LONDON & C OMPANY, LLC

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1 LONDON & C OMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS 231 FARMINGTON AVENUE FARM INGTON, CONNECTICUT TEL. (860) FAX (860) INDEPENDENT AUDITORS' REPORT Board of Directors Connecticut Coalition to End Homelessness, Inc. 257 Lawrence Street Hartford, Connecticut Report on the Financial Statements We have audited the accompanying financial statements of Connecticut Coalition to End Homelessness, Inc. (a not-for-profit corporation), which comprise the statement of financial position as of June 30, 2018, and the related statements of activities, functional expenses and cash flows for the year ended, and related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility 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 reasonable assurance about whether the financial statements are free of 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.

2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Connecticut Coalition to End Homelessness, Inc. as of June 30, 2018, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited Connecticut Coalition to End Homelessness, Inc.'s financial statements as of and for the year ended June 30, 2017 and we expressed an unmodified audit opinion on those financial statements and, in our report dated November 16, In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2017 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated September 28, 2018, on our consideration of Connecticut Coalition to End Homelessness, Inc.'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 Connecticut Coalition to End Homelessness's internal control over financial reporting and compliance. Respectfully submitted,.& - & ().,,,~.,, ~ London & Company, LLC Certified Public Accountants September 28, 2018

3 We present the following report as of June 30, 2018: Exhibit A- Comparative Statement of Financial Position as of June 30, 2018 and June 30, Exhibit B - Statement of Activities and Changes in Net Assets for the Year Ended June 30, 2018, with Comparative Totals for the Year Ended June 30, Exhibit C - Statement of Functional Expenses for the Year Ended June 30, 2018, with Comparative Totals for the Year Ended June 30, Exhibit D - Comparative Statement of Cash Flows for the Years Ended June 30, 2018 and June 30, Notes to Financial Statements. Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed m Accordance with Government Auditing Standards

4 EXHIBIT A COMPARATIVE STATEMENT OF FINANCIAL POSITION ASSETS June 30, Current Assets: Cash $ 1,208,890 $ 923,393 Revenues receivable 374, ,029 Prepaid CAN support 259,707 98,132 Prepaid expenses 56,623 47,953 Total Current Assets 1,899,672 1,185,507 Equipment and Office Furniture (net) 554 1,997 Other Assets: Security deposit 8,217 8,217 TOTAL ASSETS $ 1,908,443 $ 1,195,721 LIABILITIES AND NET ASSETS Liabilities: Accounts payable $ 13,804 $ 12,739 Payroll taxes payable 2,001 1,149 Refundable advance 487, ,167 Prepaid sponsorship and fees 76,236 24,622 Accrued salaries 58,015 39,944 Accrued pension contribution 2,873 4,733 Total Liabilities 639, ,354 Net Assets: Unrestricted 573, ,486 Temporarily restricted 695, ,881 Total Net Assets 1,268, ,367 IOIAL LIABILIIIES AND NEI ASSEIS $ 1,908,443 $ 1,195,721 See Accompanying Notes

5 EXHIBITB STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017 Temporarily Total Unrestricted Restricted Revenue and Other Sum2ort: State Funding $ 1,592,826 $ $ 1,592,826 $ 1,697,494 Federal Funding 282, , ,754 Municipal Funding 65,389 65,389 15,000 Foundation Grants and Contracts 605, ,048 1,300, ,029 Event Sponsorships 73,007 73,007 52,350 Fee for Service 57,034 57,034 67,360 Donations 285, ,417 87,668 Membership Dues 18,925 18,925 15,455 Registration and Training Fees 56,969 56,969 37,415 Interest income 1,023 1, Loss on investment ( 385) ( 385) In-Kind Contributions 12,477 Net assets released from satisfaction of program restrictions 457,881 ( 457,881) Total Revenue and Other Support 3,496, ,167 3,733,626 3,189,851 Expenses: Data and Analysis 1,191,548 1,191,548 1,161,746 Direct CAN I Client Support 1,112,731 1,112, ,153 Training Technical Assistance 691, , ,938 Advocacy/Education 172, , ,917 Total Program Expenses 3,167,632 3,167,632 2,812,754 Management, General and Fundraising 263, , ,917 Total Expenses 3,431,529 3,431,529 3,032,671 Changes in Net Assets 64, , , ,180 Net Assets - Beginning 508, , , ,187 Net Assets - Ending $ 573,416 $ 695,048 $ 1,268,464 $ 966,367 See Accompanying Notes

6 CONNECTICUT COALITION TO END HOMELESSNESS. INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017 EXHIBITC Program Services Training Data and Direct CAN I Technical Advocacy/ Total Management Total ExQenses Analysis Client SUQQOrt Assistance Education Program & General Fundraising Salaries $ 270,115 $ 53,834 $ 410,095 $ 111,570 $ 845,614 $ 36,467 $ 52,692 $ 934,773 $ 843,237 Payroll taxes and fringe benefits 49,734 9,912 75,507 20, ,695 6,462 9, , ,177 Total Salaries and Related Expenses 319,849 63, , ,112 1,001,309 42,929 62,647 1,106,885 1,013,414 Consulting ,321 9,299 8,825 46,045 8,559 55, , ,836 Staff travel, training and development 12, ,192 7,910 34,604 4,893 39,497 43,311 Occupancy costs 16,193 3,239 29,147 9,716 58,295 6,477-64,772 62,844 Office expenses 18,725 4,797 28,115 11,011 62,648 17, ,725 76,597 Training and meetings , , ,425 81,894 Point-in-Time & Homeless Youth Count 28,721 15,091-43, ,812 86,821 Insurance 2, ,098 1,366 8, ,125 9,008 Professional fees 1, , , ,500 6,400 Miscellaneous ,762-4,102 5,265 Direct CAN I Client support - 1,012, ,012, ,012, ,666 HMIS costs 791, , , ,579 Direct Development Expenses ,342 57,342 29,570 Depreciation ,443 1,443 3,466 Total Expenses $ 1,191,548 $ 1,112,731 $ 691,099 $ 172,254 $ 3,167,632 $ 87,973 $ 175,924 $ 3,431,529 $ 3,032,671 See Accompanying Notes

7 EXHIBITD COMPARATIVE STATEMENT OF CASH FLOWS Increase (Decrease) in Cash Cash Flows From Operating Activities: Changes in net assets $ For the Years Ended June 30, ,097 $ 157,180 Adjustments to reconcile changes in net assets to net cash provided by program activities: Depreciation Changes in assets and liabilities: Increase Decrease in Assets and Liabilities: Prepaid CAN support Prepaid expenses Revenues receivable Accounts payable Accrued salaries Refundable advance Prepaid memberships Payroll taxes payable Accrued pension contribution Total Adjustments ( ( ( ( ( 1,443 3, ,575) ( 98,132) 8,670) ( 20,648) 258,422) ( 20,435) 1,065 2,470 18,071 3, ,883 ( 59,757) 51,614 23, ( 2,940) 1,860) ( 322) 16,600) ( 168,675) Net Increase (Decrease) in Cash Cash - Beginning of Year 285,497 ( 11,495) 923, ,888 Cash - End of Year $ 1,208,890 $ 923,393 Supplemental Disclosure of Cash Flow Information: Cash paid during the year: Interest Income taxes Non-Cash Activities: Consulting Services $ $ $ $ $ $ 12,477 See Accompanying Notes

8 NOTES TO FINANCIAL STATEMENTS (Continued) Note 1 - Organization: The Connecticut Coalition to End Homelessness, Inc. (the "Coalition") is a nonprofit health and welfare organization with an office in Hartford, Connecticut. The Connecticut Coalition to End Homelessness, in partnership with members and communities throughout the State, creates change through leadership, advocacy, and building the capacity of members and the field to respond to environmental challenges. Their collective mission is to prevent and end homelessness in Connecticut. The Coalition works statewide as community organizers, educators, and advocates collecting, analyzing and disseminating data and assisting communities, organizations and individuals who have the goal of preventing, reducing and ending homelessness in Connecticut. The Coalition also serves as a liaison between state government, primarily the Department of Housing, and providers of shelter and permanent supportive housing; regarding policy, budget needs and trends which affect service provision. Principal support sources include contracts from the State of Connecticut Department of Housing, U.S. Department of Housing and Urban Development and various Connecticut based foundations, in addition to memberships and contributions. Note 2 - Accounting Policies: A. Tax Status: The Coalition is a non-profit health and welfare organization exempt from federal income taxation under Section 501(c)(3) of the U.S. Internal Revenue Code. There was no unrelated business income for the years ended June 30, 2018 and June 30, The information returns of the Coalition are subject to examination by the Internal Revenue Service, generally for three years after they were filed. B. Bas is of Presentation: The accompanying financial statements have been prepared utilizing the accrual basis method of accounting in accordance with generally accepted accounting principles. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Coalition and changes therein are classified and reported as follows: Unrestricted net assets: Net assets that are not subject to donor-imposed stipulations. Unrestricted net assets may be designated for specific purposes by actions of the Board of Directors. Temporarily restricted net assets: Net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Coalition and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statement of activities as net assets released from restrictions.

9 NOTES TO FINANCIAL STATEMENTS (Continued) Note 2 - Accounting Policies (Continued): C. Comparative Information: The financial statements include certain prior-year summarized comparative information in total, not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the Coalition's financial statement for the year ended June 30, 2017, from which the summarized information was derived. D. Depreciation: Equipment and office furniture acquired by the Coalition has been capitalized at cost and is being depreciated over three and seven years, utilizing the straight-line method. This includes equipment and office furniture acquired with restricted grant revenues for respective program purposes. For the years ended June 30, 2018 and 2017, depreciation was recorded in the amount of $1,443 and $3,466, respectively. The total cost and related accumulated depreciation for the years ended June 30, 2018 and 2017 are as follows: Cost of equipment and office furniture Less: Accumulated depreciation Equipment and office furniture (net) 2018 $ 45,311 44,757 $ $ 45,311 43,314 $ Expenditures for additions and improvements are capitalized, and costs for repairs and maintenance are charged to expense as incurred. The Coalition follows the practice of capitalizing all expenditures for property and equipment in excess of $5,000. E. Donated Materials and Services: The Coalition receives, at times, donated materials and volunteer assistance from various sources. For the years ended June 30, 2018 and 2017, the Coalition received $0 and $12,477, respectively in donated consulting services. The donated consulting services have been reflected in the accompanying financial statements. No amounts for volunteer assistance have been recognized in the statement of activities because the criteria for recognition have not been satisfied. F. Recognition of Restricted Grant Revenues: Revenues restricted by the donor, granter, or any other outside party for particular operating purposes are deemed to be earned and reported as revenues currently.

10 NOTES TO FINANCIAL STATEMENTS (Continued) Note 2 - Note 3 - Accounting Policies (Continued): G. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Lease Commitments I Subsequent Event: In October 2012, the Coalition entered into an operating lease for office space located at 257 Lawrence Street in Hartford, Connecticut for the period November 2012 to October In November 2017, the Coalition renewed the lease for the period November 1, 2017 to October 31, The Coalition has the right to extend the lease for an additional five years. The total rental expense was $56,972 and $54,745 for the years ended June 30, 2018 and 2017, respectively. Future minimum lease payments over the term of the lease are as follows: June 30, 2019 $ 59,311 June 30, ,766 June 30, ,344 June 30, ,052 June 30, ,656 Total $ 275,129 Note 4 - Retirement Plan: The Coalition maintains a Simplified Employee Pension (SEP) Plan in accordance with Section 408(k) of the U.S. Internal Revenue Code. Full time employees who are at least eighteen (18) years of age, and have been employed for one full year are eligible for benefits. The Coalition contributed a percentage of the respective employees' annual compensation to a SEP-IRA plan for qualified employees for the years ended June 30, 2018 and 2017, amounting to $22,574 and $22,944, respectively. These benefit plan contributions are included within the "Fringe benefits" line item, per Exhibit C. Note 5 - Revenues Receivable: At June 30, 2018 and 2017, revenues receivable were as follows: Government grant Foundation grant Fees, dues and donations Project support and administration fees Total 2018 $ 180, , $ 374, $ 48,737 66, $ 116,029

11 NOTES TO FINANCIAL STATEMENTS (Continued) Note 6 - Temporarily Restricted Net Assets: At June 30, 2018 and 2017, temporarily restricted net assets were as follows: Direct CAN I client support Data analysis and reporting Advocacy and education General program support Technical assistance & training Total 2018 $ 497,548 30,750 31, ,500 $ $ 236,190 20,000 12, ,191 $ Note 7 - Note 8 - Note 9 - Concentration of Revenue: For the year ended June 30, 2018 and 2017, approximately 52% and 60% of the Coalition's funding came from Government grants. Allocation of Functional Expenses: The costs of providing the Coalition's various programs and supporting services have been summarized on a functional basis in the Statement of Activities. Accordingly, certain costs have been allocated among the programs and supporting services. Refundable Advances: Refundable advances are revenues from government grants, billed or received, which have not been earned as of June 30, 2018 and 2017 and consisted of the following: Department of Housing $ $ Refundable advances include government contract grants that are on a different fiscal year than the Coalition. Management anticipates that amounts currently included in refundable advances will be expensed within the contract period. Note 10 - Evaluation of Subsequent Events: Management has evaluated subsequent events through September 28, 2018, the date which the financial statements were available to be issued. Note 11 - Operating Lease: In June 2016, the Coalition entered into a 60 month operating lease for a copier. The monthly payment is $ Future minimum lease payments over the term of the lease are as follows: June 30, 2019 June 30, 2020 June 30, 2021 Total $ 2,493 2, $ 7 477

12 LONDON & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS 231 FARMINGTON AVENUE FARMINGTON, CONNECTICUT TEL. (860) FAX (860) INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of the Connecticut Coalition to End Homelessness, Inc. We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Connecticut Coalition To End Homelessness, Inc. which comprise the statement of financial position, as of June 30, 2018, and the related statements of activities, and cash flows for the year ended and the related notes to the financial statements, and have issued our report thereon dated September 28, Compliance and Other Matters As part of obtaining responsible assurance about whether Connecticut Coalition To End Homelessness, 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 or other matters that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Connecticut Coalition to End Homelessness, Inc.'s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Connecticut Coalition to End Homelessness, Inc.' s internal control. Accordingly, we do not express an opinion on the effectiveness of the Coalition'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 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 or deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

13 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. 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 organization'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 organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Very truly yours, b ~- & tfe ~-.,., ~ London & Company, LLC Certified Public Accountants Farmington, CT September 28, 2018