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HOPE for the Homeless, Inc.

Financial Statements Years Ended December 3 1 , 2008 and 2007

Under provisions of state law, this report is a public document. Acopy of the report has been subnnitted to the entity and otherappropriate public officials. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the parish clerk of court.

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Financial Statements Years Ended December 31 ,2008 and 2007

HOPE for the Homeleiss, Inc.

Contents

Report on Reviewed Financial Statements 3

Reviewed Financial Statements

Statements of Financial Position 4

Statements of Activities 5

Statements of Cash Flows 6

Summan' of Significant Accounting Policies 7-8

Notes to Financial Statements 9

Supplemental Material

Independent Accounts' Report on Applying

Agreed-Upon Procedures 11-14

Schedule of Findings 15

RBMn Shrovepofi Office

Dallas Office

Report on Reviewed Financial Statements

To tho Board of Din^ctors HOPE lor the Homeless, Inc. Shrcveport, Louisiana

We have reviewed the accompanying statements of financial position of HOPE for the Homeless, Inc. ("The Organization") as of December 3J, 2(K)8 and the related statements of changes in net assets and cash flows for the years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of the HOPH for the Homeless, Inc.

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

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles,

Tlie 2007 financial statements of HOPE for the Homeless, Inc. were reviewed by other accountants whose report dated June 30, 200S, stated that they were not aware of any material modifications that should be made to tho.se statements in order f<>r them to be in conformitv with generally accepted accounting principles.

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Shreveport, Louisiana December 4, 20(W

Assets

Liabilities (all current) and Net Assets

HOPE for the Homeless, Inc.

statement of Financial Position

Dcct'iiibcr 3L 2008 2007

Cash Accounts receivable Grants receivable

21,758 1,400

66,430

524,535 5,411

15,663

Total current assets 89.588 45,609

Total Assets 89.588 45,609

Current liability - accounts payable 62.353 8,471

Net assets ~ ail unrestricteti 27.235 37,138

$89,588 $45,609 St'i' ai nDi'tiMfn inii cKt'oiifU.niis' m IL'H wpon. xttimihin- nfacOiunuiKi jx-ifii'a-^ ttud tiWi'.i h>j»uiiuiiii $iun'm>.'Hh.

Revenues and other support

HOPE for the Homeless^ inc.

statement of Activities

Dt'caubcr ^1, 2008 2007

ConLractual revenue-grants (sVote I) Contributions Service fees Special events Other

$259,745

48,819 51,926

4,016

5 2 1

$ n 8,067

77,651

H 3 8 I

6,220 1,220

Total revenues and other support 365,027 287,539

Expenses:

Board meetings Professional services Assistance Insurance Office supplies and expense Postage Special es'ents SaLiry and benefits Travel and conference Other

Total expensc!S

Change in net assets

Net assets-beginning of year

1,039

39,939

51,594

6 J 4 0

34,934

65

2,982

234,850

2,362

425 374,930

(9,903)

37.138

872

6,974

-

12,803 25,346

325 4,933

210,149

1,963

1,422

264,787

22.752

14,386

Net assets-end of venr $27,235 $ 37,138 Si'v aCi-'oinff(invt'i<L: m atmUmLs rci'jr>i n-fHTt. ^unimuty qf,icC'H<iin)>^ pohcn':^ iiitj tiuic.-i to fiiumt-kil .•Utiiefth.'ritx

^^^-HOPE for the Homelfe^ IniSI: ',>^".-

statement offfiaSffliilW(iii|j&^^

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DeccDihcr ol, 2008 2007

Cash flows from operating activities

Change in net asseLs Change in receivables Change in payables

Net cash provided by (used by) o^u-rating activities

(9,903) (46,756) 53,882

$ 22,752 10,818

(21,968) (2,777) 11,602

Net increase (decrease) in cash (2,777) 1.602

Cash at beginning of vear 24,535 12.933

Cash at end of vear $ 21,758 $ 24,535 .Vc fii.-iynttiK'm-ut}' m-cf»mi<">f.y' revicu report, mmiiiun' fiftia-onnrtiisimictes (mi notes lofmanctoi )f0h'ti>eti(.\

HOPE for the Homel^S^^lri^l

Summary of Significant AccountlngiPolicles' :

Nature of Activities

HOP!: for the Homeles.s, Inc. (HOPE), is a nonprofit corporation organised under the laws of the State of Louisiana. HOPH was established lo help meet the housing and service needs of the homeless in Ni->rthwesl Louisiana, and help transition them to self sufficiency. Substantiallv all of LlOPE's revenue is from grants provided bv the State of Louisiana, membership and service fees, and donations.

Basis of Accounting

The financial statements of HOPE have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Concentrations of Credit Risk

The majority of HOPE'S revenue comes from Slate of Louisiana grants and service fees paid bv local agencies. HOPE is therefore heavily dependent on the State and Federal govemment for its operations.

Income Tax Status

Use of Estimates

HOPE is a tax-exempt organization as described in Section 501(c)(3) of the Internal Revenue Code and is classified by the Internal Revenue Services as an organization other than a private foundation. HOPE, therefore, is not subject lo income taxes.

Management uses estimates and assumptions in preparing financial statements. Tliose cslimales and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent as.sets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant estimates made by management are the collectibility of recorded receivables.

HOPE for the Homeless, Inc.

Summary of Significant Accounting Policies

(Concluded)

Cash and Cash Equivalents

HOPE'S cash, as stated for cash flow purposes, consists of cash on hand and demand deposits with financial institutions.

Revenue and Support

Contributions received mav be recorded as unrestricted, temporarily restricted, or permanent I v restricted support, depending, on the existence and/ or nature of anv donor restrictions.

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

Support thai is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulaled time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement o\ Activities as net assets released from restrictions.

Compensated Absences

Full-time employees earn eighty hours oi general leave after one year of service, plus six hours for each additional month worked, up to a total of 152 houry. Leave mav not be accumulated.

Accounts Receivable

Accounts receivable are presented in the accompanying financial statement net of any allowance ior doubtful accounts. Management periodically reviews pas due accounts io determine if circumstances indicate thai all, or a portion, of a customer account will not be collectible. Based on this assessment, managenient reserves that portion of the receivable deemed to be uncollectible. At December 31, 2008 and 2007, no allowance for doubtful accounts was recorded.

HOPE for the Homeless, Inc.

Notes to Financial Statements'

1 . Revenue and Support

During the year ended December 3L 2(K)8, HOPE received contractual revenue from state grants in the amount of $25* .745. The continued existence of these funds is based on periodic contract renewals with various funding stnirces; amounts renewed may differ significantly from those in existence at December 31. 2008. All revenue from these grants is subject to audit and retroactive adjustment by the respective third-party fiscal intermediaries; adjustments in future periods may be necessary as final grant settlements are determined. Such grant revenue is summarized as follows:

2008 20D7

Louisiana Department of

Health and Hospitals

Louisiana Department of Social

Services

$142,317

117,428

$259,745

$118,067

SI 18-067

2. Related I lOPR shared ttic cost ol' its cxccitiivc director wiili Ceiuerpoint Community Party Services, an infonnation and rcterral source for human SCIAMCCS. including Transact- homeless services, in Northwest Louisiana through Auun^l 2008, In addition. ious HOPE opcniied in Facilities provided by C'cnicrpoinl through the sanje lime

period. During 2007 and 2008. Centerjx>ini donated the follovving esiimated services lo HOPE for its operating needs:

Pcrsoimc! Utilities and maintenance I Jse o fo tnc f equipmeni Office supplies

2008

S47.690

2007

438<» M I 3 4,202 2.689

SSI,579 9,620 6J03 4,033

S7I.535

Supplemental Material

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RBiVilH Shreveport OHico

Dallas Office

December 4, 2C>09

Independent Accountants' Report on Applying Agreed-Upon Procedures

To the Board of Directors HOPE for the Homeles.s, Inc. Shreveport, Louisiana

We have pi'rformed the prvxedures included in the Louisiana Govemmental Audil Guide and enumerated below, which were agreed to by the management of HOPE for the Homeless, Inc. (HOPE) and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating managemenfs assertions about HOPE'S compliance with certain laws and regulations during the year ended December 31, 20()8 included in the accompanying LuifismMii AtteMation Que^ionaiiw Tliis agreed-upon procedures engagement was performed in accordance with standards established by the American Institute o( Certified Public Accountants and applicable standards of Covcnitncut AiiiUfii ^ Stmidnrib. Tlie sufficiency of these proctnlures is solelv the responsibilit)' of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for anv other purpose.

federal, State ami local Aivards

1. Determiiie the amount of federal, state and local oward expenditures for the fiscal ye.Tr, by grant, and grant ytMr.

HOPE'S federal, state, and local award expenditures for all programs for the fi.scal year follow:

Award Grant Year Amount

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La. Department of Health and Hospitals, Office of .Mental Health 7/1/07 - 6/3t)/nS % 67.922 La. Department of I lealth and Hospitals, Office of Mental Health 7/1/08 ~ 6/30/09 "4,305 La. Department of Social Services 10/1/07- 9/30/08 'nM2 La. Department of Stxial Services 10/1/08 - 9/30/(KJ 25,4g6

Total expenditures ^ ^ _ „ _ ^ _ _ _ _ _ _ ^ $259.745

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2. For each award, we randomly selectetl six disbursements administered during the period under examination.

3. For the items selected in Procedure 2, we traced the six disbursements to supporting documentation as to proper amount and payee.

We examined supporting documentation for each of the sin selected disbursements and tound that payment was for the proper amount and made to the correct payee.

4. Pur the items selcvted in PrcK'cdure 2, we determined if the six disbursements were properlv | coded to the correct fund and general ledger account. |

All pavments were properly coded to the correct fund and general ledger account. i\

I 5. For the items selected in Procedure 2, we determined whether the six disbursements

received approval from proper authorities.

All items were properly approved by the executive director and a member of the board,

6. For the items selected in Procedure 2, for kKal awards, we determineci whether the disbursements complied with the grant agreement, relating tn:

Activiiie< iiHouh-d or ufiallouHui

V\'e reviewed the previously listed disbursements for types of services allowed or not allowed. All disbursements complied with the allowabih'ty requirements.

EU^hdrti/

\Vt' reviewed the previously listed disbursements for eligibility retjuirements. When

applicable, all disbursements complied with the eligibility requirements.

We reviewed the previously listed disbursements for reporting requirements. When applicable, all disbursements complied with reporting requirements.

7. For (he programs selected for testing in item 2 that had been closed out during the period under review, we compared the cU>se-out report, when required, with the entit>''s financial records to determine whether the amounts agree.

The disbursements selected included one grant (hat was closed out during the period oi our review. Wt.- compared the close-out reports for this grant program with the entity's financial records. The amounts reported on the close-out reports agreed to the entity's financial records.

8. We examined evidence indicating that agendas for meeting recorded in the minute book were posted as required by LSA-RS 42:1 through 42:12.

HOPE posts a notice oi each board or membership meeting on its website, and notifies by email all nonprofits and public entities in North Louisiana of scheduled meetings.

Comprehensive Budget

9. For all grants exceeding five thousand dollars, we determined that each applicable federal state, or local grantor agency/agency was provided with a comprehensive budget of those !! grants that included the purpose and duration. !|

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HOPE provided comprehensive budgets lo the applicable state grantor agencies for the 1 programs mentioned previously. These budgets specified tlie anticipated uses of the l\ funds, estimates of the duration of the projects, and plans showing specific goals and ;| objecti\'es that included measures of performance. ] \

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Pnor Comments and Recommeudatiousi H !

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10. We reviewed any prior-vear suggestions, recommendations, and/or comments to determine -j the extent to which such matters have been resolved. j

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No prior-vear suggestions, recommendations, or comments were made. H

We were not engaged to, and did not, perform an examination, the objective of which would be j |

the expression of an opinion on management's as.si'rtions. .Accordingh'. we do not express such [j

an opinion. Had we performed additional procedures, other matters might have come to our j !

attention that \vould have been reported to you. (

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This report is intended solely for the use of management of HOPE for the Homeless, Inc., the

Legislative Auditor (Slate of Louisiana), and the applicable slate grantor agencies, and should

not be used by those who have not agreed to the procedures and taken responsibility' for the

sufficiency of the procedures for their purposes. Under Louisiana Revised Statute 24:513, this

report is distributed by the Legislative Auditor as a public document.

7 5 1^-^ t - L I

Certified Public Accountcints

Shreveport, Louisiana December 4, 2009

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HOPH for the Homeless, Inc

Schedule of Findings

December 31, 20{)8

2008-01 Engafiement Completion

inMafur of uoihCompUiUicc:

HOPE for the Homeless, Inc. failed lo comply with state law (LA R.S. 24:513) since the

annual report for the year ended December 31, 200S was not submitted to the Louisiana

Legislative Auditor's Office until after June 30, 2tX)8, the statutory due date.

Reason for noncouipVmncc:

Due to a need to change accountants performing the review and agreed-upon procedures, it

was not possible to complete the engagement in a timely fashion.

Mtma' ant'nl'< plmi of conrciive itction:

Management agrees with this finding, but believes this ticcurrence was beyt>nd their control

and that all future required reports should be filed on a timely basis.

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LOUISIANA ATTESTATION QUESTIONNAIRE (For Attestation Engagements of Quasi-Public Agencies)

Dear Chief Executive Officer:

Attached is the Louisiana Attestation Questionnaire that is to be completed by you or your staff. This questionnaire is a required part of the review/attestation engagement of Louisiana quasi-public agencies. Upon completion, the questionnaire must be presented to and adopted by the governing body, if any. of your organization by means of a format resolution in an open meeting. The chief executive officer of a quasi-public agency without a governing tx)dy should sign the document, in lieu of such a resolution.

The completed questionnaire and a copy of the adoption instrument, if appropriate, must be given to the Independent certified public accountant at the beginning of the engagement. The CPA will, during the course of his engagement, perform certain agreed-upon procedures to the responses in the questionnaire. It is not necessary lo return the questionnaire to my office.

Certain portions of the questionnaire may not be applicabfe to your organization. In such cases, it is appropriate to mark the representation "not applicable." However, you must respond to each applicable representation. A 'yes' answer indicates that you have complied with the applicable law or regulafe)n. A 'no' answer lo any representation indicates a possible violation of law or regulation and, as such, should be fully explained. These matters will be reviewed by the independent CPA during the course of his engagement. Please feel free to attach a further explanation of any representation.

Your cooperation in this matter will be greatly appreciated,

Sincerely, fj

Steve J. Theriot, CPA Legislative Auditor

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LOUISIANA ATTESTATION QUESTIONNAIRE (For Attestation Engagements of Quasi-public Agencies)

NovemberlS, 2009

RBM LLP 624 Travis Street, Suite 800 Shreveport. Louisiana 71101

In connection with your review of our financial statements as of December 31, 2008 and for the period ttien ended, and as required by Louisiana Revised Statute 24:513 and the Louisima Govemmental Audit Guide, we make the following representations to you. We accept full responsibility for our compliance with the following laws and regulation and the interna! controls over compliance with such laws and regulations. We have evaluated our compliance with the following laws and regulations prior to making these representations.

These representations are based on the information available to us as of Novemt)er 15, 2009.

Federal, State, and Local Awards

We have detailed for you the amount of federal, state and local award expenditures for the fiscal year, by grant and grant year.

YesfX] No[ I

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

YesfX I No| I

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

Yes (X1 No( ]

We have complied with all applicat>le specific requirements of all federal, slate, and local programs we administer, to include matters contained in the OMB Compliance Supplement matters contained in the grant awards, eligibility requirements, activities allowed and unallowed, and reporting and budget requirements.

Yes [X ] No I 1

Open Meetings

Our meetings, as they relate to public funds, have been posted as an open meeting as required by R.S. 42:1 through 42:13 {the open meetings law).

Yes [X ] Nol I

Budget

For each federal, state, and local grant we have filed with the appropriate grantor agency a comprehensive budget for those grants that included the purpose and duration, and for state grants included specific goals and objectives and measures of performance

No[ ]

Prior Year Comments

Yes IXI

We have resolved all prior-year recommendations and/or comments.

Nol 1 YesfX

We have disclosed to you all known noncompliance of the foregoing laws and regulations, as well as any contradictions to the foregoing representations. We have made available lo you documentation relating to the federal, stale, and local grants, lo include the applicable laws and regulations.

We have provided you with any communications from regulatory agencies or other sources concerning any possible noncompliance with the foregoing \aws and regulations, including any communications received between the end of the period under examination and the issuance of this report. We will also disclose to you. the Legislative Auditor, and the applicable state grantor agency/agencies any known noncompliance that may occur up to the date of your report.

mmm^ ^^S

.Secretary,

.Treasurer

President ' f'<flo'^

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