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SHREVEPORT GREEN

AUDITED FINANCLVL STATEMENTS

DECEMBER 31,2008 AND 2007

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

Release Date f /go/gf

SHREVEPORT GREEN

SHREVEPORT. LOUISIANA

TABLE OF CONTENTS

AUDITED FINANCIAL STATEMENTS

Page

Independent Auditor's Report 1

Statements of Fmancial Position 2

Statements of Activities 3

Statements of Cash Flows 4

Statements of Functional Expenses 5

Notes to Fmancial Statements 6-9

OTHER REPORTS

Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 10-11

Schedule of Findings and Questioned Costs 12-14

Schedule of Prior Year Findings 15

AUDTTED FINANCIAL STATEMENTS

H E A R D M C E L R O Y & VESTAL

LLP CERTiFrED PUBLIC ACCOUNTANTS

333 TEXAS STREET

15TH Fr.oon SHREVEPORT, LA 7 1 1 0 1

318 429-1525 318 429-2070 FAX-POST OKPICE Box 1607

SHREVEPORT, LA

71165-1607

PARTNERS SPENCER BEKNARD, JR., Q'A H.Q. GAHAGAK, JR., CPA, APC GEHAI.D W. HEIXSCOCK, JR., CPA, APC TIM B . NIELSEN, CPA, APC

JOHN W. DEAN, CPA, APC MARK D . ELOKCDGE, CPA ROBERT L. DEAN, CPA STEPHEN W. CRAIG, CPA

ROY E . PRESTWOOii, CPA

A. D. JOHNSON, JR., CPA

BENJAMIN C. WOODS, CPA/AIJV, CVA

ALICH V. FRAZIER, CPA

MELISSA D . MITCHAM. CPA, CFP

O F COUNSEL

GiLUERT R. SHANLEV, JR., CPA

C. CODY WHITE, J I . , CPA, AI'C

RON W . STEWART, CPA, APC

August 7. 2009

The Board of Directors Shrcveport Green Shreveport, Lx)uisiana

Independent Auditor's Report

We have audited the accompanying statements of financial position of Shreveport Green (a nonprofit organization) as of December 31, 2008 and 2007, and the related statements of activities, cash flows, and functional expenses for the years then ended. These financial statements arc the responsibility of the management of Shreveport Green. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America and 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 free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial 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 audits provide a reasonable basis for our opinion.

In our opinion, the fmancial statements referred lo above present fairly, in all material respects, the financial position of Shreveport Green as of December 31, 2008 and 2007, and the changes in its net assets and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated August 7, 2009. on our consideration of Shreveport Green's intemal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over fmancial 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.

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SHREVEPORT GREEN

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31. 2008 AND 2007

A S S E T S 2008 2007

Current assets: Cash and cash equivalents-Note 9 Grants receivable Contributions receivable Prepaid insurance

Total current assets

Fixed assets: Building Office furniture, equipment and vehicles Equipment-Neighborhood Program Less-accumulated depreciation

Book value of fixed assets

Total assets

LIABILITIES AND NET ASSETS

Current liabilities: Accounts payable and accrued expenses Notes payable-Note 10

Total current liabilities

Net assets-unrestricted

Total liabilities and net assets

250,329

75,391 1,100 8.519

335,339

202.506 159,476 10,418

(199.332) 173.068

508.4Q7

176,774 92,497 31,692 3,727

304,690

202,506 156.076 10,418

(179,546) 189,454

4?4,144

24,932

24,932

483,475

508.407

44,712 14.799 59,511

434.633

494 J 44

The accompanying notes are an integral part of the fmancial statements.

SHREVEPORT GREEN

STATEMENTS OF ACTIVmES

FOR THE YEARS ENDED DECEMBER 31. 2008 AND 2007

201,814 260,682

19,285 183,982 73,712 48,075

4,530 162.054

-3.600

205,696 51,369 10,000

188,432 173,363 44,030

3,143 251,870

16,050 3,674

2008 2007

Changes in Unrestricted Net Assets: Public support and other revenue:

Public support: City of Shreveport-Note 3 Contract for Services-Note 4 Grants-Neighborhood Program-Notes 3 and 5 Grants-Louisiana Serve Conmiission-Note 5 Other public support Memberships and contributions Tree Legacy program In-kind donations-Note 5 Fundraising income Other community support-Note 6

Total public support 957,734 947,627

Other revenue: Interest income 3,035 7,943 Miscellaneous income 17.786 21.276

Total other revenue 20.821 29.219

Total public support and other revenue 978,555 976,846

Expenses: Managen^ent and general Program services

Total expenses

Change in net assets

Net assets-beginning

Net assets-ending

172,984 756.729 929.713

48,842

434.633

483.475

222,919 778,111

1.001.030

(24,184)

458.817

434.633

The accompanying notes are an integral part of the financial statements.

SHREVEPORT GREEN

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31. 2008 AND 2007

2008 2007

Cash flows from operating activities: Change in net assets 48,842 (24,184) Adjustments to reconcile change in net assets to net

cash provided (used) by operating activities: Depreciation Noncash contributions Noncash expenses (Increase) decrease in:

Grants receivable Contributions receivable Prepaid insurance

Increase (decrease) in: Accounts payable

Net cash provided (used) by operating activities

Cash flows from financing activities: Payments on bank loan

Net cash (used) by financing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

Interest paid

19.786 (162.054) 158,654

17,106 30,592 (4,792)

(19.780) 88,354

(14,799)

(14,799^

73.555

176,774

250.329

45Q

20,246 (251,870) 228,625

6,963 (24.362)

(160)

29.317 (15.425)

(14.400) (14.400)

(29,825)

206,599

176.774

1.8W

The accompanying notes are an integral part of the fmancial statements.

SHREVEPORT GREEN

STATEMENTS OF FUNCTIONAL EXPENSES

FOR THE YEARS ENDED DECEMBER 31, 2008 AM) 2007

2008 Program Services

Accounting and legal Automobile Awards Awards luncheon Building and equipment CARE City clean-up Clean business program Depreciation Dues and subscriptions Education-schools Employee benefits-Note 8 Entertainment and meetings Fundraising Gifts/donations/contributions Grants-specific programs Insurance Interest Miscellaneous Neighborhood improvement Office expense Postage Printing Professional training Public relations Recycling Rent Repairs/maintenance/security Salaries Supplies Support costs Taxes Telephone Travel Trees Utilities

Total expenses

Management and

General Services

7,193

3,405 9,563

19.786

2,346

1,413

14,601 450

10,100

ShrevCorps Program

1.000 3.767

2,719

3,531

13.636 20,926

8.893 76.344

609 2,533 3,200 -

1,574 80.974

870 -

6,266 3,823 -

4.887

172.984

-185,018 8,278 -

272,643 1,276 2,815

21.538 987

3,793

.

627,773

Neighborhood Program

15,400 397

15 20

65

39,664 15

3,034

711

59.321

Other Specific

Programs-Note7

1,800

15

2,901 674

1,658 412 537 400

11,563 215

3,234

5,792 3.650 1.868 6,374

381

21.899

1,675 168

3.210 1.209

Total Expenses

9,993 3,767

15 3.405 9.563 2,719 2.901

674 19.786 1,658

412 6.414

400 1,413

40,599 36,139

450 22.242 76.364 5,792 3,650 1,868 7,048 2,533

188.599 8,278 1,574

415,180 2,161 2,815

32,513 4.978 7.714 1,209 4.887

69.635 929.713

The accompanying notes are an integral part of the fmancial statements.

Management and

General Services

4.787 --

2,056 11,130

---

20,246 1,330

35 2,346

992 16,650

163 -

11.039 1,869

19,620 -

5,508 -385

5,658 2.329 3,300

-2,742

89.877 1,995

-7.013 3.650

--

8.199

222.?!?.

ShrevCorps Program

1,000 1,539 1,100

--

3,283 ----

97 2.901

---

10,537 25.114

-24,323

166.844 ---

2,605 -

22,074 7.583

-270,097

2.307 8.955

20.632 1.138 3.258

-.

575.382

2007 Program Services

Neighborhood Program

1.800 --------------

25,223 1.200

---809 --595 ---255

39,664 --

3.034 -

1,365 --

_?3.945

Other Specific Programs-

Note 7

2,000 --

2.000 --

4.608 389 --

8,431 ----

66,593 --

3,510 --

2,543 3,289 5,040

-531 --

21.486 --

1,644 -

2,791 3,924

_

J28.77?,

Total Expenses

9,587 1,539 1,100 4.056

11,130 3.283 4,608

389 20.246

1,330 8,563 5,247

992 16.650

163 102.353 37,353

1,869 47,453

166,844 6,317 2,543 3,674

13.898 2,329

25,905 7,583 2.997

421.124 4,302 8,955

32.323 4.788 7,414 3,924 8,199

1.M1.03Q

SHREVEPORT GREEN

NOTES TO FINANCIAL STATEMENTS

DECrEMBER 31. 2008 AND 2007

1. Nature of Business Shreveport Green is a nonprofit organization whose purpose is the promotion of the public interest in the irr^rovement of the environment of the City of Shreveport. through the promotion of recycling, coordination of litter control programs and the promotion of beautification through landscaping.

2. Summary of Significant Accounting Policies

(a) Income taxes Shreveport Green qualifies as a tax-exempt organization under Section 501 (cX3) of the Intemal Revenue Code, and, therefore, has no provision for income taxes. The Organization elected in 2008 to defer until 2009 the provisions of FASB Interpretation 48, '̂Accounting for Uncertainty in Income Taxes." The Organization has not adopted any

uncertain tax positions with respect to any amounts reported in its 2008 and 2007 fmancial statements.

(b) Depreciation Fixed assets are stated at cost, less accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets.

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

(d) Donated materials Donated materials are recorded in the financial statements at their estimated fair values at the date of receipt. A number of volunteers have donated their tinoe to assist in the operations and improvements of the organization. In accordance widi requirements of Statement of Financial Accounting Standards No. 116. no amounts have been reflected in the financial statements for those services.

(e) Financial statement presentation Shreveport Green adopted Statements of Financial Accounting Standards No. 116, "Accounting for Contributions Received and Contributions Made." and No. 117, "Financial Statements for Not-for-Profit (Drganizations," which establish standards of basic accounting and reporting for not-for-profit organizations.

Under these provisions, net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the organization and changes therein are classified and reported as follows:

Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. Conuibutions whose restrictions are met in the same period as received are recorded as unrestricted.

2. Summary of Significant Accounting Policies (Continued)

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

Permanently restricted net assets - Net assets subject to donor-imposed stipulations that they be maintained permanentiy by Shreveport Green. Generally, the donors of these assets permit the organization to use all or part of the income earned on related investments for general or specific purposes.

As of December 31, 2008 and 2007, there were no temporarily or permanentiy restricted net assets.

Contractual grant revenue is reported as unrestricted support due to the restrictions placed on those funds being met in the same reporting period as the revenue is earned.

(f) Cash and cash equivalents For purposes of the statement of cash flows, Shreveport Green considers all highly liquid investments purchased with original maturities of three months or less to be cash and cash equivalents.

(g) Promises to give Contributions are recognized when the donor makes a promise to give to the organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions arc recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restriction. When a resuiction expires, temporarily restricted net assets are reclassified to unrestricted net assets.

(h) Estimates The preparation of financial staten>ents in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

3. Cooperative Endeavor Agreement Shreveport Green received $221,099 and $199,280 in 2008 and 2007, respectively, from the City of Shrcveport for the purpose of improving the appearance of the City tiirough education and programs to facilitate clean-up. beautification and recycling efforts.

4. Contracts for Services Shreveport Green received $27,375 and $27,169 in 2008 and 2007. respectively, from the Caddo Parish Commission to perform community related projects to benefit the parish of Caddo. The City of Shreveport paid $25.0(X) and $24,200 in 2008 and 2(X)7. respectively, for clean-up and maintenance of certain highway intersections. During 2008, the City of Shreveport also paid $197,907 to Shreveport Green for the assembly and distribution of over 65,CXX) rollout carts for the cities curbside recycling program. Shreveport Green also received an additional $10.0(X) in 2008 for waste collection services.

Grants Received Shrcveport Green received $183,982 and $188,432 in 2008 and 2007, respectively, from the Louisiana Serve Commission for the continuation of a youth and conservation corps program called ShrevCorps. Shreveport Green received in-kind contributions of $162,054 and $251,870 in 2008 and 2007, respectively.

Other Community Support Shreveport Crreen received contributions from the general public through community wide clean-up. recycling and beautification efforts in 2008 and 2(X)7:

2008 2007

Telephone book recycling 3.600 3.674

Other Specific Programs Shreveport Green conducted specific city beautification, litter control and tree planting projects during the years ended December 31, 2(K)8 and 2007. Expenses for these programs are as follows:

2008 2007

Anti-litter materials and supplies Arbor Day Community garden Green Christmas Greenhouse Growing Up Green Camp Household Hazardhouse Waste School Lab Hurricane recovery Landlord training Mayor's MLK Blast Movies and Moonbeams National Global Youth Service Day Neighborhood improvement Neighborwoods Plantings Plant sale Ramp Up Louisiana Scholarships Telephone Book Recycling Think Green Volunteer appreciation and recruitment Other

Employees' Retirement Plan Shreveport Green established a simple IRA plan as of March 2(KX) for its employees. An employee is eligible to participate after one year of employment, earns a minimum salary of $5,000 and is at least 21 years old. Participation is voluntary and the employee may contribute up to $10,(XX) per year. Shreveport Green matches the employee's contribution up to 3% of his or her annual compensation or $6,000, whichever is less. The contribution charged to expense for the years ended December 31, 2008 and 2007 was $6,414 and $5,247, respectively.

12,267 1,566 1,733 1.940 5,919 6,345 3,708

--

1.543 ----

2,443 1.379 2,933

---

3.133 24,726 69.635

20.551 -

25.000 ----

9,416 3,441 1,375

790 5,436 5.981

411 --

6,094 3,000 2.000

10.000 -

35,284 128,779

9. Concentration of Risk At December 31, 2008 and 2007, Shreveport Green had cash deposits in excess of federally insured limits of approximately $-0- and $41,348, respectively.

10, Bank Note Payable At December 31. 2002, Shreveport Green had a bank note payable totaling $103,300 secured by a mortgage on the office building. The note was payable on demand, or if no demand was made then monthly payments were due of $1,506 through May 25, 2016. The interest rate varied 2.24 percentage points over the United States Dollar Swap Rate with a rate of 7,76% as of December 31, 2002.

Effective April 2. 2003. the note was refinanced at the Wall Street Journal Prime Rate (7.25% at December 31,2(X)7). The new note was also payable on demand and monthly payments were due of $1,2(X) plus interest. The note was paid in full during October 2008.

OTHER REPORTS

H E A R D M C E L R O Y &c V E S T A L

LLP CERTIFIED PUBUC ACCOUNTANTS

333 TEXAS STREET

1 5TH FLOOR

SHREVEPORT, LA 71101

318 429-1525 318 429-2070 FAX POST OFFICE BOX 1 6 0 7

SHREVEPORT, LA

71165-1607

PARTNERS SPK.\CKR BEKNAHD, JR.. CI'A ?LQ. GAHAGAN, JR., CPA, APC GERALD W. HEDGCOCK, JR., O'A, APC TIM B . NIELSEN, CPA, APC JOHN W . DFJ\N, CPA, APC MARK D . ELDREDGE, CPA ROBEHT L. DEAN, CPA STEPHEN W. CRAKJ. CPA

ROY E. PRESTWOOD, CPA

A. D. JOHNSON, JR., CPA

BENJAMIN C . WOODS, CPA/AUV, CVA

AucE V. FRAZIER, CPA MELL'MA D . MITCHAM, CPA, CFP

OH COUNSEL

GILBERT R. SHANLIH, JR., CPA

C. CODY WHrrE, JR., CPA, APC RON W . STEWART, Q'A, ,\PC

August 7, 2009

The Board of Directors Shreveport Green Shreveport, Louisiana

Report on Intemal Control Over Financial Reportine and on Compiiapce and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards

We have audited the financial statements of Shreveport Green as of and for the year ended December 31, 2008, and have issued our report thereon dated August 7, 2009. 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 Staruiards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Shreveport Green's intemal control over financial 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 Organization's internal control over fmancial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization*s intemal control over financial reporting.

Our consideration of intemal control over fmancial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in intemal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, (o prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, hat adversely affects the entity's ability to initiate, authorize, record, process or report fmancial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity*s financial statements that is more than inconsequential will not be prevented or detected by the entity*s intemal control. We consider deficiencies 2008-01 through 2008-02 described in the accompanying schedule of findings and responses to be significant deficiencies in intemal control over financial reporting.

HVIV A PROFLSSIONAL SERVICES FIRM SHREVEPORT • WF.ST MONROF

hmvflShmvcpa.com E-MAII. WTVTV.hmvcpa.cnni WI;H ADDRKSS

10

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's intemal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in intemal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that item 2008-01 of the significant deficiencies described above is a material weakness.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Shreveport Green'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 inaterial 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 two instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and responses as items 2008-03 and 2008-04.

This report is intended solely for the infonnation and use of the Board of Directors and Management of Shreveport Green and is not intended to be and should not be used by anyone other than these specified parties.

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11

SHREVEPORT GREEN

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED DECEMBER 31, 2008

L Summary of Audit Results

1. The auditor's report expresses an unqualified opinion on the financial statements of Shreveport Green.

2. Two significant deficiencies, one of which is a material weakness, are reported.

3. Two instances of noncompliance were disclosed during the audit.

4. Shreveport Green is not subject to a Federal Single audit for 2008.

U. Findings - Fmancial Statement Audit

2008-01 Material Weakness

Condition: As is common in small operations, management has chosen to engage the auditor to propose certain year-end adjusting journal entries and to prepare the Organization's annual financial statements. Consistent with this decision, intemal controls over the preparation of year-end adjusting entries and annual fmancial statements, complete with notes, in accordance with generally accepted accounting principles have not been established, nor has management demonstrated an ability to perform these functions in house.

Criteria: Pursuant to the requirements of Statement on Auditing Standards No. 112, "Communicating Intemal Control Related Matters Identified in an Audit," this condition represents a control deficiency that is also considered to be a material weakness in intemal controls.

Effect: The Organization does not have the resources (i.e. intemal controls and expertise) to prepare the annual financial statements, complete with notes and free of material misstatement, m accoidance with generally acceptable accounting principles. The auditor prepared the annual financial statements.

Recommendation: Whether or not it would be cost effective to cure a control deficiency is not a factor in applying SAS 112's reporting requirements. Because prudent management requires that the potential benefit from an intemal control must exceed its cost, it may not be practical to correct all deficiencies an auditor reports under SAS 112. In this case, we do not believe that curing the material weakness described would be cost effective or practical and accordingly, do not believe any corrective action is necessary.

Management Response: As noted above, no recommendation is made and no corrective action is necessary.

12

2008-02 Significant Deficiency

Condition: There was a lack of reconciliation of certain grant revenues and expenses on a timely basis during the fiscal year. This created a delay in proper rqwrting to the granting authority and improper recording of the amounts in the financial statements.

Criteria: Reconciliation of grant funds should be performed monthly so that funds are accounted for properly and so that reporting guidelines of the grantor are adhered to.

Effect: Client personnel and auditor time was necessary to review and adjust the 2008 books to properly record grant funds, which slowed the audit process.

Recommendation: We recommend that all grant revenue and expense records be monitored and reconciled on a monthly basis so that proper accounting and reporting may take place and so that any unused grant funds are returned to the grantor as required.

Management Response: We agree with the recommendation and will perform these functions on a timely basis in the future.

2008-03 Noncompliance

Condition: The engagement was not completed and transmitted to the Louisiana Legislative Auditor's office by June 30, 2009.

Criteria: Louisiana Revised Statute 24:513 and the Louisiana Governmental Audit Guide require all engagements to be completed and transmitted to the legislative auditor within six months of the close of the entity's fiscal year.

Effect: Client personnel and auditor time was necessary to review and adjust the 2008 due to conditions detailed in 2008-01.

Recommendation: We recommend that all grant revenue and expense records be monitored and reconciled on a monthly basis so that tinwly reporting may take place.

Management Response: We agree with the recommendation and will ensure that reports are filed timely in the future.

2008-04 Noncompliance

Condition: The client did not file proper reports with or retum unused funds to the granting authority by the applicable deadline. The significant deficiency explained at 2008-02 caused these delays.

The client had retained funds that were required to be returned to the grantor. Upon notification, the grantor agreed to allow the client to keep the funds and expend them for the original purpose of the grant. The grantor also extended the reporting deadline.

Criteria: The requirements of the grant agreement were violated in regards to reporting deadlines and the retum of unused funds.

Effect: Client personnel and auditor time was necessary to review and adjust the 2008 books to properly record grant funds as well as communicate with the granting authority, all of which slowed the audit process.

13

Recommendation: We recommend that all grant revenue and expense records be monitored and reconciled on a monthly basis so that proper accounting and reporting may take place and so that any unused grant funds are returned to the grantor by the deadlines outlined in the grant agreement.

Management Response: We agree with the recommendation and will perform these functions on a timely basis in the future.

14

SHREVEPORT GREEN

SCHEDULE OF PRIOR YEAR FINDINGS

FOR THE YEAR ENDED DECEMBER 31. 2008

No matters were reported for the prior year.

15