CA TH O LIC C HA R ITIES
A R C H D IO C ES E O F N EW O R LE
A NS
FinancialStatem ents f
Jun
orthe Year Ended
e 30,2002 and Independ
Report
entA uditors'
Release Date
..
~
_
De[oitte &Touche LLP
Suite 3700
701 PoydrasStreet
New Orleans,Louisiana 70139 3700
Tel:(504)581 2727
Fax:(504)501 7293
ww w.deloitte.com
D eloitte
& Touche
IN DEPENDENT A UDITO RS'REPO RT
M ostReverend A lfred C.H ughes,D .D .,President
Catholic Char
i tiesArchdiocese ofN ew Orleans
N ew Orleans,Louisiana
W e have audited the accom panying statem entoff
inancialposit
ion ofCatholic CharitiesA
r chdiocese of
New Orleans(the"Agency")asofJune30,2002,and therelated st
atem entsofact
ivit
ies,cash f
lows,and
functionalexpensesforthe yearthen ended. These financialst
a tem ents are t
h e responsibility oft
he
m anagem entofthe Agency. Ourresponsibilit
y isto expressan opinion on t
h ese f
inancialst
a tem ents
based on ouraudit. T
h e pr
ioryearsum m ar
ized com pa
r at
ive inform at
ion hasbeen der
ived f
rom the
A gency's2001fm
' ancialstatem entsa
n d,in ou
r reportdated O ctober26,2001,w e expressed a
n
unqualif
ied opinion on those f
inancialst
a tem ents.
W e conducted ourauditin accordance with auditing sta
n dardsgenerally accepted i
n theUnited Statesof
Am erica and the st
a ndardsapplicable to f
inancialauditscontained in Governm entAuditing Standards
issued by the Com ptrollerG eneraloftheU nited States. Those st
a nda
r dsrequire thatw epla
n and perfor
m
the auditto obt
a in reasonable assurance aboutw hetherthe f
inancialst
a tem entsare free ofm aterial
m isstatem ent. An auditincludesexam ining,on a testbasis,evidence supporting the am ountsand
disclosuresin t
h ef
inancialstatem ents. A
n auditalso includesassessing t
h e account
ing pr
inciplesused
and significantestim atesm ade by m anagem ent,asw ellasevaluating the overallfinancialstatem ent
presentation. W e believe thatourauditprovides a reasonable basis forou
r opinion.
In our opinion,such f
inancialstatem entspresentfairly,in allm aterialrespects,t
h ef
inancialposition of
Catholic Char
i tiesA rchdiocese ofN ew O rleansasofJune 30,2002,and the changesin itsnetassetsand
its cash f
l ow s for the year then ended in confor
m ity w ith accounting principlesgenerally accepted in the
Un
i ted States ofA m erica.
In accordance w
i th Governm entAuditing Standards,we have also issued ourreportd
a ted N ovem ber 1,
2002 on ourconsiderat
ion ofthe A gency'sinter
n alcontroloverf
inancialreporting and ourtestsofits
com pliance w ith certain provisionsoflaw s,regulations,contractsand grant
s . Thatrepor
t isan integral
par
t ofan auditperform ed in accordancewith Governm entAuditing Standards and should beread in
conjunctionwiththisreportin consider
ingtheresultsofouraudit.
N ovem ber 1.2002
Deloitte
Touche
Tohm atsu
CA THO LIC C HA R ITIES A RC H D IO C ESE O F N EW O R LEA N S
STA TEM ENTS O F FINA N C IA L PO SITIO N
JU N E 30.2002 A N D 2001
ASSETS
2002
Cash
2001
157,504
3,190,393
4,148,111
18,830
7.719.737
Investm ents
A ccountsreceivable
Prepaid expensesand deferred charges
Property and equipm ent-net
TO TAL A SSETS
$ 15,524,580
$ 15,234,575
LIA BILITIES A ND NET A SSETS
LIA BILITIES:
M anaged cash overdraft
A ccountspayable and accrued expenses
D eferred revenue
Loanspayable
Funds held for others
165,340
1,284,568
425,859
2,272,727
4,148.494
Totalliabilities
N ET A SSETS:
U nrestricted
Tem porarily rest
r icted
6,022,765
4,782,496
Totalnetassets
6,012,566
5,073,515
11.086.081
TO TAL LIA
B ILITIES AND N
E T A SSETS
$15,524f
i80
See notes to f
inancialstatem ents.
-
2-
$15,234,575
CATHO LIC CHA RITIES A RCHDIOCESE O F NEW O RLEANS
STATEM ENTS OF ACTIVITIES
YEAR ENDED JUNE 30,2002,W ITH COM PARATIVE TOTALS FOR JUNE 30,2001
REVENUES:
Public support:
Contributions
Unrestr
icted
Tem porarily
Restrict
ed
$
$ 234,986
$ 1,363,216
109,841
48,000
103,665
1,324,938
102,174
44,368
25,000
779,887
113,359
46,750
115,000
1,227,824
127,943
22,369
25,000
05,015
105,015
120,478
2,563,147
3,216,680
16,399,409
6,399,409
4,908,730
288,614
092
,467,
1,288,614
1,467,092
1,041,883
1,581,689
544~01
66,625
46,734
46,750
115,000
1,227,824
127,943
22,369
903,291
Totalpublic support
Feesand grantsfrom governm entalagencies
659,856
,
,
(12,450)
(1,840,749)
4,739,451
(1,950,875)
22,042,15
Tot
a lrevenues
EXPEN SES:
Program services:
Fostergrandparents
Clinicalcounseling
M atem i~
Transitionalhousing
Adultday health care
Child day care
Inform ation and referral
Em ergency shelter
Job search
Dom estic violence
Aidsservices
Adultresidentialcare
Child residentialcare
(110,]26)
155,446
749
,840,
M iscellaneous
Netassets released from restrictions-operations
Totalotherrevenue
Total
$
155,446
41,939
71,019
2,788,576
2,736,530
(122,576)
20,861,940
(291,019)
422,209
352,880
326,268
237,422
872,780
3,164,718
105,982
856,250
300,880
773,086
385,081
2,597,127
9,552,333
767,813
82,88I
443,741
357,677
20,290
352,353
60,181
422,209
352,880
326,268
237,422
872,780
3,164,718
105,982
856,250
300,880
773,086
385,081
2,597,127
60,181
438,961
306,293
22,043
305,735
29,120
22,031,952
22,031,952
20,672,685
9,552,333
767,813
82,881
443,741
357,677
20,290
352,353
OTt-~ R CBAN GES Transferoffundsheld forthe accountofothersto rest
r icted funds
411,771
376,118
304,782
135,764
784,134
2,614,912
97,555
891,605
206,152
732,056
402,128
2,452,012
9,269,482
804,647
87~15
2,234,460
0,199
CHAN GE IN NET A SSETS
5,073,515
11,086,08
$ 6,022,765
$4,782,496
$10,805,261
Seenotesto f~nancialstattment
s.
-
(280,820)
6,012,566
NET A SSETS AT BEGINNING OF YEAR
N ET ASSETS AT END OF YEAR
(291,019)
3-
2,423,715
8,662,366
$11,086,081
CA TH O LIC C HA R ITIES A R C H D IO C ESE O F N EW O R LEA NS
STATEM ENTS O F CA SH FLOW S
YEA RS EN DED JUNE 30,2002 A ND 2001
OPERA TIN G A CTIV ITIES:
Change in netassets
2002
2001
$ (280,820)
$ 2,423,715
Adjustmentstoreconcilechangein netassetstonetcash
provided by operating act
ivit
ies:
D epreciation
U nrealized losson investm ents
Loss on disposalofproperty
Transferoff
i.
m dsheld forthe accountofothersto restricted funds
Changes in assetsand liabilities:
A ccountsreceivable
Prepaid expenses and deferred charges
M anaged cash overdraft
A ccountspayable and accrued expenses
D eferred revenue
Funds held for the accountof others
663,664
168,474
29,926
681,353
259,242
(2,234,460)
(132,884)
(635,756)
(95,830)
5,6
4 6
2,391
54,937
11,626
468,372
265,969
47,740
78.180
(107,193)
788.450
N etcash provided by operating activities
IN V ESTI
N G A CTIV ITIES:
N etinvestm entactivity
Purchases ofproperty and equipm ent
N etcash used in investing activities
(142,479)
(111,597)
(412,773)
~251,367)
(555~252)
(362~964)
(27
(14,
5,000)
436)
(565,120)
(56,238)
(54,299)
FIN AN CIN G A CTIV ITIES:
N etpaym entsunderline ofcreditagreem ent
R epaym entofloanspayable
(12,057)
N etcash used in fi
n ancing activities
NET D ECREA SE I
N CA SH
CA SH AT B EG IN N IN G OF YEAR
$
CA SH A T EN D O F Y
E AR
See notes to f
i nancialstatem ents
-
4-
101v266
$
157,504
o m
W
c
0
CA THO LIC C HA R ITIES A R C H D IO C ESE O F N EW O R LEA N S
NOTES TO FINA NCIA L STATEM ENTS
YEA R ENDED JUNE 30,2002,W ITH CO M PA RATIVE TOTA LS FO R JUNE 30,2001
SUM M ARY O F SIG N IFIC AN T ACCO UN TIN G PO LICIE S
Organization -CatholicCharitiesArchdioceseofNew Orleans(the"Agency"),anot-for-prof
it
char
itable organization oft
h e Rom an Catholic Church ofthe A
r chdiocese ofN ew Orleans,operates
com m unity socialservice program s and provides adm inist
rative supportand f
inancialm anagem ent
ser
v icesto separately operated charit
a ble program swhich itsponsors. The accom panying f
inancial
st
a tem entsinclude the accountsofallcharit
a ble p
r og
r am sw hich itoperates or sponsors,
BasisofPresentation -TheAgencyclassif
iesitsresourcesforaccou
n ting andrepor
ti
n gpurposesinto
threenetassetcategoriesaccordingto exter
n ally (donor)imposedrestrictions.A descr
ipt
ion ofthe
three netassetcategories follow s:
U nrestricted -A ssets and contributionst
h atare notrestricted by donors or forw hich t
h ere are no
restrict
ions.
Tem porarily restricted -A donor-im posed restrict
ion t
h atperm itsthe A gency to use the donated
assets as specif
ied. The use ofthe assetsisrest
r icted untilpassage oftim e orby actions ofthe
organization.
Perm anently restricted -A donor-im posed restriction t
h atstipulatesthatresourcesbe m aintained
perm anently butper
m itsthe use ofallorpar
t ofthe incom e der
ived.
UseofEstimates-Thepreparat
ion off
inancialstatementsin confor
m it
y with account
ingpr
inciples
generally accepted in the U nited StatesofA m er
ica requiresm anagem entto m ake estim atesand
assum ptionsthataffectthe reported am ountsofassets a
n d liabilitiesand disclosure ofcont
ingentassets
and liabilitiesatthe date ofthe f
inancialstatem entsand the reported am ounts ofrevenuesand expenses
during the repor
ting period. A ctualresults could differfrom those estim ates.
Contributions -A llcont
r ibutionsare considered to be available forunrestricted use unless specif
ically
rest
r icted by the donor.
The value ofcontributed goods and serviceshasbeen recorded as supportand revenue and expense in
theperiodreceivedprovidedthereisan object
ivebasisformeasurementofthevalueofsuch goodsand
ser
v ices and they are signif
icantand for
m an integ
r alpartoft
h e efforts ofthe program .
Allocation of CoststoPrograms-Thecostsofadminist
rativesupportthatrelatetomoret
h an one
prog
r am have been allocated to the separateprogram sbased on unitsofservice,volum e ofact
ivity or
otherequitable basis.
Investm ents -Investm ents are recorded atm arketvalue based on quoted m arketpr
i ces. G ainsand
losses,both realized and unrealized,are included in the st
a tem entofact
ivities.
DeferredRevenue- Deferredrevenuesconsistofamountsreceived which areearmarked forprog
r ams
in the subsequentf
iscalyear.
-
8-
Property and E quipm ent-Property and equipm entare carried atpurchased costorappraised values
w hen acquired by donat
ion orgift,w ith subsequentadditions atcost. D epreciation isprovided on a
straight-line basisoverthe est
im ated usefullivesofthe assets. Leasehold im provem entsare am ort
ized
overthe estim ated usefullivesoft
h e im provem ents.
The estim ated usefullivesused in determ ini
n g depreciation and am ortization follow :
Buildingsand im provem ents
Leasehold im provem ents
Equipm ent
V ehicles
20 -60 years
10 years
5 years
3 years
Income Taxes-TheAgency qualif
iesasatax-exemptorganization underSect
ion 501(c)(3)oft
he
InternalRevenue Code. A ccordingly,no provision forincom e taxeshasbeen included in the
accom panyi
n g fm ancialst
a tem ents.
PriorYearFinancialhl
formation -Thef
inancialst
a tementsi
n cludecertain prior-yearsummarized
com parative inform at
ion in tot
a lbutnotby netassetclass in t
h e st
a tem entsofact
ivit
iesand functional
expenses. Such inform ation doesnotinclude suff
icientdet
a ilto constitute a present
at
ion i
n conform ity
w ith generally accepted accounting principles. A ccordingly,such inform ation should be read in
conjunction with theAgency'sf
inancialst
a tementsfortheyearended June30,2001,from which t
he
sum m arized infor
m at
ion wasderived.
INV E STM EN TS
Investm entsare com prised ofthe follow ing
June 30.2002
M arket
Cost
Value
M oney m arketfunds
Invest
m entpool-Archdiocese
ofN ew Orleans
Corporate stocks
T otal
June 30,2001
M arket
Cost
Value
$ 266,427
$ 266,427
$ 140,700
$ 140,700
2,291,178
25.685
2,807,203
2,274,426
25.685
3,049,693
2,583,290
3,073,630
2,440,811
3,190,393
$2,557,605
$3,073,630
$2,415,126
$3 190,393
Lessallow ance for unrealized
losses on cor
p orate stock
s
Tot
a li
n vestm ents
h e corporate stocksheld atJune 30,2002 and 2001 consistprim arily ofu
T
n listed securit
ies.
The ownership ofthe invest
m entsatJune 30,2002 and 2001is as follow s
2002
U nrest
r icted netassets
Tem porarily restricted netassets
32,494
3.041.136
Tot
al
-
9-
2001
$ 121,483
..
3,068,910
3. PROPERTY AND EQUIPM ENT,NET
A sum m ary ofproperty and equipm entatJune 30,2002 and 2001 follow s
2002
Buildings and im provem ents
Leasehold im provem e
n ts
Equipm ent
V ehicles
$11,691,528
$11,565,688
1,963,350
3,111,433
667,883
17,434,194
1,888,695
2,886,639
632,719
16,973,741
Less accum ulated depreciation and am ortization
(10,453,768)
(9,724,735)
6,980,426
470.731
7,249,006
470.731
$ 7,451,157
$ 7,719,737
Land
Totalproperty and equipm e
n t,net
4.
L O A N S PA Y A BLE
Loanspayable atJune 30,2002 and 2001 are sum m arized as follow s
U nsecured dem and borrow ings,pursuantto a line of
creditperm itting borrowingsup to $2.5 m illion,bearing
interestat6.5% atJune 30,2002,due upon dem and,
issued by the Rom an Catholic Church ofthe
Archdiocese ofN ew Orleans
$1,522,000
$1,796,000
a netbook value approxim ating $308,000 and
$332,000 atJune 30,2002 and 2001,respectively
261,771
277,207
Prom issory note to Rom an Catholic Church oft
he
r chdiocese ofN ew Orleans,non-interestbearing,
A
no scheduled repaym ent
199.520
199.520
$ 1,983,291
$2,2721727
M ortgage notespayable in m onthly installm ents
approxim ating $2,750,including interestatan
annually adjust
ablerate(ranging from 4.63% to
7.86% in 2002and6.59% to 9.15% in 2001);
fnalinst
i
a llm ents due betw een D ecem ber2013
and July 2015;collateralized by realest
a te w ith
Totalloans payable
-
10 -
Annualprincipalpaym entson loanspayable foreach ofthe nextfive yearsand in totalthereafterat
June 30.2002 follow :
Year Ending
June 30.
$1,736,956
2003
2004
2005
2006
2007
Th~ ea~
16,436
17,436
18,436
19,436
174,591
Tom l
Interestpaid during 2002 and 2001,allofwhich wascharged to operations,approxim ated $123,000 and
$161,000,respectively.
5. TEM PO R AR ILY RESTR ICTED N ET A SSETS
Form any yearsthe A gency invested fundson behalfofSt.M ary'sCatholic Orphan BoysA sylum
("St.M ary's").Incomefrom such fundswasper
iodically allocatedtotheAgency toproviderelief
servicesto m ale orphans. D uring 2000,the Board ofD irectors ofSt.M ary'svoted to m odernize the
purposesofthe corporation so thatitsfundscould be used forpurposesconsistentw ith those ofthe
Agency. Restrictionswere m odified to encom passtheAgency'sprogram sproviding reliefservicesto
children. A sa resultofthe m odification ofsuch restrictions and purposes,the rem aining fundsheld on
behalfofSt,M ary'sof$2,234,460 were reclassif
ied f
rom liabilitiesto tem porar
ily restricted netassets
ir~2001.
The follow ing sets forth the com position oftem porarily restricted netassetsatJune 30,2002 and 2001
2002
U nited W ay allocation forsubsequentf
iscalyear
Rest
r icted forreliefser
v icesto children
Restricted forpurchasesofcapitalassets
O ther rest
r ictions
$1,355,767
2,462,509
375,109
589,111
2001
$1,456,480
2,734,460
368,957
513,618
$5,073,515
6.
RETIR
E M EN T PLA N
Through June 30,2002,the A gency had aprof
it-sharing retirem entplan cover
ing substantially allofits
em ployees. Undertheplan,A gency contributions,ifany,w ere determ ined annually atthe discretion of
the Agency. Contribution expensew as$407,000 and $196,000 forthe yearsended Ju
n e 30,2002 and
2001,respectively.
EffectiveJuly 1,2002,theprofit-shar
ing retirementplan wasreplaced with a401(k)plan administered
by the Archdiocese ofN ew Orleans. Eligible em ployeeshad t
h e option to rollovertheirrespective
profit-shar
ing accountbalancetothenew 401(k)plan.Eligibleemployeesm ay electtom ake
contributionsof3% to 16% oftheirg
r ossm onthly salar
y . The A gency isrequired to m ake
contributionsequalto the em ployee contributionsnotto exceed 3.5% oftheirgrossm onthly salary.
-
11
7.
RE LA TED PA R TIES
The Archbishop ofN ew O rleans serves aspresidentofCatholic CharitiesA
r chdiocese ofN ew Orleans.
H e also ser
v esaspresidentofallothercorporations,boardsoftrusteesand separate orga
n izations
sponsored by or operated underthe auspices ofthe A
r chdiocese ofN ew Orlea
n s.
In thenorm alcourse ofoperations,theA
r chdiocese ofN ew O rleanshasm ade and,w hen necessary,
w ould considerm aking availableto t
h e A gency a
n d itsaff
iliated agenciesspecif
ic assistance in the
form ofoperating subsidies,loans,use offacilities and adm inistrative support. D uring the yearsended
June 30,2002 and 2001,the A gency received no directoperating subsidiesfrom t
h eA
r chdiocese of
N ew O rleans. Charges for facilitiesand adm inist
r ative supportare atrates approxim ating cost.
During 2000,the A
r chdiocese ofNew O
r leansissued a $2.5 m illion line ofe
r editto the Agency. At
Ju
n e 30,2002,the Agency had drawn dow
n $1,522,000 ofthe line ofcredit. See Note 4 forfurther
infor
m ation related to loans payable.
During the f
iscalyearsended June 30,2002 and 200l,the A gency purchased com puterhardware a
nd
software f
rom a related party forapproxim ately $33,000 and $10,000,respectively.
8.
O PER A TIN G LEA SE O BLIG A TIO N S
h e Agency operatesa por
T
t ion ofitscom m unity socialserviceprogram s in leased facilitiesunder
operatingleasesexpiring atvariousdatesthrough thef
iscalyear2009.Theleasesaresubjectto
cancellation under cer
t ain circum stances,including substantialchanges in funding in the A gency's
program s. The follow ing isa schedule by yearsoffuture m inim um rentalpaym entsrequired under
those leasesand equipm entleasesthathave initialorrem aining lease term sin excessofone yearas of
June 30.2002:
Year Ending
June 30.
$225,113
2003
2004
2005
2006
2007 and t
h ereaRe
r
127,142
62,891
44,344
70,867
Totalm inim um paym entsrequired
Totalrentalexpense foralloperating leases forthe yearsended June 30,2002 and 2001 approxim ated
$346,000 and $308,000,respectively.
9.
C O N TIN G EN C IES
TheA gency receivesa substantialam ountofitssupportfrom the federaland state governm ent. A
signif
icantreduction in the levelofthis support,ifthisw ere to occur,m ay have a m aterialeffecton the
A gency'sprog
r am sand activities.
The A gency isrequired to subm itrepor
t sto various funding sou
r ces to substantiate the suppor
t
received.T
h eserepor
tsaresubjecttoaudita
n d/orapprovalbytherespectivefundingsources.
-
12 -
The A gency is a party to various lit
igation and otherclaim s,the outcom e ofw hich cannotbe presently
determ ined. M anagem ent'sopinion isthatthe outcom e ofsuch m atters w ould nothave a signif
icant
effecton the A gency's f
inancialposition.
-
13 -
C A T H O LIC C HA R IT IES
A R C H D IO C ES E O F N EW O R LEA N S
IndependentA uditors'Reports and Inform ation
Required by G overnm entA uditing Standards
forthe YearEnded June 30,2002
CA TH O LIC C HA R ITIES A RC HD IO C ES E O F N EW O R LEA NS
TA BLE O F CO NTENTS
Page
IndependentA uditors'Reporton Com pliance and on Inter
n alControl
O verFinancialRepor
t ing Based U pon the A uditPerform ed in
A ccordance w ith Governm entAuditing Standards
IndependentAuditors'Reporton Com pliance and InternalControlO ver
ComplianceApplicabletoEachM ajorProgram,andonthe
Schedule ofG over
n m entalFinancialA ssistance
3
Supplem ent
a ry Schedule ofG overnm ent
a lFinancialA ssist
a nce
5
N otesto Supplem entar
y Schedule ofG over
n m ent
a lFinancialA ssistance
9
ScheduleofFindingsand Questioned Costs
10
St
a tusofPriorY earA uditFindings
13
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www,
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oi
tte.
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D elo itte
& To uche
INDEPEND ENT A UDITO RS'REPO RT O N CO M PLIA NC E A ND O N
INTERNA L CO NTRO L O VER FINA NCIA L REPO RTING BASED UPO N THE
A UDIT PERFO RM ED IN A C CO RDA NC E W ITH G O VERNM EN T A UDITIN G
STA N DA RD S
M ostR everend A lfred C .H ughes,D .D .,President
Catholic Char
itiesArchdiocese ofN ew Orleans
N ew O rleans,Louisiana
W ehaveaudited thef
inancialstatementsofCatholicChar
itiesArchdioceseofNew O
r leans(the
"Agency"),asofand fortheyearended June30,2002,and haveissued ourreportthereon dated
N ovem ber 1,2002. W e conducted ourauditin accordance w ith auditing standards generally accepted
in the U nited StatesofAm er
i ca and the standardsapplicable to f
inancialauditscont
a ined in
Governm entAuditing Standards,issued by the Com ptroller G eneralofthe U nited States.
Com pliance
A spar
t ofobtaining reasonable assurance aboutwhetherthe A gency'sf
inancialstatem entsare f
r ee of
m aterialm isstatem ent,w e perform ed testsofitscom pliance w ith certain provisions oflaw s,
regulations,cont
ractsand grants,noncom pliancew ith which could have a directand m ater
ialeffecton
the deter
m ination off
inancialstatem entam ounts. H ow ever,providing an opinion on com pliance w ith
thoseprovisionswasnotan objectiveofourauditand accordingly,wedonotexpresssuch an opinion.
The results ofourtestsdisclosed no instancesofnoncom pliance thatare required to be reported u
n der
G overnm entAuditing Standards.
ntem alCont
r olO verFinancialRenortin~,
In planning and perform ing our audit,w e considered the A gency'sinternalcontroloverf
inancial
repor
t ing in orderto determ ine ou
r auditing procedures forthe purpose ofexpressing ou
r opinion on
the f
inancialstatem entsand notto provide assurance on the inter
n alcontrolover f
inancialreporting.
O urconsideration ofthe inter
n alcont
r oloverf
inancialreporting w ould notnecessarily disclose all
m attersin the inter
n alcontroloverf
inancialreporting thatm ightbe m ater
i alw eaknesses. A m ater
ial
w eaknessisa condition in w hich the design orope
r ation ofone orm ore ofthe internalcont
r ol
com ponents doesnotreduce to a relatively low levelt
h e risk thatm isst
a tem entsin am ountsthatw ould
be m aterialin relation to the f
inancialstatem entsbeing audited m ay occur and notbe detected within a
tim ely period by em ployeesin the nor
m alcourse ofperform ing their assig
n ed functions. W e noted no
m attersinvolving the inter
n alcont
roloverf
inancialreporting and itsoperation thatw e considerto be
m aterialw eak
n esses.
Deloitte
Touche
Tohm atsu
Thisreportis intended solely forthe inform ation and use ofthe Board ofD irectors, m anagem ent,
othersw ithin the organization and t
h e State ofLouisiana a
n d isnotintended to be and should notbe
used by anyone ot
h erthan these specif
ied parties.
N ovem ber 1.2002
-
2-
Deloitte &Touche LLP
Suite 3700
701 PoydrasStreet
New Orleans,Louisiana 7013g 3700
Tel:(504)5BI 2727
Fsx:/504/56~ 7293
www.
del
oi
tte.
com
D eloitte
& To uche
INDEPENDENT A UDITO RS'REPO RT O N CO M PLIA NCE A ND INTERNA L CO NTRO L
O VER CO M PLIA NC E A PPLICA BLE TO EA CH M AJO R PRO G RA M ,A ND O N THE
SCHEDULE O F G OVERNM ENTA L FINA NCIA L ASSISTA NCE
M ostReverend A lfred C.H ughes,D .D .,President
Catholic Char
i ties Archdiocese ofN ew Orleans
N ew Orleans,Louisiana
Com pliance
W ehaveauditedthecomplianceofCatholicChar
itiesA
r chdioceseofNew Orleans(the"Agency")
withthetypesofcompliancerequirementsdescribed int
h e U.S.Off
iceofM anagementandBudget
(OM B) CircularA-133 ComplianceSupplementthatareapplicabletoeach ofitsmajorprogram sfor
theyearendedJune30,2002.TheAgency'smajorprogramsareidentified in thesummary of
auditors'resultssection oftheaccompanying ScheduleofFindingsand Questioned Costs.
Com pliance w ith the requirem ents oflaw s,regulations,contractsand grants applicable to each ofits
m ajorprogram sistheresponsibility oftheAgency'sm anagement.Ourresponsibility isto expressan
opinion on the A gency'scom pliance based on ouraudit.
W e conducted ourauditofcom pliance in accordance with auditing standardsgenerally accepted in the
U nited StatesofA m erica and the standardsapplicable to f
inancialauditscontained in Governm ent
A uditing Standards,issued by the Com pt
r ollerG eneralofthe United States;and O M B Circular
A-133,AuditsofStates,LocalGovernments,andNon-Prof
itOrganizations. Thosestandardsand
O M B CircularA -133 require thatw e plan and perform the auditto obt
a in reasonable assurance about
whethernoncom pliance w ith the typesofcom pliance requirem entsreferred to above thatcould have a
directandmaterialeffecton amajorprog
r am occurred.An auditincludesexamining,on atestbasis,
evidence aboutthe A gency'scom pliance w ith those requirem ents and perform ing such other
proceduresasw e considered necessary in the circum st
a nces. W e believe thatour auditprovidesa
reasonable basis forou
r opinion. O urauditdoes notprovide a legaldeterm ination on the A gency's
com pliance w ith those requirem ents.
In ouropinion,t
h eA gency com plied,in allm aterialrespects,wit
h therequirem entsrefer ed to above
thatareapplicableto each ofitsm ajorprog
r am sfortheyearended June 30,2002.However,the
resultsofourauditing procedu
r esdisclosed instancesofnoncom pliance w ith t
h ose requirem entsthat
are required to be reported in accordance w ith O M B CircularA -133 and w hich are descr
ibed in the
accompanying ScheduleofFindingsandQuestioned Costsasitems02-1and 02-2.
Deloitte
Touche
Tohm
atsu
-3 -
InternalControlO ver Com nliance
The m anagem entofthe A gency isresponsible forestablishing and m aintaining effective internal
controlovercom pliance w ith requirem entsoflaw s,regulations,contracts and grants applicable to
majorprogram s.In planning andperforming ouraudit,weconsidered theAgency'sinternalcont
rol
overcompliancewith requirementsthatcouldhaveadirectandm ater
ialeffecton amajorprogram in
orderto determ ine our auditing proceduresforthe purpose ofexpressing ou
r opinion on com pliance
and to testand reporton inter
n alcont
rolovercom pliance in accordance with OM B CircularA -133.
Ou
r consideration ofthe Agency'sintem alcont
rolovercom pliance would notnecessar
ily disclose all
m attersin the internalcont
rolthatm ightbe m aterialw eaknesses. A m ater
ialw eaknessisa condition
in which the design oroperation ofone orm ore ofthe internalcontrolcom ponentsdoesnotreduce to
a relatively low levelthe r
i sk t
h atnoncom pliance w ith applicable requirem ents oflaw s,regulat
ions,
cont
ractsand grantsthatwouldbemater
ialin relation to amajorprog
r am being audited may occur
and notbe detected w ithin a t
im ely period by em ployeesin the norm alcourse ofperfor
m ing t
h eir
assig
n ed functions. W enoted no m attersinvolving the inter
n alcont
rolovercom pliance and its
operation thatw e considerto be m aterialw eaknesses.
Schedule ofG overnm entalFinancialA ssistance
W e have audited thebasic f
inancialstatem ents ofthe A gency asofand fort
h e yearended June 30,
2002,and have issued ourreportthereon dated N ovem ber 1,2002. O u
r auditwasperfor
m ed forthe
purpose ofform ing a
n opinion on the basic f
inancialstatem entst
a ken asa whole. The accom panying
Schedule ofG over
n m entalFinancialA ssistance ispresented forpur
p oses ofadditionalanalysis as
required by O M B CircularA -133 and isnota required partofthe basic f
inancialstatem ents. This
scheduleistheresponsibility ofthemanagementoftheAgency.Such inform ationhasbeen subjected
to the auditing proceduresapplied in the auditofthe basic f
inancialstatem entsand,in ouropinion,is
fairly stated,in allm ater
ialrespects,in relation to thebasic f
inancialstatem entstaken asa whole.
Thisreportisintended solely forthe infor
m ation and use ofthe Board ofD irectors,m anagem ent,
otherswithin the organization and the State ofLouisiana and isnotintended to be and should notbe
used by anyone otherthan these specif
i ed parties.
N ovem ber 1,2002
-
4-
CA THO LIC C HA R ITIES A RC HD IO C ESE O F N EW O R LEA NS
SUPPLEM ENTARY SCHEDULE O F G OVERNM ENTAL FINANCIA L A SSISTANCE
YEA R ENDED JUNE 30,2002
Federal
CFDA #
Passed through the State ofLouisiana
and otherlocalagencies:
D epartm entofSocialServices
O ff
ice ofCom m unity Service
Child ResidentialCare
Child D ay Care
Refugee SocialServices
Targeted A ssistance
SocialServicesBlock Grant
R esidentialSuper
v ised A partm ent
Therapeutic Fam ily Ser
v ices
IndependentLiving -Children'sTrustFund
IndependentLiving
93.667
93.667
93.566
-
93.566
-
93.667
93.667
93.
U nkno~ n
93.674
93.674
-
-
-
-
Revenue on
A ccrualBasis
$ 3,969,702
1,958
60,349
165,093
108,000
66,248
1~30
289,980
9,944
4,672,704
D epartm entofSocialSer
v ices
Of
i ce ofCom m unit
f
y Ser
v ices
TAN F Y outh in Transition M entoring Program
-
IndependentLiving
D epartm entofH ealth and H ospitals
Of
i ce ofthe Secretary
A dultResidentialCare
Child ResidentialCare
A dultD ay H ealth Care
-
-
M ater
n it
y
93.558
72,462
93.778
93.778
93.778
93.778
1,588,623
1,630,840
313,205
8,261
3.540.929
Departm entofPublic Safet
y and CorrectionsOf
i ce ofY outh D evelopm ent
Child ResidentialCare
-
93.U nknow n,
CFM S #540024
2.061.977
93.U nk
n ow n,
CFM S #566675
27,139
D ivision ofA dm inistration
-
Louisiana State Universit
y Health SciencesCenter
TotalCom m unit
y Action
-
Child D ay Care
D epartm entofEducation -SpecialFood Program
Child D ay Care
A dultD ay H ealth Care
Em ergency Shelter
D om estic V iolence
0.558
0.558
0.558
0.558
-
-
-
242,192
64,069
19,751
5.813
331.825
D epartm entofSocialSer
v ices
Louisiana Rehabilitation Services
D eafA ction Center
84.126
-
34,080
(Continued)
-
5-
CA THO LIC C HA R ITIES A RC H D IO C ESE O F N EW O RLEA N S
SUPPLEM ENTA RY SCHEDULE O F G OVERNM ENTA L FINANCIAL ASSISTANCE
YEA R END ED JUNE 30.2002
Federal
CFDA #
Revenue on
A ccrualBasis
D epartm entofSocialServices
Louisiana Com m ission on D eaf
D eafA ction Center
84.126
43.453
Corporation forN ationalService
FosterG randparents
94.011
346,699
93.U nknow n,
CFM S #563950
351,148
-
-
Of
i ce ofM entalH ealth and Substance A buse
A dul~ResidentialCare
-
D epartm entofH ousing and U rban D evelopm entJefferson Pa
r ish Com m unity D evelopm entD epartm ent
State Em ergency ShelterGrant
Em ergency Shelter Care
14.231
20,762
D epartm entofH ousing and U rban D evelopm ent
Jefferson Parish Com m unity D evelopm ent
Em ergency ShelterCare
14.231
178,004
D epartm entofLabor
Jefferson Parish Com m unity D evelopm entD epartm ent
Com m unity D evelopm entBlock G rant
Em ergency ShelterCare
14.218
95,000
U nited StatesD epartm entofH ealth and H um an
Services -Passed through U nited States Catholic
Conference
M atch GrantProgram
PCRRP
K osovar G rant
93.567
93.567
93.576
63,572
18,532
395
82.499
19.U nknow
n
19.U nknow
n
19.U nknown
15,907
11,536
10,341
37.784
-
-
-
-
-
U nited StatesD epartm entofState -Passed through
United States Catholic Conference
Reception and Placem entProg
r am -A dm inistrative
Reception and Placem entProgram -D irect
PO W R
-
-
-
U nited StatesD epartm entofJustice -Passed through
U nited S~ tes Catholic Conference
Cuban and H aitia
n Prog
r am
16.201
1,575
D epar
tm entofSocialServicesO ffice ofFam ily Suppor
t
Job Search
93.561
149,968
-
-
(Cont
inued)
-
6-
CA THO LIC C HA RITIES A RC HDIO C ESE O F NEW O RLEA NS
SUPPLEM ENTA RY SCHEDULE O F G OVERNM ENTA L FINA NCIA L ASSISTA NCE
YEA R ENDED JUNE 30.2002
Federal
C FDA #
Louisiana O ff
ice ofW om en's Services
TA N F Fam ily V iolence Children's Services
D om estic V iolence
93.558
Louisiana O ff
ice ofW om en's Services
D om estic V iolence
93.671
-
-
R evenue on
A ccrualB asis
39.167
City ofN ew O rlea
n sCom m unity Block Grant
SocialAdjustment
14.218
27,850
14.241
180.441
16.590
16.590
22,905
2,736
25.641
Louisiana D epartm entof SocialServices City ofN ew Orleans State Em ergency Shelter Grant
D om estic V iolence
14.231
53,735
D epartm entofH ousing and U rban D evelopm entCit
y ofN ew OrleansEm ergency ShelterGra
nt
Em ergency Shelter Care
14.231
51.719
-
U .S.D epartm entofJustice,O ff
ice ofJustice Program s-
Cit
y ofN ew OrleansOffice ofCrim inalJustice
-
-
D om estic V iolence
Im m igrant/R ethgee Ser
v ices
-
-
City ofN ew Orleans
Tulane X avierN ationalCenterforthe U rban Com m unity
Job Search
93.U nknow n
112, 160
Children's H ospital,Ryan W hite Title IV
Child R esidentialCare
93.153
27.654
D epartm entofEducation-SchoolFood Ser
v ice
Child R esidentialCare
10.553
205.689
4.235
4.235
4.235
4.235
214,036
207,44l
5,580
24~921
451,978
-
-
-
D epartm entofH ousing and U rban D evelopm ent,
Supportive H ousing G rant
TransitionalH ousing
Em ergency Shelter Care
Child D ay Care
A dultR esidentialCare
-
(Continued)
7-
CATHO LIC C HA R ITIES A RC H D IO C ESE O F N EW O R LEA N S
SUPPLEM ENTA RY SC HED ULE O F G O VERNM ENTA L FINA NCIA L A SSISTA NC E
Y EA R END ED JUNE 30,2002
Federal
C FDA #
Revenue on
A ccrualB asis
D epartm entofH ealth and H ospitalsO ff
ice ofPubtic H ealth
Im m igrant/R eihgee Services
93.576
76.996
U nited W ay Em ergency Food/ShelterProgram
Em ergency A ssist
a nce
Em ergency ShelterCare
D om estic V iolence
83.523
83.523
83.523
41,682
27,297
9~599
78.578
N ew O rleansRyan W hite Title ICom prehensive
A ID S Planning Council-City ofN ew Orleans
AID S Services
93.914
101.472
93.U nknown,
JPH SA #423
93.U nknow
n ,
JPH SA #309
23,570
-
-
-
Jefferson Parish H um an ServicesA ut
h ority
I D S Ser
A
v ices
-
-
A dultResidential
2,508
26.078
Louisiana C om m ission Law Enforcem entA ssist
a nce
A dm inistration,LegalA ssistance Program
-
Im m igrant/Refugee Ser
v ices
-
D om estic V iolence
D epartm entofEducation
Child and A dultCare Food Program -Com m odities
Child D ay Care
A dultD ay H ealth
Em ergency Shelter
D om estic V iolence
-
-
U nited StatesD epartm entofJustice
N ew O rleansLegalA ssistance Corporation
D om estic V iolence
-
16.575
16.575
28,569
141~732
170,301
58
58
58
58
10,237
3,500
1,087
315
15.139
16.524
28.342
93.604
4,318
U nited St
a tesD epartm entofH ealth and H um an Services
Of
i ce ofR efugee Resettlem ent
Lutheran Im m ig
r ation and Refugee Services
-
Immigrant/Reti~geeServices
TO TA L G O V ERN M ENTA
L FIN AN CIA
L A SSISTA N CE
(Concluded)
-
8-
CA THO LIC C HA RITIES A RC HDIO C ESE O F NEW O R LEA NS
NOTES TO SUPPLEM ENTA RY SCHEDULE O F G OVERNM ENTA L FINA NCIA L A SSISTA NCE
YEA R ENDED JUNE 30,2002
1.
BA SIS O F PRE SEN TA TIO N
The accom panying Schedule ofGover
n m entalFinancialA ssistance hasbeen prepared on the accrual
basisofaccounting. Grantrevenues are recorded forf
inancialreporting purposesw hen the A gency has
m etthe costreim bursem entorfunding qualif
icationsfortherespective grants. T
h e dollarthreshold
used to distinguish betw een Type A and Ty
p e B prog
r am swas$491,982.
Catholic CharitiesArchdiocese ofN ew Orleansreceivesa substantialportion ofitsfunding in the form
ofgovernm entalf
inancialassistance thatispassed through the St
a te ofLouisiana. The State isrequired
to repor
t z,
eparately the am ountoffederaland st
a te dollarsitpassesto Catholic CharitiesA
r chdiocese
ofN ew Orleans. H ow ever,the St
a te isnotableto disagg
r egatethisinform ation. Thus,Cat
h olic
CharitiesArchdiocese ofN ew Orleansisunable to separately identify governm ent
a lexpendituresby
whethert
h ey are funded with federalorst
a te dollars. Due to thislack ofinform ation,a deter
m ination
ofwhich specif
icrevenuedollarfundsarebeing expended (i.e.,governm entfu
n ds,United W ay funds,
contributions,etc.)cannotbemade.Duetothesecircum st
ances,asupplem ent
ary scheduleof
expendituresoffederalaw ardscannotbe com piled. A sa result,a schedule ofgovernm entalf
inancial
assistance(revenue-focused)isprepared ever
y year.
h isinability to identif
T
y aggregatefederaland state grantexpendituresdoesnotlimitCatholicCharities
Archdiocese ofN ew O rleans'sability to identify and isolate expendituresby funding entity orcontract.
2.
PA YM EN TS TO SU BR E C IPIEN T S
There w ere no paym entsto subrecipients forthe f
i scalyearended .
rune 30,2002
3.
C FD A N U M BER S
Cont
ractorcatalog ofFederalDomesticAssistance (CFDA)Numbersarepresented forallindividual
aw ards scheduled,w here applicable. CFD A N um bersw ere notavailable forcertain state agency
funding sources.
-
9-
CA THO LIC C HA RITIES A R C H D IO C ES E O F N EW O R LEA N S
SCHEDULE O F FINDING S A ND Q UESTIO NED CO STS
YEA R ENDED JUNE 30,2002
PAR T I- SUM M AR Y OF A U DITOR S'RESU LTS
1.
The independentauditors'reporton the f
inancialstatem entsexpressed a
n unqualif
ied opinion.
2. h
T e st
a tem entthatreportable conditionsin internalcontrolw ere disclosed by the auditofthe
inancialstatem entsand whetherany such conditionsw ere m aterialw eaknessesisnotapplicable
f
N o instance ofnoncom pliance considered m aterialto the fm ancialst
a tem entsw as disclosed by
the audit.
4. Thest
a tementt
h atreportableconditionsin inter
n alcont
rolovermajorprogram sweredisclosed
by the auditand w hetherany such conditionsw ere m ater
i alw eaknesses isnotapplicable.
5. T
h eindependentauditors'repor
t on complia
n cewithrequirementsapplicabletomajorprogram s
expressed an unqualif
ied opinion.
6. T
h e auditdisclosed f
indingsrequired to be reported by OM B CircularA -133
7. M ajorprogramsforthef
iscalyearended June30,2002 were
DepartmentofSocialServices-Off
iceofCommunity Service(CFDA #93.667,93.566,
93.674)
Departm entofHealth andHospitals-Off
iceofthe Secretary (CFDA #93.778)
Depar
tmentofPublicSafety and Corrections-Off
iceofYouth Developm ent(CFDA
#93.Unk
n own,CFM S #540024)
TotalCommunit
y Action (CFDA #93.600)
Catholic CharitiesA rchdiocese ofN ew O rleansreceivesa substantialpor
t ion ofits funding
in the form ofgover
n m entalf
inancialassista
n ce thatispassed through t
h e St
a te of
Louisiana. T
h e State isrequired to reportseparately the am ountoffederala
n d st
a te dollars
itpassesto Catholic CharitiesA
r chdiocese ofN ew O rlea
n s. H ow ever,the St
a te isnotable
to disaggregate this infor
m ation. T
h us,Catholic CharitiesA
r chdiocese ofN ew Orleansis
unable to separately identify governm e
nt
a lexpendituresby whetherthey are funded w it
h
federalor st
a te dollars. D ue to thislack ofinfor
m ation,a determ ination ofw hich specif
ic
revenuedollarfu
n dsarebeing expended (i.e.,gover
n mentfunds,United W ay funds,
contributions,etc.)cannotbemade.Duetothesecircum st
ances,asupplem e
n tar
y schedule
ofexpendituresoffederalaw ards cannotbe com piled. A sa result,a schedule of
governmentalf
inancialassist
ance(revenue-focused)ispre
p ared ever
y year.
h isinability to identify agg
T
r egate federaland st
a te g
r antexpendituresdoesnotlim it
CatholicChar
itiesA
r chdioceseofNew Orleans'sabilit
y toidentif
y and isolate
expendituresby fu
n ding entity orcontract.
8. A threshold of$491,982 w asused to dist
inguish betw een Type A and Ty
p e B prog
r am sasthose
term s are def
ined in O M B CircularA -133.
9. T
h eauditeedid qualif
y asalow-r
isk auditeeasthatterm isdef
ined in OM B CircularA-133
-
10 -
PA R T II -FIN A N CIAL STA TEM EN T FIND IN G S SECTIO N
There w ere no f
indingsrelated to the f
inancialstatem entsforthe yearended June 30,2002
CO STS SECTION
02-I H eaf
in~ and/orV ision Screenings.TotalCom m uniW A ction CFD A #93.600
Condition
In exam ining tw enty-f
ive participants'eligibility ata Child D ay Care program ,w e noted eight
inst
a ncesw here the participants'recordsdid notcontain hearing and/orvision screenings w ithin fortyive days afterentering the program .
f
Criteria
The H ead Startprogram requiresthe A gency toprovidehealth and developm entscreeningsforall
participantsw ithin forty-f
ive days afterthe star
t ofthe prog
r am orw ithin forty-f
ive daysafterthe
child enters the prog
r am .
Effect
The A gency did notprovide necessary vision screeningsw ithin the tim e fram e required by Total
Com m unity A ction due to the lack ofavailability ofdoctorsw ho are m andated to perform the
screeningsw ithin the forty-f
ive day tim e f
r am e.
Cause
A lthough the A gency hasprocedures foradhering to the perform ance standardsofthe program ,it
appearsthatin som e instancesthe prog
r am doesnotprovide the required screeningstim ely.
R ecom m endation
W e recom m end the A gency adhere to itspoliciesa
n d proceduresby prov
i ding the required screenings
ofpar
t icipantsw ithin the required tim e fram e.
M anaeem ent'sR esnonse
TotalCommunit
y Action (TCA)requiresvision screeningswithin 45 daysofachild'sentry into a
H eadstartday care prog
r am and there w ere severalchildren w ho did nothave vision screenings. TCA
offersreferrals forthese screenings,to a lim ited listofexam iners,during t
h e m onth ofSeptem ber. If
a child com esinto the program atsom e tim e ot
h erthan the startofthe day ca
r e year,itisthe
responsibility ofthe parentto obt
a in these screenings. Unfortunately,itisdiff
icultto enforce this
schedule on the parentsafterthe child is already in the prog
r am asthere isno for
m alm echanism for
follow -up and enforcem entofthisrequirem ent.
02-2 Incom e V erif
icat
ion.TotalCom m unity A ct
ion CFD A #93.600
Condition
In exam ining twenty-f
iveparticipants'eligibilit
y ata child day care program ,wenoted one instance
w here the participant'srecord did notcontain incom e ver
if
ication updated every tw o years.
The H ead Startprog
r am requirest
h e A gency to m aintain incom e verif
ication docum entto be
com pleted every t
w o yearsforallparticipants.
Effect
The A gency did notupdate necessar
y incom e ver
if
ication w it
hi
n t
h e tim e fram e required by Tot
al
Com m unit
y Act
ion.
Cause
A lthough t
h e A gency hasproceduresforadher
ing to t
h eperform ance standardsoft
h eprog
r am ,it
appearsthatin thisinst
a nce the program doesnotupdate incom e verif
ication t
im ely.
W e recom m end the A gency adhere to itspoliciesand proceduresby updat
ing the required i
n com e
verif
icat
ion docum entsofpar
t icipantsw ithi
n the required tim e f
r am e.
M anaf
fem ent's R esnonse
Tot
a lCom m unity A ction requiresi
n com e ver
if
ication ever
y t
w o yearsf
r om originaldate ofentry.
W ith the exception ofone child,alleligible participantsm etthisrequirem ent. Itisthe responsibility of
each centerto review and update participantf
iles. Effective July 1,2002,each eenterisrequired to
subm itto the A dm inistratora listofpar
ticipantsrequiring recer
tif
icat
ion. The A dm i
n istratorw ill
insure thatthe verification processis com pleted.
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CA TH O LIC C HA R ITIES A RC H DIO C ES E O F N EW O R LEA N S
STATU S O F PRIO R YEA R A U DIT FINDING S
YEA R END ED JUNE 30,2002
W e noted fourinstanceswhere participantsin the H ead St
ar
t program did notreceive vision screenings
w ithin forty-f
ive daysafterenter
ing t
h e prog
r am .
Asnoted in t
h eaccompanying ScheduleofFindingsand Questioned Costs,i
n stanceswerenoted in the
currentyearw he
r et
h e Prog
r am par
t icipantsdid notreceive hearing a
n d/orvision screeningsw ithin t
he
required tim e per
iod.
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