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33 Seniors First, Inc. Board of Director 2015 * Term Lengths are 2 years with a maximum of 5 cycles for a total of 10 years Name Board Position Business Affiliation & Title # Continuous Yrs Term Expires Gordon Arkin Larry Stewart Margaret Sauer Chairman 1st Vice Chair/ Vice President 2 nd Vice Chair Foley & Lardner, Retired Attorney Seaside National Bank & Trust Client Advisor UCF School of Social Work Retired Professor Edward Casoria Treasurer Private Practice Attorney Melvin Pittman Janis Austin Kim Blaylock Carol Clark Steve Fisher John Gay Michelle Hage Robert Higgins Jerry Kassab Secretary Member At Large Member At Large Member At Large Member At Large Orange County Community & Environmental Services, Retired Director Darden Restaurants Accounting Dept. Coordinator Fry Hammond Barr Advertising Sr. Account Supervisor Orange County Government Aide to Mayor Jacobs TD Bank Regional Vice President New New Member At Large Cresa, Managing Partner Member At Large Orlando Health, Retired Manager Member At Large Lowndes Drosdick, Doster, Kantor & Reed, Attorney Member At Large Aspire Health Partners, President Bruce Marin Member At Large Foley & Lardner, Attorney New Gaby Ortigoni Allison Ramirez Margaret Sauer Member At Large Member At Large Member At Large Hispanic Business Initiative Fund Vice President Lowndes, Drosdick, Doster, Kantor & Reed, Attorney UCF School of Social Work Retired Professor Jim Shapiro Member At Large Retired Businessman New Jonathan Ware, MD Lavon Williams Member At Large Member At Large Orlando Health, Medical Director of Population Health Management Orange County Government Neighborhood Preservation Manager New

34 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION Years Ended December 31, 2013 and 2012

35 C O N T E N T S Page Number REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 1 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statements of Financial Position 3 Consolidated Statements of Activities and Changes in Net Assets 4 Consolidated Statements of Cash Flows 6 Consolidated Statements of Functional Expenses 7 Notes to Consolidated Financial Statements 9 SUPPLEMENTAL INFORMATION Report of Independent Certified Public Accountants on Supplemental Information 18 Schedule of Expenditures of Federal Awards 19 Schedule of Expenditures of State Financial Assistance 20 Supplemental Schedule of Functional Expenses By Service 21 Report of Independent Certified Public Accountants 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 23 Report of Independent Certified Public Accountants on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter , Rules of the Auditor General 25 Schedule of Findings and Questioned Costs 27

36 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors Seniors First, Inc. and Affiliate Orlando, Florida We have audited the accompanying consolidated financial statements of Seniors First, Inc. and Affiliate (the Organization ), a Florida corporation, which comprise the consolidated statements of financial position as of December 31, 2013 and 2012, and the related consolidated statements of activities and changes in net assets, cash flows, and functional expenses for the years then ended, and the related notes to the consolidated financial statements. Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated 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 consolidated 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 consolidated financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated 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

37 To the Board of Directors Seniors First, Inc. and Affiliate Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Seniors First, Inc. and Affiliate as of December 31, 2013 and 2012, and the results of its activities and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 7, 2014, on our consideration of the Organization s internal control over financial reporting and 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization s internal control over financial reporting and compliance. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida May 7,

38 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31, 2013 and 2012 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,016,274 $ 705,643 Accounts receivable, net 997,323 1,032,043 Prepaids and other assets 85, ,675 TOTAL CURRENT ASSETS 2,099,251 1,840,361 PROPERTY AND EQUIPMENT, NET 1,613,431 1,757,256 OTHER ASSETS Certificates of deposit 658, ,932 Funded depreciation account 162, ,101 Beneficial interest in assets held by Community Foundation of Central Florida 1,841,684 1,660,235 Deposits 3,250 3,250 TOTAL OTHER ASSETS 2,666,257 2,541,518 TOTAL ASSETS $ 6,378,939 $ 6,139,135 CURRENT LIABILITIES Accounts payable $ 288,006 $ 259,649 Accrued payroll and related expenses 104, ,521 Deferred revenue 579, ,761 COMMITMENTS AND CONTINGENCIES LIABILITIES AND NET ASSETS TOTAL CURRENT LIABILITIES 971,318 1,020,931 NET ASSETS Unrestricted 5,139,959 4,873,994 Temporarily restricted 162, ,101 Permanently restricted 105, ,109 TOTAL NET ASSETS 5,407,621 5,118,204 TOTAL LIABILITIES AND NET ASSETS $ 6,378,939 $ 6,139,135 The accompanying notes are an integral part of the consolidated financial statements

39 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS Year Ended December 31, 2013 Temporarily Permanently Unrestricted Restricted Restricted Total SUPPORT AND REVENUE Grant and contract revenue $ 6,036,007 $ - $ - $ 6,036,007 Medicaid waiver revenue 877, ,685 Fundraising support 420, ,248 Other contract services 81, ,606 Fees for services 105, ,190 Contributions from program clients 21, ,179 Other income 111, ,594 Donated services and rent 331, ,900 TOTAL SUPPORT AND REVENUE 7,985, ,985,409 PROGRAM AND SUPPORT SERVICES EXPENSES Program Services In-home services 3,346, ,346,726 Nutrition services 1,991, ,991,844 Other 1,302, ,302,120 Support Services Management and general 1,074, ,074,830 Fundraising 181, ,033 TOTAL PROGRAM AND SUPPORT SERVICES EXPENSES 7,896, ,896,553 OPERATING INCOME 88, ,856 CHANGE IN BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FOUNDATION OF CENTRAL FLORIDA 200, ,561 CHANGE IN NET ASSETS 289, ,417 TRANSFER OF NET ASSETS (23,452) 23, NET ASSETS - BEGINNING OF YEAR 4,873, , ,109 5,118,204 NET ASSETS - END OF YEAR $ 5,139,959 $ 162,553 $ 105,109 $ 5,407,621 The accompanying notes are an integral part of the consolidated financial statements

40 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (Continued) Year Ended December 31, 2012 Temporarily Permanently Unrestricted Restricted Restricted Total SUPPORT AND REVENUE Grant and contract revenue $ 6,184,671 $ - $ - $ 6,184,671 Medicaid waiver revenue 1,376, ,376,069 Fundraising support 430, ,372 Other contract services 97, ,013 Fees for services 111, ,569 Contributions from program clients 27, ,803 Other income 105, ,479 Donated services and rent 369, ,500 TOTAL SUPPORT AND REVENUE 8,702, ,702,476 PROGRAM AND SUPPORT SERVICES EXPENSES Program Services In-home services 3,793, ,793,167 Nutrition services 2,206, ,206,386 Other 1,337, ,337,696 Support Services Management and general 1,060, ,060,093 Fundraising 196, ,366 TOTAL PROGRAM AND SUPPORT SERVICES EXPENSES 8,593, ,593,708 OPERATING INCOME 108, ,768 CHANGE IN BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FOUNDATION OF CENTRAL FLORIDA 191, ,337 CHANGE IN NET ASSETS 300, ,105 TRANSFER OF NET ASSETS 43,167 (43,167) - - NET ASSETS - BEGINNING OF YEAR 4,530, , ,109 4,818,099 NET ASSETS - END OF YEAR $ 4,873,994 $ 139,101 $ 105,109 $ 5,118,204 The accompanying notes are an integral part of the consolidated financial statements

41 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2013 and CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 289,417 $ 300,105 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 155, ,160 Gain on disposal of property and equipment (20,617) (6,500) Change in beneficial interest in net assets of Community Foundation of Central Florida (200,561) (191,337) Changes in: Accounts receivable 34,720 52,559 Prepaids and other assets 17,021 (31,525) Accounts payable 28,357 (71,069) Accrued payroll and related expenses (25,289) 17,526 Deferred revenue (52,681) 177,780 NET CASH PROVIDED BY OPERATING ACTIVITIES 225, ,699 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (12,479) (448,163) Proceeds from sale of equipment 21,500 6,500 Redemptions of certificates of deposit 356, ,000 Purchase of certificates of deposit (274,000) (236,000) Change in funded depreciation account and certificates of deposit (25,290) 43,785 Contributions (to) from Community Foundation of Central Florida, net 19,112 38,552 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 84,843 (363,326) NET INCREASE IN CASH AND CASH EQUIVALENTS 310,631 19,373 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 705, ,270 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,016,274 $ 705,643 The accompanying notes are an integral part of the consolidated financial statements

42 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES Year Ended December 31, 2013 Program Services Support Services Management Fundraising In-Home Nutrition and and Total Services Services Other General Development Expenses Salaries and Related Expenses $ 1,968,076 $ 624,389 $ 597,471 $ 700,706 $ 70,832 $ 3,961,474 Contracted Services 920,514 2,835 59,552 11, ,494 Travel 108,433 29,667 5,345 4,788 1, ,273 Occupancy 21,891 3,509 39,896 29,825 1,469 96,590 Communications and Postage 4,989 6,554 11,644 18, ,745 Printing and Supplies 1,821 1,255 1,423 39,417 4,284 48,200 Equipment and Vehicles 14, , ,941 Meals - 1,072, ,072,503 Insurance 14,443-50,501 73, ,526 Professional Fees - 4,152 14,951 68,922 68, ,960 Program Supplies 282,672 6, ,578 1,309 3, ,578 Depreciation 8,390-99,509 47, ,421 Other ,004 29,934 69,948 Donated Services and Rent - 240,000 52,000 39, ,900 Total Expenses $ 3,346,726 $ 1,991,844 $ 1,302,120 $ 1,074,830 $ 181,033 $ 7,896,553 The accompanying notes are an integral part of the consolidated financial statements

43 SENIORS FIRST, INC. AND AFFILIATE CONSOLIDATED STATEMENTS OF FUNCTIONAL EXPENSES (Continued) Year Ended December 31, 2012 Program Services Support Services Management Fundraising In-Home Nutrition and and Total Services Services Other General Development Expenses Salaries and Related Expenses $ 2,393,520 $ 663,103 $ 610,847 $ 748,902 $ 76,129 $ 4,492,501 Contracted Services 930,502-71, ,002,003 Travel 130,875 33,864 6,084 3,689 1, ,333 Occupancy 19,315 8,714 41,974 28,871 1, ,133 Communications and Postage 5,601 7,275 11,350 22, ,370 Printing and Supplies 108-1,844 44,622 36,012 82,586 Equipment and Vehicles 12, ,727 2, ,903 Meals - 1,153, ,153,291 Insurance 16, ,177 66, ,157 Professional Fees 905 7,232 17,416 65,071 78, ,432 Program Supplies 267,840 12, , ,610 Depreciation 12,155-74,670 48, ,160 Other 2,921 2,672 20,041 29,159 1,936 56,729 Donated Services and Rent - 318,000 51, ,500 Total Expenses $ 3,793,167 $ 2,206,386 $ 1,337,696 $ 1,060,093 $ 196,366 $ 8,593,708 The accompanying notes are an integral part of the consolidated financial statements

44 SENIORS FIRST, INC. AND AFFILIATE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2013 and 2012 NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Organization Seniors First, Inc. ( Seniors First ) is a not-for-profit organization created to provide services that enhance the quality of life by maintaining the independence and dignity and social well-being of the elderly and disabled adult residents of Central Florida. Seniors First provides nutrition services, Meals on Wheels, transportation, social services, case management, in-home services, personal care, guardianship, homemaker services, and a variety of other services for the elderly and disabled. Seniors First receives funding from various sources, principally federal, state, and local grants. Seniors First also receives support and revenue from the United Way, foundations, businesses, program clients, and the general public. In 1998, Seniors First created and incorporated Seniors First Foundation, Inc. (the Foundation ) to attract and administer funds for the benefit of Seniors First. The Foundation and Seniors First have common board members and management and, as such, the Foundation is considered an affiliate of Seniors First. These consolidated financial statements include the accounts of Seniors First and the Foundation (collectively, the Organization ). All significant intercompany transactions have been eliminated in the consolidation. Cash and Cash Equivalents The Organization considers all highly liquid financial instruments with a maturity of three months or less at date of purchase to be cash equivalents, except for those classified as certificates of deposit. Accounts Receivable Accounts receivable represents amounts due from the federal and state programs, businesses and program clients. Accounts receivable is reduced by an allowance for doubtful accounts. The Organization establishes an allowance for doubtful accounts based on a number of factors, including an analysis of the age of accounts, an assessment of general economic trends and conditions, and circumstances related to individual accounts. Changes in these estimates are charged or credited to the results of activities in the period of the change. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote

45 NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property and Equipment Property and equipment with an acquisition value of $1,000 or more are recorded at cost, if purchased, or at estimated fair market value if donated. Depreciation and amortization is provided using the straight-line method over the estimated useful lives of the individual assets. The estimated lives of significant property and equipment categories are as follows: Furniture and equipment Building and improvements Vehicles 3-20 Years 5-40 Years 5-10 Years Certain vehicles were acquired with funds received under grants from the Florida Department of Transportation (the Department ). Grants received during the years ended December 31, 2013 and 2012 totaled $-0- and $306,345, respectively. The Organization retains the use of these vehicles as long as they are used to carry out the service for which the original grant was provided. The Organization expects to continue using the vehicles for their designed purpose and to retain the right to the continued use of these assets in the future. The vehicles acquired under these Department grants have a net book value of approximately $567,000 and $667,000 at December 31, 2013 and 2012, respectively. Net Assets Net assets and changes in net assets are presented based on the existence or absence of donor-imposed restrictions. In these consolidated financial statements, net assets are reported as follows: Unrestricted - Net assets not subject to donor-imposed restrictions. Temporarily Restricted - Net assets subject to donor-imposed stipulations that can be fulfilled by actions of the Organization and/or the passage of time. Temporarily restricted assets as of December 31, 2013 and 2012 consisted of a cash reserve required by a grantor of approximately $163,000 and $139,000, respectively, for vehicle replacement. During 2013 and 2012, the Organization added approximately $23,000 and $23,000, respectively, to the reserve. The funding, which is drawn from unrestricted cash, is based upon the scheduled depreciation of vehicles included in the replacement program. Approximately $66,000 was withdrawn from the reserve for the purchase of vehicles during 2012, and no funds were withdrawn from the reserve in The transfers from (to) the unrestricted and temporarily restricted funds that net approximately $24,000 and ($43,000) are reflected on the statements of activities and changes in net assets as transfer of net assets for the years ended December 31, 2013 and 2012, respectively

46 NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net Assets (Continued) Permanently Restricted - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Organization. Permanently restricted net assets at December 31, 2013 and 2012, represents the original contribution of $105,109 for the Alan Litz Endowment. Income generated from the investment of the endowment may be used without restriction by the Organization; whereas, the original principal balance is to remain intact. Revenue Recognition Support received under grants and contracts with state, local, and private sources is recorded as revenue, based upon the terms of the grant or contract, which generally provide that revenue is earned when the related costs are incurred. Funds received in excess of expenditures are recorded as deferred revenue. Expenditures in excess of funds received are recorded as accounts receivable, to the extent that funds remain available under the applicable grant. Donated Services and Rental Space A significant number of unpaid volunteers donate their services in support of all program areas of the Organization. Services include delivery of meals, senior companionship, recreation leaders, and community care for the elderly services. No amounts have been reflected in these consolidated financial statements for these donated services. The Organization also receives certain services for its guardianship program and utilizes space that is provided at no charge for its nutrition programs. Based on management s estimate, the fair value of these services and rents approximated $331,900 and $369,500 for the years ended December 31, 2013 and 2012, respectively, and is reflected in the consolidated financial statements as both revenue and expenses. Donations Contributions and donations are considered to be available for unrestricted use unless specifically restricted by the donor. Income Taxes Seniors First and the Foundation are not-for-profit corporations organized under the laws of the state of Florida and have been granted recognition of their tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Accordingly, income earned in furtherance of their tax-exempt purposes is exempt from federal and state income taxes and, as a result, these consolidated financial statements include no provision or liability for income taxes

47 NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes (Continued) As of December 31, 2013, with few exceptions, the Organization is no longer subject to income tax examinations by United States federal taxing authorities for any tax years prior to the past three tax years. Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statements of functional expenses. Accordingly, certain costs are directly attributed to the specific program or supporting service, and other costs have been allocated based upon relationships of units provided, relative time spent by employees of the Organization, and other criteria. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The carrying values of the Organization s financial instruments approximate their fair value. Subsequent Events In preparing the consolidated financial statements, the Organization has evaluated events and transactions for potential recognition or disclosure through May 7, 2014, the date the consolidated financial statements were available to be issued. NOTE 2 - ACCOUNTS RECEIVABLE Accounts receivable consists of the following at December 31, 2013 and 2012: Receivable from state and local sources $ 423,051 $ 342,075 Receivable from federal sources 405, ,638 Other receivables 170, ,138 Total accounts receivable 999,058 1,034,851 Allowance for doubtful accounts (1,735) (2,808) Net accounts receivable $ 997,323 $ 1,032,

48 NOTE 3 - FAIR VALUE MEASUREMENTS The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Quoted market prices were used to value the Organization s Level 1 assets and consist principally of exchange-traded certificates of deposit and money market mutual funds. The Organization s Level 2 financial instruments consist of certificates of deposit held in FDIC-insured banks, and their value is based on observable interest rates. The Organization s Level 3 financial instruments consist of beneficial interests in assets held by Central Florida Foundation, Inc. ( CFF ), whose investments in Level 3 pooled investment funds consist of Hedge Fund of Funds, Absolute Return Pool, and Private Equity Fund of Funds, the fair values of which are based on the net asset values of the related funds (see Note 4). The following tables set forth, by level, within the fair value hierarchy, the Organization s investments measured at fair value as of December 31, 2013 and 2012: Fair Value Measurements As of December 31, 2013 Level 1 Level 2 Level 3 Total Certificates of deposit $ 302,796 $ 518,527 $ - $ 821,323 Beneficial interest in assets held by CFF - - 1,841,684 1,841,684 Total $ 302,796 $ 518,527 $ 1,841,684 $ 2,663,007 Fair Value Measurements As of December 31, 2012 Level 1 Level 2 Level 3 Total Money market mutual funds $ 2,965 $ - $ - $ 2,965 Certificates of deposit 358, , ,068 Beneficial interest in assets held by CFF - - 1,660,235 1,660,235 Total $ 361,248 $ 516,785 $ 1,660,235 $ 2,538,

49 NOTE 3 - FAIR VALUE MEASUREMENTS (Continued) The composition of the certificates of deposit and the funded depreciation accounts are as follows at December 31, 2013 and 2012: Certificates of Deposit 2013 Money Market Mutual Funds Total Certificates of deposit $ 658,770 $ - $ 658,770 Funded depreciation account 162, ,553 $ 821,323 $ - $ 821,323 Certificates of Deposit 2012 Money Market Mutual Funds Total Certificates of deposit $ 738,932 $ - $ 738,932 Funded depreciation account 136,136 2, ,101 $ 875,068 $ 2,965 $ 878,033 NOTE 4 - BENEFICIAL INTEREST IN ASSETS HELD BY CENTRAL FLORIDA FOUNDATION The Organization has transferred funds to CFF to establish five board-designated endowment funds, which are considered component funds of CFF. These endowments are invested and distributed by CFF in accordance with their investment and spending policies. These policies attempt to provide a relatively steady level of funding to programs supported by the endowments, while seeking to preserve and enhance the purchasing power of the endowment assets. The terms of the fund agreements with CFF provide, among other things, that distributions are subject to CFF s policies. The Organization may recommend distribution from certain funds at any time; however, all recommendations are solely advisory and may be accepted or rejected by CFF. At the time of the transfers, the Organization granted variance power to CFF. That power gives CFF the right to modify or eliminate any restriction, limitation, or condition on the distribution of funds, including their use for any specified purposes or their distribution to specific organizations

50 NOTE 4 - BENEFICIAL INTEREST IN ASSETS HELD BY CENTRAL FLORIDA FOUNDATION (Continued) The funds are presented in the consolidated statements of financial position as beneficial interests in assets held by CFF. The following table sets forth a summary of changes in fair value of the funds for the years ended December 31, 2013 and 2012: Seniors Fund Seniors First, Inc. Fund Seniors First Foundation Seniors First In- Home Services Fund Judith Thames Meals on Wheels Fund Total Fair value at December 31, 2011 $ 6,018 $ 28,759 $ 967,276 $322,123 $183,274 $1,507,450 Increase in beneficial interests in assets held by CFF: Interest and dividends ,754 7,699 5,311 36,225 Net appreciation (realized and unrealized) 734 3, ,971 39,271 26, ,094 CFF fees (47) (365) (19,959) (7,210) (4,401) (31,982) Contributions ,279 45,779 Distributions - (1,171) (66,274) (13,702) (3,184) (84,331) Fair value at December 31, ,787 31,060 1,020, , ,939 1,660,235 Decrease in beneficial interests in assets held by CFF: Interest and dividends ,905 6,327 4,665 30,274 Net appreciation (realized and 990 4, ,702 42,578 31, ,908 unrealized) CFF fees (63) (439) (21,385) (7,426) (5,310) (34,623) Contributions , ,630 Distributions - (1,153) (27,040) (13,725) (4,822) (46,740) Fair value at December 31, 2013 $7,783 $ 34,181 $ 1,144,080 $376,935 $278,705 $1,841,684 NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consists of the following at December 31, 2013 and 2012: Land $ 207,700 $ 207,700 Building 1,096,994 1,096,994 Furniture and equipment 219, ,808 Vehicles 1,288,884 1,459,828 2,813,062 3,020,330 Less accumulated depreciation (1,199,631) (1,263,074) $ 1,613,431 $ 1,757,256 Depreciation expense for the years ended December 31, 2013 and 2012 was approximately $155,000 and $135,000, respectively

51 NOTE 6 - DEFERRED REVENUES The Organization had programmatic grant revenue of approximately $319,000 and $258,000 at December 31, 2013 and 2012, respectively, to be expended in the subsequent year. The Organization periodically receives grants from the Florida Department of Transportation (the Department ) to purchase buses for use in its programs. Under the terms of the grants, the Department records and maintains a lien on the bus titles until they have reached their useful life. When the useful life requirement is met, the Department will fund replacement buses or transfer title to the Organization. Accordingly, grant revenue is being recognized over the vehicle s useful life of five years. Grant revenue recognized in 2013 and 2012 totaled approximately $114,000 and $151,000, respectively. Remaining deferred revenue related to the Department grants approximated $260,000 and $374,000 at December 31, 2013 and 2012, respectively. NOTE 7 - CONTRACT MATCHING REQUIREMENTS The Title III Older Americans Act and Community Care for the Elderly and Disabled Adults programs require the Organization to provide matching cash or in-kind contributions. For the years ended December 31, 2013 and 2012, the total expenditures of these programs and related match requirement are as follows: Program Title CFDA#/ CSFA# Title III-B, Supportive Services $ 932,391 $ 968,377 Title III-C1, Congregate Nutrition Services , ,305 Title III-C2, Home Delivered Nutrition Services , ,775 Community Care for the Elderly ,984,313 2,047,753 Community Care for Disabled Adults ,654 93,520 Total Expenditures $ 3,966,508 $ 4,192,730 Calculated Match Requirement $ 440,723 $ 465,859 During the years ended December 31, 2013 and 2012, the Organization had matching amounts of approximately $709,000 and $749,000 consisting of contributed funds of approximately $428,000 and $431,000 and in-kind contribution matching of approximately $281,000 and $318,000, respectively. NOTE 8 - COMMITMENTS AND CONTINGENCIES Employee Benefit Plan The Organization has established a defined-contribution pension plan covering all eligible employees. Employer contributions are determined on a discretionary basis ranging up to 3% of each eligible employee s salary. Contributions to the plan totaled approximately $76,000 and $87,000 for the years ended December 31, 2013 and 2012, respectively

52 NOTE 8 - COMMITMENTS AND CONTINGENCIES (Continued) Lease Commitments The Organization leases certain office space. Rental expense under the leases was approximately $32,000 and $31,000 for the years ended December 31, 2013 and 2012, respectively. The lease terms expire in August 2017, with future minimum lease payments as follows: Year Credit Risk and Economic Dependence Amount 2014 $ 25, , , ,000 $ 88,000 Financial instruments which potentially subject the Organization to concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable, certificates of deposit, and beneficial interest in assets held by CFF. The Organization maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. Management believes that the concentration of credit risk relating to accounts receivable is limited due to the nature of the receivables and the quality of the intermediaries. The Organization performs its program services with funds received from federal, state, and local sources. A significant reduction in the level of this funding, if this were to occur, could have a negative effect on the Organization s programs and activities. Grants from federal, state, and local governmental sources represented approximately 75% and 71% of the Organization s revenues for the years ended December 31, 2013 and 2012, respectively. Governmental funding is subject to statutory and regulatory changes, administrative rulings, interpretations of policy, intermediary determinations, and governmental funding restrictions, all of which may materially affect program reimbursement to recipient agencies. Changes in the reimbursement policies of the Medicaid, Nutrition Services, or the Community Care for the Elderly programs, as a result of legislative and regulatory actions, could adversely affect the revenues of the Organization

53 SUPPLEMENTAL INFORMATION

54 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON SUPPLEMENTAL INFORMATION Board of Directors Seniors First, Inc. and Affiliate Orlando, Florida We have audited the consolidated financial statements of Seniors First, Inc. and Affiliate (the Organization ) as of and for the years ended December 31, 2013 and 2012, and our report thereon dated May 7, 2014, which contained an unmodified opinion on those consolidated financial statements, appears on pages 1 and 2. Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The schedule of expenditures of federal awards and schedule of expenditures of state financial assistance for the year ended December 31, 2013, appearing on pages 19 and 20, respectively, are presented for the purpose of additional analysis or to meet the requirements of OMB Circular A-133; Chapter 69I-5, Rules of the Florida Department of Financial Services, Florida Administrative Code, Schedule of Expenditures of State Financial Assistance, and Chapter , Rules of the Auditor General, Florida Statutes, and are not a required part of the consolidated financial statements. The supplemental schedule of functional expenses by service, appearing on pages 21 and 22, is also presented for purposes of additional analysis and is not a required part of the consolidated 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 consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated 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 consolidated financial statements as a whole. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida May 7,

55 SENIORS FIRST, INC. AND AFFILIATE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended December 31, 2013 Federal Contract / CFDA Grant Federal Federal Grantor / Pass-Through Grantor Program Title Number Number Expenditures U.S. Department of Health and Human Services/ Florida Department of Elder Affairs/ Area Agency on Aging of Central Florida, Inc. Title III-B, Support Services SRI-OAA-13 $ 932,391 Title III-C1, Congregate Nutrition Services SRI-OAA ,965 Title III-C2, Home Delivered Nutrition Services SRI-OAA ,185 Nutrition Services Incentive Program SRI-NSIP-13/14 177,054 Total Aging Cluster 2,045,595 Total U.S. Department of Health and Human Services 2,045,595 U.S. Department of Housing and Urban Development/ Orange County Community Development Block Grants (Nutrition) ,074 Community Development Block Grants (Home Improvement) , ,021 U.S. Department of Housing and Urban Development/ City of Orlando Community Development Block Grants ,973 Total U.S. Department of Housing and Urban Development 735,994 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 2,781,589 NOTE 1 - BASIS OF PRESENTATION The schedule of expenditures of federal awards includes the federal grant activity of Seniors First, Inc. and is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A- 133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. See Report of Independent Certified Public Accountants on Supplemental Information

56 SENIORS FIRST, INC. AND AFFILIATE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE Year Ended December 31, 2013 State Contract / CSFA Grant State State Grantor / Pass-Through Grantor Program Title Number Number Expenditures Florida Department of Elder Affairs/ Area Agency on Aging of Central Florida, Inc. Direct Projects Orange County Community SR1o-CCE-14 YR1 $ 687,824 Care for the Elderly SR1o-CCE-14 YR2 757,334 Seminole County Community SR1s-CCE-14 YR1 266,143 Care for the Elderly SR1s-CCE-14 YR2 273,012 Orange County Home Care SRIo-HCE-14 YR1 47,953 for the Elderly SRIo-HCE-14 YR2 29,591 Seminole County Home Care SRIs-HCE-14 YR1 37,904 for the Elderly SRIs-HCE-14 YR2 21,512 Total Direct Projects 2,121,273 Florida Department of Elder Affairs/ Orange County Public Guardianship ,246 Seminole County Public Guardianship ,075 Florida Department of Children and Families Community Care for Disabled Adults GG404 67,343 Community Care for Disabled Adults GG304 46,311 Total Indirect Projects 205,975 TOTAL STATE FINANCIAL EXPENDITURES $ 2,327,248 NOTE 1 - BASIS OF PRESENTATION The schedule of expenditures of state projects includes the state grant activity of Seniors First, Inc. and is presented using the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Chapter , Rules of the Auditor General. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. See Report of Independent Certified Public Accountants on Supplemental Information

57 SENIORS FIRST, INC. AND AFFILIATE SUPPLEMENTAL SCHEDULE OF FUNCTIONAL EXPENSES BY SERVICE Year Ended December 31, 2013 Program Services In-Home Services Nutrition Services Home- Nutrition Home Case Personal Respite Social Screening & Delivered Congregate Education & Improvement Homemaker Managers Care Companion Work Assessment Meals Meals Other Salaries and Related Expenses $ 393,236 $ 382,334 $ 475,934 $ 423,195 $ 150,488 $ 68,113 $ 74,776 $ 336,048 $ 269,829 $ 18,512 Contracted Services - 146, , , , Travel ,684 13,847 49,282 8,647 2,478-26,406 3,261 - Occupancy 3,491 1,598 12,003 1, ,201 1,318 2,191 - Communications and Postage 1, ,404 3,150 - Printing and Supplies , Equipment and Vehicles 14, Meals , ,225 - Insurance 14, Professional Fees ,076 2,076 - Program Supplies 275,439 4, , ,203 - Other Depreciation 8, Donated Services and Rent , ,000 - Total Expenses Before Allocation of Management and General Expenses 712, , , , ,954 71,447 78,707 1,209, ,233 18,980 Allocation of Management and General Expenses 112,266 89,784 79, , ,272 11,257 12, , ,255 2,990 Total Expenses $ 824,792 $ 659,624 $ 583,525 $ 778,057 $ 854,226 $ 82,704 $ 91,108 $ 1,400,220 $ 883,488 $ 21,970 Total Units of Service (Unaudited) 13,992 32,404 10,792 30,622 42,519 N/A 4, ,783 89,014 8,547 (Continued) See Report of Independent Certified Public Accountants on Supplemental Information

58 SENIORS FIRST, INC. AND AFFILIATE SUPPLEMENTAL SCHEDULE OF FUNCTIONAL EXPENSES BY SERVICE (Continued) Year Ended December 31, 2013 Program Services Support Services Legal Non-DOEA Total Fundraising Management Assistance and Related Other Program and and Total Guardianship Transportation Services Services Costs Development General Expenses Salaries and Related Expenses $ 160,746 $ 345,925 $ 90,800 $ - $ 3,189,936 $ 70,832 $ 700,706 $ 3,961,474 Contracted Services , ,901-11, ,494 Travel 5, ,445 1,040 4, ,273 Occupancy 1,283 1,162 37,451-65,296 1,469 29,825 96,590 Communications and Postage 4,838 4,058 2, , ,602 42,745 Printing and Supplies ,499 4,284 39,417 48,200 Equipment and Vehicles - 152,461 3, , ,941 Meals ,072, ,072,503 Insurance ,606 5,445-64,944-73, ,526 Professional Fees 14, ,103 68,935 68, ,960 Program Supplies 14,061-1, , ,686 3,583 1, ,578 Other ,010 29,934 38,004 69,948 Depreciation - 99, ,899-47, ,421 Donated Services and Rent 52, ,000-39, ,900 Total Expenses Before Allocation of Management and General Expenses 254, , , ,400 6,640, ,033 1,074,830 7,896,553 Allocation of Management and General Expenses 40, ,170 22,334 40,556 1,046,306 28,524 (1,074,830) - Total Expenses $ 294,624 $ 750,620 $ 164,082 $ 297,956 $ 7,686,996 $ 209,557 $ - $ 7,896,553 Total Units of Service (Unaudited) ,051-3, , ,882 (Concluded) See Report of Independent Certified Public Accountants on Supplemental Information

59 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 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 Board of Directors Seniors First, Inc. and Affiliate Orlando, Florida We have audited, 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, the consolidated financial statements of Seniors First Inc. and Affiliate (the Organization ), which comprise the consolidated statement of financial position as of December 31, 2013, and the related consolidated statements of activities and changes in net assets, cash flows, and functional expenses for the year then ended, and the related notes to the consolidated financial statements, and have issued our report thereon dated May 7, Internal Control over Financial Reporting In planning and performing our audit of the consolidated financial statements, we considered the Organization s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified

60 Board of Directors Seniors First, Inc. and Affiliate Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization s consolidated financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida May 7,

61 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 AND CHAPTER , RULES OF THE AUDITOR GENERAL Board of Directors Seniors First, Inc. and Affiliate Orlando, Florida Report on Compliance for Each Major Federal Program and State Project We have audited the compliance of Seniors First, Inc. and Affiliate (the Organization ) with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the Department of Financial Services State Projects Compliance Supplement that could have a direct and material effect on each of its major federal programs and state projects for the year ended December 31, The Organization s major federal programs and state projects 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 the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of the Organization s major federal programs and state projects 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; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; Chapter 69I-5, Schedule of Expenditures of State Financial Assistance, Rules of the Department of Financial Services; and Chapter , Rules of the Auditor General. Those standards, OMB Circular A-133, Chapter 69I-5, and Chapter , 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 or state project occurred. An audit includes examining, on a test basis, evidence about the Organization s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. Our audit does not provide a legal determination of the Organization s compliance with those requirements. Opinion on Each Major Federal Program and State Project In our opinion, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended December 31,

62 Board of Directors Seniors First, Inc. and Affiliate Report on Internal Control over Compliance Management of the Organization 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, we considered the Organization s internal control over compliance with the types of compliance requirements that could have a direct and material effect on each major federal program or state project 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 or state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter , Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control over compliance. A 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 or state project 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 or state project 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 or state project 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 the 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, as defined above. However, material weaknesses may exist that have not been identified. Purpose of this Report 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 OMB Circular A-133 and Chapter , Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose. MOORE STEPHENS LOVELACE, P.A. Certified Public Accountants Orlando, Florida May 7,