Financial Report

(Reviewed)

Rivertown Repertory Theatre Guild, Inc.

June 30, 2005

Under provisions of state law, this report is a publicdocument. A copy of the report has been submitted tothe entity and other appropriate public officials. Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish cierk of court.

Release Date

TABLE OF CONTENTS

Rivertown Repertory Theatre Guild, Inc.

June 30,2005

PageExhibits Number

Accountant's Review Report 1

Exhibits

Statement of Assets, Liabilities, and Net Assets -Modified Cash Basis A 2

Statement of Revenues, Expenses, and Changes in NetAssets - Modified Cash Basis B 3

Statement of Functional Expenses - Modified Cash Basis C 4

Notes to Financial Statements D 5-9

Special Report of Certified Public Accountants

Independent Accountant's Report on ApplyingAgreed-Upon Procedures 10-12

Schedule of Findings and Responses 13-14

Reports by Management

Louisiana Attestation Questionnaire 15-16

Management's Corrective Action Plan 17

B o u r g e o i s B e n n e t t

ACCOUNTANT'S REVIEW REPORT

To the Board of Directors,Rivertown Repertory Theatre Guild, Inc.,

Kenner, Louisiana.

We have reviewed the accompanying statement of assets, liabilities, and net assets -modified cash basis of Rivertown Repertory Theatre Guild, Inc. (the Guild) as of June 30,2005, andthe related statements of revenues, expenses, and changes in nets assets - modified cash basis andfunctional expenses - modified cash basis for the year then ended, in accordance with Statements onStandards for Accounting and Review Services issued by the American Institute of Certified PublicAccountants. All information included in these financial statements is the representation of RivertownRepertory Theatre Guild, Inc..

A review consists principally of inquires of company personnel and analyticalprocedures applied to financial data. It is substantially less in scope than an audit in accordance withgenerally accepted auditing standards, the objective of which is the expression of an opinion regardingthe financial statements taken as a whole. Accordingly, we do not express such an opinion.

As described in Note Ic, these financial statements were prepared on a modified cashbasis of accounting which is a comprehensive basis of accounting other than accounting principlesgenerally accepted in the United State of America. Consequently, certain revenues and related assetsare recognized when received rather than when earned and certain expenses are recognized when paidrather than when the obligation is incurred.

Based on our review, we are not aware of any material modifications that should bemade to the accompanying financial statements in order for them to be in conformity with themodified cash basis of accounting, as described in Note l(c).

In accordance with the Louisiana Governmental Audit Guide and the provisions of statelaw, we have issued a report dated September 10,2007, on the results of our agreed-upon procedures.

Uc.oCertified Public Accountants.

New Orleans, Louisiana,September 10, 2007.

1340 West Tunnel Blvd., Suite 430PO. Box 2168Houma,LA7036l-2l68Phone (985) 868-0139Fax (985) 879-1949

Certified PublicAccountants | Consultants

A Limited Liability Company

R O. Box 60600New Orleans, LA 70160-0600Heritage Plaza, 17th FloorPhone (504) 831 -4949Fax (504) 833-9093

507-D St. Philip StreetPO.Box 1205Thibodaux,LA70302-l205Phone (985) 447-5243

Exhibit A

STATEMENT OF ASSETS, LIABILITIES. AND NET ASSETSMODIFIED CASH BASIS

Rivertown Repertory Theatre Guild, Inc.

June 30, 2005

See Accountant's Review Report

AssetsCash and cash equivalents $ 323,278Property and equipment, net of accumulated depreciation 8,209

Total assets $ 331,487

LiabilitiesPayroll taxes withheld $ 4,278

Net Assets (Unrestricted) 327,209

Total liabilities and net assets $ 331,487

See notes to financial statements.

Exhibit B

STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETS - MODIFIED CASH BASIS

Rivertown Repertory Theatre Guild, Inc.

For the year ended June 30,2005

See Accountant's Review Report

Operating Revenue:AdmissionsBuffets, rental and other supportIn-kind supportInterest income

Total operating revenue

Operating Expenses:Production costs

Supporting Services:Management and general

Total operating expenses and supporting services

Loss from operations

Other Support:ContributionsGovernment supportGrants - corporate and other

Total other support

Increase in Net Assets

Net Assets (Unrestricted)Beginning of year

End of year

$ 286,12191,441

250,0651,389

629,016

481,146

200,197

681,343

(52,327)

22,38016,70030,625

69,705

17,378

309,831

$ 327,209

See notes to financial statements.

Exhibit C

STATEMENT OF FUNCTIONAL EXPENSES - MODIFIED CASH BASIS

Rivertown Repertory Theatre Guild, Inc.

For the year ended June 30, 2005

See Accountant's

Salaries, payroll taxes andemployee benefits

AdvertisingArtists and professional feesCateringDepreciationEquipment rental and repairsInsuranceMiscellaneousOccupancyPostage and shippingPrinting and productionProductionProfessional - legal and accounting feesSuppliesUtilities and telephone

Total expenses

See notes to financial statements.

4

Review Report

ProductionCosts

$ 79,108100

134,56845,651

2,5362,2268,9195,183

123,750252

5,86642,214

-3,246

27,527

$ 481,146

Managementand General

$ 91,427-

23,600-

846-

9,7437,633

41,25084

--

15,3561,0839,175

$ 200,197

Totals

$ 170,535100

158,16845,651

3,3822,226

18,66212,816

165,000336

5,86642,21415,3564,329

36,702

$ 681,343

Exhibit D

NOTES TO FINANCIAL STATEMENTS

Rivertown Repertory Theatre Guild, Inc.

June 30, 2005

Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Nature of Activities

Rivertown Repertory Theatre Guild, Inc. (the Guild) is a non-profit organizationoperating in Kenner, Louisiana. Its stated purpose is to provide community theatrefor patrons of the arts in Jefferson Parish, Louisiana. The Guild was established toprovide the highest quality theatrical productions in a season of plays and musicalsthat foster a high quality of cultural life in the community, maximizing the impact ofart for all patrons and fostering an understanding of arts value with futuregenerations through education workshops, while providing a cultural outlet forserious artists who desire to further develop their discipline.

b. Organization and Income Taxes

The Guild is exempt from federal income tax under Section 501(c) (3) of theInternal Revenue Code and from state income tax under Section 121(5) of Title 47of the Louisiana Revised Statutes of 1950.

c. Basis of Accounting

The accompanying financial statements of the Guild have been prepared on the basisof cash receipts and disbursements, with the following exceptions:

• Furniture and equipment are capitalized and depreciated as described inNote If.

• In-kind support and revenue, and related expense are recorded asdescribed in Note 3.

Exhibit D(Continued)

Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

c. Basis of Accounting (Continued)

The modified cash basis of accounting differs from generally accepted accountingprinciples primarily because the Guild has not recognized contributions receivable,payables for salaries and wages, payroll taxes and other expenses, and deferredrevenue for payments received for tickets for next year's season and their relatedeffects on the change in net assets.

d. Financial Statement Presentation

Financial statement presentation follows the recommendations of the FinancialAccounting Standards Board in its Statement of Financial Accounting Standards(SFAS) No. 117, "Financial Statements for Not-For-Profit Organizations". UnderSFAS No. 117, the reporting of net assets, revenues and expenses are required to beclassified as follows: unrestricted, temporarily restricted or permanently restricted,based on the existence or absence of donor-imposed restrictions. Managementconsiders all activities and net assets to be unrestricted.

The Guild's program expenses are shown as production costs in the accompanyingStatement of Revenue's, Expenses, and Changes in Net Assets. - Modified CashBasis

e. Use of Estimates

The preparation of financial statements in accordance with the modified cash basisof accounting includes the use of management's estimates that affect the financialstatements. Accordingly, actual results could differ from those estimates.

f. Property and Equipment

Property and equipment are recorded at cost when purchased or fair market value onthe date of donation. Repairs and maintenance are charged to expense as incurred;major renewals and improvements are capitalized. Depreciation is computed usingthe straight-line method over the estimated useful lives of the assets, which aregenerally 5 to 7 years. The cost and accumulated depreciation of assets sold orretired are removed from the respective accounts and any resulting gain or loss isreflected in the change in net assets.

Exhibit D(Continued)

Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

g. Admissions

Ticket sales received prior to the fiscal year in which the performances will be heldare recorded as revenue under the modified cash method of accounting. At June 30,2005, the amount of such ticket sales totaled $213,909.

h. Contributions

In accordance with SFAS No. 116, "Accounting for Contributions Received andContributions Made", contributions received are recorded as unrestricted,temporarily restricted, or permanently restricted support depending on the existenceand/or nature of any donor restrictions. Support that is restricted by the donor isreported as an increase in unrestricted net assets if the restriction expires in thereporting period in which the support is recognized. All other donor-restrictedsupport is reported as an increase in temporarily or permanently restricted net assetsdepending on the natures of the restriction. When a restriction expires, temporarilyrestricted net assets are reclassified to unrestricted net assets. Under SFAS No. 116,time restricted contribution are required to be reported as temporarily restrictedsupport and are then reclassified to unrestricted net assets upon expiration of thetime restriction.

The Guild did not receive any restricted contributions during the year ended June 30,2005.

i. Allocated Expenses

The costs of providing the programs and other activities are summarized in theStatement of Functional Expenses - Modified Cash Basis. Certain expenses havebeen allocated among the programs and supporting services based on management'sestimates of the costs incurred.

j. In-kind Support

The Guild reports in-kind support at its estimated fair market value on the date ofdonation. In-kind support consists primarily of the use of donated facilities andconsulting services.

Exhibit D(Continued)

Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

k. Cash and Cash Equivalents

The Guild considers money market funds and short-term investments, with anoriginal maturity of less than three months from the acquisition date to be cashequivalents.

Note 2 - PROPERTY AND EQUIPMENT

Property and equipment at June 30, 2005 are summarized as follows:

Office, kitchen and other $ 45,656Costume sewing equipment 7,500Theatre equipment 14,641Furniture 5,000

72,797Less accumulated depreciation 64,588

Total $ 8,209

Depreciation expense for the year ended June 30, 2005 was $3,382.

The Guild also owns theatre-use items which have been created in the normal course ofoperations or donated, but have not been recorded as property and equipment. Sets, propsand costumes are charged against current operations as they are constructed. Once aproduction season has closed, the reusable sets, props and costumes are stored by the Guildfor possible future use or rental. Many of these items are antiques and have significantreplacement or resale values. As of June 30,2005, the Guild's management estimates thatthe current value of unrecorded theater-use items is approximately $224,100.

Note 3 - IN-KIND SUPPORT AND SERVICES

Significant services, materials and facilities were donated to the Guild by varioussupporters, principally the City of Kenner. These donations have been recorded as revenuesand expenses.

Exhibit D(Continued)

Note 3 - IN-KIND SUPPORT AND SERVICES (Continued)

The fair market values of the above referenced donations, which have been recorded as in-kind support, is comprised of the following:

Donated use of facilities $ 165,000Utilities 18,793Communications 15,464Supplies 3,608

Total - City of Kenner 202,865

Marketing services 47,200

Total $ 250,065

Approximately 10,878 donated service hours for production talent and box officeoperations were received during the year ended June 30, 2005, but were not recognized inthe financial statements because they did not meet the criteria for recognition under SFASNo. 116, "Accounting For Contributions Received and Contributions Made".

Note 4- RELATED PARTIES

During 2005, the Guild paid approximately $36,200 for marketing services and $7,600 forproduction services to individual related to the executive director, and $300 to a companyowned by the executive director for production services. The marketing services werediscounted by $47,200, which has been recorded as in-kind support and expenses (Note 3).

Note 5 - CONCENTRATION OF CREDIT RISK

The Guild maintains its cash accounts in two financial institutions where the account isinsured by the Federal Deposit Insurance Corporation up to $100,000 per institution. AtJune 30, 2005, the Guild had approximately $122,000 in excess of the insured limit.

SPECIAL REPORT OF CERTIFIED PUBLIC ACCOUNTANTS

B o u r g e o i s B e n n e t t

INDEPENDENT ACCOUNTANT'S REPORTON APPLYING AGREED-UPON PROCEDURES

To the Board of Directors,Rivertown Repertory Theatre Guild, Inc.

Kenner, Louisiana.

We have performed the procedures included in the Louisiana Government Audit Guide andenumerated below, which were agreed to by the management of Rivertown Repertory Theatre Guild,Inc. and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluatingmanagement's assertions about the Guild's compliance with certain laws and regulations during theyear ended June 30, 2005 included in the accompanying Louisiana Attestation Questionnaire, Thisagreed-upon procedures engagement was performed in accordance with standards established by theAmerican Institute of Certified Public Accountants. The sufficiency of these procedures is solely theresponsibility of the specified users of the report. Consequently, we make no representation regardingthe sufficiency of the procedures described below either for the purpose for which this report has beenrequested or for any other purpose.

Federal, State, and Local Awards

1. We determined the amount of federal, state and local award expenditures for the fiscalyear, by grant and grant year.

Accounting and Reporting

2. For each federal, state, and local award (for the year ended June 30, 2005, the onlygovernmental support received was from City of Kenner), we randomly select sixdisbursements from each award administered during the period under examination,provided that no more than 30 disbursements in total will be selected and:

10

1340 West Tunnel Blvd., Suite 430P O. Box 2168Houma,LA7036l-2l68Phone (985) 868-0139Fax (985) 879-1949

Certified PublicAccountants | Consultants

A Limited Liability Company

P. O. Box 60600New Orleans, LA 70160-0600Heritage Plaza, 17th FloorPhone (504) 831-4949Fax (504) 833-9093

507-D St. Philip StreetP.O. Box 1205Thibodaux, LA 70302-1205Phone (985) 447-5243

a) Trace payments to supporting documentation as to proper amount and payee;

We examined supporting documentation for each of the selected disbursementsand found that the payments were for the proper amount and made to the correctpayee.

b) Determine if payments were properly coded to the correct general ledger account;

All payments were properly coded to the correct general ledger account.

c) Determine whether the payment received approval from proper authorities, and;

Each of the selected disbursements was approved by the Executive Director.

d) For federal awards, if applicable, determine whether the disbursements comply withthe applicable specific program compliance requirements summarized in theCompliance Supplement (or contained in the grant agreement, if the program is notincluded in the Compliance Supplement) and for state and local awards, determinewhether the disbursements comply with the grant agreement, relating to:

• Activities allowed or unallowed• Eligibility• Reporting

All payments complied with specific program compliance requirements andgrant agreements.

Open Meetings

3. Determine if open meeting law LSA-RS 42:1 through 4:12 is applicable and if therequired procedures were performed.

The public meeting law is not applicable.

Budget

4. For all grants exceeding five thousand dollars, determine that each applicable federal,state, or local grantor agency/agencies was provided a comprehensive budget of thosegrants that included the purpose and duration, and for state grants included specificgoals and objectives and measures of performance.

The agency was not provided with the appropriate budget, specific goals andobjectives, and measures of performance as they were not required by theagency.

11

Prior Comments

5. Our prior year report, dated September 10, 2007, did not include any comments orunresolved matters.

We were not engaged to and did not perform an examination, the objective of which would bethe expression of an opinion on management's assertions. Accordingly, we do not express such anopinion. Had we performed additional procedures, other matters might have come to our attention thatwould have been reported to you.

This report is intended solely for the use of the Guild and the Legislative Auditor, State ofLouisiana, and should not be used by those who have not agreed to the procedures and takenresponsibility for the sufficiency of the procedures for their purposes. Under Louisiana RevisedStatute 24:513, this report is distributed by the Legislative Auditor as a public document.

)Certified Public Accountants.

New Orleans, Louisiana,September 10,2007.

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SCHEDULE OF FINDINGS AND RESPONSES

Rivertown Repertory Theatre Guild, Inc.

For the year ended June 30, 2005

Section I - Summary of Accountant's Review Report

a) Financial Statements

Type of review report issued: unqualified

Internal control over financial reporting:

• Material weakness(es) identified? yes X no• Reportable condition(s) identified that are not

considered to be material weakness yes X no

Noncompliance material to financial statements noted? X yes no

b) Federal Awards

Rivertown Repertory Theatre Guild, Inc. did not receive federal awards in excess of$500,000 during the year ended June 30, 2005 and, therefore, is exempt from the auditrequirements under the Single Audit Act and OMB Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations.

Section II - Financial Statement Findings

Internal Control Over Financial Reporting

• No financial statement findings were noted during the review of the financial statementsfor the year ended June 30, 2005.

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(Continued)

Section II - Financial Statement Findings (Continued)

Compliance and Other Matters

05-01 Reviewed Financial Statements Were Not Timely Filed

Criteria - Louisiana state law requires all governmental and quasi-governmentalentities to have review engagements completed with six months of the close of theRivertown Repertory Theatre Guild, Inc.'s year end.

Condition - The required reviewed financial statements were not filed on a timely basiswith the Legislative Auditor for the State of Louisiana in correlation with the filingrequirements of Louisiana State law.

Questioned Costs - None noted.

Context - Systematic, the required reviewed financial statements were not filed timelyfor three years.

Effect - Not filing timely reports could result in a loss of funding or disqualificationfrom future funding.

Cause - Filing deadlines were not honored due to management's lack of knowledge ofthe filing and reporting requirements.

Recommendation - In the future, steps need to be taken to ensure that the requiredfinancial statements are filed in a timely manner.

Views of responsible officials of the auditee when there is a disagreement with thefinding, to the extent practical - None.

Section III - Federal Award Findings and Questioned Costs

Not applicable.

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REPORTS BY MANAGEMENT

LOUISIANA ATTESTATION QUESTIONNAIRE(For Attestation Engagements of Quasi-public Entities)

6^^001 (Date Transmitted)

Rivertown Repertory Theatre Guild. Inc325 Minor StreetKennerLA 70062Bourgeois Bennett. LLC. 111 Veterans Blvd. 17" Floor. Metairie. LA 70005 (Auditors)

In connection with your review of our financial statements as of June 30, 2005, and for the periodthen ended, and as required by Louisiana Revised Statute 24:513 and the LouisianaGovernmental Audit Guide, we make the following representations to you. We accept fullresponsibility for our compliance with the following laws and regulation and the internal controlsover compliance with such laws and regulations. We have evaluated our compliance with thefollowing laws and regulations prior to making these representations.

These representations are based on the information available to us as of September 12, 2007.

Federal, State, and Local Awards

We have detailed for you the amount of Federal, state and local award expenditures for the fiscalyear, by grant and grant year.

Yes [X] No [ ]

All transactions relating to federal, state, and local grants have been properly recorded within ouraccounting records and reported to the appropriate state, federal, and grantor officials.

Yes [X] No [ ]

The reports filed with federal, state, and local agencies are properly supported by books oforiginal entry and supporting documentation.

Yes [X] No [ ]

We have complied with all applicable specific requirements of all federal, state, and localprograms we administer, to include matters contained in the OMB Compliance Supplement,matters contained in the grant awards, eligibility requirements, activities allowed and unallowed,and reporting and budget requirements.

Yes [X] No [ ]

Open Meetings

Our meetings, as they relate to public funds, have been posted as an open meeting as requiredby LSA-RS 42:1 through 42:12 (the open meetings law).

Yes [ ] No [ ] N/A

15

Budget

For each federal, state, and local grant we have filed with the appropriate grantor agency acomprehensive budget for those grants that included the purpose and duration, and for stategrants included specific goals and objectives and measures of performance

Yes [ X ] No [ ] N/A

Prior Year Comments

We have resolved all prior-year recommendations and/or comments.

Yes[ ] No[ ]N/AX

We have disclosed to you all known noncompliance of the foregoing laws and regulations, as wellas any contradictions to the foregoing representations. We have made available to youdocumentation relating to the federal, state, and local grants, to include the applicable laws andregulations.

We have provided you with any communications from regulatory agencies or other sourcesconcerning any possible noncompliance with the foregoing laws and regulations, including anycommunications received between the end of the period under examination and the issuance ofthis report. We will also disclose to you, the Legislative Auditor, and the applicable state grantoragency/agencies any known noncompliance which may occur up to the date of your report.

Secretary *?// •*•/* 7

' 'Treasurer _ Date

President

, _

7 / ' &7 & 7 Date

16

MANAGEMENT'S CORRECTIVE ACTION PLAN

Rivertown Repertory Theatre Guild, Inc.

For the year ended June 30, 2005

Section I - Internal Control and Compliance Material to the Basic Financial Statements

05-01 Recommendation - In the future, steps needs to be taken to ensure that the requiredfinancial statements are filed in a timely manner.

Management's Response - The Guild will file the required financial statements in atimely manner in the future.

Section II - Internal Control and Compliance Material To Federal Awards

The Rivertown Repertory Theatre Guild, Inc. did not expend Federal awards in excess of$500,000 during the year ended June 30, 2005 and, therefore, is exempt from the auditrequirements under the Single Audit Act and OMB Circular A-133, Audits of States, LocalGovernment, and Non-Profit Organization.

Section III - Management Letter

A management letter was not issued in connection with the review of the financial statementsfor the year ended June 30, 2005.

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