Lafayette Habitat For Humanity, Inc....YEAR ENDED JUNE 30,2015 . LAFAYETTE HABITAT FOR HUMANITY,...

LAFAYETTE HABITAT FOR HUMANITY, INC.

FINANCIAL STATEMENTS

YEAR ENDED JUNE 30,2015


CONTENTS

INDEPENDENT AUDITORS' REPORT 2-3

FINANCIAL STATEMENTS Statement of Financial Position 4 Statement of Activities 5 Statement of Cash Flows 6 Notes to Financial Statements 7-14

ADDITIONAL INFORMATION Schedule of Functional Expenses 15 Independent Auditors' Report on Internal Control Over

Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Prepared in Accordance with Government Auditing Standards 16-17

Schedule of Findings and Questioned Costs 18 Summary Schedule of Prior Year Findings 19

WRIGHT, MOORE, DEHART, DUPUIS & HUTCHINSON, L.L.C. Certified Public Accountants

iOO Petroleum Drive, 70508 P.O. Box 80569 • Lafayette, Louisiana 70598-0569

(337) 232-3637 . Fax (337) 235-8557 wmv. wmddh. com

JOHN W. WRIGHT, CPA *

JAMES H. DUPUIS, CPA, CEP •>

JAN H. COWEN, CPA »

LANCE E. CRAPPELL, CPA, CGMA *

MICAH R. VIDRINE, CPA *

TRAVIS M. BRINSKO, CPA *

RICK L. STUTES, CPA, CVA/ABV, APA, CFF"

CHRISTINE R. DUNN, CPA**

DAMIAN H. SPIESS, CPA, CFP **

JOAN MARTIN, CPA, CVA, CFF, DABFA**

BRIDGET B. TILLEV, CPA, MT**

INDEPENDENT AUDITORS' REPORT

" A PROFESSIONAL CORPORATION ** A LIMITED LIABILITY COMPANY

M. TROY MOORE, CPA'^ MICHAEL G. DEHART, CPA * + JOE D. HUTCHINSON, CPA * +

+RETIRED '^DECEASED

STEPHANIE A. BLANK, CPA

ANDRE' D. BROUSSARD, CPA

ROBERT T. DUCHARME, 11, CPA

STEFAN HAWKINS, CPA

KAYLEEN FISCHER, CPA

MARY PATRICIA KEELEV, CPA

WENDY ORTEGO, CPA, CVA

ROBIN G. STOCKTON, CPA

TINA 0. VIATOR, CPA

To the Board of Directors of Lafayette Habitat for Humanity, Inc. Lafayette, Louisiana

We have audited the accompanying financial statements of Lafayette Habitat for Humanity, Inc. (a nonprofit organization), which comprise the statement of financial position as of June 30, 2015, and the related statements of activities, and cash flows 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 accounting principles generally accepted in the United States of America; this includes 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 standards 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 internal control relevant to the organization'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 organization's internal control. Accordingly, we express no

Unless otherwise expressly indicated, any tax advice contained in this communication, or attachments are not intended for use and cannot be used: (i) to avoid any penalties under the Internal Revenue Code; or (ii) to promote, market or recommend to another pajiy the tax consequences of any matter addressed therein. This communication (and/or the documents accompanying it) may contain confidential information belonging to the sender, which is protected by the Accountant-Client privilege. The information is indeed only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any use, disclosure, copying, distribution, or the taking of any action in reliance on the contents of this information is strictly prohibited. If you have received this communication in error, please notify us by telephone immediately.

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 financial position of Lafayette Habitat for Humanity, Inc. as of June 30, 2015, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matter

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of fiinctional expenses on page 14 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2015, on our consideration of Lafayette Habitat for Humanity, Inc.'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 Lafayette Habitat for Humanity, Inc.'s internal control over financial reporting and compliance.

'Wrigfit, Moore, (D^art, (Dupuis eSClfutcfiinson, LLC

WRIGHT, MOORE, DEHART, DUPUIS & HUTCHINSON, L.L.C.

Certified Public Accountants

December 22,2015 Lafayette, Louisiana


STATEMENT OF FINANCIAL POSITION JUNE 30,2015

ASSETS CURRENT ASSETS

Cash and Cash Equivalents Escrow Deposits Non-Interest Bearing Mortgages Receivable Less: Discount for Interest Rates Prepaid Expenses Inventories Escrow Receivable Other Current Assets

Total Current Assets

PROPERTY AND EQUIPMENT (NET)

OTHER ASSETS Non-Interest Bearing Mortgages Receivable - Long-Term Less: Discount for Interest Rates

Total Other Assets

833,203 4,283

361,833 (102,867)

26,957 712,811 13,250 10,382

1,859,852

295,214

2,284,643 (960,209) 1,324,434

TOTAL ASSETS 3.479.500

LIABILITIES AND NET ASSETS CURRENT LIABILITIES

Accounts Payable Accrued Payroll and Related Liabilities Line of Credit Current Maturities of Long-Term Debt Other Current Liabilities

Total Current Liabilities

58,159 3,575

170,000 59,099 2,242

293,075

LONG-TERM LIABILITIES Long-Term Debt (Less Current Maturities)

Total Long-Term Liabilities

TOTAL LIABILITIES

658,451 658,451

951,526

NET ASSETS Unrestricted Temporarily Restricted

Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

2,527,974

2,527,974

3,479,500

The Accompanying Notes are an Integral Part of These Statements. -4-


PUBLIC SUPPORT Contributions and Grants

Cash Services and Materials

Total Public Support

REVENUES Sales to Homeowners Amortization of Mortgage Discounts Gain on Sale of Mortgages Restore Revenues Other Income

Total Revenues

NET ASSETS RELEASED FROM RESTRICTIONS Restrictions Satisfied by Payments

TOTAL PUBLIC SUPPORT, REVENUES AND NET ASSETS RELEASED FROM RESTRICTIONS

EXPENSES AND LOSSES Program Services

Construction Restore

Supporting Services Management and General

Total Expenses

INCREASE (DECREASE) IN NET ASSETS

NET ASSETS AT BEGINNING OF YEAR

NET ASSETS AT END OF YEAR

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2015

Temporarily Unrestricted Restricted Total

$ 418,602 $ 10,000 $ 428,602 103,626 - 103,626 522,228 10,000 532,228

713,702 713,702 479,810 - 479,810 25,144 - 25,144

261,483 - 261,483 8,503 - 8,503

1,488,642 - 1,488,642

10,000 (10,000)

2,020,870 2,020,870

1,168,709 1,168,709 242,097 - 242,097

603,425 _ 603,425 2,014,231 - 2,014,231

6,639 (10,000) (3,361)

2,521,335 10,000 2,531,335

$ 2,527,974 $ - $ 2,527,974



STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30,2015

CASH FLOWS FROM OPERATING ACTIVITIES Decrease in Net Assets Adjustments to Reconcile Change in Net Assets to Net Cash Flows From Operating Activities:

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS, END OF YEAR

(3,361)

Depreciation 8,061 Transfers to Homeowners Net of Discounts (650,269) Amortization of Mortgage Discounts (479,810) Changes in Assets and Liabilities:

Escrow Deposits (2,763) Grants and Contributions Receivable 128,077 Prepaid Insurance (16,295) Inventories 173,526 Escrow Receivable (13,250) Other Current Assets (8,461) Technical Overdraft in Cash Account (4,625) Accounts Payable 29,503 Accrued Payroll and Related Liabilities (4,406) Other Current Liabilities (6,617)

Net Cash Used In Operating Activities (850,690)

CASH FLOWS FROM INVESTING ACTIVITIES Collections on Mortgage Receivables 1,479,153 Purchase of Fixed Assets (282,424)

Net Cash Provided By Investing Activities 1,196,729

CASH FLOWS F ROM FINANCING ACTIVITIES Advance on Line of Credit 170,000 Proceeds from Issuance of Debt 261,000 Repayment of Long-Term Debt (52,562)

Net Cash Provided By Financing Activities 378,438

NET INCREASE IN CASH AND CASH EQUIVALENTS 724,477

108,726

833,203



NOTES TO FINANCIAL STATEMENTS JUNE 30,2015

(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Form of Operations - Lafayette Habitat for Humanity, Inc. (Habitat) (a non-profit organization) was incorporated in 1992, with offices in Lafayette, Louisiana. Habitat is an affiliate of Habitat for Humanity International, Inc. (Habitat International), a non-denominational. Christian, nonprofit organization whose purpose is to create decent, affordable housing for those in need. Although Habitat International assists with information resources, training, publications, prayer support and in other ways. Habitat is primarily and directly responsible for its own operations.

As an extension of its primary purpose. Habitat operates a ReStore in Lafayette, Louisiana. The Restore obtains donated materials, and sells the materials at a significant discount from retail prices. Proceeds from the sales of donated items are used to support the programs which carry out the primary purpose of the organization.

Revenue Recognition - Contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.

Transfers to homeowners are recorded when a home is occupied and title is transferred. The transfer is recorded at the gross amount of payments to be received over the lives of the mortgages. Non-interest bearing mortgages have been discounted, ranging from 7.39% to 8.78%, based upon prevailing market rates at the inception of the mortgages.

Habitat also executes a second or third mortgage, depending on the applicability of existing programs, with homeowners upon transfer of the home. The amount of these mortgages is approximately equal to the difference between the sales price and the fair market value of the home. These mortgages bear no interest, and the homeowner is discharged from his/her annual payment so long as he/she is not in default on the first mortgage. No amount is included in the financial statements for these mortgages as collection is contingent upon future events and is generally unexpected and imintended.

Income Taxes - The Organization is exempt from federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code. Income determined to be unrelated business income is taxable.

As of June 30, 2015, the tax years that remain subject to examination by taxing authorities begin with 2012. Tax returns for 2012, 2013, and 2014 remain open to examination by taxing authorities. Management believes that all positions taken in those returns would be sustained if examined by taxing authorities.

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(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Escrow Deposits - Habitat currently services the mortgages on the homes it sells. Payments received from families for their elosing costs or escrow items are segregated into a non-interest bearing cash account. Escrow balances are maintained for funds paid to satisfy future insuranee and property tax obligations. The current balance in the escrow account is $4,283, with related eserow liabilities totaling $0. At June 30, 2015, there is an escrow receivable of $13,250 representing disbursements for escrow related items for which the Organization has not yet received from the homeowners.

Inventories - Inventories consist of occupied homes not closed and homes under construetion valued at eosts ineurred, exclusive of eontributed labor. The following is a summary of home building activity for the year ended June 30,2015:

Number Costs Occupied homes not closed and homes under

eonstruction, Jime 30,2014 15 $ 886,337 New homes started 6 200,533 Homes transferred (9) (775,257) Work done to existing homes 239,800

Repossessions/Dations 2 161.398 Geeupied homes not elosed and homes under

construction, June 30, 2015 14 $ 712.811

Restore inventory mostly eonsists of donated building materials available for sale. The value of the items received for resale is not aecurately known, thus Habitat reeognizes the value of the item when it is sold, and ehooses not to carry the inventory of donated items in the finaneial statements. The value of the donated items is recognized at the time of sale, with no corresponding cost of sale recognized.

Property and Equipment - Property and equipment are valued at historical cost for assets purchased and at fair market value at the time of donation for donated assets. Habitat capitalizes additions of property and equipment that exceed $2,500. The equipment is depreciated on a straight-line basis over the assets useful lives. Depreciation expense was $8,061 for the year ended June 30, 2015.

Contributions - Contributions reeeived are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and nature of any donor restrietions. Support that is not restricted by the donor is reported as an increase in unrestrieted net assets. All other donor restricted support is reported as an inerease in temporarily or permanently restricted net assets, depending on the nature of the restrietion. When a restriction expires (that is when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restrieted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. Restricted eontributions whose restrietions are met in the same reporting period are recorded as unrestricted contributions.

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(A) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Contributed Services - Volunteers provide substantial services to Habitat. Services provided by volunteers building homes are measured either by the fair value of the services received, or the increase in value of the home, whichever is more objectively determinable. During the year ended June 30,2015, $103,626 in services and donated materials were recognized on homes transferred.

Cash and Cash Equivalents - For purposes of the Statement of Cash Flows, the Organization considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Reserved Cash - The Organization services the mortgages on homes it sells. Included in cash and cash equivalents are amounts received from homeowners for insurance and property taxes. Reserved cash for escrow deposits as of June 30,2015 was $4,283.

Use of Estimates - The preparation of financial statements in conformity with generally accepted accoxmting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Advertising - The cost of advertising is expensed as incurred. Advertising expense for the year ended Jtme 30, 2015 was $3,627.

(B) MORTGAGES RECEIVABLE

At June 30, 2015, there were 63 1st mortgages outstanding totaling $2,646,476. Mortgage payments are due on the first of each month and considered late if not received by the 16"' of the month. All reasonable efforts are made by Habitat to bring a mortgage back into good standing if it becomes delinquent. If those efforts are unsuccessful. Habitat may initiate foreclosure proceedings to be handled by an attorney. Habitat allows the homeowner to relinquish the home back to Habitat with a deed in lieu of foreclosure. Sinee the fair market value of the houses exceeds the related mortgage balance, no allowance for uncollectible loans has been recorded.

The following schedule summarized the payment status of the mortgage loans at June 30,2015:

Number Of Loans Loan Amoxmt

Current 23 $ 775,175 30 days past due 2 257,264 31-60 days past due 5 356,490 More than 60 days past due ^ 1.257.547

Total 62 $ 2.646.476

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(B) MORTGAGES RECEIVABLE - continued

Maturities of mortgages receivable are as follows:

Years Ended June 30, 2016 $ 361,833 2017 157,014 2018 157,374 2019 155,996 2020 151,700 Thereafter 1.662.559

Total $2.646.476

(C) MORTGAGE RECEIVABLE SOLD WITH RECOURSE

During the current year, the Organization entered into an agreement with a financial institution to sell several mortgages at 85% of the total outstanding mortgage value at the time of the sale. For financial statement purposes, these loans were originally presented as a discounted value as described in Note A. The sale resulted in a net gain, after recognition of the discounted values on these loans, of $25,144, which is included on Statement of Activities. As part of this agreement, the Organization administers and services the related mortgage loans that were sold. As part of this agreement, the Organization administers and services the related mortgage loans that were sold. These mortgages were sold with recourse. Proceeds received from sales of such mortgages during the year totaled $1,140,522. The outstanding balance of recourse loans at June 30, 2015 was approximately $1,128,275. In the event of default, the Organization will buy back these mortgages at the full repurchase price and the mortgage will revert back to the Organization.

(D) PROPERTY AND EQUIPMENT

A summary of property and equipment is as follows:

Building $279,064 Trucks 76,500 Tractor 24,295 Construction in Progress 3.359

383,217 Less: Accumulated Depreciation 188.0041 Net Property and Equipment $295.214

(E) LINE OF CREDIT

The Organization has a $300,000 line of credit with a bank that bears interest at 4.25% and is secured by a UCC on select mortgages. The line matures on July 16, 2015. The balance due at June 30,2015 was $170,000.

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(F) LONG-TERM DEBT

Long-term debt consisted of the following as of June 30, 2015:

Note payable to bank due October 18,2023, payable in monthly installments of $5,245 bearing interest at 3.75 % secured by deposit accounts. $ 448,755

Note payable to bank due December 30,2019, payable in 59 monthly installments of $1,590 and one final payment of remaining balance bearing interest at 4.00% 256,678 secured by real estate.

Note payable to bank due December 1, 2019, payable in monthly installments of $67, bearing no interest, and secured by the pledge mortgage receivable. 3,599

Note payable to bank due November 1,2018, payable in monthly installments of $67 bearing no interest, and secured by the pledge mortgage receivable. 2,653

Note payable to bank due December 1, 2018, payable in monthly installments of $67 bearing no interest, and secured by the pledge mortgage receivable. 2,599

Note payable to bank due August 1, 2019, payable in monthly installments of $67 bearing no interest, and secured by the pledge mortgage receivable. 3.266

717,550 Less: Current Maturities (59.099) Total Long-Term Debt $ 658.451

Maturities of long-term debt are as follows:

Years Ended June 30, 2016 $ 59,099 2017 61,254 2018 63,494 2019 65,136 2020 273,040 Thereafter 195.527

Total $ 717.550

- 11 -



(G) CASH FLOW DISCLOSURES

Interest paid for the year ended June 30,2015 totaled $22,023.

Non-eash investing and financing transactions for the year ended June 30, 2015 consisted of the following:

Repossession of three homes totaling $156,924.

Issuance of non-interest bearing mortgage loans on home sales as follows:

Non-interest bearing mortgage loans issued $ 255,000 Discount of non-interest bearing mortgage loans (259.9011

Transfers to homeowners subject to non-interest mortgage loans, net of discoimt $ 161.915

(H) CONCENTRATION OF CREDIT RISK

Habitat builds and rehabilitates houses in the Lafayette and surrounding areas. As a result, all of the mortgages receivable from homeowners are concentrated as to geographic risk. Also, all houses built are transferred to low-income families, which can represent a credit risk.

Habitat maintains cheeking and savings accounts with four institutions in Lafayette, Louisiana. The accounts were insured by Federal Deposit Insurance Corporation (FDIC) up to $250,000. At June 30,2015, Habitat had an uninsured cash balance of $536,769 at one institution.

(I) OPERATING LEASE

In December 2012, the Organization entered into a monthly operating lease for office space in Lafayette, Louisiana. Fee for the use of this space is $500 monthly.

In April 2014, the Organization renewed its operating lease for retail space in Lafayette, Louisiana. The renewed agreement commenced on April 1, 2014 and terminated March 31, 2015, at which time was changed to a month to month lease. Fee for the use of this space is $2,166 per month. The lease is currently month to month.

-12-



(I) OPERATING LEASE - continued

In April 2015, the Organization entered into an operating lease for retail space in Lafayette, Louisiana. The initial term of the lease is for five years commencing on the effective date and ending on April 7, 2020. The Organization has three consecutive options to extend the term for period of five years each. Fee for the use of this space is $9,932 per month.

Future Lease Obligation:

2016 $119,184 2017 119,184 2018 119,184 2019 119,184 2020 99.320 Total $576.056

Rent expense related to this lease for the year ended June 30, 2015 was $32,672.

(J) FINANCIAL INSTRUMENTS

The fair values of Habitat's financial instruments are as follows:

Cash and short-term investments - The carrying amount approximates fair value because of the short maturities of those investments.

Bank loans payable - Fair value approximates carrying value since stated rates are similar to rates currently available to the Organization for debt with similar terms and remaining maturities.

(K) NGN COMPLIANCE WITH GRANTOR RESTRICTIONS

Financial awards firom federal governmental entities in the form of grants are subject to a fifteen year recapture period if the Organization is not in compliance with grant terms. Such violations could result in claims against the Organization for noncompliance with grantor restrictions. No provision has been made for any liabilities that may arise from such violations since the occurrence is not probable.

(L) COMPENSATION, BENEFITS AND OTHER PAYMENTS TO DIRECTOR

A detail of compensation, benefits, and other payments paid to the Executive Director, Melinda Taylor for the year ended June 30,2015:

Purpose Amount Salary $72,500 Benefits-insurance $11,056

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(M) SUBSEQUENT EVENTS

The Organization has evaluated subsequent events through December 22, 2015, the date which the financial statements were available to be issued.

-14-


SCHEDULE OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30, 2015

PROGRAM SERVICES SUPPORTING SERVICES

CONSTRUCTION RESTORE MANAGEMENT AND GENERAL TOTAL

Compensation and Related Expenses Salaries $ 188,785 $ 113,014 $ 127,008 $ 428,807 Employee Benefits

Medical 25,412 18,729 29,371 73,512 Payroll Taxes 8,658 5,254 18,892 32,804

222,855 136,997 175,271 535,123

Building Materials and Supplies 802,609 - - 802,609 Administrative Cost 453 5,905 2,167 8,525 Advertising Cost 80 3,390 157 3,627 Contract Labor 27,339 2,260 38,919 68,518 Depreciation 2,789 4,690 582 8,061 Food and Lodging 672 227 5,209 6,108 Fuel 5,204 6,916 193 12,313 Insurance 57,439 4,997 5,759 68,195 Interest Expense 4,145 15 22,024 26,184 Membership Fees 658 2,367 12,688 15,713 Miscellaneous 5,324 6,774 16,130 28,228 Mortgage Discount - - 259,901 259,901

Office Expense 8,671 2,062 9,806 20,539

Postage and Printing 1,167 854 2,030 4,051 Professional Services 8,015 2,599 12,469 23,083

Rent - 27,612 5,060 32,672

Repairs and Maintenance 12,171 163 6,834 19,168

Restore Relocation Expense - 30,880 - 30,880

Supplies and Tools 400 - - 400

Taxes - - 164 164

Technology 104 31 2,392 2,527

Telephone 2,409 2,434 10,078 14,921

Training 1,964 250 3,966 6,180

Travel 1,186 145 1,567 2,898

Utilities 3,055 529 10,059 13,643

TOTAL $ 1,168,709 $ 242,097 $ 603,425 $2,014,231

See Independent Auditors' Report. -15-

WRIGHT, MOORE, DEHART, DUPUIS & HUTCHINSON, L.L.C. Certified Public Accountants

iOO Petroleum Drive, 70508 P.O. Box 80569 • Lafayette, Louisiana 70598-0569

(337) 232-3637 . Fax (337) 235-8557 wh-itr. wmddh.com

JOHN W. WRIGHT, CPA *

JAMES H. DUPUIS, CPA, CFP *

JAN H. COWEN, CPA *

LANCE E. CRAPPELL, CPA, CGMA *

MICAH R. VIDRINE, CPA *

TRAVIS M. BRINSKO, CPA *

RICK L. STUTES, CPA, CVA/ABV, APA, CFF*

CHRISTINE R. DUNN, CPA**

DAMIAN H. SPIESS, CPA, CFP **

JOAN MARTIN, CPA, CVA, CFF, DABFA**

BRIDGET B. TILLEV, CPA, MT**

* A PROFESSIONAL CORPORATION •* A LIMITED LUBILITV COMPANY

M. TROY MOORE, CPA'' MICHAEL G. DEHART, CPA * + JOE D. HUTCHINSON, CPA * +

+RETIRED '^DECEASED

STEPHANIE A. BLANK, CPA

ANDRE' D. BROUSSARD, CPA

ROBERT T. DUCHARME, 11, CPA

STEFAN HAWKINS, CPA

KAVLEEN FISCHER, CPA

MARY PATRICU KEELEY, CPA

WENDY ORTEGO, CPA, CVA

ROBIN G. STOCKTON, CPA

TINA B. VIATOR, CPA

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

To the Board of Directors Lafayette Habitat for Humanity, Inc. Lafayette, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Lafayette Habitat for Humanity, Inc. (a nonprofit organization), which comprise the statement of financial position as of June 30, 2015, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated December 22, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Lafayette Habitat for Humanity, Inc.'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 Lafayette Habitat for Humanity, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of Lafayette Habitat for Humanity, Inc.'s internal 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 internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Unless otherwise expressly indicated, any tax advice contained in this communication, or attachments are not intended for use and cannot be used: (i) to avoid any penalties under the Internal Revenue Code; or (ii) to promote, market or recommend to another party the tax consequences of any matter addressed therein. This communication (and/or the documents accompanying it) may contain confidential information belonging to the sender, which isprotectedby the Accountant-Client privilege. The information is indeed only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any use. disclosure, copying, distribution, or the taking of any action in reliance on the contents of this information is strictly prohibited. If you have received this communication in error, please notify us by telephone Immediately.

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 significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

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

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 accordance with Government Auditing Standards in considering the organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

WrigHt, Moore, <D&Cart, (Dupuis eSC^HutcHinson, LLC

WRIGHT, MOORE, DEHART, DUPUIS & HUTCHINSON, L.L.C.

Certified Public Accountants

December 22,2015 Lafayette, Louisiana


SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,2015

We have audited the financial statements of Lafayette Habitat for Humanity, Inc. as of and for the year ended June 30, 2015, and have issued our report thereon dated December 22, 2015. 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 Comptroller General of the United States. Our audit of the financial statements as of June 30, 2015 resulted in an unmodified opinion.

Section I - Summary of Auditors' Reports

a. Report on Internal Control and Compliance Material to the Financial Statements

Intemal Control Significant Deficiencies Yes X No Material Weaknesses Yes X No

Compliance

Noncompliance Material to Financial Statements Yes X No

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SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED JUNE 30,2015

There were no prior year findings.

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Lafayette Habitat For Humanity, Inc....YEAR ENDED JUNE 30,2015 . LAFAYETTE HABITAT FOR HUMANITY,...

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