Early Learning Coalition of Brevard County, Inc. Minutes:

Transcription

1 Early Learning Coalition of Brevard County, Inc. Minutes: Board of Directors Meeting Date/Time: Tuesday, January 19, 2016 at 4:00 p.m. Location: Early Learning Coalition of Brevard, Conference Room 1018 Florida Ave, Rockledge, FL Members Present: Terri Barlow, Alan Bergman, Marci Brilley, Cathy Beam, Donna Beettam, Mark Broms, Priscilla DeNino, Mike Durante, Stephanie Bryant (for Ian Golden), Jeffrey Harrison, Tom Peer, Beth Mills, Myrna Shimei, Travia Williams Excused Absent members: Lori Duester, Natalie Jackson, Mica Layne, Althea Puzio Unexcused Absent Members: N/A Staff Present: Sky Beard, Jessica Beecham, Sue Falcioni, Leslie Hewitt, LaShaundra McGhee, Cathie Odom, Emily Orndorff, and Gina Sousa Guest Present: Called to order: Alan Bergman called the meeting to order at 4:09 p.m. Pledge of allegiance took place. Quorum was established. Agenda Item Summary/Discussion Action/Follow-up Consent Items a. Minutes: October 20, 2015 & November 17, 2015 b. Directors Report (November 2015 and January 2016) Beth Mills motioned for the Consent Items to be approved. Myrna Shimei seconded the motion. The motion passed unanimously by all Board members. Committee Reports Old Business Executive/Finance Committee: Alan Bergman reported to the Board that the Executive/Finance Committee met on December 14, 2015 and January 11, The following agenda items were discussed: December 14, 2015: Approval of November 9, 2015 Minutes Revision of Bylaws Children s Services Council Update Annual Performance Review of Executive Director (Follow Up) Next Committee January 11, 2016 Approval of December 14, 2015 Minutes Approval of Revised Bylaws Finance Policies Annual Audit and Form 990 School Readiness Utilization Contract Terminations o Alan informed the Board that he has spoken to OEL about liability insurance for the board members regarding contract terminations. Finance Report and Waiting List/New Enrollment Update: Cathie Odom presented the Board with the Grant Earmarks and Restrictions (see attached). Currently there are 500 children on the wait list; 375 children are birth to 5 years old, 125 school age children. At this time, the Eligibility specialists are calling families off the list from November The Board was reminded that since we are within the three months of No Action/Follow-up No Action/Follow-up Page 1 of 3 January 2016 Minutes

2 New Business families going on the waitlist, families that came in under DCF referrals are able to continue services after the two month referral if they qualify under other another funding category. Sky discussed with the Board new federal requirements and how the 12-month eligibility process may effect waitlist numbers. Audit Presentation: Richard Cassidy, representative from Moss, Krusick & Associates, LLC, was introduced to the Board. Richard reviewed the financial statements and supplemental information for years ended June 30, 2015 and Mike Durante inquired about the related party transactions. The related parties were five board members that are affiliated with payments for School Readiness and VPK services. Jeffrey Harrison motioned for the approval of the Early Learning Coalition of Brevard County, Inc. Financial Statements and Supplemental Information Years Ended June 30, 2014 and 2015 as presented. Priscilla DeNino seconded the motion. The motion passed unanimously by all Board members. Public Comment Revised Bylaws: Sky explained to the Board that revisions were made to the bylaws because of feedback from OEL during a recent accountability review. The membership and absences section of the bylaws were updated because OEL noticed that the current bylaws were not being followed. The Board reviewed the following sections: added as an explanation private sector appointment office absences address will be addressed by the Executive/Finance Committee The effected date will be from the current date forward. The Executive/Finance Committee has reviewed the revised bylaws and is recommending an approval of the presented Bylaws. Key Result Area Committee Meetings: Key Result Area Committees met as needed. LaShaundra McGhee took this time to thank Tom Peer for coming to the Coalition in December as Santa for several of the local child care centers. LaShaundra also thanked Jennifer Shields for her support. Mark updated the Board about STEAM and asked that Board members volunteer for the event. Mike Durante motioned for the approval of the revised Early Learning Coalition of Brevard Bylaws. Myrna Shimei seconded the motion. The motion passed unanimously by all Board Members. No Action/Follow-up Cathy Beam inquired about when the child care providers would be informed about the QRIS. LaShaundra expects to be able to discuss the QRIS at the mandatory spring Provider meeting. Adjournment The Full Board meeting was adjourned at 5:00 pm Marci Brilley motioned for the adjournment of the Board meeting. Myrna Shimei seconded the Page 2 of 3 January 2016 Minutes

3 motion. The motion passed unanimously by all Board members. Next Meeting February 16, 2016 No Action/Follow up January 2016 Board of Directors Minutes Approved: Respectfully Submitted, Approved Signature Date Signature Date Executive Coordinator Executive Director Page 3 of 3 January 2016 Minutes

4 Board of Directors Meeting Tuesday, January 19, :00 pm I. Call to Order AGENDA II. III. IV. Pledge of Allegiance Coalition Roll Call by Self Introduction Consent Items a. Minutes: October 20, 2015 and November 17, 2015 b. Director s Reports (November 2015 and January 2016) V. Committee Reports a. Executive / Finance Committee VI. VII. VIII. IX. Old Business a. Finance Report and Waiting List/New Enrollment Update New Business a. Audit Presentation b. Revised Bylaws c. Key Result Area Committee Meetings Public Comment Adjourn Next Meeting: February 16, 2016

5 IJIINUTES: DATEÆIME: IÍKATION: MEMBERS PRESENT: EX(USEÞ ABSENT MEIIIBERS: UNÐ((USEÞ ABSENT MEIIIBERS: STAFF PRESENT: GUEST PRESÉNT: (AIIEÞ IO ORDER: EARLY TEARNING COALITION OF BREVARÞ COUNTY, IN( Board of Directors Meeting Tuesday, October 20,zOtS at 9:00 a.m. Early Learning Coalition of Brevard, Conference Room Florida Ave, Rockledge, FL Terri Barlow, Cathy Beam, Alan Bergman, Marci Brilley Mark Broms, Priscilla DeNino, Lori Duester, lan Golden, Jeffery Harrison, NatalieJackson Mica Layne, Elizabeth Mills, Tom Peer, Althea Puzio, Myrna Shimeiand Travia Williams Terri Barlow, Donna Beettam, Mike Durante, and Robert Green Sky Beard, Jessica Beecham, Kevin Carraro, Michelle Dockery, Sue Falcioni, LaShaundra McGhee, Dennise Milan, Cathie Odom, Emily Orndorff, and Tina Snyder Dr. Alisa Ghazvini, AELC; Jennifer Grant, ELC of Seminole County; Tameka Mays and Lawana Tucker, ELC of Lake County; Lois Smith, ELC of Orange County; Nancy Walsh, ELC of Flagler and Volusia Counties Alan Bergman called the meeting to order at 9:15 a.m. Pledge of allegiance took place and introductions were conducted. Quorum was established. A<ÐIDA IIEII grrfittilary/dtsajssrcil A I1oil/F{il f ry-tp Consent ltems a. Minutes: September t5,20ls b. Directors Report À CI LD'' 'UTOR! Priscilla DeNino mot oned for the Consent ltems to be approved. Althea Puzio seconded the motion. The motion passed unanimously by allboard members. New Business ELC Awards and Recosnitions: Alan Bergman discussed the Humanitarian Award and thanked the Board and stafffor alltheir hard work. The ceremony will be on November 5, 20L5. The Board also discussed the Florida Today Volunteer Recognition Awards nomination and the importance of being a finalist. The recipient of the award will be announced at the award ceremony on November 12,2015. Sky informed the Board of several different committees and workgroups she serves on both locally and statewide: o Co-Chair of Association of Early Learning Coalition's Program and Policy Committee Secretary of Association of Early Learning Coalition's Executive Committee o Member of State CCDF Workgroup. Engaged member of the Central Florida Partnership (Cradle to Career: Talent Pipeline lnitiative) o United Way Education Committee member Space Coast Living selected Mark Broms for the Giving Back November issue. The draft article was shared with the Board members. Election of Officers: The Officer ballots were distributed to the members and collected once completed. The ballots were tallied and unanimously voted as followed: Elizabeth Mills - Page 1 of 4 October 2015 M nutes

6 Vice Chairperson, Mark Broms - Secretary, and Jeffrey Harrison remains Treasu rer. Processins of Providers Visits: The Board members and Leadership Team discussed the provider visits recently conducted. The Board discussed the quality of the centers they visited and the various factors involved in the varying degrees of quality observed. Cathy Beam discussed the TEACH scholarship with the providers she visited and explained the scholarship to the Board. Alan Bergman inquired about Brevard Public Schools offering VPK and the private providers' outlook regarding their role in early childhood education. Priscilla DeNino spoke for both BPS and private providers and reminded the Board that there are over 4,500 VPK certificates issued in Brevard County and Brevard Public Schools only has approximately 850 VPK of those students enrolled in their programs (approximately 2Oo/ol. fhe Board members agreed that a reason quality might be lacking in centers is because there is not a clear understanding or vision what high quality care looks like. The members discussed the importance of parental involvement and educating parents, owners, directors and teachers the importance of quality care in early learning centers. The implantation of a local QRIS may help with the quality of care in the centers throughout Brevard. The Board will be discussing QRIS with a panel later in the meeting. Review of Committee Structure: The Board discussed their desire to keep the committee meeting schedule as is with meetings occurring every other month duriirg the regularly scheduled Board meeting. At the next committee meetings, the members will vote on a new champion if the current champion would like to step down. The Performance lmperative: Due to time constraints, this activity will be conducted at a later meeting date. FY Annual Report: The Board received a copy of the report prior to the meeting and will be reviewed at a later meeting date. FY Satisfaction Survev Report: The Board received a copy of the report prior to the meeting and will be reviewed at a later meet ng date. Trauma lnformed Care Presentation: Kevin Carraro provided the board with a presentation on Trauma lnformed Care (see attached). Trauma informed care is a framework implemented in a variety of organizations and provides an opportunity to see things through a trauma informed "lens." The Board reviewed the different types of stress, the effects of trauma on children and how the community and Board can Page 2 of 4 october 2015 M nutes

7 assist (see attached) CCDF Overview: Dennise Milan reviewed information about the Child Care Development Block Grant reauthorization (see attached) with the Board. The Board reviewed the law from the federalgovernment on how all states must implement the child care program and the changes that may come. Dennise explained that at this time, OEL is requesting that locally the ELCs staff, boards and providers submit information that might help the federal government when making the changes to the CCDF plan. The Board quested that Coal tion staff provides details as to how the changes will affect each of their organizations individually. QRIS PanelDiscussion: LaShaundra McGee, Director of Quality Assurance, reminded the Board of the approved budgeted amount to implement a local Quality Rating lnformation System. The Board reviewed a national map of the status of QRIS in the US (see attached). After some discussion LaShaundra introduced the QRIS panel: Dr. Alisa Ghazvini, Executive Director, Association of Early Learning Coalitions; Lois Smith, Director of Provider Services, Early Learning Coalition of Orange County; Nancy Walsh, Executive Director, Early Learning Coalition of Flagler and Volusia Counties; Tameka Mays, Quality Operations Director, Early Learning Coalition of Lake County; Lawana Tucker, Education Specialist, Early Learning Coalition of Lake County; and Jennifer Grant, Executive Director, Early Learning Coalition of Seminole County. The panel discussed the following information and how it pretends to each of their systems: o Nationaltrends and perspective Florida's history and future o lmplementationprocess Provider feedback o Staffing o Cost. Application and selection process o Lessons learned. Next steps The Board had no questions for the panel. Committee Reports Executive/Finance Committee: Alan Bergman reported to the Board that the Executive/Finance Committee met on October L2,2015. The following agenda items were discussed:. Approval of meeting minutes o Quarterly Financial Reports - Cathie Odom reviewed the quarterly financial reports and the Committee had no areas of concern. o VPK Readiness Rate Rule - The Committee discussed the details of the proposed rule and Sky will continue Page 3 of 4 October 2015 Minutes

8 a to provide feedback through the rule development process. Annual Meeting Agenda - the Committee discussed the agenda for the current meeting Schedule for Annual Performance Review of ED - The review will begin November. OId Business Finance Report and Waiting List/New Enrollment Update: No Action/Follow-up Cathie Odom presented the Board with the Grant Earmarks and Restrictions (see attached). Currently There are 747 children on the wait lisu 626 children are birth to 5 years old, 126 school age children. Coalition staff is calling families off the wait list from November 20L4. Enrollment for School Readiness is down; however, enrollment for VPK is up and additional funding may be required. Public N/A Comment Adjournment The Full Board meeting was adjourned at 3:32 Jeffrey Harrison motioned for the adjournment of the Board meeting. Myrna Shimei seconded the motion. The motion passed unanimously bv all Board members. Next Meeting November 17,2015 No Action/Follow up October 2015 Board of Directors Minutes Approved Res pectfu I ly Su bm itted, re Date Executive Coordinator Lo Approved Sl, t&on. :-,0 tlplu^ Signature Executive Director Date I Page 4 of 4 october 2015 Minutes

9 IJIINUTES: DAIEÆII IE: LO(ATION: MEIì,IBER9 PRESENT: Ð(USEÞ ABSENT IIIEIIIBERS: T'NÐ(USED ABSENT MEMBERS: 9TAFF PRESENT: GUEST PRESENT: CATIED IO ORÞER: EARLY LEARNING (OALITION OF BREVARD COUNTY. IN( Board of Directors Meeting Tuesday, November 17,2OLS at 4:00 p.m. ctûtds f0for t ^ Early Learning Coalition of Brevard, Conference Room L018 Florida Ave, Rockledge, FL Terri Barlow, Alan Bergman, Donna Beettam, Alan Bergman, Mark Broms, Priscilla DeNino, Lori Duester, Jeffery Harrison, Tom Peer, Althea Puzio and Travia Williams Mike Durante, lan Golden, Robert Green, Natalie Jackson, Mica Layne, Elizabeth Mills and Myrna Shimei Cathy Beam and Marci Brilley Sky Beard, Jessica Beecham, Kevin Carraro, Michelle Dockery, Sue Falcioni, LaShaundra McGhee, Dennise Milan, Cathie Odom, Emily Orndorff, and Tina Snyder Alan Bergman called the meeting to order at 4:L2 p.m. Pledge of allegiance took place and introductions were conducted. Quorum was not established. AGEIDÀ ffeii srfiütary/dtscljssloñ A noil/follot-{p Consent ltems Committee Reports a. Minutes: October 20,zOLs b. Directors Report Executive/Finance Committee: Alan Bergman reported to the Board that the Executive/Finance Committee met on November 9, The following agenda items were discussed: Items were moved to the next Board of Directors Meeting because quorum as not established. No Action/Follow-up Old Business New Business. Approval of October 12,2015 meeting minutes r Quarterly Budget Variance report: viewed with Cathie Odom and there were no areas of concern. Reimbursement Policy: Reviewed and approved o Bank Account Updates: Committee voted to have the bank account updated to remove Gwen Hertlein- Haber and to add the new Director of Program I nitiatives, once hired. o The Committee discussed the annual performance review of the Executive Director. The review will be completed at the December meeting. Finance Report and Waitine List/New Enrollment Update: Sky reported to the Board that the Finance report was not available because the month was not closed as of date. The Board was informed there are currently 793 children on the waitlis! 82% of the children are birth to five years old. Coalition staff is currently calling families off the waitlist from June 201-5, December Meeting: The Board discussed past cancelations of the December Board meetings. Sky Beard will send an to all board members asking for a vote regarding the December board meeting schedule. Board Governance Training Opportuniw: Sky informed the Board members of the Board Governance Training opportunity and an with the details how to sign up will be sent out. No Action/Follow-up Sky Beard sent regarding the Board's desires related to the December meet ng; a major ty vote indicated the December meeting is to be cancelled. Page 1 of 2 November 2015 Minutes

10 Kev Result Area Committee Meetinss: The Quality lnitiatives and lmprove Technology committees will meet. Public Comment Mark Broms discussed with the Board the ELC Nomination for the 2015 Florida Today Volunteer Recognition Awards and thanked the ELC staff for all their hard work. However, the Coalition did not win. Mark suggested that throughout the year the Coalition should highlight the community events and volunteers with letters of thanks and support. No Action/Follow-up Adjournment The Full Board meeting was adjourned ar.4:47 Jeffrey Harrison motioned for the adjournment of the Board meeting. Lori Duester seconded the motion. The motion passed unanimously by all Board members. Next Meeting January 19,2016 No Action/Follow up November 2015 Board of Directors Minutes Approved Res pectfu lly Su bm itted, a Approved Ór, 1ìon -.() tlnlk" ure Executive Coordinator Date Signature Executive Director Date Page 2 of 2 November 2015 M nutes

11 Director s Report November 2015 State and Office of Early Learning (OEL) Update: The Office of Early Learning conducted an onsite Accountability Review on November 2 4, The review included evaluation of School Readiness and VPK child eligibility, VPK provider eligibility, data quality reports, governance and developmental screening. A preliminary exit conference was held via telephone on November 10. Once the final report is received, it will be shared with the Board of Directors. Coalition Update: The Coalition was notified that the license for Leonard Large Family Daycare Home had been revoked on November 9, Therefore, the Coalition notified the provider that the associated School Readiness contact has been terminated. There were 19 School Readiness children enrolled at the time and Coalition staff contacted families and offered assistance in identifying another contracted provider. The Help Me Grow State Coordinator will be in Brevard on November 17 for a full day meeting with affiliated community partners. The meeting will provide an overview of the Help Me Grow program and allow the partners to review Brevard s program implementation plan with the Coordinator. The Help Me Grow contract has been received by 211 and they have conducted interviews for the Help Me Grow Care Coordinator. A contract between 211 and ELC is under development for the implementation of additional screening opportunities, training and the Ages and Stages Questionnaire data system. Sky Beard continues to participate as a member of United Way s Education Committee. The committee will be meeting again on November 12 with a focus on establishing a charter for the committee as well as continuing discussions about United Way s current education initiatives and recommendations for the future direction of this important work. Cathie Odom and Sky Beard will be attending the National Wipfli Conference in Orlando on December 1 4, The cost of the conference is sponsored by the Office of Early Learning. This high quality conference focuses on fiscal accountability and will provide the most current information available on federal fiscal regulations, contract compliance and fiscal best practices. The Coalition is once again partnering with The Beach 98.5, HealthSouth Sea Pines and Two Men and a Truck for a holiday Toy Drive to assist currently enrolled School Readiness families. If you know of a business who may be interested in serving as a toy drop off location site, please let Sky know. The Toy Drive will include a Fill the Truck event on Saturday, December 12 at The Avenue Viera.

12 Director s Report January 2016 State and Office of Early Learning (OEL) Update: The Office of Early Learning conducted an onsite Accountability Review on November 2 4, The review included evaluation of School Readiness and VPK child eligibility, VPK provider eligibility, data quality reports, governance and developmental screening. The Coalition provided a preliminary response however, the draft report yet has not yet been received. It is anticipated that the report will be submitted to the Coalition from OEL in mid to late January. Once received, the Coalition will have an opportunity to clarify the draft report prior to the final report being released. Once the report is finalized, it will be shared with the Board of Directors. Coalition Update: The Coalition continues its involvement in the implementation phase of Help Me Grow in Brevard. Along with Brevard, Early Steps, Brevard Public Schools, United Way, Brevard Health Alliance, Space Coast Health Foundation, The Scott Center at Florida Tech and community volunteers, the Early Learning Coalition is supporting opportunities for increased developmental screening and assisting families with navigating the process for evaluation, referrals and follow up if concerns are identified. The Coalition is researching the utilization of ASQ Online/Family Access for Help Me Grow families which will allow parents to complete developmental screenings online. The Coalition continues the planning for STEAM: Discover the Power of Creativity in partnership with Brevard Zoo. Exhibitors have been identified and the final stages of event planning are underway. Please join us on Saturday, February 6 from 9:30 am 3:00 pm for this exciting event benefitting ELC! Sky Beard has been requested to participate as a member of the Association of Early Learning Coalitions Strategic Planning Workgroup. The Association s Strategic Planning process began on January 12, 2016 with feedback obtained from all Early Learning Coalition Executive Directors. On January 13, the smaller Planning Workgroup met to continue the strategic planning work which will be presented to the full membership in May 2016 for approval.

13 Match Development Report M Dec 15 Economically Disadvantaged Direct Svcs Projected Match Match Waived Total Match Requirement Cash Match Sources United Way CDBG Funders Other direct match funders lndirect match funders Total Budget 7,3$O,L2O 442,807 Thru t2/3t/2o7s 3,690, , , ,404 Total Projected Thru 12/3r/2OL5 275,OOO 57,154 2, ,500 Actual 3,239,L1L L94, ,347 Actual t37,l30 L6,801 7 ln-kind Match Sources Public Education Program Managed lt Services Professiona I Services/Other 35,466 67,507 5,180 77,733 33,754 2,590 36,937 20,896 1, ,807 19t, ,834 Estimated Match Remaining 0 29,827 (18,487l.

14 Early Learning Coalition of Brevard County, lnc. Grant Earmarks and Restr ct ons FY15.16 Category of Spending School Readiness Actual thru FY Award L2/3L/Ls Current% Earmark/Restrictions School Readiness Earmarks Award Amount Dìrect Services Cost s s 17,r65,t48 13,388, ,778, % MinimumTSo/o 5.46% 7.66% r D rect Services Cost Non-Slot Dollars: Admin Cost Non-D rect Cost Quality Cost Childcare Resource & Referral Cost s 838,440 s L,388, ,s00 340, ,343 60L, , ,s % Maximum 5% 7.30o/o 2.95o/o Minimum 4o/o L.660/o r Admin Cost r Non-Direct Cost t Quality Cost Total Non-Slot Dollars s E, OO,SZr s L,465,27O L7.77% Maximum22% r Childcare Resource & Referral Cost Category of Spending FY Award VPK Actual thru r2/3r/ls Current% Earmark/Restrictions t.97% VPK Earmarks.ooo/" Award Amount Direct Services Cost Non-Slot Dollars: Admin Cost Enrollment Cost Monitoring Cost s s s rl,240,542 10,808,213 s 5,200, % Minimum96o/o 278,858 s 140,501 t2,970 L45,338 t07,3lo 2.67o/o I.97o/o 0.O0o/o Maximum 4% I Direct Services Cost r Adm n Cost I Enrollment Cost r Monitoring Cost Total Non-Slot Dollars s 432,329 s 2s2, %

15 Fiscal Year Children Served 4,000 3,800 3,600 3,400 3,200 3,000 3, FY #-Ser es3 2,800 i g"õ28s3ëoã> Wait List o s00 t490 -FFY14.15 {-FY15.16 Waitlist vs. Served - Current FY 3s s f- waitlist --.-Served -*-Schl Age WL 0 July Aug Sept Oct Nov Dec Jan Feb Mar April May June

16 EARLY LEARNING COALITION OF BREVARD COUNTY, INC. Financial Statements and Supplemental Information Years Ended June 30, 2015 and 2014

17 TABLE OF CONTENTS Page INDEPENDENT AUDITORS REPORT 1-2 FINANCIAL STATEMENTS Statements of Financial Position 3 Statements of Activities and Changes in Net Assets 4 5 Statements of Functional Expenses 6 7 Statements of Cash Flows 8 Notes to Financial Statements 9 17 SUPPLEMENTAL INFORMATION Independent Auditors 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 19 Independent Auditors Report on Compliance for Each Major Federal and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and State of Florida Chapter , Rules of the Auditor General Schedule of Findings and Questioned Costs Schedule of Expenditures of Federal Awards and State Financial Assistance 25

18 INDEPENDENT AUDITORS REPORT To the Board of Directors of Early Learning Coalition of Brevard County, Inc. Rockledge, Florida Report on the Financial Statements We have audited the accompanying financial statements of Early Learning Coalition of Brevard County, Inc. (a nonprofit organization), which comprise the statements of financial position as of June 30, 2015 and 2014, and the related statements of activities and changes in net assets, functional expenses, and cash flows for the years 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. Auditors Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 auditors 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 financial statements referred to above present fairly, in all material respects, the financial position of Early Learning Coalition of Brevard County, Inc. as of June 30, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. 1

19 Other Matters Other Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards and state financial assistance, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and State of Florida Chapter , Rules of the Auditor General, 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 audits 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 January 19, 2016, on our consideration of Early Learning Coalition of Brevard County, Inc. s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 Early Learning Coalition of Brevard County, Inc. s internal control over financial reporting and compliance. January 19, 2016 Winter Park, Florida 2

20 Early Learning Coalition of Brevard County, Inc. STATEMENTS OF FINANCIAL POSITION June 30, 2015 and 2014 ASSETS Current assets: Cash and cash equivalents $ 563,798 $ 368,811 Grants receivable 1,988,230 1,753,274 Pledges receivable 265, ,000 Prepaid expenses 100, ,815 Total current assets 2,917,744 2,529,900 Property and equipment, net 645 2,560 Total assets $ 2,918,389 $ 2,532,460 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable and accrued expenses $ 2,565,153 $ 2,179,284 Total current liabilities 2,565,153 2,179,284 Net assets: Temporarily restricted net assets 265, ,000 Unrestricted net assets 88,236 88,176 Total net assets 353, ,176 Total liabilities and net assets $ 2,918,389 $ 2,532,460 The accompanying notes are an integral part of these financial statements. 3

21 Early Learning Coalition of Brevard County, Inc. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Year Ended June 30, 2015 Temporarily Unrestricted Restricted Total REVENUES AND SUPPORT Government grants: School Readiness $ 18,076,956 $ - $ 18,076,956 Voluntary Pre-Kindergarten 11,092,454-11,092,454 Other Grants 60,997-60,997 Contributions 53, , ,969 In-kind 175, ,410 Other income 5,153-5,153 Net assets released from restrictions 265,000 (265,000) - Total revenues and support 29,729,939-29,729,939 EXPENSES Program services: School Readiness 17,102,782-17,102,782 Voluntary Pre-Kindergarten 10,682,520-10,682,520 Other 672, ,998 Total program services 28,458,300-28,458,300 Support services: Management and general 1,269,393-1,269,393 Fundraising 2,186-2,186 Total expenses 29,729,879-29,729,879 Change in net assets NET ASSETS, BEGINNING OF YEAR 88, , ,176 NET ASSETS, END OF YEAR $ 88,236 $ 265,000 $ 353,236 The accompanying notes are an integral part of these financial statements. 4

22 Early Learning Coalition of Brevard County, Inc. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the Year Ended June 30, 2014 Temporarily Unrestricted Restricted Total REVENUES AND SUPPORT Government grants: School Readiness $ 15,920,589 $ - $ 15,920,589 Voluntary Pre-Kindergarten 11,095,184-11,095,184 Other grants 73,454-73,454 Contributions 53, , ,471 In-kind 163, ,257 Other income 18,146-18,146 Net assets released from restrictions 240,000 (240,000) - Total revenues and support 27,564,101 25,000 27,589,101 EXPENSES Program services: Subsidized Child Care 15,644,470-15,644,470 Voluntary Pre-Kindergarten 10,678,971-10,678,971 Other 5,935-5,935 Total program services 26,329,376-26,329,376 Support services: Management and general 1,258,496-1,258,496 Fundraising 2,557-2,557 Total expenses 27,590,429-27,590,429 Change in net assets (26,328) 25,000 (1,328) NET ASSETS, BEGINNING OF YEAR 114, , ,504 NET ASSETS, END OF YEAR $ 88,176 $ 265,000 $ 353,176 The accompanying notes are an integral part of these financial statements. 5

23 Early Learning Coalition of Brevard County, Inc. STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2015 Program Services Supporting Services School Voluntary Pre- Readiness Kindergarten Other Administrative Fundraising Total Direct services $ 14,710,918 $ 10,654,147 $ - $ - $ - $ 25,365,065 Salaries 1,333,867-28, ,123-2,212,523 Program enhancements 20, , ,619 Employee benefits 206,701-4, , ,028 Subrecipient services 253, ,485 Rent 149, , ,591 Payroll taxes and workers' compensation 110,628-2,133 69, ,048 Computer/Networking 41, ,085-67,218 Public education 31, ,366-35,933 Office supplies and expenses 22, ,828-34,216 Professional fees 7, ,010-26,475 Repairs and maintenance 16, ,264-24,430 Insurance 12, ,640-19,157 Utilities 10, ,443-19,155 Monitoring - 18, ,887 Equipment rental and expense 10, ,063-15,405 Travel 6,992-1,135 4,017-12,144 Outreach and awareness - 9, ,486 Training 1, ,188-8,112 Telephone 5, ,412-7,710 Dues and subscriptions 3, ,479-6,910 Employment expenses 3, ,334-6,846 Printing 3, ,100-5,894 Miscellaneous ,186 2,293 Educational supplies 1, ,612 In-kind expenditures 137, , ,722 Subtotal expenses before depreciation and amortization 17,101,598 10,682, ,998 1,268,662 2,186 29,727,964 Depreciation 1, ,915 Total expenses by function $ 17,102,782 $ 10,682,520 $ 672,998 $ 1,269,393 $ 2,186 $ 29,729,879 The accompanying notes are an integral part of these financial statements. 6

24 Early Learning Coalition of Brevard County, Inc. STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2014 Program Services Supporting Services School Voluntary Pre- Readiness Kindergarten Other Administrative Fundraising Total Direct services $ 12,990,624 $ 10,652,444 $ - $ - $ - $ 23,643,068 Salaries 1,547,689-4, ,592-2,334,062 Employee benefits 233, , ,196 Rent 146, , ,574 Subrecipient services 222, ,045 Payroll taxes and workers' compensation 134, , ,518 Computer/Networking 38, ,187-65,701 Office supplies and expenses 24, ,376-43,881 Repairs and maintenance 24, ,132-38,994 Program enhancements 37, ,688 Public education 33, ,962 Miscellaneous ,656 2,557 29,378 Professional fees 10, ,505-28,818 Training 4, ,263-21,429 Insurance 11, ,312-18,054 Utilities 10, ,042-17,150 Equipment rental and expense 11, ,767-16,968 Monitoring - 14, ,875 Outreach and awareness - 11, ,652 Employment expenses 3, ,498-10,043 Travel 4, ,383-9,469 Printing 5, ,118-8,342 Dues and subscriptions 3, ,892-6,592 Telephone 4, ,003-6,357 Legal fees ,664-3,664 Educational supplies 3, ,480 In-kind expenditures 133, , ,257 Subtotal expenses before depreciation and amortization 15,639,484 10,678,971 5,935 1,255,270 2,557 27,582,217 Depreciation 4, ,226-8,212 Total expenses by function $ 15,644,470 $ 10,678,971 $ 5,935 $ 1,258,496 $ 2,557 $ 27,590,429 The accompanying notes are an integral part of these financial statements. 7

25 Early Learning Coalition of Brevard County, Inc. STATEMENTS OF CASH FLOWS For the Years Ended June 30, 2015 and CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 60 $ (1,328) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 1,915 8,212 Decrease (increase) in assets: Grants receivable (234,956) (1,415,313) Pledges receivable - (25,000) Prepaid expenses 42,099 (71,763) Increase in liabilities: Accounts payable and accrued expenses 385, ,126 Net cash provided (used) by operating activities 194,987 (1,352,066) Net (decrease) increase in cash 194,987 (1,352,066) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 368,811 1,720,877 CASH AND CASH EQUIVALENTS, END OF YEAR $ 563,798 $ 368,811 The accompanying notes are an integral part of these financial statements. 8

26 Early Learning Coalition of Brevard County, Inc. NOTES TO FINANCIAL STATEMENTS June 30, 2015 and 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Organization and nature of activities Early Learning Coalition of Brevard County, Inc. ( the Coalition ), was organized on May 8, 2000 as a Florida not-for-profit 501(c)(3) corporation. The Coalition was created by Florida Legislators, with the enactment of Florida Statute Section , to coordinate private sector representatives, publicly funded early childhood education professionals, childcare industry representatives, and community and government leaders to ensure consistent quality in early childhood and childcare programs using state, federal, and local funding sources. The Coalition contracts with various local organizations to administer and provide the Coalition s early childhood education programs as summarized below: Subsidized Child Care and Preschool Program: provides subsidized child care services and preschool programs to eligible children and families, and provides administrative and direct services necessary to develop and maintain a safe, cost effective, and family-friendly system to protect at-risk children and to assist families in becoming or remaining economically self-sufficient. The following are some of the services provided through the Subsidized Child Care and Preschool Programs: developmental and growth screening, implementation of individual education plans, coordination of referral services, education on lifestyle factors, transition to kindergarten, parent education, community needs assessment, accessing community resources for health and nutrition, technical assistance to parents and providers, staff education, classroom education, and mentoring business partners. Florida First Start Program: provides early intervention services to at-risk infants and toddlers up to age four and their families. The program is organized as a home visiting family literacy program designed to give children at risk of future school failure the best possible start in life and to support parents in their role as children s first teachers. Quality Initiative: provides comprehensive school readiness education and training services for child care providers, teachers, children and their families. Program provides coaching and mentoring support and continuing education courses for child care providers. Voluntary Pre-Kindergarten (VPK): provides that each child residing in Florida who will reach 4 years of age on or before September 1 of the school year is eligible for a free pre-kindergarten program designed to enhance each child s ability in the development of language and cognitive abilities through education in basic skills. 9

27 Early Learning Coalition of Brevard County, Inc. NOTES TO FINANCIAL STATEMENTS June 30, 2015 and 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2. Basis of accounting and financial statement presentation The accompanying financial statements and accompanying schedule have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and include all funds and activities over which the Board of Directors of the Coalition has oversight and financial responsibility. The Coalition reports information regarding its financial position and activities according to three classes of net assets. A description of the three net asset categories follows: Unrestricted net assets not subject to donor-imposed stipulations. Temporarily Restricted net assets subject to donor-imposed stipulations that may or will be met by actions of the Coalition and/or passage of time. Permanently Restricted net assets subject to donor-imposed stipulations that they be maintained permanently by the Coalition. Revenues from financial assistance programs are reported as increases in unrestricted net assets because the related restrictions are satisfied in the period in which the support is recognized. 3. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 4. Cash and cash equivalents For purposes of the statements of cash flows, the Coalition considers all highly liquid investments with an initial maturity of three months or less to be cash equivalents. 5. Grants receivable Grants receivable are due from federal and state governmental agencies and recorded when services are provided. The Coalition s receivables as of June 30, 2015 and 2014 are due in less than one year and management believes that all receivables are fully collectible. Accordingly, no allowance for doubtful accounts is considered necessary. 10

28 Early Learning Coalition of Brevard County, Inc. NOTES TO FINANCIAL STATEMENTS June 30, 2015 and 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 6. Pledges receivable The Coalition has pledges receivable from the United Way and considers them all to be fully collectible. Accordingly, no allowance for doubtful accounts is required. The entire amount is receivable within the next fiscal year and funds are temporarily restricted as of June 30, Prepaid expenses Consists of insurance, payroll, and Voluntary Pre-Kindergarten expenses paid in advance. 8. Property and equipment Property and equipment is recorded at cost. Office equipment and furniture purchases over $1,000 are capitalized. Depreciation is provided over the useful lives of the related assets, generally three to five years, on a straight-line basis. Routine repairs and maintenance are expensed as incurred. Property acquired with governmental funds is considered to be owned by the Coalition while used in the program for which it was purchased or in future authorized programs; however, its disposition as well as the ownership of any proceeds from the sale of assets therefrom is subject to applicable regulations. 9. Intangible assets The Coalition capitalizes the cost of software, which is amortized on a straight-line basis over an estimated useful life of three years. 10. Revenue recognition The Coalition receives funding through grants and contract revenue from federal and state agencies. Revenues are earned as allowable grant costs are incurred and as units of service are delivered on contracts. Revenue is recorded as unrestricted or temporarily restricted depending upon the existence and/or nature of any restrictions. When a restriction expires (that is, when a stipulated time restriction ends or a purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restriction. For the year ended June 30, 2015, revenues in the amount of $18,076,956 were earned for the SR program which exceeded the appropriations by $239,780 for the corresponding period. For financial statement presentation this amount was recorded a receivable as of June 30, However, this amount was not billed to Florida s Office of Early Learning until the SR appropriation period. 11

29 Early Learning Coalition of Brevard County, Inc. NOTES TO FINANCIAL STATEMENTS June 30, 2015 and 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 10. Revenue recognition (continued) For the year ended June 30, 2014, revenues in the amount of $15,920,589 were earned for the SR program which exceeded the appropriations by $50,243 for the corresponding period. For financial statement presentation this amount was recorded as a receivable as of June 30, However, this amount was not billed to Florida s Office of Early Learning until the SR appropriation period. For the year ended June 30, 2015, revenues in the amount of $11,092,454 were earned for the VPK program which was exceeded by the appropriations in the amount of $11,078 for the corresponding period. For financial statement presentation this amount was recorded as account payable as of June 30, Functional allocation of expenses The cost of providing the various programs and supporting services have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among programs and supporting services benefited as shown in the statement of functional expenses. 12. Contributions and donor-imposed restrictions Contributions to the Coalition represent unconditional promises to give and are recognized in the period that the promises to give are made. Conditional promises to give are not recognized until they become unconditional, that is when the conditions on which they depend are substantially met. All contributions to the Coalition are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or are restricted by the donor for specific purposes are reported as temporarily restricted contributions. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and are reported in the statement of activities as net assets released from restriction. If a donor restriction is received and released in the same reporting period, the amount is recorded as unrestricted support. 12

30 Early Learning Coalition of Brevard County, Inc. NOTES TO FINANCIAL STATEMENTS June 30, 2015 and 2014 NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 13. Donated services, materials and facilities Donated services, materials and facilities, where they require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donations, are recorded at fair market values at the date of receipt by the Coalition. A corresponding amount is recorded as expense or property and equipment. Donated services, materials and facilities aggregating $175,410 and $163,257 for the years ended June 30, 2015 and 2014, respectively are included as revenues and expenses in the accompanying statement of activities and changes in net assets. 14. Income taxes The Coalition is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code; therefore, no income tax provision is required in the accompanying financial statements. Contributions to the Coalition are generally qualified as deductible charitable contributions for tax purposes. Management has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported, and that no accruals for tax liabilities are necessary. Therefore, no reserves for uncertain income tax positions have been recorded. The Coalition remains subject to examination by the Internal Revenue Service for the years ended June 30, 2013 through June 30, Subsequent events Management has evaluated the effect subsequent events would have on the accompanying financial statements through the date these financial statements were available to be issued on January 19, NOTE B CONCENTRATIONS OF RISK 1. Cash risk The Coalition maintains its cash in deposit accounts in banks covered by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures the first $250,000 of balance per depositor per institution. At June 30, 2015 and 2014, the Coalition had $345,108 and $123,973, respectively, in excess of federally insured limits. The Coalition has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash and cash equivalents. 13