big brothers big sisters of southwest louisiana,...

BIG BROTHERS/BIG SISTERSOF SOUTHWEST LOUISIANA, INC

FINANCIAL STATEMENTS ANDINDEPENDENT AUDITORS' REPORT

Year Ended December 31,2007

Under provisions of state law, this report is a publicdocument. Aeopy 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

ContentsPage

Independent Auditors' Report 2

Financial Statements:

Statement of Financial Position 3-4

Statement of Activities 5

Statement of Functional Expenses 6

Statement of Cash Flows 7

Notes to Financial Statements 8-13

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance with Government Auditing 14-15

Schedule of Findings and Questioned Costs 16

Schedule of Prior Year Findings 17

Management's Corrective Action Plan 18

Management Letter 19

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INDEPENDENT AUDITORS' REPORT

Board of DirectorsBig Brothers/Big Sisters of

Southwest Louisiana, Inc.Lake Charles, Louisiana

We have audited the accompanying statement of financial position of Big Brothers/Big Sisters ofSouthwest Louisiana, Inc. (a non-profit organization) as of December 31, 2007 and the related statementsof activities, functional expenses, and cash flows for the year then ended. These financial statements arethe responsibility of the Organization's management Our responsibility is to express an opinion on thesefinancial statements based on our audit. The prior year summarized comparative information has beenderived from the Organization's 2006 financial statements and, in our report dated April 7, 2008, weexpressed an unqualified opinion on those financial statements.

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

In our opinion, the financial statements referred to in the first paragraph present fairly, in all materialrespects, the financial position of Big Brothers/Big Sisters of Southwest Louisiana, Inc. as of December 31,2007 and the changes in net assets and its cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report datedApril 7, 2008 on our consideration of Big Brothers/Big Sisters of Southwest Louisiana, Inc.'s internalcontrol over financial reporting and on 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 thescope of our testing of internal control over financial reporting and compliance and the results of thattesting and not to provide an opinion on the internal control over financial reporting or on compliance.That report is an integral part of an audit performed in accordance with Government Auditing Standardsand should be considered in assessing the results of our audit.

McMullen and Mancuso, CPAs, LLC

April 1, 2008

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Big Brothers/Big Sisters of Southwest Louisiana, Inc.

STATEMENT OF FINANCIAL POSITION

December 31,2007with comparative totals for 2006

ASSETS

CURRENT ASSETSCash and cash equivalents (Note K)Investments (Note L)Unconditional promises to give (Note 1}Less allowance for uncollectible pledgesGrants receivableAccrued interest receivableAccrued video revenuePrepaid expenses

Total current assets

2007

201,052326,588203,238(13,970)11,5026,4862,611

18,234

2006

237.059211.128198.478(13,970)12.9835,0803.544

19.432755,741 673,734

PROPERTY AND EQUIPMENT (Note A-5)Furniture and equipmentLeasehold improvementsBuildingBuilding improvements

Less accumulated depreciation

LandNet property and equipment

OTHER ASSETSLong - term unconditional promises to give (Note I)

Total Assets

140.8038,494

380,998218.903749,198

(250.959)498,23920.052

518.291

22.450

131.386

360,998218.903731.287

(224.928)506,35920.052

526,411

42,685

$ 1.296.482 $ 1,242.830

The accompanying notes are an integral part of these statements.


STATEMENT OF FINANCIAL POSITION

December 31, 2007with comparative totals for 2006

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESIncome tax payableAccounts payable-tradeAccrued expensesDeferred support (Note F)Current portion of long-term debt (Note H)

Total current liabilities

LONG TERM LIABILITIES, less current portionNotes payable (Note H)

Total liabilities

NET ASSETSUnrestrictedOperatingFixed Assets

Total unrestricted net assets

Temporarily restrictedTotal net assets

Total Liabilities and Net Assets

2007

34,296

34,296

2006

10,026 $19,1051,6653,500

-

5.73514,4861,9366,500

12,61841,275

74,390115,665

578,202498,239

1,076,441

185,7451,262,186

443,854506,359950,213

176,9521,127,165

$ 1,296,482 $ 1,242,830



STATEMENT OF ACTIVITIES

Year ended December 31,2007with comparative totals for 2006

2007 2006

REVENUE, GAINS AND OTHER SUPPORTUnited Way of Southwest LouisianaGrants and service feesContributionsInvestment earningsOtherBingo revenuesFund-raising/special events

Total revenues and gainsNet assets released from

restrictions

TOTAL REVENUES, GAINS AND OTHER SUPPORT

EXPENSES AND LOSSESProgram service-community servicesManagement and genera.!Fund-raising/special eventsBingo

TOTAL EXPENSES AND LOSSES

CHANGE IN NET ASSETS

NET ASSETS AT BEGINNING OF YEAR,AS ORIGINALLY REPORTED

PRIOR PERIOD ADJUSTMENT

NET ASSETS AT BEGINNING OF YEAR,AS RESTATED

NET ASSETS AT END OF YEAR

TEMPORARILYUNRESTRICTED RESTRICTED

- $533,74127,46319,5666,029

945.710139,054

1,671,563

171,328

1,842,891

828,70448,73052,876

786,353

1,716,663

126,228

950,213

.

950.213

1,076.441 $

176,468 $

600

5,135182,203

(171,328)

10,875

2,082

2,082

8.793

176,952

.

176,952

185,745 $

TOTAL

176,468 $533.74128,06319,5666.029

945,710144.189

1,853,766

-

1,853,766

828.70448.73054,958

786,353

1,718,745

135,021

1,127,165

-

1,127,165

1,262.186 $

TOTAL

171,328649.27537,46018,0311,943

786,183254,536

1,918.756

760

1.919,516

791,08244,98179,056

751,107

1,666,226

253,290

878,375

(4,500)

873,875

. 1.127.165


Big Brothers/Big Sisters of Southwest Louisiana, Inc.STATEMENT OF FUNCTIONAL EXPENSES

For the year ended December 31,2007

with comparative totals for 2006

ActivitiesBad debt expenseBank feesBingo awards and progressiveContract laborDuesFGP programFundraisingHospitalization/health benefitsInsuranceInterestMeeting and trainingMiscellaneousOffice suppliesOther programsPayroll taxesPostagePrintingProfessional feesPublicity and promotionRent and occupancyRecruitmentRental and maintenanceRetirementSalariesSecuritySuppliesTaxes and licensesTelephoneTravel and transportationUtilities

Total before depreciationDepreciation

TOTAL EXPENSES

Supporting ServicesProgram ManagementServices and General

FundRaising Bingo

200710,314 $

-243

-83,6539,537

202,238-

34,67725,132

2,6713,2382,331

12,60311,32520,3264,5731,086

10,663315

12,1171,7889,275

29,553261,226

6626,610

-13,64229,9726,846

806,61622,088

; 828,704 $

849 3-

20-

6,889785

--

1,9611,960

220266192924

-1,106

30589

87826

664147730

1,65324,244

55413

-795

1,290450

46,9111,819

48,730 S

J 971 $-

23-

7,873897

-19,9452,2422,241

251305219

1,056-

1,264349103

1,00430

759168834

1,8907,024

62471

-909

1,474515

52,8792,079

1 54,958 $

- t•9

-

568,259----•

1,280---

724-

3,715--

1,000-

62,500---

48,6479,300

65,72325,160

---

786,30845

786,353 $

Total Programand Supporting

Service Expense2007

12,134 $-

286568,25998,41511,219

202,23819,94538,88030,6133,1423,8092,742

15,30711,32526,411

5,2271,278

13,545371

76,0402,103

10,83933,096

341,14110,07973,21725,16015,34632,7367,811

1,692,71426,031

1,718,745 $

200610,70813,971

328560,59277,1279,647

229,57744,36848,26230,871

7,1102,8792,731

13,3483,990

21,7605,4401,1928,479

-68,579

-10,28733,373

298,3329,909

60,83415,19014,95928,3597,906

1,640,10826,118

1,666,226



STATEMENT OF CASH FLOWS

Year ended December 31,2007,with comparative totals for 2006

2007 2006CASH FLOWS FROM OPERATING ACTIVITIES

Increase (decrease) in net assetsAdjustments to reconcile change in net assets tonet cash provided (used) by operating activities

DepreciationBad debt

(Increase) decrease in operating assetsGrants receivableAccrued video revenueAccrued interest receivablePrepaid expensesUnconditional promises to givePledges receivable

Increase (decrease) in operating liabilitiesAccounts payable-tradeDeterred supportAccrued expensesGrant funds payableIncome tax payable

NET CASH FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of certificates of depositDividend reinvestmentsRedemption of securitiesPayments for property, equipment and improvements

NET CASH FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIESPayments on long-term debt

NET INCREASE (DECREASE) IN CASH ANDCASH EQUIVALENTS

BEGINNING CASH AND CASH EQUIVALENTS

ENDING CASH AND CASH EQUIVALENTS

Supplemental Disclosure:Income tax paid in the year ended December 31,2007 was $20,574.Interest paid in the year ended December 31,2007 was $3,142.

$ 135,021 $ 253,290

26,031-

1,481933

(1,406)1,198

(4,760)20,235

4,619(3,000)

(271)-

4,291

26,11813,971

6,634997

(5,080)1,013

(6.589)(69,835)

8872,800(849)

(4,357)5,469

184,372

(115,460)

(17,911)(133,371)

(87,008)

(36,007)

237.059

$ 201,052 $

224,469

(210,000)(1,128)1,543

(12.600)(222,185)

(62.386)

(60,102)

297.161

237.059



NOTES TO THE FINANCIAL STATEMENTSDecember 31,2007

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Big Brothers/Big Sisters of Southwest Louisiana, Inc. have been prepared onthe accrual basis and in conformity with the standards promulgated by the American Institute of CertifiedPublic Accountants in its audit guide for voluntary health and welfare organizations.

1. Organization and Purpose

Big Brothers/Big Sisters of Southwest Louisiana, Inc. is a not-for-profit organization whose mainpurpose is to provide children from single-parent homes with the confidence and desire to developinto loving and productive adults through the warmth and friendship of a caring adult volunteer.The Organization's purpose is carried out through three offices located throughout SouthwestLouisiana.

2. 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 Or^aniyations. 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.

3. Cash and Cash Equivalent

For purposes of the Statements of Cash Flows, the Organization considers all unrestricted, highlyliquid investments with an initial maturity of three months or less to be cash equivalents.

4. Use of Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions. This will affect the reportedamount of assets and liabilities, disclosure of contingent assets and liabilities at the date of thefinancial statements, and the reported amounts of revenues and expenses during the reportingperiod. Actual results could differ from these estimates.

5. Property and.Equipment

The Organization follows the practice of capitalizing all furniture and fixtures acquired in excessof $250. Donated fixed assets are recorded as support at then- estimated fair value at the date ofdonation; all other fixed assets are recorded at cost. Depreciation is provided over the estimateduseful lives of the assets using the straight-line method. Depreciation amounted to $26,031 for theyear ended December 31, 2007, based on an estimated useful life of five years for equipment andforty years for buildings.



NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

6. Concentration of Revenue and Support

A majority of the revenue for the Organization's programs is provided by bingo revenues (51%)and by various donors through contributions and fundraisers. If the Organization no longer heldthe bingo sessions, or there were significant reductions in amounts received by donors, theoperations of the Organization could be adversely impacted.

7. Public Support and Revenue

All contributions and grants are considered to be available for unrestricted use unless specificallyrestricted by the donor or the grantor.

The Organization receives funding primarily from the United Way of Southwest Louisianaindividual contributions, fundraisers, grants, bingo revenues, interest, and other income.

8. Investments

Investments in marketable equity securities with readily determinable fair values are stated at Mrmarket value. Donated investments are reflected as contributions at their market values at date ofreceipt. Unrealized gains and losses are included in the change in net assets in the accompanyingStatement of Activities.

9. Advertising Costs

Advertising costs are charged to operations when incurred. For the year ended December 31,2007, the Organization incurred no advertising costs.

10. Contributed Services

During the year ended December 31, 2007, the value of contributed services meeting therequirements for recognition in the financial statements was not material and has not beenrecorded. In addition, many individuals volunteer their time and perform a variety of tasks thatassists the Organization, but these services do not meet the criteria for recognition as contributedservices.

11. Comparative Totals

The financial statements include certain prior-year summarized comparative information in totalbut not by net asset class. Such information does not include sufficient detail to constitute apresentation hi conformity with generally accepted accounting principles. Accordingly, suchinformation should be read in conjunction with the Organization's financial statements for the yearended December 31,2006, from which the summarized information was derived.



NOTE B - FAIR VALUES OF FINANCIAL INSTRUMENTS

The following methods and assumptions were used by the Organization in estimating its fair valuedisclosures for financial instruments:

Cash, cash equivalents, short-term unconditional promises to give, and note payable: The carrying amountsreported in the statement of financial position approximate fair values because of the short maturities ofthose instruments.

Short-term investments: The fair value of investments is based on quoted market prices for those similarinvestments.

Long-term unconditional promises to give: The fair value of promises to give that are due in more than oneyear is estimated by discounting the future cash flows using a current risk free rate of return based on theyield of a U.S. Treasury Security with a maturity date similar to the expected collection period.

NOTE C - FUNCTIONAL ALLOCATION OF EXPENSES

Expenses were allocated in the accompanying financial statements to program and support servicesfunctional expense groups. The methods of allocation were based on the Organizations estimates of therelative proportion of various staff members' time and effort between program and support services as wellas the Organization's estimates of the amount of each expense utilized for program or support servicefunctions.

NOTE D - INCOME TAXES

Big Brothers/Big Sisters of Southwest Louisiana, Inc. was incorporated under the laws of the state ofLouisiana. The Organization is operated exclusively for charitable services and has qualified for theexemption from Federal income taxes under Section 501 (c) (3) of the Internal Revenue Code. In addition,the Organization has been determined by the Internal Revenue Service not to be a private foundation withinthe meaning of Section 509 (a) of the Code. The Organization is subject to income tax on unrelatedbusiness income which includes the net pull tab profit received from the bingo operations. Income taxamounted to $24,865 for the year ended December 31, 2007.

NOTE E - RETIREMENT PLAN

The Organization participated in a defined contribution retirement plan that covers all full-time employeesfulfilling the eligibility requirements set by the plan underwriter (Mutual of America). Contributions to theplan were based on twelve percent of gross wages and amounted to $33,096 for the year ended December31, 2007. In compliance with the requirements of the Tax Reform Act of 1986, the Board of Directors onSeptember 17, 1997 voted to amend its retirement plan. On March 20, 1998, the Internal Revenue Serviceissued a favorable determination letter regarding this amendment.

NOTE F - DEFERRED SUPPORT

Deferred support in the unrestricted fund includes $3,500 received in the current year for contributionsmade to support the 2008 Bowl for Kids Sake. These receipts are reported as deferred items until the eventtakes place.

10



NOTE G- COMPENSATED ABSENCES

Employees of Big Brothers/Big Sisters of Southwest Louisiana, Inc. are entitled to paid vacation, paid sickdays, and personal days off depending on job classification, length of service and other factors. The valueof these compensated absences was not recorded due to their immateriality. The Organization's policy is torecognize the costs of those compensated absences when actually paid to employees.

NOTE H - UNCONDITIONAL PROMISES TO GIVE

During the year ended December 31, 2007, the Organization received its United Way allocation of$176,468. This allocation is temporarily restricted as to time of receipt and is properly reflected in theaccompanying Statement of Activities as an increase in temporarily restricted net assets. Uncollectibleallocations are expected to be insignificant.

In addition, the Organization held a fundraiser in 2006 of which donors pledged a total of $69,835 for thenext five years. The amount of pledges receivable at December 31, 2007 is $49,220, and of that amount,$26,770 is receivable in less than one year. An allowance for uncollectible pledges is provided based onmanagement's evaluation of the potential uncollectible promises receivable at year end. The amount ofuncollectible pledges at December 31,2007 is $13,970.

Unconditional promises to give at December 31, 2007 are as follows:

United Way Fundraiser Total

Receivable in one to five years $ 176,468 $ 49,220 $ 225,688

Total unconditional promises to give 176,468 49,220 225,688

Less: discount to net present value -

Less: allowance for uncollectible premises

receivable -_ (13.970) (13,970)

Net unconditional promises to give at

December 31,2007 $ 176,468 $ 35,250 $ 211,718

NOTE I-LEASES

On September 1, 2003, the Organization entered into a monthly lease agreement with the City of DeRidderfor $150 per month. The lease is cancelable with ninety (90) days written notice. Lease expense was $1,800in 2007.

11



NOTE J - CASH AND CASH EQUIVALENTS

The Organization maintains the following cash accounts:

Cash on Hand- GamingPetty Cash AccountsOperating AccountSavings AccountWachovia- Money

Market Ac count* Bingo Account

December 31,20074,0001,000

110,314

6,13579,603

201,052 $

December 31, 20064,0001,000

35,577138,449

10,56547,468

237,059

* The Organization is required to maintain a separate bank account for the gaming (Bingo) account

NOTE K - INVESTMENTS

The Organization had the following investments at December 31,2006 and 2007:Market Value

J.P. Morgan Chase BankCertificate of DepositCertificate of DepositCertificate of Deposit

Wachovia SecuritiesCertificate of Deposit

Total Investments

2007

104,49653,131

102,902

66,059

$ 326,588 $

2006

100,00051,128

60,000

211,1281 .— ••-.

NOTE L - CONCENTRATION OF RISK

Financial instruments that potentially subject the Organization to concentrations of credit risk consist ofpromises to give receivable. Amounts receivable from promises to give at December 31, 2007 consists of$176,468 from the United Way of Southwest Louisiana and $49,220 in pledges receivable from afundraiser held in 2006.

The Organization also has exposure for risk as the bank balances of its operating account and certificates ofdeposit at December 31,2007 is $392,769, exceeding the $100,000 of federal deposit insurance.

12



NOTE M - PRIOR PERIOD ADJUSTMENT

For the year ended December 31,2005, Big Brothers/Big Sisters of Southwest Louisiana, Inc. accrued a$4,500 receivable for the Office of Youth Services grant for the month of December 2005 and did notreceive the payment. The reversal of this amount resulted in a decrease of $4,500 to unrestricted net assetsat December 31,2006.

13

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Board of DirectorsBig Brothers/Big Sisters of Southwest Louisiana, Inc.Lake Charles, LA

We have audited the financial statements of Big Brothers/Big Sisters of Southwest Louisiana, Inc. as of andfor the year ended December 31, 2007, and have issued our report thereon dated April 7, 2008. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States.

Internal Control over Financial Reporting

In planning and performing our audit, we considered Big Brothers/Big Sisters of Southwest Louisiana,Inc.'s internal control over financial reporting as a basis for designing our auditing procedures for thepurpose of expressing our opinion on the financial statements, but not for the purpose of expressing anopinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly,we do not express an opinion on the effectiveness of the 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 misstatementson a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,that adversely affects the Organization's ability to initiate, authorize, record, process, or report financialdata reliably in accordance with generally accepted accounting principles, such that there is more than aremote likelihood that a misstatement of the Organization's financial statements that is more thaninconsequential will not be prevented or detected by the Organization's internal control.

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

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

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Compliance

As part of obtaining reasonable assurance about whether Big Brothers/Big Sisters of Southwest Louisiana,Inc.'s financial statements are free of material misstatement, we performed tests of its compliance withcertain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which couldhave a direct and material effect on the determination of financial statement amounts. However, providingan opinion on compliance with those provisions was not an objective of our audit, and accordingly, we donot express such an opinion. The results of our tests disclosed no instances of noncompliance or othermatters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to management of Big Brothers/Big Sisters of SouthwestLouisiana, Lake Charles, Inc. in a separate letter dated April 7, 2008.

This report is intended solely for the information and use of the board of directors, management, and theLegislative Auditor and is not intended to be and should not be used by anyone other than these specifiedparties.


April 7, 2008

15


SCHEDULE OF FINDINGS AND QUESTIONED COSTS


We have audited the financial statements of Big Brothers/Big Sisters of Southwest Louisiana, Inc. for theyear ended December 31, 2007, and have issued our report thereon dated April 7, 2008. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States. Our audit of the financial statements as of December 31, 2007resulted in an unqualified opinion.

Section I - Summary of Auditor's Report

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

Internal Control

Material Weaknesses | | Yes | X | No Other Conditions | 1 Yes | X | No

Compliance

Compliance Material to Financial Statements | | Yes | X | No

Section II - Financial Statement Findings

There were ao current year financial statement audit findings.

16


SCHEDULE OF PRIOR YEAR FINDINGS

Year Ended December 31, 2007

SECTION I - INTERNAL CONTROL AND COMPLIANCEMATERIAL TO THE FINANCIAL STATEMENTS

There were no prior year findings related to internal control of andcompliance material to the financial statements.

SECTION II - MANAGEMENT LETTER

2006-1 Prepare Minutes of Executive Session Meetings

2006-2 Foster Grandparent Program Documentation

2006-3 Account for Unconditional Promises to Give

Resolved

Unresolved

Resolved

This schedule has been prepared by management.17


MANAGEMENT'S CORRECTIVE ACTION PLAN


SECTION I - INTERNAL CONTROL ANDCOMPLIANCE MATERIAL TO THE FINANCIALSTATEMENTS

There were no current year findings related to internal controlof and compliance material to the financial statements.

SECTION H - MANAGEMENT LETTER

ML 2007-1 Foster Grandparent Program DocumentationThe timesheets submitted by FGP workersshould be thoroughly reviewed by Agency staffto ensure all timesheets are properly completedand agree with payment.

The Agency staff are entering FGP workertimesheets in the program software, and willcontinue with a thorough review to eliminate errorson timesheets.

This schedule has been prepared by management.18

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April 7, 2008

To the Management andThe Board of Directors ofBig Brothers Big Sisters of Southwest Louisiana, Inc.

In planning and performing our audit of the financial statements of Big Brothers Big Sisters of Southwest Louisiana,Inc. for the year ended December 31, 2007, we considered the Organization's internal control in order to determineour auditing procedures for the purpose of expressing an opinion on the financial statements and not to provideassurance on internal control.

However, during our audit we became aware of a matter that is an opportunity for strengthening internal controls andoperating efficiency. This letter summarizes our comments and suggestions regarding this matter. This letter does notaffect our report dated April 7, 2008 on the financial statements of Big Brothers Big Sisters of Southwest Louisiana,Inc.

We will review the status of these comments during our next audit engagement. We will be pleased to discuss thesecomments in further detail at your convenience, to perform any additional study of these matters, or to assist you inimplementing the recommendations. Our comments are summarized as follows:

Foster Grandparent Program Documentation

The persons who work for the Foster Grandparent Program at the Agency complete a timesheet for support of thenumber of hours worked each day and the number of miles driven each day. The timesheets are totaled and reviewedby Agency staff before they are processed for payment. The Agency now utilizes the program software to enter thenumber of hours and miles recorded per worker on each timesheet, and allows the software to calculate the totals,which has eliminated some errors noted in the past. There were still some errors noted on the timesheets, mainly dueto errors in totaling the number of hours and/or mileage recorded by Agency staff, thus resulting in incorrect paymentto the workers. We recommend that the Agency staff thoroughly review the timesheets for propriety beforeprocessing for payment.

We wish to thank the Director of Finance for her support and assistance during our audit.

The preceding comments and recommendations are intended solely for the information and use of the Board ofDirectors and management, and are not intended to be and should not be used by anyone other than the specifiedparties.


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