coordinating and development corporationapp1.lla.state.la.us/publicreports.nsf/fe093bebf2e...tyt c...

LEGISLATIVE AUDITOR

OFFICIAL

DO NOT SEND(Xerox necessarycopies from thiscopy and PLACE

BACK in FILE)

THE COORDINATING AND DEVELOPMENT CORPORATIONSTATEMENT OF FINANCIAL POSITION

STATEMENTS OF ACTIVITIES, FUNCTIONAL EXPENSES,AND CASH FLOWS

JUNE 30, 2007

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.

- I ^ L ARelease Date_

INDEX

Page

Independent Auditor's Report 2

Statement of Financial Position - June 30, 2007 3

Statement of Activities for the Year Ended June 30, 2007 4

Statement of Functional Expenses - Program Servicesfor the Year Ended June 30, 2007 5

Statement of Cash Flows for the Year Ended June 30, 2007 6

Notes to Financial Statements 7-18

Combined Balance Sheet - June 30, 2007 19

Combined Statement of Revenues, Expenditures, and OtherSources/Uses for the Year Ended June 30, 2007 20

Combined Statement of Cash Flows for theYear Ended June 30, 2007 21

Schedule of Federal Awards for the Year Ended June 30, 2007 22

Notes to the Schedule of Expenditures of Federal Awardsfor the Year Ended June 30, 2007 23

Schedule of Findings and Questioned Costfor the Year Ended June 30, 2007 24

Management's Corrective Action Planfor the Year Ended June 30, 2007 25

Report on Compliance and on Internal ControlOver Financial Reporting Based on anAudit of Financial Statements Performed inAccordance with Government Auditing Standards 26-27

Report on Compliance with Requirements Applicable to EachMajor Program and Internal control Over Compliancein Accordance with OMB Circular A-133 28-29

HEARDMCELROY& VESTAL

LLPCERTIFIED PUBLIC ACCOUNTANTS

333 TKXAS STREET

15TH FLOOR

SHRKVEI 'ORT, LA 71101

318 429-1525

318 429-2070 FAX

POST OFFICE Box 1607

SHREVEPORT, LA

71165-1607

PARTNERSSHKNCKK BERNARD, JR., CPAH.Q. GAHAGAN, JR., CPA, APCGERALD W. HEDGCOCK, JR., CPA, APCTIM B. NIELSEN, CPA, APCJOHN W. DEAN, CPA, APCMARK D. ELDREDGE, CPAROBERT L. DEAN, CPASTEPHEN W. CRAIG, CPA

ROY E. PRESTWOOD, CPAA. D. JOHNSON, JR., CPARON W. STEWART, CPA, APCBENJAMIN C. WOODS, CPA/AHV, CVA

OF COUNSELGILBERT R. SHANLEY, JR., CPAC. CODY WHITE, JR., CPA, APCJ. PETER GAFFNEY, CPA, APC

December 21,2007

Board of DirectorsCoordinating and Development Corporation (CDC)Shreveport, Louisiana

Independent Auditor's Report

We have audited the accompanying statement of financial position of the Coordinating and DevelopmentCorporation (CDC) as of June 30, 2007, and the related statements of activities, functional expenses, andcash flows for the year then ended. These financial statements are the responsibility of the Board'smanagement. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financialposition of the Coordinating and Development Corporation (CDC) as of June 30,2007, and the changes inits net assets and cash flows for the year then ended, in conformity with accounting principles generallyaccepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated December 21,2007on our consideration of Coordinating and Development Corporation (CDC)'s internal control over financialreporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grantagreements and other matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to provide an opinionon the internal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards and should be considered in assessing theresults of our audit.

A PROFESSIONAL SERVICES FIRMSHREVKPORT • BOSSIER CITY

WEST [email protected] E-MAII.www.hmvc-pa.com Wi;n ADDRESS

THE COORDINATING AND DEVELOPMENT CORPORATIONSTATEMENT OF FINANCIAL POSITION

JUNE 30, 2007

AssetsCurrentCash & Cash EquivalentsAccounts ReceivableOther Current Assets

Total Current Assets

Other AssetsInvestmentsCertificates of DepositNotes Receivable (Net of CurrentPortion & Allowance forUncollectibles of $4,357)

Total Other Assets

Equipment (Net of AccumulatedDepreciation of $31,707)

Total Assets

Liabilities & Net AssetsCurrentAccounts PayableDue to Louisiana Departmentof Labor/Taxes

Other PayablesNotes Payable - Current Portion

Total Current Liabilities

Long Term LiabilitiesNotes Payable (Net ofCurrent Portion)

Vacation Fund Payable

Total Long Term Liabilities

Total Liabilities

Net Assets (Deficit)

Total Liabilities & Net Assets

379,530131,12913.309

523.968

731,642262,915

18.635

1,013,192

$ 1,537,160

126,773

1,25914,960116.075

259.067

689,8631.099,555

1.789,418

2,048,485

( 511.325)

$ 1,537.160

See Notes to Financial Statements-3-

THE COORDINATING AND DEVELOPMENT CORPORATIONSTATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2007

Unrestricted

RevenuesStepWorkforce DevelopmentNegMarketing & Economic DevelopmentEconomic DevelopmentDues & OtherInterest IncomeCommunity Development

Total Revenues

Unallocated Payments fromAffiliated Organizations

Total Revenues and UnallocatedPayments from AffiliatedOrganizations

Program ServicesWorkforce Development/Step/Neg

Total Program Services

Supporting ServicesInterest ExpenseManagement & General

Total Supporting Services

Unallocated Payments toAffiliated Organization & Charities

Total Expenditures & Unallocated PaymentsTo Affiliated Organizations

Decrease in Net Assets

Net Assets (Deficit) at Beginning of Year

Net Assets (Deficit) at End of Year

$ 273,8842,397,292261,0189,000

151,590799,02954,95942.959

3.989.731

3,989.731

2.932.194

2.932,194

7,343849.712

857.055

655.877

4,445,126

( 455,395)

( 55,930)

( 511.325)


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THE COORDINATING AND DEVELOPMENT CORPORATIONSTATEMENT OF CASH FLOWS


Cash Flows From Operating Activities

(Decrease) Increase in Net Assets $( 455,395)

Adjustments To Reconcile Change In Net AssetsTo Net Cash (Used) Operating ActivitiesDecrease in Accounts Receivable 448,656Decrease in Accounts Payable ( 100,536)Decrease in Due from AIDC 3,526Decrease in Other Payables f 219.796)

Net Cash (Used) By Operating Activities ( 323.545)

Cash Flows From Investing ActivitiesPurchase/Sale of Securities 59,884Repaid Notes Receivable 10,762Increase in Vacation Fund Payable 147.854

Net Cash Provided By Investing Activities 218.500

Cash Flows From Financing ActivitiesLoans Repaid ( 30,470)Debt 85,175

Net Cash Provided By Financing Activities 54, 705

(Decrease) in Cash & Cash Equivalents ( 50,340)

Beginning Cash & Cash Equivalents 429.870

Ending Cash & Cash Equivalents $ 379,530

Note: No income taxes were paid for the year.Interest of $7,343 was paid during the year and none was capitalized.


THE COORDINATING AND DEVELOPMENT CORPORATIONNOTES TO FINANCIAL STATEMENTS

JUNE 30, 2007

NOTE A - ACCOUNTING POLICIES

1. The accompanying financial statements have been prepared on the accrualbasis, whereby all revenues are recognized when earned and expenditures arerecorded when incurred. The Coordinating and Development Corporation (CDC)uses funds to report on its financial position and the results ofoperations. Fund accounting is designed to demonstrate legal compliance andto aid financial management by segregating transactions related to certaingrants/programs/divisions. A fund is a separate accounting entity with aself-balancing set of accounts. Funds are used to account for all of CDC'sactivities, and divisions are used to provide for segregation of programswithin CDC.

2. The Coordinating and Development Corporation (CDC) is a private, not-for-profit, IRS Section 501(c)(4) Corporation. The Corporation operatesprimarily in the ten parishes of Northwest Louisiana. It is governed by anelected Board of Directors and provides business, industrial and economicdevelopment to both the private sectors and area governments.

3. Depreciation - Depreciation is provided on the straight line method over theuseful life of the office equipment. Equipment is recorded at cost, andincludes all items with cost exceeding $500 and a useful life greater thanone year.

4. Cash & Cash Equivalents - The Company considers all highly liquid debtinstruments with a maturity of three months or less to be cash equivalents.

5* Divisions - The following divisions, reported as funds, are maintained:

1. Division of Economic Development2. Division of Workforce Development3. Division of Project Review4 . Division of Natural Resources5. Division of Local Funds6. Division of Community Development7 . Division of 8%8. Division of IRP9. Division of TD10. Division of Marketing & Economic Development11. Division of Culture, Recreation & Tourism12. Division of Step

The reporting of all divisions in one report is in compliance with OMBCircular A-133.

6. Transfers In/Transfers Out - Transfers in/out represents funding from/to theDivision of Local Funds.

7. Budgets - Budgets are not required for all divisions.

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JUNE 30, 2007

NOTE A - ACCOUNTING POLICIES (continued)

8. Investments - Investments are presented in the financial statements at fairmarket value.

9. Temporarily Restricted Assets - As discussed in Note C, the Company has apolicy that reimburses employees for unused vacation time, which isreflected as a restricted asset. These restrictions will expire when thevacation time is used or the individuals retire.

10. Capitalized Interest - The Company did not capitalize interest in year endedJune 30, 2007.

11. Advertising - The Company expenses non-direct response advertising asincurred.

12. Impairment - The carrying value of property, equipment and intangibles isevaluated periodically in relation to the operating performance and futureundiscounted cash flows of the underlying businesses. Adjustments are madeif the sum of expected future cash flows is less than book value. For theyear presented, no adjustment was necessary.

13. Collateral - On all loans through the Division of IRP, the Company requiresadequate collateral and secures a mortgage which is usually real estate.

14 . Allowance for Doubtful Accounts - The Company evaluates its losses annuallyon the IRP Division and records this as an allowance. Bad debts are writtenoff directly as they are identified, and a minimum allowance of 6% of thenet loan balance is reserved.

Interest income is recorded as earned. The Board will write offnotes/accounts receivable at such time as all efforts have been exhaustedto recover the asset. Loans are considered past due when payments are 30days in arrears.

NOTE B - ACCOUNTS RECEIVABLE

Accounts receivable for the year ended 6/30/07 are as follows:

6/30/07Receivable Division Amount

La. Dept. of Labor Step $ 6,171La. Dept. of Labor Workforce Development 53,726Var. Municipalities Community Development 5, 585Colson Tri District (TD) 2,484Var. Municipalities Ed 3,268Var. Municipalities Ind/Mkt 9,000Interest IRP 895Escrow Funds Local Funds 50,OOP

-8-


JUNE 30, 2007

NOTE C - VACATION ESCROW

During the year ended 6/30/90, the Company began accruing the funding forits vacation fund, which allows personnel who leave or retire the abilityto sell back their unused vacation time.

During the current year, additional time earned and raises resulted in thefollowing adjustments to the account:

FYE 6/30/07 $ 1,037,603

Change 61.952

Unfunded $ 1.099.555

The vacation fund is unfunded at year end and is reflected as a liabilityto the local fund.

NOTE D - INVESTMENTS

The following funds are held in the IRP Division:

MarketValue@ 6/30/07

The Bank of New York Trust Company

These funds serve as collateral on the $320,000 note described in Note T andthe cost is equal to the market value.

NOTE E - RELATED PARTIES/AFFILIATES

The CDC operated several divisions and is affiliated with three activenonprofit entities and two for-profit entity as follows:

Affiliates

(A) Tri District Development Corporation (TD) - A revolving loan programof which 'CDC membership constitutes 1/3 control. This entity's yearend is 9/30. During the year ended 6/30/07, the Corporation received$12,460 in revenues from Tri District.


JUNE 30, 2007

NOTE E - RELATED PARTIES/AFFILIATES (continued)

{B) Ark-La-Tex Investment & Development Corporation (AIDC) - This Companyis responsible for funding 503/504 loans. This entity's year end is9/30. CDC is reimbursed by AIDC for its employee's time. During theyear ended 6/30/07, the Company paid AIDC rent on its office buildingsand equipment in Shreveport, Louisiana and Natchitoches, Louisiana ona 30 day lease totaling $261,729. CDC contributed $467,037 to AIDC in6/30/07.

(C) Ark-La-Tex Regional Export & Technology Center. Inc. (ARETC) - Anonprofit entity responsible for implementing/developing import/exporteconomical advances in the ten parish area. During the year ended6/30/07, CDC paid the Company $188,840.

(D) Red River Valley Bidco Inc. (RRVB) - A for-profit entity owned by AIDCformed to encourage the formation of business and industrialdevelopment corporations.

(E) N.W.E.D. Inc. - A for-profit entity.

Divisions

(A) Division of Economic Development - Funded by the federal government and• CDC, whose purpose is to aid in economic growth in the surrounding tenparish area. This program requires a matching commitment of 75/25.For the year ended 6/30/07, CDC had transferred $851 to Local Divisionfunds. During the current year, the Division received the followingrevenues:

Various $ 29,340Federal Funds 122,250

5151.590

(B) Division of Community Development - Funded by contracts with entitiesto provide administrative services for entities receiving LouisianaCommunity Development Block Grant (LCDBG) funds. In prior years, theDivision was called "Division of Planning & Programming". During thecurrent year, the Division received $154,193 of Local Funds.

(C) Division of Natural Resources - Funded by the Louisiana Association ofPlanning & Development Districts and CDC. There was no activity duringthe current year.

(D) Division of Project Review - Its purpose is to review federal grants.There was no activity during the current year.

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JUNE 30, 2007

NOTE E - RELATED PARTIES/AFFILIATES (continued)

(E) Division of Culture. Recreation & Tourism - Funded in prior years topromote tourism to Northwest Louisiana. There was no activity duringthe current year.

(F) Division of Local Funds - Any activity not included in the above,the year ended 6/30/07,

For

(G) Division of Marketing & Economic Development - This program is a jointagreement between the Parish of Caddo and CDC for the promotion ofCaddo Parish, LA. During the year, the Division received $61,909 fromLocal Funds.

(H) Division of IRP - A relending program administered by CDC as furtherdescribed in Note Q.

(I) Division of TD This program represents funds received inmanaging/administering Tri District Development Corporation, a relatedentity whose purpose is administration of revolving loan fund. TheDivision received funding of $1,320 from Local Funds.

(J) Division of Step - Job Readiness (JR) activities provide participantsan opportunity to engage in activities that are beneficial to theirmove toward self-sufficiency and their family's well being. The Stepprocess is to prepare the client to find a job as quickly as theparticipants workplace literacy level, job skills and experience allowand or assist participants in the area of job retention and incomegrowth.

NOTE F - OPERATING LEASES

The Company leases facilities & equipment owned by Ark-La-Tex Investment &Development Corporation and is currently leasing under a 30 day leaseagreement. Facilities are located in Caddo, Desoto, Bossier, Webster andNatchitoches Parish.

NOTE G - RETIREMENT PLAN - DEFINED CONTRIBUTION

The Company contributed $118,946 during the year ended 6/30/07, and allemployees with greater than six months employment with the Company areeligible. The Company contributed 15% of the employees' gross pay.

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JUNE 30, 2007

NOTE H - INDIRECT COSTS

The Company allocated indirect costs as follows:

Amount For Allocation6/30/07 Formula

Rent $ 261,729 Direct Labor/RevenueAll Other AdministrativeExpenses (Less than $50,000) Direct Labor/Revenue

NOTE I - WIA

CDC acts as a recipient/subrecipient of WIA funds from the State ofLouisiana, Department of Regulatory Services (Labor). All revenuesrepresent reimbursed cost under the terms of the various contracts with theState.

1- WIA-AdultThe purpose of this portion of WIA is to establish programs to prepareunskilled adults for entry into the labor force and to afford jobtraining to those economically disadvantaged individuals who are inneed of such training to obtain productive employment.

WIA-YouthPrograms under this part are conducted year round. Individualseligible under this part must be economically disadvantaged and betweenthe ages of fourteen and twenty-one.

WIA-Dislocated WorkerThis program allows for dislocated workers to be retrained and preparedthem to re-enter the labor force.

2. Training - ClassroomThis is used to record costs of tuition, books, and tools, ifnecessary, for program participants.

3 . Training - Work ExperienceThis is used to record the expenditures associated with the part of theprogram that gives participants an introduction to the "world of work".

4. Training - OJTThis is used to record expenditures associated with on the jobtraining. When an individual meets the requirements to enter thisprogram, WIA will reimburse the individual's employer for one half ofthe participant's salary for a period not to exceed six months.

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JUNE 30, 2007

NOTE I - WIA (continued)

5. Support ServiceCost of supportive services which are necessary to enable an individualeligible for training under WIA, but who cannot afford to pay for suchservices, to participate in a training program funded under WIA.

6. Participant SupportAccounts for payments made to participants in the WIA programs.

7. AdministrativeAdministrative costs are limited to ten/thirty percent of the totalcontract, depending on the program.

8. HistoryThe WIA Division is administered by The Coordinating and DevelopmentCorporation (CDC) which is a corporation exempt from income tax underInternal Revenue Code Section 501 (c) (4). The Coordinating andDevelopment Corporation (CDC), originally organized and chartered in1954, is a not-for-profit, private corporation whose service areaincludes the ten parishes and ninety-two municipalities of NorthwestLouisiana. CDC provides a wide range of services to its membershipthrough its six operating Divisions: Economic Development, WorkforceDevelopment, Community Development, IRP, TD, Marketing & EconomicDevelopment and Local.

The Coordinating and Development Corporation (CDC) also providesspecialized services to its membership through assisting the followingcorporations: Ark-La-Tex Investment & Development Corporation, Mid-Continent Capital Corporation, Tri District Development Corporation,River Cities High Technology Group, Inc. , Industrial Trust Corporation,Louisiana Foreign Sales Corporation, Ark-La-Tex Regional Export andTechnology Center, Inc., and the Red River Valley BIDCO, Inc. Servicesinclude: business investment and finance, employment and training,public works and infrastructure, economic development, internationalbusiness development, planning and management, energyconservation/natural resources and aesthetics development.

9. NEG (National Emergency Grant)

In 2005, Hurricane Katrina caused extensive damage to the coastline andcommunities of South Louisiana. In response to this natural disasterand in an effort to supplement State and local efforts and capabilitiesto save lives and to protect property and public health and safety, andto provide assistance to eligible dislocated workers. Federalassistance was made available through the Hurricane Katrina ProjectOne, a disaster grant awarded under the National Emergency GrantsProgram, in accordance with Sec. 173 of the Wo4kforce Investment Act.The Louis iana Department of Labor (LDOL) is the grantee for thi sproject and hereafter may be referred to as "recipient".

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JUNE 30, 2007

NOTE I - WIA (continued)

9. NEG (National Emergency Grant) (continued)

Hurricane Katrina and the resultant flooding resulted in thedisplacement of approximately 1.2 million individuals in the NewOrleans metropolitan region, the Florida Parishes of SoutheastLouisiana and the surrounding areas. It is estimated thatapproximately 750,000 of this number were working at the time ofdisplacement. Many of these displaced individuals will not be able toreturn to their homes for a substantial period of time. Based on thismassive disloction, this grant will be used to provide temporaryemployment for Katrina displaced individuals for up to twelve (12)weeks.

CDC will recruit and place participants in temporary jobs in public andnon-profit entities that include projects that provide food, clothing,shelter and other humanitarian assistance for individuals struck by thedisaster.

10. BudgetsBudgets are adopted on a basis consistent with generally acceptedaccounting principles. All appropriations lapse at year end.

11. EquipmentEquipment purchased by the Labor funds remains the property of thegrantor and is not capitalized. Total cost of equipment owned by Laborcurrently being used by CDC is:

Workforce Development $681,025

NOTE J - UNRESTRICTED ASSETS

All funds are unrestricted for use within the funds. In prior years, thevacation fund was restricted; however, management has determined this to beunrestricted.

NOTE K - EQUIPMENT

During the year ended 6/30/07, the following occurred:

Furniture & Equip.Accumulated Depr.

Net

Life5-7yrs.

MethodS/L

6/30/06Balance$31,70731,707

Additions$ 0

0

6/30/07Balance$31,70731,707

All repairs during the year were expensed.

-14-


JUNE 30, 2007

NOTE L - CASH & CERTIFICATES OF DEPOSIT

Cash & Certificates of Deposit consist of the following:

Division

Certificates of Deposit

BankingInstitution

RegionsCoushattaChase

Amount @June 30. 2007

$

$

213,1856,10443,626

262,915Checking Accounts

$ 92,951

From Note D S 731,642

JP Morgan Trust $ 286.579

The monies at each banking institution are insured for $100,000. The moniesat each brokerage institution are insured for $500,000. The uninsuredamount @ 6/30/07 is $344,827.

NOTE M - LOCAL FUND REVENUES

Revenues for the year consisted of:Economic Development Funds $ 350,000Dues 286,087Other 12,994Administrative Funds from

Red River Valley Bidco, Inc. 83,231Facility Planning Funds 66 . 717

$ 799,029

NOTE N - ESTIMATES

The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimates andassumptions that affect certain reported amounts and disclosures.Accordingly, actual results could differ from those estimates.

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JUNE 30, 2007

NOTE O - FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of financial instruments approximates the carrying (book)value because of the short maturity of these assets.

NOTE P - OPERATIONS/CREDIT RISK

The Company is dependent upon the continuance of the government grantfunding to support the economic development in the ten parish area. Theloans are subject to risk of collection; however, the management believesthe collateral is adequate.

NOTE Q - IRP LOANS

The Company has entered into a relending program with the United StatesDepartment of Agriculture (USDA) through the Rural Development Program. Theprogram allows for a total lending program of $890,762 @ 1% interest,principal due over a 27 year amortization beginning after the program'sthird year. The monies are advanced/loaned by USDA upon loan approval toqualified businesses. As of 6/30/07, the following has transpired:

(Notes Payable)Loans FromUSDA

Amortization6/08 $ 30,9006/09 &Thereafter 689,863

$ 720.763

The Company has made a total of nine loans @ 6/30/07. The Company hascharged 6-9.5% interest on debt and loans are normally for 10 year terms.

Notes Receivable $ 36,301Current Portion ( 13,309)Allowance _J 4. 357)

$ 18.635

The reserve is estimated to be 12% of the unpaid balance.

Accrued interest @ 6/30/07 is $895.

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JUNE 30, 2007

NOTE Q - IRP LOANS (continued)

Date ofLoan

October, 2001July , 1999January, 2000November, 1998January, 1999November, 1998October, 1999October, 1999July, 2000

InterestRate

8.09.56.09.59.59.57.58.57.5

Term

10 years10 years10 years9 years15 years7 years10 years10 years12 years

Lendee

Rockin RoosterH . FanningHendrix Mfg.KJH InvestmentsKa j ohn Inv .Lites BrothersPlantation SilkRivertown Dev.Rolling Knolls

OriginalLoan

$ 100,00052;000222,000135,000150,00050,72581,000100,000120,000

Balance@ 6/30/07

$ 0000000

36,3010

$1,010,725

Plantation Silk was written off in the prior year as being uncollectible.

Due 6/086/096/10

$ 13,30914,4858.507

All loans are current at June 30, 2007.

NOTE R - BOARD OP DIRECTORS

All services are on a voluntary basis.reimbursed travel expenditures.

NOTE S - RISK MANAGEMENT

The board members were only

The Company is exposed to various risk of loss and insured against theselosses through comprehensive commercial insurance. Claims resulting fromthese losses have historically not exceeded insurance coverage.

NOTE T - CONTINGENCIES

The Company is a participant/guarantor to a construction contract in Sabineas of the year end. The project is owned by AIDC and costs are projectedto range between $500,000 and $1,000,000.

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JUNE 30, 2007

NOTE U - NOTES PAYABLE HIBERNIA

On December 23, 2003, The Coordinating and Development Corporation receiveda letter of credit of $2,150,000, maturity date January 1, 2015 fromHibernia Bank, which is secured by certain pieces of real estate owned byAIDC and the following Certificates of Deposit held under the name of TheCoordinating and Development Corporation.

Hibernia CD, dated 3/15/06, maturitydate 3/15/08, interest rate 2.87% $ 248.119

This CD was asigned to AIDC.

This letter of credit is collateral for bonds borrowed by The Coordinatingand Development Corporation from the Louisiana Local GovernmentEnvironmental Facilities & Community Development Authority Rev Bonds for thesame amount ($792,668) payable at floating interest rate, which at 6/07 was6.03%.

The Coordinating and Development Corporation has assigned all of this toAIDC in that the purpose of the loan is to develop buildings in NorthwestLouisiana and the repayment of this debt is to come from rentals.

An additional loan from Hibernia to The Coordinating and DevelopmentCorporation of $520,000, with varying interest rates (at 6/30/07, it was8.25%) secured by funds held by The Coordinating and Development Corporationhas also been assigned to AIDC.

This debt is reflected as being owed by AIDC as per the agreement betweenthe two entities.

NOTE V - NOTES PAYABLEi

The Company has the following note:Total Current

Regions Bank, interest @ June, 2007 6.88%,interest payable monthly, note datedMay, 2007. On 8/1/07, this note was fixed @7.1% payable $4,349.2I/month maturing 8/08.The entire amount is considered current due tomanagement intent. $ 50,175 $ 50,175

Chase Bank, Line of Credit of $40,000,interest rate @ June 30, 2007 9.25% 35.000 35.000

85,175 85,175

USDA (Note Q) 720,763 30.900

-18-

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THE COORDINATING AND DEVELOPMENT CORPORATIONSCHEDULE OF FEDERAL AWARDS


GrantFederal Grantor Federal CFDA # Term

Nonmaior ProgramsUS Department of Commerce

Economic Development Adm 11.30011.300

Total

Ha lor ProgramsWorkforce Investment Act/Dept of LaborAdult FY06 17.258Adult PY07 17.258

Total 17.258

Dislocated Worker FY06 17.260PY07 17.260

Youth PY06 17.259

National Emergency PY06 17.260Transfer FY06 17.260

FY07 17.260

Total Less National Emergency

Step FY06 17.260

Admi n PY06Program PY06

Admin PY07Program PY07

1/1/06-12/31/061/1/07-12/31/07

7/1/05-6/30/067/1/06-6/30/07

7/1/05- 6/30/067/1/06-6/30/07

7/1/05-6/30/06

7/1/05-6/30/067/1/05-6/30/067/1/06-6/30/07

Total

$ 135,4501.344.500$1.479.950

$ 126,3651.460.301$1.586.666

ProgramAmount

$ 50 , 00050.000100.000

52,313618.569670.882

395,255968.097

1.363.352

1.032.182

400,000114,956120.000

3.301.372

312.704

$ 4.114.076

Youth

$ 93,834938.348

$ 1.032.182

ExpendituresRevenues For ForYear Ended Year EndedJune 30. 2007 June 30. 2007

$ 50,000 $0

50.000

46,830493.842540.672

244,376514.718759.094

863.930

261,018114,956118.640

2.397.292

273.884

$ 2.982.194 $

DislocatedWorkers

$ 35,933 $359.322

$ 395.255 $

$ 76,638 $891 .459

$ 968.097 $

50,0000

50.000

46,830493.842540,672

244,376514.718759.094

863.930

261,018114,956118.640

2.397.292

273.884

2.983.194ssss s ^ s a

Adult

5,68346.83052.513

49,727568.842618.569


THE COORDINATING AND DEVELOPMENT CORPORATIONNOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Basis of Presentation

The accompanying schedule of expenditures of Federal awards includes theFederal grant activity of The Coordinating and Development Corporation andis presented on the accrual basis of accounting, which is the same basis ofaccounting used for the presentation of the general purpose financialstatements. The information in this schedule is presented in accordancewith the requirements of OMB Circular A-133, Audits of States, LocalGovernments, and Nonprofit Organizations.

The Coordinating and Development Corporation did pass through Federal awardsto subrecipients during the fiscal year, however no one recipient received$300,000 nor did CDC expend any Federal awards in the form of noncashassistance.

-23-

THE COORDINATING AND DEVELOPMENT CORPORATIONSCHEDULE OF FINDINGS AND QUESTIONED COST


We were engaged to audit the financial statements of The Coordinating and DevelopmentCorporation (CDC) as of and for the year ended June 30, 2007 and have issued our reportthereon dated December 21, 2007. We conducted our audit in accordance with auditingstandards generally accepted in the United States of America and the standards applicableto financial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Our report expresses an unqualified opinion on thefinancial statements for the year ended June 30, 2007.

Section I - Summary of Auditor's Results:

a. The report on internal control and compliance material to the financial statementsreported the following items:

- Internal Control - There were no reportable conditions

- Compliance - No noncompliance that is material to the financial statements

b. Federal Awards:

- Workforce Investment - Grants awarded totaling $3,701,372

- Step - Grants awarded totaling $312,704

- Economic Development - Grants awarded totaling $100,000

c. Identification of Major Programs:

- WIA - Total revenues received during this year were $2,658,310

Section II - Findings Relating to the Financial Statements Which are Required to beReported in Accordance with Generally Accepted Governmental Auditing Standards:

- None

Section III - Findings and Questioned Costs for Federal Awards Which Shall Include AuditFindings as Defined by OMB Circular A-133:

- None

See Accountant's Report and Notes-24-

THE COORDINATING AND DEVELOPMENT CORPORATIONMANAGEMENT'S CORRECTIVE ACTION PLAN


SECTION IINTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS

No findings were reported in theschedule of findings and questionedcost.

Response - N/A

SECTION IIINTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS


Response - N/A

SECTION IIIMANAGEMENT LETTER


Response - N/A

See Accountant's Report and Notes-25-



333 TEXAS STHKET15'i'H FLOOR

SHREVEPORT, LA 71101

318 429-1525318 429-2070 FAX

POST OFFICE Box 1607

SHKF.VEPORT, LA

71165-1607

PARTNERSSPENCER BERNARD, J R . , CPAH.Q. GAHAGAN, JR., CPA, APCGERALD W. HEOGCOCK, JR. , CPA, APCTlM B. NIELSEN, CPA, APC

JOHN W. DF.AN, CPA, APCMARK D, ELDRKDGK, ci'AROBERT L. DEAN, CPASTEPHEN W. CRAIG, CPA

ROY E. PRESTWOOD, CPAA. D. JOHNSON, JR. , CPARON W. STEWART, CPA, APCBEN.IAMIN C. WOODS, CPA/ABV, CVA

OF COUNSELGILBERT R. SHANLEY, JR., CPAC. CODY WHITE, JR., CPA, APCJ. PETER GAFENEY, CPA, APC

December 21,2007

Board of DirectorsThe Coordinating and Development Corporation (CDC)Shreveport, Louisiana

Report on Compliance and on Internal Control Over Financial ReportingBased on an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards

We have audited the financial statements of The Coordinating and Development Corporation (CDC) asof and for the year ended June 30, 2007, and have issued our report thereon dated December 21, 2007.We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards ,issued by the Comptroller General of the United States.

Internal Control Over Financial ReportingIn planning and performing out audit, we considered The Coordinating and Development Corporation(CDC)'s internal control over financial reporting as a basis for designing our auditing procedures for thepurpose of expressing our opinion on the financial statements but not for the purpose of expressing anopinion on the effectiveness of The Coordinating and Development Corporation (CDC)'s the internalcontrol over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management oremployees, in the normal course of performing then* assigned functions, to prevent or detectmisstatements on a timely basis. A significant deficiency is a control deficiency , or combination ofcontrol deficiencies, that adversely affects the organizations's ability to initiate, authorize, record,process, or report financial data reliably hi accordance with generally accepted accounting principles,such that there is more than a remote likelihood that a misstatement of the organization's financialstatements that is more than inconsequential will be prevented or detected by the organization's internalcontrol.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that a material misstatement of the financial statements will not beprevented or detected by the organization's internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in thefirst paragraph of this section and would not necessarily identify all deficiencies in internal control thatmight be significant deficiencies or material weaknesses. We did not identify a deficiencies in internalcontrol over financial reporting that we consider to be material weaknesses, as defined above.

A PROFESSIONAL SERVICES FIRMSHRI-VEPORT • BOSSIER CITY

WEST [email protected] II-MAH.www.limvcpa.com WKU AIJDUI-SS

Compliance and Other MattersAs part of obtaining reasonable assurance about whether the financial statements of The Coordinatingand Development Corporation (CDC) are free of material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliancewith which could have a direct and material effect on the determination of financial statement amounts.However, providing an opinion on compliance with those provisions was not an objective of our auditand, 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 Auditing Standards.

This report is intended for the information and use of the board of directors, management, federalawarding agencies, and others within the organization, and is not intended to be and should not be usedby anyone other than these specified parties. However, this report is a matter of public record and itsdistribution is not limited.



333 TEXAS STREET15TM FLOOR

SHREVEPOKT, LA 71101

318 429-1525318 429-2070 FAX

POST OFFICE Box 1607SHREVEPORT, LA

71165-1607

PARTNERSSPENCEK BKKMAKD, JR., CPAH.Q. GAHAGAN, JR. , CPA, AFCGERALD W. HI-DGCOCK, JR., CPA, APCTlM B. NlELSEN, CPA, APC

JOHN W. DEAN, CPA, APCMARK D. ELDHKDGE, CPAROHERT L. DEAN, CPASTEPHEN W. CRAIG, CPA

ROY E. PRESTWOOD, CPAA, D. JOHNSON, JR., CPARON W. STEWART, CPA, APCBENJAMIN C. WOODS, CPA/AHV, CVA

OF COUNSELGILBERT R. SHANLEY, JR. , CPAC. CODY WHITE, JR., CPA, APCJ. PETER GAFFNEY, CPA, APC

December 21,2007

Board of DirectorsThe Coordinating and Development Corporation (CDC)Shreveport, Louisiana

Report on Compliance with Requirements Applicable to EachMajor Program and Internal Control Over Compliance in

Accordance with OMB Circular A-133

ComplianceWe have audited the compliance of The Coordinating and Development Corporation (CDC) with thetypes of compliance requirements described in the U. S. Office of Management and Budget (OMB)Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for theyear ended June 30, 2007. The Coordinating and Development Corporation (CDQ's major federalprograms are identified in the summary of auditor's results section of the accompanying schedule offindings and questioned costs. Compliance with the requirements of laws, regulations, contracts andgrants applicable to each of its major federal programs is the responsibility of The Coordinating andDevelopment Corporation (CDC)'s management. Our responsibility is to express an opinion on TheCoordinating and Development Corporation (CDC)'s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133require that we plan and perform the audit to obtain reasonable assurance about whether noncompliancewith the types of compliance requirements referred to above that could have a direct and material effecton a major federal program occurred. An audit includes examining, on a test basis, evidence about TheCoordinating and Development Corporation (CDC)'s compliance with those requirements and performingsuch other procedures as we considered necessary in the circumstances. We believe that our auditprovides a reasonable basis for our opinion. Our audit does not provide a legal determination on TheCoordinating and Development Corporation (CDC)'s compliance with those requirements.

In our opinion, The Coordinating and Development Corporation (CDC) complied, in all materialrespects, with the requirements referred to above that are applicable to each of its major federal programsfor the year ended June 30,2007.

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Internal Control Over ComplianceThe management of The Coordinating and Development Corporation (CDC) is responsible forestablishing and maintaining effective internal control over compliance with requirements of laws,regulations, contracts and grants applicable to federal programs. In planning and performing our audit,we considered The Coordinating and Development Corporation (CDC)'s internal control over compliancewith requirements that could have a direct and material effect on a major federal program in order todetermine our auditing procedures for the purpose of expressing our opinion on compliance, but not forthe purpose of expressing an opinion on the effectiveness of internal control over compliance.Accordingly, we do not express an opinion on the effectiveness of The Coordinating and DevelopmentCorporation (CDC)'s internal control over compliance.

A control deficiency in an entity's internal control over compliance exists when the design or operationof a control does not allow management or employees, in the normal course of performing their assignedfunctions, to prevent or detect noncompliance with a type of compliance requirement of a federalprogram on a timely basis. A significant deficiency is a control deficiency, or combination of controldeficiencies, that adversely affects the entity's ability to administer a federal program such that there ismore than a remote likelihood that noncompliance with a type of compliance requirement of a federalprogram that is more than inconsequential will not be prevented or detected by the entity's internalcontrol.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results inmore than a remote likelihood that material noncompliance with a type of compliance requirement of afederal program will not be prevented or detected by the entity's internal control.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in internal control that mightbe significant deficiencies or material weaknesses. We did not identify any deficiencies in internalcontrol over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of the board of directors, management, federalawarding agencies and pass-through entities, and others within the organization and is not intended to beand should not be used by anyone other than these specified parties.

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