UNITED METHODIST URBAN MINISTRIES, INC. AUDITED FINANCIAL STATEMENTS JUNE 30, 2009

Transcription

1 UNITED METHODIST URBAN MINISTRIES, INC. AUDITED FINANCIAL STATEMENTS JUNE 30, 2009

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3 UNITED METHODIST URBAN MINISTRI ES, INC. JUNE 30, 2009 Table of Contents Page Introductory Section Table of Contents 1 General Information 2 Financial Section Independent Auditor's Report 3 Statement of Financial Position 4 Statement of Activities 5 Statement of Cash Flows 6 Statement of Functional Expenses 7 Notes to Financial Statements 8-13 Supplemental Information Schedule of Federal Financial Activity and Other Grant Activity 14 Internal Control and Compliance Section Report on Internal Control Over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

4 UNITED METHODIST URBAN MINISTRIES, INC. JUNE 30, 2009 General Information Organization United Methodist Urban Ministries, Inc. (the Organization) was established in 1984 under the laws of the State of Tennessee for the purpose of enabling local churches to become a more efficient base for local missions and ministry. The specific purposes and goals of the Organization are: Management a. To identify and prioritize specific human needs and systemic issues in our community, especially those resulting from urbanization. b. To determine the effectiveness of existing efforts to meet those needs or address those issues on the part of churches and community agencies. c. To support effective community service efforts now in existence. d. To determine and implement co-operative programs which cannot be as effectively done by individual congregations. The Organization is managed by a Board of Directors (the Board) consisting of not less than fifteen or more than thirty members. The Board chooses an executive director to be the chief executive officer of the Organization. The members of the Board hold office for a period of three years and serve staggered terms with one-third of the Board being elected each year. The Board of Directors is elected by a select membership of the non-profit corporation. This membership consists of representatives of the various churches in the Clarksville District of the United Methodist Church. Management Personnel Linda Wall, Executive Director Sondra Hamilton, Financial Director Christy Hood, Safehouse Director Beverly Dycus, Grace Assistance Director 2

5 Members American Institute of Certified Public Accountants THURMAN CAMPBELL GROUP, PLC CERTIFIED PUBLIC ACCOUNTANTS Tennessee Society of Certified Public Accountants Kentucky Society of Certified Public Accountants To the Board of Directors United Methodist Urban Ministries, Inc. P.O. Box 324 Clarksville, TN INDEPENDENT AUDITOR'S REPORT Robert E. Yates, II Paul S. Ellis Michael E. Wallace Christopher C. Johns Jeffery Proctor Brian Demps Jerry Weatherspoon Kendra S. Bucciarelli Stacy Boone We have audited the accompanying statement of financial position of United Methodist Urban Ministries, Inc. (a nonprofit organizat ion) as of June 30, 2009, and the related statements of activities, and cash flows, and functional expenses for the year then ended. These financial statements are the responsibility of United Methodist Urban Ministries Inc. s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasona ble assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referre d to above present fairly, in all material respects, the financial position of United Methodist Urban Ministries, Inc. as of June 30, 2009, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2010, on our consideration of United Methodist Urban Ministries Inc.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 and important for assessing the results of our audit. Our audit was conducted for the purpose of forming an opinion on the basic financial statements of United Methodist Urban Ministries, Inc. taken as a whole. The accompanying financial information listed as supplemental information in the table of contents (Schedule of Federal Financial Activity and Other Grant Activity) is presented for the purpose of additional analysis and is not a required part of the financial statements of United Methodist Urban Ministries, Inc. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. January 27,

6 UNITED METHODIST URBAN MINISTRIES, INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2009 ASSETS CURRENT ASSETS Cash - Restricted $ 43,267 Grants Receivable 35,640 Other Receivables 3,500 Prepaid Expenses 2,600 Total Current Assets 85,007 PROPERTY & EQUIPMENT Land 20,000 Building 110,498 Building Improvements 89,681 Equipment 27, ,705 Less: Accumulated Depreciation (107,256) 140,449 Total Assets $ 225,456 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Cash Overdraft $ 3,204 Accounts Payable 5,045 Accrued Compensated Absences 11,133 Current Portion of Note Payable 4,509 Total Current Liabilities 23,891 LONG-TERM LIABILITIES Note Payable - Safehouse 18,794 Less: Current Portion (4,509) 14,285 Total Liabilities 38,176 NET ASSETS Unrestricted 144,013 Temporarily Restricted 43,267 Permanently Restricted - Total Net Assets 187,280 Total Liabilities and Net Assets $ 225,456 SEE ACCOMPA NYING NOTES AND AUDITOR 'S REPORT. 4

7 UNITED METHODIST URBAN MINISTRIES, INC. STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2009 CHANGES IN UNRESTRICTED NET ASSETS Revenues Contributions and Grants $ 164,232 Investment Income 540 Total Unrestricted Revenue 164,772 Net Assets Released from Restrictions Expiration of Restrictions 296,178 Total Unrestricted Revenues and Other Support 460,950 Expenses Program Expenses 418,009 Management and General 70,063 Total Expenses 488,072 Increase (Decrease) in Unrestricted Net Assets (27,122) CHANGES IN TEMPORARILY RESTRICTED NET ASSETS Contributions and Grants 309,550 Net Assets Released from Restrictions (296,178) Increase (Decrease) in Temporarily Restricted Net Assets 13,372 INCREASE (DECREASE) IN NET ASSETS (13,750) NET ASSETS AT BEGINNING OF YEAR 201,030 NET ASSETS AT END OF YEAR $ 187,280 SEE ACCOMPANYING NOTES AND AUDITOR 'S REPORT. 5

8 UNITED METHODIST URBAN MINISTRIES, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2009 CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ (13,750) Adjustments to Reconcile Change in Net Assets To Net Cash Provided (Used) by Operating Activities: Depreciation 6,204 (Increase) Decrease in Grants and Other Receivables (18,406) (Increase) Decrease in Prepaid Expenses 1,434 Increase (Decrease) in Accounts Payable (749) Increase (Decrease) in Accrued Compensated Absences 538 Net Adjustments (10,979) Net Cash Flows Provided By Operating Activities (24,729) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payments on long term debt (4,184) Net Cash Flows Used In Financing Activities (4,184) NET CHANGE IN CASH (28,913) CASH AT JULY 1, ,976 CASH AT JUNE 30, 2009 $ 40,063 SUPPLEMENTAL DATA Cash paid for interest $ 1,581 SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES A substantial amount of non-monetary items, including food and clothing were received during the year for support and distribution at the discretion of the Organization. Large donations of food and other items have been recorded in the financial statements at an estimated value of $187,589. Smaller donations have not been recorded due to the complexity involved in placing a value on these goods, and due to the fact that such valuatio n was not required by grantors. SEE ACCOMPANYING NOTES AND AUDITOR 'S REPORT. 6

9 UNITED METHODIST URBAN MINISTRIES, INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2009 Management and General Program Expenses Grace Administrative Assistance Safe Women's Costs Program House Independence Total Salaries and Related Taxes $ 47,660 $ 70,067 $ 129,288 $ - $ 247,015 Fringe Benefits 6,303 5,070 18,906-30,279 Total Salaries and Related Expenses 53,963 75, , ,295 Communications 4, , ,498 Contracted Services 6,800-7,664-14,464 Depreciation - - 6,204-6,204 Food - 45,885 8,042-53,927 Insurance 2,460 1,434 1, ,721 Miscellaneous ,495 3,026 Mortgage Interest - - 1,581-1,581 Rent 960 3, ,100 Repairs and Maintenance - - 9,022-9,022 Specific Assistance to Individuals - 70,185 9,032 5,636 84,853 Supplies 1,281 1,313 2,309-4,903 Travel 15-1,673-1,688 Utilities - - 9, ,791 Total Expenses $ 70,063 $ 199,577 $ 209,932 $ 8,500 $ 488,072 SEE ACCOMPANYING NOTES AND AUDITOR 'S REPORT. 7

10 UNITED METHODIST URBAN MINISTRIES, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of United Methodist Urban Ministries, Inc., (the Organization) a non-profit organization, have been prepared on the accrual basis of accounting which recognizes revenues when earned and expenses when incurred. The accounting policies of the Organization conform to generally accepted accounting principles as applicable to private non-profit corporations. The significant accounting policies followed are described below to enhance the usefulness of the financial statements to the reader. A. Nature of Activities United Methodist Urban Ministries, Inc. exists for the purpose of enabling local churches to become a more efficient base for local missions and ministry. B. Reporting Entity The Organization, for financial statement purposes, includes all of the assets and liabilities relevant to the operations of the Organization. The financial statements presented herein do not include any other funds, agencies, or organizations which are separate and distinct units of themselves. There are no component units included in these statements. C. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. The Organization utilizes the accrual basis of accounting which recognizes revenues when earned and expenditure when incurred. The Financial Accounting Standards Board (FASB) has established standard s concerning contributions and financial statement disclosures applicable to non-governmental not-for-profit organizations such as the Organization. These standards require that unconditional promises to give (pledges) be recorded as receivables and revenues and require the organization to distinguish among contributions received for each net asset category in accordance with donorimposed restrictions. A description of the three net asset categories follows. (1) Unrestricted Contributions are recorded as unrestricted revenue if that gift will be spent within the operating cycle or other expenses will be incurred which satisfy the restrictions (if any) of the gift. (2) Temporarily Restricted Gifts and pledges for which donor-imposed restrictions have not been met at the statement date are considered temporarily restricted. (3) Permanently Restricted Gifts and pledges which require donor restriction s that the corpus be invested in perpetuity and only the income be made available for program operati ons in accordance with donor restrictions are considered permanently restricted. The Organization has no permanently 8

11 restricted net assets at the statement date. D. Support and Expenses Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. The Organization reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets, or if they are designated as support for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activity as net assets released from restriction. Donor-restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. The Organization reports gifts of goods and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. E. Property and Equipment Property and equipment are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated property and equipment are valued at their estimated fair value on the date donated. The Organization does not have a material amount of donated assets. Equipment acquired with a per unit cost in excess of $5,000 is capitalized. Expenditures for additions, major renovations and betterments are capitalized while those for maintenance and repairs are charged to expenses as incurred. Depreciation is provided in amounts sufficient to relate the cost of the depreciable assets to operations over their estimated service lives on the straight -line basis. Estimated service lives used by the Organization are: Equipment Building Building Improvements 3-5 years 40 years 15 years Depreciation expense for the year ended June 30, 2009 was $6,204. F. Donated Services, Goods, and Facilities The Organization receives a substantial amount of non-monetary items, including food and clothing, as donated support for distribution at the discretion of the Organization. Large donations of food and other items have been recorded in the financial statements at an estimated value of $187,589. Smaller donations have not been recorded due to the complexity involved in placing a value on these goods, and due to the fact that such valuation is not required by grantors. Material and other assets received as donations for use by the organization itself are recorded and reflected in the accompanying financial statements at their fair value at the date of receipt. 9

12 G. Tax Exempt Status The Organization is qualified as a tax-exempt organization under the United Methodist Group Federal Income Tax Exemption Ruling. Accordingly, no provision for income taxes has been made. H. Functional Allocation of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of functional expenses. Certain costs have been allocated, among the programs and supporting services benefited, for grant reporting purposes. I. Advertising Costs Advertising costs are expensed as incurred. J. Restrictions on Revenues Revenues are conside red to be available for unrestricted use unless specifically restricted by the donor or grantor. K. Accrued Compensated Absences Compensated absences are accrued as incurred by recognizing an expense and a corresponding liability. The accrued compensated absences balance only includes accrued annual leave since accrued sick leave is not paid upon termination of employment. L. Cash and Cash Equivalents Cash and cash equivalents included in the statement of cash flows consist of checking accounts and certificates of deposit with a maturity of less than three months when purchased. M. Change in Presentation Certain items from the prior year may have been reclassified to conform with current year presentation. N. Management Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimations. O. Other Significant Accounting Policies Other significant accounting policies are described throughout the notes section of this audit report or disclosed in the statement format. 10

13 2. FUNDING The Organization receives a substantial amount of support from the Tennessee Department of Finance and Administration, and the Office of Criminal Justice Programs for operations. A major reduction of funds by these grantor agencies, should this occur, may have a significant effect on future operations. 3. GRANTS RECEIVABLE At June 30, 2009, grants receiva ble were as follows: Emergency Shelter Grant Program $ 10,955 City of Clarksville- Community Development Block Grant 11,279 Family Violence Grant 765 FEMA 9,470 STOP 2,025 Victims of Crime Assistance Grant 1,146 Total $ 35,640 The fair market value of the Organizatio n's receivables at June 30, 2009, is estimated to be the face amount at that date, or $35,640. Grants are stated at the amount management expects to collect from outstanding balances. Management provides for uncollectible accounts through recognition of bad debt expense and a requisite reduction in the receivable balance. This adjustment is made based on management s assessment of the current status of individu al accounts. 4. SCHEDULE OF CHANGES IN FIXED ASSETS Balance Balance 7/1/08 Additions Deletions 6/30/09 Land $ 20,000 $ - $ - $ 20,000 Building 110, ,498 Equipment 27, ,526 Building Improvements 89, , , ,705 Less: Accumulated Depreciation (101,052) (6,204) - (107,256) Net Fixed Assets $ 146,653 $ (6,204) $ - $ 140,449 11

14 5. NOTE PAYABLE On February 1, 1993, the Organization purchased a house to be used for a Safehouse Shelter for abused women and children. Financing for the new building was obtained through a twenty year note payable to First Federal Savings Bank, dated February 1, 1993, in the amount of $59,000 at an interest rate of 8.25%. In May 1998, the Organization refinanced the note for fifteen years with First Federal Savings Bank in the amount of $51,673 at an interest rate of 7.5%. The house is named as collateral against the note. Monthly payments in the amount of $480 are due the first day of each month. During the year ended June 30, 2009, principal and interest payments were $4,184 and $1,134 respectively. Debt service requirements are as follows: Year Ended Principal Interest Total June 30, 2010 $ 4,509 $ 1,257 $ 5,766 June 30, , ,766 June 30, , ,765 June 30, , ,322 Total $ 18,794 $ 2,825 $ 21,619 The fair market value of the Organization's long-term debt payable at June 30, 2009, is estimated to be the principal amount outstanding at that date, or $18, OPERATING LEASE The Organization paid $5,100 in rent expense related to an operating lease on a building for the year ended June 30, The Organization had no capital leases. 7. CONTINGENCIES AND COMMITMENTS Certain grant contracts contain stipulations that funded programs should continue at the stated purpose for a specified number of years. If these programs were to be discontinued, a portion or all of the grant funding received might be required to be returned to the grantor. Since the Organization has no current intentions of changing the grant-funded programs, no accrual for this contingency has been recorded. There were no other contingencies or commitments that should be disclosed in these financial statements. 8. RISK MANAGEMENT The Organization is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Organization has elected to obtain various insurance policies to transfer risk to a commercial insurance company. Insurance settlements have not been in excess of insuranc e coverage in any of the prior three fiscal years. 9. CASH DEPOSITS At various times during the year, the Organization s cash in bank balances exceeded the federally 12

15 insured limits. At June 30, 2009, the Organization did not have any uninsured cash balances. 10. PENSION PLAN OBLIGATIONS The Organization contributes to the Cumulative Pension and Benefit Fund, which is a multiemployer defined contribution plan administered by the General Board of Pension and Health Benefits of the United Methodist Church. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees who have reached the age of 21 are eligible to participate in the plan after 24 months of service. On July 22, 1999, the Organization s Board of Directors directed that the Organization contribute an amount equal to 4% of each employee s base salary each month. Employee contributio ns are voluntary. During the year ended June 30, 2009, the Organization s required and actual contributions amounted to $5,886, which was 4% of the Organization s covered payroll of $147,150. Employee voluntary contributions were $9,008. The Organization s contributions for each employee are immediately vested. An employee who leaves the employment of the Organization is entitled to his or her contributions, and the Organization s contributions, plus interest. No pension plan changes occurred during the year that affected the Organization s required contribution. 13. TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets consisted of the following at June 30, 2009: 1. Cash deposits donated for the Grace Assistance Program: a) Donated for client shelter assistance $ 6,272 b) Donated for client food assistance 19,420 c) Donated for United Methodist Brochure 1,333 d) Donated for general client assistance 36, Cash deposits donated for the Safehouse Program (23,200) 3. Cash deposits donated for Women's Independence 2,500 $ 43,267 13

16 UNITED METHODIST URBAN MINISTRIES, INC. SCHEDULE OF FEDERAL FINANCIAL ACTIVITY AND OTHER GRANT ACTIVITY FOR THE YEAR ENDED JUNE 30, 2009 (Receivable) (Receivable) CFDA Unearned Cash Unearned Number Program (B) 7/1/08 Receipts Expenditures 6/30/09 FEDERAL GRANTS Department of Health and Human Services/ Tennessee Department of Finance and Administration Family Violence Shelter and Shelter Services (Z ) $ (2,187) $ 58,490 $ 57,068 $ (765) (A) Department of Justice/ Tennessee Department of Finance and Administration Victims of Crime Assistance (Z ) (5,982) 44,685 39,849 (1,146) (A) STOP Violence Against Women (Z ) - 6,650 8,675 (2,025) (A) Department of Housing and Urban Development/ Tennessee Department of Human Services Emergency Shelter Grant Program (11,469) 27,846 27,332 (10,955) (A) (Z ) Total Federal Grants (19,638) 137, ,924 (14,891) Montgomery County Local Emergency Food and Shelter Board N/A FEMA - 11,772 21,242 (9,470) (A) CITY OF CLARKSVILLE N/A Community Development - 16,372 20,000 (3,628) (A) Block Grant - GAP N/A Community Development Block Grant (C) (1,095) 13,444 20,000 (7,651) (A) Total $ (20,733) $ 179,259 $ 194,166 $ (35,640) (A) (A) Grant receivable at June 30, (B) Total federal assistance is less than $500,000. (C) These Community Development Block Grant funds were provided by the City of Clarksville and are to be a direct grant to the Organization. SEE ACCOMPANYING NOTES AND AUDITOR 'S REPORT. 14

17 Members THURMAN CAMPBELL GROUP, PLC CERTIFIED PUBLIC ACCOUNTANTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors United Methodist Urban Ministries, Inc. P.O. Box 234 Clarksville, TN American Institute of Certified Public Accountants Tennessee Society of Certified Public Accountants Kentucky Society of Certified Public Accountants Robert E. Yates, II Paul S. Ellis Michael E. Wallace Christopher C. Johns Jeffery Proctor Brian Demps Jerry Weatherspoon Kendra S. Bucciarelli Stacy Boone We have audited the financial statements of United Methodist Urban Ministries, Inc., a non profit organization, as of and for the year ended June 30, 2009, and have issued our report thereon dated January 27, 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. Internal Control over Financial Reporting In planning and performing our audit, we considered United Methodist Urban Ministries, Inc.'s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of United Methodist Urban Ministries, Inc.'s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the organization s internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow manageme nt or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the United Methodist Urban Ministries, Inc. s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the United Methodist Urban Ministries, Inc.'s financial statements that is more than inconsequential will not be prevented or detected by the United Methodist Urban Ministries, Inc.'s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more that a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the United Methodist Urban Ministries, Inc.'s internal control. Our considerat ion of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 15

18 Compliance and Other Matters As part of obtaining reasonable assurance about whether United Methodist Urban Ministries, Inc.'s 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 that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Board of Directors, management, others within the organization, City Council, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. January 27,