in preparing financial statements by carefully reviewing the fmancial statements, including disclosures.

Management's Corrective Action - Unresolved - Management and those charged with govemance will carefully review audited financial statements and related disclosures. For cost benefit reasons, management will rely on the independent auditor to identify related disclosures and prepare the financial statements in accordance with generally accepted accounting principles. (See 12-01).


No compliance findings material to the financial statements were noted during the audit of the financial statements for the year ended June 30, 2011.

Section II - Internal Control and Compliance Material To Federal Awards

Raintree Services, Inc. did not receive federal awards in excess of $500,000 during the year ended June 30, 2011 and, therefore, was exempt from the audit requirements under the Single Audit Act and 0MB Circular A-133, Audits of States, Local Government, and Non-Profit Organization.

Section III - Management Letter

A management letter was not issued in connection with the audit of the fmancial statements for the year ended June 30, 2011.

23

MANAGEMENT'S CORRECTIVE ACTION PLAN


For the year ended June 30, 2012

Section I - Internal Control Over Financial Reporting and Compliance and Other Matters Material to the Basic Financial Statements



Recommendation - Management and those charged with govemance can mitigate the lack of qualificafions and expertise in preparing financial statements by carefully reviewing the financial statements, including disclosures.

Management's Corrective Action - Management and those charged with govemance will carefully review audited financial statements and related disclosures. For cost benefit reasons, management will rely on the independent auditor to identify related disclosures and prepare the financial statements in accordance with generally accepted accounting principles.


No compliance findings material to the financial statements were noted during the audit for the year ended June 30,2012.

Section II - Internal Control and Compliance Material To Federal Awards

Raintree Services, Inc did not receive federal awards in excess of $500,000 during the year ended June 30, 2012 and, therefore, is exempt from the audit requirements under the Single Audit Act and 0MB Circular A-133, Audits of States, Local Government, and Non-Profit Organizations.

Section III - Management Letter

A management letter was not issued in connection with the audit of the financial statements for the year ended June 30, 2012.

24

raintree services inc. -...

Documents