CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC.
FINANCIAL STATEMENTS AND SINGLE AUDIT INFORMATION
For the Years Ended June 30, 2016 and 2015
CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. FINANCIAL STATEMENTS AND SINGLE AUDIT INFORMATION For the Years Ended June 30, 2016 and 2015
TABLE OF CONTENTS
Page
Independent Auditor’s Report 1 - 2
Financial Statements:
Statements of Financial Position 3 - 4
Statements of Activities 5 - 6
Statements of Functional Expenses 7 - 8
Statements of Cash Flows 9
Notes to Financial Statements 10 - 15
Single Audit Information:
Schedule of Expenditures of Federal Awards 16
Notes to Schedule of Expenditures of Federal Awards 17
Independent Auditor’s 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 18 - 19
Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 20 - 21
Schedule of Findings and Questioned Costs 22
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors Catholic Community Services of Lane County, Inc. Eugene, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of Catholic Community Services of Lane County, Inc. (a nonprofit organization), which comprise the statements of financial position as of June 30, 2016 and 2015, and the related statements of activities, functional expenses, and cash flows for the years 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 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 from 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 reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Catholic Community Services of Lane County, Inc. as of June 30, 2016 and 2015, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Our audits were 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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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 relates 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 18, 2017, on our consideration of Catholic Community Services of Lane County, Inc.’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 Catholic Community Services of Lane County, Inc.’s internal control over financial reporting and compliance.
Jones & Roth, P.C. Eugene, Oregon January 18, 2017
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FINANCIAL STATEMENTS
CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. STATEMENTS OF FINANCIAL POSITION June 30, 2016 and 2015
2016 2015
Assets
Current assets Cash and cash equivalents (Note 2) $ 351,099 $ 208,815 Grants receivable (Note 3) 228,421 238,185 Prepaid expenses and other current assets 58,087 53,784
Total current assets 637,607 500,784
Property and equipment Buildings and improvements 1,168,902 1,168,902 Land 415,224 415,224 Equipment 215,155 205,535 Intangible assets 5,890 5,890 1,805,171 1,795,551 Accumulated depreciation (399,730) (338,964)
Property and equipment, net 1,405,441 1,456,587
Total assets $ 2,043,048 $ 1,957,371
- 3 - 2016 2015
Liabilities and Net Assets
Current liabilities Current portion of long-term debt (Note 4) $ 28,630 $ 27,285 Accounts payable and deposits 85,116 78,018 Accrued vacation 32,641 32,186 Accrued unemployment benefits (Note 9) 67,374 30,175 Accrued pension benefits 25,056 20,590 Other current liabilities 873 -
Total current liabilities 239,690 188,254
Non-current liabilities Long-term debt, net of current portion (Note 4) 618,626 643,313
Total liabilities 858,316 831,567
Net assets Unrestricted 957,904 919,433 Temporarily restricted (Note 10) 226,828 206,371
Total net assets 1,184,732 1,125,804
Total liabilities and net assets $ 2,043,048 $ 1,957,371
The accompanying notes are an integral part of these statements.
- 4 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. STATEMENTS OF ACTIVITIES For the Years Ended June 30, 2016 and 2015
2016 Temporarily Unrestricted Restricted Total Revenue and other support Government funding $ - $ 1,371,110 $ 1,371,110 Corporate funding - 167,621 167,621 Foundations and grants 58,201 - 58,201 Contributions 409,422 112,036 521,458 Contributions - donated goods and services 556,315 - 556,315 Contributions - donated food - 1,651,580 1,651,580 Other income 729 - 729 Interest income 309 - 309 Net assets released from restrictions 3,281,890 (3,281,890) -
Total revenue and other support 4,306,866 20,457 4,327,323
Expenses Program services: Basic needs (Help for Today) 3,155,359 - 3,155,359 Self-sufficiency (Hope for Tomorrow) 583,529 - 583,529 Support services: Management and general 351,676 - 351,676 Fundraising 177,831 - 177,831
Total expenses 4,268,395 - 4,268,395
Change in net assets 38,471 20,457 58,928
Net assets, beginning of year 919,433 206,371 1,125,804
Net assets, end of year $ 957,904 $ 226,828 $ 1,184,732
- 5 - 2015 Temporarily Unrestricted Restricted Total
$ - $ 1,482,210 $ 1,482,210 - 164,740 164,740 22,990 - 22,990 314,658 73,305 387,963 461,962 - 461,962 - 1,851,889 1,851,889 6,386 - 6,386 240 - 240 3,546,151 (3,546,151) -
4,352,387 25,993 4,378,380
3,205,225 - 3,205,225 641,096 - 641,096
336,316 - 336,316 165,106 - 165,106
4,347,743 - 4,347,743
4,644 25,993 30,637
914,789 180,378 1,095,167
$ 919,433 $ 206,371 $ 1,125,804
The accompanying notes are an integral part of these statements.
- 6 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. STATEMENTS OF FUNCTIONAL EXPENSES For the Years Ended June 30, 2016 and 2015
2016 Self- Basic Needs Sufficiency (Help for (Hope for Management Total Today) Tomorrow) and General Fundraising Expenses
Salaries $ 408,193 $ 230,519 $ 154,100 $ 99,711 $ 892,523 Payroll taxes and benefits 118,563 75,464 58,258 33,401 285,686 Direct aid to individuals 779,299 235,568 - - 1,014,867 Food distribution 1,651,580 - - - 1,651,580 Professional fees 95,049 1,445 20,880 - 117,374 Office supplies 28,312 5,578 9,815 18,327 62,032 License and fees 697 266 917 285 2,165 Depreciation and amortization - - 60,766 - 60,766 Dues and subscriptions - 50 1,379 134 1,563 Other 6,826 17,935 (175) 7,317 31,903 Insurance 7,161 4,829 718 255 12,963 Interest - - 35,370 - 35,370 Promotional 4,699 - 818 14,400 19,917 Rent - 900 - - 900 Repairs and maintenance 19,443 2,115 1,792 716 24,066 Communications 16,227 6,016 4,200 1,628 28,071 Utilities 19,310 2,844 2,838 1,657 26,649
Total functional expenses $ 3,155,359 $ 583,529 $ 351,676 $ 177,831 $ 4,268,395
- 7 - 2015 Self- Basic Needs Sufficiency (Help for (Hope for Management Total Today) Tomorrow) and General Fundraising Expenses
$ 413,456 $ 205,985 $ 146,057 $ 95,160 $ 860,658 95,543 69,298 50,374 32,722 247,937 633,244 319,218 - - 952,462 1,851,889 - - - 1,851,889 77,440 1,823 18,800 - 98,063 50,866 8,037 5,168 16,189 80,260 1,040 100 1,697 340 3,177 - - 54,979 - 54,979 - - 4,014 450 4,464 6,748 18,606 15,408 3,270 44,032 10,756 6,878 801 439 18,874 - - 32,124 - 32,124 4,271 - 586 12,916 17,773 7,990 - - - 7,990 12,719 2,393 1,819 693 17,624 20,029 5,043 2,470 1,235 28,777 19,234 3,715 2,019 1,692 26,660
$ 3,205,225 $ 641,096 $ 336,316 $ 165,106 $ 4,347,743
The accompanying notes are an integral part of these statements.
- 8 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. STATEMENTS OF CASH FLOWS For the Years Ended June 30, 2016 and 2015
2016 2015 Cash flows from operating activities Change in net assets $ 58,928 $ 30,637 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 60,766 54,979 (Increase) decrease in: Grants receivable 9,764 (59,508) Prepaid expenses and other current assets (4,303) 148 Increase (decrease) in: Accounts payable and deposits 7,098 (12,596) Accrued vacation, pension, and unemployment benefits 42,120 23,426 Other current liabilities 873 -
Net cash provided by operating activities 175,246 37,086
Cash flows used by investing activities Purchase of property and equipment (9,620) (120,385)
Cash flows used by financing activities Repayment of long-term debt (23,342) (21,321) Repayment of capital lease obligation - (2,272)
Net cash used by financing activities (23,342) (23,593)
Net increase (decrease) in cash and cash equivalents 142,284 (106,892)
Cash and cash equivalents, beginning of year 208,815 315,707
Cash and cash equivalents, end of year $ 351,099 $ 208,815
Supplemental disclosure of cash flow information Cash paid during the year for interest $ 35,370 $ 32,124
Schedule of noncash investing and financing activities Total purchase of property and equipment $ 9,620 $ 153,980 Amount financed with long-term debt - (33,595)
Cash paid for property and equipment $ 9,620 $ 120,385
The accompanying notes are an integral part of these statements.
- 9 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS
1. Nature of Business and Summary of Significant Accounting Policies
Nature of Business
Catholic Community Services of Lane County, Inc. (the Agency), is a Catholic Charities member agency that provides social services to needy residents of Lane County, Oregon.
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and, accordingly, reflect all significant receivables, payables, and other liabilities.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Public Support and Revenue
Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Contributions of donated non-cash assets are recorded at their fair values in the period received, and are included in the support and expenses.
Cash and Cash Equivalents
For purposes of the statements of cash flows, the Agency considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.
Investments
Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values in the statements of financial position. Unrealized gains and losses are included in the change in net assets. Investment income and gains restricted by a donor are reported as increases in unrestricted net assets if the restrictions are met (either by passage of time or by use) in the reporting period in which the income and gains are recognized.
Grants Receivable
Grants receivable primarily consist of amounts due from the state of Oregon and Lane County, Oregon for the balance of their contracts. The Agency periodically reviews receivable balances and charges off any amounts determined uncollectible. The Agency considers all receivables at June 30, 2016 and 2015, to be fully collectible and, therefore, no allowance for uncollectible receivables was recorded.
- 10 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS
1. Nature of Business and Summary of Significant Accounting Policies, continued
Property and Equipment
Property and equipment is recorded at cost. Donations of property and equipment are recorded as support at their estimated fair value. Such donations are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Agency reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Agency reclassifies temporarily restricted net assets to unrestricted net assets at that time.
All significant acquisitions and renovations which increase the value of an asset are capitalized. Property and equipment are depreciated using the straight-line method over estimated useful lives ranging from 5 to 30 years. As of June 30, 2016 and 2015, property and equipment includes a building, parking lot, and equipment, with a total net book value of $566,298 and $587,475, respectively, whose use is restricted by trust deeds.
Financial Statement Presentation
The Agency reports information regarding its financial position and activities according to two classes of net assets: unrestricted net assets and temporarily restricted net assets.
Contributions
Contributions received are recorded as unrestricted or temporarily restricted net assets depending on the absence or existence and nature of any donor restrictions.
Income Taxes
The Agency is a nonprofit organization exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code (IRC) and is not classified as a private foundation.
The Agency files required information returns with both the U.S. federal jurisdiction and the state of Oregon.
Accrued Unemployment Benefits
The Agency self-funds unemployment benefits as provided by law. The Agency charges to expense and credits to unemployment reserves a determined percent of wages. As benefits are paid, the reserve is charged. No actuarial determination has been made to determine the adequacy of such a reserve.
Functional Expenses
Functional expenses have been allocated between program services and support services based on an analysis of personnel time and space utilized for the related activities.
- 11 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS
2. Cash and Cash Equivalents
As of June 30, cash and cash equivalents were composed of the following:
2016 2015
Bank checking accounts $ 222,682 $ 130,501 Bank savings accounts 6,998 6,996 Certificates of deposit 100,134 50,067 Money market accounts 21,285 21,251
Total cash and cash equivalents $ 351,099 $ 208,815
The Agency maintains its cash balances at financial institutions. At times, these cash balances exceed the insured amount provided by the Federal Deposit Insurance Corporation of $250,000 per institution. The Agency had $4,785 and $-0- of cash balances in excess of federally insured limits at June 30, 2016 and 2015, respectively.
3. Concentrations of Grants Receivable
Grants receivable are composed of amounts due from the state of Oregon and Lane County, Oregon for social services performed on contracts. Some of the contracts are pass-through grants of federal grants. The balance also includes receivables for grants from Catholic Charities of Portland.
4. Long-term Debt
As of June 30, long-term debt was composed of the following:
2016 2015 Mortgage payable to Summit Bank, payable in monthly installments of $2,976, including a variable interest rate of the current LIBOR rate plus 3.25%, with a floor of 4.75%. At June 30, 2016 and 2015, the rate was 4.75%. The note is due November 2021 and is secured by real property. $ 465,598 $ 475,152
Mortgage payable to Summit Bank, payable in monthly installments of $1,281, including a variable interest rate of the current LIBOR rate plus 4.00%, with a floor of 4.75%. At June 30, 2016 and 2015, the rate was 5.67% and 5.78%, respectively. The note is due December 2020 and is secured by real property. 156,730 163,828
- 12 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS
4. Long-term Debt, continued
2016 2015 Note payable to Summit Bank, payable in monthly installments of $636, including a fixed interest rate of 5.00%. The note is due February 2020 and is secured by the Agency’s assets. 24,928 31,618 647,256 670,598 Current portion (28,630) (27,285)
Long-term debt, net of current portion $ 618,626 $ 643,313
Maturities of long-term debt are as follows:
Year Ending June 30,
2017 $ 28,630 2018 30,036 2019 31,513 2020 29,932 2021 138,256 Thereafter 388,889
Total $ 647,256
5. Line of Credit
In January 2015 the Agency entered into an agreement with Summit Bank for a $100,000 line of credit with a stated maturity date of January 1, 2016. In January 2016, the Agency entered into an agreement to extend the maturity date to February 1, 2017. The line of credit accrues interest at the variable rate of the current LIBOR rate plus 2.00 percent, with a floor of 5.25 percent, and is secured by the Agency’s assets. As of June 30, 2016 and 2015, the interest rate was 5.50 and 5.25 percent, respectively. There were no outstanding balances on these credit facilities as of June 30, 2016 and 2015.
6. Donated Non-cash Assets
The Agency receives donations of non-cash assets in the form of food from Food for Lane County. The food is then distributed as direct aid to individuals. The value of the food received for the years ended June 30, 2016 and 2015, was $1,651,580 and $1,851,889, respectively.
- 13 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS
7. Simplified Employee Pension Plan
The Agency established a Simplified Employee Pension (SEP) plan for all employees who have worked in three of the previous five years. For fiscal years ended June 30, 2016 and 2015, the Agency contributed and allocated to the SEP plan participants 3 percent of each participant's compensation. The Agency contributed $15,798 and $13,116, for the years ended June 30, 2016 and 2015, respectively.
Under a SEP plan, annual discretionary contributions are made directly to participants' individual retirement accounts (IRAs). After the funds have been distributed to the IRAs, the Agency has no fiduciary responsibility or control over the accounts.
8. Operating Leases and Service Agreements
The Agency entered into non-cancelable operating leases for copiers that expire in July 2017 and May 2019 and require monthly payments of $237 and $197, respectively. The Agency entered into a service agreement for equipment maintenance that expires in June 2019 and requires monthly payments of $95.
The commitments under these agreements are as follows:
Year Ending June 30,
2017 $ 6,346 2018 3,739 2019 3,305 2020 - 2021 -
Total $ 13,390
The Agency is invoiced for rental and service agreement costs on a monthly basis. Rental expense for the years ended June 30, 2016 and 2015, was $6,990 and $7,990, respectively.
9. Accrued Unemployment Benefits
As stated in Note 1, the Agency provides a reserve for unemployment benefits. Currently, there are 21 full-time and 7 part-time employees eligible for benefits. Each full-time and part-time employee is potentially eligible for weekly benefits of approximately $425 and $200, respectively, for 26 weeks. The maximum contingent liability is estimated to be $268,450. For the years ended June 30, the activity in accrued unemployment benefits was:
2016 2015
Balance, beginning of year $ 30,175 $ 13,023 Net benefits accrued 37,199 17,152
Balance, end of year $ 67,374 $ 30,175
- 14 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS
10. Temporarily Restricted Net Assets
As of June 30, temporarily restricted net assets were available for the following purposes:
2016 2015
Children's care $ 6,996 $ 6,996 CDBG trust deed building 55,080 73,440 CDBG trust deed parking lot 12,810 14,560 CDBG trust deed freezer units 27,615 27,615 CDBG trust deed warehouse remodel 27,000 27,000 Development and volunteer grant - 35,000 Young fathers program - 2,000 SNAP grant 3,116 8,714 Family support and connections program - 6,831 Homeless family shelter 13,483 - - G street oasis 59,498 - Great hour of caring 19,230 - Other program expenses 2,000 4,215
Total temporarily restricted net assets $ 226,828 $ 206,371
11. Reclassifications
Certain amounts previously reported in the prior year financial statements have been reclassified to be consistent with the current year classifications. Such reclassifications have no effect on the 2015 reported change in net assets.
12. Subsequent Events
Management evaluates events and transactions that occur after the statement of financial position date as potential subsequent events. Management has performed this evaluation through the date of the independent auditor’s report.
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SINGLE AUDIT INFORMATION
CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2016
Federal Pass-through Passed CFDA Entity Identifying Through to Federal Federal Grantor/Pass-through Grantor/Program Title Number Number Subrecipients Expenditures
U.S. Department of Housing and Urban Development Passed through Lane County: Community Development Block Grants/Entitlement Grants 14.218 51295, 51296 $ - $ 56,347 Emergency Solutions Grant Program 14.231 51295, 51296 78,129 78,129 Continuum of Care Program 14.267 51330 - 190,734 Total passed through Lane County 78,129 325,210
Passed through Catholic Charities USA: Housing Counseling Assistance Program 14.169 HC15001101 - 25,999
Passed through City of Springfield: Community Development Block Grants/Entitlement Grants 14.218 None - 10,000
Total U.S. Department of Housing and Urban Development 78,129 361,209
U.S. Department of Homeland Security Direct program: Emergency Food and Shelter National Board Program 97.024 - 28,660
U.S. Department of Health and Human Services Passed through Lane County: Low-Income Home Energy Assistance 93.568 51295, 51296 - 162,902 Community Services Block Grant 93.569 51295, 51296 - 155,637 Total passed through Lane County - 318,539
Total U.S. Department of Health and Human Services - 318,539
U.S. Department of Agriculture Passed through Food for Lane County: Emergency Food Assistance Program 10.569 15-2384, 15-3423 - 187,394
Total federal financial assistance $ 78,129 $ 895,802
- 16 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Catholic Community Services of Lane County, Inc. under programs of the federal government for the year ended June 30, 2016. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Catholic Community Services of Lane County, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Catholic Community Services of Lane County, Inc.
2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
3. Indirect Cost Rate
Catholic Community Services of Lane County, Inc. has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
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INDEPENDENT AUDITOR’S 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 Catholic Community Services of Lane County, Inc. Eugene, Oregon
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 Catholic Community Services of Lane County, Inc. (a nonprofit organization), which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated January 18, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Catholic Community Services of Lane County, Inc.’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 opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Catholic Community Services of Lane County, Inc.’s internal control. Accordingly, we do not express an opinion on the effectiveness of Catholic Community Services of Lane County, Inc.’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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Catholic Community Services of Lane County, Inc.’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 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.
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 Agency’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 Agency’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Jones & Roth, P.C. Eugene, Oregon January 18, 2017
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Directors Catholic Community Services of Lane County, Inc. Eugene, Oregon
Report on Compliance for Each Major Federal Program
We have audited Catholic Community Services of Lane County, Inc.’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Catholic Community Services of Lane County, Inc.’s major federal programs for the year ended June 30, 2016. Catholic Community Services of Lane County, Inc.’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 federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of Catholic Community Services of Lane County, Inc.’s major federal programs based on 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; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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 Catholic Community Services of Lane County, Inc.’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 on compliance for each major federal program. However, our audit does not provide a legal determination of Catholic Community Services of Lane County, Inc.’s compliance.
Opinion on Each Major Federal Program
In our opinion, Catholic Community Services of Lane County, Inc. 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, 2016.
Report on Internal Control Over Compliance
Management of Catholic Community Services of Lane County, Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Catholic Community Services of Lane County, Inc.’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, 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 Catholic Community Services of Lane County, Inc.’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Jones & Roth, P.C. Eugene, Oregon January 18, 2017
- 21 - CATHOLIC COMMUNITY SERVICES OF LANE COUNTY, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2016
Summary of Auditor’s Results
(1) The independent auditor’s report expresses an unmodified opinion on whether the financial statements of Catholic Community Services of Lane County, Inc. were prepared in accordance with U.S. GAAP.
(2) No significant deficiencies or material weaknesses in internal control were disclosed by the audit of the financial statements.
(3) No instances of noncompliance material to the financial statements, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit.
(4) No significant deficiencies were disclosed by the audit of the major federal award program.
(5) The independent auditor’s report on compliance for the major federal award program for Catholic Community Services of Lane County, Inc. expresses an unmodified opinion on the major federal program.
(6) The audit did not disclose any audit findings that are required to be reported in accordance with Title 2 U.S. CFR section 200.516(a).
(7) The program tested as a major program was:
CFDA #14.267 Continuum of Care Program
(8) The threshold for distinguishing between Type A and Type B programs was $750,000.
(9) Catholic Community Services of Lane County, Inc. qualified as a low-risk auditee.
Findings – Financial Statements Audit
None.
Findings and Questioned Costs – Major Federal Award Program Audit
None.
Prior Year Findings
None.
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