dba COMPAQ CLASSIC OF NEW ORLEANS

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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
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                                     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



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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 .

                                                     -
                                                         2-
                                            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 .

                                                             -   3-
                                  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

                                                    -
                                                        4-
                                 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 .




                                               -   5-
                              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.




                                               -   6-
                                      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 .



                                                       -   7-
                             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.




                                            -
                                                8-
                                   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




                                                     -   9-
                              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




                                              -
                                                  i0-
                                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




                                              -
                                                  21-
                                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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            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




                                             -
                                                 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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