^f^

ARTS COUNCIL OF CENTRAL LOUISIANA

REPORT ON FINANCIAL STATEMENTS

FORTHEYEARENDED JUNE 30,2010

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 ofthe Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

Release Date 3 / ^ 3 / / /

ARTS COUNCIL OF CENTRAL LOUISIANA

TABLE OF CONTENTS JUNE 30,2010

Independent Accountant's Review Report 3

Statement of Financlai Position 4

Statement of Activities 5

Statement of Functional Expenses 6

Statement of Cash Flows 7

Notes to Financial Statements 8

Independent Accountant's Report on Applying Agreed-Upon Procedures 12

Schedule of Prior Year Findings 15

Paul Dauzat, CPA MEMBER pct Rrtv H^^Q MEMBER

AAlERiaNINSrnUTiOF ^-^^ ° ^ ^ '-^^^^ SOCIETY OF LOUISIANA aRTiFiED PUBLIC ACCOUNTANTS Alexandria, LA 7 1 3 1 5 CERnriEo PUBUC ACCOUNTANTS

Independent Accountant's Report

To the Board of Directors Arts Council of Central Louisiana Alexandria, Louisiana

t have reviewed the accompanying basic financial statements of the activities and each major fund of the Arts Council of Central Louisiana, as of and for the year ended June 30, 2010, as listed in the table of contents, in accordance with U.S. Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of the Arts Council.

A review consists principally of inquires of personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which Is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, t do not express an opinion.

Based on my review, I am not aware of any material modifications that should be made to the accompanying basic financiai statements in order for them to be in conformity v^th generally accepted accounting principles.

In accordance with tiie Louisiana Govemmental Audit Guide and the provisions of state law, I have issued a report dated December 15,2010, on the results of our agreed-upon procedures.

^

Paul Dauzat Certified Public Accountant December 15, 2010

(318) 443-3977 • Cell (318) 452-7376 • FAX (318) 445-2017

ARTS COUNCIL OF CENTRAL LOUISIANA

STATEMENT OF FINANCIAL POSITION June 30,2010

ASSETS

Current assete Cash and Cash Equivalents Grants Receivable Other Receivables Prepaids

Total Cunent Assets

Endowment Investments I nvestments-Designated

Total Endowment Investments

Property and Equipment Fumiture. Equipment and Leasehold Improvements, net Collections-Works of Art

Total Property and Equipment

Total Assets

15,234 26.459 37,818 18,055 97,566

46,855 46,855

1.815 79,000 80,815

$ 225.236

LIABILITIES AND NET ASSETS

Current Liabilities Accounts Payable Payroll Liabilities Unearned Revenues

Total Current Liabilities

Net Assets Unrestricted-Undesignated

Total Net Assets

Total Liabilities and Net Assets

$ 26,725 117

39,674 66,516

158720 158720

$ 225,236

See Accompanying Notes To Financlai Statements 4

ARTS COUNCIL OF CENTRAL LOUISIANA

STATEMENT OF ACTIVITIES For the Year Ended June 30,2010

(NCREASES IN NET ASSETS Revenue, Gains and Other Support

Admissions, Memberships, Subscriptions Contracted Ser>rices Revenue Corporate Support Division of tiie Arts Grants Charitable Lead Trust Split-Interest Agreement United Way Foundation Support Govemment Support Other Private Support Interest and Dividend Income Other Revenues Unrealized Gains on Investments Net Assets Released from Restiictions:

Restrictions Satisfied by Payments

Total Revenues, Gains and Other Support

DECREASES IN NET ASSETS Expenses

Program Services Supporting Sen/ices:

Management and General

Total Expenses

Change in Net /^sets

Net Assets-Beginning of Year Net Assets-End of Year

Unrestricted

$ 65.408 31.206 12.050 40.352 10,000

273 80,261 45.000 20.255

1.571 40,737 3,606

146,437

497,156

Temporarily Restricted

$ --

52.500 --

48,937 45,000

----

(146,437)

Totai

$ 65,408 31,206 12,050 92,852 10,000

273 129,198 90,000 20.255

1.571 40,737 3,606

_

497,156

342,018

169,387

511,405

(14.249)

37.736 $ 23,487

-

_

-

135.233 $ 135,233

342,018

169,387

511,405

(14,249)

172,969 $ 158,720

See Accompanying Notes To Financiai Statements 5

ARTS COUNCIL OF CENTRAL LOUISIANA

STATEMENT OF FUNCTIONAL EXPENSES June 30,2010

Employee Compensation Salaries Employee Benefits Payroll Taxes

Total Employee Compensation

Operating Expenses Outside Professional Sen/lces Travel Marinating Repairs and Maintenance Conferences and Meetings Dues and Subscriptions Equipment Leases and Rentals Insurance Interest Office Expense Postage and Shipping Printing Receptions and Hospitality Rent Supplies and Materials Management Fees Telephone & Internet

Total Operating Expenses

Total Expenses Before Depreciation Depreciation

Total Functional Expenses

Program Services

$ 130,600 31.450 10,551

172,601

48.855 3,802 4,858 4.692

944 232

23.683 9.694

--

1.547 3,414 3,651

48.937 3,492

-11.470

169.271

341.872 146

$ 342.018

lUlanagement And General

$ 105.511 18,123 9,163

132,797

800 780 319

-35

2,236 2,689 3.275

242 509 221 483

--

3,209 246

2,919 17,963

150.760 18,627

$ 169.387

TOTAL

$ 236.111 49.573 19.714

305,398

49.655 4.582 5.177 4.692

979 2.468

26,372 12,969

242 509

1,768 3,897 3,651

48,937 6,701

246 14,389

187,234

492,632 18,773

$ 511.405

See Accompanying Notes To Financial Statements 6

ARTS COUNCIL OF CENTRAL LOUISIANA

STATEMENT OF CASH FLOWS For the Years Ended June 30,2010

Operating Activities

Change In Net Assets $ (14.249) Adjustments to Reconcile Change in Net Assets

to Net Cash Provided by Operating Activities: Depreciation (Increase) Decrease in Accounts Receivable 82,060 (Increase) Decrease in Grants Receivable (22,425) (Increase) Decrease in Prepaids (14,227) Increase (Decrease) in Accounts Payable 21,678 Increase (Decrease) in Payroll Liabilities 44 Increase (Decrease) in Unearned Revenue (98,726)

Net Cash Provided (Used) by Operating Activities (45.845)

Investing Activities

Purchase of Property and Equipment (500)

Endowment Investments (6.394)

Net Cash Provided (Used) by investing Activities (6,894)

Net Increase (Decrease) in Cash and Cash Equivalents (52,739)

Cash and Cash Equivalents-Beginning of Year 67,973 Cash and Cash Equivalents-End of Year $ 15,234

Supplemental Disclosuros:

1-Tiie amount paid for interest expense during the year was $ 242. 2-Unrealized gains on investments fbr tiie year were $ 3,606. 3-No amounts were paid for Income taxes during the year.

See Accompanying Notes To Financial Statements 7

ARTS COUNCIL OF CENTRAL LOUISIANA

Notes to Financlai Statements For the Year Ended June 30,2010

[NOTE^. ̂ 2 J Summary of Significant Accounting Policies

Organization and Nature of Activities:

The Arts Council of Central Louisiana serves the citizens of central Louisiana by providing sen/ices to support and foster an environment in which the arts can thrive. The Louisiana Division ofthe Arts has designated the Council as the regional development agency for artists and cultural organizations in eight central Louisiana parishes.

The Council is a not-for-profit organization as described in Section 501 (C) (3) of tiie Intemal Revenue Code and is exempt from federal and state income taxes. Arts Council of Centi^l Louisiana was incorporated on January 7,1980 and received its exempt status by letter dated August 20,1980.

Public Support and Revenue:

Grants and other contributions of cash and other assets aro reported as temporarily resbicted support if they are received with donor stipulations that limit the use of the donated assets. When a donor resfaiction expires, that is, when a stipulated time restiiction 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 restiictions.

Endo\Amrient contilbutions and investinents are designated by the Organization's board of trustees as unrestricted. Investment earnings v^th board restrictions are recorded in unrestricted net assets.

Contributions of donated non-cash assets, including collections-wortts of art are recorded at their fair values in the period received. Contributions of donated services that create or enhance non-financial assets or that require specialized skills, are provided by Individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at tiieir ̂ i r values in the period received.

Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions tiiat afiiect certain reported amounts and disclosures. Acconjingly, actual results could differ fiom tiiose estimates.

Cash and Casti Equivalents:

The Council considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Property and Equipment:

Fumiture, equipment and leasehold improvements are capitalized at cost. All categories are depreciated over estimated useftjl lives of five to seven years utilizing tiie MACRS mettiod. Expenditures for maintenance, repairs and other renewals are charged to expense.

Concentration of Credit R/s/c;

The Council's uninsured cash balances (demand deposits and certificates of deposit in excess of FDIC limit of $ 250,000) are zero for June 30,2010. These balances fluctuate greatiy during tiie year and can exceed tiiis $ 250,000 limit. The Council invests its endowment funds with the Central Louisiana Community Foundation. The Foundation is a member of the SPIC which insures losses from theft and firaud however, tiiere is no coverage against losses due to maritet fluctuations.

Compensated Absences:

Compensated absences Is immaterial and has not been recorded in tiie flnancial statements.

Unearned Revenue:

Uneamed revenue at June 30,2010 consists of unexpended grant fijnds held as of the end of the fiscal year as follows:

Louisiana Division of Arts Memberships La. Charities Trust CDW Grant Otiier

$ 21.007 5.550 3.250 9,689

178 $ 39,674

{Accounts and Grants Receivable

The following is a summary of accounts receivable:

Rapides Foundation Louisiana Division of Arts Other

Grants receivable is from tiie Louisiana Division of Arts

$

$

$

32.276 4.634

908 37,818

26,459

Ji.Oti-3hf J Property and Equipment

The following is a summary of property and equipment

Fumiture and Fixtures Fumiture and Fixtures-CSPAC Equipment Equlpment-Rapides Fdn. BIdg. Equipment-CSPAC

Less: Accumulated Depreciation

In December, 2005, tiie Arts Council received a donation of worits of art with an appraised value of $ 79,000. The collection has been capitalized but is not being depreciated.

$ 10,255 74,542 12,940

104.437 118,963 321,137

(319,322) $ 1,815

ffilfE4^ Temporarily Restricted Net Assets

Temporarily restricted net assets are available for the following purposes:

Decentralized Arts Funding Program Rapides Foundation City of Alexandria-

Coughlin-Saundere Perfomiing Arts Center Total temporarily restiicted net assets

$

$

52,500 48,937

45.000 146,437

Net assets were released from donor restiictions by incurring expenses satisfying the purpose specified by donore.

NOTE'S^ '• Donated Services

The Council receives a significant amount of donated sen/ices from volunteers. No amounts have been recognized in the statement of activities because the criteria for recognition under SFAS No. 116 have not been satisfled.

jNOTE^ i Performing Arts Center

The City of Alexandria, Rapides Foundation, and Coughlin-Saunders Foundation has built and operates a 615 seat arts theater in dovmtown Alexandria. The City of Alexandria is the owner and the Council manages the day-to-day operating sen/ices.

|NpfE'7V 1 Rapides Foundation Building Lease

On April 22,2003, the Council entered into a master lease with the Rapides Foundation for tiie occupancy of designated areas in the Rapides Foundation Building. As part ofthe lease agreement, the Council manages these specified areas ofthe building which includes several other arts related non-profit organization tenants.

INOTirsi, 1 Functional Allocation of Expenses

The costs of providing the various programs and other activities have been summarized on a fljnctional basis in tiie statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

JTKT M. y Board Designated Endowment

The Board of Directors established a board- designated endowment specifying that the contilbutions fi^m tiie charitable lead annuity tiust be put into an endowment and invested: that there would be no withdrawal of capital except upon approval of tiie Board; and that the earnings firom the endowment's investments be unrestricted but retained except upon approval ofthe Board, whose approval shall allow tiie earnings to be used fbr the operations ofthe Organization.

10

iN6TE;1d^J Charitable Lead Trust Split-Interest Agreement

During the flscal year ended June 30,2004, a donor established a trust with a local bank naming the Council as a recipient of distributions from the charitable lead annuity trust. Under the ternis of the split-interest agreement, the Council receives $ 10,000 annually for ten years upon which time the trust will be terminated, and tiie remaining trust assets are to be distributed to others. Generally accepted accounting principles require that the unconditional promise to give be recorded in tiie year that the trust was established, at the present value of futiJre benefits expected to be received by the Council recording the gift as a temporarily restiicted contiibution and as a contribution receivable. The Council elected not to follow generally accepted accounting principles witii respect to the contribution revenue-charitable lead tmst and to report the $ 10,000 contributions received annually as an unrestricted contribution in the statement of activities on the cash basis of accounting when the contribution is actually received and not record a contribution receivable in the statement of financial position for the remaining present value of future benefits expected.

[NOTE Hi,, t Investments

Long-temi investinents. canied at maritet value, at June 30,2010 consist of the fbllowing:

Cost Market Value

Muhjal Funds $ 44,848 $ 46,855

All investinents are endowment investments-Board designated.

Changes in Long-Tenn Investinents for year ended June 30,2010:

Beginning balance Contributions Distributions Dividends eamed Unrealized gains Management fees

$

$

32,094 10.000

1.400 3,606 (245)

46,855

lNOfE.42'•] Leasing Arrangements

Generally accepted accounting principles require that capital leases are to be capitalized as an asset and recorded as a liability for the ftjture lease payments. The Council elected to tieat this lease an an operating lease and expense tiie lease payments at the time they are paid instead of recording the asset, net of depreciation, recording the liability equal to the fijture minimum lease payments, and recording interest expense Imputed as flnancing charge.

11

Paul Dauzat, CPA MEMBER PCs D-,v \ ' )2ZQ MEMBER

AMERICAN INSnUiTE OF '^'^* ^ ° ^ '-^^^^ SOCIETY OF LOUISIANA CEitnFIED PUBLiC ACCOUNTANTS AlcXandiia, l j \ 7 I 3 1 5 aRTIFlED PUBLIC ACCOUNTANTS

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES

To the Board of Directors Arts Council of CentiBi Louisiana Alexandria, Louisiana

I have performed the procedures included in the Louisiana Govemment Audi t Guide and enumerated below, which were agreed to by the management of the Arts Council of Central Louisiana and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating management 's assertions about the Arts Council 's compliance with certain laws and regulations during the year ended June 30, 2010, included in the Louisiana Attestation Quest ionnaire. This agreed-upon procedures engagement was performed in accordance with standards established by the Amer ican Institute of Certified Public Accountants. The sufficiency of these procedures Is solely the responsibility of the specified users of the report. Consequentiy, I make no representation regarding the sufficiency of the procedures described below eiti ier for the purpose for which this report has been requested or for any other purpose.

Federa l , State, a n d L o c a l A w a r d s

1. Determine tiie amount of federal, state and local award expenditures for the fiscal year, by grant and grant year.

The Arts Council o f Centra Louisiana d id not have any federal award expenditures during the f iscal year.

2. For each federal, state, and local award, I randomly selected 6 disbursements fi^m each award administered during the period under examination, provided that no more than 30 disbursements would be selected.

3. For the items selected in procedure 2,1 traced the six disbursements to supporting documentat ion as to proper amount and payee.

/ examined support ing documentation for each o f t h e six selected disbursements and found that payment was for the proper amount and made to the correct payee.

4. For tiie i tems selected in procedure 2,1 determined if tiie six disbursements were property coded to the correct fund and general ledger account.

A l l disbursements were property coded to the correct fund and general ledger account

12

(318)443-3977 • Cell (318) 452-7376 • FAX (318) 445-2017

5. For the items selected in procedure 2,1 determined whether the six disbursements received approval from the proper individual.

Inspection ofthe documentation indicated approvals from the executive director.

6. For the items selected in procedure 2: For state and local awards, I determined whether the disbursements complied with the conti'actual agreement, relating to:

Activities allowed or unallowed:

/ reviewed the disbursements for types of services allowed or not allowed. All disbursements selected complied.

Eligibility:

Reporting:

/ reviewed the disbursements for eligibility requirements. All disbursements complied.

I reviewed the disbursements for reporting requirements. All disbursements complied.

7. For the programs selected for testing in Item (2) that had been closed out during the period of my review, I compared close-out reports, when required, with the entity's financial records.

The amounts reported on the close-out reports agreed to the entity's financial records.

Open Meetings

8. I examined evidence indicating that agendas for meetings recorded in the minute book were posted as an open meeting as required by R.S. 42:1 through 42:13 {open meetings law).

Management has asserted that such documents were properly posted.

Budget

9. For all grants exceeding five thousand dollars, I determined that each state or local agency was provided witii a comprehensive budget.

The Arts Council of Central Louisiana provided comprehens'tve budgets to the applicable state and local agencies for the programs.

Prior Comments and Recommendations

10.1 reviewed any prior-year comments or recommendations to determine the extent to which such matters were resolved.

777ere were no prior year comments or recommendations. 13

I was not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on management's assertions. Accordingly, I do not express such an opinion. Had I performed additional procedures, otiier matters might have come to my attention that would have been reported.

This report is intended solely for the use of management of the Arts Ck)uncil of Central La. and the Legislative Auditor, State of Louisiana, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited.

m^^:/— Paul Dauzat Certified Public Accountant December 15,2010

14

ARTS COUNCIL OF CENTRAL LOUISIANA

SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONNED COSTS

June 30, 2010

There were no findings for the year ended June 30, 2009.

15

LOUISIANA COMPLIANCE QUESTIONNA.. . (For Audit Engagements of Quasi-Public Entities) RECEIVED

LEGISLATIVE AUDITOR (Date Transmitted)

ZflllHARIB AH>28

PAUL DAUZAT. CPA P.O. BOX 12359 ALEXANDRIA, LA. 71315 (Auditor)

In connection with your audit of our financial statements as of June 30, 2010 and for the year then for the purpose of expressing an opinion as to the fair presentation of our financial statements in accordance with generally accepted accounting principles, to assess our system of internal control as a part of your audit, and to review our compliance with applicable laws and regulations, we confirm, to the best of our knowledge and belief, the following representations. These representations are based on the information available to us as of IZ- " S ' - ID • (date completed/date ofthe representations).

PARTI. AGENCY PROFILE

1 Name and address of the organization.

Arts Council of Central Louisiana 1101 4th Street, Suite 201-c Alexandria, Louisiana

2 List names, addresses, and telephone numbers of entity officials. (Include elected/appointed members ofthe governing board, chief executive and fiscal officer, and legal counsel.

See W/P GP-4 and GP-8

3 Period of time covered by this questionnaire. July 1, 2009 through June 30, 2010

4 The entity has been organized under the following provisions of the Louisiana Revised Statijte(s) and , if applicable, local resolutions/ordinances.

5 Briefiy describe the publicservices provided.

6 Expiration date of cun-ent elected/appointed officials' terms.

PART 11. Federal, State, and Local Awards

7 We have detailed for you the amount of Federal, State and Local award expenditures for the fiscal year, by grant and grant year.

Yes PC] No [ ]

LOUISiANA GOVERNIMENT AUDIT GUiDE

Revised 1/2000

PAGE 70

8 All transactions relating to Federal grants have been properly recorded within our accounting records and reported to the appropriate Federal grantor officials.

Yes [ X ] No [ ]

9 All transactions relating to State grants have been properly recorded within our accounting records and reported to the State grantor officials.

Yes [X ] No [ ]

10 All transactions relating to local grants have been properly recorded within our accounting records and reported to the appropriate local grantor officials.

Yes PC 1 No I 1

11 The reports filed with Federal agencies are properly supported by books of original enh7 and supporting documentation.

Yes [ X ] No [ ]

12 The reports filed with State agencies are properly supported by books of original entry and supporting documentation.

Yes [ X ] No [ ]

13 The reports filed with local agencies are properly supported by books of original entry and supporting documentation.

Yes [ X ] No [ ]

14 We have complied with all applicable compliance requirements of all Federal programs we administer, to include matters contained in the Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and matters contained in the grant awards.

Yes [ X ] No [ ]

15 We have compiled with all applicable specific requirements of all State programs we administer, to include matters contained in tiie grant awards.

Yes [ X I No [ 1

16 We have complied with all applicable specific requirements of all local programs we administer, to include matters contained in the grant awards.

Yes [ X ] No [ ]

17 We have provided you with all communications from grantors concerning noncompliance with or deficiencies in administering grant programs.

Yes [ X ] No [ ]

LOUiSIANA GOVERNMENT AUDIT GUiDE

Revised 1/2000

PAGE 71

PART 111. PUBLIC RECORDS

18 We are familiar with the Public Records Act and have made available to the public those records as required by LSA-RS 44:33.

YespC ] N o [ ]

PART IV. OPEN MEETINGS

19 Our meetings, as they relate to public funds, have been posted as an open meeting as required by LSA-RS 42:1 through 42:12 (the open meetings law).

Yes [ X ] No [ ]

PARTY. BUDGET

20 For each Federal grant, we have filed with the appropriate grantor agency a comprehensive budget for those grants that included the purpose and duration.

Yes [X ] N o [ I

21 For each grant received from the State, we have filed with appropriate grantor agency a comprehensive budget for those grants that included the purpose, duration, specific goals and objectives, and measures of performance.

Yes [ X ] No [ 1

22 For each local grant, we have filed with the appropriate grantor agency a comprehensive budget for those grants that included the purpose and duration.

Yes [ X ] No [ ]

The previous responses have been made to the best of our belief and knowledge.-

(ktL ^ : k j f ^ i ^ M J y ^ ^

Secretary { 1 " ^ " to Date

Treasurer / 2 - 5 - / ^ Date

President f Z - S - f ^ Date

LOUiSiANA GOVERNIMENT AUDiT GUIDE Revised 1/2000 PAGE 72