Connecticut Community Providers Association, Inc.

Transcription

1 Connecticut Community Providers Association, Inc. Independent Auditors Report, Financial Statements and Supplemental Schedules As of and for the Years Ended June 30, 2013 and 2012

2 Independent Auditors Report, Financial Statements and Supplemental Schedules As of and for the Years Ended June 30, 2013 and 2012 Table of Contents Independent Auditors Report... 1 Financial Statements: Statements of Financial Position... 3 Statements of Activities and Changes in Net Assets... 4 Statements of Cash Flows... 5 Notes to the Financial Statements... 6 Supplemental Schedules: Schedule of Grants for the Year Ended June 30, Schedule of Expenses for the Years Ended June 30, 2013 and Page

3 To the Board of Directors of the Connecticut Community Providers Association, Inc.: Independent Auditors Report We have audited the accompanying financial statements of the Connecticut Community Providers Association, Inc. (the Association), which comprise the statement of financial position as of June 30, 2013, and the related statements of activities and changes in net assets and cash flows for the year then ended. 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. 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. 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 In our opinion, the 2013 financial statements referred to above present fairly, in all material respects, the financial position of Connecticut Community Providers Association, Inc. as of June 30, 2013, 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. Other Matter The financial statements of Connecticut Community Providers Association, Inc. as of June 30, 2012, were audited by other auditors whose report dated October 25, 2012, expressed an unmodified opinion on those statements. 10 Tower Lane Avon, Connecticut Phone E. Washington Street, Suite 300 Phoenix, Arizona Phone Main Street, Suite 215 Burlington, Vermont Phone

4 Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of grants and expenses on pages 10 and 11, respectively, are presented for the purpose of additional analysis and are 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 had 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. October 16, 2013 Avon, Connecticut 10 Tower Lane Avon, Connecticut Phone E. Washington 2 Street, Suite 300 Phoenix, Arizona Phone Main Street, Suite 215 Burlington, Vermont Phone

5 Statements of Financial Position June 30, 2013 and Assets Current assets: Cash and cash equivalents $ 648,062 $ 871,983 Certificates of deposit 300,285 - Accounts receivable - contracts, net 700, ,149 Membership dues receivable 14,125 14,096 Accounts receivable - other 9,937 13,392 Prepaid expenses and other current assets 12,031 28,011 Total current assets 1,685,225 1,812,631 Property and equipment: Building 230, ,742 Furniture and equipment 128, ,263 Building improvements 153, , , ,628 Less: accumulated depreciation (294,487) (293,788) Property and equipment, net 218, ,840 Total assets $ 1,903,816 $ 2,044,471 Liabilities and Net Assets Liabilities: Accounts payable - contracts $ 755,625 $ 934,079 Deferred revenue - dues 302, ,914 Accounts payable other and accrued expenses 148, ,760 Deferred revenue - other 28,868 22,703 Assessment liability 20,409 23,031 Total liabilities 1,255,853 1,481,487 Net assets: Unrestricted - undesignated 635, ,751 Unrestricted - board designated for capital reserves 12,073 24,233 Total net assets 647, ,984 Total liabilities and net assets $ 1,903,816 $ 2,044,471 The accompanying notes are an integral part of these financial statements. 3

6 Statements of Activities and Changes in Net Assets For the Years Ended June 30, 2013 and Support and revenue: Fees for services $ 7,494,257 $ 7,493,422 Membership dues 602, ,998 Conference income 123,296 98,016 Grants 83,388 82,649 Total support and revenue 8,303,937 8,258,085 Other income: Interest 1, Miscellaneous 24,267 51,343 Total other income 25,649 51,362 Total support, revenue and other income 8,329,586 8,309,447 Expenses 8,244,607 8,180,382 Change in net assets 84, ,065 Net assets, beginning of year 562, ,919 Net assets, end of year $ 647,963 $ 562,984 The accompanying notes are an integral part of these financial statements. 4

7 Statements of Cash Flows For the Years Ended June 30, 2013 and Cash flows from operating activities: Change in net assets $ 84,979 $ 129,065 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 20,894 23,091 Loss on sale of assets Bad debt expense - 40,644 Changes in operating assets and liabilities: Accounts receivable - contracts, net 184, ,127 Membership dues receivable (29) 16,455 Accounts receivable - other 3,455 4,123 Prepaid expenses and other current assets 15,980 (5,397) Accounts payable - contracts (178,454) (609,808) Deferred revenue - dues 2,367 10,080 Accounts payable other and accrued expenses (53,090) 126,472 Deferred revenue - other 6,165 10,624 Net cash provided by operating activities 86,631 19,961 Cash flows from investing activities: Purchases of equipment (7,645) (7,674) Purchases of certificates of deposit (300,285) - Net cash used in investing activities (307,930) (7,674) Cash flows from financing activities: Repayments on assessment liability (2,622) (2,451) Net cash used in financing activities (2,622) (2,451) Change in cash and cash equivalents (223,921) 9,836 Cash and cash equivalents, beginning of year 871, ,147 Cash and cash equivalents, end of year $ 648,062 $ 871,983 The accompanying notes are an integral part of these financial statements. 5

8 Notes to the Financial Statements As of and for the Year Ended June 30, 2013 and 2012 Note 1 - Organization Connecticut Community Providers Association, Inc., Inc. (the Organization) is a tax-exempt, nonprofit organization established to be a resource to and advocate for community providers in advancing their delivery of high quality, efficient and effective health and human services. The Organization strives to achieve positive human service systems change in the public policy arena. The Organization also assists the State of Connecticut in providing and developing a market for products made and services rendered by people with disabilities. Note 2 - Significant Accounting Policies Basis of Presentation - The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), as promulgated by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The Organization reports information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted and permanently restricted. They are described as follows: Unrestricted - Net assets that are not subject to explicit donor-imposed stipulations. Unrestricted net assets may be designated for specific purposes by action of the Board of Directors. Temporarily Restricted - Net assets whose use by the Organization is subject to explicit donor-imposed stipulations that can be fulfilled by actions of the Organization or that expire by the passage of time. The Organization currently has no temporarily restricted net assets. Permanently Restricted - Net assets whose use by the Organization is subject to explicit donor-imposed stipulations that they be maintained permanently by the Organization and stipulate the use of income and/or application as either unrestricted or temporarily restricted. The Organization currently has no permanently restricted net assets Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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. Cash and Cash Equivalents - Cash and cash equivalents include highly liquid investments with maturities of three months or less when purchased. In general, the Federal Deposit Insurance Corporation (FDIC) insures cash balances up to $250,000 per depositor, per bank. It is the Organization s policy to monitor the financial strength of the banks that hold its deposits on an ongoing basis. During the normal course of business, the Organization maintains cash balances in excess of the FDIC insurance limit. Certificates of Deposit - The Organization holds three certificates of deposit with the maturity dates of October 18, 2013, January 17, 2014, and May 1, The certificates of deposit are carried based on the amount deposited in the account, plus interest. The certificates of deposit are subject to early withdrawal penalties. These certificates of deposit are insured by the FDIC and are subject to the $250,000 limit per depositor, per bank. Accounts Receivable - Management has established an allowance for doubtful accounts for potential credit losses based on a review of significant balances and past experience. Accounts receivable as of June 30, 2013 and 2012, are net of allowance for doubtful accounts of $60,191 and $88,715, respectively. Bad debt expense for the years ended June 30, 2013 and 2012 was $0 and $40,644, respectively. 6

9 Note 2 - Significant Accounting Policies (continued) Connecticut Community Providers Association, Inc. Notes to the Financial Statements As of and for the Year Ended June 30, 2013 and 2012 Recognition of Grant Support - The Organization recognizes grant support to the extent that eligible grant costs are incurred. Receivables are recognized to the extent costs have been incurred but not reimbursed. Deferred revenue represents grant advances that exceed eligible costs incurred. Grants require the fulfillment of certain conditions as set forth in the instrument of the grant. Failure to fulfill the conditions could result in the return of funds to grantors. At June 30, 2013 and 2012, management of the Organization was unaware of any noncompliance with grant requirements. Property and Equipment - The Organization capitalizes all expenditures for property and equipment in excess of $1,000. Property and equipment is recorded at cost unless it is a donated item. Donated items are recorded at their fair market value at the date of the donation. Depreciation of property and equipment is charged against income over estimated useful lives ranging from 5 to 40 years using the straight-line method. Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period. Revenue - Membership dues are recognized as revenue in the applicable membership period, which is on a calendar-year basis. Therefore, one-half of the 2013 and 2012 dues have been recognized as revenue for the year ended June 30, Expenses by Function - The costs providing various programs and activities have been summarized on a functional basis in Note 7. Accordingly, certain costs have been allocated among the programs and supporting services benefited. The allocations are based upon square footage for occupancy related items and labor hours incurred for salary related items in each of the cost centers. Contributions - Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence and/or nature of any donor restrictions. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily restricted or permanently restricted net assets, depending on the nature of the restriction. When a 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 statements of activities as net assets released from restrictions. Income Taxes - The Organization has been recognized by the Internal Revenue Service as a not-for-profit corporation as described in section 501(c)(3) of the Internal Revenue Code and is exempt from federal income taxes on related income. The Organization accounts for uncertain tax positions in accordance with certain provisions of FASB ASC 740, Income Taxes, which provide a framework for how companies should recognize, measure, present and disclose uncertain tax positions in their financial statements. Under FASB ASC 740, the Organization may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. 7

10 Note 2 - Significant Accounting Policies (continued) Connecticut Community Providers Association, Inc. Notes to the Financial Statements As of and for the Year Ended June 30, 2013 and 2012 The tax benefits recognized in the financial statements from such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Organization does not have any uncertain tax positions as of June 30, 2013 and As of June 30, 2013 and 2012, the Organization did not record any penalties or interest associated with uncertain tax positions. The Organizations informational returns for the prior three years are open and subject to examination by the Internal Revenue Service and State of Connecticut. Subsequent Events - Subsequent events have been evaluated through October 16, 2013, which is the date the financial statements were available to be issued. Management believes there are no subsequent events having a material impact on the financial statements. Note 3 - Concentrations of Credit Risk Financial instruments that potentially subject the Organization to concentrations of credit risk consist principally of temporary cash investments and receivables. The Organization maintains its temporary cash investments in bank deposit accounts that, at times, may exceed federally insured limits. The Organization has not experienced any losses in such accounts. The Organization believes it is not exposed to any significant credit risk on cash or cash equivalents. The Organization develops and monitors product and service contracts, coordinates education and training programs, provides technical assistance, serves as legislative and administrative advocates, assists with marketing techniques and operates a job bank and resource library for its members who are located throughout Connecticut. Accounts receivable from member organizations in Connecticut was $14,125 and $14,096, at June 30, 2013 and 2012, respectively. Accounts receivable from service contracts was $700,785 and $885,149 at June 30, 2013 and 2012, respectively. Note 4 - Related Party Transactions During the years ended June 30, 2013 and 2012, the Organization contracted for services with several organizations that have common directors. Details regarding transactions with these related parties are as follows: Expense Incurred Included in Accounts Payable Expense Incurred Included in Accounts Payable BHcare, Inc. $ 21,529 $ - $ 21,305 $ - Community Health Resources 15,914-15,748 - Community Mental Health Affiliates 9,360-9,263 - ARC of New London County 6,249 1,575 4,725 - ARI of Connecticut 2,849-2,650 - ARC of Meriden-Wallingford ,163 - Total $ 55,901 $ 1,575 $ 88,854 $ - 8

11 Notes to the Financial Statements As of and for the Year Ended June 30, 2013 and 2012 Note 5 - Operating Lease The Organization leases office equipment under noncancelable operating leases. The Organization is responsible for maintenance, taxes and insurance under the leases. The following is a schedule of future minimum rentals as of June 30, 2013: Year Ending June $ 12, , , ,865 $ 39,897 Note 6 - Tax-Sheltered Annuity Program The Organization maintains an employer contributory tax-sheltered annuity program for all eligible employees. An employee is eligible for participation upon hire. An employee is eligible to receive an employer contribution after 1 year of service and the completion of 1,000 hours of service during the plan year. The Organization matches dollar for dollar of an employee s contribution up to 3% of an employee s salary. After 10 years of employment, the Organization matches dollar for dollar of an employee s contribution up to 5% of an employee s salary. For employees hired prior to January 1, 2010, all contributions are 100% vested. Employees that are hired after January 1, 2010 are subject to a six-year graded vesting plan. Tax-sheltered annuity expense for the years ended June 30, 2013 and 2012 was $15,463 and $15,339, respectively. Note 7 - Expenses by Function Expenses by function for the years ended June 30, 2013 and 2012 are as follows: Member Services $ 814,473 $ 270,361 Preferred Purchasing 7,347,085 7,699,360 Case Management 83,049 70,403 Administrative (1) - 140,258 Total $ 8,244,607 $ 8,180,382 (1) During the year ended June 30, 2013, the Organization has changed its cost allocation policies relating to administrative expenses. Going forward, all administrative expenses are being allocated to the respective benefiting programs. 9

12 Schedule of Grants For the Year Ended June 30, 2013 Case Program Contract Number Services Management Total Department of Social Services: Case Management 119-CMCSBG-19 $ - $ 83,388 $ 83,388 10

13 Schedules of Expenses For the Years Ended June 30, 2013 and Preferred purchasing program subcontractors $ 6,818,629 $ 6,810,170 Salaries 753, ,889 Contracted services 110,208 75,622 Professional fees 97, ,420 Case management subcontractors 71,142 70,403 Employee health benefits 66,648 70,591 Payroll taxes 55,457 46,279 Conference expenses 49,023 52,835 Community providers initiative 30,836 22,528 Annual meeting 28,995 30,671 Condominium fee 22,290 21,092 Depreciation and amortization 20,894 23,091 Travel 16,241 16,800 Tax-sheltered annuity program 15,463 15,339 Leased equipment 13,943 14,626 Insurance 12,282 11,587 Utilities 11,635 10,270 Miscellaneous 9, Dues and memberships 7,705 28,242 Bank fees 6,792 5,876 Postage and mailing 6,604 6,060 Telephone 6,128 5,472 Office supplies 5,035 9,680 Printing 2,882 1,582 Interest 1,474 1,646 Advertising 1,397 2,427 Equipment and repairs 1,131 6,651 Office equipment service contracts 835 1,400 Publications Bad debt - 40,644 Legislative $ 8,244,607 $ 8,180,382 11