Terrebonne Parish Council On Aging...The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial

M

Terrebonne Council on Aging, Inc.

Houma, Louisiana

June 30,2005

Under provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date 2 -~(•+ O £=>

TABLE OF CONTENTS


June 30,2005

Introductory Section

Title Page

Table of Contents

Principal Officials

Financial Section

Independent Auditor's Report

Management's Discussion and Analysis

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Assets

Statement of Activities

Fund Financial Statements:

Fund Balance Sheet - Governmental Funds

Reconciliation of the Governmental Funds Balance Sheetto the Statement of Net Assets

Exhibits

A

B

C

D

Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds E

Reconciliation of the Statement of Revenues, Expenditures andChanges in Fund Balances of Governmental Funds to theStatement of Activities F

PageNumber

n - iv

v

1-2

3-10

11

12

13-14

15

16-17

18

n

TABLE OF CONTENTS(Continued)

Financial Section (Continued)

Notes to Financial Statements

Exhibits

G

PageNumber

19-45

GASB Required Supplementary Information Section

Required Supplementary Information-Budgetary ComparisonSchedule - General Fund

Required Supplementary Information-Budgetary ComparisonSchedule - Title III B - Supportive Services Fund

Required Supplementary Information-Budgetary ComparisonSchedule - Title III C-2 - Home Delivered Meals Fund

Note to Required Supplementary Information Budgetary Reporting

Supplementary Information Section

Independent Auditor's Report on Additional Information

Balance Sheet - Governmental Fund - General Fund Programs

Statement of Revenues, Expenditures and Changes in FundBalance - Governmental Fund - General Fund Programs

Combining Balance Sheet - Nonmajor Governmental Funds -Special Revenue Funds

Combining Statement of Revenues, Expenditures and Changesin Fund Balances - Nonmajor Governmental Funds -

Special Revenue Funds

H 46

47

J

K

Schedules

1

48

49-50

51

52

53

54-57

58-61

in

TABLE OF CONTENTS(Continued)

PageSchedules Number

Supplementary Information Section (Continued)

Comparative Statement of Capital Assets and Changes inCapital Assets

Schedule of Revenues and Expenditures - Governmental Fundsfor the Years Ended June 30, 2005,2004 and 2003

Graph of Revenues - Governmental Funds for the Years Endedfor the Years Ended June 30,2005,2004 and 2003

Graph of Expenditures - Governmental Funds for the Years EndedJune 30, 2005, 2004 and 2003

Units of Service (Unaudited)

Special Reports of Certified Public Accountants

Report on Internal Control Over Financial Reporting and on Complianceand Other Matters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards

Schedule of Findings and Responses

Reports by Management

Schedule of Prior Year Findings and Responses

Management's Corrective Action Plan

62

63

64

65

66

67-68

69-70

71

72

IV

PRINCIPAL OFFICIALS


June 30,2005

BOARD OF DIRECTORS

Clarence Albert, JrWillie Bonvillain, ChairmanInez BrienBarbara CenacJohnny Belinda EscheteL. J. Folse, Vice ChairmanClarence GuidryDonald LeBlancVirginia MolaisonJo Anne PlessalaLena PorcheCarol Ransonet, SecretaryFreddie Richardson, TreasurerDaniel TrahanKirby Verret

TermExpiration Pate

DecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecemberDecember

31,200631,200531,200731,200631,200631,200631,200531,200531,200531,200731,200531,200531,200631.200631,2007

FINANCIAL SECTION

B o u r g e o i s B e n n e t t

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors,Terrebonne Council on Aging, Inc.,

Houma, Louisiana.

We have audited the accompanying financial statements of the governmental activities,each major fund, and the aggregate remaining fund information of the Terrebonne Council onAging, Inc., (the Council), a component unit of the Terrebonne Parish Consolidated Government,State of Louisiana, as of and for the year ended June 30, 2005, which collectively comprise theCouncil's basic financial statements as listed in the table of contents. These financial statementsare the responsibility of the Council's management. Our responsibility is to express opinions onthese financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all materialrespects, the respective financial position of the governmental activities, each major fund and theaggregate remaining fund information of the Terrebonne Council on Aging, Inc. as of June 30,2005, and the respective changes in financial position thereof for the year then ended in conformitywith accounting principles generally accepted in the United States of America.

1WO West Tunnel Blvd.. Suite 430 Certified Public

P.O. Box 2168 Accountants | Consultants

Houma, LA 70361-2168 A Limited Liability Company

Phone (985) 868-0139

Fax (985) 879-1949

P.O. Box 60600 507-D St Philip Sweet

New Orleans. LA 70160-0600 P.O. Box 120S

Heritage PbM, 17* Floor Thibodaux. LA 70302-1 JOS

Phone (504) 831-4949 Phone (985) 447-5243

Fax (504)833-9093

In accordance with Government Auditing Standards, we have also issued our report datedOctober 13, 2005 on our consideration of the Terrebonne Council on Aging, Inc.'s internal controlover financial reporting and our tests of its compliance with certain provisions of laws, regulations,contracts and grant agreements and other matters. The purpose of that report is to describe thescope of our testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be considered in assessing the results of our audit.

Management's Discussion and Analysis and Budgetary Comparison Schedules on pages3 through 10 and 46 through 50 are not a required part of the basic financial statements but aresupplementary information required by the Governmental Accounting Standards Board. We haveapplied certain limited procedures, which consisted principally of inquires of managementregarding the methods of measurement and presentation of the required supplementaryinformation. However, we did not audit the information and express no opinion on it.

0Certified Public Accountants.

Houma, Louisiana,October 13,2005.

MANAGEMENT'S DISCUSSIONS AND ANALYSIS


The Management's Discussion and Analysis of the Terrebonne Council on Aging, Inc.'s (theCouncil) financial performance presents a narrative overview and analysis of the Council'sfinancial activities for the year ended June 30, 2005. This document focuses on the current year'sactivities, resulting changes, and currently known facts. Please read this document in conjunctionwith basic financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

The Council's assets exceeded its liabilities at the close of fiscal year 2005 by $7,981,947 (netassets), which represents a 7% increase from last fiscal year.

The Council's revenue increased $211,020 (or 5%) primarily due to increases in property taxes andgrants. The Council received a new grant from the Office of Elderly Affairs to operate the SeniorRx Program.

The Council's expenditures increased $551,809 (or 16%) primarily due an increase in services andinsurance costs.

The Council did not have any funds with deficit fund balances.

Capital assets increased by $599,567. This increase was largely due to the construction andfurnishing of the new West Side Senior Center and the purchases of 3 new vans.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the Council's basic financialstatements. The Council's annual report consists of five parts: (1) management's discussion andanalysis (this section) (2) basic financial statements (3) required supplementary information, and(4) the optional section that presents combining statements for non-major governmental funds andother supplementary information and (5) various governmental compliance reports and schedulesby certified public accountants and management.

The basic financial statements include two kinds of statements that present different views of theCouncil:

Government-wide Financial Statements

The government-wide financial statements (see Exhibits A and B) are designed to provide readerswith a broad overview of the Council's finances, in a manner similar to a private sector business.The statement of net assets presents information on all of the Council's assets and liabilities, withthe difference between the two reported as net assets. Over time, increases or decreases in netassets may serve as a useful indicator of whether the financial position of the Council is improvingor deteriorating. The statement of activities presents information showing how the Council's netassets change during each fiscal year. All changes in net assets are reported as soon as theunderlying event giving rise to the change occurs regardless of the timing related cash flows.Thus, revenues and expenses are reported in this statement for some items that will only result incash flows in future fiscal periods. The governmental activity of the Council is health and welfarewhich is comprised of various programs that include various supportive services, nutritionalservices, utility assistance and respite.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that havebeen segregated for specific activities or objectives. All of the funds of the Council aregovernmental funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported asgovernmental activities in the government-wide financial statements. However, unlike thegovernment-wide financial statements, governmental fund financial statements focus on near-terminflows and outflows of spendable resources, as well as on balances of spendable resourcesavailable at the end of the fiscal year. Because the focus of governmental funds is narrower thanthat of the government-wide financial statements, it is useful to compare the information presentedfor governmental funds with similar information presented for governmental activities in thegovernment-wide financial statements. Both the governmental fund balance sheet and thegovernmental fund statement of revenues, expenditures, and changes in fund balances provide areconciliation to facilitate this comparison between governmental funds and governmentalactivities. (Exhibit D and F)

The Council has presented the General Fund, Title III B - Supportive Services Fund, Title III C-2- Home Delivered Meals Fund and Capital Projects Fund as major funds (Exhibit C & E). Allnon-major governmental funds are presented in one column, titled Other Governmental Funds.Combining financial statements of the non-major funds can be found in the Combining FundStatements that follow the basic financial statements (Schedule 3 and 4).

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the dataprovided in the government-wide and fund financial statements. The notes to the financialstatements can be found in Exhibit G of this report.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presentscertain required supplementary information that further explains and supports the information inthe financial statements. The Governmental Accounting Standards Board (GASB) Statement No.34 requires budgetary comparison schedules for the General Fund and each major Special RevenueFund that has a legally adopted budget (Exhibits H, I and J). In addition to these requiredelements, the Council has a section of supplementary information. The Governor's Office ofElderly Affairs (GOEA) has required the Council to present combining statements that providedetails about our non-major governmental funds and details about capital assets and the changes incapital assets. This information will be used by GOEA to verify the accuracy of informationsubmitted to them during the year and to help monitor certain compliance requirements set forth inthe grants that it has with the Council (Schedules 3, 4 and 5). GOEA also requires the Council topresent combining schedules of its General Fund Programs (Schedule 1 and 2), and a schedule ofUnits of Service (Schedule 9).

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net assets may serve over time as a useful indicator of the Council's financialposition. As of June 30, 2005, assets exceeded liabilities by $7,981,947. A large portion of theCouncil's net assets (48%) reflects its investment in capital assets (e.g., land; construction inprogress; buildings and leasehold improvements; office furniture, fixtures and equipment; vehicles,machinery and equipment). Consequently, these assets are not available for future spending.

Condensed Statements of Net Assets

June 30,

Current and other assetsCapital assets

Total assets

Long-term liabilities outstandingOther liabilities

Total liabilities

Net Assets:Invested in capita! assets, net of related debtRestrictedUnrestrictedTotal net assets

2005

$ 6,458,738 $3,895,33510,354,073

76,7772,295,3492,372,126

3,895,3354,050

4,082,562$ 7,981,947 $

2004

6,427,8143.295,7689,723,582

57.8432,237,5482,295,391

3,295,7689,594

4, i 22,8297,428,191

DollarChange

30,924599.567630.491

18,93457.80176,735

599,567(5,544)

(40.267).553.756

Governmental Activities

Governmental activities increased the Council's net assets by $553,756. Key elements of thisincrease are as follows:

Condensed Changes in Net Assets

Revenues:Program reveneus:

Charges for servicesOperating grants and contributionsCapital grants and contributions

General revenues:Property taxesGrants and contributions not restricted to specific programsUnrestricted investment earningsMiscellaneous

Total revenues

Expenses:Health and welfare

June 30,2005

136,029781,924

3,301,377268,691120,06828,497

4,636,586

4.082.830

2004

142,517677,81292,486

3,088,713268,693

65,43789,908

4,425,566

3.531.021

DollarChange

$ (6,488)104,112(92.486)

212,664(2)

54,631(61,411)21 1 ,020

TotalPercentChange

-4.55%15.36%

100.00%

6.89%3.00%

83.49%-68.30%

4.77%

551.809 15.63%

Increase in net assetsNet assets beginning of yearNet assets end of year

553,7567,428,191

894,5456,533,646

$ 7.981,947 $ 7.428J91

(340,789)894,545553,756

-38.10%13.69%7.45%

For the most part, increases in property taxes and operating grants have allowed the Council toincrease services which is reflected as increases in health and welfare expenses. The Councilreceived a new grant from the Office of Elderly Affairs to operate the Senior Rx Program.

FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS

As noted earlier, the Council uses fund accounting to ensure and demonstrate compliance withfinance-related legal requirements.

Governmental Funds

The focus of the Council's governmental funds is to provide information on near-term inflows,outflows, and balances of spendable resources. Such information is useful in assessing theCouncil's financing requirements. In particular, unreserved fund balance may serve as a usefulmeasure of the Council's net resources available for spending at the end of the fiscal year. As ofthe end of the current fiscal year, the Council's governmental funds reported combined endingfund balances of $4,163,389, a decrease of $26,877 in comparison with the prior year. The fundbalances are unreserved which indicates they are available for spending at the Council's discretion.This is reflected in Exhibit C.

The General Fund is the chief operating fund of the Council. At the end of the current fiscal year,unreserved fund balance of the general fund was $3,541,442 (Exhibit C). As a measure of thegeneral fund's liquidity, it may be useful to compare total fund balance to total fund expenditures.The fund balance of the Council's General Fund decreased by $194,905 during the current fiscalyear (Exhibit E). The key factor of this decrease was due to the Council continuing to increaseservices and add/improve facilities.

The increase in fund balance in the Capital Projects Fund of $193,880 to $354,781 was due to atransfer in from the General Fund in excess of construction cost of the West Houma Senior Center(Exhibit E).

Other major funds, including Title III B - Supportive Services Fund and Title III C-2 - HomeDelivered Meals Fund had a no change in fund balances. These funds are reimbursed byfederal/state grants and expenditures that are not covered by the grants, are covered by transfersfrom the General Fund.

General Fund Budgetary Highlights

The budget was amended one time during the year. The primary reason for amending the budgetwas to prevent compliance violations under the Council's grants from GOEA due to unanticipatedchanges in revenue and expenditures. The major differences between the original General Fundbudget and the final amended budget were as follows:

Revenues• Ad-Valorem taxes increased by $300,000.• Interest income decreased by $34,314 due to anticipated low interest rates and

less funds available for investment after use of funds for construction of the WestSide Senior Center.

Expenditures• Ad valorem tax adjustment increased by $55,000.• Health and welfare expenditures increased by $610,356 due to the Operations

Center Re-Roofing/HVAC Upgrades and increased services in the area ofMedical Assistance.

Other Financing Sources/Uses• Operating transfers in increased by $72,840 due to close out of various programs

during the year.• Operating transfers out increased by $807,588 due to certain expenses in other

funds being increased in the amended budget therefore requiring more transfersfrom the General Fund.

During the year, revenues did not quite meet final budgetary estimates while expenditures wereless than final budgetary estimates. Required supplementary information budgetary comparisonsschedules were prepared for the General Fund and each major Special Revenue Fund (Exhibits H, Iand J).

CAPITAL ASSETS

Capital Assets

The Council's investment in capital assets for its governmental activities as of June 30, 2005,amounts to $3,895,335 (net of accumulated depreciation). This investment in capital assetsincludes land; construction in progress; buildings and leasehold improvements, office furniture,fixtures and equipment; and vehicles, machinery and equipment (see table on the next page).

2005 2004Land $ 547,254 $ 547,254Construction in progress 1,629 564,119Buildings and leasehold

improvements 2,659,135 1,343,213Office furniture, fixtures

and equipment 149,907 141,891Vehicles, machinery

and equipment 537.410 699.291

Totals $ 3.895.335 $ 3.295.768

Major capital asset events during the current fiscal year included the following:

• Completion of the construction of the new West Side Senior Center.• Purchases of 3 new vehicles for the Council's operations.

Additional information on the Council's capital assets can be found in Note 5, Exhibit G of thisreport.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES

The Council receives most of its funding from federal and state agencies and local taxes. Becauseof this, the source of income for the Council is rather steady. However, some of the Council'sgrants and contracts are contingent upon the level of service provided by the Council, andtherefore, revenues from grants may vary from year to year. There have been no significantchanges to the funding levels or terms of the grants and contracts. The Governor's Office ofElderly Affairs (GOEA) has approved the Council's budget for fiscal year 2005-2006. TheCouncil plans to implement the following programs during the fiscal year ending June 30, 2006.They include:

• HUD Housing for the Elderly.• Hurricane relief services.• Public Transit with Terrebonne Parish Consolidated Government.« Acadian on Call Assistance• Weekend and night activities at the new West Houma Senior Center.

The Board of Directors considered the following factors and indicators when setting next year'sbudget, rates, and fees. These factors and indicators include:

• Consideration of funding to be received from GOEA.• The Ad Valorem Tax revenue budgeted represents the estimated amount of the

November 2005 assessment, which the Council will receive, for the most part, inJanuary 2006.

• Interest revenues have been budgeted with no anticipation of an increase in interestrates.

• Salaries and benefits are based on the number of employees needed to perform necessaryservices and the related benefits.

• Travel rates.• Services the Council will provide along with estimated service cost.• Estimate of operating supplies needed to perform necessary services.• Detail plan of equipment needed to be purchased.• Detail plan of capital projects required to provide services.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the Council's finances for allthose with an interest in the Council's finances. Questions concerning any of the informationprovided in this report or requests for additional financial information should be addressed toBoard of Directors of the Terrebonne Council on Aging, Inc., 955 West Tunnel Blvd, Houma,Louisiana 70360.

10

Exhibit A

STATEMENT OF NET ASSETS


June 30, 2005

AssetsCash $ 465,333Investments 5,827,665Other receivable 1 i ,522Contracts receivable 28,250Taxes receivable 102,066Other current assets 23,902Capita] assets:

Non-depreciable 548,883Depreciable, net of accumulated depreciation 3,346,452

Total assets 10,354,073

LiabilitiesAccounts payable and accrued expenses 459,154Liability on work completed on contracts 93,337Advances from funding agencies 8,953Deferred revenue 1,733,905Non-current liabilities -

due in more than one year 76,777

Total liabilities 2,372,126

Net AssetsInvested in capital assets 3,895,335Restricted for -

other purposes 40,510Unrestricted 4,046,102

Total net assets $ 7,981,947

See notes to financial statements.

11

Exhibit B

STATEMENT OF ACTIVITIES


For the year ended June 30, 2005

Sanctions/Programs

Governmental activities:Health, welfare and social services:

Supportive Services:Personal CareOther ServicesHomemakerInfomiation and AssistanceLegal AssistanceMaterial AidOutreachTransportationWellnessRecreation

Nutrition Services:Congregate MealsHome Delivered Meals

Utility AssistanceRespiteMedication ManagementAdministration

Total governmental activities

Program Revenues

DirectExpenses

$ 116,09725,232

109,93-7113,135

5,15166,7696,255

751,37177,77987,661

259,6391,059,177

15,61540,61068,831

1,279,571

$ 4,082,830

General revenues:Property taxes

Indirect Charges forExpenses Services

S - $12,1973,255

56,862-

13,5823,409

214,063 132,47636,47939,226 1,072

59,352 250176,050 2,231

--

10,174(624,649)

$ - $ 136,029

OperatingGrants and

Contributions

$ 6,9173,7717,657

23,5705,151

14,86510,850

120,57214,94912,863

176,959192,06832,07539,66478,94541,048

$ 781,924

Grants and contributions not restricted to specific programsUnrestricted investment earningsMiscellaneous

Total general revenues

Change in net assets

Net assets:Beginning

Ending

Net (Expense)Revenue andChanges inNet Assets

TotalGovernmental

Activities

$ (109,180)(33,658)

(105,535)(146,427)

-(65,486)

1,186(712,386)

(99,309)(112,952)

(141,782)(1,040,928)

16,460(946)(60)

(613,874)

(3,164,877)

3,301,377268,691120,06828,49*7

3,718,633

553,756

7,428,191

$ 7,981,947


12

FUND BALANCE SHEET -GOVERNMENTAL FUNDS


June 30, 2005

AssetsCashInvestmentsOther receivableContracts receivableTaxes receivableDue from other fimdsOther current assets

Total assets

GeneralFund

$ 464,9334,584,742

11,522

102,066846,30920,846

$_6L030,418

Title III B -Supportive

ServicesFund

40,398

S 40,398

LiabilitiesAccounts payable and accrued expendituresLiability on work completed on contractsAdvances from funding agenciesDue to other fundsDeferred revenue

Tolal liabilities

S 326,03933,814

395,2181,733,905

2.488,976

S 40,398

40,398

Fund BalancesUnreserved, reported in:

General FundCapital Projects FundSpecial Revenue Funds

Total fund balances

Total liabilities and fund balances

3,541,442

3,541,442

$ 6,030,418 $ 40,398

See notes to financial statements,

13

Exhibit C

Title IIIC-2 - HomeDelivered

Meals Fund

$----

44,788-

S 44,788

CapitalProjects

Fund

$1,242,923

-----

$ 1,242,923

OtherGovernmental

Funds

$ 400--

28,250-

310,0323,056

S 341.738

TotalGovemmetnal

Funds

$ 465,3335,827,665

1 1,52228,250

102,0661,241,527

23,902

$ 7,700,265

S 44,788----

44,788

$ 1,02659,523

-827,593

-

888,142

S 46,903-

8,95318,716

-

74,572

$ 459,15493,3378,953

1,241,5271,733,905

3,536,876

354,781

354,781

$ 44,788 S 1,242,923

267,166

267,166

3,541,442354,781267,166

4,163,389

$ 341,738 S 7,700.265

14

Exhibit D

RECONCILIATION OF THE GOVERNMENTAL FUNDSBALANCE SHEET TO THE STATEMENT OF NET ASSETS


June 30, 2005

Fund Balances - Governmental Funds $ 4,163,389

Amounts reported for governmental activities in thestatement of net assets are different because:

Capital assets used in governmental activities are notfinancial resources and, therefore, are not reportedin the Governmental funds:

Governmental capital assets $ 5,092,669Less accumulated depreciation (1,197,334) 3,895,335

Non-current liabilities are not due and payablein the current period and thereforeare not reported in the funds:

Compensated absences payable (76,777)

Net Assets of Governmental Activities $ 7,981,947


15

STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS


for the year ended June 30, 2005

RevenuesTaxes - ad valoremIntergovernmental:

Slate of Louisiana;Stale revenue sharingOffice of Elderly Affairs

Tenebome Parish Consolidated GovernmentCharges for servicesInterest incomePublic support:

LA Councils on AgingContributionsOther

Miscellaneous:Program incomeOilier

Total revenues

ExpendituresCurrent:General government:

Ad valorem tax deductions and adjustmentsHealth and welfare:

SalariesFringeTravelOperating servicesOperating suppliesOther costsMealsCapital outlay

Capital outlay

Total expenditures

Excess (deficiency) of revenuesover expenditures

Other Financing Sources (Uses)Operating transfers inOperating transfers out

Total other t inane ing sources (uses)

Net Change in Fund Balances

Fund BalancesBeginning of year

End of year


GeneralFund

Title III B -SupportiveServices

Fund

Title IIIC-2 - HomeDelivered

Meals Fund

$ 3,301,377

185,29725,639

95,227

13,562

27.358

3,648,460

94,287

2,772,625

72,840(3.040,370)

(2,967,530)

(194,905)

3,736,347

$ 3.541.442

165,425

4,2175,2!8

989

175.849

(905.423)

905,423

905,423

121,440

11,758

133,198

120,49820,9415,765

476,91823,52832,142

-101,756

875,835

572,236122,866

7,938176,48238,590

163,160--

1,081,272

255,26641,436

432339,397163,236

-228,092

-

1,027,859

(894.661)

894,661

894,661

16

Exhibit E

CapitalProjects

Fund

OtherGovernmental

Funds

TotalGovernmental

Funds

$ 3,301,377

24,841

500

25,341

434,7643,170

134,957

28,99749,520

1,108

1,072ISO

653,738

185,297747,268

3,170134,957120,068

28.99779,557

6,32(5

1,07228,497

4,636,586

794,725

794,725

370,13669,991

1,129203,14768,18283,51976,74210,926

883,772

94,287

1,318,136255,234

15,2641,195,944

293,536278,821304,834112,682794,725

4.663.463

(769,384) (230,034) (26,877)

963,264

963,264

193,880

160.901

S 354,781

424,421(220.239)

204,182

(25,852)

293,018

$ 267,166

3,260,609(3.26Q.609)

(26,877)

4.190.266

$ 4,163.389

17

Exhibit F

RECONCILIATION OF THE STATEMENT OF REVENUES.EXPENDITURES AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

Terrbonne Council on Aging, Inc.

For the year ended June 30,2005

Net Change in Fund Balances - Total Governmental Funds S (26,877)

Amounts reported for governmental activities in the statementof activities are different because;

Governmental funds report capital outlays as expenditures.However, in the statement of activities, the cost of thoseassets is allocated over their estimated useful lives asdepreciation expense. This is the amount by which capitaloutlays exceeded depreciation in the current period:

Capital outlay S 907,407Depreciation expense (307,840) 599,567

Some expenses reported in the statement of activitiesdo not require the use of current financial resourcesand, therefore, are not reported as expenditures inthe governmental funds.

Increase in compensated absenses (18,934)

Change in Net Assets of Governmental Activities $ 553,756


18

Exhibit G

NOTES TO FINANCIAL STATEMENTS


June 30,2005

Note 1 - PURPOSE OF THE COUNCIL ON AGING AND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES

The accounting and reporting policies of Terrebonne Council on Aging, Inc. (theCouncil) conform to accounting principles generally accepted in the United States ofAmerica (GAAP) as applicable to governmental units. The Governmental AccountingStandards Board (GASB) is the accepted standard-setting body for establishinggovernmental accounting and financial reporting principles. Governments are alsorequired to follow the pronouncements of the Financial Accounting Standards Board(FASB) issued through November 30,1989 (when applicable) that do not conflict with orcontradict GASB pronouncements. The following is a summary of certain significantaccounting policies:

a) Purpose of the Council on Aging

The purpose of the Council is to collect facts and statistics and make special studies ofconditions pertaining to the employment, financial status, recreation, socialadjustment, mental and physical health or other conditions affecting the welfare of theaging people in Terrebonne Parish; to keep abreast of the latest developments in thesefields of activity throughout Louisiana and the United States; to interpret its findingsto the citizens of the parish; to provide for a mutual exchange of ideas andinformation on the parish and state level; to conduct public meetings to makerecommendations for needed improvements and additional resources; to promote thewelfare of aging people when requested to do so; to coordinate and monitor servicesof other local agencies serving the aging people of the parish; and to assist andcooperate with the Governor's Office of Elderly Affairs (GOEA) other departments ofstate and local government serving the elderly; and to make recommendationsrelevant to the planning and delivery of services to the elderly of the parish.

Specific services provided by the Council to the elderly residents of TerrebonneParish include providing congregate and home delivered meals, nutritional education,personal care, information and assistance, outreach, material aid, home repairs, utilityassistance, homemakers, recreation, legal assistance, disease prevention, healthpromotion and transportation.

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Exhibit G(Continued)

Note 1 - PURPOSE OF THE COUNCIL ON AGING AND SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (Continued)

b) Reporting Entity

In 1964, the State of Louisiana passed Act 456 authorizing the charter of a voluntarycouncil on aging for the welfare of the aging people in each parish of Louisiana. In1979, the Louisiana Legislature created the Governor's Office of Elderly Affairs(GOEA) (LA R.S.46:931) with the specific intention that GOEA administer andcoordinate social services and programs for the elderly population of Louisianathrough sixty-four parish voluntary councils on aging. However, before the council onaging can begin operations in a specific parish, its application for a charter mustreceive approval from GOEA pursuant to LA R.S. 46:1602. The functions of eachcouncil on aging in Louisiana must comply with the objectives of state laws and aregoverned by policies and regulations established by GOEA. The Council was createdon April 28, 1965, under Act No. 456 of 1964. On September 10, 1975, the Councilwas incorporated under the provisions of Title 12, Chapter 2 of the Louisiana RevisedStatutes of 1950 to operate as a quasi-public, non-profit organization.

A board of directors, consisting of 15 voluntary members, who serve three year terms,governs the Council, The board of directors is comprised of, five representatives ofthe Parish's general public (to represent all sections of the parish and will be drawnfrom, but not limited to, civic organizations, governmental agencies, business andreligious groups, Terrebonne Parish School Board and Terrebonne ParishConsolidated Government), nine representatives from the communities of theCouncil's lunch sites (to represent the elderly population) and one representative fromother provider agencies which serve the elderly. Board Members are elected by theGeneral Membership of the Council during its annual meeting. There can be noappointed Board member at any given time.

In accordance with the implementation of GASB Statement No, 14, "the FinancialReporting Entity", the Council's basic financial statements include the accounts of allfunctions and activities. The criteria used to determine whether the Council hascomponent units (separate governmental units, agencies, or nonprofit corporationsassociated with the Council) includes appointment of a voting majority, imposition ofwill, imposition of financial benefit to or burden on the Council, and fiscaldependency. The Council has determined that no other outside entity meets the abovecriteria and should be included in its financial statements. It has been determinedhowever based upon the above criteria that the Council is a component unit of theTerrebonne Parish Consolidated Government (the Parish) and will be included in itscomprehensive financial report for the year ending December 31, 2005.

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c) Basis of Presentation

The Council's basic financial statements consist of the government-wide statementson all activities of the Council and the governmental fund financial statements(individual major funds and combined non-major funds).


The government-wide financial statements include the Statement of Net Assets andthe Statement of Activities for all activities of the Council. As a general rule, theeffect of interfund activity has been removed from these statements. The government-wide presentation focuses primarily on the sustainabiliry of the Council as an entityand the change in aggregate financial position resulting from the activities of thefiscal period. Governmental activities generally are supported by taxes andintergovernmental revenues.

The statement of activities demonstrates the degree to which the direct expenses of agiven function or segment is offset by program revenues. Direct expenses are thosethat are clearly identifiable with a specific function or segment. The Council allocatesits indirect costs among various functions and programs in accordance with CircularA-87. The Statement of Activities shows this allocation in a separate column labeled"indirect cost allocation." In addition, GOEA provides grant funds to help theCouncil pay for a portion of its indirect costs. As a result, only the indirect costs inexcess of the GOEA funds are allocated to the Council's other functions andprograms. Program revenues include: (1) charges to customers or applicants whopurchase, use or directly benefit from goods, services or privileges provided by agiven function and (2) grants and contributions that are restricted to meeting theoperational or capital requirements of a particular function. Taxes and other items notproperly included among program revenues are reported instead as general revenues.


The fund financial statements are very similar to the traditional government fundstatements as presented by governments prior to the issuance of Statement No. 34.Emphasis is now on the major funds in governmental categories. Non-major fundsby category or fund type are summarized into a single column.

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c) Basis of Presentation (Continued)

The daily accounts and operations of the Council continue to be organized on thebasis of funds and accounts groups, each of which is considered a separate accountingentity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, equity, revenues andexpenditures. Government resources are allocated to and accounted for in individualfunds based upon the purpose for which they are to be spent and the means by whichspending activities are controlled. The various funds of the Council are grouped intogeneric fund types and fund categories as follows:

Governmental Activities Presented as Governmental Funds in the Fund FinancialStatements:

General Fund - The General Fund is the general operating fund of the Council. Itis used to account for all financial resources except those that are required to beaccounted for in another fund. The General Fund is always a major fund.

Special Revenue Funds - Special Revenue Funds are used to account for theproceeds of specific revenue sources (other than major capital projects) that arelegally restricted to expenditures for specified purposes. Title III B - SupportiveServices Fund and Title III C-2 - Home Delivered Meals Fund are reported as amajor funds.

Capital Projects Fund - A Capital Projects Fund is used to account for financialresources to be used for the acquisition or construction of major capital facilitiesand is reported as a major fund.

The following programs comprise the Council's General Fund:

Ad Valorem Tax Monies - Monies are derived from a 7.50 mill parish wide advalorem tax received through Terrebonne Parish Consolidated Government.

Act 735 Monies - Monies are received from GOEA as stated in the Legislative Act735. The Council may use these funds at its discretion in any program provided theprogram is benefiting people who are at least 60 years old. The money received inthis fund during the year was transferred to the Title III B-Supportive ServicesFund to provide additional funds to pay for its program expenditures.

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The following funds are the funds which comprise the Council's Special RevenueFunds:

Title III B - Supportive Services Fund - Monies are received from GOEA whichare used to provide various units of supportive social services to the elderly.Specific supportive services provided during the fiscal year are information andassistance, personal care, outreach, homemakers, recreation, transportation, legal,material aid, visiting, telephone and wellness. GOEA has established the criteriafor defining a qualifying unit of service for each Title III program.

Title III C - Area Agency Administration Fund - Monies are received fromGOEA and are used to account for a portion of the indirect costs of administratingthe Council's programs and helps pay for the costs of administering the Council'sspecial programs for the elderly. The amount of money is not enough to pay forall the indirect costs. As a result, the Council will allocate its indirect costs to thisfund first. Once the GOEA funds are completely used, any indirect costs, in excessof the funds provided by GOEA, are distributed to other funds and programs usinga formula based on the percentage each program's direct costs bear to direct costsfor all programs.

Title III C-l - Congregate Meals Fund - Monies are received from GOEA andare used to provide a nutritional, congregate meals to the elderly at meal siteslocated throughout the parish.

Title III C-2 - Home Delivered Meals Fund - Monies are received from GOEAand are used to provide nutritional meals to homebound older persons.

Title III D - Preventive Health Fund - Monies in this fund are received fromGOEA and are used for disease prevention and health promotion activities.

Title III E - National Family Caregiver Program Fund - Monies in this fund arereceived from GOEA and are used to provide relief to family members who are theprimary caregiver to an ill and/or bedridden senior individual.

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N.S.I.P. Fund - This fund is used to account for the administration of NutritionServices Incentive Program funds provided by the Administration on Aging,United States Department of Health and Human Services, to GOEA, which in turn"passes through" the funds to the Council. GOEA distributes NSIP funds to eachparish council on aging in Louisiana based on how many meals each council onaging served in the previous year in relation to the total meals served statewide byall councils. The primary purpose of the NSIP reimbursement is to provide moneyto buy food that will be used in the preparation of congregate and home-deliveredmeals under nutrition service programs. The food that is purchased for thesepurposes must be of United States origin or be commodities from the United StatesDepartment of Agriculture. Transfers to the Title III C-l Congregate Meals Fundand Title III C-2 Home Delivered Meals Fund are made.

Helping Hands Fund - Donated monies are received from the utility customers ofthe Terrebonne Parish Consolidated Government, South Louisiana ElectricCooperation Association and Trans LA Gas Company. Donations also flowthrough the Louisiana Association of Councils on Aging. These monies providehome energy assistance subsidy to low-income elderly and handicap persons.

Audit Fund - Monies are received from GOEA that are restricted to use as asupplement to pay for the cost of having and annual audit of the Council's financialstatements. The cost allocated to this fund is equal to GOEA supplement. Excessaudit costs have been distributed to other funds and programs using the Council'sindirect cost allocation formula.

Disaster Assistance Fund - Monies are available to assist the elderly in case ofhurricanes, tornadoes and other natural disasters.

Department of Health and Hospitals Fund - Monies received are reimbursementof costs to complete applications at the Council's certified Medicaid EnrollmentCenter.

Supplemental Senior Center Fund - Monies in this fund are received fromGOEA. The Louisiana Legislature appropriated additional money for variouscouncils on aging through Louisiana to be used to supplement the each council'sprimary state grant for senior center operations and activities. The Council was oneof the councils to receive a supplemental grant. The money received by this fundduring the year was transferred to the Title III B - Supportive Services Fund tosupplement the supportive services provided by this fund.

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Senior Center Fund - Monies are received from the GOEA which areappropriated by the Louisiana Legislature to GOEA. The purpose of this programis to provide a community service center at which elderly people can receivesupportive social services and participate in activities which foster theirindependence, enhance their dignity and encourage their involvement in and withthe community. Senor Center funds can be used at management's discretion tosupport any of the Council's programs that benefit the elderly. Accordingly, theSenior Center Fund then transferred all its grant revenue to the Title III B -Supportive Services Fund to subsidize that program's cost of providing supportiveservices to elderly persons who use the senior center.

Special Fund - Monies are generated through special projects and donations. Thisfund is used for social, charitable, and athletic events scheduled for the elderlythroughout the year.

Senior RX Fund - Monies in this fund are received from GOEA and are used tolink eligible seniors with assistance for obtaining their prescription medications.This program does not give seniors their prescription medications, but will assist inthe completion of applications to drug companies for free medicines or drugdiscount cards.

Charitable Gaming Fund - Monies were generated from Bingo and other relatedgaming activities. All disbursements must be related to charitable gaming activities(prizes, supplies, equipment, operating expenses, contributions for educational,charitable, religious, patriotic and other public spirited organizations).

Non-Emergency Medical Transportation Fund - Monies are received from theDepartment of Health and Hospitals for Medicaid of Louisiana programs for non-emergency medical transportation. Monies are received based on per trip billing.

Transportation Program Fund - Monies are received from transportationservices provided for nursing home clientele and work connection clientele.Monies are received based on per trip billing.

Find Work Program Fund - Funds were received from the Department of SocialServices, Office of Family Support for transportation of participants in the stateadministered Find Work Program, The Council was reimbursed based on a flat rateper month with a ceiling of units that could be provided.

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Meals for a Fee Program Fund - The Council receives funds from clients payinga part of the cost of meals at the time of delivery.

d) Measurement Focus and Basis of Accounting

Measurement focus is a term used to describe "which" transactions are recordedwithin the various financial statements. Basis of accounting refers to "when"transactions are recorded regardless of the measurement focus applied.


The government-wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting. Revenues are recorded whenearned and expenses are recorded when a liability is incurred, regardless of the timingof related cash flows. Property taxes are recognized in the year for which they arelevied.


All governmental funds are accounted for using a current financial resourcesmeasurement focus. With this measurement focus, only current assets and currentliabilities generally are included on the balance sheet. Operating statements of thesefunds present increases (revenues and other financing sources) and decreases(expenditures and other uses) in net current assets. Governmental funds aremaintained on the modified accrual basis of accounting.

Governmental fund revenues resulting from exchange transactions are recognized inthe fiscal year in which the exchange takes place and meets the government'savailability criteria (susceptible to accrual). Available means that the resources willbe collected within the current fiscal year or are expected to be collected soon enoughthereafter to be used to pay liabilities of the current fiscal year. The Council'sdefinition of available means expected to be received within sixty days of the end ofthe fiscal year.

Expenditures are recognized in the accounting period in which the related fundliability is incurred, if measurable, except for the following: (1) principal and intereston long-term debt are recorded when due, and (2) accumulated unpaid vacation andsick pay which is recorded as expenditures in the governmental fund type when paidwith expendable available financial resources. Allocations of cost such asdepreciation are not recognized in the governmental funds.

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e) Use of Estimates

The preparation of financial statements in conformity with accounting principlesgenerally accepted in the United States of America requires management to makeestimates and assumptions that affect certain reported amounts and disclosures.Accordingly, actual results could differ from those estimates.

I) Accounts Receivable

The financial statements for the Council contain no allowance for bad debts. Uncol-lectible receivables are recognized as bad debts at the time information becomesavailable which would indicate the uncollectibility of the particular receivable. Theseamounts are not considered to be material in relation to the financial position oroperations of the funds of the Council.

g) Cash and Investments

Cash includes amounts in demand deposits, interest bearing demand deposits andpetty cash.

Investments are stated at fair value as established by open market, except for theLouisiana Asset Management Pool (LAMP). LAMP is an external pool which isoperated in a manner consistent with the SEC's Rule 2a7 of the Investment CompanyAct of 1940. Rule 2a7 allows SEC-registered mutual funds to use amortized costrather than market value to report net assets to compute share prices if certainconditions are met.

h) Capital Assets

The accounting treatment over property, plant and equipment (capital assets) dependson whether the assets are reported in the government-wide or fund financialstatements.


In the government-wide financial statements, fixed assets are accounted for as capitalassets. Capital assets purchased or acquired with an original cost of $1,000 or moreare valued at historical cost or estimated historical cost if actual is unavailable, exceptfor donated capital assets which are recorded at their estimated fair value at the date ofdonation. Additions, improvements and other capital outlays that significantly extend

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h) Capital Assets (continued)

the useful life of an asset are capitalized. Other costs incurred for repairs andmaintenance are expensed as incurred.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in theStatement of Activities, with accumulated depreciation reflected in the Statement ofNet Assets. Depreciation is provided over the assets' estimated useful lives using thestraight-line method of depreciation. The range of estimated useful lives by type ofasset is as follows:

Buildings and leasehold improvements 10-40 yearsOffice furniture, fixtures and equipment 5-12 yearsVehicles, machinery and equipment 5-20 years


In the fund financial statements, capital assets used in governmental fund operationsare accounted for as capital outlay expenditures of the governmental fund uponacquisition.

i) Non-Current Liabilities

The accounting treatment of non-current liabilities depends on whether they arereported in the government-wide or fund financial statements.


All non-current liabilities to be repaid from governmental resources are reported asliabilities in the government-wide statements. The long-term obligations consist ofaccumulated unpaid vacation.


Non-current liabilities for governmental funds are not reported as liabilities in thefund financial statements.

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j) Accumulated Vacation, Compensatory Time and Sick Leave

The Council's policies regarding vacation and sick leave permit employees toaccumulate earned but unused vacation and sick leave. The liability for thesecompensated absences is recorded as a long-term obligation in the government-widestatements. In the fund financial statements, governmental funds report only thecompensated absence liability payable from expendable available financial resources.

Full-time employees of the Council shall be entitled to vacation with pay and shallaccrue vacation time in the following manner:

First year through third year One weekFourth year through sixth year Two weeksSeventh year through ninth Three weeksTen years or more Four weeks

Employees may not accumulate and carry forward vacation time beyond the yearearned. Accumulated vacation leave is due to the employee at the time of terminationof employment. Although sick leave accumulates and is available for employeeswhen needed, it does not vest nor is it payable at termination of employment.

k) Income Taxes

Tax exempt status has been granted under Internal Revenue Code Section 501(c)(3).

1) Interfund Transactions

In the financial statements, interfund activity is reported as either loans or transfers.Loans between funds are reported as interfund receivables (due from) and payables(due to) as appropriate. Transfers represent a permanent reallocation of resourcesbetween funds. In other words, they are not expected to be paid. For reportingpurposes, all interfund transactions between individual governmental funds have beeneliminated in the government-wide financial statements.

m) Related Party Transactions

There were no related party transactions during the fiscal year.

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n) Allocation of Indirect Expenses:

The Council reports all direct expenses by function and programs of functions in theStatement of Activities. Direct expenses are those that are clearly identifiable withfunctions or programs. Indirect expenses are recorded as direct expenses of theAdministration function. GOEA provides funds to partially subsidize the Council'sAdministration function. The unsubsidized net cost of the Administration function isallocated using a formula that is based primarily on the relationship the direct cost ofall programs. There are some programs that cannot absorb any indirect costallocation according to their grant or contract limitations.

o) Fund Equity

Government-wide Statements:

Equity is classified as net assets and displayed in three components:

a. Invested in capital assets - Consists of capital assets including restricted capitalassets, net of accumulated depreciation and reduced by the outstanding balancesof any bonds, mortgages, notes or other borrowings that are attributable to theacquisition, construction or improvement of those assets. At June 30, 2005 theCouncil did not report any borrowings.

b. Restricted net assets - Consists of net assets with constraints placed on the useeither by (1) external groups such as creditors, grantors, contributions or laws orregulations of other governments; or (2) law through constitutional provisions orenabling legislation.

c. Unrestricted net assets - All other net assets that do not meet the definition of"restricted" or "invested in capital assets."

When both restricted and unrestricted resources are available for use, it is theCouncil's policy to use restricted resources first, then unrestricted resources as theyare needed except for nutrition services. When providing nutrition services, revenuesearned by the Council under its NSIP contract with GOEA can only be used to pay forthe raw food component of each meal that is bought and served to a person eligible toreceive a meal under one of the nutrition programs. The Council's management hasdiscretion as to how and when to use NSIP revenues when paying for nutritionprogram costs. Unrestricted resources could be available for use that must beconsumed or they will have to be returned to grantor agency. In such cases it is better

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o) Fund Equity (continued)

for management to elect to apply and consume the unrestricted resources before usingthe restricted resources. As a result, the Council will depart from its usual policy ofusing restricted resources first.


Governmental fund equity is classified as fund balance. Fund balance may be furtherclassified as reserved and unreserved, with unreserved further split betweendesignated and undesignated. Reserved means that the fund balance is not availablefor expenditure because resources have already been expended (but not consumed), ora legal restriction has been placed on certain assets that makes them only available tomeet future obligations. Designated fund balances result when managementtentatively sets aside or earmarks certain resources to expend in a designated manner.In contrast to reserved fund balances, designated amounts can be changed at thediscretion of management.

Note 2 - PROPERTY TAXES

The Council records receipts from the Parish for the 7.50 millage ad valorem tax as advalorem tax revenue in the General Fund. The Parish acts as the collection agent forthese taxes and accounts for these taxes on its books in an agency fund. The Parishwithholds certain amounts as reimbursement of expenses that are attributable to theCouncil. The net revenues are forwarded to the Council for its use on an as needed basis.As described in Note 3, funds not forwarded by the Parish to the Council are invested bythe Parish on behalf of the Council.

Property taxes are levied each November 1 on the assessed value listed as of the priorJanuary 1 for all real property, merchandise, and movable property located in the Parish.Assessed values are established by the Terrebonne Parish Assessor's office and the StateTax Commission at percentages of actual value as specified by Louisiana law. Arevaluation of all property is required to be completed no less than every four years. Thelast reevaluation was completed for the list of January 1, 2004. Taxes are due andpayable December 31 with interest being charged on payments after January 1.

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Note 2 - PROPERTY TAXES (Continued)

The tax rate for the year ended December 31, 2004 was $7.50 per $1,000 of assessedvaluation on property for the purpose of operating and maintaining programs for theelderly and disabled persons of Terrebonne Parish. Ad valorem taxes and the relatedstate revenue sharing (Intergovernmental revenues) are recorded as revenue in the periodfor which levied, thus the 2004 property taxes which are levied to finance expendituresfor the 2005 calendar year will be recognized as revenue in the fiscal years ending June30, 2005 and 2006, Accordingly, approximately one half of the 2004 tax levy is recordedas deferred revenue at June 30, 2005.

Note 3 - DEPOSITS AND INVESTMENTS

The Council adopted Governmental Accounting Standards Board Statement No. 40,Deposit and Investment Risk Disclosures, in the current year.

Louisiana state law allows all political subdivisions to invest excess funds in obligationsof the United States or other federally insured investments, certificates of deposit of anybank domiciled or having a branch office in the State of Louisiana, guaranteedinvestments contracts and investment grade (A-l/P-1) commercial paper of domesticcorporations.

The Council has an arrangement with the Parish whereby the Parish retains and investson the Council's behalf ad valorem taxes in excess of the Council's operating needs. AtJune 30, 2005 the Parish had invested $1,434,488 for the Council. This amount isincluded in the cash and investments on Exhibits A and C.

Bank Deposits:

The Council is a quasi-governmental entity which is not required to comply withLouisiana laws relating to collateralization of cash and investments. The Councilhowever, obtains collateralization for cash at financial institutions which is in excess ofthe FDIC insurance. Acceptable collateralization includes FDIC insurance and securitiespurchased and pledged to the political subdivision. Obligations of the United States, theState of Louisiana and certain political subdivisions are allowed as security for deposits.Obligations furnished as security must be held by the political subdivision or with anunaffiliated bank or with a trust company for the account of the political subdivision.

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Note 3 - DEPOSITS AND INVESTMENTS (Continued)

The year end balances of deposits are as follows:

Bank ReportedBalances Amount

Cash $ 561,640 $ 464,269Certificates of deposit 1,601,563 1,601,563

Totals $ 2,163,203 $ 2,065,832

Custodial credit risk is the risk that in the event of a bank failure, the Council's depositsmay not be returned to it. The Council has a written policy for custodial credit risk. Asof June 30, 2005, $1,657,946 of the Council's bank balance of $2,163,203 was exposedto custodial credit risk. These deposits were uninsured and collateralized with securitiesheld by the pledging financial institution's trust department or agent, but not in theCouncil's name.

At June 30, 2005, cash and certificates of deposits were adequately collateralized inaccordance with state law by securities held by unaffiliated banks for the account of theCouncil. The Governmental Accounting Standards Board (GASB), which promulgatesthe standards for accounting and financial reporting for state and local governments,considers these securities subject to custodial credit risk. Even though the pledgedsecurities are considered subject to custodial credit risk under the provisions of GASBStatement 40, Louisiana Revised Statute 39:1229 imposes a statutory requirement on thecustodial bank to advertise and sell the pledged securities within 10 days of beingnotified by the depositor that the fiscal agent has failed to pay deposited funds upondemand.

Investments:

State statutes authorize the Council to invest in obligations of the U.S. Treasury, agenciesand instrumentalities; guaranteed investment contracts and investment grade (A-l/P-1)commercial paper of domestic corporations; repurchase agreements; and the LouisianaAsset Management Pool (LAMP).

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At June 30,2005, the Council had the following investments and maturities:

Investment FairType Value Maturities

Federal Home Loan Mortgage Corporation Note $ 302,005 1/10/2006Louisiana Asset Management Pool (LAMP) 3,924,097 19 day average

Total $ 4,226,102

As a means of limiting its exposure to fair value losses arising from interest rates, theCouncil's investment policy emphasizes maintaining liquidity to match specific cashflows.

Credit risk is defined as the risk that an issuer or other counterparty to an investment willnot fulfill its obligations. The Council's investment policy requires the application of theprudent-person rule. The policy states, investments shall be made with the judgment andcare, under circumstances then prevailing, which persons of prudence, discretion andintelligence exercise in the management of their own affairs, not for speculation, but forinvestment, considering the probable safety of their capital as well as the probableincome to be derived. Primary emphasis shall be placed upon the safety of principalsecondly to maintain liquidity to meet operating requirements and finally to obtain themost favorable rate of return.. The Council's investment policy limits investments tothose discussed earlier in this note. LAMP has a Standard & Poor's Rating of A A Am.

For an investment, custodial credit risk is the risk that, in the event of the failure of thecounterparty, the Council will not be able to recover the value of its investments orcollateral securities that are in the possession of an outside party. Investments in externalinvestment pools are not exposed to custodial credit risk because of their naturaldiversification and the diversification required by the Securities and ExchangeCommission.

LAMP, a local government investment pool, is administered by LAMP, Inc., a non-profitcorporation organized under the laws of the State of Louisiana, which was formed by aninitiative of the State Treasurer in 1993. While LAMP is not required to be a registeredinvestment company under the Investment Company Act of 1940, its investment policiesare similar to those established by Rule 2a7, which governs registered money market

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funds. The primary objective of LAMP is to provide a safe environment for theplacement of public funds in short-term, high quality investments. The LAMP portfolioincludes only securities and other obligations in which local governments in Louisianaare authorized to invest. Accordingly, LAMP investments are restricted to securitiesissued, guaranteed or backed by the U.S. Treasury, the U.S. Government or one of itsagencies, enterprises or instrumentalities, as well as repurchase agreements collateralizedby those securities. The dollar weighted average portfolio maturity of LAMP assets isrestricted to not more than 90 days, and consists of no securities with a maturity in excessof 397 days. The fair value of investments is determined on a weekly basis to monitorany variances between amortized cost and fair value. For purposes of determiningparticipants' shares, investments are valued at amortized cost. The fair value ofparticipant's position is the same as the value of the pool shares. LAMP is designed to behighly liquid to give its participants immediate access to their account balances.Investments in LAMP at June 30,2005 amounted to $3,924,097 and are classified on theStatement of Net Assets as "Investments".

A reconciliation of deposits and investments as shown on the Statement of Net Assets isas follows:

Cash on hand $ 1,064Reported amount of deposits 2,065,832Reported amount of investments 4.226,102

Total

Classified as:Cash $ 465,333Investments 5,827,665

Total S 6,292,998

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Note 4 - CONTRACTS RECEIVABLE

Contracts receivable at June 30, 2005 consisted of reimbursements for expendituresincurred under the following programs:

State of Louisiana-Office of Elderly Affairs -

Title III C - Area Agency Administration Fund $ 785Title III D - Preventive Health Fund 2,968N.S.I.P.Fund 11,078

Department of Health and Hospitals -Non-Emergency Medical Transportation Program 4,868

Terrebonne Parish Consolidated Government ~Arts Grants 2,000Helping Hands 1,170

Nursing Homes - Transportation Programs 5,381

Total

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Note 5 - CHANGES IN CAPITAL ASSETS

Capital asset activity for the year ended June 30,2005 was as follows:

Capital assets not being depreciated:LandConstruction in progress

Total capital assets notbeing depreciated

Capital assets being depreciated:Buildings and leasehold improvementsOffice furniture, fixtures and

Vehicles, machinery and equipment

Total capita! assets beingdepreciated

Less accumulated depreciation for:Buildings and leasehold improvementsOffice furniture, fixtures and

Vehicles, machinery and equipment

Total accumulated depreciation

Total capital assets beingdepreciated, net

Total capital assets, net

BalanceJuly 1,2004

$ 547,254564,119

1,111,373

1,522,760253,434

1,338,815

3,115,009

(179,547)(111,543)(639,524)

Additions

$794,725

794,725

1,357,21539,89372,789

1,469,897

(41,293)(31,877)

(234,670)

Deletions

$1,357,215

1,357,215

1,20039,920

41,120

1,20039,920

BalanceJune 30,

2005

$ 547,2541,629

548,883

2,879,975292,127

1,371,684

4,543,786

(220,840)(142,220)(834,274)

(930,614)

2,184,395

S 3,295,768

(307,840)

1,162,057

41,120 (1,197.334)

3.346.452

$ 1,956,782 $ 1.357,215 $ 3,895,335

Leasehold improvements include a senior center building with a cost of $159,262 whichwas constructed on land owned by the Chauvin Senior Citizens, Inc. The Council isoperating the building on a month-to-month basis at no cost for the land.

Construction in progress consists of costs associated with renovations to a lunch site.

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Note 5 - CHANGES IN CAPITAL ASSETS (Continued)

Depreciation was charged to governmental activities as follows:

AdministrationNutrition Services:

Congregate MealsHome Delivered Meals

Supportive Services:TransportationRecreationWellnessInformation and AssistanceOther

Total

$61,656

11,096145,530

76,1235,9064,4291,5501.550

S3Q7.84Q

Note 6 - ACCOUNTS PAYABLE AND ACCRUED EXPENDITURES

Accounts payable and accrued expenditures at June 30,2005 consisted of the following:

Governmental activities:General FundTitle III B - Supportive

Servies FundTitle III C-2 - Home

Delivered Meals FundCapital Projects FundNon-major Funds

Total accounts payable andaccrued expenditures

VendorsSalaries And

Benefits Protest Taxes Other Total Payabtes

$ 18,650 3

18,941

34,960

32,072

; 4,473 $ 302,916 5

21,457

9,828

14,831

> - S 326,039

40,398

44,7881,026 1,026

46,903

104,623 S 50,589 $ 302,916 $ 1,026 $ 459,154

38


Note 7 - ADVANCES FROM FUNDING AGENCIES

Advances from funding agencies represent funds received which have not yet beendistributed for the purpose designated. A summary of the Council's advances fromfunding agencies is as follows:

State of Louisiana -Office of Elderly Affairs -

Senior Rx Program $ 2,767Disaster Assistance 6.186

Total

Senior Rx revenue was unearned for this fiscal year because insufficient overallexpenditures/expenses were made. Expenditures/expenses relating to Disaster Assistancewill occur in a future period.

Note 8 - DUE TO/FROM OTHER FUNDS

Due to/from other funds are listed by fund for the year ended June 30,2005:

Receivable PayableFund Fund

General Fund:Title III B-Supportive Services Fund $ - $ 40,398Title III C-2-Home Delivered Meals Fund - 44,788Capital Projects Fund 827,593Non-major Funds 18.716 310.032

Totals 846.309 395.218

Title III B-Supportive Services Fund:General Fund 40.398

39

Note 8 - DUE TO/FROM OTHER FUNDS (Continued)

ReceivableFund


PayableFund

Title III C-2-Home Delivered Meals Fund:General Fund

Capital Projects Fund:General Fund

Non-major Funds:General Fund

Grand Totals

44.788

310,032

827.593

18.716

The balances above resulted from the time lag between the dates that (1) interfund goodsand services are provided or reimbursable expenditures occur, (2) transactions arerecorded in the accounting system and (3) payments between funds are made.

Note 9 - NON-CURRENT LIABILITIES

Non-current liabilities consist of accumulated unpaid vacation. The following is asummary of the changes in long-term obligations of the Council for the year ended June30,2005:

Non-current liabilities, July 1, 2004Net increase in unpaid vacation

Non-current liabilities, June 30,2005

$57,84318.934

$ 76.777

40


Note 10 - INTERFUND TRANSFERS

Operating transfers in and out are listed by fund for the year ended June 30,2005:

Operating TransfersIn Out

General Fund:Title III B-Supportive Services Fund $ 847,668Title III C-2-Home Delivered Meals Fund 835,791Capital Projects Fund 963,264Non-major Funds:

Title III C-l-Congregate Meals Fund 128,450Title III D - Preventive Health Fund 196Title III E - National Family Caregiver Program Fund 4,665Helping Hands Fund 20,000Disaster Assistance Fund 20,000Department of Health and Hospitals Fund $ 602Special Fund 51,075Non-Emergency Medical Transportation Fund 141,751Transportation Program Fund 5,150 24,341Find Work Program Fund 67,088Meals for a Fee Program Fund 3,169

Total 72.840 3.040,370

Title III B-Supportive Services Fund:General Fund 847,668Non-major Funds:

Supplemental Senior Center Fund 3,825Senior Center Fund 53,930

Total 905.423

Title III C-2-Home Delivered Meals Fund:General Fund 835,791Non-major Funds:

N.S.I.P. Fund 58.870

Total 894.661

41


Note 10 - INTERFUND TRANSFERS (Continued)

Operating TransfersIn Out

Capital Projects Fund:General Fund $ 963,264

Non-major Funds:General Fund 393,647 $Title III B-Supportive Services Fund - 57,755Title III C-2-Home Delivered Meals Fund - 58,870Non-Major Funds:

Title III C-1 -Congretate Meals Fund 25,230N.S.I.P. Fund - 25,230Department of Health and Hospitals Fund - 602Special Fund 5,544Charitable Gaming Fund - 5,544Transportation Program Fund - 5,150Find Work Program Fund : 67,088

Totals 424.421 220.239

Grand Totals $3.260.609 $3.260.609

Transfers are used to (a) move revenues from the fund that statute or budget requires tocollect them to the fund that statute or budget requires to expend them and to (b) useunrestricted revenues collected in the General Fund and certain Special Revenue Funds tofinance various programs accounted for in other funds in accordance with budgetaryauthorizations.

Note 11 - RISK MANAGEMENT

The Council is exposed to various risks of loss related to workers* compensation; torts;thefts of, damage to and destruction of assets; errors and omissions; natural disasters; andgroup health benefits for which the Council carries commercial insurance and alsoparticipates in the Parish's risk management program for group health insurance. Nosettlements were made during the year that exceeded the Council's insurance coverage.The Council's premiums for group health insurance are based on a fixed rate peremployee. The Parish handles all claims filed against the Council for which it hasinsurance coverage under the Parish.

42


Note H - RISK MANAGEMENT (Continued)

The Parish is self-insured for the first $125,000 of each claim relating to group healthinsurance. The aggregate deductible for all group claims related to group healthinsurance for the year ended December 31, 2004 was $12,725,275. Insurance contractscover the excess liability, up to $1,000,000 on individual claims. Each covered employeeis subject to a lifetime maximum claims limit of $1,000,000. Coverage for group healthclaims in excess of the above limits are to be funded first by assets of the Parish's grouphealth internal service fund, $2,826,924 at December 31, 2004, then by the entitiesparticipating in the group health plan and finally by the employee for individual claims inexcess of $1,000,000. At June 30, 2005 the Council had no claims in excess of thecoverage limits. Total premiums paid to the Parish for group insurance for the yearended June 30,2005 amounted to $156,262.

Note 12 - RETIREMENT PLAN

The Council established a Thrift Plan for Employees, under Internal Revenue CodeSection 403 (b), for its eligible employees as of January 1, 2002. Under this planparticipating employees are permitted to make elective deferrals in amounts that arewithin the limits of Code Sections 403(b) and 402(g) of their compensation and theCouncil will match 20% of the amount contributed not to exceed 5% of the employee'scompensation after 2 years of service. An additional 20% of the amount contributed willbe added per year thereafter until the match reaches 100% after 6 years. The Council'scost of the plan for the year ended June 30,2005 is $37,036.

Note 13 - IRC SECTION 125 CAFETERIA PLAN

The Council provides an Internal Revenue Code Section 125 "Cafeteria" plan for all itsfull-time employees. Under this plan an eligible employee can elect to have a portion oftheir compensation reduced to pay for insurance that the employee would normally haveto pay with "after tax" compensation. Participation in this plan is at the option of eachfull-time employee.

43


Note 14- IN-KIND CONTRIBUTIONS

The Terrebonne Council on Aging, Inc. received various in-kind contributions during theyear. The following facilities, goods and services were furnished at no cost to theCouncil:

• Congregate meal sites• Volunteer services• Volunteers' vehicle and travel• Building usage for the old main office, Bayou Towers, Neal Ransonet, Shady Oak,

And Bonne Terre Village Senior Centers• Operating supplies and services• Material aide

While these contributions have not been reported, the offsetting expenditures have alsonot been reported in the governmental fund financial statements.

Note 15 - ECONOMIC DEPENDENCY

The Council receives a majority of its program revenue from funds provided throughgrants administered by the Louisiana Governor's Office of Elderly Affairs. The grantamounts are appropriated each year by the federal and state governments. The state ofLouisiana incurred significant losses as a result of Hurricanes Katrina and Rita in Augustand September 2005. Hurricane relief and recovery efforts have stretched the State'sfinances and increased the likelihood of cuts in the Association's future funding from theState. If significant budget cuts are made at the Federal, state and local governmentlevels, the amount of funds that the Association will receive could be reducedsignificantly and have an adverse impact on its operations. Management is not able toestimate at this time the amount of funds that the Association will receive from futurestate funding. However, management believes that it will receive sufficient funds toavoid a material impact on the Association's future operations.

For the year ended June 30, 2005 the Council recognized property tax revenue of$3,301,377. This additional revenue reduces the dependency by the Council on federaland state grants.

Note 16 - CONTINGENCIES - GRANT PROGRAMS

The Council participates in a number of federally assisted programs, which are governedby various rules and regulations. Costs charged to the respective grant programs aresubject to audit and adjustment by the grantor agencies; therefore, to the extent that the

44


Note 16 - CONTINGENCIES - GRANT PROGRAMS (Continued)

Council has not complied with the rules and regulations governing the grants, refunds ofany money received and the collectibility of any related receivable at year-end may beimpaired. In management's opinion, there are no significant contingent liabilities relatingto compliance with the rules and regulations governing state and federal grants; therefore,no provision has been recorded in the accompanying financial statements for suchcontingencies. Audits of prior years have not resulted in any disallowed costs or refunds.Any costs that would be disallowed would be recognized in the period agreed upon bythe grantor agency and the Council.

Note 17 - JUDGEMENTS, CLAIMS, AND SIMILAR CONTINGENCIES

The Council is a defendant in a lawsuit. While it is not feasible to predict or determinethe outcome of this matter, it is the opinion of management that the ultimate outcome willnot have a material adverse effect on the financial position of the Council. Accordingly,no obligation for the claim has been recognized by the Council in the financialstatements.

Note 18- COMMITMENTS

On June 30,2005, the Council had $1,538,499 in public work contracts of which $16,701was incomplete.

Note 19- INCOME TAX STATUS

The Council, a non-profit corporation, is exempt from federal income taxation underSection 501 (c) (3) of the Internal Revenue Code, and is not a private foundation asdefined in Section 509 (a) of the Code. It is also exempt from Louisiana income tax.

Note 20 - RELATED PARTY TRANSACTIONS

There were no significant related party transactions during the year.

Note 21 - BOARD OF DIRECTORS

The Board of Directors is a voluntary board; therefore, no compensation has been paid toany member.

45

GASB REQUIRED SUPPLEMENTARY INFORMATION SECTION

Exhibit H

REQUIRED SUPPLEMENTARY INFORMATIONBUDGETARY COMPARISON SCHEDULE

GENERAL FUND



Budgeted Amounts

RevenuesTaxes - ad valoremIntergovernmentalInterest incomePublic supportMiscellaneous

Total revenues

ExpendituresCurrent:

General government:Ad valorem lax deductions and adjustments

Health and welfare:SalariesFringeTravelOperating servicesOperating suppliesOther costsCapital outlay

Total expenditures

Excess of revenues over expenditures


Total other financing sources (uses)

Net Change in Fund Balance

Fund BalanceBeginning of year

End of year

Original

$ 3,000,000288,639

88,8144,925

38,400

3,420,778

145,000

154,02626,7976,377

93,30112,94410,225

300,000

748,670

2,672,108

(3,283,552)

(3,283,552)

(611,444)

3,736,347

$ 3,124,903

Final

$ 3,300,000291,847

54,50015,15339,400

3,700,900

200,000

123,72023,0786,173

635,58516,04886,000

323,422

1,414,026

2,286,874

72,840(4,091,140)

(4,018,300)

(1,804,266)

3,736,347

$ 1,932,081

Actual

3,301,377210,93695,22713,56227.358

3,648,460

94,287

120,49820,941

5,765476,918

23,52832,142

101,756

875,835

2,772,625

72,840(3,040.370)

(2,967,530)

Variance withFinal Budget

Positive(Negative)

$ 1,377(80,911)40,727(1,591)

(12,042)

(52,440)

105,713

3,2222,137

408158,667

(7,480)53,858

221,666

538,191

485,751

1,050,770

1,050,770

(194,905) S 1.536,521

3,736,347

See note to required supplementary information.

46

Exhibit I


TITLE HI B - SUPPORTIVE SERVICES FUND


For Ihe year ended June 30, 2005

Budgeted Amounts

RevenuesIntergovernmentalPublic supportMiscellaneous

Total revenues

ExpendituresCurrent

Health, and welfare:SalariesFringeTravelOperating servicesOperating suppliesOther costs

Total expenditures

Dedciency of revenues over expenditures

Other Financing SourcesOperating transfers in



End of year

Original

$ 165,4259,0501,275

175,750

604,360105,140

9,730265,732

51,803192,651

1,229,416

(1,053,666)

1,053,666

S

Final

$ 165,42511,868

1,344

178,637

658,573122,808

9,330276,676

59,137198,901

1,325,425

(1,146,788)

1,146,788

S

Actual

S 165,4259,435

989

175,849

572,236122,866

7,938176,48238,590

163,160

1,081,272

(905,423)

905,423

.

-

$


Positive(Negative)

(2,433)(355)

(2,788)

86,337(58)

1,392100,19420,54735,741

244,153

241,365

(241,365)


47

Exhibit J


TITLE III C-2 - HOME DELIVERED MEALS FUND



RevenuesIntergovernmentalPublic support

Total revenues


Health and welfare:SalariesFringeTravelOperating servicesOperating suppliesMeals

Total expenditures

Deficiency of revenues over expenditures

Other Financing SourcesOperating transfers in



End of year

Budgeted AmountsOriginal

$ 121,44016,950

138,390

322,57456,1593,209

370,950144,771271,460

1,169,123

(1,030,733)

1,030,733

S

Final

S 121,44016,602

138,042

288,78753,9662,852

389,159169,150254,800

1,158,714

(1,020,672)

1,020,672

S

Actual

$ 121,44011,755

133,198

255,26641,436

432339,397163,236228,092

1,027,859

(894,661)

894,661

-


Positive(Negative)

S(4,844)

(4,844)

33,52112,5302,420

49,7625,914

26,708

130,855

126,011

(126,011)

S


48

Exhibit K

NOTE TO REQUIRED SUPPLEMENTARY INFORMATIONBUDGETARY REPORTING



The Council adheres to the following procedures in establishing the budgetary datareflected in the financial statements.

• GOEA notifies the Council each year as to the funding levels for each program'saward.

• The Council may also obtain funds from agencies other than GOEA and theCouncil considers the potential revenues to be earned under those grants.

• Projections are made of revenues from other sources based on past trends and dataavailable to form expectations of future revenues.

• The Executive Director prepares a proposed budget based on the expected fundinglevels and then submits the budget to the Board of Directors for approval.

• The Board of Directors reviews and adopts the budget before May 31 of thecurrent year for the next year.

• The adopted budget is forwarded to the GOEA for final approval.

• All budgetary appropriations lapse at the end of each fiscal year (June 30).

• Budgeted amounts included in the accompanying financial statements include theoriginal adopted budget amounts and all subsequent amendments. There wasonly one amendment during the year which was effective March 1,2005.

• Actual amounts are compared to budgeted amounts periodically during the fiscalyear as a management control device.

• The Council may transfer funds between line items as often as required but mustobtain prior approval from the GOEA for funds received under grants from thisstate agency. As a part of this grant award, GOEA requires the Council to amendits budget in cases where actual costs for a particular cost category exceeded thebudgeted amount by more than 10%. Otherwise, the excess costs could be labeledas unauthorized expenditures.

49

Exhibit K(Continued)

NOTE TO REQUIRED SUPPLEMENTARY INFORMATIONBUDGETARY REPORTING

(Continued)



• Expenditures cannot legally exceed appropriations on an individual fund level.

• The Council has established policies requiring public participation in the budgetprocess.

• The budget for special revenue funds is prepared on a modified accrual basis,consistent with the basis of accounting, for comparability of budgeted and actualrevenues and expenditures.

Major funds, for which annual budgets are adopted, are included in the budgetpresentations in required supplementary information.

50

SUPPLEMENTARY INFORMATION SECTION


INDEPENDENT AUDITOR'S REPORT ON ADDITIONAL INFORMATION


Houma, Louisiana.

Our report on our audit of the basic financial statements of the Terrebonne Council onAging, Inc., (the Council) for the year ended June 30, 2005, appears on pages 1 and 2. That auditwas conducted for the purpose of forming an opinion on such financial statements taken as awhole. The accompanying schedules listed in the table of contents including the combining andgovernmental fund financial statements are presented for purposes of additional analysis and arenot a required part of the basic financial statements. Such information, except for units of servicefor the years ended June 30, 2005 and 2004 marked "unaudited" in Schedule 9, on which weexpress no opinion, has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, is fairly stated, in all material respects, in relation to thebasic financial statements for the year ended June 30,2005, taken as a whole.

We also have previously audited, in accordance with generally accepted auditing standardsand the standards applicable to financial audits contained in Government Auditing Standards.issued by the Comptroller General of the United States, the governmental fund balance sheets ofthe Terrebonne Council on Aging, Inc., as of June 30,2004 and 2003, and the related statements ofrevenues, expenditures and changes in fund balance for each of the two years in the period endedJune 30, 2004 (none of which is presented herein), and we expressed unqualified opinions on thosefinancial statements. In our opinion, the information presented in the schedule of governmentalfund revenues and expenditures and graphs of governmental fund revenues and expenditures forthe years ended June 30, 2004 and 2003 is fairly stated in all material respects in relation to thebasic financial statements from which it has been derived.

Houma, Louisiana,October 13,2005,

1340 West Tunnel Blvd.. Suite 430 Certified PublicP.O. Box 2168 Accountants | ConsultantsHomra,LA 7036I-2I6B A Limited liability CompanyPhone (985) 869-0139Fax (965) 879-1949

:.c.r **nr — - P---*^»- f j

6Certified Public Accountants.

51P.O. Box 60600 507-D St Philip StNew Orleans, IA 70160-0600 P.O. Box 1205HeriugePlm. IT*Floor Thlbodaux.LA 70302-1205Phone (504) 831-4949 Phone (9B5) 447-5243Fax (504) 833-9093

Schedule 1

BALANCE SHEET - GOVERNMENTAL FUNDGENERAL FUND PROGRAMS


June 30,2005

Programs of the General Fund

AssetsCashInvestmentsOther receivablesTaxes receivableDue from other fundsOther current assets

Total assets

Ad ValoremTax Monies

$ 464,9334,584,742

11,522102,066846,30920,846

$ 6,030,418

Act 735Monies Total

$ -

$ 464,9334,584,742

11,522102,066846,309

20,846

$ 6,030,418

LiabilitiesAccounts payable and accrued expenditures $ 326,039Liability on work completed on contracts 33,814Due to other funds 395,218Deferred revenue 1,733,905

Total liabilities 2,488,916

$ 326,03933,814

395,2181,733,905

2,488,976

Fund BalanceUnreserved

Total liabilities and fund balance

3,541,442

$ 6,030,418 $ -

3,541,442

$ 6,030,418

52

Schedule 2

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNDBALANCE - GOVERNMENTAL FUND - GENERAL FUND PROGRAMS



General Fund Programs

RevenuesTaxes - ad valoremIntergovernmental:

State of Louisiana:State revenue sharingOffice of Elderly Affairs - Act 735

Interest incomePublic support:

ContributionsMiscellaneous:

Other

Total revenues


General government:Ad valorem tax deductions and adjustments

Health and welfare:SalariesFringeTravelOperating servicesOperating suppliesOther costsCapital outlay

Total health and welfare

Total expenditures

Excess of revenues over expenditures



Met Change in Fund Balance

Blind BalanceBeginning of year

End of year

Ad Valorem Act 735Tax Monies Monies

S 3,301,377 $

185,29725,639

95,227

13,562

27,358

3,622,821 25,639

94,287

120,49820,941

5,765476,918

23,52832,142

101,756

781,548

875,835

2,746,986 25,639

72,840(3,014,731) (25,639)

(2,941,891) (25,639)

(194,905)

3,736,347

$ 3,541,442 $

Total

$ 3,301,377

185,29725,63995,227

13,562

27,358

3,648,460

94,287

120,49820,941

5,765476,918

23,52832,142

101,756

781,548

875,835

2,772,625

72,840(3,040,370)

(2,967,530)

(194,905)

3,736,347

$ 3,541,442

53

COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS

Terr ebon ne Council on Aging, Inc.

June 30, 2005

AssetsCashContracts receivableDue from other fundsOther current assets

Total assets

Title III C -Area Agency

AdministrationFund

785

785

Title HI C-1 -CongregateMeals Fund

12,629

$ 12,629

Title III D-Preventive

HealthFund

2,968

S 2,968

LiabilitiesAccounts payable and

accrued expendituresAdvances from funding

agenciesDue to other funds

Total liabilities

$ 576

209

785

$ 12,629

12,629

2,968

2,968

Fund BalancesUnreserved

Total liabilities and fund balances $ 785 $ 12,629 S 2,968

54

Schedule 3

Title III E -NationalFamily

CaregiverProgram Fund

S-

3,439

S 3,439

HelpingN.S.I.P. Hands

Fund Fund

$ - $ -11,078 1,170

39,340

S 11,078 S 40,510

DisasterAudit AssistanceFund Fund

$-

139,988

$ - S 139,988

Departmentof Health

and HospitalsFund

S

SupplementalSeniorCenterFund

$ -

$ 3,439

11,0786,186

3,439 11,078 6,186

S 3,439 $ 11,078

133,802

$ 139,988 _$_

55

COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS


June 30,2005

AssetsCashContracts receivableDue from other fundsOther current assets

Tola! assets

SeniorCenter Senior RXFund Fund

S

21,921

S - $ 21,921

SpecialFund

S 4002,000

89,4142,500

$ 94,314

Non-EmergencyCharitable MedicalGaming Transportation

Fund Fund

$4,8683,301

S - S 8,169

LiabilitiesAccounts payable and

accrued expendituresAdvances from funding

agenciesDue to other funds

Total liabilities

S 19,154 $ 1,460

2,767

21,921 1,460

$ 8,169

8,169

Fund BalancesUnreserved

Total liabilities and fund balances $ -

$ 92,854

$ 21.921 $ 94,314 $ S 8,169

56

Transportation Find Work Meals For aProgram Program Fee Program

Fund Fund Fund Total

S $ - $ 4005,381 - 28,250

310,032556 3,056

S 5,381 S - $ 556 $341,738

1,198 $ 278 S 46,903

8,9534.183 278 18,716

5,381 556 74,572

267,166

$ 5,381 $ - S 556 $ 341,738

Schedule 3(Continued)

57

COMBINING STATEMENT OF REVENUES. EXPENDITURESAND CHANGES IN FUND BALANCES -

NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS

Terrebonne Council on Aging, lac.


Title III C -Area AgencyAdministration

Fund

Title III C-l-CongreguleMeals Fund

Title HI D -Preventive

HcnllhFund

RevenuesIntergovernmental:

Suite of Louisiana:Office of Elderly Affairs

Terrebmmc Parish Consolidated GovernmentCharges for servicesPublic support:


Miscellaneous:Program incomeOther

Total revenues

ExpendituresCurrent

Health and welfare:SalariesFringeTravelOperating servicesOperating suppliesOther costsMealsCapital outlay

Total expenditures

Excess (deficiency) of revenues over expenditures



Net Change in Fund Balances


End of year

$ 29,374

29,374

15,5522,730

669,0172,009

29,374

$ 121,440

23,296

144.736

112,30519,169

28570,02322,033

74,601

298,416

(153.680)

153,680

153,680

S 6,680

6,680

6,876

6,876

196

196

58

Schedule 4

Title III E -NationalFamily

CaregiverPrograni Fund

N.8.I.P.Fund

HelpingHandsFund

AudilFund

Department SupplementalDisaster ofHealth Senior

Assistance and Hospitals CenterFund Fund Fund

54,858 $ 84,100 $ - $ 3,3491,170

S 3,825

8528,997

1,300€08

54,943 84,100 32,075 3,349 3.825

<S,S311,743

85400

8250,467 15,615

3,349

59,608

(4,665)

4,665

4,665

84,100

(84,100)

(84,100)

15,615 3,349

16,460

20,000 $ 20,000 $(602)

20,000 20,000 (602)

36,460 - 20,000 (602)

4,050 - 113,802 602

3,825

(3,825)

(3,825)

-

„

S 40.510 S S 133,802

59

COMBINING STATEMENT OF REVENUES. EXPENDITURESAND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS - SPECIAL REVENUE FUNDS

Terrcbonne Council on Aging, Inc.


SeniorCenter Senior RXFund Fund

RevenuesIntergovernmental:

State of Louisiana:Office of Elderly Affairs $ 53,930 $ 77,208

Terrcbonne Parish Consolidated GovernmentCharges for servicesPublic Support:


Miscellaneous:Program incomeOther

Total revenues 53,930 77,208


Health and welfare:Salaries 33,508Fringe 5,864Travel 583Operating services 8,207Operating supplies 10,145Other costs 7,975MealsCapital outlay 10,926

Total expenditures 77,208

Excess (deficiency) of revenues over expenditures 53,930

Other Financing Sources (Uses)Operating transfers inOperating transfers out (53,930)

Total other financing sources (uses) (53,930)

Net Change Jn Fund Balances


End of year $ - $

CharitableSpecial GamingFund Fund

$2,000

250

-9.49K

500-

1,072150

13,470

27,9995,155

1718,45011,9522,586

--

66,159

(52,689)

56,619 S(5,544)

56,619 (5,544)

3,930 (5,544)

88,924 5,544

$ 92,854 $

Noil -EmergencyMedical

TransportationFund

S-

105,164

-15,341

-

--

120,505

145,27429,655

7270,14317,112

---

262,256

(141,751)

141,751-

141,751

-

-

S

60

Transportation Find Work Meals for aProgram Program Fee Program

Fund Fund Fund Total

27,312

27,312

2,231

2,231

434,7643,170

134,957

28,99749,520

1,108

1,072150

653,738

26,4145,282

1519,7643,334

54,809

(27.497)

2,253393

63,7941,515

2,141

10,102

(7,871)

370,13669,99]

1,129203,14768,18283,51976,74210,926

883,772

(230.034)

24,341(5.150)

19,191

(8,306)

(67.088)

(67,088)

(67,088)

3,169

3,169

(4,702)

424,421(220.239)

204,182

(25,852)

8,306 67,088 4,702 293,018

S 267,166

Schedule 4(Continued)

61

COMPARATIVE STATEMENT OF CAPITAL ASSETSAND CHANGES IN CAPITAL ASSETS



Schedule 5

Capital Assets, at Cost:LandConstruction in progressBuildings and leasehold improvementsOffice forniture, fixtures

and equipmentVehicles, machinery and equipment

Total capital assets

BalanceJulyl,2004

S 547,254564,119

1,522,760

253,4341,338,815

$ 4,226,382

Additions

$794,725

1,357,215

39,89372,789

S 2,264,622

Deletions

$1,357,215

1,20039,920

$ 1,398,335

BalanceJune 30,

2005

$ 547,2541,629

2,879,975

292,1271,371,684

$ 5,092,669

Investment in Capital Assets:Property acquired with funds from -

General and Other FundsCapital Projects FundTitle III C -1 - Congregate MealsTitle III F - Disease Prevention and Health

Promotion ServicesSenior CitizensSenior CenterOmbudsmanSenior RxDisaster Assistance

Total investment in capital assets

$ 1,688,8032,353,529

2,502

1,800167,594

2,2307,043

-2,881

S 101,7552,151,941

-

.---

10,926-

S 39,9201,357,215

-

--

1,200-

-

$ 1,750,6383,148,255

2,502

1,800167,594

1,0307,043

10,9262,881

$ 4,226,382 $ 2,264,622 S 1,398,335 S 5,092,669

62

Schedule 6

SCHEDULE OF REVENUES AND EXPENDITURESGOVERNMENTAL FUNDS


For the years ended June 30, 2005, 2004 and 2003

2005 2004 2003

Revenues

Taxes - ad valoremIntergovernmental

Charges for servicesInterest income

Public supportMiscellaneous

Total revenues


General government

SalariesFringeTravel

Operating servicesOperating suppliesOther costs

MealsCapital outlay - general and special revenue fundsDebt service

Capital outlay

Total expenditures

$ 3,301,377935,735134,957120,068114,88029,569

$ 4,636,586

S 94,2871,318,136255,23415,264

1,195,944293,536278,821304,8341 12,682

-794,725

$ 3,088,713941,316141,78465,43797,67490,641

$ 4,425,565

S 182,2751,238,796219,65516,196856,703220,877228,385272,866178,553

-583,554

$ 3,027,407858,246100,764105,300104,24460f074

$ 4,256,035

$ 164,4101,119,738199,15612,415

736,179200,71429,140241,024608,042

1,737,725462,862

$ 4,663,463 $ 3,997,860 S 5,511,405

63

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Schedule 9

UNITS OF SERVICE


For the years ended June 30, 2005 and 2004

(Unaudited)

Units

2005 2004Title III B - Supportive Services Fund:

Information and Assistance 7,080 4,897Personal Care 8,969 8,795Outreach 174 427Homemaker 3,353 3,018Recreation 21,427 22,507Transportation 47,010 45,651Legal 327 268Material Aid 26,561 24,188Visiting 1,272 1,431Telephone 2,952 2,570Wellness 10,239 9,942

Title HI C-l - Congregate Meals Fund:Congregate Meals 39,928 40,233

Title III C-2 - Home Delivered Meals Fund:Home Delivered Meals 132,599 125,019

Title III D - Preventive Health Fund:Wellness 925 4Med Managemnet 368

Title III E - National Family Caregiver Program Fund:Information and Assistance 139 124Caregiver Services 3,051 1,455Material Aid 308 515

66

SPECIAL REPORTS OF CERTIFIED PUBLIC ACCOUNTANTS


REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGAND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDITOF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS


Houma, Louisiana.

We have audited the financial statements of the Terrebonne Council on Aging, Inc. (theCouncil), a component unit of the Terrebonne Parish Consolidated Government, State ofLouisiana, as of and for the year ended June 30, 2005, and have issued our report thereon datedOctober 13, 2005. We conducted our audit in accordance with auditing standards generallyaccepted in the United States of America and the standards applicable to financial audits containedin Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Council's internal control overfinancial reporting in order to determine our auditing procedures for the purpose of expressing ouropinion on the financial statements and not to provide an opinion on the internal control overfinancial reporting. However, we noted a certain matter involving the internal control overfinancial reporting and its operation that we consider to be a reportable condition. Reportableconditions involve matters coming to our attention relating to significant deficiencies in the designor operation of the internal control over financial reporting that, in our judgment, could adverselyaffect the Council's ability to record, process, summarize and report financial data consistent withthe assertions of management in the financial statements. Reportable conditions are described inthe accompanying schedule of findings and responses as item 05-1.

1340 West Tunnel Blvd.. Suit* 430 Certified Public

P.O. Box 2168 Accountants j Consultants

Mourns, LA 70361-21*8 A Limited UbIUly Company

Phone (985)868-0139

fax (985)879-1949

67P.O. Box 60600 507-D St. Philip St.

New Orleans, LA 70160-0600 P.O.Box 1205

Heritage Plaza. 17* Floor Thibodaux, LA 7030M 205

Phone (504) 831-4949 Phone (985) 447-5243Fax (504) 833-9093

A material weakness is a condition in which the design or operation of one or more of theinternal control components does not reduce to a relatively low level the risk that misstatementscaused by error or fraud in amounts that would be material in relation to the financial statementsbeing audited may occur and not be detected within a timely period by employees in the normalcourse of performing their assigned functions. Our consideration of the internal control overfinancial reporting would not necessarily disclose all matters in the internal control that might bereportable conditions and, accordingly, would not necessarily disclose all reportable conditionsthat are also considered to be material weaknesses. However, we believe that the reportablecondition described above is not a material weakness.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Council's financialstatements are free of material misstatement, we performed tests with certain provisions of laws,regulations, contracts and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing anopinion 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 ofnoncompliance or other matters that are required to be reported under Government AuditingStandards.

This report is intended for the information of the Board of Directors, management, theLegislative Auditor for the State of Louisiana, federal awarding agencies, and pass-through entitiesand is not intended to be and should not be used by anyone other than these specified parties.Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as apublic document.

0

Certified Public Accountants.

Houma, Louisiana,October 13,2005.

68

SCHEDULE OF FINDINGS AND RESPONSES



Section I Summary of Auditor's Results

a) Financial Statements

Type of auditor's report issued: unqualified

Internal control over financial reporting:

• Material weakness(es) identified? yes X no• Reportable condition(s) identified that are not

considered to be material weaknesses? X yes none reported

Noncompliance material to financial statements noted? yes X no

b) Federal Awards

Terrebonne Council on Aging, Inc. did not receive federal awards exceeding $500,000during the year ended June 30,2005.

Section II Financial Statement Findings

Internal Control

05-1 Criteria - Louisiana Revised Statutes 38:2212 requires all public work exceeding thecontract limit (including labor and materials) be advertised and let by contract to thelowest responsible bidder who had bid according to the contract, plans, andspecifications as advertised. The advertisement required for any contract for publicworks shall be published once a week for three different weeks in a newspaper in thelocality, and the first advertisement shall appear at least twenty-five days before theopening of bids.

69

SCHEDULE OF FINDINGS AND RESPONSES(Continued)



Section II Financial Statement Findings (Continued)

Internal Control (continued)

05-1 (Continued)

Condition - The Council hired a local architect to administer the bidding process andoversee the Re-roofmg/HVAC Upgrades to the Operations Center. The advertisementof bids was written up by the architect and then e-mailed to the local newspaper forpublication. An acknowledgment of receipt from the local newspaper was not receivedby the architect or the Council. The advertisement for bids failed to run in the localnewspaper. The Council was not aware the advertisement for bids was not run in thelocal newspaper. The advertisement for bid request was included in other contractorjournals. Bids were received for this project and the lowest responsible bidder wasaccepted.

Questioned Costs - None

Context - Publication of the advertisement to bidders was not made in the localnewspaper.

Effect - Controls did not ensure complete compliance with state law.

Cause - The Council's system of controls failed to follow up on the publication of theadvertisement to bidders.

Recommendation - We recommend that the Council develop a system that requiresfollow up to assure contract professionals are proceeding in compliance with state law.

Views of Responsible officials of the Auditee when there is Disagreement with theFinding, to the Extent Practical - None.

Section III Federal Award Findings and Questioned Costs

Not applicable.

70

REPORTS BY MANAGEMENT

SCHEDULE OF PRIOR YEAR FINDINGS AND RESPONSES



Section I Internal Control and Compliance Material to the Basic Financial Statements

Internal Control

No material weaknesses were noted during the audit for the year ended June 30,2004.No reportable conditions were reported during the audit for the year ended June 30,2004.

Compliance

No compliance findings material to the basic financial statements were noted during the auditfor the year ended June 30, 2004.

Section II Internal Control and Compliance Material to Federal Awards

Terrebonne Council on Aging, Inc. did not receive federal awards exceeding $500,000 duringthe year ended June 30,2004.

Section III Management Letter

A management letter was not issued in connection with the audit for the year ended June 30,2004.

71

MANAGEMENT'S CORRECTIVE ACTION PLAN



Section I Internal Control and Compliance Material to the Basic Financial Statements

Internal Control

No material weaknesses were noted during the audit for the year ended June 30,2005.

05-1 Recommendation - We recommend that the Council develop a system that requiresfollow up to assure contract professionals are proceeding in compliance with state law.

Management's Corrective Action - In the future, the Council will requestconfirmation that the local newspaper receives the advertisement for public notice andwill follow up with the receipt of the actual publication.

Compliance

No compliance findings material to the financial statements were noted during the audit forthe year ended June 30, 2005.

Section II Internal Control and Compliance Material to Federal Awards

Terrebonne Council on Aging, Inc. did not receive federal awards exceeding $500,000 duringthe year ended June 30,2005.

Section III Management Letter

A management letter was not issued in connection with the audit for the year ended June 30,2005.

72

Terrebonne Parish Council On Aging...The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial

Documents