AutumnGold Senior Services, Inc. Report on Audited Financial Statements. Year ended December 31, 2016

Transcription

1 Report on Audited Financial Statements Year ended December 31, 2016

2 CONTENTS Basic financial statements Independent auditor's report 3 Statement of financial position 5 Statement of activities 6 Statement of cash flows 7 Statement of functional expenses 8 Notes to the financial statements 9 Federal reports 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 12 Independent auditor's report on compliance for each Major program and on internal control over compliance required by Uniform Guidance 14 Schedule of expenditures of federal awards 16 Notes to the schedule of expenditures of federal awards 17 Schedule of findings and questioned costs 18

3 BASIC FINANCIAL STATEMENTS

4 CPAs PLLC INDEPENDENT AUDITOR'S REPORT To the Board of Directors Caldwell, Idaho Report on the Financial Statements We have audited the accompanying financial statements of, (a nonprofit organization), which comprise the statement of financial position as of December 31, 2016 and 2015, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion lh our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of as of December 31, 2016 and 2015, 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 Idaho Center Blvd. P.O. Box 41 Nampa, ID (208) East Wyoming P.O. Box 905 Homedale, ID (208) Broadway Avenue Boise, ID (208)

5 Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional. analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 13, 2017, on our consideration of ABC Organization's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering ABC Organization's internal control over financial reporting and compliance. 75=v../)_J,_ D cf,j.j Bowen Parker Day CPAs, PLLC V Homedale, Idaho July 13,

6 Statement of Financial Position December 31, 2016 and 2015 Assets Current assets Cash $ 182,171 $ 136,769 Cash - COB restricted 362,463 Accounts receivable 108,868 88,556 Total current assets 653, ,325 Other assets Investments 179, ,643 Organization costs 1,350 1,350 Accumulated amortization (810) (675) Inventory 685,092 1,477,069 Total other assets 865,245 1,657,387 Total assets $ 1,518,747 $ 1,882,712 Liabilities Liabilities Accounts payable $ 2,919 $ 18,670 Note payable 362,463 Construction loans 605,386 1,356,956 Total liabilities 970,768 1,375,626 Net assets Temporarily restricted net assets 179, ,643 Unrestricted net assets 368, ,443 Total liabilities and net assets $ 1,518,747 $ 1,882,712 See accountants' report and notes to the financial statements 5

7 Statement of Activities For the Year Ended December 31, 2016 and Unrestricted net assets Program service revenue $ 2,810,375 $ 2,046,000 Contributions Grants 260,000 4,000 Services and miscellaneous 17,749 20,469 Development fees 243, ,303 Total unrestricted support 3,331,644 2,400,772 Expenses Personnel costs 170, ,557 Program service costs 2,817,786 2,092,338 General administrative 302,538 57,756 Total expenses 3,290,751 2,309,651 Increase (decrease) in unrestricted net assets 40,893 91,121 Net assets, beginning of year 507, ,664 Prior period adjustment (see note 3) (142,699) Net assets, end of year $ 547,979 $ 507,086 See accountants' report and notes to the financial statements 6

8 Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities Increase (decrease) in net assets $ 40,893 Adjustment to reconcile increase in net assets to net cash provided (used) by operating activities Amortization expense 135 (Increase) decrease in accounts receivable (20,312) (Increase) decrease in inventories 791,976 Increase (decrease) in accounts payable (15,751) Net cash provided (Used) by operating activities 796,941 Cash flows from noncapital financing activities Net cash provided (used) by noncapital financing activities (751,570) Cash flows from investing activities Net cash provided (used) by investing activities 30 Net increase (decrease) in cash 45,401 Cash, beginning 136,769 Cash, ending $ 182,170 See accountants' report and notes to the financial statements 7

9 Statement of Functional Expenses For the Year Ended December 31, 2016 and Amortization $ 135 $ 135 Bank services charges Computer and internet 895 6,509 Insurance 836 1,755 Interest Meals and entertainment Miscellaneous 56 Office supplies 2,441 1,323 Postage Professional fees 7,470 7,287 Promotion 100 1,759 COB- program expense 4,535 Rent 20,075 14,220 Supplies 883 8,246 Telephone 1,311 Travel 2,545 2,063 Education 50 11,059 Contribution 260,000 Utilities 2,452 Personnel costs 170, ,557 $ 472,965 $ 217,313 See accountants' report and notes to the financial statements. 8

10 Notes to Financial Statements December 31, 2016 Note 1 - Summary of Significant Accounting Policies This summary of significant accounting policies of Autumn Gold Senior Services, Inc., the financial statements and notes are representations of the Organization's management, which is responsible for their integrity and objectivity. Nature of Activities The Organization, a non-profit organization, was organized on February 11, 2009, to serve Idaho's senior citizens by facilitating access to services and living situations that promote their health, security and happiness, and to provide affordable housing to low and moderate income households. The Organization's activities are supported primarily by federal grant funding from the U.S. Department of Housing and Urban Development (HUD). The funds are awarded to the Idaho Housing and Finance Association and the City of Boise passed through to Autumn Gold Senior Services, Inc. The Organization received funding from the Idaho Housing and Finance Association under the Neighborhood Stabilization Program.and the HOME Program. These funds are used to purchase foreclosed upon properties to be rehabilitated as necessary and resold to qualified purchasers. The funds are to be repaid to Idaho Housing and Finance Association upon sale of the individual properties. The amount that has been awarded through the above programs and that is payable to Idaho Housing and Finance Association at December 31, 2016 is $967,849. Basis of Presentation Financial statement presentation of the Organization follows the accrual basis of accounting in accordance with generally accepted accounting principles. Income Taxes The Organization has obtained approval from the IRS to operate as a non-profit 501(c) 3 organization, not subject to state or federal income taxes. Therefore, no provision for income taxes has been made in these financial statements. Cash and Cash Equivalents For purposes of the statement of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Inventory Inventory consists principally of single-family homes purchased and held for sale. The amount is stated at cost and includes the purchase price of the home, rehabilitation costs and land for each property in development at December 31, Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted net assets depending on the existence or nature of any donor restrictions. 9

11 Notes to Financial Statements December 31, 2016 Developer Fees Developer fees are recognized during the construction period based on the percentage of construction completion. Accounts Receivable Accounts receivable consist of developer fees earned on the percentage completion method that have not been received by the Organization as of December 31, Use of 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 estimates. Note 2 - Net Position Net assets are classified as unrestricted, temporarily restricted, or permanently restricted on the balance sheet according to the following definitions: Unrestricted - all other net assets. Temporarily Restricted- portion of net assets that are limited by donor-imposed time restrictions or purpose restrictions. Note 3 - Related Parties rents office space from Crestavento LLC. Crestavento LLC is owned by Greg Urrutia and Cathy Venrick-Urrutia who serve as officers for The transaction was approved by the Board of Directors as an arm's length transaction. The amount paid by for the year ended December 31, 2016 was $21,675. Note 4 - Subsequent Events The Organization has evaluated subsequent events through July 13, 2017, the date which the financial statements were available to be issued. 10

12 FEDERAL REPORTS

13 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 Caldwell, Idaho 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 (a nonprofit organization), which comprise the statement of financial position as of December 31, 2016 and 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated July 13, Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered AutumnGold Senior Services, lnc.'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 AutumnGold Senior Services, lnc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of AutumnGold Senior Services lnc.'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 merjt.attention by those charged with governance. Our consid ration of internal control was for the limited purpose described in the first parag.raph 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 Idaho Center Blvd. P.O. Box 41 Nampa, ID (208) East Wyoming P.O. Box 905 Homedale, ID (208) Broadway Avenue Boise, ID (208)

14 Compliance and Other Matters As part of obtaining reasonable assurance about whether AutumnGold Senior Services, lnc.'s financial statements are free from 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 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. P-L Bowen Parker Day CPAs, PLLC b U cas Homedale, Idaho July 13,

15 CPAs INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors Caldwell, Idaho Report on Compliance for Each Major Federal Program We have audited AutumnGold Senior. Services, lnc.'s compliance with the types of compliance requirements described in the 0MB Compliance Supplement that could have a direct and material effect on each of AutumnGold Senior Services, lnc.'s major federal programs for the year ended December 31, 2016 and AutumnGold Senior Services, lnc.'s major federal programs are identified in the summary of auditor's results section of the accompc:3nying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of AutumnGold Senior Services, lnc.'s major federal programs 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; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements tor Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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 occurred. An audit includes examining, or, a test basis, evidence about AutumnGold Senior Services, lnc.'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. However, our audit does not provide a legal determination of AutumnGold Senior Services, lnc.'s compliance. Opinion on Each Major Federal Program In our opinion, 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 for the year ended December 31, 2016 and Idaho Center Blvd. P.O. Box 41 Nampa, ID (208) East Wyoming P.O. Box 905 Homedale, ID (208) Broadway Avenue Boise, ID (208)

16 Report on Internal Control Over Compliance Management of 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 of compliance, we considered AutumnGold Senior Services, lnc.'s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program 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 and to test and report on internal control over compliance in accordance with the Uniform Guidance, 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 AutumnGold Senior Services, lnc.'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 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 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 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 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. However, material weaknesses may exist that have not been identified. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. B=::::. ay-2 l) Homedale, Idaho July 13,

17 AUTMNGOLD SENIOR SERVICES INC Schedule of Expenditures of Federal Awards By Grant For the Year Ended December 31, 2016 Federal Grantor/Program or Cluster Title Federal CFDA Pass-through Grantor Name of Grant - Federal Number and Number Grant ID No. Expenditures($) Other Programs Department of Housing and Urban Development Home Investment Partnerships Program Idaho Housing and Home Investment Partnerships Program Finance Association HOME Award $ 945,938 Home Investment Partnerships Program Total Home Investment Partnerships Program City of Boise HOME Award 915,157 1,861,095 Neighborhood Stabilization Program (Recovery Act Funded) Neighborhood Stabilization Program (Recovery Act Idaho Housing and Funded) Finance Association 134,369 Total Neighborhood Stabilization Program (Recovery Act Funded) 134,369 Total Department of Housing and Urban Development 1,995,464 Total Other Programs 1,995,464 Total Expenditures of Federal Awards $ 1,995,464 The accompanying notes are an integral part of the schedule. 16

18 Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2016 Note 1 - Basis of Presentation The accompanying schedule of federal awards includes federal grant activity of AutumnGold Senior Services, Inc. under programs of the federal government for the year ended December 31, The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of AutumnGold Senior Services, Inc., it is not intended to and does not present financial position, changes in net position or cash flows of Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. AutumnGold Senior Services, Inc. is a subrecipient of the federal awards presented on the Schedule. 17

19 Schedule of Findings and Questioned Costs For the Year Ended December 31, 2016 Section I - Summary of auditor's results Financial Statements Type of auditor's report issued was unqualified. Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Noncompliance material to financial Statements noted? X No X No X No Federal Awards Internal control over major programs: Material weakness(es) identified? Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X No X No Type of auditor's report issued on compliance for major programs was unqualified. Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance 2 CFR ? X No 18

20 Schedule of Findings and Questioned Costs For the Year Ended December 31, 2016 Identification of major programs: CFDA Number(s) Name of federal program HOME Investment Partnership Program Dollar threshold used to distinguish Between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? X Yes _liq Section II - Financial Statement Findings No findings 19