Le Petit Theatre du Vieux Carre - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/0A6B71872FE...Le Pedt Theatre du Vieux Carre New Orleans, Louisiana We have audited the

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LE PETITE THEATRE DU VIEUX CARRE

FINANCIAL REPORT

JUNE 30, 2009

Under provisions of stale law, this report is a public document. A copy of the report has been submitted to the entity and other appropriate public officials. Tho report is available forpublic inspection at the Baton Rouge office of the LegislativeAuditor and, where appropriate, at the office of the parish clerk of court.

Release Date H] H ] I O

LE PETIT THEATRE DU VIEUX CARRE

TABLE OF CONTENTS

JUNE 30, 2009

INDEPENDENT AUDITOR'S REPORT 1

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION 2

STATEMENT OF ACTrVFTIES AND CHANGES IN NET ASSETS 3 - 4

STATEMENT OF CASH FLOWS 5

STATEMENT OF FUNCTIONAL EXPENSES 6

NOTES TO FINANCIAL STATEMENTS 7-11

SPECIAL REPORTS OF INDEPENDENT AUDITOR REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCLAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 12-13

SCHEDULE OF FINDINGS AND RESPONSES 14-16

SPECIAL REPORTS OF MANAGEMENT

SCHEDULE OF PRIOR YEAR FINDINGS 17-19

MANAGEMENT CORRECTIVE ACTION PLAN 20

Reginald A. Bresette, III Limited Liability Company

Member American Institute of Certified Public Accountants

Reginald A. Bresette. ill. CPA Socletv of Louisiana certified Public Accountants

INDEPENDENT AUDlTOR^S REPORT

To the Board of Governors of Le Pedt Theatre du Vieux Carre New Orleans, Louisiana

We have audited the accompanying statement of financial position of Le Petit Theatre du Vieux Carre, (a non-profit organization) (the Theatre) as of June 30, 2009, and tlie related statements of activities, functional expenses and changes in net assets, and cash flows for the year then ended. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards issued by tlie Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also mcludes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe tliat our aiidit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the fmancial position ofthe Theatre as of June 30, 2009, and the changes m its net assets and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Govemment Auditing Standards, we have also issued a report dated February' 24, 2010, on our consideration of The Theatre's intemal control over 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 the scope of out testing of intemal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over fmancial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

February 24,2010

0408 Yale Street, Sui te A • Meta i r ie , Louisiana 70006 (504) 885-9990 • FAX (504) 885-9959 • CELL (504) 874-2438 • E-MAIL reggi&Sbresetteco.COm


STATEMENT OF FINANCIAL POSITION

Current Assets Cash and cash equivalents Prepaid expense

Total Current Assets

Property and Equipment, Net (Note 3)

Other Assets Investments, restricted (Note 2)

Total Other Assets

Total Assets

JUNE 30, 2009

ASSETS 2009

$ 87,175

17,768

104,943

1,660,015

192,570

192,570

$ 1,957,528

LIABIUTIES AND NET ASSETS Current Liabilities

Accounts payable Accrued expenses Unearned income Due to White Noise Development, L.P Note payable Capital One (Note 5)

Total Current Liabilities

Total Liabilities

Unrestricted Permanently restricted by donors (Note 4)

Tota! Net Assets

Total Liabilities and Net Assets

$ 22,1 !2

691

5,239

32,635

731,847

792,524

792,524

972,434

192,570

1,165,004

$ 1,957,528

(See Accompanying notes to financial statements) 9


STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

FOR THE YEAR ENDED JUNE 30, 2009

2009

Temporari ly Permanently Unrestricted Restricted Restricted Total

Public Support, Revenues and Reclassifications

Public support: Contnbutions S 191,892 $ - $ 3,843 $ 195,735

Total Public Support

Revenues: Program service revenue Investment income (Note2) Unrealized gain (loss) (Note 2) Miscellaneous

Total revenue

Reclassifications: Net assets released fi-om

restrictions

Expiration of time restrictions

Total Reclassifications

Total Public Support, Revenues and Reclassifications

191,892

498,009

950

498,959

8.890

8,890

$ 699,741 $

3,843

1,388 (33,184)

(31,796)

(8,890)

(8,890)

195,735

498,009 t,388

(33,184) 950

467,163

- $ (36,843) $ 662,898

(See accompanying notes to financial statements) 3


STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS (CONTINUED)


2009

)Lpenses

Program Services

Total Program Services

Supporting Services; Management and general Fund Raising

Total Supporting Services

Total Expenses

Increase (Decrease) in Net Assets

Net assets at beginning ofyear

Net assets at end ofyear

Unrestricted

$ 572,389

572,389

111,151 9,137

120,288

692,677

7,064

965,370

$ 972,434

Temporarily Restricted

$

-

$

Permanently Restricted

s - :

960

960

960

(37,803)

230,373

S 192,570 ;

Total

B 572,389

572,389

112,111 9,137

(21,248

693,637

(30,739)

1,195,743

B 1.165,004



STATEMENT OF CASH F L O W S

FOR T H E VEAR ENDED JUNE 30,2009

2009

Reconciliation of change in net assets to net cash provided (used) by operating activities:

Change in net assets Adjustments to reconcile change in

net assets to net cash provided by operating activities;

Depreciation and amortization Decrease (increase) in receivables Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Increase (decrease) in unearned income Unrealized losses on investments in endowment Income eamed by endowment Permanently restricted contributions Administration fees in endowment

$ (30,739)

71,233 4,634

(11,385) 18,997

(1,295) 5,239

33,184

(1,388) (3,843)

960

Net cash provided (used) by operating activities

Cash flows from financing activities:

Proceeds from contributions, permanently restricted Principle payments on debt

85,597

8,890 (21,063)

Net cash provided (used) by financing activities

Net increase (decrease) in cash

Cash - beginning ofyear

Cash - end ofyear

(12,173)

73,424

13,751

87,175

(See accompanying notes to financial statements)

5


STATEMENT OF FUNCTIONAL EXPENSES


2009

Salaries

Employee benefits and payroll taxes

Total salaries and related expenses

Director

Stage manager Set Lighnng and sound Costumes Music and choreography Props Hair and makeup Production royalties Production licenses Advertising Contract labor Pension expense Miscellaneous production expense Insurance Office expense Bank charges Interest expense Miscellaneous expense Professional fees Repairs and maintenance Rent Telephone Utilities Taxes and licenses Parking Depreciation and amortization

PROGRAM MANAGEMENT SERVICES & GENERAL

105,495 9,057

114,552

21,038 1,806

22,844

FUND RAISING B 8,415

722

9,137

TOTAL 134,948 11,585

(46.533

7,500 2,510

61,024 16.072

18,262

33,800 752

1,388

25,081

82

11,559 34,848

10,242

38,925

31,991 -

10,159

19,707 5,914

12,320 10,662

9 3 0 2,308

27.434 6,430 9.804

49.863

$ 572,389 S

---

--

-

-

--

-

13,710 12,180 4,354

8,446

2,535 5,280

4,570

2,308 11,758 2,756

21.370

112,111 $ 9,137

7-500 2,510

61,024 16,072

18,262 33,800

752

1,388

25.081

82

11,559

34,848

10,242

38,925 45,701 12,180

14,513 28,153

8.449 17,600 15,232

9,200 4.616

39,192 9,186 9,804

71,233

S 693.637


Le Petit Theatre du Vieux Carre Notes To Financial Statements

For the Year Ended June 30, 2009

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Orgzmization

Le Petit Theatre du Vieux Carre (the Theatre) was organized in 1922 to present theatrical performances for the community. The mission ofthe Theatre is to present quality theatre at affordable prices, to promote cultural activities, and to provide cultural outreach opportunities to the Greater New Orleans community.

Basis of Accounting and Presentation

The financial statements of die Theatre are presented on the accrual basis of accounting and in accordance with the recommendations ofthe American Institute of Certified Public Accountants in its Industry Audit Guide, "Audits of Certain Nonprofit Organizations". Basis of Accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements, and relates to the timing ofthe measurements made.

Cash and Cash Equivalents

For purposes ofthe statements of cash flows, the Theatre considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Investments

The Theatre carries investments in debt securities with readily determinable fair values in the statement of financial position. Unrealized gains and losses are included in the change in net assets in the accompanying statement of activities.

Property and Equipment

The Theatre has adopted a practice of capitalizing all expenditures for depreciable assets where the umt cost exceeds $500. Property and equipment consists of Land, building and improvements, fumiture and fixtures, and stage equipment, and is carried at cost, except for land which is carried at its 1929 appraised value. Depreciation of these assets is provided on a straight-line basis over their estimated useful lives as follows:

Building and improvements 30-39 years Fumiture and fixtures 5 - 7 years Equipment 5-10 years

Depreciation expense For the Year Ended June 30, 2009 was $ 71,233.

Le Petit Theatre du Vieux Carre Notes To Financial Statements (Continued)


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Contributions

All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All odier donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature ofthe restriction. Wlien a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statements of activities as net assets released from restriction.

Gifts of long-lived operating assets such as land, buildings, or equipment are reported as unrestricted support, unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how iong these long-lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long-lived assets are placed in service.

Contributions of donated non-cash assets (such as materials and equipment) are recorded at their fair or estimated values in the period received.

Financial Statement Presentation

Financial statement presentation follows the recommendations ofthe Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Net assets, support and revenues, and expenses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, tlie net assets ofthe Theatre and changes therein are classified and reported as follows:

• Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. • Temporarily restricted net assets - l^et assets subject to donor-imposed stipulations that

will be met either by actions ofthe Theatre and/or the passage of time. The Theatre does not have any temporarily restricted net assets.

• Permanently restricted net assets - Net assets subject to donor-imposed stipulations that neither expire by the passage of time nor can be fulfilled and removed by actions ofthe Theatre pursuant to those stipulations.



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Use of Estimates

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

Advertising

The Theatre expenses all non-direct response advertising and costs as incurred. Advertising expense For the Year Ended June 30,2009 was $ 11,559.

Income taxes

The Theatre is exempt from Federal income taxes under Section (c)(3) ofthe Intemal Revenue Code and from State income taxes imder Section 121 (5) of Title 47 ofthe Louisiana Revised Statutes of 1950.

Allocation of Functional Expenses

Expenses are summarized on a functional basis. Salaries and related payroll expenses are distributed based upon the time spent for each function. Distribution of all other shared expenses is based upon management's estimates ofthe usage applicable to conducting various program or support activities.

NOTE 2 - INVESTMENTS Fair Value

Permanently restricted for endowments: Investments in mutual funds $ 192,570

Investment return is summarized as follows For the Year Ended June 30, 2009:

Investment income $ 1,388 Unreahzed losses $ (33,184)



NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment consists ofthe followmg as of June 30, 2009:

Land $ 20,000 Building and improvements 2,050345 Fumiture and fixtures 113,471 Equipment 418.519

2,602,335

Less accumulated depreciation ( 942.320)

$ 1.660.015

Included in the accompanying balance sheet under the following captions:

NOTE 4 - PERMANENTLY RESTRICTED ASSETS

Permanently restricted assets consist of endowment funds. The income of each is dedicated to specific purposes. The Rhea Loeb Deutsch Memorial Fund is administered by the Board of Governors ofthe Theatre. The Le Petit Theatre Fund and The Harold Newman Fund are administered by the Greater New Orleans Foundation. As of June 30, 2009, these restncted assets were as follows:

RJiea Loeb Deutsch Memorial Fund $ 6,026 Harold Newman Endowment Fund 149,502 Le Petit Theatre Endowment Fund 37.042

$ 192.570

Le Petit Theatre du Vieux Carre Notes to Financial Statements (Continued)


NOTE 5 -NOTE PAYABLE CAPITAL ONE

Note payable to Capital One Bank, secured by the building and improvements at 616 St. Peters. Payable as follows: Interest only at 4.25 %. This loan is currently in a state of forbearance, it was renegotiated in August of 2009 subsequent to year end. $ 731.847

NOTE 6 - RELATED PARTY TRANSACTIONS

The Theatre has conducted business with various entities and persons who are related to board members or employees either as officers of those entities or have familial relationships. The applicable officers or board members are in a position to, and in the future may, influence tlie volume of activity, price or other factors, which may benefit the persons or entities to which they are related. The transactions are irrunateriai m amount.

NOTE 7 - CONCENTRATIONS

The Company's financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with high quality credit institutions. At times such investments may be in excess of the FDIC insurance limit.

NOTE 8 - BOARD OF DIRECTORS' COMPENSATION

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

NOTE 9 - SUPPLEMENTAL DISCLOSURE ON CASH FLOW INFORMATION

Cash paid during the year for:

Interest $ 29,448

11

SPECLU. REPORTS OF INDEPENDENT AUDITOR

Reginald A, Bresette, il l Limited Liability Company

Member Amencan Institute of Certified Public Accountants

Reginald A. Bresette, Ui CPA Socletv of Louisiana certified Public Accountants

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Directors, Le Petit Theatre du Vieux Carre

We have audited the financial statements of Le Petit Theatre du Vieux Carre (the Theatre) (a nonprofit organization) as of and For the Year Ended June 30, 2009. and have issued our report thereon dated February 24, 2010. We conducted our audit in accordance with auditmg standards generally accepted in the United States of Amenca and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the Theatre's tntemal control over fmancial reporting as a basis for designing our auditmg procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opmion on the effectiveness of the Theatre's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Theatre's intemal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing thetr assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likehhood that a misstatement of the entity's financial statements that is more than mconsequential will not be prevented or detected by the entity's intemal control.

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

Our consideration of intemal control over fmancial reporting was for the hnuted purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in intemal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in mtemal control over fuiancial reporting that we consider to be material weaknesses, as defined above.

12 4408 Yale s t ree t , Sui te A • Me ta lne , Louisiana 70006

(504)885-9990 • FAX (504) 885-9959 • CELL (504) 874-2438 • E-MAIL [email protected]

mailto:[email protected]

Comphance and Other Matters

As part of obtaining reasonable assurance about whether the Theatre's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompHance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards and which are described in the accompan3ring schedule of findings and responses as items 2009-1 through 2009-3

The Theatre's responses to the findings identified in our audit are described in the accompanjong schedule of findings and responses. We did not audit the Theatre's response and, accordingly, we express no opinion on it.

This report is intended solely for the information and use of the Theatre's board of directors, others within the entity, and the Legislative Audit Advisory Committee, and is not intended to be and should not be used by anyone other than these specified parties.

R ^ n i

Certified Public Accountants

February 24, 2010

13

SCHEDULE OF FINDINGS AND RESPONSES


We have audited the financial statements of Le Petit Theatre du Vieux Carre (the Theatre) as of and For the Year Ended June 30,2009, and have issued our report thereon dated February 24, 2010. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by Comptroller General ofthe United States. Our audit ofthe fmancial statements as of June 30, 2009, resulted in an unqualified opinion.

Section I Summary of Auditor's Reports

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

Intemal Control Material Weaknesses - None Significant Deficiencies - Yes

Compliance Compliance Material to Financial Statements - No

Compliance Immaterial to Financial Statements - Yes

2009-1 Findings: As is common in small organizations, management has chosen to engage the auditor to propose certain year-end adjusting journal entries and to prepare their annual financial statements. This condition is intentional by management based upon the Agency's financial complexity, along with the cost effectiveness of acquiring the ability to prepare financial statements in accordance with generally accepted accounting principles. Consistent vrith this decision, intemal controls over the preparation of year-end adjusting entries and annual financial statements, complete with notes, in accordance with generally accepted accounting principles, have not been established. Under generally accepted auditing standards, this condition represents a significant deficiency in intemal controls.

Recently issued Statement on Auditing Standards (SAS) 112 requires that we report the above condition as a control deficiency. The SAS does not provide exceptions to reporting deficiencies that are adequately mitigated with nonaudit services rendered by the auditor or deficiencies for wliich the remedy would be cost prohibitive or otherwise impractical.

14

SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED)


Recommendation: As mentioned above, whether or not it would be cost effective to cure a control deficiency is not a factor m applying SAS 112's reportmg requirements. Because pmdent management requires that the potential benefit fi:om an intemal control must exceed its cost, it may not be practical to correct all the deficiencies an auditor reports under SAS 112. In this case we do not believe that curing the significant deficiency described above would be cost effective or practical and accordingly do not believe any corrective is necessary.

Management's Response: We concur with the audit finding.

2009-2 Findings: Our examination disclosed there is lack of segregation of duties within the organization (especially in the areas of cash receipts and ticket sales). This weakness is due to the fact that the organization has a very small staff and only one person is primarily responsible for ticket sales and deposits. Due to the lack of segregation of duties, possible errors or irregularities could occur in the accounting records and not be detected. Understandably, since the organization has such a small staff, the most ideal system of internal control or the most desirable accounting system may not be practicable. Also the cost of hiring additional employees to handle separate aspects ofthe accounting function might exceed any benefits gained.

Recommendation: Based upon the cost-benefit of hiring additional accounting personnel, it may not be feasible to achieve complete segregation of duties. We recommend that the organization finance committee and executive director continue to closely monitor all records and transactions.

Response: The organization's executive director and board concur with the recommendation.

2009-3 Findings - The audited financial statements are required to be filed with the State of Louisiana Legislative Auditor within six months ofthe end ofthe fiscal year or December 31, 2009. The report was filed after tliat date.

Cause - delays due to new management takeover at the end ofthe year. An extension was filed and obtained from the Louisiana Legislative Auditor.

15

SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED)


b. Federal Awards

The Theatre did not receive federal awards during the year ended June 30, 2009.

Section II Financial Statement Findings

There were no financial statement findings during the fiscal year ended June 30, 2009.

Section III Federal Award Findings and Responses


16

SPECIAL REPORTS OF MANAGEMENT

SCHEDULE OF PRIOR YEAR FINDINGS

For die Year Ended June 30, 2009

SECTION I INTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE

FINANCIAL STATEMENTS

Intemal Control

Material Weaknesses - None Significant Deficiencies - None

Compliance

Compliance Material to Financial Statements - No

Compliance Immaterial to Financial Statements - Yes

Findings- (2008-1) As is common in small organizations, management has chosen to engage the auditor to propose certain year-end adjusting journal entries and to prepare their annual financial statements. This condition is intentional by management based upon the Agency's financial complexity, along with the cost effectiveness of acquiring the ability to prepare financial statements in accordance with generally accepted accounting principles. Consistent with this decision, intemal controls over the preparation of year-end adjusting entries and annual financial statements, complete with notes, in accordance with generally accepted accounting principles, have not been established. Under generally accepted auditing standards, this condition represents a significant deficiency in intemal controls.

Recently issued Statement on Auditing Standards (SAS) 112 requires that we report the above condition as a control deficiency. The SAS does not provide exceptions to reporting deficiencies that are adequately mitigated with nonaudit services rendered by the auditor or deficiencies for which the remedy would be cost prohibitive or otherwise impractical.

17

SCHEDULE OF PRIOR YEAR FINDINGS (CONTINUED)

For the Year Ended June 30,2009

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

Management's Response: We concur with the audit finding.

Findings - (2008-2) We noted that the Theatre did not file its prior year's Form 990 IRS tax retum in a timely manner.

Recommendation: We recommend the Theatre file its Form 990 IRS tax retum on a timely basis.

Management's Response: Management has engaged an accountant who properly filed all past due tax forms and timely filed all current tax forms.

Findings - (2008-3) Our examination disclosed there is lack of segregation of duties within the organization (especially in the areas of cash receipts and ticket sales). This weakness is due to the fact that the organization has a very small staff and only one person is primarily responsible for ticket sales and deposits. Due to the lack of segregation of duties, possible errors or irregularities could occur in the accounting records and not be detected. Understandably, since the organization has such a small staff, the most ideal system of intemal control or the most desirable accounting system may not be practicable. Also the cost of hiring additional employees to handle separate aspects ofthe accounting function might exceed any benefits gained.

Recommendation: Based upon the cost-benefit of hiring additional accounting personnel, it may not be feasible to achieve complete segregation of duties. We recommend that the organization finance committee and executive director continue to closely monitor all records and transactions.

Response: The organization's executive director and board concur with the recommendation.

SCHEDULE OF PRIOR YEAR FINDINGS (CONTINUED)

SECTION II INTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS


SECTION III MANAGEMENT LETTER

There was no management letter issued for the audit year ended June 30, 2008

19

MANAGEMENT CORRECTIVE ACTION PLAN


SECTION I INTERNAL CONTROL AND COMPLLWCE MATERIAL TO THE FINANCIAL STATEMENTS

The Theatre had no material weaknesses or reportable conditions in intemal control. Also, there were no compliance issues material to the financial statements.

SECTION II INTERNAL CONTROL AND COMPLIANCE MATERIAL TO FEDERAL AWARDS


SECTION III MANAGEMENT LETTER

There was no management letter issued for the audit year ended June 30, 2008.

20

Documents

Le Petit Theatre du Vieux Carre - app1.lla.state.la.usapp1.lla.state.la.us/PublicReports.nsf/0A6B71872FE...Le Pedt Theatre du Vieux Carre New Orleans, Louisiana We have audited the