WAYSIDE HOUSE, INC. FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION June 30, 2014
WAYSIDE HOUSE, INC. FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION June 30, 2014 TABLE OF CONTENTS PAGES FINANCIAL STATEMENTS Independent Auditor s Report 1 2 Statement of Financial Position 3 Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7 11 SUPPLEMENTAL INFORMATION Schedule of Program/Cost Center Revenue and Expenses 12 14 Schedule of State Earnings 15 Schedule of Related Party Transaction Adjustments 16 INTERNAL CONTROLS AND COMPLIANCE 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 17 18
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR S REPORT To the Board of Directors Wayside House, Inc. Delray Beach, Florida Report on the Financial Statements We have audited the accompanying financial statements of Wayside House, Inc. (the Organization ) (a not for profit organization), which comprise the statement of financial position as of June 30, 2014, and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of Wayside House, Inc. as of June 30, 2014, 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. KMCcpa.com 6550 N Federal Hwy, 4th Floor Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353 1
Wayside House, Inc. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of program cost center revenues and expenses, schedule of state earnings, and schedule of related party transaction adjustments are presented for purposes 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 has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 27, 2014, on our consideration of the Organization s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization s internal control over financial reporting and compliance. KEEFE McCULLOUGH Fort Lauderdale, Florida October 27, 2014 2
WAYSIDE HOUSE, INC. STATEMENT OF FINANCIAL POSITION June 30, 2014 A S S E T S ASSETS: Cash and cash equivalents $ 354,100 Accounts receivable 41,818 Grants and contracts receivable 58,243 Property and equipment, less accumulated depreciation of $ 1,147,791 1,715,544 Total assets $ 2,169,705 L I A B I L I T I E S A N D N E T A S S E T S LIABILITIES: Accounts payable and other accrued expenses $ 22,887 Accured payroll and related liabilities 58,923 Total liabilities 81,810 NET ASSETS: Unrestricted 2,050,415 Temporarily restricted 37,480 Total net assets 2,087,895 Total liabilities and net assets $ 2,169,705 The accompanying notes to financial statements are an integral part of these statements. 3
WAYSIDE HOUSE, INC. STATEMENT OF ACTIVITIES For the Year Ended June 30, 2014 Temporarily Unrestricted Restricted Total CHANGE IN NET ASSETS: Revenue and other support: Contributions $ 799,987 $ 45,300 $ 845,287 Client services 653,991 653,991 Grants and contracts 426,825 426,825 Transfer from endowment 295,751 295,751 Food stamps 13,629 13,629 Other income 1,119 1,119 Total revenue and other support 2,191,302 45,300 2,236,602 Net assets released from restrictions 147,329 (147,329) Total revenue, other support and net assets released from restrictions 2,338,631 (102,029) 2,236,602 Expenses: Program services: Residential 1,169,981 1,169,981 Outpatient services 416,439 416,439 Supporting services: Administration 316,152 316,152 Fundraising 164,487 164,487 Total expenses 2,067,059 2,067,059 Change in net assets 271,572 (102,029) 169,543 NET ASSETS, July 1, 2013 1,778,843 139,509 1,918,352 NET ASSETS, June 30, 2014 $ 2,050,415 $ 37,480 $ 2,087,895 The accompanying notes to financial statements are an integral part of these statements. 4
WAYSIDE HOUSE, INC. STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2014 Program Services Supporting Services Total Outpatient Program Residential Services Services Administration Fundraising Total PERSONNEL COSTS: Salaries $ 470,473 $ 227,263 $ 697,736 $ 229,256 $ 69,774 $ 996,766 Fringe benefits 112,973 54,573 167,546 55,051 16,753 239,350 Total personnel costs 583,446 281,836 865,282 284,307 86,527 1,236,116 OTHER EXPENSES: Building occupancy 134,095 44,089 178,184 1,837 3,674 183,695 Food services 134,030 134,030 5,930 139,960 Professional services 86,984 18,810 105,794 9,146 114,940 Fundraising events 63,520 63,520 Operating supplies and expenses 37,672 12,026 49,698 4,877 5,794 60,369 Client activities 32,250 6,048 38,298 2,016 40,314 Other expenses 29,029 6,969 35,998 1,683 1,679 39,360 Equipment 17,853 6,876 24,729 4,241 1,186 30,156 Marketing and advertising 16,173 10,780 26,953 26,953 Insurance 17,507 6,794 24,301 1,307 523 26,131 Medical and pharmacy 16,337 2,846 19,183 19,183 Travel 6,795 359 7,154 16 7,170 Total other expenses 528,725 115,597 644,322 31,053 76,376 751,751 Total expenses before provision for depreciation 1,112,171 397,433 1,509,604 315,360 162,903 1,987,867 Provision for depreciation 57,810 19,006 76,816 792 1,584 79,192 Total expenses $ 1,169,981 $ 416,439 $ 1,586,420 $ 316,152 $ 164,487 $ 2,067,059 The accompanying notes to financial statements are an integral part of these statements. 5
WAYSIDE HOUSE, INC. STATEMENT OF CASH FLOWS For the Year Ended June 30, 2014 CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 169,543 Adjustments to reconcile change in net assets to cash provided by operating activities: Provision for depreciation 79,192 Changes in assets and liabilities: Increase in accounts receivable (41,818) Decrease in grants and contracts receivable 11,746 Decrease in accounts payable and other accrued expenses (57,181) Increase in accrued payroll and related liabilities 12,491 Net cash provided by operating activities 173,973 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (112,667) Net cash used in investing activities (112,667) Net increase in cash and cash equivalents 61,306 CASH AND CASH EQUIVALENTS, July 1, 2013 292,794 CASH AND CASH EQUIVALENTS, June 30, 2014 $ 354,100 The accompanying notes to financial statements are an integral part of these statements. 6
WAYSIDE HOUSE, INC. NOTES TO FINANCIAL STATEMENTS June 30, 2014 NOTE 1 ORGANIZATION AND OPERATIONS Wayside House, Inc. (the Organization ) is a not for profit corporation that provides treatment and rehabilitation for women who suffer from substance additions, and returns them and their families to society as productive members of the community of Palm Beach County, Florida. Founded in 1974, by Dr. Susan B. Anthony, the Organization has evolved into a twentyeight bed professional, residential and outpatient treatment facility. The foundation of treatment is treating the individual within the context of her family. The Organization is supported primarily through donor contributions, grants and fundraising events. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation: Financial statement presentation follows the recommendation of the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) No. 958, Not for Profit Entities. Under ASC No. 958, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. A description of the three net asset classes is as follows: Unrestricted Net assets available for support of operations that are not restricted by donors or for which restrictions have expired. Temporarily restricted Net assets subject to donor imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a restriction is satisfied or expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently restricted Net assets subject to donor imposed stipulations that the Organization is required to maintain in perpetuity. The Organization has no permanently restricted net assets as of June 30, 2014. Restricted and unrestricted revenue and support: Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Noncash contributions are recorded at their fair value on the date received. 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 donorrestricted support is reported as an increase in temporarily 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 statement of activities as net assets released from restrictions. Cash and cash equivalents: The Organization considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Organization routinely maintains cash balances at a financial institution which exceeds Federally insured amounts. 7
WAYSIDE HOUSE, INC. NOTES TO FINANCIAL STATEMENTS June 30, 2014 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Promises to give: Unconditional promises to give are recognized as revenues or gains in the period received and as assets, decreases in liabilities, or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. At June 30, 2014, the Organization had no conditional or unconditional promises to give. Allowance for doubtful accounts: Management periodically reviews accounts receivables and grants and contract receivables and provides an allowance for amounts which may be uncollectible. At June 30, 2014, management considers these receivables to be fully collectible and no allowance for doubtful accounts was considered necessary. Property and equipment: Property and equipment are carried at cost if purchased or, if donated, at fair value on the date of donation, less accumulated depreciation. The Organization follows the policy of providing for depreciation using the straight line method over the estimated useful life of each type of asset which is as follows: Buildings and improvements Furniture and equipment Automobiles 7 39 years 5 7 years 5 years Donations of property and equipment are reported as unrestricted support unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Without donor stipulations regarding how long these donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated assets are placed in service, reclassifying temporarily restricted net assets to unrestricted net assets at that time. The Organization received no donated property and equipment for the year ended June 30, 2014. Maintenance and repairs to property and equipment are charged to expense when incurred. Additions and major renewals are capitalized. Grant and contract revenue: Grant and contract revenue is recognized when the allowable costs as defined by the individual grant or contract are incurred and/or the unit of service has been provided. Grant and contracts receivable at year end represent allowable expenditures and/or units of service provided which have not yet been reimbursed by the granting agency. Donated goods and services: The Organization generally pays for most services requiring specific expertise. A number of volunteers have donated their time in certain of the Organization's program service, administration area and fundraising activities. When the value of donated services requires specific expertise, they are reflected in the financial statements as revenue and expenses. During the year ended June 30, 2014, no such amounts have been recorded in the accompanying financial statements. 8
WAYSIDE HOUSE, INC. NOTES TO FINANCIAL STATEMENTS June 30, 2014 NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Functional expenses: The costs of providing programs and other activities have been summarized on a functional basis in the accompanying statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities 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. Date of management review: Subsequent events were evaluated by management through October 27, 2014, which is the date the financial statements were available for issuance. NOTE 3 PROPERTY AND EQUIPMENT Property and equipment consists of the following at June 30, 2014: Buildings and improvements $ 2,139,128 Furniture and equipment 342,001 Automobiles 58,506 2,539,635 Less accumulated depreciation 1,147,791 1,391,844 Land 323,700 $ 1,715,544 NOTE 4 TEMPORARILY RESTRICTED NET ASSETS At June 30, 2014, temporarily restricted net assets consisting of cash and cash equivalents are available for the following purposes. Playground and fitness equipment $ 15,000 Parenting program 7,480 Scholarships 15,000 $ 37,480 9
WAYSIDE HOUSE, INC. NOTES TO FINANCIAL STATEMENTS June 30, 2014 NOTE 5 GOVERNMENTAL CONTRACTS FOR CLIENT SERVICES Funding agreements for services to be provided are principally entered into from one to three year installments. The release of funds is subject to monies being made available by the Federal government, the State of Florida, local municipalities and other grantor agencies. Certain of the agreements may be terminated by either party upon thirty days written notice. However, such an event would be unlikely if contract performance continues to be satisfactory and grantors annual budgets are authorized by each respective governing body. For the year ending June 30, 2014 the Organization received the following funding from governmental contracts: Southeast Florida Behavioral Health Network PDA01 Palm Beach County Department $ 318,387 of Community Services R2013 0027 Palm Beach County Department 9,593 of Community Services R2013 1557 98,845 $ 426,825 Certain funding arrangements require the Organization to provide additional services on a specified matching basis. Matching requirements for the year ended June 30, 2014 have been fulfilled. Program expenditures made by the Organization are subject to additional audit by grantor agencies. As a result of such audits, the grantor may require that amounts be returned. In certain instances, the grantor may increase its grant of funds to the Organization to offset amounts which would otherwise be repayable based on audits. In accordance with OMB Circular A 133, Audits of States, Local Governments and Non Profit Organizations and the Florida Single Audit Act, the Organization is required to perform single audits when the required threshold of $ 500,000 in grant expenditures from either source is exceeded. The Organization did not meet any of these thresholds for the year ended June 30, 2014 and thus no single audit was required. NOTE 6 INCOME TAXES The Organization is a not for profit organization, exempt from tax under Internal Revenue Code 501(c)(3), therefore, no tax provision has been made in the accompanying financial statements. NOTE 7 RETIREMENT PLANS The Organization maintains a defined contribution pension plan All employees twenty one years of age or older, with one year of service, are eligible to participate in the plan. Employer contributions are at the rate of 10% of each participant s compensation, as defined by the plan and no employee contributions are required or permitted. Employees are fully and immediately vested in their pension accounts upon completion of five years of service or age 55 years, whichever comes first. At June 30, 2014, there were seven employees participating in the plan. Employer contributed pension expense was $ 23,216 for the year ended June 30, 2014. 10
WAYSIDE HOUSE, INC. NOTES TO FINANCIAL STATEMENTS June 30, 2014 NOTE 7 RETIREMENT PLANS (continued) In addition the Organization maintains a tax deferred annuity plan under Internal Revenue Code Section 403(b). Contributions are based upon the amount of compensation each participant elects to defer yearly, subject to the maximum permitted by law. Employees are fully and immediately vested for all amounts contributed to this plan. The Organization does not match any contributions for this plan. NOTE 8 ENDOWMENT Two benefactors of the Organization previously established an endowment. The purpose of the endowment is to insure the perpetuity of the Organization and to enable the Organization to continue to offer its services to women unable to pay for treatment and rehabilitation. The principal of the endowment cannot be expended without written consent of the full Board of Directors when, in their judgment, use is necessary for the continuation of the Organization's operations. The income of the fund can be used to supplement employee benefits of the Organization, such as pension costs. Because the funds are not controlled by the Organization, they are not consolidated into these financial statements. The Organization took distributions of $ 295,751 from the Endowment for the year ended June 30, 2014. The ending asset value of the endowment funds at June 30, 2014 was $ 3,556,000. NOTE 9 CONCENTRATIONS IN OPERATIONS Approximately 19% of the Organization s total revenue and other support is from the Federal Government, State of Florida and other state and county/local agencies. If a significant reduction in the level of funding were to occur, there could be an adverse effect on the Organization s programs and activities. 11
SUPPLEMENTAL INFORMATION
WAYSIDE HOUSE, INC. SCHEDULE OF PROGRAM/COST CENTER ACTUAL EXPENSES AND REVENUES For the Year Ended June 30, 2014 Funding Sources and Revenues Residential Outpatient Total State Designated Non Medical Total for Group Medical Total for SAMH Cost SAMH Cost Total Residential Services Residential Outpatient Outpatient Services Aftercare Outpatient Centers Centers Funding STATE SAMH FUNDING: Substance abuse services $ 286,394 $ 12,413 $ 298,807 $ 11,673 $ $ $ 7,907 $ 19,580 $ 318,387 $ $ 318,387 Total State SAMH funding 286,394 12,413 298,807 11,673 7,907 19,580 318,387 318,387 OTHER GOVERNMENT FUNDING: Local government grants 108,438 108,438 108,438 108,438 Total other government funding 108,438 108,438 108,438 108,438 ALL OTHER REVENUES: 1st and 2nd party payments 449,535 449,535 14,604 180,099 5,328 4,425 204,456 653,991 653,991 Contributions and donations 1,141,038 1,141,038 Other income 13,629 13,629 13,629 1,119 14,748 Total all other revenue 463,164 463,164 14,604 180,099 5,328 4,425 204,456 667,620 1,142,157 1,809,777 ` Total funding $ 857,996 $ 12,413 $ 870,409 $ 26,277 $ 180,099 $ 5,328 $ 12,332 $ 224,036 $ 1,094,445 $ 1,142,157 $ 2,236,602 12
WAYSIDE HOUSE, INC. SCHEDULE OF PROGRAM/COST CENTER ACTUAL EXPENSES AND REVENUES (continued) For the Year Ended June 30, 2014 Residential Outpatient Medical Total Group Medical Residential Services Residential Outpatient Outpatient Services PERSONNEL EXPENSES: Salaries and wages $ 398,706 $ 71,767 $ 470,473 $ 89,709 $ 69,774 $ 17,942 Fringe benefits 95,739 17,234 112,973 21,541 16,755 4,310 Total personnel expenses 494,445 89,001 583,446 111,250 86,529 22,252 OTHER EXPENSES: Building occupancy 168,245 23,660 191,905 13,146 23,660 2,629 Client activities 30,234 2,016 32,250 2,016 1,008 1,008 Marketing and advertising 13,478 2,695 16,173 2,695 2,695 2,695 Fundraising events Travel 5,362 1,433 6,795 359 Equipment 15,681 2,172 17,853 2,714 2,111 543 Operating supplies and expenses 34,672 3,000 37,672 3,526 4,975 749 Food services 134,030 134,030 Other expenses 28,172 857 29,029 1,701 2,321 205 Insurance 16,461 1,046 17,507 2,613 2,613 261 Medical and pharmacy 9,195 7,142 16,337 311 374 1,787 Professional services 59,757 27,227 86,984 5,144 4,001 6,807 Total other expenses 515,287 71,248 586,535 33,866 43,758 17,043 Total personnel and other expenses 1,009,732 160,249 1,169,981 145,116 130,287 39,295 DISTRIBUTED INDIRECT COSTS: Administration 182,322 28,935 211,257 26,203 23,525 7,095 Total actual operating expenses 1,192,054 189,184 1,381,238 171,319 153,812 46,390 UNALLOWABLE COSTS: Total allowable operating expenses $ 1,192,054 $ 189,184 $ 1,381,238 $ 171,319 $ 153,812 $ 46,390 CAPITAL EXPENDITURES $ 112,667 $ $ 112,667 $ $ $ 13
WAYSIDE HOUSE, INC. SCHEDULE OF PROGRAM/COST CENTER ACTUAL EXPENSES AND REVENUES (continued) For the Year Ended June 30, 2014 Outpatient Total State Designated Total SAMH Cost Total Aftercare Outpatient Centers Administration Fundraising Expenses PERSONNEL EXPENSES: Salaries and wages $ 49,838 $ 227,263 $ 697,736 $ 229,256 $ 69,774 $ 996,766 Fringe benefits 11,967 54,573 167,546 55,051 16,753 239,350 Total personnel expenses 61,805 281,836 865,282 284,307 86,527 1,236,116 OTHER EXPENSES: Building occupancy 23,660 63,095 255,000 2,629 5,258 262,887 Client activities 2,016 6,048 38,298 2,016 40,314 Marketing and advertising 2,695 10,780 26,953 26,953 Fundraising events 63,520 63,520 Travel 359 7,154 16 7,170 Equipment 1,508 6,876 24,729 4,241 1,186 30,156 Operating supplies and expenses 2,776 12,026 49,698 4,877 5,794 60,369 Food services 134,030 5,930 139,960 Other expenses 2,742 6,969 35,998 1,683 1,679 39,360 Insurance 1,307 6,794 24,301 1,307 523 26,131 Medical and pharmacy 374 2,846 19,183 19,183 Professional services 2,858 18,810 105,794 9,146 114,940 Total other expenses 39,936 134,603 721,138 31,845 77,960 830,943 Total personnel and other expenses 101,741 416,439 1,586,420 316,152 164,487 2,067,059 DISTRIBUTED INDIRECT COSTS: Administration 18,371 75,194 286,451 (316,152) 29,701 Total actual operating expenses 120,112 491,633 1,872,871 194,188 2,067,059 UNALLOWABLE COSTS: Total allowable operating expenses $ 120,112 $ 491,633 $ 1,872,871 $ $ 194,188 $ 2,067,059 CAPITAL EXPENDITURES $ $ $ 112,667 $ $ $ 112,667 14
WAYSIDE HOUSE, INC. SCHEDULE OF STATE EARNINGS For the Year Ended June 30, 2014 Total expenditures $ 2,067,059 Less: Other state and Federal funds Less: Nonmatch funds (228,266) Less: Unallowable costs per 65E 14, FAC Total allowable expenditures 1,838,793 Maximum available earnings 1,379,095 Amount of state funds requiring match 90,121 Amount due to department * $ 1,288,974 * A negative amount indicates an amount due to the State up to the amount received during the year. 15
WAYSIDE HOUSE, INC. SCHEDULE OF RELATED PARTY TRANSACTION ADJUSTMENTS For the Year Ended June 30, 2014 Allocation of Related Party Transactions Adjustment Related Party Residential State Designated Cost Centers Outpatient Total Total Revenue From Grantee $ $ $ $ Total Associated Expenses Related Party Transaction Adjustment $ $ $ $ There are no related party transaction adjustments for the year ended June 30, 2014. 16
INTERNAL CONTROLS AND COMPLIANCE
INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Wayside House, Inc. Delray Beach, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Wayside House, Inc. (the Organization ) (a not for profit organization), which comprise the statement of financial position as of June 30, 2014, and the related statements of activities, functional expenses and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated October 27, 2014. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Organization s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. KMCcpa.com 6550 N Federal Hwy, 4th Floor Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353 17
Wayside House, Inc. Compliance and Other Matters As part of obtaining reasonable assurance about whether Wayside House, Inc.'s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. KEEFE McCULLOUGH Fort Lauderdale, Florida October 27, 2014 18