CHILDREN’S SANCTUARY, INC. 

AUDIT REPORT 

JUNE 30, 2008 

CONTENTS  

Independent auditor's report

Comparative statement of financial position

Comparative statement of activities

Statement of functional expenses for the year ended June 30, 2008

Statement of functional expenses for the year ended June 30, 2007

Comparative statement of cash flows

Notes to financial statements

Schedule of federal awards

Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards.

Report on compliance with requirements applicable to each major program and on internal control over compliance in accordance with OMB Circular A-133

Schedule of findings and questioned costs

 - David Culp & Co. LLP, Certified Public Accountants -

 

 

To the Board of Directors

Children’s Sanctuary, Inc.

Fort Wayne, Indiana

 Independent Auditor's Report

     We have audited the accompanying statements of financial position of Children’s Sanctuary, Inc. ("the Organization") as of June 30, 2008 and 2007, and the related statements of activities, functional expenses and cash flows for the years then ended.  These financial statements are the responsibility of the Organization's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

     We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of 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 misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion. 

     In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Children’s Sanctuary, Inc. as of June 30, 2008 and 2007, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. 

     In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2009, on our consideration of the Organization's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters.  The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance.  That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audits. 

     Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements.  Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

 

David Culp & Co. LLP

Certified Public Accountants 

Fort Wayne, Indiana

January 30, 2009

 

CHILDREN’S SANCTUARY, INC.

COMPARATIVE STATEMENT OF FINANCIAL POSITION

JUNE 30, 2008 AND 2007

ASSETS 

Current Assets:	2008	2007
Cash in bank – Notes 1 and 2	$  255,816	$  206,534
Cash – Restricted	27,124	13,035
Accounts receivable	441,068	841,449
Accounts receivable – Employees	7,420	-
Total current assets	731,428	1,061,018
Fixed Assets:
Land improvements	150,000	150,000
Building – Note 3	1,884,577	1,856,000
Office equipment	41,931	39,884
	2,076,508	2,045,884
Less:  Accumulated depreciation	127,767	67,707
	1,948,741	1,978,177
Land	194,000	194,000
Total fixed assets	2,142,741	2,172,177
Total assets	$2,874,169	$3,233,195
	==========	==========

 LIABILITIES AND NET ASSETS

Liabilities:
Accounts payable	$  699,525	$  747,453
Payable to other agency	-	144,060
Other liabilities	33,285	13,035
Total liabilities	732,810	904,548
Net Assets:
Unrestricted net assets	2,141,359	2,328,647
Total liabilities and net assets	$2,874,169	$3,233,195
	==========	==========

The accompanying notes are an integral part of these financial statements. 

- David Culp & Co. LLP, Certified Public Accountants -

 

CHILDREN’S SANCTUARY, INC.

COMPARATIVE STATEMENT OF ACTIVITIES

FOR THE YEARS ENDED JUNE 30, 2008 AND 2007

                                               

Support and revenue -	2008	2007
Therapeutic foster care fees	$4,223,805	$4,434,643
Contributions – Note 3	1,632	2,202,487
Other income	5,262	29,369
Total revenue and other support	4,230,699	6,666,499
Expenses and loss -
Program services	4,158,308	4,255,578
Management and general	259,679	239,640
Total expenses and loss	4,417,987	4,495,218
Change in unrestricted net assets	(187,288)	2,171,281
Unrestricted net assets, beginning of year,
as previously reported	2,328,647	44,355
Adjustment applicable to prior years,
foster parent payable – Note 5	-	113,011
Unrestricted net assets, beginning of year,
as restated	2,328,647	157,366
Unrestricted net assets, end of year	$2,141,359	$2,328,647
	==========	==========

 The accompanying notes are an integral part of these financial statements.

 - David Culp & Co. LLP, Certified Public Accountants -

CHILDREN’S SANCTUARY, INC.

STATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED JUNE 30, 2008

	Program  Services	Management And General	Total  Expenses
Salaries and wages	$    1,566	$        -	$    1,566
Employee benefits – Note 6	561	-	561
Total salaries, wages
and related expenses	2,127	-	2,127
Advertising – Note 1	-	1,881	1,881
Bank charges	-	892	892
Contract labor	28,928	-	28,928
Foster care	2,186,656	-	2,186,656
Insurance	3,489	-	3,489
Interest expense	258	-	258
Management fees – Note 7	1,847,842	182,754	2,030,596
Professional fees	8,405	-	8,405
Medical reimbursement	38,300	-	38,300
Rent	-	428	428
Training and education	5,710	-	5,710
Other expenses	36,593	13,664	50,257
Depreciation – Note 1	-	60,060	60,060
Total	$4,158,308	$  259,679	$4,417,987
	==========	==========	==========

 The accompanying notes are an integral part of these financial statements.

 - David Culp & Co. LLP, Certified Public Accountants -

- 6 -

CHILDREN’S SANCTUARY, INC.

 STATEMENT OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED JUNE 30, 2007 

 

	Program Services	Management And General	Total Expenses
Salaries and wages	$    7,347	$        -	$    7,347
Employee benefits – Note 6	-	-	-
Total salaries, wages
and related expenses	7,347	-	7,347
Bank charges	-	470	470
Contract labor	20,503	-	20,503
Foster care	2,262,125	-	2,262,125
Insurance	3,542	-	3,542
Interest expense	458	-	458
Management fees – Note 7	1,733,720	171,467	1,905,187
Professional fees	189,889	-	189,889
Medical reimbursement	24,900	-	24,900
Rent	-	50	50
Training and education	10,609	-	10,609
Other expenses	2,485	34,187	36,672
Depreciation – Note 1	-	33,466	33,466
Total	$4,255,578	$  239,640	$4,495,218
	==========	==========	==========

 The accompanying notes are an integral part of these financial statements.

 - David Culp & Co. LLP, Certified Public Accountants -

 

CHILDREN’S SANCTUARY, INC.

COMPARATIVE STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED JUNE 30, 2008 AND 2007

 

                                               

Cash flows from operating activities:	2008	2007
Change in net assets	$  (187,288)	$ 2,171,281
Adjustments to reconcile net assets to net
cash provided by operating activities -
Contributed land, building and parking lot	-	(2,200,000)
Depreciation	60,060	33,466
(Increase) Decrease in -
Accounts receivable	400,380	(  285,996)
Accounts receivable – Employees	(  7,420)	11,778
Increase (Decrease) in -
Accounts payable	( 47,928)	319,378
Other current liabilities	20,250	6,516
Payable to other agency	(144,060)	-
Net cash provided by operating
activities	93,994	56,423
Cash flows from investing activities:
Purchases of fixed assets	( 30,623)	(    2,391)
Net cash (used in) investing
activities	( 30,623)	(    2,391)
Cash flows from financing activities:
Net (payments) on line of credit	-	(    2,350)
Net cash (used in) financing
activities	-	(    2,350)
Net increase in cash and cash equivalents	63,371	51,682
Cash and cash equivalents, beginning of year	219,569	167,887
Cash and cash equivalents, end of year	$   282,940	$   219,569
	===========	===========
Cash	$   255,816	$   206,534
Cash – Restricted	27,124	13,035
	$   282,940	$   219,569
	===========	===========

 The accompanying notes are an integral part of these financial statements.

 - David Culp & Co. LLP, Certified Public Accountants -

CHILDREN’S SANCTUARY, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2008 AND 2007

 

Note 1:  Accounting policies -

 

     Nature of operations – Children’s Sanctuary, Inc. (the Organization) is a not-for-profit therapeutic foster care agency based in Fort Wayne, Indiana and serving Indiana and Ohio.  Children’s Sanctuary, Inc. is licensed as a Child Placing Agency and is a Title IV-E approved agency.  The Organization’s revenue and other support are derived principally from contracts with counties in the states in which the Organization operates to provide foster care services.   

     Method - The accounts are maintained on the accrual basis.

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

     Accounts receivable – Accounts receivable are stated at the amount contracted with and billed to government agencies.  Based on historical collection experience with these agencies, no allowances for doubtful accounts has been recorded. 

     Fixed assets - Fixed assets are stated at cost at date of acquisition or fair value at date of donation in the case of gifts. 

     Maintenance and repairs are charged against income as incurred.  Improvements which increase the useful life or productive capacity of the assets are capitalized.

 

     The Organization recognizes gain or loss on fixed assets at the time of retirement or sale prior to the end of the estimated useful life of the asset.  Cost and accumulated depreciation are removed from the asset and reserve accounts at retirement or sale.

     Contributions – Gifts of cash and other assets received without donor stipulations are reported as unrestricted revenue and net assets.  Gifts received with a donor stipulation that limits their use would be reported as temporarily or permanently restricted revenue and net assets.  When a donor stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets would be reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.  Gifts having donor stipulations which are satisfied in the period the gift is received are reported as unrestricted revenue and net assets. 

- David Culp & Co. LLP, Certified Public Accountants –

 

CHILDREN’S SANCTUARY, INC.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2008 AND 2007

Note 1:  Accounting policies (Continued) –

 

     Government grants – Support funded by grants is recognized as the Organization performs the contracted services or incurs outlays eligible for reimbursement under the grant agreements.  Grant activities and outlays are subject to audit and acceptance by the granting agency and, as a result of such audit, adjustments could be required.

     Income taxes – The Organization is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and a similar provision of state law.  However, the Organization is subject to federal income tax on any unrelated business taxable income. In addition, Children’s Sanctuary, Inc. has been determined by the Internal Revenue Service not to be a private foundation within the meaning of Section 509(a) of the Internal Revenue Code. 

     Functional allocation of expenses – The costs of supporting the various programs and other activities have been summarized on a functional basis in the statement of activities.  Certain costs have been allocated among the program and management and general categories based on the time and effort.

     Cash and cash equivalents - For purposes of the statement of cash flows, the Organization considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

     Depreciation - Depreciation charged against income for the years ended June 30, 2008 and 2007 was $60,060 and $33,466, respectively.

The Organization depreciates fixed assets over their estimated useful lives using the straight-line method.  Estimated useful lives for computing depreciation were as follows:

Assets                         Years

Building                       20-50

Office equipment         5-10

Land improvements       15

Functional allocation of expenses - The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activities.  Accordingly, certain costs have been allocated among the programs and supporting services benefited.

- David Culp & Co. LLP, Certified Public Accountants –

 

 

CHILDREN’S SANCTUARY, INC.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2008 AND 2007

 

Note 1:  Accounting policies (Continued) –

     Advertising – Advertising costs are charged to operations as incurred.  Total advertising costs expensed during the years ended June 30, 2008 and 2007 was $1,881 and $0, respectively. 

Note 2:  Concentration of credit risk - The Organization maintains its cash accounts and temporary cash investments in several local commercial banks.  Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $100,000.  Subsequent to the end of the year, the FDIC raised the guarantee amount to $250,000.  A summary of the total insured and uninsured cash balances follows:

Total cash held in local banks    $304,522

Portion insured by FDIC                 200,000

     Uninsured cash balances       $104,522

                                                             ========

 

Note 3:  Contributed building – In January 2007, the Organization was gifted the building in which it operates.  The appraised value of the land, building, and parking lot was $2,200,000.

Note 4 - Bank line of credit - The Organization has a $50,000 revolving bank line of credit that is due on demand.  At June 30, 2008 and 2007 there was $0 borrowed against this line.  Interest varies at the Bank’s prime rate plus 1.0%, which was 6.00% and 9.25% at June 30, 2008 and 2007, respectively, and is payable monthly.  The line of credit is secured by substantially all of the Organization’s assets.

 Note 5:  Prior period adjustments - At June 30, 2006, the Organization changed their method of recording the foster care liability.  The liability for May, 2006 had been paid in June, 2006 and was no longer the liability to the management service.  The management service inadvertently included the May, 2006 liability as an amount owed to them by the Organization;  therefore, a duplication of the liability.  Accordingly, the June 30, 2006 unrestricted net assets have been restated and increased by $113,011 for the reduction in foster care payments payable at June 30, 2006. 

- David Culp & Co. LLP, Certified Public Accountants –

 

 

CHILDREN’S SANCTUARY, INC. 

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 JUNE 30, 2008 AND 2007

 

Note 6:  Employee benefit plan - On July 1, 1994, the Organization adopted a tax deferred annuity plan, under Internal Revenue Code Section 403(b).  All full-time employees are eligible to contribute a portion of their eligible compensation to the plan in accordance with plan provisions.  For employees meeting certain eligibility requirements, the plan allows the employer to make discretionary contributions to the plan.  Employer contributions to the plan for the years ended June 30, 2008 and 2007 were $11,091 and $11,624, respectively.

 Note 7:  Management fees - On July 14, 1998, the Organization entered into a ten-year management agreement with Alternative Youth Services, Inc.(AYS).  Under this agreement, AYS assumed overall day-to-day management responsibility.  A management fee is paid to AYS based on gross revenue less payments to be made to foster parents and less an agency administration fee equal to the greater of $2,500 or 2% of monthly gross revenue payable to Children’s Sanctuary, Inc. The costs of operations are primarily paid by AYS out of the revenue it receives as management fees.  AYS has a first priority security interest in and to any accounts receivable relating to the foster care operations.  Management fee expenses totaled $2,030,596 for 2008 and $1,905,187 for 2007.  The agreement will end shortly after the next fiscal year.  Management is currently negotiating an extension to the agreement. 

Note 8:  Concentrations - During 2008 and 2007, the Organization received federal funding through state agencies.  Significant reduction of this funding would have a significant affect on the Organization’s program activities. 

Note 9:  Federal income taxes - The Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and did not conduct unrelated business activities.  Therefore, the Organization has made no provision for federal income taxes in the accompanying financial statements.  In addition, the Organization has been determined by the Internal Revenue Service not to be a "private foundation" within the meaning of Section 509(a) of the Internal Revenue Code.

 - David Culp & Co. LLP, Certified Public Accountants -

 

CHILDREN’S SANCTUARY, INC.

 SCHEDULE OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2008

 

                                      

                       

 

Cluster/Program	Federal Agency/Pass-Through Entity	CFDA Number	Amount
Foster Care – Title IV-E	Passed through Indiana
	county agencies	93.658	$3,601,148
	Passed through Ohio
	county agencies		622,657
			$4,223,805
			==========

 

 

Notes To Schedule:

1.   This schedule includes the federal awards activity of Children’s Sanctuary, Inc. and is presented on the accrual basis of accounting.  The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.  Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

 

2.   Of the federal expenditures presented in this schedule, Children's Sanctuary, Inc. provided no federal awards to subrecipients.

  

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

 

To the Board of Directors

Children’s Sanctuary, Inc.

Fort Wayne, Indiana 

     We have audited the financial statements of Children’s Sanctuary, Inc. (the "Organization") as of and for the year ended June 30, 2008, and have issued our report thereon dated January 30, 2009.  We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

 Internal Control Over Financial Reporting

      In planning and performing our audit, we considered the Organization's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control over financial reporting.  Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control over financial reporting.

      Our consideration of the internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses.  However, as discussed below, we identified one deficiency in internal control over financial reporting that we consider to be a significant deficiency.

      A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.  A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Organization’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles, such that there is more than a remote likelihood that a misstatement of the Organization’s financial statements that is more than inconsequential will not be prevented or detected by the Organization’s internal control.  We consider the deficiency described in the accompanying schedule of findings and questioned costs to be a significant deficiency in internal control over financial reporting.  Finding 2008-1.

 

     A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Organization’s internal control.

     Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses.  However, we believe that the significant deficiency described above is a material weakness.

 Compliance and Other Matters

      As part of obtaining reasonable assurance about whether the Organization's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.  However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.  The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

      We noted certain matters that we reported to management of Children’s Sanctuary, Inc. in a separate letter dated January 30, 2009.

      This report is intended solely for the information and use of the board of directors, management, others within the Organization and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

                                                                                                                                    David Culp & Co. LLP

                                                                                                                                    Certified Public Accountants

 Fort Wayne, Indiana

 January 30, 2009

 

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH

MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN

ACCORDANCE WITH OMB CIRCULAR A-133

 

To the Board of Directors

Children’s Sanctuary, Inc.

Fort Wayne, Indiana

 

Compliance

     We have audited the compliance of Children’s Sanctuary, Inc. (the "Organization") with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008.  The Organization's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Organization's management.  Our responsibility is to express an opinion on the Organization's compliance based on our audit.

     We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.  Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred.  An audit includes examining, on a test basis, evidence about the Organization's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Organization's compliance with those requirements.

      In our opinion, Children’s Sanctuary, Inc. complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008.

 Internal Control Over Compliance

      The management of Children’s Sanctuary, Inc. is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs.  In planning and performing our audit, we considered the Organization's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.  Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control over compliance.

 

     A control deficiency in an entity’s internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis.  A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity’s internal control. 

     A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity’s internal control.

     Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses.  We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.

     This report is intended solely for the information and use of the board of directors, management, others within the Organization and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

 

                                                                                                                       David Culp & Co. LLP

                                                                                                                       Certified Public Accountants

 

Fort Wayne, Indiana

 January 30, 2009

 

 

CHILDREN’S SANCTUARY, INC.

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2008 

 

A.  SUMMARY OF AUDIT RESULTS - 

     1.  The auditor's report expresses an unqualified opinion on the financial statements of Children’s Sanctuary, Inc.

     2.  One significant deficiency relating to the audit of the financial statements is disclosed in the Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards.

     3.  No instances of noncompliance material to the financial statements of Children’s Sanctuary, Inc., which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit.

     4.  No significant deficiencies relating to the audit of the major federal award programs are reported in the Report On  Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards.

     5.  The auditor's report on compliance for the major federal award programs for Children’s Sanctuary, Inc. expresses an unqualified opinion on all major federal programs.

     6.  There were no audit findings or questioned costs for Federal Awards for the year ended June 30, 2008 for Children’s Sanctuary, Inc.

     7.  The programs tested as major programs include:

               Department of Health and Human Services

                  Foster Care Program  93.658 -

                     Expenditures for fiscal year ended June 30, 2008                                   $4,223,805

     8.  The threshold for distinguishing Types A and B programs was $300,000.

     9.  Children’s Sanctuary, Inc. qualified as a low-risk auditee.