Catholic Community Services of Lane County, Inc
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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 - 2 - 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