Shreveport Regional Arts Councilapp1.lla.la.gov/PublicReports.nsf/CD3673CE8A24FF0E86257425007318… · Council's management. Our responsibility is to express an opinion on these financial

Shreveport Regional Arts CouncilShreveport, Louisiana

Financial Statements

of and ,* We

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

Release Date


Table of Contents

Page No.

Independent Auditors* Report 1

Financial Statements:

Statements of Financial Position 2

Statements of ActivitiesFor the Year Ended June 30, 2007 3For the Year Ended June 30, 2006 4

Statements of Functional ExpensesFor the Year Ended June 30,2007 5For the Year Ended June 30,2006 6

Statements of Cash Flows 7

Notes to Financial Statements 8-12

Report on Internal Control Over Financial Reporting and on Complianceand on Other Matters Based on An Audit of Financial StatementsPerformed in Accordance With Government Auditing Standards 13-14

Summary Schedule of Prior Year Audit Findings 15

Summary Schedule of Current Year Audit Findings 16

COOK & MOREHART

Certified Public Accountants

1215IIAWN AVENUE - SHREVEPORT* LOUISIANA 71107 • P.O. BOX 78240 • SHREVEPORT, LOUISIANA 71137-8Z40

TRAVIS H MOREHART, CPA TELEPHONE (318) 222-5415 FAX (318) 222-5441A-EDWARD BALL, CPAVICKrED. CASE. CPA

MEMBERAMERICAN INSTITUTE

C.BRVANCOYLE.CPA CERTIFIED PUBLIC ACCOUNTANTS

SOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUrfTANTS

Independent Auditors' Report

To the Board of DirectorsShreveport Regional Arts CouncilShreveport. Louisiana

We have audited the accompanying statements of financial position of the Shreveport Regional Arts Councilas of June 30,2007 and 2006, and the related statements of activities, functional expenses and cash flows forthe years then ended. These financial statements are the responsibility of the Shreveport Regional ArtsCouncil's management. Our responsibility is to express an opinion on these financial statements based on ouraudits.

We conducted our audits 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 bythe Comptroller General of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of material misstatement An auditIncludes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.An audit also Includes assessing the accounting principles used and the significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe that our auditsprovide 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 Shreveport Regional Arts Council as of June 30,2007 and 2006, and the changes in Its netassets and its cash flows for the years then ended, in conformity with accounting principles generally acceptedin trie United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated December 12,2007, on our consideration of the Shreveport Regional Arts Council's internal control over financial reportingand on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreementsand other matters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing and not to provide an opinion on the internalcontrol over financial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and srwuld be considered in assessing the results of our audit

Cook and MorehartCertified Public AccountantsDecember 12, 2007

Shreveport Regional Arts CouncilSbreveport, Louisiana

Statements of Financial PositionJune 30, 2007 and 2006

Assets

Current assets:Cash and cash equivalentsInvestmentsGrants receivableOther receivablesUnconditional promises to givePrepaid expenses

Total current assets

Noncunrent assets:Long-term unconditional promises to giveDepositsProperty and equipment, net

Total noncurrent assets

Total Assets

Liabilities and Net Assets

Current liabilities:Accounts payableGrants payableAccrued expenses

Total current liabilities

Net assetsUnrestricted:

OperatingDesignatedFixed assets

Temporarily restricted

Total net assets

Total Liabilities and Net Assets

2007

$ 500,5221,309,786

378.63313,36386,6974,785

2,293,786

79,4451,200

121,689202.334

10,81269,03335.638

145,483

371,0861,309,786

121,689548,076

2.350.637

2006

130,8671,167,957

373,12942,814

147,7566.249

1.868.774

122,0431.200

105.965229.208

$ 2.496,120 $ 2.097,982

45,54059,76645.681

150,987

59.2691,167.957

105,965613.804

$ 2.496,120 $ 2.097.982

The accompanying notes are an integral part of the financial statements.

2

Sbreveport Regional Arts CouncilShreveport LouisianaStatement of Activities

For the Year Ended June 30, 2007

Revenues, gains, support and ̂ classifications:Admissions sales and concessionsTuition and feesIndividual contributionsBusiness and industry contributionsFoundation grantsGovernment grants / contracts:

City of ShreveportOther governmentsState of Louisiana

Special events -Christinas in the Sky

Investment incomeNet realized and unrealized gains on investmentsMiscellaneous incomeNet assets released from restrictions

Satisfaction of program restrictions

Total revenues, gains, supportand ̂ classifications

Expenses:Supporting services -

General and administrativeSpecial events fund raising -

Christmas in the Sky

Total supporting services

Prog rams servicesArtbreakArts in EducationArtsmartArtspaceDecentralized Arts FundingPublic ArtRegrants, Panels and other programs

Total programs services

Total expenses

Change in net assets

Net assets, beginning of year

Net assets, end of year


3

Unrestricted

$ 68,39457,751

175,779168,94037,000

290,0005,000

621,172

1T002,90851,26298,84612,651

428,659

3,018,362

394,034

467.801

861,835

229,931102,829219,655530,381282,549

6,538315,274

1,687,157

2,548,992

469,370

1.333,191

$ 1,802,561

TemporarilyRestricted Totals

$ $ 68.39457,751

175,779168,94037,000

350,000 640,0005,000

12,931 634.103

1.002.90851.26298.84612,651

(428.659)

(65,728) 2,952,634

394,034

467.801

861,835

229.931102,829219,655530,381282.549

6.538315,274

1,687,157

2,548,992

(65.728) 403,642

613,804 1,946.995

$ 548,076 $ 2,350,637

Shreveport Regional Arts CouncilShreveport, LouisianaStatement of Activities

For the Year Ended June 30, 2006

Revenues, gains, support and ̂ classifications:Admissions sales and concessionsTuition and feesIndividual contributionsBusiness and industry contributionsFoundation grantsGovernment grants / contracts:

City of ShreveportOther governmentsState of Louisiana

Special events -Christmas in the Sky

Investment incomeNet unrealized gains on investmentsMiscellaneous incomeNet assets released from restrictions

Satisfaction of program restrictions

Total revenues, gains, supportand redassifications

Expenses:Supporting services -

General and administrativeSpecial events fund raising -

Christmas in the Sky

Total supporting services

Programs servicesArtbreakArts in EducationArtsmartArtspaceDecentralized Arts FundingPublic ArtRegrants, Panels and other programs

Total programs services

Totat expenses

Change in net assets

Net assets, beginning of year - restated

Net assets, end of year


4

Unrestricted

$ 133,11148,054

225,839188,17563,625

130,50050,000

568,307

51,42452,50021,13418,098

264,513

1,815,280

404.985

99,294

504,279

179,60777,270

202,336618,973294.600

17,882293,338

1,684,006

2,188,285

(373,005)

1,706,196

$ 1,333,191

TemporarilyRestricted Totals

$ $ 133,11148,054

225,839188,17563,625

325,000 455,50050,000

5,290 573,597

51.42452,50021,13418,098

(264,513)

65,777 1,881,057

404,985

99,294

504,279

179,60777.270

202,336618.973294,600

17,882293,338

1,684,006

2,188,285

65,777 (307,228)

548,027 2,254,223

$ 613.804 $ 1,946.995

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Statements of Cash FlowsFor the Years Ended June 30, 2007 and 2006

Operating Activities

Changes in net assetsAdjustments to reconcile change in net assets to

net cash provided (used) by operating activities:DepreciationRealized and unrealized gains and losses on investments(increase) decrease in operating assets:

Grants receivableOther receivablesPromises to givePrepaid expenses

Increase (decrease) in operating liabilities:Accounts payableGrants payableAccrued expenses

Net cash provided (used) by operating activities

investing Activities

Payments for property and equipmentNet cash used by investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents as of beginning of year

Cash and cash equivalents as of end of year

2007 2006

$ 403,642 $ (307,228)

35.209(141.829)

{5,504)29,451103,6591,464

(4,728)9,267

(10,043)420,588

28,760(65.565)

29,8492,50094,5144.990

(9,921)(32,189)(4,916)

(259,206)

(50.933) (7.861)(50,933)

369,655

130,867

(7.861)

(267,067)

397,934

$ 500,522 $ 130,867


7


Notes to Financial StatementsJune 30, 2007 and 2006

(1) Summary of Significant Accounting Policies

A. Nature of Activities

The Shreveport Regional Arts Council (SRAC) is a private, nonprofit corporation governed by aboard of directors and administered by a professional staff. SRAC's goal is to serve as anumbrella organization to enrich the quality of life within the region through the promotion of theArts. SRAC's services, therefore, include providing cultural programming, scheduling andcoordinating cultural activities, and other professional services directed toward its stated goal.

B. Basis of Accounting

The financial statements of SRAC have been prepared on the accrual basis of accounting.

C. Use of Estimates

Management uses estimates and assumptions in preparing financial statements. Those estimatesand assumptions affect the reported amounts of assets and liabilities, the disclosure of contingentassets and (labilities, and reported revenues and expenses. Actual results could differ from thoseestimates.

D. Basis of Presentation

Financial statement presentation follows the recommendations of the Financial AccountingStandards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, FinancialStatements of Not-for-Profit Organizations. Under SFAS No. 117, the Organization is required toreport information regarding its financial position and activities according to three classes of netassets: unrestricted net assets, temporarily restricted net assets, and permanently restricted netassets.

E. Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, SRAC considers all unrestricted highly liquidinvestments with an initial maturity of three months or less to be cash equivalents.

F. Promises to Give

Unconditional promises to give are recognized as revenues or gains in the period the promise togive is received and as assets, decreases of liabilities, or expenses depending on the form of thebenefits received. Conditional promises to give are recognized when the conditions on which theydepend are substantially met

G. Investments

Investments are stated at fair market value, based on quoted market prices.

H. Property and Equipment

Property, equipment, and leasehold improvements are carried at cost or, if donated, at theapproximate fair value at the date of donation. Depreciation is provided on the straight-line methodover the estimated useful lives of the assets. Amortization of leasehold improvements is providedon the straight-line method over the remaining term of the lease or the useful life of theimprovement, whichever is shorter.

(Continued)

8

Stireveport Regional Arts CouncilShreveport, Louisiana

Notes to Financial StatementsJune 30. 2007 and 2006

(Continued)

I, Restricted and Unrestricted Revenue and Support

Support that is restricted by the donor is reported as an increase in unrestricted net assets if therestriction 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 stipulatedtime restriction ends or purpose restriction is accomplished), temporarily restricted net assets arereclassified to unrestricted net assets and reported in the statement of activities as net assetsreleased from restrictions.

J. Advertising Costs

SRAC uses advertising to promote 'its services among the community it serves. The costs ofadvertising are expensed as incurred. During 2006 advertising costs totaled $133,243. Included inthis amount is $60,255 of in-kind contributions. During 2007 advertising costs totaled $70.434 andare included in promotions on the Statement of Functional Expenses.

K. Employee Benefit Plans

SRAC established a Simple Retirement Account plan for its full and part-time employees. Anemployee is eligible to participate in any calendar year if the employee received at least $5,000 ofcompensation during each of the two preceding year calendar years and is reasonably expected toreceive at least $5,000 in compensation during the current calendar year. Participation is voluntary,and the employee may contribute up to $7.000 per year. SRAC matches the employee'scontribution up to 3% of the employee's annual compensation, or $7,000, which ever is (ess. Thecontribution charged to expense for the years ended June 30. 2007 and 2006, was $3,885 and$5,326, respectively.

L. Income Tax Status

SRAC is a non-profit corporation and is exempt from state and federal income taxes under Section501{c){3) of the Internal Revenue Code. However, income from certain activities not directlyrelated to SRAC's tax-exempt purpose is subject to taxation as unrelated business income. SRAChad no such income for this audit period.

M Expense Allocation

The costs of providing various programs and other activities have been summarized on afunctional basis in the Statements of Activities and in the Statements of Functional Expenses.Accordingly, certain costs have been allocated among the programs and supporting servicesbenefited.

N. Accrued Absences

SRAC's policy is to pay employees upon termination for vacation time accrued up to 80 hoursmaximum per employee with 0-5 years experience; up to 96 hours for employees with 5-10 yearsexperience; up to 120 hours for employees with 10-15 years experience; up to 144 hours foremployees with 15-20 years experience; and up to 168 hours for employees with over 20 yearsexperience. An accrued liability for vacation time of $23,694 and $37,601 is included in accruedexpenses at June 30.2007 and 2006. respectively.

(Continued)

9



(Continued)

(2) Agreement for services

Under a formal agreement for services between the City of Shreveport (the City) and SRAC, the Crtyagrees to provide technical assistance in the planning and implementation of programs, use of certainfacilities, office space and personnel and funding for programming. The fair value of the technicalassistance received and use of the facilities, office space and personnel is not reasonablydeterminable and is not recorded as revenue. SRAC also agrees to provide certain programmingservices under the agreement

(3) Concentrations of Credit Risk

SRAC maintains cash balances at several financial institutions located in the Shreveport area.Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to$100,000. At June 30,2007 and 2006, total cash balances held at financial institutions was $590,848,and $166,487, respectively. Of these amounts, $273.780 and $166,487, respectively, was secured byFDIC and the remaining $317,068 was not insured in 2007.

Concentrations of credit risk with respect to promises to give are limited due to the large number ofcontributors comprising SRAC's contributor base and their dispersion across different industries. As ofJune 30,2007 and 2006, SRAC had no significant concentrations of credit risk in relation to promisesto give.

Concentrations of credit risk with respect to grant receivables are limited due to these amounts beingdue from governmental agencies under contractual terms. As of June 30,2007 and 2006. SRAC hadno significant concentrations of credit risk in relation to grant receivables.

(4) Promises to Give

Unconditional promises to give at June 30,2007 and 2006 are as follows:

2007 2006

Receivable in less than one year

Receivable in one to five yearsLess discount on promisesNet long-term

Net unconditional promises to give

$_ 86,697 $_ 147.758

95.38115.9371

155,95233.9091

79.445 122.043

166.142 S_

Amounts shown are net of an allowance for doubtful accounts of $49,860 and $74,487 at June 30,2007 and 2006, respectively. Promises receivable expected to be collected over more than one yearare discounted at 6% for the years ended June 30,2007 and 2006.

(Continued)

10



(Continued)

(5) Investments

Investments as of June 30, 2007, and 2006 consisted of the following:

2007 2006Fair Value Cost Fair Value Cost

Money market $ 33,186 $ 33,047 $ 25,147 $ 25,020Fixed income 635,463 643,931 597,006 614,235Equities 641.137 512.618 545.804 488.668

S 1.309.786 S 1.189.596 S 1.167.957

Unrealized gains were $78,452 and $21,134 for the years ended June 30,2007 and 2006, respectively.

(6) Property and Equipment

Property and equipment at June 30,2007 and 2006, with estimated depreciable life, are summarizedas follows:

2007 2006Leasehold improvements 30 years $ 120,547 $ 80.594Furniture, fixtures, equipment 5-10 years 138.996 130.937

259,543 211,531Accumulated Depreciation ( 137.854^ ( 105.566^

$ 121.689 S 105.965

Depreciation expense for the years ended June 30, 2007 and 2006, was $35,209 and $28,761,respectively.

(7) Restrictions on Net Assets

Temporarily restricted net assets are available for the following purposes or periods:

20Q7 2006For subsequent year's activities-Artspace campaign $ 166,142 $ 269,801City of Shreveport contract 350,000 325,000Decentralized Arts Funding (DAF) 31.934 19.003

£ 548.076 S 613.804

(8) Designated Net Assets

The Board of Directors designated cash and investments at June 30, 2007 and 2006 totaling$1,309,786 and $1,167,957, respectively to insure that SRAC's resources will remain stable regardlessof potential changes in public or private funding.

(9) Operating Leases

SRAC leases certain office space and equipment under operating leases. Rental costs for these leasesfor the years ended June 30,2007 and 2006 were $11,478 and $8,385, respectively. Commitmentsunder lease agreements having initial or remaining non-cancellable terms in excess of one year are asfollows:

(Continued)

11

Shreveport Regional Arts CouncilShreveport Louisiana

Notes to Financial StatementsJune 30. 2007 and 2006

(Continued)

For tne Year Ending June 30.2008200920102011

Total minimum future rentals

8,7298.7296,5491.825

$ 25.832

(10) Accrued Expenses

Accrued expenses consisted of the following at June 30,2007 and 2006:

2007Accrued leave payablePayroll and sates taxes payable

2006$ 23,694

11.94437,6018.080

35.638 I 45681

(11) Third Party Reimbursement

During the yeans ended June 30, 2007 and 2006, SRAC received contractual revenue from state,parish, and city grants in the amount of $1,279,103 and $1,079,097, respectively. The continuedexistence of these funds is based on annual contract renewals with various funding sources.

(12) Donated Materials, Facilities, and Services

Various materials and services were donated to SRAC by various individuals and organizations.Donated materials and services for the years ended June 30. 2007 and 2006 were $28,240 and$63,578, respectively, were recorded at fair market value at the date of donation, and have beenincluded in revenue and expenses for this year.

(13) Grants Payable

Grants payable at June 30, 2007 and 2006 represent amounts owed to recipients of arts grantsawarded by SRAC but not yet paid. Final payments are made upon receipt of final reports from therecipients.

(14) Restatement of Net Assets

An adjustment was made to record pledges received but not previously recorded as of June 30,2005.A corresponding entry was made to increase previously reported net assets. The effect of therestatement on net assets at June 30,2005, is an increase of $ 199,787, Pledges receivable and netassets as of June 30,2006, have been adjusted accordingly in the amount of $166,331.

12

COOK & MOREHART

Certified Public Accountants

1215 HAWN AVENITC • SHREVEPORT, LOUISIANA 71107 • P.O. BOX 78WO - SHREVEPORT, LOUISIANA 71137-8240

TRAVIS H. MORERAJtr, C?A TELEPHONE (318) 212-$41S FAX (318) 222-5441A. EDWARD BALL, CPAVICKIE Q. CASE. CPA

MEMBERAMERICAN WSTtrUTE

C. BRYAN COYLE, CPA CERTIFIED PUBLIC ACCOUNTANTS

SOCIETY OF LOUISIANACERTIFIED PUBLIC ACCOUNTANTS

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance With Government Auditing Standards

To the Board of DirectorsShreveport Regional Arts CouncilShreveport, Louisiana

We have audited the financial statements of Shreveport Regional Arts Council as of and for the year endedJune 30,2007, and have issued our report thereon dated December 12, 2007. We conducted our audit inaccordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Generalof the United States.

Internal Control Over Financial ReportingIn planning and performing our audit, we considered Shreveport Regional Arts Council's Internal control overfinancial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinionon the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofShreveport Regional Arts Council's Internal control over financial reporting. Accordingly, we do not express anopinion on the effectiveness on the Shreveport Regional Arts Council's internal control 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 their assigned functions, to prevent or detect misstatements ona timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, thatadversely affects the organizations' ability to initiate, authorize, record, process, or report financial data reliablyin accordance with generally accepted accounting principles, such that there is more than a remote likelihoodthat a misstatement of the organizations' financial statements that is more than inconsequential will not beprevented or detected by the organizations' internal control. We consider the deficiency described in theaccompanying schedule of findings and questioned costs as item 2007-1 to be a significant deficiency ininternal control over financial reporting.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in morethan a remote likelihood that a material misstatement of the financial statements will not be prevented ordetected by the organizations' internal control.

Our consideration of Internal control over financial reporting was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in internal control that might besignificant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies mat are alsoconsidered to be material weaknesses. However, we believe that the significant deficiency described above isnot a material weakness.

13

Compliance and Other MattersAs part of obtaining reasonable assurance about whether Shreveport Regional Arts Council's financialstatements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and materialeffect on the determination of financial statement amounts. However, providing an opinion on compliance withthose provisions was not an objective of our audit, and accordingly, we do not express such an opinion. Theresults of our tests disclosed no instances of noncompliance or other matters that are required to be reportedunder Government Auditing Standards.

This report is intended solely for the Information and use of management and others within the organization andis not intended to be and should not be used by anyone other than these specified parties.

Cook & MorehartCertified Public AccountantsDecember 12,2007

14


Summary Schedule of Audit FindingsAs of and for the Years Ended June 30, 2007 and 2006

Summary Schedule of Prior Audit Findings

There were four importable conditions for the prior year audit for the year ended June 30,2006, as follows:

2006-1 REPORT ABLE CONDITION

Statement of Condition: During our audit, we noted that the accountant who maintains the agency'sgeneral ledger is also responsible for the following:

• Reconciling the bank statements to the agency's general ledger.• Preparing checks for mailing once required signatures are obtained.• Preparing deposit slips, recording deposits in general ledger, and taking deposits to the bank.

Recommendation: We recommend that adequate internal controls be established concerning separationof duties, including the following:

• Bank reconciliations should be reviewed by a responsible individual on a monthly basis.• Custody of checks after signature and before mailing be handled by an employee independent of

all payable, disbursing, cash, receiving, and general ledger functions.• Deposit slips be prepared an employee independent of the general ledger function.

Current Status: Some improvement noted. See comment in current year audit.

2006-2 REPORTABLE CONDITION

Statement of Condition: During our audit, we noted that charges on credit card statements were notalways reconciled to and supported by actual receipts.

Recommendation: We recommend that charges on credit card statements be reconciled to andsupported by actual receipts prior to making payments.

Current Status: Improvement noted.


Statement of Condition: During our audit, we noted that controls over cash receipts were inadequate.Deposits were not always being reconciled to cash register tapes and supporting reports. In addition,deposits were not always being made on a daily basis.

Recommendation: We recommend that controls be established to allow for daily reconciliations of cashregister tapes and supporting reports to actual amounts deposited.


(Continued)

15


Summary Schedule of Audit FindingsAs of and for the Years Ended June 30. 2007 and 2006

(Continued)


Statement of Condition: During our audit, we requested supporting documentation for one month'sreimbursement of the Temporary Assistance to Needy Families (TANF) - After School for Alt grant Theagency was unable to locate the supporting documents - sign-in sheets for the month requested.

Recommendation: We recommend that controls be established to ensure that supporting documentationis retained for all reimbursement requests filed.


Corrective Action Plan far Current Year Audit Findings

There is one significant deficiency for the current year audit for the year ended June 30,2007, as follows:

2007-1 SIGNIFICANT DEFICIENCY

Statement of Deficiency. During our audit, we noted that the accountant who maintains the agency'sgeneral ledger is also responsible for the following:

• Preparing checks for mailing once required signatures are obtained.• Preparing deposit slips, recording deposits in general ledger, and taking deposits to the bank.

Recommendation; We recommend that adequate internal controls be established concerning separationof duties, including the following:

• Custody of checks after signature and before mailing be handled by an employee Independent ofalt payable, disbursing, cash, receiving, and general ledger functions.

• Deposit slips be prepared an employee independent of the general ledger function.

Management response: Being a non-profit organization, we are limited in personnel and resources;however, we are evaluating ways to improve the situation relative to the issue of the accountantpreparing checks for mailing. We will seek another employee to assist in the distribution and mailing ofchecks after required signatures are obtained.

Our organization will seek to have another employee assist in preparing deposit slips, which will then bereviewed by the accountant and taken to the bank by another employee other than the accountant.

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Documents

Shreveport Regional Arts Councilapp1.lla.la.gov/PublicReports.nsf/CD3673CE8A24FF0E86257425007318… · Council's management. Our responsibility is to express an opinion on these financial