Success counseling Services - North by knockjob54

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                    i      vi         t
     Success c ounselng Ser ces - N or h
                   bl          nsie
                 dl a Success I t
                     er t       si
                B ossi C i y,Loui ana

                 Fi    al at
                   nanci St em ents
                     June 30,199B




                         ovi ons of st e l ,thi
                U nder pr si          at aw     s
                r    t s         i
                 epor i a publc docum ent A   .

                        he epor has been subm i-
                copy oft r      t              t
                        he      t        evi ed
                ted to t audied, or r eu~ ,
                  ~Jy       her     oprat
                ertt and ot appr i e publc     i
                  f al
                  i           epor s      l e or
                of ci s. The r t i avaiabl f
                        nspecti on at t he Baton
                       f ce    h
                      of i oft e Legi atve Audi
                                     sl i       -
                 or          e
                f and+ w her appr i e, at t
                                   oprat      he
                  fce    he
                of i of t pari cl k of cour .
                                 sh er         t
                          e is ! ~ ~~ _
                              '
                   ease Dat ~i~O ; ' ~,, _
                 Rel     .
                                      ,,  .
                                                  _
                            i     vi        th b/         nsie
           S uccess C ounselng Ser ces -N or d/ a Success I t
                                er t        si
                           Bossi C iy,Loui ana
                                        e       ent
                                     Tabl ofCont s




Page

1      St em ent ofFi
        at      s   nanci Posii
                         al    ton                               Exhi tA
                                                                    bi
         June 30,1998 and 1997

2      St em ent ofActvii
        at      s     i tes                                         bi
                                                                 Exhi tB
          or he    s
         f t Year Ended June 30,1998 and 1997

3      St em ent ofFunctonalExpenses
        at     s        i                                           bi
                                                                 Exhi tC
         or he  s
         f t Year Ended June 30,1998 and 1997

4      St em ent ofCash Fl
        at      s        ows                                        bi
                                                                 Exhi tD
          or he    s
         f t Y ear Ended June 30,1998 and 1997

5         es o he nanci St em ent
       Not t t Fi       al at   s
         June 30,1998 and 1997

9                   t '      t
       ndependentAudiors Repor

10          t          i           nt nal   r
       R epor on Com plance and on I er C ontoloverFinancial
             tng                t
       R epori based on an A udi ofFi    al at     s    f m
                                     nanci St em ent Peror ed
       n     dance w ih Gover entAudii St
       I Accor       t       nm             ds
                                    tng andar

             e    ndi             i       s
       Schedul ofFi ngs and Q uestoned Cost


             e     i      ndi
       Schedul ofProrYearFi ngs


                   '    r i      i   an
       M anagem ents Corectve Acton Pl
                                i     vi       t bl             nsie
                Success C ounselng Ser ces -Nor h dl a Success I t
                                    er t       si
                               Bossi C iy,Loui ana
                                                                              bi
                                                                           Exhi tA
                             at      s
                            St em ent ofFi    al
                                          nanci Posiiton
                               June 30.1998 and 1997



                                          Assets
                                                           1998             1997
    r       s
C urentA sset
  C ash                                                     20,
                                                              905              841
                                                                             21,
         s    vabl
 A ccount Recei e                                             586
                                                            32,                560
                                                                             16,
  epai I
 Pr   d nsurance                                             4,
                                                              966              690
                                                                              3,
     al   r
  Tot C ur entA ssets                                         457
                                                            58.              42.091

  opery,Pl and Equi ent-Net
 Pr  t   ant      pm                                           621
                                                             10,

       t
 D eposis                                                     500
                                                             1.
       al   s
    Tot Asset                                                 578
                                                            70.                091
                                                                             42.

                                  abii es
                                     t
                                 Li l i and NetA ssets
    r   abii es
           t
C urentLi l i
         s
 A ccount Payabl e                                    $       4,
                                                               87O     $       545
                                                                              1,
      t           i i        r    ton
 C apialLease O blgaton - CurentPori                           781
     es      e     r
 Not Payabl - CurentPoriton                                    789
                                                             17,
 A ccr        ol
      ued Payr land Taxes                                      405
                                                             38.               443
                                                                             34.
      al   r
   Tot C urentLi l i
               abii es
                  t                                            845
                                                             61.               988
                                                                             35.

     Ter   abiii
Long- m Li ltes
     t            i i            m ton
 C apialLease O blgaton - Long Ter Pori                        750
                                                              1,
    es       e         m t on
 N ot Payabl - LongTer Pori                                    807
                                                              4.
       al abii es
    Tot Li l it                                              68.
                                                               402             988
                                                                             35.

N etA ssets
     est i ed
  U nr rct                                                     176
                                                              2,              6,103
          arl     rct
  Tem por iy Resti ed
     m       l     rct
  Per anenty Rest i ed
       al
    Tot NetA sset s                                           2.176           6.103
         al abii es
               t
     Tot Li l i and NetAssets                                70,
                                                               578     $       091
                                                                             42,




                 es o nanci St em ent ar an i egr par oft
           The not t Fi   al at      s e                   at
                                            nt al t hese st em ents
                                           1
                                i     vi       t    b/         nsie
                Success C ounselng Ser ces -Nor h d/ a Success I t
                                    er t      si
                               B ossi C iy,Loui ana
                                                                              bi
                                                                           Exhi tC
                              at    s        i
                            St em ent ofFunctonalExpenses
                        or he     s
                       f t Year Ended June 30.1998 and 1997



                                                                     al
                                                                  Tot s

                                                      al
                                                  M ent
                                  ni r i
                              Adm i st aton       Healh
                                                      t                   1997

       i        of onal
Accountng and Pr essi
   vi
 Ser ces                  $                   $    23,
                                                     400 $      400
                                                              23,           500
                                                                           6,
Bad Debt                                              188       188
  l
Bui ng Rent
   di                                 058
                                     1,              846
                                                    6.          904
                                                               7,          5,
                                                                            200
C onsuli
      tng                                                                   330
    eci i
Depr aton                               42           274        316
   pm
Equi entRent                                           91         91        267
I ance
nsur                                 2,
                                      190            162
                                                   14,          352
                                                              16,         10,
                                                                            412
I er
nt est                                               912        912
   ce
O fi Supples
          i                                         4,
                                                     250        250
                                                               4,          3.
                                                                            006
     tes
Penali                                              1,109      1,109
Postage                                              747        747          250
     r        nt
Repais and M ai enance                  12             80         92
   ares,    r      vi
Sal i C ont actSer ces
        ol
 and Payr lTaxes                      858
                                    42,           278 274     321,
                                                                 132        052
                                                                           8,
Travel                               2,
                                      836          18 341      21,
                                                                 177        126
   i
Utl i and Tel
  ites       ephone                   652           4 221       4,
                                                                 873       1,
                                                                            294
Other                                               5 769       5.
                                                                 769        227
                                                                           2,

Total                     $           648 $
                                    49,            358,
                                                      664 $      312 $
                                                              408,           664
                                                                          227,




                    es o nanci St em ent ar an i egr par oft
              The not t Fi   al at      s e                   at    s
                                               nt al t hese st em ent
                                              3
                               i    vi        t bl            nsie
               Success C ounselng Ser ces -Nor h dl a Success I t
                                   er t      si
                              Bossi C iy,Loui ana
                                                                             bi 3
                                                                          Exhi t[
                                at     s         ow
                               St em ent ofCash Fl s
                         or he   s
                        f t Year Ended June 30.1998 and 1997

                                 ease ( ease)i Cash
                               ncr    Decr   n
                                                        1998             1997
       ow r      atng   i tes
C ash Fl fom O per i Actvii
 ncr     Decr  n        s
 I ease ( ease)i NetAsset                         ($       927
                                                          3,         $      049
                                                                          13,

    ust   so        l ncr e
                    e
 Adj ment t Reconci I eas
  Decr    n         so
 ( ease)i NetAsset t Cash
   ovi
 Pr ded (            atng i tes
         Used)by Oper i Actvii
  Depr aton
       eci i                                                   316
           n       s     abii es
                            t
  C hanges i A sset and Li l i
    I ease)Decr
   (ncr            n
              ease i
    R ecei es
          vabl                                             026
                                                         16,         (      370 )
                                                                           7,
    Deposist                                               500
                                                          1,
    Pr epai I
           d nsurance                                     1,
                                                           276       (     3,31 )
                                                                            1
   ncr    Decr ) n
   I ease ( ease i
            s
    A ccount Payabl e                                      325
                                                          3,         (      o08 )
                                                                          14,
    A ccrued Payr land Taxes
                 ol                                        962
                                                          3.                616
                                                                          27.
      Cash Pr ded (
            ovi              atons
                  Used)by Oper i                           126
                                                         15,             16,156

       ow r     nvestng A ctvii
C ash Fl s f om I    i      i tes
   Pur
     chase ofPr     t
               opery and Equi ent
                              pm                           937
                                                         10.
                   nvestng A ctvii
     C ash Used by I    i      i tes                       937
                                                         10.

        ow r
C ash Fl s f om Fi    ng    i tes
                  nanci Actvii
    Pr         om ssuance ofLease
      oceeds Fr I
    O blgaton
        i i                                                800
                                                          2,
    Proceeds Fr I
               om ssuance ofDebt                           043
                                                         25,
            s       Ter
    Paym ent ofLong- m Debt                                716
                                                          2,
              ovi
       C ash Pr ded by Fi    ng    i tes
                         nanci A ctvii                   25.127

   ncr     Decr
NetI ease ( ease)i Cash
                 n                                             936          156
                                                                          16,

C ash,Begi ng ofYear
          nni                                              841
                                                         21.                685
                                                                           5.
C ash,End ofYear                                   $       905
                                                         20,                841
                                                                          21,

                em   al scl e         ow nf m i
            Suppl ent Di osur ofCash Fl I or aton

       d or nt est
Cash Pai f I er                                    $           912

                  es o nanci St em ent ar an i egr par oft
            The not t Fi   al at     s e                    at
                                             nt al t hese st em ents
                                           4
                                  i     vi       t    bl          nsie
                  Success C ounselng Ser ces -Nor h dl a Success I t
                                      er t       si
                                 B ossi C iy,Loui ana

                                   es o he nanci St em ent
                                 Not t t Fi      al at   s
                                        June 30.1998

   e
Not 1 O r   zaton    gni
                       i             i      i es
         gani i and Si f cantA ccount ng Polci

B ackground
   c          ing vi       t b/
Suc ess Counsel Ser ces -Norh d/ a Success l t (Succ ss )i a notf - ofthuman ser c s
                                           nsi " e " s
                                              e                 -orpr i        vie
  gani i        alzi n      vi       aly
or zaton speci i ng i ser ng m ent l and em otonal chal
                                                  i l y    enged young per
                                                           l                     n   tngs
                                                                           sons i seti
         o he i  ent         gani i
com m on t t cl s. The or zaton began oper i     atons i Jul 1995, and ser es cl s i t
                                                        n  y             v     ient n he
    si      i                  er
Loui ana parshes ofC addo,Bossi ,Nat t
                                    chioches,D eSot C l bor Bi l Sabi Red Ri and
                                                   o, ai ne, envil  e,   ne,       ver
      er
W ebst .

      gani i ecei
The or zaton r ves f        or v ces ovi                    r s t he at         si
                       ees f ser i pr ded undervendorcontact w ih t St e of Loui ana
     t            t           t s.     i            oxi el        he gani i s ot
Deparm ent of Healh and Hospial Durng 1998, appr m at y 66% of t or zaton' t al
r           e ecei    or     al
 evenues w er r ved f m ent healh ser i pr ded t M edi d el bl clent A ppr m at y
                                   t   v ces ovi     o         gi
                                                          cai i e i s.       oxi el
       ot evenues w er r ved f m ent healh ser ces pr ded undera soci ser i contact
32% oft alr           e ecei     or    al   t    vi    ovi           al v ces    r
  t he fe i         al    t
w ih t O f c of M ent Healh. The O r zaton r i upon t f ng fom t
                                     gani i el es       he undi r           ces or t
                                                                    hese sour f is
    atons.
oper i

        y   gni
              i            i     i es
Sum m ar ofSi fcantA ccountng Polci
           i     i es  he         or o
The accountng polci oft agency conf m t gener l accept accountng prnci es as applcabl
                                             aly      ed       i    i pl         i e
 o unt y       t      f e gani i            e gni
t vol ar heath and w elar or zatons. The m or si fcantaccountng polci oft agency ar
                                                 i           i     i es  he         e
     i      ow
descrbed bel :

       s
   B asi of A ccountno
                    i    The agency pr    es t i   al at
                                      epar is fnanci st em ent on t
                                                              s    he accr       s
                                                                          ual basi of
          i       di y evenues ar r
   accountng. Accor ngl r              zed
                                e ecogni w hen ear                   e ecogni w hen
                                                  ned and expenses ar r     zed
   ncured.
   i r

     n                             e    ged t each pr am based upon diect expendiur
                         Expenses ar char   o       ogr              r          t es
   ncur ed
   i   r

          s     vabl
   A ccount Recei e: Success ext  ends cr t t contactng st e agenci i t cour of
                                         edi o       r i     at    es n he se
      f m ng vi    n      r       t     si                ed
   peror i ser ces i C entaland Norh Loui ana on an unsecur basis.

             s:        he ovi ons of St em ent of Fi
   Net A sset U nder t pr si           at           nanci A ccountng St
                                                        al        i         ds
                                                                       andar No. 117,
    Fi     al at      s or   - - of
   " nanci St em ent f N ot For Pr itO r
                                       gani i
                                          zatons" netasset and r
                                                  ,        s                    rbutons,
                                                                evenues and cont i i
                ns,
   expenses,gai and l          e assi
                                    i             he   st                      -m
                        osses ar cl fed based on t exi ence or absence ofdonor i posed
    est i i         di y,         s
   r rctons. A ccor ngl net asset of t O r
                                      he       zaton             her n e assi
                                           gani i and changes t ei ar cl fed and i
   r    t      olow
    epored as f l s:

           esti t          s         et   c e         j to      -mpos s i atons.
         Unr rc ed net asset - Netass s whih ar notsub ec t donori   ed tpul i
                t est i ed   he       s epor       ncr    n   est i ed  s f he
         Suppor r rct by t donor i r ted as an i ease i unr rct net asset i t
          est i i      r n he epor ng   i n  ch he     t s ecogni
         r rcton expies i t r ti perod i w hi t suppor i r      zed.
           arl est i ed       s          s
    Tem por iy r rct net asset - Net asset whi ar sub ect t donori
                                             ch e    j    o     -mposed
      i atons      ch           l       t      i
    stpul i w hi m ay orw ilbe m eteiher by actons oft O r zaton and/ t passage
                                                      he gani i      or he
        i     l      - est i ed      t s epor
    of tm e.A l donor r rct suppor i r ted as an i ease i t por i or per anenty
                                                    ncr     n em   y
                                                                 arl       m   l
    r rct net asset dependi on t nat e of t r rcton. W hen a r rcton expies
     esti ed           s,         ng   he   ur   he est i i        est i i   r
     ie.         i at i es rc i                    es rc i s       i
                                              pose r titon i accompl
    (. ,when a stpul ed tm e r titon ends orpur                     shed) t   arl
                                                                        , empor iy
    r rct netasset ar r assi ed t unr rct netasset and r ted i t St em entof
     est i ed       s e ecl f   i    o    est i ed s    epor n he at
        i tes         s el       r    est i i
    A ctvii as netasset r eased f om r rctons

      e                                    -
                                                       s    j   o     -m         i atons
                                               Net asset subect t donori posed stpul i
    r   rng hey be m ai ai
     equii t                    m
                      nt ned per anenty by t O r zaton. G ener l t donor oft
                                      l     he gani i          aly, he     s   hese
         s   m t he gani i o          l
    asset per i t O r zaton t use al or par oft i
                                             t  he ncom e ear       el ed nvest ent
                                                             ned on r at i    m s
     or    al       f
                    i
    f gener orspeci c pur poses.

       rbutons: A l conti i
  C ont i i       l              e
                        rbutons ar consi ed avaiabl f unr rct use unl
                                       der      l e or  esti ed             f l
                                                                            i y
                                                                    ess speci cal
   est i ed   he
  r rct by t donor     .

                               s         r      alncome t
                       Success i exem ptfom Feder i                  ton   c)3) he
                                                        axes underSec i 501( ( oft
   er                         s         r     si    ncom e t
  nt nalRevenue C ode Success i exem ptfom Loui ana i                   l
                                                            axes as w el.

          val s:
  Cash Equi ent Suc         der ~ ght i
                   cess consi s alhi y l d i t
                                        qui nves ment wih a mat i ofni y ( days
                                                    s t       urty   net 90)
    ess       chased t be cash equi ent
  orl w hen pur       o           val s.

   oper        pm : opery        pm    e at          .        olow he actce
  Pr ty and Equi ent Pr t and equi entar st ed atcost Success f l s t pr i of
     t izi        t es or opery     pm   n                   eci i     oper
  capial ng expendiur f pr t and equi enti excess of$100. Depr aton ofpr ty and
     pm   s       ed       r ghtlne
  equi enti com put on a stai -i basi overt estm at usef l oft asset
                                    s      he i ed         ves he
                                                        ul i       s.

  Ri            t ntes: The pr
    sks and Uncerai i             aton   i
                              epar i of fnanci st em ent i conf m iy w ih gener l
                                               al at       s n    or t     t       aly
        ed      i
  accept accountng prnci es r
                     i pl equies m anagem entt m ake estm at and assum ptons t afect
                               r             o          i es             i    hat f
   he epored am ount of asset and labiii and di osur ofcontngentasset and labiii att
  t r    t          s        s    i ltes      scl   e      i         s        t
                                                                           i l es   he
     e    he i    al at
  dat of t fnanci st em ent and t r ted am ount of r
                               s    he epor          s                           i he
                                                         evenues and expenses durng t
   epor    i       ual esuls d f r    hose estm at
  r ted perod. A ct r t coul di erfom t       i es.

          r i        edi sk:          nt ns t        ances atone fnanci i iuton i t
  C oncentatons ofC r t Ri Success m ai ai is cash bal           i    al nstt i n he
    vi     iver ea.
  ser ce del y ar The bal
                        ance w ih t fnanci i iuton i i ed by t FDI up t $100,
                               t he i    alnstt i s nsur     he  C    o     000
                           he gani i had no uni ed cash bal
  AtJune 30,1998 and 1997,t O r  zaton        nsur        ances.

   e
Not 2 Pr    t         pm
        oper y and Equi ent
                                          Balance                             Balance
                                          6/ 97
                                            30/       A ddii
                                                          tons     sposal
                                                                  Di    s     6/ 98
                                                                                30/
    i        pm
  O f ce Equi entand Com put ser      $             $     8,137 $           $     8,137
        s    d          t
  A sset H el U nderC apialLease -
    Phone Syst em                                          800
                                                          2,                       800
                                                                                  2.
       Tot .atcost
          al                                               937
                                                         10.                       937
                                                                                 10.

            at       eci i i udi
  A ccum ul ed Depr aton (ncl ng
                at     tzaton     s
    $100 accumul ed amori i ofasset
      d        api eas
                  al
    heT underc t l e)                               (      316 )            (       31 )
                                                                                      6

    oper
   Pr ty and Equi ent- Net
                pm                                  $    10,
                                                           621 $            $    10.
                                                                                   621
    eci i
Depr aton char     o
              ged t oper i was $316 and $0 i 1998 and 1997, r
                        atons                 n                       i y. ncl   n
                                                                espectvel I uded i
   eci i          or     s
depr aton expense f 1998 i $100 ofam ori i expense on asset hel undercapiall
                                       t on
                                        zat               s d           t ease      .




    e
N ot 3 Leases
      gani i eases is of ce space underan agr entt r
The O r zaton l    t f i                    eem            r
                                                  hat uns fom M ay 1, 1998 f a t m of
                                                                            or er
hi si 36)
  t           hs        hl ent
t ry- x ( m ont ata m ont y r alof$1,
                                    500. Prort May 1,1998,Success l
                                           i o                    eased of ce spac
                                                                         i
                                                                         f        e
 r    el ed t            ho      h    s        hl ent at                 gani i so
fom a r at pary on a m ont t m ont basi ata mont y r alr e of$350. The O r zaton al
eased m eetng space att Hi and Cent ,on a m ont t m ont basi t ough A prl1998 Tot l
l          i           he ghl     er          h o      h   s hr         i       .al ease
        or                    904     200.
expense f 1998 and 1997 was $7, and $5,
  ni      ut e ent       s         atng eases atJune 30, 1998 ar
M i m um f ur r alpaym ent underoper i l                       e

    1999                                             $         000
                                                             18,
    2000                                                       000
                                                             18,
    2001                                                       000
                                                             15,
    To~ l                                            $         000
                                                             51.


    e
N ot 4 C apialLeases
      _       t
The O r    zaton s he essee of a phone syst under a capiall
       gani i i t l                        em           t ease, w hi expies i M ar 2001.
                                                                   ch    r n     ch
          s      i lt
The asset and labiiy under capiall
                                t eases ar r ded att f r val of t asset The asset i
                                           e ecor      he ai    ue    he    .          s
     tzed      t   i ed      ul i
am ori overis estm at usef l e and i i uded i depr aton expense f 1998
                                 f     s ncl    n    eci i          or  .




                                                           1998             1997
       t               i on o
                        gat
   C apialLease assetobl i t AT & T, dat A prl21,
                                       ed    i
        n he i nal          800,payabl i t ry-
   1998,i t orgi am ountof$2,        e n hit
    x 36)   hl ns alment    4 ncl ng nt es
   si ( m ont y i t l sof$11 i udi i er tof
     75% per ,secur by pl
   26.     cent   ed    edge ofphone syst
                                        em           $         531 $
                                                              2,
      al    t           i on
                        gat
   Tot C apfafLease O bl i                                     531
                                                              2,
            r
   Less:C urentPoriton                               (         781 )
       t           i on
                    gat
   C apialLease O bl i - Long- m Pori
                             Ter   t on              $         750 $
                                                              1.

  ni      ut e ease paym ent undercapiall
M i m um f ur l            s         t eases as ofJune 30, 1998 f each oft nextt ee year
                                                                or        he   hr      s
    n he
and i t aggr     e e:
             egat ar

    1999                                             $         367
                                                              1,
    2000                                                       367
                                                              1,
    2001                                                       797
       al ni     ease paym ent
    Tot m i m um l           s                                 531
                                                              3,
         nt est ncl     her n
    Less i er i uded t ei                            (         000 )
                                                              1,
    Pr       ue        ni
      esentval ofnetm i m um l ease paym ent
                                           s         $         531
                                                              2,
   e       es
Not 5 Not Payabl   e
      gani i    er nt he olow ng       eem ent
The O r zaton ent ed i o t f l i debtagr     s
                                                          1998          1997
    nst l      e      e o        oyee i t am ountof
    I alm entnot payabl t an em pl    n he
       000 ed 22/             en   hl         s
    $10, dat 4/ 98,payabl i 24 m ont y paym ent
               at              ed.
    of$457 ata r e of9% ,unsecur                      $     9,618 $

    nst l      e      e o    r or n he
    I alm entnot payabl t a diect i t am ountof
       000 ed 221             en   hl         s
    $10, dat 41 98,payabl i 12 m ont y paym ent
               at              ed
    of$875 ata r e of9% ,unsecur                             201
                                                            9,
    nst l      e      e o        oyee i t am ountof
    I alm entnot payabl t an em pl    n he
       500 ed 1 98,         en   hl        s
    $1, dat 61 1 payabl i 3 m ont y paym ent of
             at              ed.
    $507,ata r e of9% ,unsecur                                000
                                                             1.

    nst l    nsur   i        e n he i nal
    I alm enti ance fnance not i t orgi am ount
         542 ed i                 en      hl
    of$3, dat Aprl1,1998,payabl i 9 m ont y
           s 4          at     5%       ed.
    paym ent of$ 09,ata r e of9. ,unsecur                    777
                                                            2.

    Total                                             $      596 $
                                                           22,
        r     ton
    C ur entPori                                      (      789 )
                                                           17,
          Ter
    Long- m Pori ton                                  $      807 $
                                                            4.


   l ng e      urtes ong-er
Folow i ar m at ii ofl t m debt
    1999                                              $      789
                                                           17,
    2000                                                     807
                                                            4.
    Total                                             $      596
                                                           22.


    e    at      t
N ot 6 Rel ed Par y Tr      i
                      ansactons
    i                 ent   f
                            i
D urng 1998, Success r ed of ce f l i and r ved cerai oper i
                                acii es
                                   t       ecei   t n                t       ei   sed
                                                          atonalsuppor on a r m bur
    s r
basi f om Hi        l
            dden Hol Far s. D urng t year ended June 30, 1998 and 1997,t O r zaton
                     ow   m       i he      s                           he gani i
  d 500     4 200 n e         espectvel and $109 and $1, i ot oper i cost
pai $3, and $ , i r ntexpense,r     i y,               137 n her atng   s,
ncl ng el              i A s ofJune 30,1998 and 1997, t O r zaton ow ed Hi
i udi t ephone and supples.                            he gani i                l
                                                                         dden Holow
  m               espectvel f r due,i uded i Account Payabl
Far s $0 and $350,r     i y, or ent ncl    n       s      e.

                he gani i         st ng     es    e o t n t f s   i          r or
AtJune 30, 1998,t O r zaton had out andi not payabl t cerai ofis of cer and diect s
ot ing
t al $19,            e
          819. See Not 5.

               he gani i         050 ecei e r       t r or       ch s ncl   n
AtJune 30,1998,t O r zaton had $1, r vabl fom one ofis diect s whi i i uded i
      s ecei e.
account r vabl

   i he                                 he           d    400     900,r
Durng t yearended June 30,1998 and 1997,t Com pany pai $12, and $3,         i yo
                                                                      espectvel t
      t r or or of onalser ces.
one ofis diect s f pr essi vi

   e          t    s           i
Not 7 C om m im ent and C ont ngenci
.                                     es
  ant equie t f flm ent of cerai condii
Gr s r          i
         r he ul l           t n     tons as set f th i gr contact Faiur t f fl t
                                                 or n ant     r s.   l e o ul l he
                                                                             i
    tons     orh n he ant  r s     d esul n he et n ant unds t t gr or
condii as setf t i t gr contact coul r ti t r ur ofgr f      o he ant          .
              R O B E R T S,C H E R R y & C O M PA N Y
                  ii     i         ant ,    t s
              Certfed PublcA ccount s Consulant




                                          ndependentA udiors Repor
                                          I             t '       t


         he     d     r or
      To t Boar ofDiect s of
                     i     vi       t b/      e    nsie
      Success Counselng Ser ces -Norh d/ a Succ ss I t
          er t y,    si
      Bossi Ci Loui ana


                  t he            ng at     s i      al
      W e have audied t accom panyi st em ent offnanci posii of Success Counsel Ser ces - Norh d/ a
                                                          ton                 ing vi        t b/
      Suc     nst a
                 e      of gani i
                           t
         cess I i ( nonpr i or zat as ofJune 30,1998 and 1
                                  on)                             he el ed at   s     t i
                                                                                       vies,
                                                          997,end t r at st ement ofaci t
      unctonalexpenses and cash fows f t year t ended. These fnanci st em ent ar t r
      f i                       l    or he  s hen            i    al at                  bit
                                                                                           i
                                                                            s e he esponsi ly of
          ess    ing vies   t b/       ces nst
                                             e'
      Succ Counsel Ser c -Norh d/ a Suc s I i s management Ourr
                                                         .          il so
                                                                      i
                                                                      y        ess   ni
                                                              esponsbit i t expr anopi on
      on t     i    al at     s                t
          hese fnanci st em ent based on ouraudis.

                 ed         t n
      W e conduct our audis i accor          t
                                      dance wih gener l acc pt audii st
                                                     aly e ed                 ds          nm
                                                                    tng andar and Gover ent Audii  tng
      St     ds, ssued by t Com ptol G ener of t Unied St es.Those st
        andar i            he       rler      al he      t    at               ds equie hat
                                                                          andar r r t we pl and an
         f m he       t o
      peror t audi t obt n r             e
                             ai easonabl assur ance about whet t fnanci st em ent ar fee of m at i
                                                             her he i     al at      s e r         eral
        sst em .          t ncl         ni
      m i at ent An audi i udes exam i ng,on a t basi evi
                                                 est                   tng he       s     scl es n he
                                                        s, dence suppori t am ount and di osur i t
      i     al at      s.       t so ncl
      fnanci st em ent An audi al i udes assessi t ac ountng prnci es used and si fcantestm at m ade
                                                  n9 he c     i i pl               gnii      i es
                     ,      l       uatng he    a li
      by m anagem ent as w el as eval i t over l fnanci st em ent pr
                                                         al at            aton. W e beleve t our audis
                                                                      esent i           i  hat       t
        ovi
      pr de a r         e    s or      ni
               easonabl basi f ouropi on.

       n      ni he i        al at    s ef r o
      I ouropi on,t fnanci st em ent r ered t above pr   esentf ry,i al m at i r
                                                              ail n l eral espect t fnanci posii
                                                                                    s, he i    al   ton
                       i      v ces   t   b/          nsie                               he         nt
      ofSuccess Counselng Ser i - Norh d/ a Success I t as ofJune 30,1998 and 1997,end t changes i is
             s          l     or he  s hen ended i conf m i w ih gener l ac ept accountng prnci es.
      netasset and cash fow s f t year t         n     or t t
                                                           y           y
                                                                     al c      ed      i    i pl

       n    dance w ih Gover m entAudii St
      I accor       t      n         tng andar we have al i
                                              ds,                      epor   ed   i
                                                            so ssued a r t dat Aprl21, 1999 on our
          der i                   i    v ces
      consi aton ofSuccess Counselng Ser i - Norh d/ a Success I t s i er contoloverfnanci r tng
                                               t b/            nsie' nt nal   r     i    al epori
             est   t        i      t t n ovi ons aw         egul i
      and ourt s ofis com plance w ih cerai pr si ofl s and r atons.




                                                          RO BERTS,CHERRY AND CO M PANY

            por i
       A Cor aton of
          tf
           i       i       ant
       Ceri ed Publc Account s
       Shr     t      si
          evepor,Loui ana
          i
       Aprl21,1999




                                                          9
   o pof i      rtlc / i          alr"            27
A ('F a/on of C# i~ d Ptb]c Ac~ount t& ~ P.o.BOX 4 8 ~ SIREVIPORT, LA 711 4- 8 ~ ( 8)222 22
                                                         I , :           3 027   31            . 3i 6 S
                                                                                        - 22 ~ IA~ ( ~)22 7t g
             R O B E R T S,C H E R R Y & C O M PA N Y
                ii       i       ant,     t s
             Certfed PublcA ceounl s Consulant


                                      AN            NTERNA L CO NTRO L OVER FI NCI L
                   REPO RT O N CO M PLI CE A ND O N I                        NA  A
                          NG                   T
                  REPO RTI BASED O N AN AUDI O F FI        AL
                                                      NANCI STATEM ENTS PERFO RM ED
                         N                TH                    TI
                        I ACCO RDANCE W I G OVERNM ENT A UDI NG STA NDARDS



        he     d     r or
     To t Boar ofDiect s of
                    i    vi       t b/            nsie
     Success Counselng Ser ces -Norh d/ a Success I t
         er t y,    si
     Bossi Ci Loui ana

                 t he i
                  ed      al at    s     c
     W e have audi t fnanci st ement ofSuc ess Counsel Ser i -Norh d/ a Success I t ( nonpr i
                                                     ing v ces    t b/             e
                                                                                nsi a     of t
       gani i           or he
     or zaton)as ofand f t yearended June 30,1998,and have i          epor her      ed i
                                                             ssued ourr tt eon dat Aprl21,
                     ed        tn
     1999. W e conduct our audi i accor         t     al
                                       dance w ih gener l accept audii st
                                                         y     ed                ds    he andar
                                                                      tng andar and t st        ds
         i e oi       al  t     ai    n
     applcabl t fnanci audis cont ned i G over entAudii St
                                              nm                ds, ssued by t Com ptolerGener lof
                                                       tng andar i            he     r l     a
      he   t    at
     t Unied St es.


            i
     Com plance
           t      ai ng easonabl assur
     As par of obt ni r        e      ance about w het Success Counselng Ser i - Norh d/ a Succ ss
                                                     her              i    v ces    t   bl     e
      nsie' i     al at     s e r         eral sst em ,
     I t s fnanci st em ent ar fee of m at i m i at ent we peror ed t s of is com plance wih cerai
                                                               f m     est    t     i      t    t n
       ovi ons aws,r atons,contact and gr s,noncom plance w ih w hi coul have a diectand m at i
     pr si ofl         egul i      r s,       ant         i     t    ch    d         r         eral
      f        he   er naton i       al at
     efect on t det m i i of fnanci st em ent am ount However pr di an opi on on com pl
                                                       s.      , ovi ng         ni        ance wih
                                                                                          i      t
     hose pr si was notan obect ofouraudi,and accor ngl we do notexpr such an opi on. The
     t     ovi ons          j ive       t         di y,             ess         ni
      esuls       est scl          nst               i     hat e equied o     epor
     r t ofourt s di osed no i ances ofnoncom plance t ar r r t be r ted underG over            nment
         tng andar
     Audii St                   ,       ed
                    ds. How ever w e not cerai i m at i i ances ofnoncom plance,w hi w e have r ted
                                            t n m   eral nst               i       ch          epor
     o                                i    v ces
     t m anagem entofSuccess Counselng Ser i - Norh d/ a Success I t i a separ e l t dat Aprl21,
                                                    t   b/         nsie n       at eter ed       i
     1999.


      nt nal     r
     I er Cont olO ver Fi       al
                          nanci R epor itng
      n anni          f m ng         t        der
     I pl ng and peror i ouraudi,w e consi ed Success Counsel Ser i - Norh d/ a Success I t s
                                                                   i
                                                                   ng v ces       t    b/          nsie'
     nt nal    r       i
     i er contoloverfnanci ral epori i or t det m i ouraudii pr
                                   tng n der o     er ne                   es or he
                                                                tng ocedur f t pur                 essi
                                                                                        pose ofexpr ng
            ni      he i    aT at       s
     our opi on on t fnanci st em ent and not t pr de assur
                                                   o ovi                  he nt nal      r       i
                                                                 ance on t i er contol over fnanci     al
      epor ng.        ,     ed t n       t s nvol ng he nt nal
     r ti However we not cerai m ater i vi t i er contoloverfnanci r ti and is oper i
                                                                  r      i     al epor ng     t     aton
      hat       der o
     t w e consi t be r      t e
                         eporabl condiitons.Reporabl condii i ve m ater com i t ouratenton r atng
                                                t e       tons nvol      t s     ng o      t i el i
      o gni i      i enci n he        gn
     t si fcant defci es i t desi or oper i of t i er contolover fnanci r ti t , i our
                                               aton    he nt nal     r       i     al epor ng hat n
     udgment coul adver y afectSuc es Couns i Ser c - Norh d/l Suc s I t s abit t r d,
     j     , d        sel f      c s       elng vies    t ba ces nsi          i
                                                                       e' ly o ecor
      pr               i       epor i   al a
        ocess, sum m arze, and r t fnanci dat consi ent w ih t asseri
                                                  st      t he                           n he i   al
                                                                   t ons of m anagem ent i t fnanci
       at      s.      t e      tons ed e
      st em ent Reporabl condii not ar

               gani i does not have pr
         The O r   zaton                 ocedur i pl
                                               es n ace t ensur t t bilng i ces ar accur el
                                                        o     e hat he li nvoi       e     at y
              t           epr     atve        tng
         suppored by and r esent i of suppori w or lk ogs. The O r zaton pr
                                                                 gani i       es he    ual li
                                                                           epar t act bilngs
          r      k ogs,butdoes nothave pr
         fom w or l                           es o iy hat he    k og    he li   e dentcal
                                        ocedur t verf t t wor l and t bilng ar i i .

            eral            s        ton n    ch he
      A m at i weakness i a condii i w hi t desi or oper i of one or m or of t i er contol
                                                       gn         aton             e     he nt nal     r
                s
      com ponent does notr        o el i y ow evelt rsk t m i at ent i am ount t woul be m at i
                           educe t a r atvel l l     he i hat sst em s n             s hat    d       eral
       n el i o he i         al at      s   ng
      i r aton t t fnanci st em ent bei audied m ay occur and not be det ed w ihi a tm el perod by
                                                   t                          ect    t n    i y     i
      em pl      n he     m       se      f m ng hei
           oyees i t nor alcour of peror i t rassi      gned f    i            der i      he nt nal
                                                              unctons.O urconsi aton oft i er contol   r
           i     al epor ng     d
      overfnanci r ti woul notnecessarl di ose al m ater i t i er contolt m i be r tabl
                                             i scl
                                              y         l t s n he nt nal         r hat ght       epor e
           tons          di y,       d
      condii and,accor ngl w oul notnecessarl di ose al r tabl condii t ar al consi ed t be
                                                 i scl
                                                  y        l epor e        tons hat e so        der o
          eral                     ,      i    hat
      m at i w eaknesses.How ever w e beleve t none oft r tabl condii descrbed above i a m at i
                                                         he epor e        tons      i          s      eral
      w eakness.

                                                        10
     por l        i
                  i       i
A Cor ~ton of Certfed Publc A ccount s ~ e.O.BOX 42 8 ~ SIREVEPOR3.IA 71 M 02 8 ~ ( 8 2 22 2 ~ VAX ( 2 63t 0
                                   ant             7      I         , 1 7         31 ) 2 - 2 2     MS) 2 5
   s epor i i ended sol y f t i or aton and use of m anagem ent ot s w ihi t or zaton and
Thi r    t s nt       el or he nf m i                          , her t n he gani i
f    al    di      es
 eder awar ng agenci and pass-hr
                             t ough enttes and i noti ended t be and shoul notbe used by anyone
                                       ii      s    nt      o            d
  her hen t
ot t                i
                    f      tes,
           hese speci ed pari




                                                 -, I      v
                                           Ros~ZT5 (/E~~y n~p (o~ PA~Y
                                               RO BERTS,CHERRY A ND CO M PA NY

     por i
A Cor aton of
   tf
    i      i
           c       ant
Ceried Publ Account s
Shr     t    si
   evepor,Loui ana
    i
A prl21,1999
                R O B E R T S,C H E R R Y & C O M PA N Y
                    i
                    i      i        ant,      t s
                Cerlfed PublcA ccount s Consulant




              he     d     r or
          To t Boar ofD iect s of
                          i    vi        t b/            nsie
          Success C ounselng Ser ces - Norh d/ a Success I t
               er t       si
          Bossi C iy,Loui ana

                t      ai ng easonabl assur
          A s par of obt ni r       e                   her               i    vi
                                          ance aboutw het Success C ounselng Ser ces
          -
                 t   b/          nsie' Succ   i
               Norh d/ a Success I t s ( ess)fnanci sat    s          or he
                                                  al t ement as ofand f t year
                                   e r         eral sst em     ,      f m    est
          ended June 30, 1998 w er f ee of m at i m i at ent w e peror ed t s of is t
                i      t      t n
          com plance w ih cerai pr siovi ons of l s, r
                                                 aw         atons, contact and gr s,
                                                       egul i          r s       ant
                   i      t     ch
          noncom plance w ih w hi coul have a diect and m at i efect on t det m i i
                                      d         r           eral f       he  er naton
              i    al at              s.      esuls         est scl         nst
          of fnanci st em ent am ount The r t of our t s di osed no i ances of
                    i    hat e equied t be r ted underG over entAudii St
          noncom plance t w er r     r o    epor            nm     tng andar  ds.
                   ,       ed he olow ng  t s
          H ow ever w e not t f l i m ater of i m at i noncom plance t
                                                 m  eral        i             ve
                                                                      hat deser
          com m ent:

                   aied o       y t he        si
          Success f l t com pl w ih t Loui ana st e l w hi r
                                                      at aw              r
                                                                 ch equies t        t
                                                                             hat audied
           i   al at      s   ssued w ihi si m ont ofan entt s fscalyearend. The June
          fnanci st em ent be i       t n x       hs         iy' i
                   i   al at      s     d
          30,1998 fnanci st em ent shoul have been i ssued by Decem ber31,1998.

                           s    ng o          i
          Sequence of Event Leadi t N oncom plance

           n                he                             ecei        eter r
          I M ay 1998, t m anagem ent of Success r ved a l t fom t Loui ana        he      si
              sl i         t ' f ce gi                 o              tfed
          Legi atve A udiors ofi ur ng Success t engage a cerii publc account t i         ant o
             f m he                        t     t       o he eter
          peror t June 30, 1998 audi. Atached t t l t w as a copy of t r ti         he epor ng
           r
          f equency r      r      s    at aw
                      equiem ent of st e l . The m anagem ent of Success f   axed a copy oft  he
          eter o         t        r                    ng or        anaton     he eter
          l t t R obers, C her y and C om pany aski f an expl i of t l t . Based
             el           evi       he eter        he epor ng r            t
          sol y on our r ew of t l t and t r ti fequency atachm ent w e advi        ,       sed
                         hat            hei
          m anagem entt based on t r annualr         evenues,t        d ect       enni
                                                              hey coul el a bi alaudi f     t or
           he      s
          t year ended June 30, 1998 and 1999. W e f ther advi ur         sed m anagem ent t hat
                aly      enni        t s
          gener l a bi al audi i m or cost efectve because onl one set of fnanci
                                             e        f i                 y             i      al
            at      s                  ng     t ' epor
          st em ent and accom panyi audiors r ts has t be pr   o      epared. The m anagem ent
          ofS uccess t          sed      t        r                 hei nt    o
                       hen advi Robers,C her y and C om pany oft ri entt engage us f a      or
          bi    al     t       i he i          s
            enni audi coverng t fscalyear ended June 30,1999 and 1998.

                       sed Success oft bi alaudi opton,w e had notbeen pr ded w ih a
          W hen w e advi               he enni        t i                   ovi     t
                               r    t he       si       t           t          t s
          copy of Success'cont actw ih t Loui ana Deparm entof Healh and Hospial w hi ch
           ncl
          i uded t r        r
                    he equiem ent i t D H H contact f an annual audi. I A prl 1999,
                                   n he             r   or              t n      i
          S uccess w as advi                 he           t equiem ent At t
                            sed by D H H of t annual audi r    r      .           nt he
                                                                           hat poi , t
          or    zaton         r                   i
             gani i w as aleady out of com plance w ih t          at aw
                                                          t he st e l . M anagem ent
           m     at y              t       r               o f m he      t he i
          i m edi el engaged Robers,C hery and Com pany t peror t audi oft fnanci      al
            at      s or he i
          st em ent f t fscalyearended June 30,1998.

                            on
              R ecom m endati

              W er             hat he                             l evi
                                                                  y         i o
                   ecom m end t t m anagem entof Success annual r ew prort year end t-     he
                 r        t equiem ent i t r cont act and engage a cerii publc account t
              cur ent audi r    r      s n hei    r                  t fed     i        ant o
                    y t hose r
              com pl w ih t          r     s.                eter gned by t account and
                                 equiem ent The engagem ent l t si          he        ant
                             ncl      ovi ons o     e hat he
              S uccess m ust i ude pr si t ensur t t audi i i                t n x       hs
                                                                 t s ssued w ihi si m ont of
                        o      y t       si     at aw
              yearend t com pl w ih Loui ana st e l .
     por i J    ' i~      i        f s
A (or ~to~ of C2rtled Publc A ccom~ant ~ P.o.BOX 42 8 ~ SIRIVEPOR],IA 71 3 0 7 ~ 1~8 2 22 2 ~ IAN (.8 2 6"l t
                                                   7        :
                                                          I ,           14 2 8    71 ~ 2 - 2 2     ?1 ) 2 ~S~
  s epor i i ended sol y f t i or aton and use of Success C ounselng
Thi r    t s nt          el or he nf m i                                   i
   vi        t b/           nsie,            ,     her t n he         ni r i
Ser ces -N orh d/ a Success I t m anagem ent and ot s w ihi t adm i st aton
     s   nt       o            d                        her han t
and i noti ended t be and shoul not be used by anyone ot t                fed
                                                                 hese specii
   tes.
pari

                                           f, , / Tee ~,D ompAnY
                                        Ro&~ eTs C/k ,Jy , ~ C
                                           RO BERTS,CHERRY AND CO M PA NY

     por i
A Cor aton of
   tfed    i       ant
Cerii Publc Account s
Shr     t    si
   evepor,Loui ana
   i
Aprl21,1999
                                     i     vi        t    b/         nsie
                      Success Counselng Ser ces - Nor h d/ a Success I t
                                   e    ndi             i       s
                             Schedul ofFi ngs and Q uestoned Cost
                                      he
                                  Fort YearEnded June 30,1998

            t he i       al at      s
W e have audied t fnanci st em ent ofSuccess Counselng Ser ces - Norh d/ a Success I t as ofand f
                                                       i    vi       t b/           nsie        or
 he
t yearended June 30,1998,and have i   ssued ourrepor t eon dat Aprl21,1999. W e conduct ouraudi i
                                                   t her      ed  i                    ed      tn
accor        t      aly       ed     tng andar and t st
     dance w ih gener l accept audii st        ds      he andar appl e t fnanci audis cont ned i
                                                               ds   icabl o i    al    t   ai     n
                tng andar i
Govem m entAudii St                      he      rl
                           ds, ssued by t Com ptol G ener oft Unied St es. O uraudi oft fnanci
                                                   er     al he     t    at           t he i     al
  at     s                   esuled n          i
                                               f
                                               i
st em ent as ofJune 30,1998 r t i an unqual ed opi on.ni

    i           y       t '      t
Secton I Sum m ar ofA udiors Repor s

a       t    nt nal
    Repor on I er Contoland Com plance M at i t t Fi
                      r           i                     al at     s
                                          eral o he nanci St em ent

     er        r
    nt nalC ontol
         eral
      M at i W eaknesses : No                 t e      tons: Yes
                                          Reporabl Condii

          i
    Com plance
      Com pli        eral o nanci St em ent No
             ance M at i t Fi   al at      s:


b. FederaIAwar     A
              ds- N/


   dentfcaton or ogr     A
c. I ii i ofMaj Pr ams- N/

    i I nanci St em entFi ngs
Secton I Fi al at       ndi

         li          w        ee o   k
1998-1 Bilngs do notal ays agr t W or Logs

   iera: m    led o he i          al   t
C rt i Ti e bil t t O f ce of M ent Healh shoul agr t t tm e ent ed i o w or l
                                              d   ee o he i    er nt                    al
                                                                            k ogs by soci
    ker
w or s.

      ton            ed hr nst      n
C ondii Found: W e not t ee i ances i w hi Success I t under led t O fi of M ent Healh f
                                         ch        nsie     bil he fce           al  t or
   v ces ovi          ed   nst    n
ser i pr ded. W e not one i ance i w hi Success I t over led t O f ce ofM ent Healh.
                                      ch        nsie    bil he i            al   t

 f :     e          f       he i
Efect Ther w as no efecton t fnanci st em ent The or
                                  al at      s.        zaton'    r    t he at s i t o
                                                    gani i s contactw ih t st e i lm ied t
    000 or he i                             gani i      al eaches t contactl i i M ay but
                                                          y
$130, f t fscalyearended June 30,1998. The or zaton gener l r     he        m
                                                                       r i tn
    i     o v ce i ent hr     he      he i       n           he i
contnues t ser i cl s t ough t end oft fscalyear i June. Fort fscalyearended June 30,1998,
he        ovi     v ces ot i
                           ng
t agency pr ded ser i t al $132,
                               560. The fnalbii was ad ust t r
                                        i    lng
                                              l       j ed o educe t act ser ies
                                                                   he ual v c
  ovi  o he          l
                     ow
pr ded t t am ountal ed i t contact The t ee i ances ofunder JJ not i t audi exceeded
                         n he     r .       hr nst           bilngs    ed n he   t
 he   nst          bilng
t one i ance ofover li not
                         ed. As a r t t e ar no questoned cost as a r toft
                                   esul, her e       i       s                 i ngs.
                                                                    esul hese fndi

Cause: The or   zaton      ng           li     em
             gani i w as usi a m anualbilng syst

      i       s:
Q uestoned Cost $0

             i
Recom m endatons: W e r            hat he i m em
                                           ent
                       ecom m end t t cl i pl enta bilng syst t wilensur t bil
                                                          li     em hat l        i    e
                                                                          e hat lngs ar
     t           l ng    k ogs hus elm i i bot overand underbilngs.
suppored by underyi w or l t         i natng   h              li

    i I        al    d ndi             i
Secton II Feder Aw ar Fi ngs and Q uestoned Costs

       i e
NotApplcabl


                                                12
                                      i     vi       t b/            nsie
                       Success Counselng Ser ces - Norh d/ a Success I t
                                           er t      si
                                      Bossi Ciy,Loui ana

                                        e     i       ndi
                                  Schedul ofProrYearFi ngs
                                     he
                                 Fort YearEnded June 30.1998

    i     nt nal   r s
Secton I- I er Contol and Com pl
                               i        eral o he nanci St em ent
                                ance M at i t t Fi    al at     s

Ref ence
  er               i i
              Descrpton and Recom m endaton
                                         i                              uton   at
                                                                    Resol i orSt e

 1997-1              gani i
              The O r zaton w as not pr eparng tm el bank
                                            i i y            Resol as r
                                                                 ved   ecom m ended
              r      latons, w hi agr
               econcii i        ch        o he
                                     eed t t books and
              r    ds he gani i
               ecor oft O r zaton.

                      gani i
              The O r zaton shoul pr      e     hl
                                    d epar m ont y bank
              r      l ons w hen t st em ent ar r ved
                      at
               econcii i          he at     s e ecei
              t       l
               hat w il be agr     o
                              eed t or r     led o
                                        econci t book
              balances.

  1997-2      The O r zaton does nothave i pl a m et
                    gani i               n ace     hod           ved
                                                             Resol as recom m ended
              or syst em            ovi
                            of appr ng      nvoi
                                            i ces f  or
               sbur
              di sem ent s.

              The O r   zaton   d equie t each r
                     gani i shoul r     r hat       equest
              or              oved by a r
              f paym entbe appr                 bl
                                          esponsi e person
              n     ton o he
              i addii t t per son w ho pr    es he
                                         epar t check.

  1997-3             gani i
              The O r zaton does not have a pr ocess or          taly    ved
                                                             Pari l Resol - M anagem ent
              pr      es o     e oper accountng cut f of
                ocedur t ensur pr            i    of                  ed
                                                             has adopt a pr ocedur t i iy
                                                                                  e o dentf
              r                   t     n he accountng
               evenue and expense iem s i t          i             ecei es       efect n
                                                             open r vabl notr l ed i
                 i
              perods.                                         he              epor ng
                                                             t books as ofa r ti perod. i
                                                                         s     e    ed
                                                             These am ount w er post as
                    gani i      d dentf l
                                      y        oprat
              The O r zaton shoul i i al appr i e                 t res.
                                                             audi enti
               ecei es         es
              r vabl and payabl ateach r    tng   i
                                        epori perod
                     t hos j t s o hei
              and pos t e ad us ment t t rbooks.
  1997-4             gani i                ocedur i
              The O r zaton does not have pr    es n                  ndi n olow ng
                                                              RepeatFi ng i f l i year
                ace o     e hat he li nvoi
              pl t ensur t t bilng i ces ar r l
                                              e eadiy              ndi
                                                              see Fi ng 1998-1.
               r     e o      tng   k ogs.
              taceabl t suppori w or l

              The O r   zaton shoul pr
                     gani i       d       e l l ol
                                      epar al bis t
                   es         el     he     t ng
              agenci based sol y on t suppori w or k
              ogs.
              l

    i I nt nal      r s           i       eral o    al
Secton I - i er C ontol and Com plance M at i t Feder Aw ards
         i e
N otA pplcabl

    i I                   t
Secton II- M anagem entLeter
       i e
NotApplcabl




                                              13
                         N
      SU CCESS CO UN SELI G SERVI                         N TE
                                 CES N ORTH D BA SU CCESS I SI
                                  S    CK     V        O
                M AN A G EM EN T ' C O I EC T1 E A C TI N PLA N
                     FOR TH E YEAR END ED JUN E 30,1998

, on
 ect
~ i I Int          rol         i        eri o he nanci St em e
         ernalC ont and C om nlance M at alt t Fi     al at

 um    y    he
~ m ar oft recom m endat on:
                        i              gani i
                                The O r zaton doesnothave pr   ocedures
n ace o ur ha he li nvoi       e      at y uppor ed by and r es atve
i pl t ens e t tt bilng i cesar accur el s      t           epr ent i
ofs     tng    k ogs.
   uppori w or l

                     '
      M anagem ent s R es pons       i o he            t       ed n
                               e: Prort t 1997 audi conduct i D ecem berof
             nf m i r
      1997 i or aton f om s       t ng     k ogs      ali         l
                              uppor i w or l w ast led m anualy.D onnal    ee
                , he      nit atve r t ,
      A m m ons t A dm i s r i D iec or had r       edl eques ed per i i t
                                               epeat y r       t     m ss on o
        ii             er ogr      ng ii      n her eas       he i
      utlze a com put pr am bei utlzed i ot ar by t O f ce ofM ent            al
           t o olec he a hat             s nst            i
      H ealh t c l tt dat t Succes I ie w ascountng m anualy.I addiil n     ton
       hi ogr        or         ii
      t s pr am f m atw asutlzed f t Ps           at i           i         cai
                                       or he ychi rc R ehab O pton ofM edi d.
              s nst t f      e r ady i he am            ng     ndi dualy
      Succes I ie s af w er ale us ng t s e codi and i vi l num ber              ed
         vi ogs or h as               i         i           al     t
      ser ce l f bot cl sesofclent The O f ce ofM ent H ealh deni accessed
       o hi ogr                       nsie              t he l or he
      t t s pr am because Success] t w asnota par oft piotf t
          r ed v ces a l i
      cont act ser i dat colecton.

                   ed he es t     he         t    ch ndi ed
      The agency us t r ulsoft 1997 audi,w hi i cat a beterm et     t      hod of
            lng he t or he        hl li          vel       o
      com pii t da a f t m ont y bilngsbe de oped,t appl pr s e ty es ur o
                i l          ven m sson o e he ogr               ch
      O M H and fnaly w asgi per i i t us t pr am w hi has a diect         r
        ect oni eed o    on            he a e fi             al
      el r c f t Bat Rouge and t St t Of ce ofM ent healh t ough ist hr        t
           r ual eem        t ats i        our      n     ch
      cont act agr entw ih St itcalR es ces. I M ar of 1998 t fr t    he i s
             er uppored bilng w asgener ed. Thi pr am accum ul est m e by
      com put s      t    li            at      s ogr              at i
         nut      er ce i y egor            i . li or
      m i es by s vi delver cat y by clent Bilng f each m ont i bas onh s ed
       he ot              nut     er ce
      t t alnum berofm i esofs vi by cat     egor by clentdi ded by t
                                                 y      i      vi       he
           oprat i      t t ed n he        r .        v ce ogs n
      appr i e tm e uni as s at i t cont act The ser i l i ques i w er ton      e
          i he          li      i n          or        s nst
      dur ng t m anualbilng perod i 1998 bef e Succes I ie w asper it tm ted o
        e he        er og            d      ed hat n              he
      us t com put pr r am .Itshoul be not t i m ostcases t agenc t der-  y ra
        le    e vc s    n he as f e - lig he e vc        ovde
      bildfors r ie and i t Ic eo ov r biln t s r iewaspr i d,but
         for l       nut t
      not aful 30mi euni.




    i                      t
Sect on II!M anaeem entL et er
         y    he              i
Sum m ar oft recom m endat on: M ana    gem ents     d evi       l he
                                                 houl r ew annualy t audit
r    r     s               tfi
 equiem ent and engage a cer i ed publc account t com pl w ih audi r
                                      i        ant o      y t          r
                                                                  t equiem ents
    ur      o   ur        t s ss       t n x       hs he
and f t hert ens e an audi i i ued w ihi si m ont oft yearend.




                                           14
     M anagem entR es pons          t t n he equence ofevent l ng t non-
                          e: A s s a ed i t s                s eadi o
           i     ecton    he             et , her               usi
     com plance s i oft m anagem entl ter t e w as som e conf on overt    he
         t equiem s        l       t,    r               d
     audi r r ent .W hieRober s Chery and Com pany di nothave a copy of
      he            ont ac hey     e n   s s on   he          r t ch peled
     t 1998 D HH c r tt w er i pos es i oft 1997 cont ac w hi s l
         he am       tng equiem s         r l     s.    ng o he
     outt s e audii r r ent ascur enty exi t A ddi t t conf i i     us on s
      he ac ha evi           r s       l   he
     t f tt tpr ous cont act asw e last 1999-          o r t ndi e he
                                                  2000 c nt ac i cat t
         oprat      ts         r ul           l      t       z r
     appr i e audi i OM B Ci c arA -133 w hie M r.Les erM ut f om D H H has
     ndiae        Yel         udi s e r
     i c t d aGAS ( low Book)a ti r quied.
                   l   ur hat e t                 s       t n     opra e i
     The agency w ilens e t a l t erofengagem enti done w ihi appr i t tm e
      i   n he ut e. a r             t,   ry                l arf he ype
     lnesi t f ur St f f om Rober s Che r and Com pany w ilcl iy t t
           t equied        i m hei i ng n ii o he
     ofaudi r r and confr t rfndi i w rtng t t agency

      ee         s he    act s        s es   i e or r ng     he r i
D onnal Am m ons i t cont per on and i r pons bl f caryi outt cor ectve
   i
acton




                                        15

								
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