n73 CHAFER GROUP, LTDapp1.lla.la.gov/PublicReports.nsf/F15390AF8390B9BB862579...CHAFER GROUPO LTD...

CHAFER G R O U P , L T D n73

TIPITINA'S FOUNDATION, INC.

FINANCIAL STATEMENTS (COMPILATION REPORT)

YEAR ENDED DECEMBER 31,2011

cocument Acopy ofthe 'J^^^^ l^^^^ l^^^x^. The •he entity and other ^PP °P"f;^ Pg" ° ',°3Uhe Baton

Release Date.

CERTIFflED PUBLIC A C C O U N T A N T S A lUMlTED LIABILITY COMPANY

TIPITINA'S FOUNDATION, INC. TABLE OF CONTENTS

DECEMBER 31,2011

I. Independent Accountants' Compilation Report

FINANCIAL STATEMENTS

n. Statement of Financial Position - Assets

JR. Statement of Financial Position - Liabilities and Net Assets

IV. Statements of Activities and Changes in Net Assets

V. Statement of Functional Expenses - Year Ended December 31,2011

VI. Statement of Cash Flows

vn . Notes to Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION

Vm. Schedule of Findings and Responses

DC. Schedule ofPrior Year Findings

SCHAFER GROUP. LTD. CERTIFIED PUBLIC ACCOUNTANTS

A LIMfTED LL^BILm' COMP.'U'IT

CHAFER G R O U P O L T D Kr rnUm T. 5cl.Afnr. CPA. MS LouisJ.Wcllfl.CPA Pflul A . Huner, CPA Mclo MatuB-Tork, C P A Carlfl J. Eflfoii, C P A LacejA-Sliipp, C P A Caryl T W i o t , CPA

70i Aurora Ave. Suiic A

Mcfairic, LA 70005 50-^-857-6575

FAX 60-^-8o7-6570

• 55 Girod Street Suite B

Manileville, LA 70^^8 985-626-^066

FAX 985-626.-1166

INDEPENDENT ACCOUNTANTS* COMPILATION REPORT

To the Board of Directors of Tipitina's Foundation, Lie. New Orleans, LA

We have compiled the accompanying statement of financial position of Tipitina's Foundation, Inc. (a Louisiana Not-For-Profit Corporation) ("Foundation") as of December 31, 2011, and the related statements of activities and changes in net assets, functional expenses, and cash flows fbr the year then ended. We have not audited or reviewed tlie accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America.

Management is responsible for the preparation and fair presentation of the financial statements in accordance witli accounting principles generally accepted in the United States of America and for <jegigping imp1f nif*ritiTig r\i\ maintaining intemal control relevant to the preparation and fair presentation ofthe financial statements.

Our responsibility is to conduct the compilation m accordance with Statements on Standards for Accounting and Review Services issued by tiie American Institute of Certified PubUc Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. During our compilation, we did become aware of a departure from accountmg principles generally accepted in the United States of America that is described in the following paragraph.

CERTIFIED PUBLIC ACCOUNTANTS A LIMITED LUBILITY COMR- Vl-

As discussed in Note IG, the Foundation has expensed the cost of merchandise. In accordance with accounting principles generally accepted in the United States of America, the cost of merchandise should be capitalized when purchased and then expensed when sold using an appropriate inventory method. The effects on the financial statements of that departure fi-om U.S. generally accepted accounting principles are not reasonably determinable.

This report is intended solely for the information and use of management, others within the Foundation, and the Legislative Auditor and is not mtended to be and should not be used by anyone other than these specified parties.

Schafer Group, LTD., LLC

Kemion T. Schafer, CPA Managing Member

March 21, 2012

SCHAFER GROUP, LTD. CERTIFIED PUBLIC ACCOUNTANTS

A LIMFTED LIABILITi' COMPANY'

n. TIPITINA'S FOUNDATION, INC.

STATEMENT OF FINANCIAL POSITION DECEMBER 31,2011

ASSETS

Current Assets Cash Contributions Receivable Accounts Receivable Recorded Music Inventory Instruments Inventory

Total Current Assets

Property and Equipment Building Fumiture and Equipment Leasehold Improvements

Total Property and Equipment Less: Accumulated Depreciation

Property and Equipment - Net

TOTAL ASSETS

s 11,233 9,365

28,924 43,340 38.768

131.630

121.973 81,339

277.636 480,948 (127.096)

353.852

$ 485,482

See Independent Accountants' Compilation Report and Notes to the Financial Statements. "SCIiAFERGROUP, LTD.

CERTIFIED PUBLIC ACCOUNTANTS A LLAHTED LLA^ILITT COMPAm'

m. TIPITINA'S FOUNDATION, INC. STATEMENT OF FINANCIAL POSITION

DECEMBER 31,2011

LIABiLrnES A>JD NET ASSETS

Current Liabilities Accounts Payable Allowance for Estimated CD Returns (Note 7) Accrued Payroll and Related Expenses

Total Current Liabihdes

Total Liabilities

Net Assets Unrestricted Temporarily Restricted

Total Net Assets

TOTAL LLXBILITIES AND NET ASSETS

$ 50,948 8,352 7.617

66.917

66.917

403,461 15.104

418.565

S 485,482

See Independent Accountants* CompUaloii J ^ o r t and^l^ to the Financial Statements.

CERTIFIED PUBLIC ACCOUNTANTS A LIMITED LIABILITY- COMPANT

IV. TIPITINA'S FOUNDATION, INC.

STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEAR ENDED DECEMBER 31, 2011

UNRESTRICTED NET ASSETS

Unrestricted Revenue | Contributions and Grants $ 836,972 [ Public Funds 9,375 [ Program Income 6,062 1 CD Revenue - Goin' Home, net of Allowance (Note 7) 10,730 j Other Income -Z23_

Total Unrestricted Revenue 863,932

Net Assets Released from Restrictions Restrictions Satisfied by Payments 355,138 |

i Total Unrestricted Revenues and Other Support 1,219,070 |

I Expenses | Program Services: j

Instruments Program 134,993 j Internship Program 130,972 \ Music Office Co-op 343,552 Community 50,710 CD Expenditures 160_ I

1 Total Program Expenses 660,387 I

..Supporting,.Services: _ _ _ _ _ ,j General and Administrative Expenses 120,745 1 Fundraising 44,013

j

Total Supporting Services 164,758 j

Total Expenses 825,145 | I

Other Income (Expenses') j Other Income on CD - Goin' Home (Note 7) 135,631

i Total Otiier Income (Expenses) 135,631 j

> Increase (Decrease) m Unrestricted Assets ^ 5?.9.556 [

See Independent Accountants' Compilation Report and Notes to the Financial Statements.


A LIMITED LL^ILITi' COMPANl'

IV. TIPITINA'S FOUNDATION, INC.

STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS YEAR ENDED DECEMBER 31,2011

TEMPORARILY RESTRICTED NET ASSETS

Temporarily Restricted Revenue Contributions and Grants

Total Temporarily Restricted Revenue

Net Assets Released fi-om Restrictions Restrictions Satisfied by Payments

Increase (Decrease) in Temporarily Restricted Assets

Increase (Decrease) in Net Assets

Begmning Net Assets

Increase (Decrease) in Net Assets

Ending Net Assets

15,104

15.104

(355.138)

,S

s_„.

s

$

(MO.()M-\

189.S7?.

229,043

189.522

418,565


SCIL-SLFER GROLTP. LTD. CERTIFIED PUBLIC ACCOUNTANTS

A LIMITED LL^BILm' COMPANY'

TIPITINA'S FOUNDATION, INC.

STATEMENT OF FUNCTIONAL EXPENSES


Salaries Payroll Taxes

Total Salaries and Related Expenses

Consulting and Contract Labor Facilities Rent Instructors Instruments and Other

Direct Assistance Insurance Merchandise Miscellaneous Postage Printing and Promotions Professional Services Repairs and Mamtenance Security Supplies and Office Expense Taxes Telephone and Internet

Travel Utilities - -Events and Seminars Expenses

Total Expense Before CD Expenditures and Depreciation

Other Total CD Expenditures

Depreciation

Total Expenses

Program Services

$ 220,798 18,050

238,848

27,646 129,900 34,755

61,320 32,365

-

2,750 -

5,648 -

9,762 2,203 5,548

797 32,745

15,105 - - 27^124

33,711

660,227

160 160

-

^ - ^ ^

SuoDortins Services General and

Administrative

$ 29,696 2,411

32,107

2,431 6,000

-

-

4,009 24,965

1,759 387

1,484 3,907

--

3,862 -

5,069

788 1,608--

-

88,376

-

-

32,369

1 .. 120,745^

Fundraising

$ 7,549 580

8,129

2,431 --

1,000 -

24,966 -

1,052 637

4,356 --

200 -

996

86 --

43,853

160 160

-

Total !

S 258.043 21.041 j

279,084 1 i

32,508 135,900 j 34,755 1

1 62.320 36,374 49,931 1 4,509 i 1,439 1 7,769 [ 8,263 i 9.762 i 2,203 ! 9,610 (

797 38,810 i 15.979 1 28,732 33.711

7 ?

792,456 i

320 320

32,369 i 1 i

See Independent Accoimtants' Compilation Report and Notes to the Financial Statements.


A LIMITED LLAJBlLiri' COMPANY'

VI. TIPITINA'S FOUNDATION, INC. STATEMENT OF CASH FLOWS


CASH FLOWS FROM OPERATING ACTiyiTIES Increase (Decrease) in Net Assets $ 189,522 Non Cash Items Included in Increase (Decrease) m Net Assets:

Depreciation 32,369 Instruments Inventory (37,768)

Decrease (Increase) in Current Assets: Contributions Receivable (3,840) Accounts Receivable, Net of Allowance (121,911) Recorded Music Inventory 1,463

Increase (Decrease) in Current Liabilities: Accounts Payable 17,838 Accrued Payroll and Related Expense (1,675) Accrued Royalties f24.Q94^

Net Cash Provided By (Used in) Operating Activities 51,904

CASH FLOWS FROM INVESTING ACTZVITIES Purchase of Assets f50.590')

Net Cash Provided by (Used in) Investing Activities (50,590)

CASH FLOWS FROM FINANCING ACnVITIES

Net Cash Provided by (Used m) Financmg Activities _ 2 -

Net Increase (Decrease) in Cash 1,314

Cash, Beginning of Year 9,919

Cash, End of Year $ 11.233

SUPPLEMENTAL DISCLOSURES ON CASH FLOW INFORMATION Cash Paid During the Year For:

Interest $ Income Taxes J ,



A L1M1TEI> LIVBILIT^^ CO>JPAK*i'

vn. TIPITINA'S FOUNDATION INC

NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2011

Notel. NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Nature of Activities

The Tipitina's Foundation, hic. (the Foundation) is chartered in the State of Louisiana as a non-profit corporation. The Foundation is dedicated to providing High School Music Programs with instruments, giving music students a broader exposure to the music business, and raising tiie awareness of Louisiana music as a cultural resource. The Foundation accomplishes this through its programs including: the Instruments Programs, which include the Instruments A' Comin' fundraiser to purchase mstruments for schools and the instrument recycUng project, the Tipititna's Internship Program (T.I.P.), Music Office Co-Op Centers (Co-Op), and Community Services.

All the activities are carried out through public contributions, grants, and monthly membership fees for use of die Co-Op Centers.

B. Basis of Accounting

The accompanymg financial statements have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables and other liabilities

C. Financial Statement Presentation

Financial statement presentation follows die recommendations ofthe Financial Accounting Standards Board (FASB) Accoimting Standards Codification 958, Not-far-Profit Entities. Under FASB ASC 958, die Foundation is required to report mfonnation regarding its financial position and activities accordhig to three classes of net assets: imrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Unrestricted Net Assets - Net assets that are neither permanently restricted nor temporarily restricted by donor-imposed stipulations. The only limits on the use of unrestricted net assets are the broad hmits resulting fi-om the following:

• The nature ofthe not-for-profit; « The environment in which the not-for-profit operates; • The purpose specified in the not-for-profit's articles of mcorporation or

bylaws; and


A LIMITED LL^ILITi" COMPAKi'

vn. TIPITINA'S FOUNDATION INC.


« limits resultmg fi-om contractual agreements with supphers, creditors, and others entered into by the not-for-profit in the course of its business.

Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that eitiier expire by passage of time or can be fiilfilled and removed by actions ofthe not-for-profit pursuant to those stipulations.

Permanentiy Restricted Net Assets -Net Assets subject to donor-imposed stipulations tiiat neither expire by passage of tune nor can be fulfilled or otherwise removed by actions ofthe not-for-profit.

D. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certam reported amounts and disclosures. Accordingly, actual results could differ fi:om those estimates.

E. Cash and Cash Equivalents

For the purpose of cash flows, the Foundation considers all imrestricted, highly hquid investments purchased witii an original maturity of three months or less to be cash equivalents.

The Foundation had no cash equivalents at December 31,2011.

F. Contributions and Accounts Receivable

The Foundation considers all Contributions Receivable to be fully collectible. Accordingly, there was no allowance for doubtful accoimts recorded.

Accounts Receivable consists of balances due fix)m Welk Music Group relating to the CD entitled "Gom' Home: A Tribute to Fats Domino". (See Note 7)

G. Recorded Music/Instruments Inventory and Merchandise

Inventory, which consists of recorded music and instruments, are stated at the lower of cost or market, with cost determined on an average cost basis and market based on the lower of replacement cost or realizable value.

Donated instruments, if applicable, are valued at the estimated fau* value at the date of donation.


A LIMITED LLAJBILIT!)' COMPANY'



Management has elected to expense the cost of merchandise when purchased. In accordance with accountmg principles generally accepted in the United States of America, the cost of merchandise should be capitalized when purchased and then expensed when sold using an appropriate inventory method. The effects of tius departure have not been determined.

H. Property and Equipment

Property and Equipment purchases are recorded and carried at cost. Additions, improvements, and betterments to property and equipment in excess of $500 are capitalized. Depreciation is computed on the straight-line method over the following estimated useful fives:

Building 39 year Fumiture and Equipment 5-7 year Leasehold Improvements 15 year

Depreciation expense for the year ended December 31,2011 was $32,369.

Donations of property and equipment are recorded as contributions at tiieir estimated fair value at the date of donation. Such donations are recorded as increases in unrestricted net assets unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding thek use are reported as restricted contributions. Absent donor stipulations regarding how long those donated assets must be maintained, die Foundation reports expirations of donor restrictions when tiie donated or acquired assets are placed in service as instructed by the donor. The Foundation reclassifies temporarily restricted net assets to unrestricted net assets at that time.

[. Restricted and Unrestricted Grants and Contributions

Grants and contributions received, including unconditional promises to give, are measured at their fair value and recorded as increases in net assets. Grants and contributions restricted by tiie donor are reported as an increase in unrestricted net assets if the restrictions expne in the reportmg period in which the grants and contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanentiyrestricted.net assets depending on the nature ofthe restrictions. When a restriction expnes, temporarily restricted net assets are reclassified to unrestricted net assets.


A LI>nTED LL\B1L1T1- COMPANIi'

http://permanentiyrestricted.net



J. Contributed Services

The Foundation receives accounting, consulting, and computer services fi-om Fountainbleau Management Services, which is affihated with the Executive Director ofthe Foundation. The services provided by Fountainbleau Management Services for the year ended December 31,2011 were estimated at $24,307.

The Foundation receives a substantial amount of services donated by its supporters in carrying out the Foundation's administration, fund-raising campaigns and program services. No amounts have been reflected in the financial statements for these services smce they do not meet the criteria for recognition under FASB ASC 958-605 (formerly SFAS No. 116, Accountingfi^r Contributions Received and Contiibiitions Made).

K. Grant Revenues

Grant revenues are recorded as they are earned, according to the provisions ofthe grant. Normally, grant revenues are eamed and received as the grant period progresses. The provisions ofthe grant determine the timing of revenue recognition. Grant expenses are recognized when incurred for a grant-related obhgation.

L. Functional Expenses

Expenses are charged to program, administrative, or fundraising based on a combination of specific identification and estimates developed by management.

M. Promotion Expenses

The Foundation expenses promotion expenditures as incurred.

N. Income Tax Status

Tlie Foundation is exempt from federal income tax under Section 501(c)(3) ofthe Intemal Revenue Code and from state mcome taxes under Section 121(5) of Title 47 ofthe Louisiana Revised Statutes of 1950. However, income from certain activities not directiy related to the Foundation's tax-exempt purpose is subject to taxation as unrelated business income. In addition, the Foundation qualified for the charitable contribution deduction under Section 170(b)(1)(A) and has been classified as an organization that is not a private foundation under Section 509(a)(2).


A LIMITED LIABrLIT^^ COMPAm'

vn. TLPITINA'S FOUNDATION INC.


Note 2. GRANT REVENUES

Grant revenue is comprised primarily of grants received under an agreement with the State of Lomsiana. For the year ended December 31,2011, grant awards received from the State of Louisiana totaled $9,375. Grant revenue consists of grant awards received during die year and any deferred revenue utilized during the year.

The $345,867 of awards received by the Foundation during the year ended December 31,2010 through a Cooperative Endeavor Agreement with the State to fund capital acquisitions was released from restriction during the year ended December 31,2011 because all requirements ofthe Cooperative Endeavor Agreement had been met and all payments satisfied.

Note 3. RESTRICTIONS ON NET ASSETS

Temporarily restricted net assets consist ofthe following; 2011

Music Office Co-Op $ Internship 120 Instruments 14.984

S 15.104

Note 4. CONCENTRATIONS OF CREDIT RISK

Tlie Foundation maintains cash balances in a non-mterest bearing account at one financial institution. Effective December 31,2011 through December31,2012, the Federal Deposit Insurance Corporation will provide unlimited deposit insurance coverage for all noninterest-bearing transaction accounts.

At December 31,2011,100% of accounts receivable was due from Welk Music Group relating to the CD entitied "Goin' Home: A Tribute to Fats Domino". (See Note 7)

Note 5. RELATED PARTY TRANSACTIONS

Related entities ofthe Executive Director of tlie Foundation contributed $152,096 of in-kind facilities usage and related facihties expenses for the year ended December 31, 2011, that are included in Contributions and Grants Revenue.

The Foundation leases on a month-to-month basis office space. New Orleans and Shreveport Co-op locations, and event facilities fijom entities related to the Executive

SCHAFER GROLT', LTD. CERTIFIED PUBLIC ACCOUNTANTS

A LIMITED LIABJLITi^ COMP.ANT

vn.

TIPITINA'S FOUNDATION INC. NOTES TO FINANCIAL STATEMENTS

DECEMBER 31,2011

Director ofthe Foundation. Rent expense on tiiese locations for the year ended December31,2011 was $119,700. (See Note 6)

Various companies related to the Executive Director ofthe Foundation pay expenses on behalf of the Foimdation. These expenses are reimbursed by the Foundation or donated by the related company. At December 31,2011, habihties for tiiese reimbursements owed to the above mentioned related parties totaled $0 and are included in accounts payable.

The Foundation receives accounting, consulting, and computer services from a company that is related to the Executive Director ofthe Foundation. The services provided by the related entity for the year ended December 31,2011 were estimated at$24,307. (SeeNotel)

An entity related to a member ofthe Board of Dfrectors donated $10,000 to the Foundation during year ended December 31,2011.

Note 6. LEASES

The Foundation leases, on a month-to-month basis. New Orleans and Shreveport Coop locations, office space, and event facihties from companies affiliated with the Executive Director of the Foundation. Rent expense for tiie New Orleans and Shreveport Co-op locations for die year ended December 31,2011 was $32,400. Rent expense for the office space and event facihties for the year ended December 31,2011 was $87,300. (See Note 5) The Foundation also leases on a month-to-month basis the Baton Rouge and Lafayette Co-op locations and otiier facihties fijom imrelated parties. Rent expense on tiiese facihties for the year ended December 31,2011 was $17,900.

Note 7. CD RECORD MASTER

In September 2007, the Foundation released a CD entitied "Gom' Home: A Tribute to Fats Domino" (CD) that contained the musical performances of a wide variety of recording artists, which included Louisiana musicians, of compositions associated with Fats Domino. The proceeds from this recording will help revitalize Fats Domino's Lower 9* Ward neighborhood and benefit the programs ofthe Foundation.

The Foundation was responsible for the recording ofthe CD. As such, the Foundation capitalized tiie cost of recording the record master, which is the master tape resulting from the performance ofthe artists. The record master was amortized over the estimated hfe ofthe record performance. As ofDecember 31,2011, the CD Record Master was fiilly amortized.

SCH.-UTER GROUP. LTD. CERTIFIED PUBLIC ACCOUNTANTS

A LIMITED LLABUJT^^ COMPAm'



Welk Music Group (Welk) was contracted to manufacture and distribute the CD. Welk collects sales made to retailers and incurs the production, distribution and promotion costs. All sales collected net of expenditures and a retainage are submitted to die Foundation. Any net proceeds not received by the Foundation have been recorded in accounts receivable. (See Notel) The sales eamed and die production, distribution, and promotion costs incurred have been reflected in the statement of activities net of estimated sales returns. The Allowance for Estnnated CD Returns is maintained to account for estimated future sales returns. Actual retums are charged against the allowance. Increases and decreases in estimated sales returns on previously recorded revenue are treated as changes in estimate. An increase in sales retums is recorded as Accrued Loss on CD on the statement of activities. A decrease m sales retums is included in Otiier Income on CD on the statement of activities. The Allowance for Estimated CD Retums as ofDecember 31,2011 was $8,352. However, it is at least reasonably possible that a change in estimate will occur in the near term.

As noted above, many ofthe artists featured on the CD were Louisiana artists. Since these Louisiana artists would not ordinarily receive such an opportunity and these artists will receive national recognition for their participation in the CD, the amortization, production, distribution, and promotion costs ofthe CD were allocated between program (50%) and fimdraising (50%) expenditures.

The amortization, production, distribution, and promotion costs ofthe CD comprise 0% of total program and fimdraising expenditures for 2011.

There are potential liabihties regarding mechanical copyright royalties that may be due to various pubHshing companies. However, it is unlikely that such royalties will be collected by the publishers. Therefore, a decrease in the accrued royalties estknate is included in Otiier Income on CD on tiie statement of activities. Accmed royalties as of December 31,2011 was $0. However, it is at least reasonably possible that a change in estimate will occur in the near term.

Note 8. COMPENSATED ABSENCES

The full-time employees ofthe Foundation are entitied to paid vacation and sick leave. The Foundation does not accrue a habihty for these absences because they caimot be reasonably estimated. The Foundation's pohcy is to recognize the cost of compensated absences when paid to employees.


A LIMITED LL^ILITi' COMPANi'


- NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2011

Note 9. SUBSEOUENT EVENTS

Management evaluated subsequent events tiirough March 21,2012, which is the date the financial statements were available to be issued.

Note 10. PER DIEM PAYMENTS TO BOARD MEMBERS

Per diem payments to board members for the year ended December 31,2011 was $0.


A LIMITED LL^BILlTi' COMPANIi'

REQUIRED SUPPLEMENTARY INFORMATION


A LIMITED LL\B!Lm' COMPANY"

X.

TIPITINA'S FOUNDATION, INC. SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED DECEMBER 31,2011

We have compiled the basic financial statements of Tipitina's Foundation, Inc. as of and for the year ended December 31,2011, and have issued our report thereon dated March 21,2012. We conducted our compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

Financial Statement Findmgs

2011-1 Expensing Merchandise when Purchased - Non Compliance

Management has elected to expense merchandise when purchased. In accordance witii accountmg principles generally accepted in the Uruted States of America, the cost of merchandise should be capitalized when purchased and then expensed when sold using an appropriate inventory method.

Management's Response We have dected to expense merchandise when purchased because it is deemed to be more efticient than capitahzing tiie merchandise when purchased.


A LIMFTED LIABILiTi' COMPANY"

XI.

TIPITINA'S FOUNDATION, INC. SCHEDULE OF PRIOR YEAR FINDINGS AND RESPONSES

FOR THE YEAR ENDED DECEMBER 31,2011

2010-1: Timely Submission of Financial Statements - Non Compliance

The audit engagement was not completed within the six months ofthe close ofthe fiscal year as required by Louisiana Revised Statute. Financial statements and records should be closed in a timely fashion to allow adequate time to complete the audit engagement.

Cun-ent Year Status: Cleared.

2010-2: Expensing Merchandise when Purchased - Non Compliance

Management has elected to expense merchandise when purchased. In accordance with accounting principles generally accepted in the United States of America, the cost of merchandise should be capitalized when purchased and then expensed when sold using an appropriate inventory method.

Current Year Status: ThefindmgrepeatedforyearendedDecember31,2011. SeeFmding 2011-1.

THIS SCHEDULE HAS BEEN PREPARED BY MANAGEMENT,

n73 CHAFER GROUP, LTDapp1.lla.la.gov/PublicReports.nsf/F15390AF8390B9BB862579...CHAFER GROUPO LTD...

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Transcript of n73 CHAFER GROUP, LTDapp1.lla.la.gov/PublicReports.nsf/F15390AF8390B9BB862579...CHAFER GROUPO LTD...