AUDIT REPORT

 

WICHITA MOUNTAINS PREVENTION  NETWORK, INC.

Lawton, Oldahoma

 

JUNE 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BY

 

 


Wichita Mountains Prevention Network, Inc.

For Year Ended June 30, 2013

 

Table of Contents

 

 

 

 

INDEPENDENT AUDITOR'S REPORT 1-2

FINANCIAL STATEMENTS

Statement of Financial Position...... 3

Statement of Activities and Changes in Net Assets...... 4

Statement of Functional Expenses...... 5

Statement of Cash Flows...... 6

Notes to Financial Statements...... 7-10

 

 

REQUIRED SUPPLEMENTAL INFORMATION

 

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 11-12

 

Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on each Major Program and Internal Control

Over Compliance in Accordance with OMB Circular A-133 13-14

 

 

SUPPLEMENTAL  INFORMATION

 

Schedule of Expenditures of Federal Awards...... 15

 

Notes to Schedules of Expenditures of Federal...... 16

 

Schedule of Findings and Questioned Costs...... 17-18


 

 

 

 

 

 

 

INDEPENDENT  AUDITOR'S  REPORT

 

Board of Directors

Wichita Mountains Prevention Network, Inc. Lawton, Oklahoma

 

We have audited the accompanying Statement of Financial Position of Wichita Mountains Prevention Network, Inc., Lawton, Oklahoma, (a nonprofit organization), as of June 30, 2013, and the related Statements of Activities, Cash Flows, and Functional Expenses for the year then ended and the related notes to the financial statements.

 

Management's Responsibility for the Financial Statements

 

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

 

Auditor's Responsibility

 

Our responsibility is to express an opinion on these financial statements based on our audit. 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. 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 involves performing procedures to obtain audit evidence  about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonable of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation.

 

 

 

 

 

608 NW Ft. Sill Blvd, Lawton, OK 73507  Telephone (580) 355-7100  Fax (580) 355-7102


We believe that our audit provides a reasonable basis for our opinion.

 

Opinion

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Wichita Mountains Prevention Network as of June 30, 2013, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

 

Other Matters

 

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is·the responsibility of management and was derived from and related directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

 

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated January 13, 2014, 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 the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control over financial reporting and compliance.


 

 

FURRH & ASSOCIATES, PC

January 13, 2014


0'C.


Wichita Mountains Prevention Network, Inc.

Lawton, Oklahoma Statement of Financial Position

June 30, 2013

 

 

Assets

 

Current Assets

Cash    $    3,100

Accounts Receivable    153,962

Prepaid Insurance    6,368

 

 

Total Current Assets  163,430

 

Pro,nertv and Egui,nment

 

 

Office Equipment            72,782 Less, Accumulated Depreciation             (59,992)

 

Total Noncurrent Assets 12,790

 

 

Total Assets $ 176,220

 

 

Liabilities and Net Assets

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Credit Line at City National Bank

$        56,090

Accounts Payable

25,287

Compensated Absence Liability

22,207

Accrued Payroll

6,181

Payroll Taxes Payable

        2,882

Total Current Liabilities

$          112,647

et Assets

Unrestricted Net Assets                             63,260

Temp. Restricted Net Assets

313

 

Total Net Assets

 

63,573

 

Total Liabilities and Net Assets

 

$         176,220

 

N

 

 

 

 

 

 

 

 

 

 

 

 

Please see accompanying notes to the financial statements.


Wichita Mountains Prevention Network, Inc.

Lawton, Oklahoma

Statement of Activities and Changes in Net Assets For Year Ended June 30, 2013

 

 

Temporarily    Permanently


Revenue       Unrestricted       Restricted       


-  Restricted     Total


 

Grants

$      675,246

$                      0

$                    0

$          675,246

Contributions

284

9,000

0

9,284

Program Fees

3,653

0

0

3,653

Miscellaneous

1,360

0

0

1,360

Released  Restrictions:

Satisfied by Purpose

              9,000

                 (9,000)

                    0

                         0

Program Services

553,721

0

0

553,721

Management and General

          143,581

                          0

                        0

              143,581

Total Expenses

697,302

0

0

697,302

Changes inNet Assets

(7,759)

0

0

(7,759)

 

Total Revenue            689,543            0            0            689,543 Expenditures

 

 

 

 

 

 


Net Assets, June 30, 2012         71,019                  313         0      -


 

71,332


Net Assets, June 30, 2013  $  63,260  $  313  $  0  $  63,573

                                                                                                           

 

 

 

 

 

 

Please see accompanying notes to the financial statements.

 

4


Wichita Mountains Prevention Network, Inc.

Lawton, Oklahoma

Statement of Functional Expense For Year Ended June 30, 2013

 

Program            Management

     Services    and General    Total    

 

Salaries and Related Expense

 

Salaries and Benefits

$     343,594

$           98,534

$         442,128

Payroll Taxes and Insurance

           23,913

                6,644

30,557

 

Total Salaries and Related Expense     367,507     105,178     472,685

 

Other Expenses

 

Education and Training

45,893

12,944

58,837

Program Expense

56,402

0

56,402

Rent and Utilities

32,163

9,071

41,234

Travel-Direct Program Related

20,381

0

20,381

Accounting

8,159

2,301

10,460

Interest Expense

0

7,269

7,269

Office Supplies and Postage

4,828

1,362

6,190

Maintenance and Repairs

3,379

953

4,332

Printing and Publications

2,271

640

2,911

Insurance

2,257

637

2,894

Advertising

2,092

590

2,682

Dues, Fees, and Subscriptions

1,503

424

1,927

Miscellaneous

1,117

315

1,432

Bank Service Charges

                    0

                   269

                   269

 

Total Other Expenses                              180,444                              36,776                    217,220 Depreciation                                        5,769                                        1,627                              7,396            Total Functional Expense          $          553,720          $          143,581          $          697,301

 

 

 

 

 

 

 

 

 

Please see accompanying notes to the financial statements.

 

5


Wichita Mountains Prevention Network, Inc.

Lawton, Oklahoma Statement of Cash Flows

Net Change in Net Assets

Noncash Expenses Included in Net Income:

$        (7,759)

Depreciation

$        7,396

Decrease in Accounts Receivable

31,232

Decrease in Prepaid Assets

3,099

Decrease in Accounts Payable

(24,146)

Decrease in Accrued Expenses

(8,732)

Increase in Payroll Taxes Payable

2,882

Increase in Compensated Absences

22,207

 

For Year Ended June 30, 2013 CASH FLOW FROM OPERATING  ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by Operating Activities         26,179

 

 

CASH FLOW FROM FINANCING  ACTIVITIES

 

Principal paid on Line of Credit

(44,035)

Net Cash Used In Financing Activities

(44,035)

 

Net Increase I (Decrease) in Cash

 

(17,856)

Cash as of July 1, 2012

20,956

 

Cash as of June 30, 2013

 

$          3,100

 

 

Reconciliation  of Operating Income to Net Cash Provided by Operating Activities

 

Cash Received

$       720,775

Cash Paid Out for Program Services

(551,610)

Cash Paid Out for Management and General

(142,986)

 

Net Cash Provided by Operating Activities $ 26,179

 

 

 

 

 

 

Please see accompanying notes to the financial statements.

 

6


Wichita Mountains Prevention Network, Inc.

NOTES TO FINANCIAL STATEMENTS June 30, 2013

 

 

Note 1 - Nature of Activities and Significant Accounting Policies

 

Nature of Activities

 

The Wichita Mountains Prevention Network, Inc. is an Oklahoma non-profit organization that promotes the well-being of children and families in Southwest Oklahoma through awareness, education, community mobilization, and early intervention. Its mission is to reduce risk behaviors and promote healthy behaviors in schools, families, and the community. They maintain offices in Lawton and Ardmore, Oklahoma, which allows them to provide services to fifteen counties throughout Southwest Oklahoma. Funding for the Organization's activities are primarily achieved through  grants from the Department of Health and Human Services and the Oklahoma Department of Mental Health.

 

Contributions

 

Contributions are recognized when the donor makes a gift that is unconditional. Donor restricted contributions are repmted as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. All contributions are considered to be unrestricted unless specifically restricted by the donor.

 

Contributed Services

 

During the year ended June 30, 2013, the value of contributed services meeting the requirements for recognition in the financial statements was not material and has not been recorded. In addition, many individuals volunteer their time and perform a variety of tasks that assist the Organization, but these services do not meet the criteria for recognition as contributed services.

 

Estimates

 

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

 

Basis of Accounting

 

The financial statements have been prepared on the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded when incurred.  Revenues earned but not received and expenses incurred but not paid are recorded as receivables and payables, respectively, on the statement of financial position. Net assets represent cumulative revenue over expenses incurred.


Wichita Mountains Prevention Network, Inc.

NOTES TO FINANCIAL STATEMENTS June 30, 2013

 

Basis of Presentation

 

The financial statements are presented in accordance with generally accepted accounting principles applicable to not for profit organizations. Financial position and activities are reported according to three classes of net assets (1) unrestricted, (2) temporarily restricted, and (3) permanently restricted.

 

 

Income Taxes

 

Wichita Mountains Prevention Network is exempt from Federal income  tax  as  an organization described in Section 501(c)(3) of the Internal Revenue Code. Therefore, no provision for income taxes has been made. The Corporation is required to file a Return of Organization Exempt from Income Tax, Form 990.

 

Commitments  and Contingencies

 

The Organization received several grants that require fulfillment of certain conditions as set forth in the grant contract.  Failure to fulfill the grant conditions could result in the reimbursement of funds to the grantor.  Presently, management is unaware of any such reimbursements, and in the opinion of management, any such amounts would not be considered material.

 

Subsequent Events

 

Subsequent events have been evaluated through January 13, 2014, which is the date the financial statements were available to be issued.

 

Note 2 - Statement of Cash Flows

 

For purposes of the cash flow statement, all short-term investments with an original maturity date of three months or less are considered to be cash equivalents.

 

Note 3 - Cash and Cash Equivalents

 

The following is a recap of bank accounts.  All accounts are insured by the Federal Deposit Insurance Corporation (FDIC).

 

 

Balance as of June 30, 2013

City National Bank Checking

$             2,333

City National Bank Savings

767

3,100


Wichita Mountains Prevention Network, Inc.

NOTES TO FINANCIAL STATEMENTS June 30, 2013

 

 

The Organization's cash, deposits, and investments are classified in the following categories:

 

  1. A.Insured or collateralized with securities held by the entity or by its agent in the entity's name.

 

B.    Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name.

 


C. Uncollateralized.


 

          A                  B                c                Total         


City National Bank $ 3,100 0 0 3,100

 

Total $ 3,100 $ 0 $ 0 $ 3,100

========= ========= ==========

 

Note 4 - Lease Agreements

 

Wichita Mountains Prevention Network entered into a lease agreement for office space in Lawton, Oklahoma with KW & Co, Inc. The lease expired in 2005, but the Organization continues to lease the office space on a month-to-month basis. They also entered into a lease agreement for office space in Ardmore, Oklahoma with The Colston Corporation. Wichita Mountains Prevention Network leases this office space on a month-to-month basis. Lease expense was approximately $24,780 for the year ended June 30, 2013.

 

Note 5 - Inventories

 

The Organization records material and supply inventories as expenditures at the time the inventory is purchased and at year end such inventories are not considered material in amount. Therefore, no inventory of materials and supplies not yet consumed are reported in the basic statement of assets, liabilities, and net assets.

 

Note 6 - Property and Equipment

 

Office equipment and furniture and leasehold improvements are recorded at cost or at market value at the date of gift, if donated. Assets costing less than $100 per unit are not normally capitalized. Depreciation is computed on a declining balance basis over the estimated useful life of the asset.  The estimated useful lives are as follows:

 


Office Equipment and Furniture Leasehold Improvements


3 - 5 years

22 years


Wichita Mountains Prevention Network, Inc.

NOTES TO FINANCIAL STATEMENTS June 30, 2013

 

 

A summary of changes in fixed assets for the year ended June 30, 2013, is as follows:

 

Balance

Balance

06/30/12

Additions

Disposals

06/30/13

Fixed Assets

Equipment and Furniture 80,604 7,822 72,782

                                           

Total $ 80,604 $ 0 $ 7,822 $ 72,782

 

Accumulated De12reciation

 

 

Equipment and Fixtures 60,418 7,396 7,822 59,992

                                                                                                              

Total $ 60,418 $ 7,396 $ 7,822 $ 59,992

   

 

 

Depreciation for the year ended June 30, 2013 was $7,382 and charged to current operations.

 

Note 7 - Functional Expenses

 

Functional expenses have been allocated between Program Services and Supporting Services based on an analysis of personnel time and space utilized for the related activities.

 

Note 8 - Tax-Sheltered Annuity Agreement

 

The Organization offers a Simplified Employee Pension Plan for is employees. Employees are eligible to participate in the Plan after two years of service as of July 1st and attaining the age of 21. Each year the Organization makes a contribution to the Plan on behalf of the each employee between 3% and 6% of each employee's annual salary.  Contributions to the Plan totaled approximately $14,438 for the year ended June 30, 2013.

 

Note 9 - Notes Payable

 

Wichita Mountains Prevention Network entered into an unsecured line of credit agreement with a local bank in the amount of $100,125 at a fixed interest rate of 13%, with all principal and interest due at the maturity date of January 15, 2014. The note has an outstanding principal balance of $56,090 at June 30, 2013.


 


 

 

 

 

 

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

 

 

Wichita Mountains Prevention Network, Inc. Lawton, Oklahoma

 

We have audited, in accordance with the 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, the financial statements of the activities of the Wichita Mountains Prevention Network, Inc. (the Organization), as of and for the year ended June 30, 2013, which collectively comprise the Organization's basic financial statements and have issued our report thereon dated January 13, 2014.

 

Internal Control Over Financial Reporting

 

In planning and performing our audit of the financial statements, we considered the Organization's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control.

 

A deficiency in internal control 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 and correct,  misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

 

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.  We did identify certain


deficiencies  in  internal  control,  described  in  the  accompanying   schedule  of  findings  and questioned costs that we consider to be significant deficiencies.  Finding 2013-1.

 

Compliance and Other Matters

 

As part of obtaining reasonable assurance about whether the Organization's financial statements are free from 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 dete1mination 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.

 

Organization's Response to Findings

 

Wichita Mountains Prevention Network's response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The Organization's response was not subjected to the auditing procedures applied in the audit of  the financial statements and accordingly, we express no opinion on it.

 

Purpose of this Report

 

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

 

 

 

FURRH & ASSOCIATES, PC

Certified Public Accountants January 13, 2014


 

 

 

 

 

 

 

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT

ON EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

 

Wichita Mountains Prevention Network, Inc. Lawton, OK

 

We have audited the compliance of Wichita Mountains Prevention Network, Inc. (the Organization) with the types of compliance requirements described in OMB's Circular A-133 that could have a direct and material effect on the Organization's major federal programs for the year ended June 30, 2013.  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.

 

Management's Responsibility

 

Management is responsible for compliance with requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs.

 

Auditor's Responsibility

 

Our responsibility is to express an opinion on the Organization's compliance based upon our audit of the types of compliance requirements referred to above.  We conducted our audit of compliance 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 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.

 

 

 

 

 

 

 


 

Opinion on Each Major Federal Program

 

In our opinion, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2013.

 

Other Matters

 

The results of auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedules of findings and questioned costs as items 2013-1.  Our opinion on each major federal program is not modified with respect to these matters.

 

The Organization's response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs.  The Organization's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

 

This report is intended solely for the information and use of the Organization's management, and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties.

 

c\

FURRH & ASSOCIATES, PC

Certified Public Accountants January 13, 2014


Wichita Mountains Prevention Network, Inc.

Lawton, Oklahoma

Schedule of Expenditures  of Federal Awards For Year Ended .June 30, 2013

 


Federal CFDA

        Federal Grantor and Program Title       Number       

 

US Department  of Health and Human Services

Passed through the Oklahoma Department of Mental Health and Substance Abuse


 

Grant

    Document


Federal Award Expenditures


 

Block Grants for Prevention and Treatment of Substance Abuse

93.959

4529039830

$        186,399

Block Grants for Prevention and Treatment of Substance Abuse

93.959

4529039827

186,256

Substance Abuse Prevention Strategic Prevention Framework

93.243

4529039830

194,448

State Incentive Grant

Substance Abuse Prevention Strategic Prevention Framework State Incentive Grant

93.243

4529039827

            284,766

 


Total US Department of Health and Human Services

 

TOTAL FEDERAL PROGRAMS


$        851,869

 

 

$        851,869


 

 

 

 

 

 

 

 

 

 

 

Please see accompanyjng notes to the schedules of expenditures of federal awards.

 

15


Wichita Mountains Prevention Network, Inc.

NOTES TO SCHEDULE OF EXPENDITURES  OF FEDERAL AWARDS June 30, 2013

 

 

Note 1 - Basis of Presentation

 

The schedule of expenditures of federal awards are a summary of the Organization's federal award programs prepared on the accrual basis of accounting.

 

Note 2 - Reconciliation of Expenses

 

The following is a reconciliation of the expenditures reported on the Organization's

schedules of expenditures of federal awards to the expenses per the statement of activities for the year ended June 30, 2013.

 

 

Expenditures on schedule of expenditures of fedeal awards:

$  851,869

Expenditures for Program Services

553,720

Expenditures for Management and General

143,581

 

Total per Statement of Activities

 

$  697,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16


Wichita Mountains Prevention Network, Inc.

Schedule of Findings and Responses Year Ended June 30, 2013

 

 

SectionI- Summary of Auditor's Results Financial Statements

  1. 1.The independent auditor's report on the financial statements expressed an unqualified opinion.

 

  1. 2.One material weakness was reported in the independent auditor's report on internal control over financial reporting as Finding 13-01.

 

  1. 3.No instances of noncompliance material to the financial statements of Wichita Mountain Prevention Network were disclosed during the audit.

 

  1. 4.One material weakness was rep01ied in the internal control over compliance with requirements applicable to major federal awards program was reported in the independent auditor's report on internal control over compliance as Finding 13-01.

 

  1. 5.The independent's auditor's report on compliance for the major federal awards programs express an unqualified opinion.

 

  1. 6.The federal award programs tested as major programs included:
  • •Prevention and Treatment of Substance Abuse CFDA No. 93.959
    • •Strategic Prevention Framework State Incentive Grant CFDA No. 93.243

 

  1. 7.A threshold of $300,000 was used to distinguish between Type A and Type B programs, as those terms are defined by OMB Circular A-133.

 

  1. 8.For the year ended June 30, 2013, the Organization did not qualify as a low-risk auditee, as described in Section 530 of OMB Circular A-133.

 

Section II- Financial Statements Findings Compliance Findings:

None.

 

Internal Control Findings


13-1.                      Criteria - According to Title 85 of the Oklahoma  Statutes, worker's  compensation insurance must be carried on all employees.

 

Condition - The Organization did not maintain adequate insurance coverage from July 1, 2012 thru February 14, 2013 and then again from March 28, 2013 thru May 20, 2013.

 

Cause  and  Effect - Due to the lack of insurance coverage, the Organization was  at financial risk due to a potential employee claim or fines from Oklahoma Department  of Labor.

 

Recommendation - The Organization should obtain adequate insurance coverage immediately.

 

Management response - As December 11, 2013, Management has obtained adequate worker's compensation insurance.

 

 

Section III - Federal Award Findings and Questioned Costs Compliance Findings:

None.

 

Internal Control Findings

 

See Finding 13-1 above.