our house inc.app1.lla.state.la.us/publicreports.nsf/01f4796f842...mailing '\dtires^:...

$: Our House Inc.app1.lla.state.la.us/PublicReports.nsf/01F4796F842...Mailing '\dtires^: iri'. TI „ m West Monroe. LA 71294-2-474 We8tMoiux)c, Louisiana /12$
OUR HOUSE, INC.

Financial Statements For the Year Ended December 31, 2012

C A M E R O N , H I N E S & C O M P A N Y , (A Professional Accounting Corporation) West Monroe, Louisiana Certified Public Accountants

OUR HOUSE. INC. FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 3 K 2012

INDEX

Page

Independent Auditors' Report 1 -2

Statement of Financial Position 3

Statement of Activities 4

Statement of Functional Expenses - 5-6

Statement of Cash Fiows 7

Notes to Financial Statements — 8-13

Other Information

Report on Intemal Control Over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Perfonned in Accordance With Government Auditing Standards — 14-15

Independent Auditors' Report on for Each Major Program And on Intemal Control Over Compliance Required By OMB Circular A-133 - 16-17

Schedule of Findings and Questioned Costs 18-! 9

Schedule of Expenditures of Federal Awards -• 20

Notes to Schedule of Expenditures of Federal Awards 21

Summary Schedule of Prior Audit Findings — — 22

CAMERON, HINES & COMPYVNY (A Professional Accoimting Corporation)

Certified l^nblic Accountants Mailing '\dtires^: iri ' . TI „ m

West Monroe. LA 71294-2-474 We8tMoiux)c, Louisiana /12<)1 P ,, 3,3^ 322.5121

INDEPENDENT AUDITORS' REPORT

Board of Trustees of Our House, Inc.

Report on the Financial Statements

We have audited the accompanying financial statements of the Our House, Inc. (a nonprofit organization), which comprise the statement offinancial position as of December 31, 2012, and the related statements of activities, functional expenses and cash flows for the year then ended and the related notes to the fmancial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United Stales of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance witii auditing standards generally accepted in the United States of America 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 perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment ofthe risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's intemal control, Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.

Board of Trustees of Our House, Inc. Page 2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financiai position of Our House, Inc., as of December 31, 2012, and the changes in its net assets and its cash fiows for the year then ended, in accordance with accounling principles generally accepted in the United States of America.

Other Matters

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part ofthe financiai statements. Such information is the responsibility of management and was derived from and relates direcUy to the underiying accounting and other records used to prepare the financiai statements. The infonnation has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly staled, in all materia! respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 31, 2013. on our consideration of Our House Inc's intemal control 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 the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Our House Inc's intemal control over financial reporting and compliance.

C-î*vi^.«.<r>. j ^4 l» i^ % (lcrx'**îÂ^^ ( ^ A r A C j

West Monroe, Louisiana May 31, 2013

OUR HOUSE. INC. STATEMENT OF FINANCIAL POSITION

DECEMBER 31. 2012

ASSETS Current Assets:

Cash and Cash Equivalents Certificates of Deposit Investments Grants Receivable Promises to Give, One Year or Less Prepaid Insurance

Total Current Assets

Promises to Give, Greater than One Year

Property and Equipment; Depreciable Fixed Assets Accumulated Depreciation

Net Depreciable Property and Equipment

Land Net Property and Equipment

TOTAL ASSETS

LIABILITIES AND NET ASSETS

Unrestricted

$ 191,947 371.194 40,027 80,295

-16.461

699,924

-

510,754 (259,131) 251,623

25.395 277,018

S 976.942

Temporarily Restricted

$ ---

48,750 -

48,750

24,706

.

--

. -

$ 73,456

Total

$ 191,947 371,194 40,027 80,295 48,750 16,461

748,674

24,706

510,754 (259,131) 25K623

25,395 277,018

S 1.050,398

Current Liabilities: Accounts Payable 2.265 $ S 2.265

NET ASSETS Unrestricted Net .\ssets Temporarily Restricted

Total Net Assets

974.677

974,677 73.456 73,456

974.677 73,456

1,048,133

TOTAL LIABILITIES AND NET ASSETS 976,942 $ 73,456 $ 1,050,398

The accompanying notes are an integral part of this financial statement.

3

OUR HOUSE. INC. STATEMENT OF ACTtVITIES

FOR THE YEAR ENDED DECEMBER 31. 2012

PUBLIC SUPPORT AND GRANT REVENUE Public Support:

Contributions Grants United Way Funding Net Assets Released from

Restrictions Total Public Support and Grant Revenue

Other Support: Interest Income Other Unrealized Gain on Investments

Total Other Support

TOTAL PUBLIC SUPPORT. GRANT REVENUE AND OTHER SUPPORT

Unrestricted

$ 17,586 537,494

-

47,500

Temporarily Restricted

$ -

50.078

(47,500)

Total

S 17.586 537,494 50,078

-

602,580

2,863 1,455 1,668 5.986

2,578 605,158

2,863 1,455 1,668 5,986

608,566 2.578 611,144

EXPENSES Program Services:

United Way LCLE Victims of Crimes DHHS fransitional Living DHHS Teen Shelter LCTF Safe Place Helper Homeless Prevention HPRP HUD Transitional Living Scott Foundation Emergency Shelter Program Office of Community Service

Total Program Services

Supporting Services: Management and General

TOTAL PROGRAM SERVICES, SUPPORTING SERVICES AND O fHER EXPENSES

INCREASE (DECREASE) IN NET ASSETS

NE r ASSETS AT BEGINNING OF YEAR

NET ASSETS AT END OF YEAR

36,739 17,569

221,275 163,634

7,141 125

1,906 41.659

1,657 96,620

105

-----------

36,739 17,569

221,275 163.634

7,141 125

1.906 41,659

1,657 96.620

105 588,430

20,384

588,430

20,384

608,814

(248)

974,925

£ 974,677 $

2,578

70,878

73,456

608,814

2,330

! .045,803

$ 1,048,133


OUR HOUSE. INC. STATEMEN1' OF FUNCTIONAL EXPENSES


PROGRAM SERVICES

Salaries and Related Expenses

Salaries Payroll Taxes and Benefits

Other Expenses Audit Advertising Contract Labor Dues/Subscriptions Food/Shelter Insurance Office Expenses Printing/Publishing Supplies Telephone Training Utilities Client Services

Educational Medical Travel Rent Depreciation Repairs & Maintenance Auto Expense Other Expenses

Unhed Way

S 25,606 2,009

-34

441 480 193

-1,405

27 64

-644

1.076 229

-166

2,185 --

744 215

1,221

$ 36,739

LCLE Victims of

Crime

$ 15,142 1,188

------

317 -

168 --

918 . -------

(164)

S 17,569

DHHS -Transitional

Living

% 125,160 9,946

4,375 15

5,286 1.050 1,684

16,497 3.843

130 2,267 1,649

819 10,530 4,475

235 182

2,078 24,276

-4.429 1,544

805

$ 221.275

DHHS-Teen Shelter

S 120.943 9,754

4.375 49

4,297 1,171 1.065 7.178 3.483

130 419

-765 708

2,106 23

128 825

55 -

4.830 516 814

S 163.634

PROGRAM SERVICES (Continued)

LCTF Safe Homeless Place Helper Prevention HPRP

6,334 $ - $ 2,293 $ 20,618 516 - 193 1,642

291

HUD Transitional

Living Scott

Foundation

200

385

45 24

125 (580) 13,924

100 40

1,630 892

7.141 $ 125 S 1.906 S 41.659 S 1.657

O

N

383 758

-1.366

768 --

44 ---

489 8 -

N

U

E

D

The accompanying notes are an integral part of this financial statement. 5

Salaries and Related Expenses

Salaries Payroll Taxes and Benefits

Other Expenses Audit Advertising Contract Labor Dues/S u bscri ptions Food/Shelter Insurance Office Expenses Printing/Publishing Supplies Telephone Training Utilities Client Services Educational Medical Travel Rent Depreciation Repairs & Maintenance Auto Expense Other Expenditures

PROGRAM SERVICES (Continued)

S

$

Emergency Shelter

32,492 2,588

--

518 -

6,839 10,952

--

1,077 2.384

-8,367

322 ---

30,803 ---

278

96.620

Office of Communit>'

Service

S -

------------. -----

105 --

S 105

Management and General

$ 3,480 103

--

--

120 (2,629)

754 -5

--

(617) 258

-

15 1,030 (728)

12,634 1,512

(1,743) 6,190

S 20,384

foti

$

S

ll Expenses

352,068 27,939

8,750 298

10,542 2,701

10,286 31,998

9,871 287

4,427 4,791 2,228

22,348 8,647

266 491

6,409 67,875 12,634 11,720

572 11,666

608.814

The accompanying notes are an Integral part of this financial statement. 6

OUR HOUSE. INC. STATEMENT OF CASH FLOWS


Cash Flows from Operating Activities: Increase in Net Assets $ 2,330

Unrealized Gain on Investments (1,668) Adjustments to Reconcile Increase in Net Assets to Net Cash Provided by Operating Activities: Changes in Assets and Liabilities:

Depreciation 12,634 Grants Receivable 13,330 Promises to Give (2,578) Prepaid Insurance (2,645) Accounts Payable (3,296)

Net Cash Provided by Operating Activities 18,107

Cash Flows from Investing Activities: Purchase of Fixed Assets Purchase of Certificate of Deposits Change in Investments

Net Cash Used by Investing Activities

Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents. Beginning of Year

CASH AND CASH EQUlVALEN'l'S. END OF YEAR

(441) (126.520)

(241) (127,202)

(109,095)

301.042

S 191,947


7

OUR HOUSE, INC. NOTES TO THE FINANCIAL STATEMENTS


Note 1 - Nature of Activities and Summary of Significant Accounting Policies

Nature of Activity

Our House, Inc. is a nonprofit organization that is based in Monroe, Louisiana. The Organization provides "hotline'" services for runaway and troubled teens. The Organization's services also include providing shelter and transportation for troubled teens.

Use of Estimates

The preparation offinancial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that afiect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Basis of Accounting

The financial statements of Our House, Inc have been prepared on the accmal basis and, accordingly, reflect all significant receivables and payables.

Basis of Presentation

FASB Accounting Standards Codification (ASC) section 958-205 Not-for-Profit Entities, Presentation of Financial Statements establishes standards for cxtemal financial reporting by not-for-profit organizations and requires that resources be classified for accounting and reporting purposes into three net asset categories according to extemally (donor) imposed restrictions. ASC section 958-605 Not-for-Profit Entities, Revenue Recognition requires that unconditional promises to give (pledges) be recorded as receivables and revenues and requires the organization to distinguish between contributions received for each net asset category in accordance with donor-imposed restrictions.

Unrestricted Net Assets - Net assets that are not subject to donor-imposed stipulations.

Temporarily Restricted Assets - Net assets subject to donor-imposed stipulations that may or will be met either by actions of Our House, Inc. and/or passage of time.

Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by Our House, Inc Generally, the donors of these assets permit Our House, Inc. to use all of. or part of the income earned on the related investments for general or specific purposes. As of December 31, 2012, there were no permanently restricted net assets.

OUR HOUSE. INC. NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2012

Note 1 - Nature of Activities and Summary of Significant Accounting Policies (continued)

Cash and Cash Equivalents

Our House, Inc considers all highly liquid investments with an original maturit)^ of three months or less to be cash equivalents.

Grants Receivable

Grants receivable represent amounts that have been expensed for grant purposes and are to be reimbursed in full by the grantor and have been promised over the next twelve months.

Property and Equipment

Property and equipment are carried at cost or, if donated, at the approximate fair value at the dale of donation. Depreciation of buildings and equipment is provided over the estimated useflil lives of the respective assets using the sft-aight-line method:

Years

Buildings 40 Building Improvements 5-40 Residences 40 Vehicles 3-5 Fumiture, Fixtures and Equipment 3-10

Public Support and Revenue

Annual contributions are recorded as revenue when received and are generally available for unrestricted use unless specifically restricted by the donor.

Grant income is deferred until the revenue is received. Unreimbursed expenses are recorded as income and as grants receivable when requests for reimbursement are submitted to the grants.

Contributions of donated non-cash assets are recorded at their fair value in the period received. Contributions of donated services that create or enhance non-financial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair values.

Promises to Give

Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized.


FOR THE YEAR ENDED DECEMBER 3 1, 2012

Note 1 - Nature of Activities and Summary of Significant Accounting Policies (continued)

All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature ofthe restrictions.

Promises to Give (continued)

When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.

Functional Allocation of Expenses

The cost of providing the various programs and activities has been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Fair Value of Financial Instruments

ASC section 820 Fair Value Measurements and Disclosures and ASC section 825 Financial Instruments require all entities to disclose the fair value of financial instmments for which it is practicable to estimate fair value.

The carrying amount of cash and cash equivalents, accrued interest receivable, and bequests receivable approximates fair value because ofthe short maturit}' of these financial instruments. The carrying value, which is the fair value of investments and funds held in trust by others, is based upon quoted market values. In the limited cases where such values are not available, historical cost is used as an estimate of market value.

Note 2 - Cash and Cash Equivalents

Our House, Inc. maintains its cash balances in five local financial institutions. The bank balances of $192,781 are covered by Federal Deposit Insurance Corporation coverage.

Our House, Inc. also has six certificates of deposit. The certificates of deposit have a fair value of $371,194 and are not considered cash equivalents. All ofthe certificates of deposit are covered by FDIC insurance.

Note 3 - Income Taxes

Our House, Inc. is a nonprofit corporation exempted from federal income taxes under Section 501(c)(3) ofthe Intemal Revenue Code. Accordingly, no provision for income taxes has been made; however, should the Organization engage in activities unrelated to its exempt purpose, taxable income could result. The Organization had no material unrelated business income for the year ended December 31, 2012. The earliest income tax year that is subject to examination is 2009.

10



Note 4 - Lease Expense

Our House, Inc. has several six-month to one-year noncancelable operating leases for several apartments for their residents. Lease expense for the year ended December 31, 2012 was $67,875.

Minimum future rental payments under non-cancelable operating leases as of December 31, 2012 for each of the next five years and in aggregate are as follows:

December 31,2013 £ 19.875

Note 5 - Property and Equipment

A summary of land, buildings, equipment and accumulated depreciation at December 31, 2012 is as follows:

Land $ 25,395 Buildings 355,432 Autos & Trucks 61,909 Furniture & t'quipment 93,413 Accumulated Depreciation ( 259.131)

Net Property and Equipment £,„2.7.7-0^8

Depreciation expense for the year ended December 31, 2012 was $12,634.

Note 6 - Investments

Investments are presented in the financial statements at fair market value based on quoted prices in active markets of the securities on a recurring basis at December 31, 2012.

At December 31,2012. Investments consisted of the following:

Mutual Funds $ 40,027

Investment retum at December 31, 2012 is as follows:

Investment and Dividend Income $ Net Realized and Unrealized Gains 1,668 Net Realized and Unrealized Loss Fees and Other Expenses ^

Total Investment Retum $ 1 668

11



Note 7 - Grants Receivable

Grants receivable consisted ofthe following at December 31, 2012

HUD Transitional Living $ 16,562 LCTF Safe Place Helper 4,491 HPRP 9,138 ESGP Grant 19,271 LCLE Victims of Crimes 4,126 DHHS Teen Shelter 13,523 DHHS Transitional Living 13.184

Total Grants Receivable £ 80.295

Note 8 - Promises to Give

Unconditional promises to give consist ofthe following:

United Way $ 73,750 Less: Unamortized Discount ( 294} Net Unconditional Promises to Give $ 7 3 ^ ^

Amounts Due In: Less Than One Year $ 48,750 Greater Than One Year 24.706

Total $ 73,456

Unconditional promises to give due in more than one year are reflected at the present value of estimated future cash fiows using a discount rate of 0.95%.

Note 9 - Temporarily Restricted Net Assets

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

Periods after December 31, 2012 United Way of Northeast Louisiana £__73^456

Net assets w 'ere released from donor restrictions by time restrictions specified by donors as follows:

Time Restrictions Expired: United Way of Northeast Louisiana $ 47.500

Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized.

12



Note 10 - In-Kind Contributions

In-kind contributions for funds receiving govemment grants consist of time donated by volunteer workers established by state and federal regulatory agencies providing the grant funds; also, donated food, clothing, medical facilities, advertising and other items valued at estimated fair market value. The volunteer hours and donated food and clothing are not recorded in the financial statements.

Note 11 - Commitments and Contingencies

Economic Dependence

The Organization receives a substantial amount of Its support from federal and slate govemment grants and from the United Way. A significant reduction in the level of this support, if this were to occur, may have an effect on the Organization's programs and activities.

Note 12 - Related Parties

Our House, Inc employs Takewell & Hanna, CPAs to assist in bookkeeping and reconciling of accounts. Karen Hanna is a Tmstce on the Board of Trustees of Our House, Inc. For the year ended December 31, 2012, Our House, Inc paid Takewell & Hanna, CPAs $3,478.

Note 13 - Subsequent Events

Subsequent events have been evaluated through May 31, 2013, the date that the financial statements were available to be issued. All subsequent events determined to be relevant and material to the financial statements have been appropriately recorded or disclosed.

13

CAMERON, HINES & COMPANY" (A Professional Accotmtiug Corporation)

Certified Public Accountatits Mailing AdJrc^s: . Q ^ Resencv Place P. O. Box 2474 „ , / / * Kegenc> t lace ^^^^^ ^ ^ . 323-1 717 West Monroe, LA 71294-2474 WestMonroe , Louisiana 71291 Pa, (3,j(j 322-5121

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND 0 T H F : R MATTERS

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

Board of Trustees of Our House, Inc.

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Our House, Inc, which comprise the statement of financial position as of December 31, 2012, and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated May 31,2013.

Internal Control Over Financial Reporting

In planning and performing our audits of the financial statements, we considered Our House, Inc's intemal control over financial reporting to detennine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing our opinion on tiie financial statements, but not for the purpose of expressing an opinion on the effectiveness of Our House, Inc's internal control. Accordingly, wc do not express an opinion on the effectiveness of Our House, Inc's intemal control.

A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of pertbrnting their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement of Our House, Inc's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of intemal control over financial reporting w as for the lintited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

14


Compliance and Other Matters

As part of obtaining reasonable assurance about whether Our House, Inc's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the detennination of financial statement amounts. However, providing an opinion on compliance witli those provisions was not an objective of our audits, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that is required to be reported under the Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Our Flouse, Inc's internal control or on compliance. This report is an integral part of an audit perfonned in accordance with Government Auditing Standards in considering Our House, Inc's intemal control and compliance. Accordingly, the communication is not suitable for any other

West Monroe, Louisiana May 31, 2013

15

CAMERON, HINES & COMPANY" (A Professionai Accoimling Corporation)

Certified Public Accountants Muilma AdJrc-;: : , ^ , . ,, -,,

^'"•f^-2474 <M ^^ 'T ' ^ :* . ^%, . , 0 , Phonea,.)323^17i7 Wtsi Monroe. LA 71294-2474 West Woiiroc, l^ ias ia i ia 71391. - ^ ^_,,gj 3220121

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON LNTERNAL CONTROL OVER COMPLIANCE REQUIRED BY

OMB CIRCULAR A-133

Board of Tmstees of Our House, hic

Report on Compliance for Each Major Federal Program

We have audited Our House, Inc's compliance with the types of compliance requirements described in the OMii Circular A-133 Compliance Supplement that could have a direct and material effect on each of Our House, Inc's major federal programs for the years ended December 31, 2012. Our House, Inc's major federal programs are identified in the Summary of Auditors' Results section ofthe accompanying Schedule of Findings and Questioned Costs.

Management's Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs.

Auditors' Responsibility

Our responsibilit)' is to express an opinion on compliance for each of Our House, Inc's major federal programs based on our audits ofthe t>'pes of compliance requirements referred to above. We conducted our audits of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Government. , and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred lo above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Our House, Inc's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audits provide a reasonable basis for our opinion on compliance for each material federal program. However, our audits do not provide a legal determination on Our House, Inc's compliance.

Opinion on Each Major Federal Program

In our opinion. Our House, inc. complied, in all material respects, with the t>pes of compliance requirements referred to above that could have a direct and material effect on each ofthe major federal programs for the years ended December 31, 2012.

16


Internal Control Over Compliance

Management of Our House, Inc. is responsible for establishing and maintaining efi'ective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audits of compliance, we considered Our House, Inc's intemal control over compliance with the types of requirements that could have a direct and material effect on a major federal program in order to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on intemal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Our House, inc's intemal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in interned control over compliance is a deficiency, or a combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in intemal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with govemance.

Our consideration ofthe intemal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over compliance that might be significant deficiencies or material weaknesses. We did not identify' any deficiencies in intemal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on intemal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.

(l.JX-v>u^un\ / ^ ^ ^ v ^ S CiHi^^aa- ,*^*^^/^^^

West Monroe, Louisiana May31,20l3

17

OUR HOUSE. INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS


To The Board of Tmstees Our House, Inc. Monroe, Louisiana

We have audited the financial statements of Our House, Inc as of and for the year ended December 31, 2012, and have issued our report thereon dated May 31, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards, issued by the Comptroller General ofthe United States. Our audit ofthe financial statements as of December 31, 2012, resulted in an unqualified opinion.

SECTION I - Summary of Auditors' Results

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

Intemal Control Material Weakness yes X no Significant Deficiencies not considered to be

Material Weaknesses yes X no Compliance

Compliance Material to Financial Statements yes __X_ no

B. Federal Awards

Material Weakness Identified ___ yes X no

Significant Deficiencies not considered to be Material Weaknesses yes X no

Type of Opinion on Compliance for Major Programs Unmodified X Modified Disclaimer Adverse

Are their findings required to be reported in accordance with Circular A-133, Section .510 (a)? No

C. Identification of Major Programs:

Name of Federal Program (or cluster) DHHS Runaway and Homeless Youth Program 93.623.

Dollar threshold used to distinguish between Type A and Type B Programs. $300,000

Is the auditee a "low-risk" auditee, as defined by OMB Circular A-133? Yes

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OUR HOUSE. INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED^


Section II - Financial Statement Findings

There were no findings in this section.

Section 111 -Federal Award Findings and Questioned Costs

There were no findings in this section.

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OUR HOUSE, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Federal Grants/Pass-Through Grantor/Program Title

Department of Health and Human Services Direct Programs

Transitional Living for Homeless Youth Program

Runaway and Homeless Youth

Agency or CFDA Pass-Through Number Number Expenditures

93.550

93.623

$ 195,045

156,868*

United States Department of Justice Direct Programs

Louisiana Commission on Law Enforcement Crime Victim Assistance

Department of Housing and Urban Development Direct Programs

Emergency Solutions Grant Program

Supportive Housing Program

Children and Family Services State of Louisiana Department of Children and Family Services

16.575 C11-2-004

14.231 City of Monroe, Louisiana

7,500

96,158

14.235 LA0118B6H051104 41,659

93.590 718924 7,127

TOTAL l-.-5i4jL5I

^Denotes Major Program

See accompanying Notes to Schedule of Expenditures of Federal Awards

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OUR HOUSE. INC. NOTES TO SCHEDULE OF EXPENDITURES

OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2012

L General

The Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Our House, Inc. The reporting entity is defined in Note I to Our House, Inc's financial statements. All federal award programs received directly from federal agencies, as well as federal awards passed through other govemment agencies, is included on the schedule.

2. Basis of Accounting

The Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to Our House, Inc's financial statements. The infonnation in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

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OUR HOUSE. INC. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


Internal Control and Compliance Material to the Financial Statements

This section is not applicable.

Internal Control and Compliance Material to Federal Awards

'fhis section is not applicable.

Management Letter

This section is not applicable

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