Finance Committee Meeting (Telephone Conference) Agenda and Meeting Materials

Transcription

1 Finance Committee Meeting (Telephone Conference) Agenda and Meeting Materials December 5, :30 a.m. 10:00 a.m. Call In Number: Passcode: # (703)

2 THE SKILLSOURCE GROUP, INC. Finance Committee Meeting December 5, :30 a.m. 10:00 a.m. Conference Call-In: Passcode: # Comments by the Finance Committee Chair Approval of Summary Notes from November 6, 2014 Meeting ACTION ITEMS: 1. Acceptance of the MOU With Arlington County Government For Distribution of U.S. Department of Defense, Office of Economic Adjustment Grant and State Veterans Services Funds DISCUSSION ITEMS: 1. October 2014 Management Reports 2. FY15 Updated SkillSource 3. Pending SkillSource Grant and Contract Proposals Adjourn 1

3 THE SKILLSOURCE GROUP, INC. FINANCE COMMITTEE MEETING (Telephone Conference) Summary Notes November 6, 2014 Members Present: Mark Birmingham, Kim Clark-Pakstys Members Absent: John Ritzert, Todd Rowley SSG Staff: David Hunn, Tyna Gaylor, Seema Jain, Sarah Scott The SSG Finance Committee conference call commenced at 9:30 a.m. Approval of Summary Notes from September 4, 2014 Board member attendance was reviewed and a quorum was present. Mark Birmingham made a motion to accept the September 4, 2014 Summary Notes. The Summary Notes were unanimously approved by the Finance Committee, with no abstentions. ACTION ITEMS Acceptance of PY 2014 WIA Adult and Dislocated Worker Funds SkillSource received a Notice of Obligation from the Virginia Community College System providing authorization to spend the Program Year 2014 WIA Adult and Dislocated funds. 100% of WIA Youth Program funds, 7.08% of WIA Adult funds, and 14.18% of WIA Dislocated Worker funds were previously approved at the August 14, 2014 Finance Committee meeting. Total funding for PY 2014 for all WIA programs is $3,429,359, which is a decrease of $159,191 below Program Year 2014 funding. Mark Birmingham made a motion to accept the full year (100%) funding of WIA Adult and Dislocated Worker Programs for PY The motion was unanimously approved by the Finance Committee Board, with no abstentions. Acceptance of the PY 2012 Workforce Investment Act Incentive Award SkillSource received a Notice of Obligation from the Virginia Community College System awarding Area #11 an Exemplary Performance Incentive Award for PY The award was based on Area #11 meeting eight WIA Performance measures; Area #11 was one of five local workforce areas in Virginia that met 9-8 WIA Performance Measures. The funding will be available from July 1, 2014 to June 30, Mark Birmingham asked if SkillSource received this award last year. Seema Jain said yes, SkillSource did receive this award the previous year. Mark Birmingham asked how many years 2

4 in a row SkillSource received the award. David Hunn said SkillSource has been consistent with receiving the award. Mark Birmingham made a motion to accept the WIA Exemplary Performance fund of $2,500. The motion was unanimously approved by the Finance Committee, with no abstentions. Acceptance of the WIA Local Coordination Funds SkillSource received a Notice of Obligation from the Virginia Community College System awarding Area #11 a total of $50,000 for a Local Coordination Incentive Award. The $50,000 award will be used to continue to support the contract for a Veterans Job Developer, Susan Baker, who will place at least 60 local veterans into employment at an average wage of $30/hour. SkillSource previously received $75,000 in funding for this position from the United Way of the National Capital Area, and subsequently hired Susan Baker as the contract Veterans Job Developer. By August 2014, Ms. Baker exceeded her placement goal of 50 veterans by over 20%, placing 62 veterans into full-time positions at an average hourly wage of $ Due to the project exceeding its goals by 20%, SkillSource was granted a $25,000 bonus from UWNCA. Mark Birmingham asked if this funding was anticipated, in regard to the FY 2015 budget. Tyna Gaylor said it was not included in the budget. Mark Birmingham made a motion to accept the WIA Local Coordination funds of $50,000. The motion was unanimously approved by the Finance Committee, with no abstentions. DISCUSSION ITEMS September 2014 Management Reports Tyna Gaylor presented the September 2014 Management Reports. The financial results of operation for the three months ending September 30, 2014 reflected a decrease in net assets of $19,497 on the GAAP basis. This change comprises: A decrease of Unrestricted Net Assets of $28,992 (net income from Ticket to Work, Prince William Center, and interest, which is offset by unrestricted expenses and losses in grants that are not fully cost recoverable). An increase of Temporarily Restricted Contributions of $25,000 (amounts received from the Consolidated Community Funding Pool, the United Way Veterans Initiative, and the EYE Program that have not yet been dispersed.) A release of Temporarily Restricted Net Assets of $15,757 3

5 WIA Adult and Dislocated Worker Programs are currently being expended at a rate of 73% of the budget. The Youth Program is only being expended at 48% of the budget. SkillSource met with One-Stop staff on this regard, expressing concern that not all of the funds will be expended in the allocated time. SkillSource may approach the State to see if an extension on the funding will be allowed. David Hunn noted that the Form 990 has been finalized and uploaded. The SkillSource audit has also been completed, and the A133 has been accepted. Pending SkillSource Grant and Contract Proposals Seema Jain updated the Board on pending funding and development activities. SkillSource did not receive an award for the Northern-Central Virginia Ready to Work Consortium Initiative, and has two grants pending. Mark Birmingham asked what states received the Ready to Work funding. Seema Jain said the funding went to a variety of states, and that there was no discernable pattern within the awards. The closest state to receive the award was Maryland. SkillSource has requested feedback on the submitted proposal. Without any other comments or questions, the meeting adjourned at 9:51 a.m. 4

6 THE SKILLSOURCE GROUP, INC. FINANCE COMMITTEE MEETING SUMMARY SHEET SUBJECT: Acceptance of the MOU With Arlington County Government For Distribution of U.S. Department of Defense, Office of Economic Adjustment Grant and State Veterans Services Funds. The SkillSource Group, on behalf of the Northern Virginia Workforce Area #11 has received grant funds totaling $338,000 to assist regional U.S. Department of Defense (DoD) civilian contractors in the Northern Virginia region who are (or expect to be) impacted by significant funding decreases in current and projected DoD spending. The grant funding originated at the U.S. Department of Defense, Office of Economic Adjustment to the Virginia Department of Emergency Management (VDEM), to Arlington County Government. These grant funds are designed to assist dislocated workers in obtaining and retaining employment with regional businesses. Of these funds, at least $180,000 will also be used to pay for worker re-training and for workshops and seminars targeted at helping these workers identify and find new jobs. Funding is also provided for one (1) new SkillSource Group staff position (1.0 FTE). This new position is classified as a Business Outreach Specialist. Additional State funds totaling $80,000 have been awarded in order for SkillSource to solicit bids from research firms to update the 2009 SkillSource study of in-demand skills and occupations of employers in the vicinity of the new Regional Workforce Development Center, on the Woodbridge Campus of Northern Virginia Community College. This updated study will assist State and NOVA officials on developing appropriate curricula to be used at the new Workforce Center, scheduled to open in Fall The Memorandum of Agreement and budget are attached. ACTION REQUESTED: SSG Finance Committee is asked to accept the funding of $338,000 for the period of July 1, 2014 through June 30, 2015 from Arlington County Government, passed through the Virginia Department of Emergency Management, from the U.S. Department of Defense, Office of Economic Adjustment. Funding is also provided for one (1) new SkillSource Group staff position (1.0 FTE). Funds are available through June 2015 and are expected to continue into FY STAFF: David Hunn Tyna Gaylor Seema Jain

7 MEMORANDUM OF AGREEMENT BETWEEN THE ARLINGTON COUNTY GOVERNMENT REPRESENTED BY THE ARLINGTON EMPLOYMENT CENTER AND THE NORTHERN VIRGINIA WORKFORCE INVESTMENT BOARD d/b/a SKILLSOURCE, GROUP, INC. REGARDING FIDUCIARY DUTIES FOR DISTRIBUTION OF THE VIRGINIA DEPARTMENT OF EMERGENCY MANAGEMENT ( VDEM ) AWARD OF US DEPARTMENT OF DEFENSE, OFFICE OF ECONOMIC ADJUSTMENT, COMMUNITY PLANNNING ASSISTANCE FUNDS GRANT (CFDA #12.614) I. INTRODUCTION This Agreement by and between the Arlington Employment Center ( AEC ), an agency and agent of the Arlington County Board; and the Northern Virginia Workforce Investment Board d/b/a SkillSource Group, Inc. ( SkillSource ), representing Prince William, Fairfax, and Loudoun Counties, Northern Virginia Community College, and the cities of Falls Church, Manassas, and Manassas Park (collectively the Parties); serves to carry out the management and distribution of U.S. Department of Defense, Office of Economic Adjustment, Community Planning Assistance Funds granted to AEC by VDEM ( VDEM Grant ). The VDEM Grant awarded to the Arlington County Government totals Seven Hundred and Sixty Thousand, Nine Hundred and Four Dollars ($760,904) for FY The purpose of the VDEM Grant is to fund a regional comprehensive workforce development/employment program for employees of the Department of Defense contracting companies who become dislocated due to reductions in the federal budget and/or manpower reductions in the U.S. Armed Forces. The program will assist dislocated workers in obtaining and retaining employment. As per the stipulations of the VDEM Grant, AEC will act as the fiduciary agent for the VDEM Grant award with funds to be divided among the City of Alexandria, Arlington County, and SkillSource in accordance with the terms of this Agreement. II. RESPONSIBILITIES OF THE PARTIES Arlington County Government will serve as the fiscal and coordinating agent for the VDEM grant and shall: 1. Receive, process and submit to VDEM, all timely received and compliant monthly financial reports required for reimbursements for purchases, personnel expenses and contracted personnel. 2. Distribute and pay all VDEM-approved reimbursements for expenses listed in item Report quarterly to the grantor on behalf of all entities involved in the project implementation on outcome metrics for the project. 6

8 4. Serve as the primary point of contact with VDEM to ensure that all aspects of the VDEM Grant are carried out in conformance with the VDEM Grant requirements. SkillSource shall: 1. Submit to AEC completed monthly Programmatic Outcome reports as outlined in Attachment A (Programmatic Outcomes) by the 10 th of each month following the month of activity reported. Additionally, a narrative description of activities including a comparison of projected activities with actual activities is required. 2. Submit to AEC completed monthly Financial Reports in accordance with the requirements set forth in Attachment B (Financial Reports and Supporting Documentation for VDEM Grant) and Attachment C (Supporting Documentation List) of this Agreement. Submissions shall be received by AEC by the 10 th of each month for reimbursement of any and all purchases or expenditures made in relation to the VDEM Grant. The encumbrance date must not be after the invoice date or payment date. However, the encumbrance date and all supporting documentation may date back to July 1, Make available any additional supporting documentation if required by VDEM. 4. Submit all reports to: Ela Bledowski, Finance Manager Arlington Employment Center Planning & Finance Unit 2100 Washington Blvd., 1 st Floor Arlington, VA III. DURATION OF AGREEMENT This Agreement shall be effective on the date the last Party to the Agreement executes the Agreement, and shall remain in effect until June 30, IV. FUNDING AND PAYMENT 1. The amount of funds provided by AEC under this Agreement shall not exceed the actual cost of funds expended for the provision of the VDEM Grant program. The Requests for Reimbursement will be submitted using the template in Attachment E. 2. The amount of VDEM Grant funds allotted shall be in accordance with Attachment D (SkillSource Reimbursement ). However, Parties acknowledge and agree that the budgets designated for training for impacted workers and seminars by national experts may be modified at any time via transfer of any portion of budgeted VDEM 7 2

9 Grant funds to the other for the other Party s use with confirmed amendment of this document. 3. AEC shall make all reimbursement payments to SkillSource within 30 days after receiving funds from the VDEM. V. TERMINATION 4. AEC reserves the right to require submission of any additional documentation pertaining to allowable budgeted expenses incurred or services performed while implementing the project by SkillSource as required by the VDEM. The Parties may terminate this Agreement in whole or in part by giving sixty (60) days notice to the other Party, when it is in the best interest of either Party to do so based on the following grounds: 1. Lack of funding to meet the requirements of this Agreement; 2. Changes in applicable Federal, State, and Local law or policies that affect services to be rendered pursuant to this Agreement or make performance of the Agreement impossible or unduly burdensome; 3. Failure of either or both Parties to abide by applicable laws, rules, or regulations, which govern the performance of this Agreement; and 4. Material breach of any terms of this Agreement. VI. MODIFICATIONS Any modification of this Agreement, including any extension of this Agreement, and budget modifications shall be valid only when reduced to writing, duly signed by both Parties, and attached to the original of this Agreement. VII. RECORDS MAINENANCE Parties agree to retain all records pertinent to this Agreement for a period of five (5) years. VIII. ASSIGNMENT Neither Party shall assign, transfer, or convey this Agreement, or any part thereof, without the prior written consent of the other Party and VDEM. IX. INDEMNITY 8 3

10 To the extent permitted by law both Parties agree to be responsible for the acts and omissions of their agents and employees arising out of their official duties that result from activities associated with this Agreement. However, nothing in this Agreement creates a cause of action or right in any third party and nothing in this Agreement shall operate as a waiver of sovereign immunity or any other defense. Each Party certifies and represents that at all times during which this Agreement is in effect, that it maintains adequate insurance coverage at a minimum of one million dollars ($1,000,000.00) to cover any damages that may arise as a result of activities associated with this Agreement. X. INTEGRATION This Agreement, which includes Attachment A (Programmatic Outcomes); Attachment B (Financial Reports and Supporting Documentation for VDEM Grant); Attachment C (Supporting Documentation List); Attachment D (SkillSource Reimbursement ); and Attachment E (Request for Reimbursement) shall constitute the whole agreement between the Parties. There are no promises, terms, conditions, or obligations, other than those contained herein, and this Agreement shall supersede all previous communications, representations, or agreements, written, or verbal, between the Parties hereto. IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement as follows: Barbara Donnellan, County Manager 2100 Clarendon Blvd., Suite 302 Arlington, VA (Signature) (Date) David Hunn, President and CEO Northern Virginia Workforce Investment Board 8300 Boone Blvd. Vienna, VA (Signature) (Date) 9 4

11 Attachment A Programmatic Outcomes The SkillSource Group, Inc. Months Minimum program outcomes shall consist of the following as identified below. Monthly Defense Employer Outreach Visits Monthly Dislocated Worker Jobseekers Served Monthly Dislocated Worker Jobseekers Placed into New Employment Monthly Dislocated Worker Enrolled into Training Nov 2014 Projected Nov 2014 Actual Dec 2014 Projected Dec 2014 Actual Jan 2015 Projected Jan 2015 Actual Feb 2015 Projected Feb 2015 Actual Mar 2015 Projected Mar 2015 Actual Apr 2015 Projected Apr 2015 Actual May 2015 Projected May 2015 Actual Jun 2015 Projected Jun 2015 Actual Projected Totals: Actual Totals:

12 Attachment B Financial Reports and Supporting Documentation for VDEM Grant Monthly Requests for Reimbursement (Attachment E) must be delivered to the Arlington Employment Center by the 10 th of the following the reporting month. Original documents with original signatures are required for timecards, contracts, and invoice approval and must be submitted along with the monthly Request for Reimbursement of expenses. Reimbursements will not be made until all the proper documentation is approved by the grantor agency i.e. VDEM. All parties agree to provide additional supporting documentation if required by the grantor agency. Address for submission of reports: Ela Bledowski Arlington Employment Center Planning & Finance Unit 2100 Washington Blvd, 1 st Floor Arlington, VA Required documentation 1. Required documentation for purchases: a) Proof of Encumbrance Proof of encumbrance (usually a Purchase Order or contract) must be dated between July 1, 2014 and June 30, All goods and services must be received/delivered by June 30, b) Invoices Invoices, for expenses incurred, must be dated on or after the encumbrance date and before July 15, c) Proof of Payment Proof of Payment must be dated on or after encumbrance date and before July 15, Preferred proof of payment is a scanned copy of the check with a number and date. Minimum proof of payment is a detailed print screen from the accounting system that includes check number or transaction number and the date when the check or payment was cleared. For credit card payments minimum required documentation will be a copy of the online order or store receipt, the credit card bill and proof of payment of the credit card. Purchasing decisions should be made with these deadlines & requirements in mind. 11

13 2. Required documentation for all personnel expenses Accounting records and timesheets showing the names, signatures, and dates worked, the hours worked per day and the rate of pay. Only time spent serving the targeted population can be funded by this grant. 3. Required documentation for all contracted personnel Encumbrance documentation, invoices and a proof of payment are required for consultants charging per workshop or task. For consultants charging per hour, contracts or other proof of encumbrances, timecards including rate of pay, invoices and proof of payment are required. The final financial report for the month of June 2015 must be submitted no later than July 17,

14 Virginia Department of Emergency Management Grant Skillsource for: November 2014 supporting documentation must be attached to Request for Reimbursement and numbered according to this list encumbrance date must not be after invoice date or payment date Category Expense # (write on document) encumbrance documentation & date encumbrance amount invoice documentation & date invoice amount proof of payment amount

15 Attachment D for SkillSource Personnel $75,000 Supplies $1,500 Laptop $1,500 Study for Regional Center for NVCC $80,000 Seminars $40,000 Training for Impacted Workers $140,000 Total $338,000 Should more funding for Seminars and/or Training for Impacted Workers become available the budget of this document will be amended. Requests for Reimbursement and must be presented using Attachments C and E. 14

16 Attachment E Request for Reimbursment Virginia Department of Emergency Management Grant The SkillSource Group, Inc Request for Reimbursement for: Jul-14 Prior Month Cumulative Jul-14 Personnel $75, $75, Supplies $1, $1, Laptop $1, $1, Study for Regional Ctr for NVCC $80, $80, National Experts - Seminars $40, $40, Training for Impacted Workers $140, $140, Total $338, $0.00 $0.00 $338, Signature of Authorized Individual: Date: Invoice Amounts Available Balance I understand that reimbursement will not occur until all supporting documentation is submitted to and approved by the grantor agency (VDEM). 15

17 The SkillSource Group, Inc. Financial Report Notes October 31, 2014 Summary The financial results of operations for four months ended October 31, 2014 reflect a decrease in net assets of ($53,034) on a budget of ($20,090.) The Change in Net Assets comprises: Unrestricted Increase (Decrease) in Net Assets ($37,363) Temporarily Restricted Contributions Received 42,500 Release of Temporarily Restricted Net Assets ( 58,171) Total Increase (Decrease) in Net Assets ($53,034) The Unrestricted Decrease in Net Assets of ($37,363) represents net income (loss) from unrestricted sources (Ticket to Work, the Prince William Center, United Way Veteran s Grant Incentive and interest) offset by unrestricted expenses and losses in grants that are not fully cost recoverable. Ticket to Work receipts are not accrued during the fiscal year and typically are paid four to six months after employment verification. In FY 2014, SkillSource received $75,000 from the United Way for the Veterans program. At yearend, $28,472 was classified as Temporarily Restricted Contributions. In September, an additional $25,000 incentive payment was recorded for exceeding the goals set forth in the grant. Revenues are $2,670,381 on a budget of $3,950,456 resulting in an unfavorable variance of $1,547,791. This variance can be traced to not spending FY 16 One Stop Set-aside and to underexecution of WIA, VETEC and other grant budgets. Since activity is primarily from cost reimbursable grants, expenses reflect a corresponding variance. Program Activities While WIA Adult and Dislocated Worker Programs are being expended at a rate of 88% and 80%, respectively, of budget, the Youth Program is lagging at 52%, which is an increase since last month. The One-Stop Operator is adding positions, per revised plan and budget. In October, the PY 2013 Adult and Dislocated Worker Programs were fully expended and PY 2014 funds have been accessed. The VETEC execution continues at 52% for the current year. This is affected by the build-up of prior year funds. An extension is in process. 16

18 The VASAVOR grant period is from October 1 through September 30, Reimbursement of $105,270 was received on expenses totaling $127,017. The excess of DFS wages has been billed to WIA Adult with a remaining loss of $7,382 which relates to unreimbursed indirect costs. The indirect Rate (Indirect Costs/SkillSource + DFS Personnel) calculated to 21% for the first four months, which is a continued decline towards the budgeted rate of 15%. 17

19 The SkillSource Group, Inc. to Actual For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance Revenue Government Contracts 2,402,665 3,950,456 (1,547,791) 11,906,493 9,503,828 Other Restricted Income 98, ,261 (99,832) 910, ,471 Unrestricted Income 167, ,149 (33,715) 171,503 4,069 Interest Income 1,853 1,900 (47) 5,700 3,847 Total 2,670,381 4,351,765 (1,681,384) 12,994,596 10,324,215 Personnel Expenses Salaries & Wages 326, ,033 24,303 1,053, ,370 Fringe 123, ,229 4, , ,387 Total Personnel 450, ,263 29,232 1,437, ,757 Operating Expenses Annual Report - 10,000 10,000 10,000 10,000 Audit 34,250 35,350 1,100 35,350 1,100 Communications 8,246 9,765 1,519 29,295 21,049 Contracted Maintenance 5,488 5, ,500 11,012 Dues & Memberships 4,056 3,583 (473) 10,750 6,694 Equipment Costs 5,854 7,067 1,213 21,200 15,346 Financial Management 12,599 11,667 (932) 35,000 22,401 Fundraising 687 1, ,000 4,313 HR & PR Processing 11,881 8,833 (3,048) 26,500 14,619 Insurance 3,006 3, ,809 7,803 Meetings & Conferences 7,299 4,890 (2,409) 14,670 7,371 Outreach ,130 2,130 Professional Development 1,130 6,298 5,168 18,895 17,765 Professional Services 15,484 14,000 (1,484) 42,000 26,516 Rent 89,906 93,884 3, , ,746 Security Services 8,256 7,800 (456) 23,400 15,144 Supplies 11,250 23,915 12,665 71,744 60,494 Temporary Help ,000 2,000 Travel 5,650 7,556 1,906 22,668 17,018 Utilities 8,524 9, ,000 18,476 Total Operating Expenses 233, ,754 32, , ,997 Program Services Comprehensive Center Costs 19,895 18,023 (1,872) 54,069 34,174 One-Stop Center Set Aside - 79,470 79, , ,410 Outreach 28,263 33,836 5, ,508 73,245 Program Services - NoVaHF 82, ,000 57, , ,974 SSG Certification Incentive - 3,333 3,333 10,000 10,000 Training 84, ,897 61, , ,868 Transportation ,933 53, , ,918 Unobligated Funds - 117, , , ,296 Total Program Services 215, , ,702 1,774,774 1,558,885 Contractual Services Personnel 973,677 1,442, ,608 4,326,856 3,353,179 Operations 141, ,257 69, , ,894 Professional Services 93, , , , ,973 Training 611,970 1,126, ,826 3,380,388 2,768,418 Travel 2,672 9,007 6,335 27,020 24,348 Total Contractual Services 1,823,929 3,035,247 1,211,318 9,105,741 7,281,812 Total Expense 2,723,415 4,371,855 1,648,440 13,024,866 10,301,451 Change in Net Assets (53,034) (20,090) (32,944) (30,270) (22,764) 18

20 The SkillSource Group, Inc. Statement of Financial Position October 31, 2014 December 5, 2014 Assets Current Assets Cash & Equivalents Operating & Payroll 215,366 Insured Cash Sweep 627,599 Total Cash & Equivalents 842,965 Contracts Receivable 1,246,652 Other Accounts Receivable 10,000 Prepaid Expenses 33,427 Total Current Assets 2,133,044 Fixed Assets Property and Equipment 32,112 Less Accumulated Depreciation (11,325) Total Fixed Assets 20,787 Total Assets 2,153,831 Liabilities and Net Assets Current Liabilities Accounts Payable 725,318 Deferred Income 1,044 Accrued Expenses 94,451 NOVA HealthForce Funds Held in Trust 555,927 Total Current Liabilities 1,376,740 Net Assets Beginning Increase Decrease Year-to-date Unrestricted Net Assets 798,585-37, ,222 Temporarily Restricted Net Assets Consolidated Community Funding Pool - 30,000 23,673 6,327 Educating Youth Through Employment 3,070 3,070 United Way - TTW Case Manager United Way - Veterans 28,472 12,500 34,500 6,472 Total Temporarily Restricted Net Assets 31,542 42,500 58,173 15,869 Total Net Assets 830,127 42,500 95, ,091 Total Liabilities and Net Assets 2,153,831 19

21 The SkillSource Group, Inc. Workforce Investment Act Programs For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance WIA Adult SkillSource Salaries & Wages 50,122 51,946 1, , ,715 Fringe 14,579 15, ,342 31,763 Communications (33) 2,000 1,300 Professional Services 1,660 5,000 3,340 15,000 13,340 Supplies ,550 1,202 Other Operating 1,042 4,093 3,051 12,280 11,238 Comprehensive Center Costs 7,958 7,209 (749) 21,628 13,670 One-Stop Center Set Aside - 33,774 33, , ,321 Outreach 3,189 3, ,000 6,811 SSG Center Incentive - 1,667 1,667 5,000 5,000 Training-Incumbent Worker - 5,000 5,000 15,000 15,000 Training-Transitional Employment/Other 550 6,667 6,117 20,000 19,450 Unobligated - 6,588 6,588 19,764 19,764 Total SkillSource 80, ,907 61, , ,574 DFS Personnel 225, ,411 (21,905) 610, ,916 Operations 5,181 5, ,000 11,819 Training-ITAs 44,344 66,667 22, , ,656 Training-Other 5,320 8,333 3,013 25,000 19,680 Total DFS 280, ,077 3, , ,071 Indirect Costs 37,667 25,029 (12,638) 75,087 37,420 Total WIA Adult 397, ,014 53,038 1,353, ,065 WIA Dislocated Worker SkillSource Salaries & Wages 23,283 28,578 5,295 85,735 62,452 Fringe 6,765 9,177 2,412 27,531 20,766 Professional Services 1,660 5,000 3,340 15,000 13,340 Supplies ,220 1,071 Other Operating 755 1, ,690 3,935 Comprehensive Center Costs 7,958 7,209 (749) 21,628 13,670 One-Stop Center Set Aside - 45,696 45, , ,089 Outreach 3,439 3,333 (106) 10,000 6,561 SSG Center Incentive - 1,667 1,667 5,000 5,000 Training-Incumbent Worker - 5,000 5,000 15,000 15,000 Training-Transitional Employment - 6,667 6,667 20,000 20,000 Unobligated - 15,840 15,840 47,521 47,521 Total SkillSource 44, ,138 86, , ,405 DFS Personnel 263, ,344 8, , ,614 Operations 3,737 3,333 (404) 10,000 6,263 Training-ITAs 89, ,667 17, , ,575 Training-OJTs Training-Other 3,823 10,000 6,177 30,000 26,177 Total DFS 360, ,344 31,940 1,177, ,629 Indirect Costs 38,073 27,450 (10,623) 82,351 44,278 Total WIA Dislocated Worker 442, , ,447 1,649,798 1,207,312 20

22 The SkillSource Group, Inc. Workforce Investment Act Programs For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance WIA Youth SkillSource Salaries & Wages 11,286 26,685 15,399 80,055 68,769 Fringe 3,225 8,403 5,178 25,210 21,985 Other Operating (507) 140 (414) Comprehensive Center Costs 3,979 3,605 (374) 10,814 6,835 Outreach 3,182 6,107 2,925 18,320 15,138 Training-Other ,890 2,890 Unobligated - 18,488 18,488 55,463 55,463 Total SkillSource 22,226 64,297 42, , ,666 DFS Personnel 202, ,880 49, , ,023 Operations 5,793 9,983 4,190 29,950 24,157 Training-ITAs - 50,000 50, , ,000 Training-Other 90, , , , ,946 Total DFS 298, , ,733 1,755,589 1,457,126 Other Contractual Personnel 1,917 8,333 6,416 25,000 23,083 Total Contractual 300, , ,150 1,780,589 1,480,209 Indirect Costs 26,412 18,807 (7,605) 56,422 30,010 Total WIA Youth 349, , ,616 2,029,903 1,680,885 WIA Administration SkillSource Salaries & Wages 17,260 11,391 (5,869) 34,173 16,913 Fringe 5,216 3,416 (1,800) 10,248 5,032 Dues & Memberships ,500 1,850 Meetings and Conferences 4,553 2,333 (2,220) 7,000 2,447 Office Supplies (88) 1,820 1,125 Professional Services 4,157 2,000 (2,157) 6,000 1,843 Professional Development Travel (533) 430 (246) Unobligated - 10,913 10,913 32,740 32,740 Indirect Costs 78,000 82,506 4, , ,519 Total WIA Administration 111, ,310 3, , ,723 NEG OJT (1/1/2014-6/30/2015) Outreach 1,700 2, ,000 DFS OJTs 4,410 32,553 28,143 97,660 Total NEG OJT 6,110 34,553 28, ,660 - Rapid Response - Business Services (ends 9/30/2014) SkillSource Outreach 4,878 4,878-4,878 - Software 6,515 6,515-6,515 - Total RR Business Services 11,393 11,393-11,393 - WIA Incentive (7/1/2014-6/30/2015) Total - DFS ITAs (DW) ,500 - WIA Local Area Incentive - Veterans' Services (11/1/2014-4/30/2016) Contractual Personnel - 4,333 4,333 43,325 43,325 Indirect - 6,675 6,675 6,675 6,675 Total WIA Incentive - Veterans' Services - 11,008 11,008 50,000 50,000 Total WIA Cluster 1,318,190 1,848, ,655 5,543,225 4,124,985 21

23 The SkillSource Group, Inc. Department of Labor For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance Credentials to Careers (NOVA Manassas Center) SkillSource Personnel 16,825 16,380 (445) 49,140 32,315 Fringe 5,466 5, ,646 12,180 Communications ,000 1,728 Lease - 3,333 3,333 10,000 10,000 Supplies & Travel 1,325 1, ,500 3,175 Unobligated Funds - 17,844 17,844 53,531 53,531 Indirect Costs 4,657 2,936 (1,721) 8,807 4,150 Total C2C 28,545 48,541 19, , ,079 Jobs for Veterans SkillSource Salaries & Wages 5,554 9,354 3,800 28,061 22,507 Fringe 2,885 4,267 1,382 12,800 9,915 Communications ,760 1,760 Travel ,453 1,453 Outreach 2,297 2, ,348 5,051 Training-Other 32,750 32,750 98,250 98,250 Unobligated - 12,078 12,078 36,234 36,234 Total SkillSource 10,736 61,969 51, , ,170 DFS Personnel 21,428 22, ,265 44,837 Telecommunications ,284 1,284 Travel Training-ITAs 45,973 44,714 (1,259) 134,141 88,168 Total DFS 67,548 67,446 (102) 202, ,790 Other Contractual Personnel 28,170 25,149 (3,021) 75,446 47,276 Operations 3,024 2,789 (235) 8,368 5,344 Training-Other 14,592 16,167 1,575 48,500 33,908 Total Other Contractual 45,786 44,105 (1,681) 132,314 86,528 Indirect Costs 6,240 5,501 (739) 16,504 10,264 Total Jobs for Veterans 130, ,021 48, , ,752 Virginia Employment Through Entrepreneurship Consortium SkillSource Salaries & Wages 21,833 25,871 4,038 77,613 55,780 Fringe 10,641 12,237 1,596 36,711 26,070 Lease 1,415 1,415 (0) 4,244 2,829 Supplies Travel 1,022 1, ,369 2,347 Outreach 1,764 7,698 5,934 23,094 21,330 Unobligated - 13,295 13,295 39,885 39,885 Total SkillSource 36,675 61,723 25, , ,495 DFS Personnel 27,230 91,640 64, , ,690 Operations 1,500 7,510 6,010 22,529 21,029 Travel - 1,545 1,545 4,636 4,636 Total DFS 28, ,695 71, , ,355 Other Contractual Personnel 161, , ,866 1,515,086 1,353,923 Operations 120, ,791 56, , ,123 Professional Services 93, , , , ,973 Travel 2,103 5,340 3,237 16,020 13,917 Training-Other 307, , ,020 1,322,077 1,014,405 Total Other Contractual 684,919 1,373, ,834 4,121,260 3,436,341 Indirect Costs 12,474 8,295 (4,179) 24,884 12,410 Total VETEC 762,798 1,544, ,668 4,633,399 3,870,601 Total Department of Labor 921,653 1,772, ,375 5,316,085 4,394,432 22

24 The SkillSource Group, Inc. Other Government Programs For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance Metropolitan Washington Council of Governments Drivers for PRC SkillSource Personnel - 9,076 9,076 40,841 40,841 Fringe - 2,148 2,148 9,668 9,668 Insurance Transportation - 2,256 2,256 10,150 10,150 Unobligated - 12,462 12,462 56,077 56,077 Indirect Costs - 1,729 1,729 7,782 7,782 Total MWCOG-Drivers for PRC - 27,806 27, , ,127 Transportation for People with Disabilities (extended to 6/30/2015) SkillSource Transportation 885 5,966 5,081 26,846 25,961 Total MWCOG - People with Disabilities 885 5,966 5,081 26,846 25,961 Transportation for Pre-Release Work Program (extended to 6/30/2015) SkillSource Personnel - 2,790 2,790 12,553 12,553 Fringe ,972 2,972 Transportation ,780 1,780 Indirect Costs ,392 2,392 Total MWCOG-PRC Work Program - 4,377 4,377 19,697 19,697 Van Purchase for Pre-Release Work Program Revenues 135 5,778-26,000 25,865 SkillSource Personnel ,750 1,750 Fringe Insurance Van Purchase 20,922 22,200 1,278 22,200 1,278 Transportation Indirect Total MWCOG-Van Purchase 20,922 22,970 2,048 26,000 4,744 Temp Restricted Activity on Grant (20,787) - Total MWCOGS - Revenue 1,020 43,927 37, , ,650 Total MWCOGS - Expense 21,807 61,119 39, , ,529 Consolidated Community Funding Pool Revenues 30,000 20,000 (10,000) 60,000 30,000 SkillSource Personnel 15,892 15,619 (273) 46,857 30,965 Fringe 3,690 3,294 (396) 9,881 6,191 Indirect 4,091 2,914 (1,177) 8,741 4,650 Total CCFP 23,673 21,826 (1,847) 65,479 41,806 Excess (Deficit) 6,327 (5,479) 23

25 The SkillSource Group, Inc. Other Government Programs For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance TANF Employment Assistance Revenues 34,742 65,833 31, , ,758 SkillSource Personnel 17,279 16,833 (446) 50,500 33,221 Fringe 5,005 3,358 (1,647) 10,075 5,070 Communication (187) Supplies Travel 326 1, ,120 2,794 Outreach (Printing) Training-Work Experience 11,653 40,600 28, , ,147 Unobligated - 3,543 3,543 10,630 10,630 Total Direct 34,743 65,833 27, , ,127 Indirect 4,656 3,139 (1,517) 9,417 4,761 Total TANF 39,399 68,972 26, , ,888 Excess (Deficit) (4,657) (9,417) Virginia Serious and Violent Offender Re-entry Program VASAVOR (10/1/2013-9/30/2014) Revenues 4,254 66,622 62,368 66,622 62,368 DFS Personnel 6,361 26,486 20,125 26,486 20,125 Training-ITAs 1,005 25,877 24,872 25,877 24,872 Total DFS 7,366 52,363 44,997 52,363 44,997 Other Contractual Training-Other 2,941 14,259 11,318 14,259 11,318 Total Other Contractual 2,941 14,259 11,318 14,259 11,318 Indirect 1,329 4,081 2,752 4,081 2,752 Total VASAVOR 11,636 70,703 59,067 70,703 59,067 Excess (Deficit) (7,382) (4,081) VASAVOR (10/1/2014-9/30/2015) Revenues 7,503 2,207 (5,296) 152, ,332 DFS Personnel 5,093 4,364 (729) 76,835 71,742 Training-ITAs/OJTs ,000 48,000 Total DFS 5,093 4,364 (729) 124, ,742 Other Contractual Training-Other 2, (2,070) 28,000 25,590 Total Other Contractual 2, (2,070) 28,000 25,590 Indirect 1,064 - (1,064) 11,838 10,774 Total VASAVOR 8,567 4,704 (3,863) 164, ,106 Excess (Deficit) (1,064) (11,838) Total Other Government 77, , , , ,108 24

26 The SkillSource Group, Inc. Other Programs For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance NoVaHealthForce Balance Forward, July 1, ,071 Cash Receipts 387, , , ,000 32, ,927 SkillSource Program Expenses 82, ,000 57, , ,974 Total NoVAHealthForce 82, ,000 57, , ,974 Ending Balance 473,901 Project Educating Youth Through Employment (Summer 2014) Balance Forward at 7/1/2014 3,070 3,070 Revenue Government 85, ,486 (284,183) 369, ,183 Restricted Income (600) Total Income 85, ,486 (284,183) 369, ,583 Expenses SkillSource Personnel 1, (419) 831 (419) Fringe (144) 208 (144) Travel Outreach 2,186 6,090 3,904 6,090 3,904 Training-Other 76, , , , ,553 Total SkillSource 80, , , , ,966 DFS Personnel 1,680 7,231 5,551 7,231 5,551 Operations 2,394 4,907 2,513 4,907 2,513 Telecommunications Travel 423 3,420 2,997 3,420 2,997 Training-Other - 124, , , ,330 Total DFS 4, , , , ,049 Indirect 684 1, , Total Expense 85, , , , ,583 Current Year Net Income (Loss) - (417) Excess (Deficit) 3,070 3,070 United Way Veterans (ends 08/31/14; Incentive Period Extension) Balance Forward at 7/1/ ,472 28,472 Total Income 12,500 53,472 40,972 53,472 40,972 Outreach 3,300 14,974 11,674 14,974 11,674 Contractual Personnel 31,200 33,358 2,158 33,358 2,158-5,139 5,139 5,139 5,139 Total UW Veterans 34,500 53,471 18,971 53,471 18,971 Current Year Net Income (Loss) (22,000) Excess (Deficit) 6,472 25

27 The SkillSource Group, Inc. Other Programs For Four Months Ended October 31, 2014 December 5, 2014 Actual Current Variance Annual Balance United Way Ticket to Work Case Manager (1/1/14-12/31/14)* Total Income 3,303 4,441 1,138 4,441 1,138 Salaries 1,758 2, , Fringe 1,972 1,219 (753) 1,219 (753) Communications (140) Supplies (1,411) - 1,411-1,411 Travel (101) Indirect (505) 548 (231) Total UW TTW CM 3,303 4, ,440 1,137 Excess (Deficit) - Wachovia Foundation Balance Forward 1,044 Less: Training ,044 1,044 Balance -Deferred Income 1,044 Ticket to Work Total Income 4,940 50,000 (45,060) 150, ,060 Salaries 13,807 16,947 (3,140) 50,840 37,033 Fringe 8,609 8,827 (218) 26,482 17,873 Other 3,394 5,633 2,239 16,900 13,506 Indirect 4,683 3,971 (712) 11,913 7,230 Total Expenses 30,493 35,378 (1,831) 106,135 75,642 Excess (Deficit) (25,553) 43,865 Unrestricted Contributions 110 4,167 (4,057) 12,500 12,390 Other 12,553-12,553 - (12,553) Interest 1,853 1,900 (47) 5,700 3,847 Total Income 14,516 6,067 8,449 18,200 3,684 Personnel 3,278 8,188 4,910 24,564 21,286 Fringe 7,139 10,759 3,620 32,277 25,138 Fundraising 687 1, ,000 4,313 Professional Services ,000 1,900 Supplies 1, (689) 1,000 (22) Other 1,853 - (1,853) - (1,853) Indirect 2,176 2, ,757 6,581 Total Expenses 16,255 24,533 8,278 73,598 57,343 Excess (Deficit) (1,739) (55,398) 26

28 The SkillSource Group, Inc. For Four Months Ended October 31, 2014 December 5, 2014 Prince William Comprehensive Center Current Actual Variance Annual Balance Revenue Unrestricted Income 149, ,982 2, , ,115 Personnel Expenses Salaries & Wages 24,531 23,056 (1,475) 69,167 44,636 Fringe 14,733 13,382 (1,351) 40,146 25,413 Total Personnel 39,264 36,438 (2,826) 109,313 70,049 Operating Expenses Communications 4,093 4, ,782 8,689 Contracted Maintenance 5,488 5, ,500 11,012 Dues & Memberships ,000 1,000 Equipment Costs 3,629 2,967 (662) 8,900 5,271 Rent 75,786 75,016 (770) 225, ,262 Security Services 8,256 7,800 (456) 23,400 15,144 Supplies 1,759 2, ,000 6,241 Utilities 8,524 9, ,000 18,476 Total Operating Expenses 107, , , ,095 Total Expense 146, ,981 (2,818) 431, ,144 Change in Net Assets 3,032 3,001 (31) 9,003 5,971 SkillSource Group Indirect Costs Current Actual Variance Annual Balance Personnel Expenses Salaries & Wages 102,770 80,748 (22,022) 242, ,474 Fringe 33,028 24,770 (8,258) 74,309 41,281 Total Personnel 135, ,518 (30,280) 316, ,755 Operating Expenses Annual Report - 10,000 10,000 10,000 10,000 Audit 34,250 35,350 1,100 35,350 1,100 Communications 2,416 2, ,800 6,384 Dues & Memberships 3,406 2,333 (1,073) 7,000 3,594 Equipment Costs 2,224 4,100 1,876 12,300 10,076 Financial Management Services 12,599 11,667 (932) 35,000 22,401 Payroll & HR 10,660 8,833 (1,827) 26,500 15,840 Insurance 3,006 3, ,500 6,494 Meetings & Conferences 68 1,667 1,599 5,000 4,932 Outreach 608 7,667 7,059 23,000 22,392 Professional Development - 3,333 3,333 10,000 10,000 Professional Services 1,190 1, ,000 3,810 Rent 12,705 14,120 1,415 42,360 29,655 Supplies 3,813 12,367 8,554 37,100 33,287 Temporary Help ,000 2,000 Travel 257 1,667 1,410 5,000 4,743 Total Operating Expenses 87, ,537 34, , ,708 Total Expense 223, ,054 4, , ,463 27

29 THE SKILLSOURCE GROUP, INC. FINANCE COMMITTEE MEETING SUMMARY SHEET SUBJECT: Updated FY 2015 SkillSource Allocations The revised FY 2015 SkillSource budget reflects revenues and expenses for programs and services to operate Northern Virginia SkillSource One Stop Employment Centers and other programs and initiatives from July 1, 2014 to June 30, This revision includes recently approved new funding and, more significantly, revised expenditure reallocations. Projected revenues are $12,991,523, an increase of $77,582 from the last budget approved by the Board of Directors. The increase includes WIA incentive awards and the United Way Ticket to Work incentive payment and resulting changes in allocated indirect costs. Projected expenses are $13,024,868, an increase of $78,145, which corresponds to the new grant funding and changes in allocated indirect costs. The budget includes significant revisions in One-Stop operations as follows: Decrease in WIA Adult and Dislocated Worker personnel costs of $37,321 and $87,679, respectively resulting from staffing changes Increase in WIA Dislocated Worker ITA s of $125,000 to $320,000 Reduction from 12% to 8% in transfers from the WIA Dislocated Worker to the Adult program The WIA training budget increases from 28% to 32% as a result of reallocating funds from contractual personnel. Other key budget assumptions are unchanged. The FY 2015 budget reflects a decrease in Net Assets of $33,345, a reduction of $563 resulting from allocation of indirect costs. Changes in net assets are the result of unrestricted activities including Ticket to Work, fund-raising, Prince William Center management fee, and unrecoverable indirect costs. The approval of the full allocation for WIA Adult and Dislocated Worker PY 2014 authorization and the changes in One-Stop operations included in this budget revision will provide for a revised One-Stop budget authorization. The revised budget was approved by the SkillSource Board on December 21, 2014 and is provided to the Finance Committee for the record. STAFF: Tyna Gaylor David Hunn 28

30 Comparison FY 2015 to Unaudited ed FY 2015 FY 2014 FY 2014 FY 2014 Discussion of Increase (Decrease) - ed FY 2015 to FY 2014 Revenues Government contracts $ 11,903,421 $ 12,474,442 $ 7,709,964 (571,021) Reduction in Carry-In and PY14 WIA funds Other restricted income 910,900 1,154, ,763 (243,382) Reduction in NovaHF Unrestricted income 171, , ,140 67,537 Increase in TTW revenue Interest 5,700 6,000 5,716 (300) Total Revenues 12,991,523 13,738,689 8,860,583 (747,166) Expenditures SSG Personnel costs Salaries 1,053,100 1,000,218 1,006,197 52,882 1% CPI and health market adjustment & grant funded drivers Fringe benefits 384, , ,068 4,020 Total Personnel Costs 1,437,788 1,380,886 1,376,265 56,902 Operating Expenses Annual report production 10,000 10,000 7,331 - Audit 35,350 33,000 33,000 2,350 Communications 29,295 29,350 23,442 (55) Contracted maintenance 16,500 19,246 16,624 (2,746) Dues and memberships 10,750 21,000 20,100 (10,250) LEADVA & Leadership Fairfax in FY14 ($11,100) not in FY15 Equipment leases & maintenance 21,200 19,220 16,907 1,980 Financial mgt services 35,000 38,000 29,980 (3,000) Fundraising 5,000 15,000 1,459 (10,000) Eliminated fund-raising professional fees Insurance (business) 10,809 8,400 6,398 2,409 Madison Farms (PWSSC) and Admin increases offset by elimination of C2C rent Leases 281, , ,494 (8,591) Meetings and conference fees 14,670 19,000 12,961 (4,330) Office Supplies 71,744 93,430 52,099 (21,686) Reduced budget to historic cost Outreach 2,130 34,700 - (32,570) Classifications to program outreach and change in contractor Payroll & HR Services 26,500 19,725 18,170 6,775 New Lindsey Business Group contract Professional services 42,000 83, ,119 (41,222) Jobs for the Future study in FY14 ($130,950) not in FY15 Security 23,400 23,400 22,956 - Staff training & development 18,895 19,500 10,751 (605) Temporary staffing 2,000 5, (3,000) Travel (staff) 22,668 16,654 17,236 6,014 Historic, increase in travel for home-based staff Utilities 27,000 27,460 23,402 (460) Total - SSG Operating 706, , ,148 (118,987) SSG Program Costs Career Expo Comprehensive center costs 54,069 44,000 46,573 10,069 Increase in allocable space at PW Center In-kind voucher expense - 192,503 - (192,503) Vouchers expended in FY14 Incumbent worker training 30,000 50,000 - (20,000) Reduction in funding SSG Incentive 10, ,000 4 Eligible centers at $2,500 each; none eligible in FY14 On Stop Center FY16 Set Aside 238, ,400 - (29,990) Estimate for 120 days of One Stop personnel Other training support 346, , , ,205 EYE program work experience paid through SSG, previously in Contractual Outreach 101, ,459 87,847 (47,951) Reduction in grant funded outreach and savings from new contractor Program services 420, , ,188 (203,264) NovaHF - Estimated on most recent year experience Transitional Employment Work Exp 161, ,944-30,856 Grant funded Bus Purchase (Cash Flow) 22,200 26,000 - (3,800) Bus gas 10,752 12,115 - (1,363) Program transportation & vouchers 28,626 90,784 28,708 (62,158) Reduction in MWCOG and WIA grant funding Unobligated Funds 351, , ,194 Cost reimbursement grant award carry-in not assigned to line items Total - SSG Program 1,774,774 1,949, ,714 (174,705) Subcontract services - DFS Skillsource Ctr personnel 2,634,641 2,727,404 2,353,256 (92,763) Reduction of 3 FTEs, vacant position and 5% vacancy rate Skillsource Ctr operations 95, ,380 62,166 (13,348) Historic cost Subtotal - Operations 2,729,673 2,835,784 2,415,422 (106,111) OJT 97, ,000 27,007 (42,340) Available grant funding ITAs 881,562 1,243, ,764 (362,142) Reduction in availability of WIA funds for ITAs Other training and services 759,330 1,337, ,128 (577,670) Reclassification of EYE payments from Contractual to SSg Subtotal - Training 1,978,552 2,720,704 1,236,899 (742,152) Total Subcontract - DFS 4,708,225 5,556,488 3,652,321 (848,263) Other subcontract and programmatic services Contractual personnel 1,692,215 1,513, , ,034 Per Grant budgets Contractual operations 538, , , ,761 Per Grant budgets Other training and services 1,401,836 1,527, ,926 (125,493) Per Grant budgets Professional Services 737, , ,635 (27,147) Per Grant budgets Travel 27,020 15,343 8,603 11,677 Total Subcontract - Others 4,397,516 4,225,684 2,376, ,832 Total Expenditures 13,024,868 13,938,088 8,926,566 (913,220) Increase (Decrease) in Net Assets $ (33,345) $ (199,399) $ (65,983) $ 166,055 Affects of Temporary Restrictions $ - $ 201,576 $ 201,576 $ (201,576) Inc (Dec) - Unrestricted $ (33,345) $ 2,177 $ 135,593 $ (35,521) The SKILLSOURCE GROUP, INC. Fiscal Year 2015 Consolidated 29

31 The SkillSource Group, Inc. FY 2015 (FY15 Revised SSG Nov SSG BoD ) WIA Cluster Other Federal Other Govt Restricted Unrestricted WIA WIA WIA WIA NEG Business WIA WIA MWCOG DSS VASAVOR VASAVOR NOVA Project UW UW Indirect Total Admin Adult Youth Disl. Wkr. OJT Services Inc - VET Incentive C2C J4VETS VETEC Drivers TTW AIBVan Buy CCFP TANF Hlthfrce EYE Veterans TTW CM Fndtns PWSSC TTW Unrestricted Costs Revenues Government contracts 11,903, ,930 1,353,040 2,029,903 1,649, ,660 11,393 50,000 2, , ,063 4,633, ,127 26,846 19,696 26,000 60, ,500 66, , , Other restricted income 912, , ,472 5,708 1, , Unrestricted income 171, , ,000 12,500 0 Interest 5, ,700 0 Total Revenues 12,992, ,930 1,353,040 2,029,903 1,649, ,660 11,393 50,000 2, , ,063 4,633, ,127 26,846 19,696 26,000 60, ,500 66, , , ,486 53,472 5,708 1, , ,000 18,200 0 Expenditures Personnel costs Salaries 266, , ,244 Program Salaries 717,125 34, ,837 80,055 85, ,140 28,061 77,613 40, ,553 1,750 46,857 50, , , PWSSC Salaries 69, , Fringe benefits 384,688 10,248 46,342 25,210 27, ,646 12,800 36,711 9, , ,881 10, , ,146 26,482 32,277 74,309 Total Personnel Costs 1,437,788 44, , , , ,786 40, ,324 50, ,524 2,165 56,738 61, , , ,313 77,322 56, ,552 Operating Expenses Annual report production 10, ,000 Audit 35, ,350 Communications 19, , ,000 1, , ,000 Contracted Maintenance 16, , Dues and memberships 10,750 2, , ,000 Equipment lease 16, , ,800 Equipment maintenance 4, , ,500 Financial mgt services 35, ,000 Fundraising 5, ,000 0 Hiring 2, ,000 Insurance (business) 10, ,500 ISP services 10, , ,800 Lease of Space 281, , , , ,360 Meetings and conference fees 14,670 7,000 1, , ,000 Office Supplies 31,794 1,250 1, , , , ,000 14,400 Payroll & HR Services 26, ,500 Postage 5, ,500 Printing Services 5, ,000 Professional services 42,000 6,000 15, , ,000 5,000 Security 23, , Software 24, , ,000 13, ,000 Staff Training 18, , , , ,000 Subscriptions 3, ,000 Taxes & licenses 1, ,200 Temporary Help 2, ,000 Travel (staff) 22, , , ,453 3, , , ,000 Utilities 27, , Total - SSG Operating 706,564 18,250 30, , , ,500 3,213 7, , ,631 15,400 8, ,910 SSG Program Costs Comprehensive center costs 54, ,628 10,814 21, Incumbent worker training 30, , , SSG Incentive 10, , , One Stop Center Staff Set Aside (120 days) 238, , , Other training support 346, , , , , ,000 Outreach 101, ,000 18,320 10,000 6,000 5, ,348 23, ,068 14, Program services 420, , Transitional Employment Work Exp 161, , , , SSG Bus Purchase 22, , SSG Bus gas 10, , Transportation & vouchers 28, ,846 1, Unobligated Funds 351,296 32,740 19,764 55,463 47, ,531 36,234 39,885 56, , Total - SSG Program 1,774,774 32, ,712 87, ,238 6,000 5, , ,832 62,979 66,227 26,846 1,780 22, , , ,541 14, , ,000 Subcontract services - DFS Skillsource Ctr personnel 2,634, , , , , , ,486 76, , Skillsource Ctr operations 84, ,000 29,950 10, , , Telecommunications 1, , Travel 8, , , Subtotal - Operations 2,729, , , , , , ,486 76, , OJT 97, , ITAs 881, , , , , , ,877 48, , Other training and services 759, , ,000 30, ,