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Chamber of Southwest Louisiana

COMBINED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT

December 31. 2015

TABLE OF CONTENTS

Page

Independent Auditors'Report 3-5

Financial Statements:

Combined Statement of Assets, Liabilities, and Net Assets - Cash Basis 6

Combined Statement of Revenue, Expenses, and Other Changes in Net Assets - Cash Basis 7

Combined Statement of Functional Expenses - Cash Basis 8

Notes to Combined Financial Statements 9-14

Supplemental Information:

Combining Statements of Assets, Liabilities, and Net Assets - Cash Basis 15-16

Combining Statements of Revenues, Expenses, and Other Changes in Net Assets - Cash Basis 17

Combining Statements of Expenses - Cash Basis 18

Schedule of Compensation, Benefits, and Other Payments to Agency Head or Chief Executive Officer 19

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 20-21

Schedule of Findings and Responses 22-23

Stulb & Associates, APAC Certified Public Acrnuntnutt —

James F. Stulb, C.P.A. Kristine S. Carter, C.P.A.

INDEPENDENT AUDITORS' REPORT

To the Boards of Directors Chamber of Southwest Louisiana Southwest Louisiana Partnership for Economic Development Southwest Louisiana Alliance Foundation, Inc. Lake Charles, Louisiana

We have audited the accompanying combined statement of assets, liabilities, and net assets -cash basis of the Chamber of Southwest Louisiana, the Southwest Louisiana Partnership for Economic Development, and the Southwest Louisiana Alliance Foundation, Inc. (the Chamber) (nonprofit organizations) as of December 31, 2015, and the related combined statement of revenue, expenses, and other changes in net assets - cash basis and combined statement of functional expenses - cash basis for the year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting as described in Note A; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and 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 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 standtirds require that we plan and 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 financial 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 intemal control relevant to the entity's preparation 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 the entity's intemal control.

Member AICPA • Member LCPA www, stiilbandassociates.com

100 Dr. Michael DeBakey Drive / P.O. Box 1117 • Lake Charles, Louisiana "^0602 (337) 494-1240 • (337) 494-1040 Fax

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the combined assets, liabilities, and net assets of the Chamber, as of December 31, 2015, and its support, revenue, and expenses for the year then ended in accordance with the modified cash basis of accounting as described in Note A.

Basis of Accounting

We draw attention to Note A of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2016, on our consideration of the Chamber's internal control over financial reporting and on 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 internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Chamber's internal control over financial reporting and compliance.

Other Matter Our audit was conducted for the purpose of forming an opinion on the combined financial statements as a whole. The combining financial statements and the schedule of compensation, benefits, and other payments to agency head or chief executive officer listed as supplemental information in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the Chamber. Such information is the responsibility of management and was derived from 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 combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accoimting 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.

Stulb & Associates

Report on Summarized Comparative Information

We have previously audited the Chamber's 2014 financial statements, and we expressed an unmodified audit opinion on those financial statements in our report dated Jime 29, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Lake Charles, Louisiana June 24,2016

Stulb & Associates

The Chamber of Southwest Louisiana COMBINED STATEMENT OE ASSETS,

LIABILITIES, AND NET ASSETS - CASH BASIS December 31, 2015 and 2014

ASSETS 2015 2014

CURRENT ASSETS Cash and cash equivalents $ 1,263,344.20 S 864,787.31

Total Current Assets 1,263,344.20 864,787.31

RESTRICTED CASH 74,972.20 189,441.13

PROPERTY AND EQUIPMENT Furniture, fixtures, and equipment 308,819.31 274,572.00 Building and improvements 62,997.95 62,997.95 Accumulated depreciation (256.477.82) (226.706.00)

Net Property and Equipment 115,339.44 110,863.95

TOTAL ASSETS $ 1.453.655.84 3 i 1.165.092.39

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES S 17,128.58 S 19,055.34

Total Current Liabilities 17,128.58 19,055.34

NET ASSETS Unrestricted 1,341,555.06 949,134.69 Temporarily restricted 94.972.20 196.902.36

Total Net Assets 1,436,527.26 1,146,037.05

TOTAL LIABILITIES AND NET ASSETS $ 1.453.655.84 ! $ 1.165.092.39

See notes to the combined financial statements

The Chamber of Southwest Louisiana COMBINED STATEMENT OE REVENUE, EXPENSES,

AND OTHER CHANGES IN NET ASSETS - CASH BASIS Eor the Year Ended December 31,2015

With Comparative Totals for the Year ended December 31, 2014

Temporarily Total Unrestricted Restricted 2015 2014

REVENUES, GAINS, AND OTHER SUPPORT

Membership dues $ 728,382.32 $ - $ 728,382.32 $ 678,313.21 SWLA on the Move campaign 874,996.00 - 874,996.00 916,969.00 Programs - 758,047.78 758,047.78 592,938.86 Rental income 115,990.68 - 115,990.68 98,807.83 Contributions and donations - . . 19,807.93 Grants - 575.597.82 575.597.82 572.823.86 Interest income Gain on sale of fixed assets Net assets released from restriction

586.75

1.435.575.76 (1.435.575.76)

586.75 713.46 500.00

TOTAL REVENUES, GAINS, AND OTHER SUPPORT 3,155,531.51 (101,930.16) 3,053,601.35 2,880,874.15

EXPENSES Program Management and general Fundraising

2,576,558.07 142,037.59

44.515.48

- 2,576,558.07 142,037.59

44.515.48

2,738,568.45 132,928.36

40.636.97

TOTAL EXPENSES 2.763.111.14 2.763.111.14 2.912.133.78

Change in Net Assets 392,420.37 (101,930.16) 290,490.21 (31,259.63)

Net Assets at Beginning of Year - Cash Basis 949.134.69 196.902.36 1.146.037.05 1.177.296.68

Net Assets at End of Year - Cash Basis $ 1.341.555.06 $ 94.972.20 $1,436,527.26 $1,146,037.05


7

The Chamber of Southwest Louisiana COMBINED STATEMENT OE

EUNCTIONAL EXPENSES - CASH BASIS Eor the Year Ended December 31,2015

With Comparative Totals for the Year Ended December 31,2014

Program Management & General Fundraising

Total

2015 2014

Advertising $ 263,829.43 S $ $ 263,829.43 $ 216,966.68 Auto 33,188.02 3,687.56 - 36,875.58 41,096.10 Depreciation 29,771.82 - - 29,771.82 25,143.00 Dues and subscriptions 37,380.06 - - 37,380.06 33,277.04 Education 5,990.87 - - 5,990.87 18,174.75 Employee benefits 79,320.05 10,842.91 3,998.96 94,161.92 95,210.06 Insurance 19,686.25 2,187.36 - 21,873.61 9,128.75 Miscellaneous 1,873.56 - - 1,873.56 6,227.47 Office 88,009.42 9,778.82 - 97,788.24 82,839.46 Outside services 13,520.82 - - 13,520.82 78,374.17 Payroll taxes 64,029.30 8,752.69 3,228.07 76,010.06 56,679.64 Printing and reproduction 14,201.60 1,577.95 - 15,779.55 7,256.15 Professional fees 24,930.00 2,770.00 - 27,700.00 40,490.00 Program expenses 877,784.19 - - 877,784.19 1,143,593.44 Rent 99,277.84 - - 99,277.84 94,621.78 Repairs and maintenance 4,468.00 - - 4,468.00 16,698.44 Salaries 739,623.25 101,105.19 37,288.45 878,016.89 755,376.68 SEED Center support 111,860.16 - - 111,860.16 138,180.23 Travel 55,797.47 - - 55,797.47 37,348.98 Telephone 12,015.96 1,335.11 - 13,351.07 15,450.96

$2,576,558.07 $142,037.59 $44,515.48 $2,763,111.14 $2,912,133.78


The Chamber of Southwest Louisiana NOTES TO COMBINED EINANCIAL STATEMENTS

December 31, 2015

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Combination The accompanying financial statements reflect the combined financial statements of the Chamber of Southwest Louisiana (the Chamber) and all related entities as described below. The nominating committee of the Chamber elects the board of directors of the Chamber. The board of directors for the Southwest Louisiana Alliance foundation, Inc. includes the Chamber board of directors along with other elected officials. The Partnership board of directors is comprised of three appointed members by each police jury in the district and the mayors of all incorporated municipalities within the district. The Chamber and the other entities share a common Executive Director, facilities, and personnel. Material interorganization transactions and balances have been eliminated.

Nature of Activities The combined financial statements include the accounts of the Chamber of Southwest Louisiana, the Southwest Louisiana Economic Development Alliance, and the Southwest Louisiana Partnership for Economic Development, Inc.

The Chamber of Southwest Louisiana, a nonprofit organization incorporated under the laws of the State of Louisiana, is exempt from federal income tax under section 501(c) 6 of the Internal Revenue Code. The Chamber's primary activity is acquiring members to promote ongoing regional development to cultivate a higher quality of life for all citizens. The Southwest Louisiana economic region served by the Chamber includes the parishes of: Calcasieu, Cameron, Beauregard, Allen and Jefferson Davis.

Southwest Louisiana Alliance Foundation, Inc., a nonprofit organization incorporated under the laws of the State of Louisiana, is exempt from federal income tax under Section 501(c) 3 of the Internal Revenue Code. The Alliance's primary activity is promoting the SWLA on the Move Campaign to further the economic welfare and development of the Southwest Louisiana region. It is an affiliate of the Chamber SWLA and is designed to supplement the industrial, business, and commercial development activities of that organization.

Southwest Louisiana Partnership for Economic Development, Inc., a nonprofit organization incorporated under the laws of the State of Louisiana, is exempt from federal income tax under section 501(c) 6 of the Internal Revenue Code. The Partnership's primary activity is acquiring Louisiana Economic Development grants to stimulate economic growth, quality of life, and job creation in the surrounding five parish area.


December 31, 2015

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Basis of accounting The Organization's policy is to prepare its financial statements on the modified cash basis of accounting, which is a basis of accounting other than United States Generally Accepted Accounting Principles (U. S. GAAP). Under U. S. GAAP, transactions are recorded in the accounts when revenues are earned and liabilities are incurred. Under the modified cash basis, revenues are recognized when cash is received rather than earned, and expenses and the purchase of assets are recognized when cash is disbursed rather than when the obligation is incurred.

financial statement presentation To ensure observance of limitations and restrictions placed on the use of available resources, the accounts of the Organization are maintained in accordance with the principles of fund accounting. Under such principles, resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with specified activities or objectives. The Organization also prepares financial statements in accordance with EASB Accounting Standards Codification (ASC) 958-205 and subsections. Under EASB ASC 958-205, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Unrestricted net assets are not subject to donor-imposed stipulations.

Temporarily restricted net assets consist of donor-restricted contributions. Amounts restricted by the donor, grantor or other outside party for a particular purpose are recognized as revenue when received and such amounts are reported as temporarily restricted net assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction 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.

Permanently restricted net assets are those net assets subject to donor-imposed stipulations that they be maintained permanently by the Chamber. Generally, the donors of these assets permit the Chamber to use all or part of the income earned on any related investments for general or specific purposes. Currently, the Chamber does not have any permanently restricted assets.

Use of estimates The preparation of financial statements for the Chamber requires the use of management's 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. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents Cash includes cash on hand, demand deposits, and all short-term debt securities purchased with an original maturity of three months or less to be cash equivalents.

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December 31, 2015

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Eair Value of Einancial Instruments The Chamber's financial instruments, none of which are held for trading purposes, include cash. The Chamber estimates that the fair value of all financial instruments at December 31, 2015, does not differ materially from the aggregate carrying value of its financial instruments recorded in the accompanying Statement of Assets, Liabilities, and Net Assets - Cash Basis.

Advertising Costs The Organization uses advertising to promote Southwest Louisiana in order to increase economic growth and quality of life for the region. Advertising costs are charged to operations when incurred. Total advertising cost for the year ended December 31, 2015 amounted to $263,829.

Propertv and Equipment It is the Chamber's policy to capitalize property and equipment over S500. Lesser amounts are expensed. Purchased property and equipment are capitalized at cost.

Donations of property and equipment are recorded as contributions at their estimated fair value. Such donations are reported as unrestricted contributions unless restricted by the donor. Assets donated with explicit restrictions regarding their use, as well as contributions of cash that must be used to acquire property and equipment, are reported as restricted contributions. The Chamber reclassifies these restricted assets to unrestricted assets at such time that the purpose or time restriction is satisfied. Property and equipment are depreciated using the straight-line method with the following useful lives:

Eumiture, fixtures, and equipment 3-7 years Hardware and Software 3-7 years Improvements 7-15 years

Depreciation expense for the year ending December 31, 2015 was $29,772.

Contributed Materials and Services Donated materials, supplies, and advertising are reflected in the financial statements at their estimated values at the date of receipt. $106,338 has been included in revenues for year ending December 31, 2015 with a corresponding charge to program expenses. Donated services that do not require specialized skills or enhance nonfmancial assets are not recorded in the accompanying financial statements because no objective basis is available to measure the value of such services. A substantial number of volunteers have donated significant amounts of their time to the Organization's program services and its fundraising campaigns, the value of which is not recorded in the accompanying financial statements.

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December 31, 2015

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Compensated Absences Vacation, compensation time, and sick leave are recorded as expenditures of the period in which they are paid. Employees can carry over no more than 40 hours of paid time off from one calendar year to the next and can accrue no more than 80 hours unused leave in any three year period of service. Upon termination of employment, the employee will be paid for any unused paid time off. Employees are able to accrue 24 hours of unused sick leave from one calendar year to the next. However, there will be no payment of unused sick leave upon separation of employment.

NOTE B - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2015: Balance Balance 12/31/14 Additions Disposals 12/31/15

Eumiture, fixtures, and Equipment Hardware and Software

$274,572

62.998

$ 34,247 $ $308,819

62.998

Total Accumulated

337,570 34,247 371,817

Depreciation ("226.706) ("29.772) ("256.478) Net Book Value

$110,864 $ 4.475 $ $115,339

NOTE C - LEASING ARRANGEMENTS

The Chamber entered into a lease agreement with McNeese State University for the SEED Center on May 17, 2013. The lease is effective until December 31, 2043. Minimum annual rent beginning the effective date of the lease is $33,755. In accordance with the lease agreement, rent is adjusted annually to reflect lease operating costs. The total rent expense for the year ending December 31, 2015 was $34,640.

The following is a schedule of future minimum rental payments required for the lease with McNeese State University as of December 31, 2015:

Year Ending December 31. Amount 2016 $ 33,755 2017 33,755 2018 33,755 2019 33,755 2020 33,755 Thereafter 776.365

$ 945.140

12


December 31, 2015

NOTE C - LEASING ARRANGEMENTS - CONTINUED

As part of the Business Incubator Program, the Chamber is responsible for leasing out space to small businesses and providing specific assistance needed to help them grow into larger, more profitable businesses. Rent collected in 2015 in connection with this program was $81,314. The space for the program was leased from McNeese State University with a total rent expense of $51,164 for the year ending December 31, 2015.

The Chamber has agreed to sublease a portion of the space it occupies in the SEED Center to the Imperial Calcasieu Regional Planning & Development Commission (IMCAL). The sublease expires on July 31, 2018. The total rental income for the year ending December 31, 2015 from IMCAL was $30,200 and the total rental expense to McNeese State University for this space was $13,474. Minimum rentals on the operating lease with IMCAL for the next five years are as follows:

Year Amount 2016 $30,000 2017 30,000 2018 17,500 2019 -

2020 -

Total $77,500

NOTE D - CONCENTRATIONS OE CREDIT RISK

The Organization maintains its cash accounts in commercial banks. Cash is secured by EDIC insurance up to $250,000 at each financial institution. Balances not insured by EDIC coverage at December 31, 2015 were $304,006.

The Organization receives a substantial amount of its support from governmental agencies, the SWLA on the Move campaign, and membership dues from entities located in the Southwest Louisiana area. A significant reduction in this support, if it were to occur, would affect the Chamber's programs and activities.

NOTE E - TEMPORARILY RESTRICTED NET ASSETS

Temporarily restricted net assets are available for the following purposes or periods:

fusion five $22,793 Leader in Me 40,614 Housing Study 11.565

Total Restricted Cash 74,972

Restricted for periods after December 31, 2015 20.000

Total Temporary Restricted Net Assets $94.972

13


December 31, 2015

NOTE E - TEMPORARILY RESTRICTED NET ASSETS - CONTINUED

Net assets were released from donor/grantor restrictions by incurring expenses satisfying the restricted purposes or time restrictions specified by donors/grantors. The total amount released from restrictions during the year ending December 31, 2015 was $1,435,576.

NOTE E - BOARD DESIGNATED EUNDS

In 2011, the Chamber sold their building and the Board of Directors approved the establishment of a board designated fund. The purpose of the fund is to segregate $400,000 from the sale. There is no legal restriction requiring this, however it does require that the use of the funds will be decided by the Board of Directors.

NOTE G - EUNCTIONAL ALLOCATION OE EXPENSES

The cost of providing the various programs and supporting services have been summarized on a functional basis in the combined statement of functional expenses - cash basis. This requires the allocation of certain cost between programs and supporting services based on estimates made by management.

NOTE H - RETIREMENT PLAN

During the year ended December 31, 2015 the Organization made available to eligible employees the opportunity to participate in a defined contribution retirement plan. The Organization matches employee contributions up to 5% of employee compensation. Retirement expense for the year ended December 31, 2015 was $12,072.

NOTE I - PRIOR PERIOD INEORMATION

The financial statements include certain prior year summarized comparative information in total. Such information does not include sufficient detail to constitute a presentation in conformity with the modified cash basis of accounting. Accordingly, such information should be read in conjunction with the Chamber's financial statements for the year ended December 31, 2014, from which the summarized information was derived.

NOTE J - SUBSEQUENT EVENTS

Management has evaluated subsequent events through June 24, 2016, the date when the financial statements were available to be issued.

14

The Chamber of Southwest Louisiana COMBINING STATEMENTS OE ASSETS,

LIABILITIES, AND NET ASSETS - CASH BASIS December 31. 2015

The Chamber of Southwest LA

Southwest LA Southwest LA Partnership for

Alliance Economic Eoundation, Inc. Development, Inc. Eliminations

ASSETS Cash and cash equivalents Due from affiliates

$ 722,023.09 $ 434,103.01 $ 107,218.10 $

Total

1.263.344.20

Southwest LA Alliance Eoundation, Inc. Southwest LA Partnership

257,912.54 11,851.81 - -

(257,912.54) (11,851.81) -

Restricted cash 22,792.84 40,614.26 11,565.10 - 74,972.20

Property and equipment Eumiture, fixtures, and equipment Hardware/software Accumulated depreciation

29,954.14 21,069.19

(46,698.27)

266,724.73 41,928.76

(197,639.11)

12,140.44

(12,140.44)

- 308,819.31 62,997.95

(256,477.82)

4,325.06 111,014.38 - - 115,339.44

TOTAL ASSETS $ 1,018,905.34 $ ; 585,731.65 $ 118,783.20 S i (269,764.35) $ 1,453,655.84

See Independent Auditors' Report 15

The Chamber of Southwest Louisiana COMBINING STATEMENTS OE ASSETS,

LIABILITIES, AND NET ASSETS - CASH BASIS December 31. 2015


Southwest LA Alliance

Eoundation. Inc.

Southwest LA Partnership for

Economic Development, Inc. Eliminations Total

LIABILITIES Payroll liabilities Due to affiliates


$ 17,128.58 $ $

257,912.54 11,851.81

$

(269,764.35)

$ 17,128.58

Total Liabilities 17,128.58 257,912.54 11,851.81 (269,764.35) 17,128.58

NET ASSETS Unrestricted Temporarily restricted

978,983.92 22,792.84

267,204.85 60,614.26

95,366.29 11,565.10

- 1,341,555.06 94,972.20

Total Net Assets 1,001,776.76 327,819.11 106,931.39 - 1,436,527.26

TOTAL LIABILITIES AND NET ASSETS $ 1,018,905.34 $ 585,731.65 $ 118,783.20 $ (269,764.35) $1,453,655.84


REVENUES Membership dues SWLA on the Move campaign Programs Rental income Grants Interest income

Total revenues

The Chamber of Southwest Louisiana COMBINING STATEMENTS OE REVENUES, EXPENSES, AND OTHER CHANGES IN NET ASSETS - CASH BASIS

Eorthe year ended December 31, 2015


$ 728,382.32 $

468,548.11

542.66 _

1.197.473.09

Southwest LA Alliance

foundation. Inc.

874,996.00 259,320.26 115,990.68 253,916.95

44.09

1.504.267.98

Southwest LA Partnership for

Economic Development, Inc. Eliminations

30,179.41

321,680.87

351.860.28

Total

728,382.32 874,996.00 758,047.78 115,990.68 575,597.82

586.75

3.053.601.35

EXPENSES Total expenses 1.105.020.73 1.357.250.35 300.840.06 2.763.111.14

Change in net assets

Net assets at beginning of year - Cash Basis

92.452.36

909.324.40

147.017.63

180.801.48

51.020.22

55.911.17

290,490.21

1.146.037.05

Net assets at end of year - Cash Basis $ 1,001,776.76 $ 327,819.11 $ 106,931.39 $ 1,436,527.26


The Chamber of Southwest Louisiana COMBINING STATEMENTS OE EXPENSES - CASH BASIS

Eorthe year ended December 31, 2015

Southwest LA Southwest LA Partnership for

The Chamber of Alliance Economic Southwest LA foundation. Inc. Development, Inc. Eliminations Total

Advertising $ 89,790.73 $ 67,009.95 $ 107,028.75 $ $ 263,829.43 Auto 16,222.17 20,653.41 - 36,875.58 Depreciation 2,546.27 26,830.11 395.44 29,771.82 Dues and subscriptions 14,262.76 23,117.30 - 37,380.06 Education 3,909.82 2,081.05 - 5,990.87 Employee benefits 38,067.14 56,094.78 - 94,161.92 Insurance 13,799.23 8,074.38 - 21,873.61 Miscellaneous 1,003.01 870.55 - 1,873.56 Office 59,061.92 38,726.32 - 97,788.24 Outside service - 13,520.82 - 13,520.82 Payroll taxes 31,960.71 44,049.35 - 76,010.06 Printing and reproduction 13,765.66 2,013.89 - 15,779.55 Professional fees 11,475.00 10,900.00 5,325.00 27,700.00 Program expenses 337,270.00 364,523.32 175,990.87 877,784.19 Rent 19,971.95 79,305.89 - 99,277.84 Repairs and maintenace 726.52 3,741.48 - 4,468.00 Salaries 433,450.63 444,566.26 - 878,016.89 SEED Center support - 111,860.16 - 111,860.16 Travel 13,177.33 30,520.14 12,100.00 55,797.47 Telephone 4,559.88 8,791.19 - 13,351.07

$ 1,105,020.73 $ 1,357,250.35 $ 300,840.06 $ $ 2,763,111.14


The Chamber of Southwest Louisiana

SCHEDULE OE COMPENSATION, BENEEITS, AND OTHER PAYMENTS TO AGENCY HEAD OR CHIEE EXECUTIVE OEEICER

Eor the Year ended December 31. 2015

AGENCY HEAD NAME: George Swift, Executive Director

PURPOSE AMOUNT

Salary $161,683 Benefits

Insurance 9,345

Car Allowance 7,200

Registration Eees 3,060

Conference Travel 23,747

Special Meals 1,441

Continuing Education Eees 295

TOTAL $206,771

19

Stulb & Associates, APAC Certified Public Armu-nt.iuti^—

James F. Srulb, C.P.A. Kristine S. Carter, C.P.A.

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT

A UDITING STANDARDS

To the Boards of Directors Chamber of Southwest Louisiana Southwest Louisiana Partnership for Economic Development Southwest Louisiana Alliance Foundation, Inc. Lake Charles, Louisiana

We have audited, 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, the combined financial statements of the Chamber of Southwest Louisiana, the Southwest Louisiana Partnership for Economic Development, and the Southwest Louisiana Alliance Foundation, Inc. (the Chamber) (nonprofit organizations), which comprise of the combined statement of assets, liabilities, and net assets - cash basis as of December 31, 2015, and the related combined statement of revenue, expenses, and other changes in net assets - cash basis and combined statement of functional expenses - cash basis for the year then ended, and the related notes to the financial statements, and have issued our report thereon, dated June 24, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Chamber's internal control over financial reporting (internal control) 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 effectiveness of the Chamber's intemal control. Accordingly, we do not express an opinion of the effectiveness of the Chamber's intemal control.

A deficiency in internal 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 deficiencies, in intemal 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 corrected on a timely basis. A significant deficiency is a deficiency, or a combination or deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance.

Member AICPA • Member LCPA w-ww.stulbandassociates.com

100 Dr. Michael DeBakey Drive / P.O. Box 1117 • Lake Charles, Louisiana 70602 (337) 494-1240 • (337) 494-1040 Fax

Our consideration of 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 be material weaknesses or signifieant 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 that we consider to be material wealmesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and responses that we eonsider to be a significant deficiency, listed as item 2015-1.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Chamber's financial statements are free from material misstatement, we performed tests of its compliance v^dth certain provisions of law, 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.

Chamber's Response to Findings

The Chamber's response to the findings identified in oiu audit is described in the accompanying schedule of findings and responses. The Chamber's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization's internal control or on compliance. This report is an integral part of an audit performed in aceordance with Government Auditing Standards in considering the organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Lake Charles, Louisiana June 24, 2016

Srulb & Associates

Chamber of Southwest Louisiana Lake Charles, Louisiana

SCHEDULE OE EINDINGS AND RESPONSES

Section I - Summary of Auditors' Results December 31. 2015

Financial Statements

Type of auditor's report issued: Unmodified

Internal control over financial reporting: • Material weakness (es) identified?

• Significant Deficiency(ies) identified that are not considered to be material weaknesses?

• Noncompliance material to financial statements noted?

yes

Xyes

X no

no

yes X no

Section II - financial Statement findings

Current Audit 2015-1 Check Signature Criteria: The Organization requires two authorized signatures for checks greater than $9,000.

Condition: During our audit, we discovered two checks cleared the bank during 2015 that were in excess of S9,000 with only one authorized signature on them.

Effect: Without proper authorized signatures on checks, the Organization could have unauthorized checks being disbursed.

Recommendation: In order to follow procedures in place, we recommend all checks be reviewed by an additional staff member for proper authorized signatures prior to mailing.

Response: In 2015, Management implemented procedures to ensure properly authorized disbursements. Both of the two checks that cleared in 2015 with only one authorized signature one them were written before the new procedures had been implemented.

22

Chamber of Southwest Louisiana Lake Charles, Louisiana

SCHEDULE OE EINDINGS AND RESPONSES

Section II - Einancial Statement Eindings (continued')

Prior Audit 2014-1 Leader in Me Criteria: The Organization operates the Leader in Me Program. The program is funded by contributions that are directed to specific schools within the surrounding five parish area.

Condition: Although the Organization maintains a separate checking account for this program, a separate subsidiary ledger reconciling donations and expenditures for each school is not maintained.

Effect: The Organization does not have an accurate balance, by school, of funds available for the program.

Recommendation: The Organization should maintain a subsidiary ledger for each school that is sponsored in the program.

Response: Management will create and maintain a subsidiary ledger, by school, of funds available for the program.

2014-2 Check Signature Criteria: The Organization requires two authorized signatures for checks greater than $9,000.

Condition: During our audit, we discovered two checks cleared the bank during 2014 that were in excess of S9,000 with only one authorized signature on them.

Effect: Without proper authorized signatures on checks, the Organization could have unauthorized checks being disbursed.

Recommendation: In order to follow procedures in place, we recommend all checks be reviewed by an additional staff member for proper authorized signatures prior to mailing.

Response: Management has implemented procedures to ensure properly authorized disbursements.

23

Stulb & Associates, APAC Certified Public Accountants ;

James F. Stulb, C.P.A. Kristine S. Carter, C.P.A.

June 24, 2016

The Board of Directors Chamber of Southwest Louisiana Southwest Louisiana Partnership for Economic Development Southwest Louisiana Alliance Foundation, Inc. Lake Charles, Louisiana

In planning and performing our audit of the financial statements of The Chamber of Southwest Louisiana, the Southwest LA Alliance Foundation, Inc., and the Southwest LA Partnership for Economic Development (the Chamber) for the year ended December 31, 2015; we considered its internal controls system in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control.

However, during our audit, we became aware of matters that are opportunities for strengthening internal controls and operating efficiency. This letter does not affect our report dated June 24, 2016.

FDIC Limits During our examination we discovered the Chamber has more than $250,000 at Capital One Bank. We recommend the organization transfer funds to another bank or enroll in an insured account to ensure all funds are properly covered by FDIC.

Donated Materials and Services During our examination we noted that the Chamber does not always record donated materials and services. In order to more accurately reflect total revenues and the value of assets received, we recommend maintaining a comprehensive list of items donated during the year. The list should indicate the donor, the date donated, and the estimated value of the donation. At least quarterly, an entry reflecting these donations should be made to the financial records.

Credit Card Data Entry During our examination we noted that the Chamber reconciles the credit card statements on a monthly basis, however maintains a separate spreadsheet to calculate the posting into Quickbooks. In order to be more efficient, we recommend posting each transaction into Quickbooks directly. The supporting documentation should be reconciled on a monthly basis to the credit card statement and the general ledger.

Member AICPA • Member LCPA www.stulbandassociates.com

100 Dr. Michael DeBakey Drive / P.O. Box 1117 • Lake Charles, Louisiana 70602 (337)494-1240 • (337) 494-1040 Fax

We would be happy to assist your organization in implementing any of the above recommendations.

This report is intended solely for the information and use of The Chamber of Southwest Louisiana, management, and others within the organization and is not intended to be and should not be used by anyone other than these specified parties.

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Stulb & Associates, APAC

Srulb & Associates

June 29, 2016 Re: 2015 Audit Responses:

1.

2.

3.

4.

Check Signature: The two checks that had only one signature were written prior to the completion of the 2014 audit and the new procedures that were put into effect. We now have a third staff member review checks to be sure they contain two signatures. FDIC Limits: We have contacted Capital One Bank and will utilize a sweep account to insure that we do not go over the $250,000 limit. 3. Donated Materials and Services: We did record donations however we waited until the end of the year to post on the financial statements. We will now begin recording these donations on a quarterly basis. Credit Card Data Entry: We will begin posting transactions directly into quick-books.

Sincerely,

w George Swift President/CEO

A SOUTHWEST LOUISIANA CHAMBER ALHANCE SOUTHWEST LOUISIANA FOUNDATION

Southwest Louisiana

"KveriiH/tp for Economic Dcvetoprridnt -4 SEED CENTER

BUSINESS INCUBATOR

4310 Ryan Street • Lake Charles, Louisiana • Mailing Address: PO Box 3110, Lake Charles, LA 70602-3110 Phone: 337.433.3632 • Fax: 337.436.3727 •www.allianceswla.org

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