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D O N
FO RE! KI S FO U N D A T I N , I C .
b/ C
d/ a C O M PA Q C LA SS I O F N EW O RLEA N S
N A
FI A N C I L STA T EM ENTS
s
Y ear Ended June 30, 2002 and 200 1
FORE ! K ID S FOUNDAT ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
~
ON
(. TE N TS
Pa~ es
Independent Aud itors ' Report
Financial Statements
Balance Sheet s 2
Statements o f Activ ities 3
Statements o f Cash Flows 4
Notes to Financial Statements 5-8
Supp lementary Inform at ion 9-12
Special Report o f Cert ified Pub lic Accountants
Report on Compliance and on Internal Control Over Financial
Reporting Based on an Aud it of Financial Statements Perform ed
in Accordance with Government AuditJng Standards 13
Schedu le of Find ings 14
Reports by Management
Schedu le of Prior Year Find ings 15
Management 's Correct ive Action P lan 16
RaJ A.Da
ph zet d buesse Jr
Edwar G Ber
li rt
Phip A.Garet M em bers:
anci
Fr s O .Bol ogna k
M ar D Bohnet AI PA Prvat Com pani Pr i Secton
C i e es actce i
it
Clfon W .Newln
i se
Jon S Fol C actce
A I PA S E C Pr i Sectoni
t
Rober D.W at ns
ki nda oss
Li Cr W egm ann. azet & C o.
D er i wor
Ent prse Net k ofCPA' s
'oe~i por i
A ]rf sonalCor aton
rl d hcl c na t
f
i
Ce t e l bwAc ou tns
INDEPENDENT A UD ITOR S ' REPORT
TO the Board of D irectors
Fore ! Kids Foundation, Inc. d/b/a Compaq Classic of New Orleans
W e have aud ited the accompanying balance sheets o f Fore ! K ids Foundation , Inc .
d/b/a Compaq Classic of New Orleans (the "Foundation," a Louisiana non-profit
organization) as of June 30, 2002 and 2001, and the related statements of activities and
cash flow s for the years then ended . These financial statements and the schedu le s
re ferred to below are the responsibility of the Foundat ion 's m anagement . Our
responsib ility is to express an op inion on these financial statements based on our
audits .
W e conducted ou r aud it s in accordance w ith aud iting st and ard s genera lly accepted
in the Un ited States of America and the standards app licab le to financial audits
contained in Governm en t A udi ting S tandards , issued by the Comptro ller General o f the
United States . Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
m isstatement . A n aud it includes exam ining , on a test basis , evidence support ing the
amounts and disclosures in the financial statements . An aud it also includes assessing
the account ing princip les used and significant estimates m ade by m anagement , as well as
eva luat ing the overall financial statement presentation . We believe that our audit s
provide a reasonab le b asis for our op inion .
In our opinion , the financial statements referred to above present fairly , in a
material respects , the financial position of the Foundat ion as of June 30 , 2002 a
2001 , and the changes in it s net asset s and its cash flow s for the years then ended
conform ity w ith account ing princip les generally accepted in the United States
America .
In accordance w ith Governm en t A uditing Standards , we have also issued our report
dated Ju ly 25 , 2002 , on our consideration of the Foundat ion 's internal control over
financial reporting and our tests of its comp liance w ith certain provisions of laws ,
regulations , contract and grants . That report is an integral part of an aud it performed
in accordance with Government Auditing Standards and should be read in conjunction with
this report in considering the results of our audit .
Our aud it s were m ade for the purpose of form ing an opinion on the basic financial
statements taken as a whole . The supp lementary schedules on pages 9-]2 is presented for
the purposes o f add it ional analysis and is not a required part o f the basic financial
statements. This information has been subjected to the auditing procedures applied in
the aud its of the basic financial statements , and , in our op inion , is fairly stated in
all m aterial respects in relat ion to the basic financial statements taken as a whole .
Metairie , Lou isiana
July 25 , 2002
1 VD. TE 66
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FO R E L K ID S FO U ND A T IO N , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
BALANCE SHEETS
June 30 , 2002 and 2001
~SSETS
2002 200 1
Current A sset s
Cash and cash equ ivalent s $ 367,431
A ccounts receivab le 200 ,024
A ccrued intere st 10 ,34 1
Investments (Note 2) 1 ,458 ,863
Total Current A sset s 1 ,136,313 2 ,036 ,659
Equipment , at cost , le ss accumulated depreciation
of $167,993 in 2002 and $151,455 in 2001 30,326 38,862
C ap ita l le ase , at co st , less accum u lated amort izat ion
of $]3,092 in 2002 and $11,242 in 2001 2,775 4,625
Leasehold improvement s, at cost , less accumulated
a~ortiz~tion of $~7~ ,5~ i~ ~OO~ a~d $~77 ,5~4
in 2001 2 ,519
Total A sset s $1,170,925 ~2 082~665
L IA B IL IT IE S
Current L iab ilit ie s
Accounts payable and accrued liabilit ies 77,469 $ 230,747
Cash overdraft 474 ,100
Deferred revenue - current portion 58 ,600
Short-te rm debt 4 50 ,000
Accrued retirement benefit - current pertion 7 ,200 00Q
33 ~Qg
Total Current L iab ilities 534 ,669 796,447
Accrued retirement benefits 3 ,717 10 ,917
Total L iab ilit ies 538 ,386 807,364
Net A ssets - Unrestricted 632 ,539 1 ,275 ,301
Total L iab ilit ies and Net A sset s
See accompany ing Notes to Financial Statements .
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FOR E | K ID S FO UN DA T IO N , IN C .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
STATEM ENTS OF ACT IV IT IE S
Years Ended June 30 , 2002 and 2001
A m ou nt
2002 2 001
T o u r n am e n t r ev e nu e s $ 8,953,342 $7,856,377
Tournament Expenses
D irect tournament expenses 7,909 ,388 6,916 ,828
Indirect tournament expenses _ ~1 190,389 _ ! ,056,672
Total tournament expenses ~ 099,777 7,973,500
Tou rnam ent net lo ss (246,435) (117,123)
Other Income (Expense)
Investment income 136,382 133 ,888
O ther incom e 20 6 ,982 309 ,102
Loss on sale o f securit ies 4
/39~ 010) _ (37,952)
Net O ther Incom e 303 354 403 038
Excess o f revenue over expenses
before donat ions 56,919 285 ,915
Donat ions to charitab le organizations 520 ,436 672,960
Change in net assets be fore
unrealized loss on investments 463,517) (387,045)
Unrealized loss on investments (!79,245) (]41,37~)
Change in net assets (642,762) (528,436
N et a s set s
Beginning of year 1 ,275 ,301 _ ],803 ,717
E nd o f year $ 632,539 ~],275,30!
See accompanying Notes to Financial Statements .
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FO R E ! K ID S FO U NDA T IO N , IN C .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
STA TEMENTS OF CA SH FLOW S
Years Ended June 30 , 2002 and 200]
2002 200 1
Cash F low s From Operat ing Activ it ies :
Changes in net assets $ (642,762) $ (528,416)
Adjustments to reconcile to net cash from
operations :
Depreciation and amort ization 19 ,397 20 ,293
(Increase ) decrease in :
Receivables 134 ,315 (30,560
Accrued interest 9 ,513 (3 ,050
Increase (decrease ) in :
A ccounts payable (153,278) (83,482)
Deferred revenue (58,600) (26,400)
Accrued ret irement benefit s 000)
(33 ~Q9~ ._
_ (140,997)
Net cash used by operat ing act ivit ies _ (724,415) ~
_ 790,6~2)
Cash Flow s From ~nvest ing A ct iv it ies :
Purchases of equipment (8,003) (2~,357)
Sale (purchase) of ~nvestments, net ._
537 ,038 259 ,467
Net cash provided by investing activities 529~035 238,1]Q
Cash Flow s From Financing Act iv it ies
Advances short term debt 45~ 000
Net cash provided by financing activit ies 450 ,000
Net increase (decrease) in cash 254,620 (552,502
Cash at beginning o f year (106~ 669) _ 445,833
End o f year
2002 2001
Cash and cash equivalents $ 147,951 $ 367,431
C ash ove rdraft (474,200) $ 24~ 951 ~ i06,669)
See accompanying Notes to Financial Statements
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FORE ! K IDS FOUNDA T ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
NOTES TO F INANC IAL STATEMENT S
Years Ended June 30, 2002 and 200]
N ature o f one rat io ns
The Fore l Kids Foundation, Inc. (the Foundation) was incorporated on
September 20 , ~990 under the law s of the State of Lou isiana as a non-profit
corporation and does business as the Compaq Classic of New Orleans . Prior to
November 21, 2001 , the Foundation was known as The C lassic Foundat ion , Inc .
The primary purpose of the Foundation is the promotion of social welfare for
the comm unity of New Orleans by promoting , m anaging and sponsoring an annual
PGA TOUR golf tournament . The tournament is sponsored under a written
agreement w ith PGA TOUR , which details the term s and conditions o f the
tournament , prizes to professionals , the financial obligat ions and general
d ivision o f dut ies o f the parties .
2 Summ ary o f sian ificant account ina policies
The significant accounting policies followed by the Foundat ion are
~
sunmarized as fo llow s :
(a) Accrual basis
The financial statements of the Foundat ion have been prep ared on the
accrual basis of account ing .
U se o f e st im at e s
The prep aration of financial statem ents in conform ity w ith genera lly
accepted accounting principles requires management to m ake estim ates and
assumpt ions that affect the reported amounts of assets and liab ilities
and d isclosure o f assets and liabilities at the date o f the financial
statement s and the reported amounts of revenues and expenses during the
reporting period . Actual results could differ from those est imates .
Classification o f net assets
Financial Accounting Standards Board Statement No . 117 entit led Financial
Statement s for Not-for-Profit Organizations requires that net assets and
changes in net asset s be reported for three classificat ions - perm anent ly
restricted , temporar ily restricted and unrestr icted - b ased on the
ex istence or ab sence of donor imposed restriction s of these assets to a
particular purpose . A s the Foundation has a single purpose - the
operat ion o f the annual golf tournament and the donat ion o f the proceeds
thereof to charitab le organizat ions - all net assets are classified as
unrestricted .
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FO R E ! K ID S FO UN DA T IO N , IN C .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
NOTES TO F INANC IAL STATEMENTS
Years Ended June 30 , 2002 and 2001
Su~m~arv o f significant aecountin~ policies tcontinued
Cash an~ cash e~ulvalenta
Cash and cash equivalents include cash and highly liqu id m arketab le
securities w ith original m~turit ies of 90 day s or less .
(e) ~ ~
ta nd leasehold i ovements
Property and equipment , including equipment purchased under a capital
lease , are stated at cost , less accumulated depreciat ion . Depreciat ion
is computed ever the estimated useful lives o f the assets , u sing the
m od ified acce lerated cost recovery system , wh ich approxim ate s the 200%
declin ing balance m ethod o f depreciation .
Addit ions , improvem ents and expenditures for m aintenance that add
m aterially to productive capacity or extend the life of an asset are
cap italized . Other expend itures for maintenance are charged to
operat ions in the year incurred .
Leasehold improvement s consist of office renovat ions , construction of a
new p arking lot and sub stantial improvement s made to an exist ing p arking
lot at ~ng lish Turn for the Foundation 's use during the tou rnam ent .
Amortizat ion is calcu lated on a straight-line basis over the remaining
life of the Foundation 's lease with English Turn (see Note 5).
In ve s tm e n ts
FASB Statement No . 124 ent it led Account ing for Certain Investments Held
by Not-for-Profit Organizations requires investments to be carried at
fair value. At June 30, 2002 and 2001, $921,825 and $1,458,863 was
invested in various equity securit ies and long-term certificates of
deposit , respectively .
(g) Contributed services
Members o f the tournament 's execut ive comm ittee and other volunteers have
m ade significant contributions of their time to assist in the
tournament 's operat ion and related charitab le program s . The value of
this contributed time is not recorded in these financial statements
because it is not susceptible to objective measurement or valuation.
The Foundat ion also o ffers various rights and services during the
tournament to several of its suppliers in return for serv ice s and
products prov ided by these suppliers such as use o f rental cars , rental
of equipment , airp lane t ickets , catering services , and other serv ices and
products . These non-cash trades are recorded at the value of the serv ice
given up by the Foundation and totaled approximately $670,230 and
$405,000 during 2002 and 2001, respectively.
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FO RE ! K ID S FO UN DA T IO N , IN C .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
NOTES TO FINANCIAL STATEMENTS
Years E nded June 30 , 2002 and 200 1
Summary o f sionifieant accountino policies Icont inued
(h) A~encv Funds Payable
In accordance w ith Statement of Financial Accounting Standards No .136 ,
funds that are designated to the Foundation 's charit ies are recorded as
funds p ayable to charities . At June 30, 2002 and 2001 , the Foundation
had $0 in funds payable to charities.
3 concentrat ion o f cred it r isk
Financial instruments that potentially subject the Company to
concentrat ions of cred it risk consist principally of cash and investments .
The Company at t imes has cash on deposit at financial inst itut ions that is in
excess of federally insured lim its . A ccounts are guaranteed by the Federal
Deposit Insurance Corporation (FDIC ) up to $I00,000.
The Comp any has investment accounts that contain cash and securities .
Balances are insured up to $500,000 with a limit of $I00,000 for cash, by the
Securities Investor Protection Corporation (SPIC).
4 T o u r n am e n t i n c
The Foundat ion 's prim ary source of revenue is the sale of tournament
sponsorships and other rights . The sponsorship agreement w ith Compaq calls
for , among other things , an annual sponsorship fee , guarantee o f the purchase
of a specified number o f advert ising units from the networks broadcast ing the
Tournament , and the right to have the Comp aq name included in the tournament
name . Payment s on behalf o f Compaq were made to the Foundat ion totaling
$2,400,000 and $2,100,000 for the years ended June 30, 2002 and 2001,
respectively .
5) Don@tions
The Foundat ion m akes donations to local and children 's charities based
on requests received during the year . During 2002 , the Foundation donated
$520,436 to these charities, of which $94,214 were donations of tickets and
other tournament packages which were raffled by the requesting organizations.
The proceeds o f the raffles were donated to charitab le organ izat ion s . In
add ition to these donations , several sponsors of the Foundat ion contributed
$79,000 directly to various charities on behalf of the Foundation; included ~n
this amount is a $25,000 donation to the Word Golf Village, a $30,000 donation
by Mastercard and a $24,000 donation by Bank of America to various charities.
6) A a e n cv t r an sac t ion s
The Foundat ion , serv ing as an agent capacity , receives funds from various
charity go lf tournament s and other events throughout the year . Those funds
are then distributed to the appropriate charity . The total amount received
during 2002 was approximately $394,022 of which $312,794 was distributed to
the variou s charit ies .
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FO RE ! K ID S ~O UNDAT ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
NOTE S TO F INA NC IAL STATEM ENTS
Years Ended June 30 , 2002 and 2001
7 Short-te rm debt
Short-term debt consiat of the fo llow ing at June 30 , 2002 :
N ote payBble to a bank, interest at 7%, p ayable
w ith accrued interest at maturity , on
August 28 , 2002 . 4
~!~0,000
~ %0,ooo
8) Leaee~
The Foundat ion leases office space under a noncaneellable operating lease
wh ich exp ires in June 2003 .
The Foundation leases the golf course facilit ies of the English Turn Golf
& Country Club under an agreement calling for annual rent of varying amounts
and other considerat ions . The orig inal agreement extended through the year
2000 ; however , the Foundat ion entered into an agreement in 2001 which grants
the Foundation the option to extend the agreement through the year 2004 at the
d iscretion of the Foundat ion .
The fo llow ing is a schedu le of future m in imum lease payments for all
noncance llab le operat ing leases payable over the remaining lives o f the
leases :
Yea~ End in~ Ju ne 30
2003 [2
~2/~.?00
Tota l ~2 O ?oo
. ~
L ~ _
Accrued ret irement benefit
The Foundat ion has granted a former employee a retirement package which
includes an obligation to pay a monthly sum of $801 until death . This
obligat ion has been est im ated based on the life expectancy o f the ret iree ,
discounted at 8% to the present value o f the estim ated stream o f payments .
Intere st is being acereted over the expected life of the retiree .
I0) Income ta~es
No prov ision for Federal and state income taxes has been reflected in the
accompanying financial statements because the Foundation is exempt from income
taxes under Section 501(c)(3) of the U.S. Internal Revenue Code.
ii) Advertisin~
The Foundat ion expenses advertising as incurred . Advertising expense was
$876,747 and $448,205 for the years ended June 30, 2002 and 2001.
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FORE ! K IDS FOUNDAT ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
SU P PL EM E N TA RY IN FO RMA T IO N - TO U RN A M E N T R EV E N U E
Years Ended June 30, 2002 and 2001
Am ount
2002 2001
Telev ision rights $2,674,500 $2,372,500
Sponsorsh ip sale s 1,339 ,308 1 ,274 ,828
Sales o f other rights 2 ,079 ,400 1,736 ,750
Skybox sales 862 ,250 938 ,922
Peninsula V illa 135,250 168 ,000
Mond ay - Pro Am 133 ,500 126 ,4 ]2
Ticket sales 109,898 138 ,28 7
PGA TOUR Charity income 130 ,000 132 ,257
Corporate tent sponsors 27 ,500 88 ,053
Program~pairing sheet advertising 498 ,269 247,6]6
Sponsor pav ilion sales and r ights 9 5 ,357 70 ,293
Corporate expo income 68 ,500 49,000
Outside concessions 59 ,603 56 ,436
Park ing incom e 47 ,785 58 ,805
Special events income 292,205 200,915
Jun ior golf income 37 ,797 20 ,130
Uniform income 40 ,74 1 42 ,970
Bobby Jones Saturday Series 78 ,000 83 ,250
Aquarium Event incom e 20 ,000 20 ,250
Valet park ing pass income 5 ,600 8 ,800
Holiday package for incom e 2 5,72 5 21 ,313
Entry fee for pro fessionals 50 5 59O
Tour C lub 69 ,600
Eagle Sponsor 22~
Tot a l Tou rnam ent R ev enue $8,85~ ~3
$7,856 377
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FO R E ! K ID S FO U NDA T IO N , IN C ,
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
SUPPLEMENTARY INFORMAT ION - DIRECT TOURNAMENT EXPENSES
Years Ended June 30 , 2002 and 2001
Am ount
2002 2001
Prizes to professionals $4,000,000
Publicity and advertising 448 ,205
Skybox expense 559 ,877
pro fessional p layers expense 142 ,390
Champ ion club expense 95,608
Go lf course rental 120 ,000
Course improvements 54 ,015
Sponsorship pavilion expense 106,103
Equ ipment rental and storage 116 ,663
Sponsorship sale s expense 23 ,898
Peninsula Villa exp ense 77 ,347
Badges/tlcket sales expense Ii0 ,036
C ivic patron expense 55,807
Park ing 98 ,740
Pro-am ateur expe nse :
Wednesday tournament 103 ,307
Monday tournament 54 ,920
C ity police and security 79 ,0 11
Tournament signs 22 ,435
Junior clin ic 2 ,223
Temporary electrical service 45 ,999
Supplies - golf course 26 ,435
sanitat ion expense 40 ,250
Program and paring sheet production expense
Tournament office expense
Grounds and clubhou se expense
Corporate sponsor tent s
Special events expense
Junior golf expense
Island C lub expense
Corporate expo expense
Volunteer expense
Caddy expense
Courte sy cars
Scoring expense
Nursery expense
Bobby Jones Satu rday Series expense
Communicat ions expense
Uniform expense
Entry fee paid to PGA Tour
Tour Club
Compaq
Total Direct Tournament Expenses
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FORE I K ID S FOUNDA T ION , IN C ,
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
SUPPLEM EN TARY IN FORM AT ION - IND IRECT TOURNAMENT E XPEN SE S
Years Ended June 30 , 2002 and 2001
Am o u nt
2002 2001
Salarie s and benefits
o ffice expenses
Professional fees
In su ra n ce
M iscellaneous
Other travel and entertainment
Taxes
Execut ive comm ittee expense
Executive director travei and promotion
Depreciat ion and am ort izat ion
Dues and subscript ions
Postage
Print ing
R e nt
Telephone
Bank serv ice charges
Total Indirect Tournament Expenses
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FOR E J ~ ID S F OUNDA TION , IN C .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
SUPPLEMENTARY INFORMAT ION - CHAR ITABLE CONTRIBUTIONS
Year Ended June 30, 2002
A m ou nt
d
3r D istrict Kiwanis $ 3OO
American Red Cross 1 ,500
Archdiocese of Greater New Orleans 4 ,4 50
Big Brothers/Big Sisters 5 ,000
Boys Hope/Girls Hope 25 ,000
Bu ilding Blocks Day Care 2 ,000
Catho lic Charit ies 4 ,000
Charity Hosp ital Reading Program 1,000
children 's Hosp ital 50 ,000
Co lin Hedrlck 200
Council on A lcohol and Drug Abuse 15 ,000
Country C lub of Lou isiana 2 ,500
Crescent Academy 5 ,000
Crohn 's and Colitis Fund 4 ,000
E . St . Tammany Rainbow Children 's Center 2 ,000
E lmw ood Fit ne ss Cente r 325
Fam ilies o f S .M .A . 5 ,000
Family Services of Greater New Orleans 7 ,300
Girl Scouts Council 5,000
Holy Rosary School 18 ,000
Hop e H ave n i0 ,000
urunity Schoo l
Jefferson Con ~ 5 ,000
Jefferson Dollars~Scholars 7 ,500
Jew ish Fam ily Services 2 ,500
Juvenile D iabetes 24 ,000
K-BAR-B Youth Ranch 5,000
Lamarque 1 ,000
Leukem ia and Lymphoma 5,000
Louisiana Children 's Museum 14 ,000
LSU Health Science Center 5 ,000
LSUMC Ch ildren 's Fund 5 ,000
MAKE-A-W ISH Foundat ion 11 ,000
Methodist Home 7,000
Navy Ball Fund 200
New Orleans Speech 6 ,750
PGA Tour Charit ies , Inc . 25 ,000
Raintree Services 7,000
Se a so n s 4 ,000
Simmone-Fontanna 1 ,000
St . E lizabeth 's Gu ild 500
St . M ichael 's School 32 ,000
STA IR Program 2 ,500
Summ erbridge 1 ,000
Tiger Athlet ic Foundation 20 ,000
Tu lane Athletics 600
United Cerebral Palsy 7 ,000
united Way 26 ,000
VOA L ighthouse 5 ,000
Volunteers o f America 98 ,611
Young L ife 23 ,700
Total Charitable Contributions 436
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RBI A Dazet d
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REPORT O N COM PL IANCE AND ON INTERNAL CONTROL OV ER F INA NC IAL REPORT ING
BA SED ON AN A UD IT OF E INANC IAL STATEMENTS PERFORM ED IN A CCORDAN CE
W ITH GOVERNMEN T A UDITING STANDARDS
To the Board of D irectors
Fore l Kids Foundation, Inc. d/b/a Compaq Classic of New Orleans
We have audited the financial statements of ForeJ Kids Foundation, Inc. d/b/a
Compaq Classic of New Orleans (the "Foundation"), a Louisiana nonprofit organization as
of and for the year ended June 30 , 2002 , and have issued our report thereon dated Ju ly
25 , 2002 . We conducted our audit in accordance w ith auditing standards generally
accepted in the United State s o f America and the standards applicab le to financial
aud its contained in Governmen t A udi ting S tandards , issued by the Comptro ller General of
the United States .
~ompliance
A s part o f obtaining reasonable assurance about whether the Foundation 's financial
statements are free of material m isstatement , we performed test s of its comp liance w ith
certain provisions of law s, regu lat ions , contracts , and grants , noncomp liance w ith which
could have a direct and m ateria l effect on the determ inat ion of financial statement
amounts . However , prov id ing an op inion on compliance w ith those provisions w as not an
objective of our audit, and accordingly, we do not express such an opinion. The results
o f our tests disclosed no instances of noncomp liance that are required to be reported
under Governmen t Auditing S tandards .
Inte rna l Cont ro l Over F inanc ial ReDort ino
In p lann ing and perform ing our audit , we considered the Foundat ion 's interns]
control over financial reporting in order to determine OUr auditing procedures for the
purpose of expressing our op inion on the financial statements and not to prov ide
assurance on the internal control over financial reporting . Our considerat ion of the
internal contro l over financial reporting would not necessarily disclose all m atters in
the internal control over financial report ing that m ight be m aterial weaknesses . A
m aterial weaknesses is a condit ion in which the design or operat ion o f one or more o f
the internal control components does not reduce to a re latively low level the risk that
m isstatements in amount s that wou ld be material in relat ion to the financial statements
being audited may occur and not be detected within a timely period by employees in the
normal course of perform ing their assigned functions . We noted no m atters involving the
intern al control over financial reporting and its operation that we consider to be
m aterial weaknesses .
mnittee ,
This report is intended solely for the informat ion and use o f the aud it cor
management , others within the organization and the Louisiana Legislative Auditor Office
and is not intended to be and should not be used by anyone other than these specified
parties .
Metairie , Lou isiana
Ju ly 25 , 2002
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VD. TE 660
111VETERANS BL .SUI 1 ~HERI RI A 05 504 8844 ~FAX ( 637-
TAGE PLAZA ~METAI E,L 700 ~( )637- 604) 0656
~ TE 07 228) 2681~FAX ( 697-
366COURTHOUSE ROAD' SUI B ~GULFPORT,MS 395 ~( 897- v. gmann-~z t~om
,226) 2666 ~w~, we ca e .
FORE I K IDS FOUNDAT ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
SCHEDULE OF F IND ING S
J une 30 , 2002
Section I Summ ary o f Auditors ' Report
A) Financial Statements
Type of auditors ' report issued : Unqualified
Internal Control over financial report ing :
Material weakness (es) identified Ye s X No
Reportable condition (s) identified that are
not considered to be m aterial weakness Ye s X No
Noncompliance m aterial to financial statements
noted ? Ye s X No
B) Federal Awards
For the year ended June 30 , 2002 , Fore ! Kids Foundation, Inc., d/b/a Compaq
Classic of New Orleans was not subject to OMB C ircular A -133 Audits of States ,
Lo ca l G overnm ent and Non-Pro fit O raan izat ion s
Section II Financial Statement Findings
There were no financial statement findings required to be reported for the year
e nded June 30 , 2002 .
Section III Federal Award Findings and Questioned Costs
Not applicable
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14-
R E PO R T S B Y M AN A G EM EN T
FORE ! K IDS FOUNDAT ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
SCHEDULE O F PR IOR YEAR F IND ING S
June 30 , 2002
Section I Internal Control and Comp liance Material to the General Purp ose Financial
Statem ent s
For the year ended Juno 30 , 2001, there were no internal contro l or comp l~ance
issues reported or noted .
Section II Internal Contro l and Comp liance Material to Federal Award s
For the year ended June 30, 2001 Fore ! Kids Foundation, Inc. d/b/a Compaq
3
Classic of New Orleans was not subject to OMS A-13~ Audits of State Local
Government and Non-Profit Oroanizat ions .
Section III M anagement L etter
A m anagement letter was not issued in connection w ith the audit of the year
ended June 30 , 2001 .
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15-
FORE ! K ID S FOUNDAT ION , INC .
d/b/a COMPAQ CLASSIC OF NEW ORLEANS
MANAGEMENT 'S CORRECTIVE A CT ION PLAN
June 30 , 2002
Section I Internal Control and Comp liance M aterial to the General Purpo se Financial
St at em ent s
For the year ended June 30 , 2002 there were no internal contro l or comp liance
issues reported or noted .
Section II Internal Control and Comp liance Matezial to Federal Awards
For the year ended June 30 , 2002 Fore ! K ids Foundation, Inc., d/b/a Compaq
Classic of New Orleans was not subject to OMB Circu lar A-133 , Aud it s o f State~
Local Government and Non-Profit Oraanizatlons
Section III M anagement L etter
A m anagement letter was not issued in connection w ith tbe audit of the year
ended June 30 , 2002 .
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16-
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