Ramsey County. Springsted Incorporated 380 Jackson Street, Suite 300 Investment Manager

Transcription

1 Ramsey County, MN 2011 Annual Report (Addition of the RAP financials for year ended September 30, 2011) CUSIP #: Lease Obligations - Certificates of Participation Dated Date Maturity Date Amount Issue name 5/1/2004 1/1/2017 $1,855,000 Refunding Certificates of Participation. Series 2004B - (Ramsey Action Programs, Inc.) Failed to Provide Annual Financial Information as Required: Attached are the Community Action Partnership of Ramsey & Financial Statements for the year ended September 30, 2011 as required for Continuing Disclosure filing. Issuer Contact Information: Springsted Incorporated Name: Richard Koop 380 Jackson Street, Suite 300 Title: Investment Manager Saint Paul, MN Employer: Ramsey County Tel: Address: 90 West Plato Boulevard; P.O. Box Fax: City, State, Zip: St. Paul, MN Telephone: Address: richard.koop@co.ramsey.mn.us Issuer Website Address: Client #:

2 Community Action Partnership of Ramsey & St. Paul, Minnesota Financial Statements and Additional Information Year Ended September 30,2011,..,. j

3 Community Action Partnership of Ramsey & Financial Statements and Additional Information Year Ended September 30, 2011 Table of Contents Independent Auditor's Report... 1 Financial Statements Statement of Financial Position... 3 Statement of Activities Statement of Cash Flows... 5 Notes to Financial Statements... 6 Additional Information Schedule of Expenditures of Federal Awards and Other Financial Assistance 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 Independent Auditor's Report on Compliance With Requirements that Could Have a Direct and Material Effect on Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A Schedule of Findings and Questioned Costs... 20

4 WIPFLiLLP Independent Auditor's Report Board of Directors Community Action Partnership oframsey and St. Paul, Minnesota..._ We have audited the accompanying statement of financial position of Community Action Partnership of Ramsey and (a nonprofit organization) as of September 30, 2011, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of Community Action Partnership of Ramsey and ' 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 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 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 referred to above present fairly, in all material respects, the financial position of Community Action Partnership of Ramsey and as of September 30,2011, 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. In accordance with Government Auditing Standards, we have also issued our report dated February 16, 2012, on our consideration of Community Action Partnership of Ramsey and ' 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 and should be considered in assessing the results of our audit.

5 Our audit was perfonned for the purpose of fonning an opinion on the basic financial statements of Community Action Partnership of Ramsey and taken as a whole. The accompanying schedule of expenditures of federal awards and other financial assistance, Schedules A-1 to A-2, which includes the requirements of U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. w~ u.;p Wipfli 1 Lt'P February 16, 2012 Madison, Wisconsin 2

6 Community Action Partnership of Ramsey & Statement offinancial Position September 30, 2011 Assets Current assets: Cash and cash equivalents Grants receivable Accounts receivable Escrow accounts, current Current portion of revolving loans receivable, net Prepaid expenses Other assets Total current assets Property and equipment, net Other assets: Revolving loans receivable, net Escrow accounts Total other assets TOTAL ASSETS $ 1,053,746 1,379, , , , ,612 79,851 3,528,599 5,743,421 79, , ,757 $ 9, Liabilities and Net Assets Current liabilities: Current maturities of capital lease obligation Accounts payable Accrued payroll and related expenses Accrued unemployment compensation Grant funds received in advance Total current liabilities Long-term liabilities: Capital lease obligation Total long-term liabilities Total liabilities Net assets: Unrestricted Temporarily restricted Total net assets TOTAL LIABILITIES AND NET ASSETS $ 185, ,252 1,366, , ,009 2,904,410 1,285,000 1,285,000 4,189,410 2,691,915 2,717,452 5,409,367 $ See accompanying notes to financial statements. 3

7 Community Action Partnership of Ramsey & Statement of Activities Year Ended September 30, 2011 Temporarily Unrestricted Restricted Total Revenue: Government grants $ 22,953,322 $ 0 $ 22,953,322 United Way support 270, ,006 Program income 977, ,509 1,243,678 Contributions 47,924 46,287 94,211 Rental income 751, ,617 Investment income 2, ,875 In-kind contributions 490, ,092 Other 7, ,899 Net assets released from restriction through satisfaction of program/purpose restrictions 529,932 ( 529,932) 0 Total revenue 26,030,789 ( 217,089) 25,813,700 Expenses: Program activities: Child education activities 13,180, ,180,937 Weatherization 6,437, ,437,028 Energy assistance 2,439, ,439,900 Property management 580, ,828 Planning 339, ,101 Community services 1,090, ,090,057 Total program activities 24,067, ,067,851 Supportive services: Fund-raising 90, ,075 Management and general 1,643, ,643,352 Total expenses 25,801, ,801,278 Change in net assets 229,511 ( 217,089) 12,422 Net assets- September 30,2010 2,462,404 2,934,541 5,396,945 Net assets- Se:Qtember $ $ $ See accompanying notes to financial statements. 4

8 Community Action Partnership of Ramsey & Statement of Cash Flows Year Ended September 30,2011 Increase (decrease) in cash and cash equivalents: Cash flows from operating activities: Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Provision for uncollectible revolving loans receivable Changes in operating assets and liabilities: Grants receivable Accounts receivable Prepaid expenses Other assets Accounts payable Accrued payroll and related expenses Grant funds received in advance Net cash provided by operating activities Cash flows from investing activities: Deposits to and interest retained in escrow accounts Withdrawals from escrow accounts Revolving loans issued Collections on revolving loans Purchase of ErOEerty and eguiement Net cash used in investing activities Cash flows from financing activities: PrinciEal Ea~ments on caeital lease obligation Change in cash and cash equivalents Cash and cash eguivalents at beginning of year Cash and cash equivalents at end of year $ 12, ,397 50, ,230 ( 97,900) ( 156,517) ( 579) ( 581,864) ( 158,154) ( 56,947) 31,733 ( 248,452) 246,257 ( 31 0,642) 293,145 ( 84,363) ( 1 04,055) ( 180,000) ( 252,322) I,306,068 $ 1,053,746 Supplemental cash flow information: Interest paid $ See accompanying notes to financial statements. 5

9 Community Action Partnership of Ramsey & Notes to Financial Statements Note 1 Summary of Significant Accounting Policies Nature of Operations Community Action Partnership of Ramsey and (the "Organization") was organized as a nonprofit corporation in The Organization was formed to develop and provide resources for the purpose of assisting low-income individuals through a variety of programs in Ramsey and Washington counties in Minnesota. The Organization is primarily supported through federal and state government grants. Federal Head Start grants are approximately 36% oftotal revenue. (" Basis of Presentation The basic financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. Classification of Net Assets Net assets and revenue, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Unrestricted Net Assets- Net assets that are not subject to donor-imposed stipulations. Temporarily Restricted Net Assets- Net assets subject to donor-imposed stipulations that may or may not be met, either by actions of the Organization and/or the passage of time. When a restriction expires, temporarily restricted net assets are transferred to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently Restricted Net Assets- Net assets subject to donor-imposed stipulations that they be maintained permanently by the Organization. Generally, the donors of these assets permit the Organization to use all or part of the income earned on any related investments for general or specific purposes. Currently, the Organization does not have any permanently restricted net assets. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 6

10 Community Action Partnership of Ramsey & Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (Continued) Revenue Recognition Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and nature of any donor restrictions. When a restriction expires, temporarily restricted net assets are reclassified as unrestricted net assets and reported in the statement of activities as net assets released from restrictions. If a restriction on a contribution is met in the year of contribution, the contribution is recorded as unrestricted revenue. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promises become unconditional. Grants are either recorded as contributions or exchange transactions based on criteria contained in the grant award. A. Grant Awards that are Contributions Grants that qualify as contributions are recorded as invoiced to the funding sources. Revenue is recognized as grant revenue in the accounting period when the related allowable expenses are incurred. Amounts received in excess of expenses are reflected as grant funds received in advance. B. Grant Awards that are Exchange Transactions Exchange transactions reimburse based on a predetermined rate for services performed. The revenue is recognized in the period the service is performed. Program Income Program income consists primarily of fees from exchange contracts with the head start and the weatherization departments and is recognized as revenue when the service is performed. Rental Income Rental income is recognized when earned. Advertising Advertising costs are expensed as incurred. Advertising expense was $215,887 for the year ended September 30,

11 Community Action Partnership of Ramsey & Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (Continued) Cash and Cash Equivalents For purposes of the statement of cash flows, the Organization considers all savings accounts and short-term investments purchased with a maturity date of three months or Jess to be cash equivalents. Accounts Receivable Accounts receivable consist primarijy of performance contract reimbursements. Management has determined that no a11owance for uncollectible receivables is required since coijection of the receivables are expected based on history and experience with these organizations. Revolving Loans Receivable These loans are stated at the amount of unpaid principal. An aijowance of$37,000 has been estab1ished for uncollectible accounts based on management's assessment of customer attributes. Property and Equipment Property and equipment are recorded at cost, or if donated, approximate fair value and depreciated using the straight-line method over the estimated useful life of the asset. The Organization considers property and equipment to be items with an original value of $5,000 or more and a useful life of over one year. Facilities leased under capital leases are recorded in property and equipment, with corresponding obligations carried in current and long-term liabilities. The amount capitalized is the lower of the present value of minimum lease payment or the fair value of the leased property. Amortization of capital leases is recorded on a straight-line basis over the estimated life of the property. The cost of equipment purchased with grant funds during the year is capitalized at cost on the statement of financial position. Depreciation is provided using the straight-line method over the estimated useful1ife of the equipment. The various funding sources have a reversionary interest in the equipment purchased with grant funds. Its disposition, as well as the ownership of any proceeds there from, is subject to funding source regulations. The net book value of equipment purchased with grant funds at September 30, 2011, was $1,084,200. Building renovations in the year ended September 30, 2002, were funded in part by a $200,000 grant from the Minnesota Department of Education. This grant must be repaid if the property is sold. As the Organization has no intention of se11ing the property, the initial grant was recorded as unrestricted revenue. 8

12 Community Action Partnership of Ramsey & Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (Continued) Income Taxes The Organization is exempt from income taxes under Section 50l(c)(3) ofthe Internal Revenue Code. It is also exempt from Minnesota franchise or income tax. The Organization is required to assess whether it is more likely than not that a tax position will be sustained upon examination on the technical merits of the position assuming the taxing authority has full knowledge of all information. If the tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The Organization has determined there are no amounts to record as assets or liabilities related to uncertain tax positions. Federal returns for the fiscal years ended September 30, 2008, and thereafter remain subject to examination by the Internal Revenue Service. In-Kind Contributions In-kind contributions for space, supplies, and professional services are recorded in the statement of activities as revenue and expenses in the period they are received. During the year ended September 30, 2011, the Organization received $490,092 in-kind, primarily for its Head Start program. In addition, the Organization received contributions of nonprofessional volunteer services with a value of approximately $31 0,000 primarily for its Head Start program. The nonprofessional volunteer services are not reported in the statement of activities. Cost Allocation Joint costs are allocated to benefiting program and support activities using various allocation methods, depending on the type of joint cost being allocated. Joint costs are those costs incurred for the common benefit of more than one of the Organization's activities and which cannot be readily identified with a final cost objective. Subsequent Events Subsequent events have been evaluated through February 16, 2012, which is the date the financial statements were available to be issued. Note 2 Concentration of Credit Risk The Organization maintains cash and cash equivalents at three banks. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per institution if they are interest bearing accounts and unlimited insurance for non-interest bearing accounts. The Organization use a combination of interest bearing and non-interest bearing accounts at their banks. At certain times during the year cash balances may be in excess of FDIC coverage. The Organization has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk on cash. 9

13 Community Action Partnership of Ramsey & Notes to Financial Statements Note 3 Grants Receivable This balance at September 30, 20 II, consisted of amounts due from various agencies as follows: Federally funded programs State and local funded programs Total $ 490, ,430 $ I Note 4 Escrow Accounts The Organization is required to make periodic deposits to several reserve funds established to meet future commitments. These funds are restricted for capital lease payments on the Bigelow building and consist of cash and cash equivalents. The lease payment account is for the obligation due in the next 12 months and, therefore, classified as a current asset. The reserve account is for the final lease payment and, therefore, classified as a noncurrent asset. Lease Payment Account Reserve Account Total Balance. September 30 $ $ $ Note 5 Property and Equipment The balance at September 30, 20II, consisted of the following: Land and land improvements Buildings Furniture and equipment Accumulated depreciation and amortization Propertv and equipment. net $ 1,506,435 6,9I7,653 2,673,515 11,097,603 ( 5,354,] 82) $ I The Organization received a temporarily restricted donation of a building with an appraised value of$2,150,000 in the year ended September 30, The Organization is required to return the building to the donor if they fail to use it in the Head Start program. As the building is depreciated, net assets are released from restriction on the statement of activities. 10

14 Community Action Partnership of Ramsey & Notes to Financial Statements Note 6 Capital Lease The Organization is the lessee of an office building under a capital lease expiring December The obligation under the lease has been recorded at the present value of the future minimum lease payments. The cost and accumulated amortization on the above property at September 30,2011, was as follows: Land and land improvements $ 790,353 Building 3,069,560 Subtotal 3,859,913 Accumulated amortization ( 1,588,356) Net $ Future obligations under the capital lease are as follows: 2012 $ 242, , , , ,350 Thereafter Total minimum lease payments 1,689,881 Amount representing interest ( 219,881) Present value of net minimum lease payments 1,470,000 Less - Current maturities Long-term lease obligation $ 1,285,000 Interest expense for the year ended September 30, 2011, was $62,488. At September 30, 2011, approximately 62% of the available space is leased to other entities that also primarily serve low-income individuals. Rent revenue received for the year ended September 30, 2011, was $751,617. Future anticipated rents under noncancelable leases are as follows: 2012 $ 693, , , , Total $ 2,078,871 11

15 Community Action Partnership of Ramsey & Notes to Financial Statements Note 7 Revolving Loans Receivable The Organization has received grants to make interest-free, 24-month installment loans to lowincome individuals for rental assistance, child care or medical bills, and vehicle purchase or repair. Any loan repayments are used to make other loans to low-income individuals. The receivable at September 30, 2011, was $263,437 which is net of an allowance for uncollectible accounts of$37,000. The current portion ofthe revolving loan receivable at September 30, 2011, was $184,186. Note 8 Temporarily Restricted Net Assets The temporarily restricted net assets are as follows: Source Restriction Amount Capital campaign Building activities $ 196,074 Donations City of St. Paul Donations Various purpose restrictions Donated building to Head Start Program Loan pool 268,307 2,014, ,156 Temporarily restricted net assets at September $ Note 9 Unemployment Insurance Trust The Organization is a participant in a Trust as an alternative means of funding unemployment costs. The Organization is required to make annual contributions to the Trust as determined by the Trustee. The payments made to the Trust by the Organization are used to pay unemployment claims as well as administrative costs of the Trust. Note 10 Retirement Plan All eligible employees of the Organization participate in a retirement plan authorized under Section 403(b) ofthe Internal Revenue Code. The Organization contributes 3% of the employees' eligible salaries. All amounts are vested upon contribution to the plan. The employer's contribution for the year ended September 30, 2011, was $259,037. The Organization also has a second plan authorized under Section 403(b) ofthe Internal Revenue Code. The second plan does not have an employer contribution and is available to employees to make contributions as soon as their hire date. 12

16 Community Action Partnership of Ramsey & Notes to Financial Statements Note 11 Operating Leases The Organization leases various space and equipment under operating leases. All lease agreements include provisions for termination should government funding become unavailable. Lease expense for the year ended September 30,2011, was $173,335. Minimum future rental payments under the operating leases are as follows: Total $ $ 184, , Note 12 Related Party The Organization is the lessee of an office building under a capital lease from Ramsey County (see Note 6). Ramsey County issued the certificates of participation to finance the building and renovations. Community Action Partnership of Ramsey and subleases space in this building to Ramsey County Human Services under a lease expiring August The current year rent received under this lease was $201,567. Note 13 Grant Awards At September 30, 2011, the Organization had received future funding commitments under various grants of approximately $15,136,000. These commitments are not recognized in the accompanying financial statements as receivables and revenue as they are conditional awards. Note 14 Program Operations The Organization has a grant with the State of Minnesota, Department of Commerce for outreach, intake, eligibility, and certification ofliheap-eligible participants. Client benefits for LIHEAP-eligible participants are subsequently paid directly by the state of Minnesota. Client benefits in the amount of $14,841,246 paid by the state are not included in the statement of activities as they were not part of the grant award. 13

17 Additional Information

18 Community Action Partnership of Ramsey & Schedule A Schedule of Expenditures of Federal Awards and Other Financial Assistance Year Ended September 30, 2011 (Grants Receivable) Grant Funds Received in CFDA Grant Program Grantor Program Program Advance Number Number Name Agency Period Amount 09/30/10 ASSISTANCE PROGRAMS AS IDENTIFIED IN THE CATALOG OF FEDERAL DOMESTIC ASSISTANCE Department of Agriculture N/A USDA Food Support MN Comm Action I 0/01/10-09/ ,450 $ N/A Child/ Adult Care Food Prog. MN Dept. of Education 10/01/10-09/30/11 Various ( 44,712) Department of Energy DOE Weatherization MN Dept. ofcomm. 07/01/09-06/ ,289,587 3, ARRA DOE Weatherization MN Dept. ofcomm. 07/01/09-06/ ,042,797 ( 870,304) ARRA Subtotal and ARRA! 866,9811 Department of Health and Human Services EAI 1564 EAP Weatherization CO FFYI1 MN Dept. ofcomm. 07/ / , EAO 1564 EAP Weatherization CO FFYIO MN Dept. ofcomm. 07/ / ,05I ( 29,423) Energy Assistance MN Dept. ofcomm. I0/01/1 0-09/ ,191, Reach Out For Wannth-Gov't MN Dept. ofcomm. I 0/01/I 0-09/3011I 27, I563 Energy Assistance MN Dept. ofcomm. 10/0 I /09-09/30/I 0 3,38I,074 ( 220,152) Reach Out For Wannth-Gov't MN Dept. ofcomm. 10/01/09-09/30/IO 2I7,600 ( 5(),264) Subtotal ! 299, R Community Service Block Grant MN Dept. of Human Serv 07/01/09-12/31/11 2,070,073 ( 52,827) CH0202/45 Head Start U.S. Dept. ofhhs 04/01/10-03/31/11 7,894,070 ( 323,967) CH0202/45 Early Head Start U.S. Dept. ofhhs 04/01/10-03/31/11 459,202 ( 18,777) CH0202/46 Head Start U.S. Dept. ofhhs 04/01/11-03/31/12 7,928, CH0202/46 Early Head Start U.S. Dept. ofhhs 04/ / ,873 0 Subtotal ! 342, SE0202/0 I ARRA Head Start U.S. Dept. ofhhs 07/01/09-09/ ,394 ( 7,962) ARRA {Grants Receivable) Grant Federal Funds Expenditures Current Current Received in Included Grant Other Current Advance in Current Receipts Revenue Expenses 09/30/11 Expenses $ 37,425 $ 0 ($ 60,450) ($ 23,025) $ 60, ,061_ ()_ ( 590,335} { 44,986) , , ( 979,845) ( 2,544) 979,820 5, ! 4,757,582) ( 265,628) 4,757,582 6,336,21l 25! 5,737,4271 ( 268,17V 5,737, ( 8,062) ( 8,062) 796,466 0 ( 767,043) 0 2,285,849 14,841,246 ( I7,347,403) ( 220,308) 27,2I2 0 ( 27,458) ( 246) 220,I , ,379,943 14,841,246! 18,149,966!! 228, ,149,966 1,002,703 0 ( 1,268,865) ( 318,989) 4,601, ,826 ( 4,942,251) 0 229,105 0 ( 210,328) 0 3,133, ,879 ( 4,097,017) ( 428,616) 216,481 0 ( 235,182) ( 18,701) 8,180,500 1,199,705! 9,484, 7781 ( 447,317) 8,285,073 7, See Independent Auditor's Report 14

19 Community Action Partnership of Ramsey & Schedule A Schedule of Expenditures of Federal Awards and Other Financial Assistance Year Ended September 30, 2011 (Grants Receivable) Grant Funds Received in CFDA Grant Program Grantor Program Program Advance ~ Number Name Agency Period Amount 09/30/10 ASSISTANCE PROGRAMS AS IDENTIFIED IN THE CATALOG OF FEDERAL DOMESTIC ASSISTANCE (Continued) Department of Health and Human Services (Continued) SA0202/0 I ARRA Early Head Start U.S. Dept. ofhhs 12/01/09-09/30/11 2,039,104 ( 170,818) ARRA Expansion Subtotal ARRA ( 170,818) ARRACSBG MN Dept. of Human Serv 07/0 I /09-09/30/10 1,625,802 ( 176,632) ARRA Subtotal ARRA ( 176,632) TOTAL FEDERAL PROGRAMS ($ 1,962,515) STATE AND LOCAL PROGRAMS N/A N/A Family Assets for Independence Various 10/0 I /04-09/30/11 Various $ 38,677 N/A R MCAG MN Dept. of Human Serv 07/01/09-06/30/11 475,244 ( 375) N/A N/A United Way Food Support Greater TC United Way I 0/0 I /10-09/30/11 60,450 0 N/A N/A United Way Food Support Greater TC United Way I 0/0 I /11-09/ ,000 0 N/A Minnesota Head Start MN Dept. of Education 07/01/10-06/30/11 1,977,597 2,862 N/A Minnesota Head Start MN Dept. of Education 07/01/11-06/30/12 2,500,247 0 N/A Minnesota Early Head Start MN Dept. of Education 07/01 I I 0-06/30/11 521,272 ( 3,024) N/A N/A Numbers Work! St Paul Foundation 07/01/11-06/30/12 84,300 0 N/A N/A Conexus Energy Conexus Energy Ongoing 23,470 0 N/A N/A Family Loan Program McKnight Foundation Ongoing Various 230,379 N/A N/A United Way Healthy Children Greater TC United Way 01/01/10-12/ ,950 24,148 N/A N/A United Way Healthy Children Greater TC United Way 01101/11-12/ ,950 0 N/A N/A United Way Bright Smiles Greater TC United Way / , N/A N/A United Way Bright Smiles Greater TC United Way /31/1 I 42,500 0 TOTALSTATEANDLOCALPROGRAMS $ 293,233 TOTALGRANTFUNDEDPROGRAMS ($ 1,669,282) (Grants Receivable) Grant Funds Current Current Received in Grant Other Current Advance Receiets Revenue Exeenses 09/30/11 1,093, ,500 ( I,207,500) ( 43,261) 1,093, ,500! 1,207,500)! 43,261) 176, , $ 20,804,994 $ 16,282,476 JS 36,499,321) (S 1,374,366) $ 4,482 $ 0 ($ 43,159) $ 0 237,430 0 ( 237,055) 0 60,450 0 ( 60,450) 0 50, ,000 1,621,640 89,106 ( 1,713,608) 0 464,698 62,365 ( 528,081) ( 1,018) 407, ,147 ( 515,207) ( 3,043) ( 3,043) 11,190 0 ( 11,771) ( 581) 0 0 ( 50,646) 179,733 37,739 0 ( 61,887) 0 113,212 0 ( 106,466) 6,746 10,622 0 ( 11,188) ! 25,348) $ 3,050,425 $ 262,618 {$ 3,367,909) $ 238,367 $ 23,855,419 $ 16,545,094 ($ 39,867,230) ($ 1,135,999) Federal Expenditures Included in Current Expenses 966,000 0 s 35,058,091 Notes to Schedule of Expenditures of Federal Awards and Other Financial Assistance Note I - This schedule includes the grant activity of Community Action Partnership of Ramsey and and is presented on the accrual basis of accounting. The infonnation in this schedule is presented in accordance with the requirements ofomb Circular A-133, Audit.< of States, Local Governments, and Non-Prqfit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2- Included in CFDA # are client benefits paid by the state of Minnesota of$14,841,246. These expenditures are not included in the statement of activities. Note 3- CFDA and ARRA are a cluster program. Note 4- CFDA and are a cluster program. Note 5- CFDA , and are a cluster program. See Independent Auditor's Report 15

20 WIPFLiLLP 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 Board of Directors Community Action Partnership of Ramsey and St. Paul, Minnesota We have audited the financial statements of Community Action Partnership of Ramsey and (a nonprofit organization) as of and for the year ended September 30, 2011, and have issued our report thereon dated February 16, We conducted our audit in accordance with auditing standards generally accepted in the United States 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 Community Action Partnership of Ramsey and Washington Counties' internal control over financial reporting as a basis for designing our auditing procedures 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 Community Action Partnership of Ramsey and ' internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Community Action Partnership of Ramsey and ' internal control over financial reporting. 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. Our consideration of the internal control over financial reporting 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 financial reporting that might be deficiencies, 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. 16

21 Compliance and Other Matters As part of obtaining reasonable assurance about whether Community Action Partnership of Ramsey and ' 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. This report is intended solely for the information and use of management, the Board of Directors, others within Community Action Partnership of Ramsey 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. w~up Wipm'd:'r February 16,2012 Madison, Wisconsin 17

22 WIPFLiLLP Independent Auditor's Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Program and Internal Control Over Compliance in Accordance With OMB Circular A-133 Board of Directors Community Action Partnership of Ramsey and St. Paul, Minnesota Compliance We have audited Community Action Partnership of Ramsey and ' compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended September 30, Community Action Partnership oframsey and ' major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Community Action Partnership of Ramsey and ' management. Our responsibility is to express an opinion on Community Action Partnership of Ramsey and ' compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 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, on a test basis, evidence about Community Action Partnership of Ramsey and ' 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. Our audit does not provide a legal determination on Community Action Partnership of Ramsey and ' compliance with those requirements. In our opinion, Community Action Partnership of Ramsey and complied, in all material respects, with the requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30,

23 Internal Control Over Compliance The management of Community Action Partnership oframsey and is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Community Action Partnership of Ramsey and ' internal control over compliance with requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express any opinion on the effectiveness of Community Action Partnership of Ramsey and ' 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. 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management, the Board of Directors, others within Community Action Partnership of Ramsey 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. W~uP Wipfl1L~P February 16,2012 Madison, Wisconsin 19

24 Community Action Partnership of Ramsey and Schedule of Findings and Questioned Costs A. Summary of Auditor's Results 1. The auditor's report expresses an unqualified opinion on the financial statements of Community Action Partnership of Ramsey and. 2. No significant deficiencies relating to the audit of the financial statements is reported in the 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. 3. No instances of noncompliance material to the financial statements of Community Action Partnership of Ramsey and were disclosed during the audit. 4. No significant deficiencies were disclosed during the audit of the major federal programs as reported in the Independent Auditor's Report on Compliance With Requirements That Could Have a Direct and Material Effect on Each Major Program and Internal Control Over Compliance in Accordance With OMB Circular A The auditor's report on compliance for the major federal award programs for Community Action Partnership of Ramsey and expresses an unqualified opinion. 6. There were no audit findings relative to the major federal award programs for Community Action Partnership of Ramsey and. 7. The programs tested as major programs were the U.S Department of Energy, Weatherization CFDA # and CFDA # ARRA; U.S. Department ofhealth and Human Services, Energy Assistance CFDA # The threshold for distinguishing Types A and B programs was $1,051, Community Action Partnership of Ramsey and was determined to be a low-risk auditee. B. Findings - Financial Statements Audit Findings: None 20

25 Community Action Partnership of Ramsey and Schedule of Findings and Questioned Costs c. Findings - Major Federal Award Programs Audit Findings: Questioned Costs: None None D. Prior Year Findings and Questioned Costs Findings: Questioned Costs: None None 21