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THE WELLSPRING ALLIANCE FOR FAMILIES. INC. MONROE. LOUISIANA

Financial Statements For the Year Ended December 31, 2015

CAMERON, HINES & COMPANY, (A Professional Accounting Corporation) West Monroe, Louisiana Certified Public Accountants

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. FINANCIAL STATEMENTS

FOR THE YEAR ENDED DEqElVff 2015

TA?LEOF(;QNTENT?

Independent Auditors' Report 1-2

FINANCIAL STATEMENTS

Statement of Financial Position 3

Statement of Activities 4

Statement of Functional Expenses 5

Statement of Cash Flows 6

Notes to Financial Statements 7-13

OTHER SUPPLEMENTAL INFORMATION -GRANT INFORMATION

Schedule of Expenditures of Federal Awards 14-15

Notes to Schedule of Expenditures of Fetferal Awards 16

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 17-18

Independent Auditors' Report on Compliance with Requirements That Could Have A Direct and Material Effect On Each Major Program And Internal Control Over Compliance in Accordance with OMB Circular A-133 19-20

Schedule of Findings and Questioned Costs 21-22

Status of Prior Year Findings 23

Schedule of Compensation, Reimbursements, Benefits and Other Payments to Agency Head 24

CAMERON, HINES & COMPANY (A Professional Accounting Corporation) Certified Public Accountants

Phone (318) 323-1717 West Monroe. LA 71294-2474 West Monroe, Louisiana 71891 Fax (318) 322-5121

INDEPENDENT AUDITORS' REPORT

Board of Directors of The Wellspring Alliance for Families, Inc.

Report on the Finandal Statements

We have audited the accompanying financial statements of The Wellspring Alliance for Families, Inc. (a non-profit organization), which comprise the statements of financial position as of December 31, 2015, and the related statements of activities, functional expenses and cash flows for the year then ended and the related notes to the financial statements.

Mam^^ent's Responsibility for the Financial Statanents

Management is responsible for the preparation and fair presentation of these financial staten^nts in accordance with accounting principles generally accepted in the United States 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' Responabllity

Our responsibility is to express an opinion on these financial staten^nts based on our audit. We conduct our audit in accordance with 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 Corrqitroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain evidence about the anwunts and disclosures in the financial staterr^nts. The procedures selected depend on the auditors' judgn»nt, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are tqipropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 of financial statement.

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

Board of Directors of The Wellspring Alliance for Families, Inc. Page 2

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Wellspring Alliance for Families, Inc., as of December 31, 2015, and the changes in its net assets and its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of Anttrica.

Other Matters

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The acconqianying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Reqmrements for Federal Awar^ and the accompanying other financial information consisting of the schedule of compensation, reimbursements, benefits and other payments to agency head is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the fmancial statements. The information has been subjected to the auditing procedures applied in the audit of the finarKial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and c^er records used to prepare the financial statements or to the financial statements themselves, and other additional procures in accordance with auditing standards generally accepted in the United States of AriKrica. In our opinion, the information is fairiy stated, in all material 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 June 20, 2016, on our consideration of The Wellspring Alliance for Families, Inc.'s internal 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 internal control over financial reporting and compliance and the results of that testing, 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 Standards in considering The Wellspring Alliance for Families, Inc.'s internal control over financial reporting and compliance.

West Monroe, Louisiana June 20,2016

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. STATEMENT OF FINANCIAL POSITION

DECEMBER 31.2015

ASSETS

Current Assets Cash Grants and Other Receivables Promises to give, one year or less Prepaid Expenses and Other Assets

Total Current Assets

$ 318,922 583,859 172,506 16,879

1,092,166

Land, Building, and Other Assets Less: Accumulated Depreciation

2,524,457 (1,369,974) 1,154,483

Other Assets Beneficial Interest in Wellspring Foundation

Total Other Assets

TOTAL ASSETS

153,294 153,294

$ 2,399,943

LIABILmES AND NET ASSETS

Current Liabilities Accounts Payable Accrued Expenses Note Payable Accrued Compensated Absences

Total Current Liabilities

$ 61,983 111,847

82,925 256,755

Unrestricted Operations Fixed Assets Beneficial Interest in Wellspring Foundation

Temporarily Restricted

Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

643,501 1,154,483 153,294 191,910

2,143,188

$ 2,399,943

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

3

TffE WEL^ffA^,y.IANCE FQy FAMILIES. INC. yTATEMENT Of ACnVlTlE^

FQR Tl)[g YPAR ENDED PpCElVff E;R 31,2^^5

CHANGES IN UNRESTRICTED NET ASSETS:

Revenues, Gains, and Other Support Contributions In-kind Contributions Counseling Fees Grants Interest and Dividend Inconte Other Incontt Gain on Beneficial Interest in Wellspring Foundation

Net Unrestricted Revenues, Gains, and Other Support Net Assets Released from Restrictions

Total Revenue, Gains, and Other Support

260,287 154,094 263,127

4,485,348 102

51,413 7,766

5,222,137 169,143

5,391,280

Expenses Program Services Counseling and Family Development Don^stic Violence Family Justice Center Outreach, Prevention and Rapid Rehousing Permai^nt and Transitional Housing Big Brothers, Big Sisters

Total Program Services Management and General

Total Expenses

1,048,528 816,128 303,448

1,231,665 1,0%,908 298,465

4,795,142 662,002

5,457,144

Decrease in Unrestricted Net Assets (65,864)

CHANGES IN TEMPORARILY RESTRICTED NET ASSETS:

Contributions Restricted by Donor Net Assets Released firom Donor Restrictions

171,289 (169,143)

Increase in Temporarily Restricted Net Assets 2,146

TOTAL DECREASE IN NET ASSETS

NET ASSETS AT BEGINNING OF YEAR

(63,718)

2,206,906

NET ASSETS AT END OF YEAR 2,143,188

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

4

^ AI.I lllWr^ f AMff rffy CTATCMEOT OP roWCnONAL EXPENSES

TOR TOE YEAR ENDED DECEMBKR 31.2015

PROGRAM SERVICES Counsehng- I^nily Outreach, Prevention Pennaneot Total

Fmnily Domestic Justice and Rapid and Transhioiial Big Brothers, Program ManagememA Development Vidence Center RebotKing (fousing Big Sisters Services General Total

Salaries 623,388 $ 420,689 $ 84,321 S 398,380 $ 415,883 138,746 $ 2,081,607 514,355 $ 2395,962 Retiiefnent Expense 25,822 16,877 3,461 14,083 15,923 6,650 82,816 23,926 106.742 Payroll Taxes 52,627 34,642 6,814 35,183 29,751 10,805 169,822 31,498 201,320 Employee Benefits 37,043 25391 9,797 21,040 16,681 9315 119,467 25329 144,6%

Total Salaries and Related 739,080 497,799 104,393 468,686 478,238 165316 2,453,712 595,008 3,048,720

Computer Maintenance & Networic 6,251 8,900 2,238 5,745 9,783 815 33,732 13,186 46,918 Direct Aid to Individuals - 54,279 - 548,665 316,305 - 919349 - 919349 Dues and Memberships 1,453 1,671 50 60 185 5,377 8,7% 8385 17,381 Rind Raising - - - - - - - - -Groceries and Supplies 8,529 42,107 2,634 4,016 21,067 5,318 83,671 13,758 97.429 Indirect Costs AUocated 38,422 10341 - 8,879 38,146 - 95,988 (95,989) (I) Insurance 13,173 76,219 4,926 12,388 20,378 3376 80,360 19,620 99,980 Interest - - - - - - - 261 261 In-Kind Contributions 32 602 115,209 7,257 20320 9,875 153395 800 154,095 Printing, Maiteting and Public Relations 1,096 2,267 256 46,088 61,149 1,351 112307 10321 122,428 Miscellaneous 493 2,185 396 199 71 . 3,344 994 4,338 Office Supiriies 9,116 12,649 (1353) 9,656 4,667 1,306 35,841 7,229 43,070 Postage and Shipping 1,360 503 - 1,732 570 177 4,342 3,259 7,601 Professional Fees 94,930 5,007 - 6,811 8383 8,000 123,131 22,634 145,765 Rental Expense 45,472 1,376 2,747 43,417 26,765 3,678 123,455 5,002 128,457 Repairs and Maintenance 6,921 37303 17,268 12,018 10,470 - 84,180 15,606 99,786 Special Events - 9318 9318 - 9318 Seminars and Training 7,127 89 1,650 4,711 1,884 239 15,700 2,687 18.387 Telephone 9,765 12304 11327 6,381 10,627 1,655 52,459 6,852 59,311 Travel 44,141 13,006 12,381 23,172 31,731 2,417 126,848 11,335 138,183 Utilities 7,194 27,699 23,188 12,753 10,332 - 81,166 12,672 93,838 Bad Debt Expense - - - - - 77372 77372 - 77372 Depreciation and Aimntization 13,973 59,222 6,138 9,031 25,837 2,375 116376 8,282 124,858

TOTAU EXPENSES $ 1,048328 $ 816,128 $ 303,448 $ 1,231,665 $ 1,096,908 $ 298,465 $ 4,795,142 S 662,002 $ 5,457,144

The accompanying notes aie an integral part of this financial statonent.

THE WELl^PRING ALLIANCE FOR FAMILIES, INg. STATEMENT QF CASH FLOWS

FOR THg Y^AR ENPgP ?P15

CASH FLOWS FROM OPERATING ACnvmES: Decrease in Net Assets Adjustments to reconcile change in net assets to net

cash used by operating activities: Depreciation and Amortization Unrealized Gains on Investments Held at Foundation (Increase) Decrease in Operating Assets:

Grants Receivable and Promises to Give Prepaid Expenses and Other Assets

Increase (Decrease) in Operating Liabilities: Accounts Payable Accrued Expenses and Compensated Absences

Net Cash Provided by Operating Activities

(63,718)

124,858 (3,731)

117,101 (4,721)

(6,249) (11,190) 152,350

CASH FLOWS FROM INVESTING ACTlVmES Income/Realized Gains on Investn^nts at Foundation Purchases of Property and Equipment

Net Cash Used by Investing Activities

(4,035) (70,632) (74,667)

CASH FLOWS FROM FINANCING ACnvmES Net Payment on Note Payable

NET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

77,683

241,239

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 318,922

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

6

THE WELLSPRING ALLIANCE FQR FAMILIES, INC. NOTE? TQ FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31.2015

Note 1 - Summary of Significant Accounting Policies

Organization

The Wellspring Alliance for Families, Inc., formerly known as YWCA of Northeast Lx>uisiana (the Organization), founded in 1931, serves citizens from 15 parishes in Central and Northeast Louisiana with direct services, education and advocacy. The agency mission, to strengthen and value individuals and families through professional s^vices and conununity leadership with compassion and integrity, provides the direction for services and programs which include counseling, telephone crisis intervention, emergency shelter and housing, and n^ntoring (Big Brother Big Sisters).

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 ate reported as increases in unrestricted iKt assets if the restrictions expire in the fiscal year in which the contrilnitions are recognized. All other donor-restricted contributions are reported as increases in temporarily or pemuutently restricted net assets depending on the nature of the restrictions. When a restriction expires, tenqrorarily restricted net assets are reclassified to unrestricted net assets.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Organization considers all unrestricted highly liquid investments with an initial maturity of three nmnths or less to be cash equivalents.

Estimates

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

Receivables

The Organization uses the direct write-off method for bad debts. The results of this method do not materially differ from the allowance method.

Fixed Assets

Fixed assets acquired by The Wellspring Alliance for Families, Inc. are considered to be owned by the Organization. However, federal and state funding sources may maintain an equitable interest in the property purchased with grant monies as well as the right to determine the use of any proceeds from the sale of these assets.

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DEffiMBER 31.

Note I - Summary of Significant Accounting Policies (continued)

Fixed Assets CContinued)

Purchases of fixed assets and major improvements in excess of $1,000 are capitalized at cost. The cost of furniture and equipment acquired prior to 196S is not determinable and, therefore, is not shown. Value for fixed assets donated prior to 1986 is not determinable and, therefore, not shown. As of January 1, 1986, donated assets have been recorded at their fair market value. DepreciiUicm is conqnited on the straight-line method over the asset's estimated useful life. The net fixed asset balance has been recorded as a separate component in unrestricted net assets.

Income Taxes

The Organization is recognized as a nonprofit c(»poration under the laws of the State of Louisiana and under Internal Revenue Code Section 501(c)(3). It is, therefore, exenqit from federal and state corporation income taxes and no provisions are made for those taxes in the financial statements. In addition, the Organization has been determined by the Internal Revenue Service not to be a "private foundation" within the meaning of Section 509 (a) of the Internal Revenue Code. There was no unrelated business income for 2014. The earliest income tax year that is subject to examination is 2011.

Financial Statement Presentation

FASB AcccHinting Standards Codification (ASC) section 958-205 Not-for-Prqfit Entities, Presentation of Financial Statements establishes standards for external 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 externally (donor) inqiosed restrictions as follows: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, the Organization is required to present a statement of cash flows. As permitted by this statement, the OrganiziUion does not use fund accounting.

Budgets for various programs are prepared by the Organization and approved by the grantor of the funds for each respective program as well as the Board of Directors.

Functional Allocation of Expenses

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

Note 2 - Promises to Give

Promises to give consist of the following:

Louisiana Bar Foundation $ 10,842 United Way 136,914 Living Well 24.750 Total Promises to Give $ 172.506

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. NOTES TO HNANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31.201?

Note 3- Temporarily Restricted Net Assets

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

Periods after December 31,2015 United Way of Northeast Louisiana $ 130,697 United Way-Other 5,000

Specific Grant Programs Louisiana Bar Foundation Grant 10,842 Mary Kay 10,716 Selman Field 1,650 Living Well 24,750 Fife Fund 8.255 Total Temporarily Restricted Assets $ 191.910

Net assets were released from donor restrictions by incurring expenses satisfying the purpose or time restrictions specified by donors as follows:

Time Restrictions Expired: United Way of Northeast Louisiana $ 129,696

Purpose Restrictions Fulftlled: Louisiana Bar Foundation Grant 10,000 Baton Rouge Area Foundation 25,000 Fife Fund 1,320 Mary Kay 1,113 Avon 664 Selman Field 1.350

Total Restriction Released $ 169.143

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

Note 4- Beneficial Interest in Wellsoring Foundation

During 1999, the Organization received a substantial unrestricted contribution from a donor. The Board voted to set asitte $100,000 to start an endowment ftmd. Because designations are voluntary and may be reversed by the governing board, these designated assets are not considered restricted and are included in the accompanying statement of financial position as unrestricted net assets. In 2009, the Organization began to fiind the endowment by converting a CD with a starting balance of $42,300 for that purpose. All interest earnings are deposited into the CD. In 2009, the Wellspring also opened a savings account to collect menxirials and other miscellaneous contributions which are going toward the endowment. During 2011, the CD was not renewed but instead moved into the savings account. During 2012, these fiinds that were set aside in the savings account were released and used for other purposes.

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. NOTES TO HNANCIAL STATEMENTS


Note 4- Beneficial Interest in Wellsoring Foundation (continued)

Also during 2012, a portion of the stock received from the Bullington Estate in 2010, was transferred to The Wellspring Alliance for Families Foundation totaling $99,730 to set up the endowment. The Wellspring Alliance for Families Foundation is set up as a 509(a)(3) supporting organization operated exclusively for the benefit of The Wellspring Alliance for Families, Inc. At December 31, 2015, The Wellspring Alliance for Families Found^on investments were valued at $153,294 which consists of the initial investment of $99,730 and the unrealized gains of $40,925 and cumulative dividends of $12,639. Memorials received by The Wellspring Alliance for Families that are not designated to a particular program will be moved to The Wellspring Alliance for Families Foundation.

Note 5 - Land. Buildings and Equipment

Major fund classes of land, building, and equipment consist of the following:

The Wellspring Building and Pailung Lot $ 569,101 The Wellspring Land 2,500 Holly Street Property and Inqirovements 7%,745 Holly Street/Railroad Street Land 204,552 Holly Street Furniture and Equipment 22,664 Hie Wellspring Furniture and ^uipn^t 85,850 Shelter House and Inqirovements 244,825 Shelter House Land 5,000 Transitional Hmising ImprovenKnts 5,337 Rape Crisis Equipment - WOCA 6,302 Family Violence Furniture and Equipment 46,124 Family Justice Center 55,072 Rape Crisis Equipment 2,612 Child Abuse-VOCA 6,401 Crisis Lines 4,612 Shelter Annex Building and Inqirovements 183,083 Shelter Aiuiex Land 12,000 Outreach and Prevention Equipment 23,659 Big Brothers, Big Sisters Equipment 11,320 Rural Housing Fumiture and Fixtures 186,657 Counseling Fumiture and Equipment 50.041

Total 2,524,457 Less: Accumulated Depreciation ( 1,369,974)

Net Land, Buildings, and Equipment $ 1.154.483

Depreciation expense for the year ended December 31,2015 totaled $124,858.

Note 6 - Compensated Absences

The Organization's personnel policies permit cany forward of sick time. However, employees are not paid for any unused sick time upon termination. Because the payment for accumulated sick time is contingent upon future employee illness, a liability is not record^. Accrued compensated absences in the antKiunt of $82,925 are recorded for vested vacation time.

10

THE Wg^^gPRINQ ALLUNCE FOR FAMILIES. INC. NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31,2015

Note?- In-Kind Contributions

In-kind contributions for funds receiving government grants consist of time donated by volunteer woricers at a rate of ten to twenty-five dollars per hour established by state and federal regulatory agencies providing the grant funds and donat^ food, clothing, medical facilities, office space, advertising and other items valued at estimated fair market value. Hie volunteer hours and donated food and clothing are not recorded in the financial statements.

The following in-kind contributions are recorded in the financial statements:

Office Space $ 135,084 Television, Radio, Billboards and Newspaper Ads 19.010

Total Recorded In-Kind Contributions $ 154.094

Notes- Defined Contribution Plan

During 2007, the Organization received notice from the Young Wonnn's Christian Association Fund that, as of January 1, 2008, non-YWCA organizations would no longer be eligible to participate in the Fund. As a result, the Organization established a 401(k) and contributory plan to be effective January 1, 2008. Employees with more than 90 days of service may contribute to the plan on a pre-tax basis. Employer notching contributions are allowed by the plan; however, none were made for 2015. The Organization anticipates a 6% profit sharing contribution during 2015 as was paid in 2015. Employees with at least 24 months of service in which they earned 2,000 hours are eligible for the profit sharing contribution. RetireriKnt expense was $106,742 for 2015.

Note 9- Commitments and Contingencies

Economic Dependence

The Organization receives a substantial amount of its support from federal and state govemiTKnt grants and from the United Way. A significant reduction in die level of this support, if this were to occur, may have an effect on the Or^ization's programs and activities.

Line of Credit

The Organization has entered into two line of credit agreenwnts with local banks. The two lines of credit have a combined balance available of $240,000 and can be used for operating expense shortfalls.

Interest paid during 2015 was $261.

Note 10 - Concentrations of Credit Risk

The Organization maintains its cash balances in one financial institution. At l>ecember 31, 2015, the Organization had bank statement balances totaling $354,454 of which $250,000 was insured by the Federal Deposit Insurance Corporation.

11

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. NOTES TO FINANCIAL STATEMENTS


Note 11 - Receivables

The Organization receives a substantial amount of its support from governmental entities and United Way. At December 31,2015, account receivables consisted of:

State and Federal Government Funds $ 569.553

Promises to Give: Living Well $ 24,750 Louisiana Bar Association 10,842 United Way of Northeast Louisiana 136.914

Total Promises to Give

Miscellaneous Receivables $ 14.306

Note 12 - Bad Debt Expense

During 2012-2013, the Wellspring was awarded a grant from Big Brothers Big Sisters of America (BBBSA) through the Office of Juvenile Justice Delinquency Prevention. The Office of the Inspector General froze the BBBSA funds pending an audit and investigation into the national organization. During 2015, the Wellspring learned that the issues with BBBSA had been resolved and funds would be released for new projects only and not as reimbursement for deliverables on past jnojects. With that, $77,573 that had previously b^n recorded as grant income and held as a receivable was written off as a bad debt.

Note 13 • Advertising

Advertising costs are expensed as incurred. During 2015, the Organization expensed $122,428 as mariceting and printing expenses and $19,011 as in-kind advertising donations.

Note 14 - Subsequent Events

Subsequent events have been evaluated through June 20, 2016, the date that the fmancial 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.

Note 15 - Leases

The Organization signed a lease in November of 2005 for counseling space in Monroe, LA under an operating lease. This operating lease had a term of seven years and ended in November 2012. The Organization had the option to cancel the lease at the end of year three if a reduction in income necessitates. At the end of this lease, a new 18 month lease was signed through May 2014, which was not renewed upon expiration. A new lease at a different location was signed beginning in May 2014 running throu^ May 2017. The Organization has leased several apartments for a year each, ranging from $350 to $900 per month, for various dates concluding in 2015 and 2016 along with several other apartments on a month to month basis. The Organization also leases several satellite offices on a month to month basis, and rents various office equipment items under operating leases. Rentals aggregating $128,457 were charged to expense during 2015.

12

THE WELI^PIWSG ALLIANCE FQR FAMILIES. INQ. NOTES TQ FINANCUL STATEMENTS


Note 15 - Leases (continued)

Minimum future rental payments under non-cancelable operating leases as of December 31,2015 are as follows:

December 31. Amount 2016 $ 143,890 2017 76,455 2018 56,400 2019 18.800

Total

13

TlilE wp|.l^p|MWg ALUANff PpH |NC, SCHEDULE EXPENDITURES OF FEDERAL AWARDS

FDR THE YEAR ENDED DECEMBER 31.201S

Federal Program or CFDA Fiscal Award Federal

Number Period Amount Expenditures U,3, Pwwwwm pf Hewing WMl Virtw ppYPlPpment

Raise the Roof 14.235 2015 163,083 $ 162,070 Homeless Management Information System 14.235 2014-2015 74,246 29,265 Homeless Management Information System 14.235 2015-2016 74,246 44,755 Reach Out: The Rural Initiative 14.235 2014-2015 265,653 103,600 Reach Out: The Rural Initiative 14.235 2015-2016 265,653 166,039 Wellspring Permanent Housing Project 14.235 2014-2015 51,357 44,290 Wellspring Permanent Housing Project 14.235 2015-2016 51,357 9,777 Pnmanent Siqiportive Housing II 14.235 2014-2015 105,090 98,081 Permanent Supportive Housing n 14.235 2015-2016 105,090 5,674 Help and Home 14.235 2014-2015 87,608 73,099 Help and Home 14.235 2015-2016 87,608 12,242 VOA SuiqxKtive Housing 14.235 2014-2015 107,139 28,253 VOA Supportive Housing 14.235 2015-2016 107,139 76,510

853,655

Through City of Monroe, LA HUD Emergency Shelter Grants Program 14.231 2014-2016 225,775 74,043 HUD Emergency Shelter Grants Program 14.231 2013-2015 80,000 44,969

119,012

u.S.PPiwtmcBtgffwtiw

Violence Against Women Transitional Housing 16.736 2014-2018 352,416 90,253 Vidence Against Women Rural DV . Dating & SA & Stalking 16.589 2008-2015 2,300,000 357,417

Through Louisiana Conimission on Law Enforcement Sexual Assault Services Formula Grant 2423 16.017 2015 23,352 23,351

Victims Assistance Program • 2273 16.575 2015 335,805 335,805 Domestic Violence Program 222S 16.575 2015 50,000 50,000

385,805

Violence Against Women Act - Domestic Violence Services 2514 16.588 2015 17,775 17,541 Violence Against Women Act - Sexual Assault 2513 16.588 2015 14,684 14,616

32,157

Through Ouachita Parish Police Jury Arrest Grant 16.590 2014-2017 299,999 117,737

Supervised Visitation (OPPJ Fiscal A^nt) 16.527 2009-2015 750,000 137,483

14

THi; TOR FAMILIES. KNC, .SQffiWf|.F, FrXfRNPrnit'^ Qf fBPEM^ AWARPS

FOR THE YEAR ENDED DECEMBER 31.2015 fCONTINUEDt

U.S. Department of Homeland Security

Emergency Food and Shelter Program

U,S. Pfflntmffrt of Aai9ylniTc

Through Louisiana Department of Education Child and Adult Care Food Program Child and Adult Care Food Program

Federal CFDA Rscal

Number Period

97.024 20l4-a)l5

10358 2014-2015 10.558 2015-2016

Program or Award

Amount

sjooa

35360 27.700

Rsderal Expenditures

5,000

4,617 2386 7,003

Through Louisiana Foundation Against Sexual Assault Rape Crisis Program Rape Crisis Program

Rape Crisis Program

Through Office of Behavioral Health Block Gram for Community Health Services Block Gram for Ccmimunity Health Services Block Gram for Community Health Services Block Gram for Community Health Services

Through Louisiana Children's Trust Rmd

93.991 93.991

93.136

93.958 93.958 93.958 93.958

2014-2015 2015-2016

2015

2014-2015 2015-2016 2014-2015 2015-MI6

93390 2014-2015

21,010 23345

iffn

74,971 74,971 18,040 18.040

9310

9,730 11,765 21,495

8,077

30,889 35308 6315 8389

81301

8,874

Family Violence Prevention & Services Family Violence Prevention & Services

Temporary Assistance to Needy Families Temporary Assistance to Needy Runilies

Through Tulane University Child Care and Development Block Grant Child Care and Development Block Grant

U.S. Deoaitment of Veterans Affairs

Supportive Services f<x Veteran Families Supportive Services for Veteran Families

VA Per Diem

Total Federal Expenditures

* Denotes rnqor programs.

See accompanying notes to schedule of expenditures of federal awards.

15

93.671 93.671

93358 93358

93375 93375

2014-2015 2015-2016

2014-2015 2015-2016

2014-M15 2015-%16

64.033 2014-2015 64.033 2015-2016

394,933 395355

268,750 264388

630,733 473,050

731,793 731,793

64024 MI2-20I6 1,056,000

304,070 91,939

396,009

142307 160319 302,626

214309 153374 367,883

713385 94,153

807.438

21367

$ 4.143,943

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. NOTES TO SCHEDULE OF EXPENDITURES

OF FEDERAL AWAW)$ FOR THE YEAR ENDED DECEMBER 31.2015

1. Genera]

The Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of The Wellspring Alliance for Families, Inc. All federal award programs received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the schedule.

2. Basis of Accounting

The Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the fmancial statements.

16


Phone (318) 323-1717 West Monroe. LA 71294-2474 West Monroe, Louisiana 71291 Fax (318) 322-5121

INDEPENDENT AUDITORS* REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN

AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


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 Conqitroller General of the United States, the financial statements of The Wellspring Alliance for Families, Inc. (a nonprofit organization) which comprise the statements of financial position as of December 31,2015, 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 June 20,2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered The Wellspring Alliance for Families, Inc.'s internal control over financial reporting (internal control) to determine 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 an opinion on the effectiveness of The Wellspring Alliance for Families, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of TTie Wellspring Alliance for Families, Inc.'s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing 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 internal control such that there is a reasonable possibility that a material misstatement of The Wellspring Alliance for Families, 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 inqwrtant enough to merit attention by those charged with governance.

17

Board of Directors of The Wellspring Alliance for Families, Inc. Page 2

Our consideration of internal control over financial reporting was for the limited 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, materi^ weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether The Wellspring Alliance for Families, Inc.'s financial statements are free from material misstatenKnt, 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that is required to be reported under the Government Auditing Standards.

Purpose this Report

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

West Monroe, Louisiana June 20,2016

18


Mailing 104 Renenrv Place P.O. Box 2474 _ . -Tiont Phone (318) 323-1717 West Monroe, LA71294-2474 WcstMonroc, Louisiana 71291 Pa* oig) 322-5121

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MA.TOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY

THE UNIFORM GUTOANCE


Report on Compliance for Each M^or Federal Program

We have audited The Wellspring Alliance for Families, Inc.'s compliance with the types of compliance requirements described in the 0MB Compliance Supplement that could have a direct and material effect on each of The Wellspring Alliance for Families, Inc.'s major federal programs for the year ended December 31, 2015. The Wellspring Alliance for Families Inc.'s major federal programs are identified in the Summary of Auditors' Results section of the accompanying Schedule of Findings and Questioned Costs.

Management's Responsibility

Management is responsible for conqiliance with federal statutes, regulations, and the terms and conditions of its federal award applicable to its federal programs.

Auditors' Responsibility

Our responsibility is to express an opinion on conqiliance for each of The Wellspring Alliance for Families Inc.'s major federal programs based on our audit of the types of conqiliance requirements referred to above. We conducted our audits of coii^liance 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 Con^itroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major fe^ral program occurr^. An audit includes examining, on a test basis, evidence about The Wellspring Alliance for Families Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on The Wellspring Alliance for Families Inc.'s compliance.

Opinion on Each Meqor Federal Program

In our opinion. The Wellspring Alliance for Families, Inc. complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of the major federal programs for the year ended December 31,2015.

19

Board of Directors of The Wellspring Alliance for Families, Inc. Page2

Repent on Internal Control Over Compliance

Management of TTie Wellspring Alliance for Families, Inc. is responsible for establishing and maintaining effective internal control over con^liance with the types of compliance requirements referred to above. In planning and performing our audit of conpliance, we consider^ The Wellspring Alliance for Families, Inc.'s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on conpliance for each major fed^ program and to test and report on inter^ control over conpliance in accordance with the Uniform Guidance, 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 The Wellspring Alliance for Families, Inc.'s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over conpliance 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 conpliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over conpliance, such that there is a reasonable possibility that material nonconpliance with a type of conpliance 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 internal control over conpliance with a type of conpliance requirement of a federal program that is less severe than a material weakness in internal control over conpliance, yet important enough to merit attention by those charged with governance.

Our consideration of the internal control over conpliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over conpliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal 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 internal control over conpliance is solely to describe the scope of our testing of internal control over conpliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

West Moruoe, Louisiana June 20,2016

20

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SUMMARY OF AUDIT RESULTS

1. The auditors' report expressed an unmodified (pinion on the financial statements of The Wellspring Alliance for Families, Inc (Wellspring).

2. No significant deficiencies were disclosed during the audit of the fmancial statements to be reported in the Rqxnt on Internal Control Over Financial Reporting and (xi Conrq>liance Based on an Audit of Financial Statements Performed In Accordance With Government Auditing Standards and R^mrt On Compliance With Requirements Af^licable To Each Major Program And Internal Control Over Conqiliance hi Accorchuice With the Uniform Guidance.

3. No instances of noncon^liance material to the financial statements of The Wellspring Alliance for Families, Inc., which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit.

4. No significant deficiencies were disclosed during the audit of the major federal award {xograms in the Rqxnt On Conqiliance With Requirements That Ctxild Have A Direct and Material Effect (XI Each Major Program AIKI On Internal Control Over Conqiliance In Accordance With Title 2 U. S. Code of Federal Regulaticxis Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Uniform Guidelines Requirements for Federal Awards.

S. The audit(xs' report on con^liaroe for the maj(x- federal award programs for The Wellspring Alliance for Families, Inc., expressed an unmcxlified opini(xi on all maj(x- federal programs.

6. There were no audit findings relative to the major federal award programs for Wellspring.

7. The programs tested as a major program included the Department of Housing and Urban Development under CFDA No. 14.235 and Department of Veteran Affairs under CFDA 64.033.

8. Hie threshold for distinguishing between Types A and B programs was $750,000.

9. Wellspring does qualify U) be a low-risk auditee.

21

TPB WEU^RINQ ALMANCE FOl^ fNC. S<;MEDULE QF ffTOinsqs ANP QyiynQNEP COSTS

FQRT»i;mR^NPEPPE<;^ER?1.2015

(Continued)

FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT

U.S. Department of Honsing and Urhan Devdoiwieiit CFDANo. 14.235; Program Period -4/1/14-12/31/16.

There were no findings that relate to the major federal program.

ys. PC Afffdrs CFDA No. 64.033; Program Period - 9/30/12-9/30/16.

There were no findings that relate to the major federal program

FINDINGS - FINANCIAL STATEMENT AUDIT

None

22

THE WELI^PRING ALLIANCE FOR FAMILIES, INC. STATTJS OF PRIQR YEAR FINDINGS

FQR jm YMR BNPEP PECigMPER ms

There were no findings in the prior year audit report dated June 24,2015.

23

THE WELLSPRING ALLIANCE FOR FAMILIES. INC. SCHEDULE OF COMPENSATION. REIMBURSEMENTS. BENEFITS

AND QTHER PAYMENTS TO MAP DE<;:EMBER31.2Q^$

Agency Head -Caroline Cascio

Salary and Expense Account $ 84,717

Per Diem Allowance 359

Benefits - Insurance 79

Benefits - Retirement 5,083

Vehicle provided by government

Travel

Registration Fees 1,500

Conference Travel 2,067

Continuing professional education fees 351

$ 94,156

24

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