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HomeMy WebLinkAbout2009-052 Authorizing Services Agreement with United Services Community Action AgencyBILL N0.2009-52 ORDINANCE N0.2009-52 AN ORDINANCE AUTHORIZING THE CITY OF RIVERSH)E TO ENTER INTO A SERVICES AGREEMENT WITH AND PAY CERTAIN FUNDS TO UNITED SERVICES COMMUNITY ACTION AGENCY WHEREAS, The United Services Community Action Agency ("USCAA"), a nonprofit organization commissioned to target poverty in the City of Riverside (the "City"). WHEREAS, United Services Community Action Agency desires to provide such Services and requires funding to continue to provide the Services within the City including the services set forth in the program description attached hereto. WHEREAS, the Ciry finds that the provision of the Services is a public purpose and the City has the capability and desire to assist United Services Community Action Agency to provide Services to the public within the City. WHEREAS, the City's Board of Aldermen believes that the City's best interests are promoted and aided by entering into an agreement with the United Services Community Action Agency for the provision of the Services. WHEREAS, The Ciry and the United Services Community Action Agency have negotiated and agreed upon an agreement for the Service and payment for the same of Fifteen Thousand Dollars and No Cents ($15,000.00). NOW, THEREFORE, BE IT ORDAINED, by the Board of Aldermen of Riverside, Missouri, as follows: Section 1. The Ciry finds that the provision of the Services conh•ibutes to the welfare of the City as well as the economic and social potential of the City and its residents, that the Services are important to the welfare of the City and that the provision of funds to assist in providing such Services are for a public purpose. Section 2. The City of Riverside shall enter into an agreement to be substantially in the form attached hereto as Exhibit A, with the USCAA, Section 3. The Mayor is authorized and directed to execute the Services Agreement City Administration and City Staff, execution of such document being conclusive proof of such approval. The Mayor is authorized and directed to perform all acts and execute any other documents necessary or desirable to effectuate the intent of this Ordinance. Section 4. This Ordinance shall take effect inunediately. ADOPTED AND PASSED THIS 5th DAY OF May, 2009. /s/ Kathleen L. Rose Mayor Kathleen L. Rose ATTEST: /s/ Louise Rusick City Clerk RECEIVED May 20, 2009 SERVICES AGREEMENT THIS SERVICES AGREEMENT entered into on this 5th day of May, 2009, by and between the CITY OF RIVERSIDE, MISSOURI ("City"), and UN ED SERVICES COMMUNITY ACTION AGENCY ("Service Provider"). WHEREAS, Service Provider is a Missouri non-profit corporation performing services for citizens in Riverside, Missouri (the "City"), including the provisions of rent, nutritional assistance, medical assistance, school supplies, and senior citizen services as set forth in the program description attached hereto (the "Services"), for residents of the County, including City residents. WHEREAS, the City desires that such Services be available to its residents, desires Service Provider to provide the necessary Services, and required funding to assist Service Provider in providing for the Services for the City's residents. WHEREAS, the City has found that the provisions of the Services contributes to the welfare of the City as well as the economic and social potential of the City and its residents, that the Services are important to the welfare of the City and that the provision of funds to assist in providing such Services are for a public purpose. IN CONSIDERATION of the mutual covenants and agreements set forth herein, the parties agree to the following: 1. That Service Provider shall provide the Services for the City pursuant to the terms of this Service Agreement for a term of one year commencing on the date of this Agreement. 2. That the City shall pay to Service Provider the Sum of $15,000. That the Service provided by Service Provider shall include, but not be limited to, the provisions of, rent, nutritional assistance, medical assistance, school supplies and senior citizen services. 4. Service Provider will provide the City with a copy of Service Provider's annual budget with a brief summary of the accounting controls used. Further, expenditure reports are required on a monthly or quarterly basis and a final expenditure report is required within 90 days after the monies are spent. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. CITY OF RIVERSIDE, MISSOURI (the "City") /s/ Kathleen L. Rose Mayor Kathleen L. Rose UNITED SERVICES /s/ Tommie Barnett EXECUTIVE DIRECTOR ATTEST: /s/ Louise Rusick Louise Rusick, City Clerk UNITED SERVICES COMMUNITY ACTION AGENCY, INC. KANSAS CITY, MISSOURI AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2008 WITH AUDITORS' REPORTS ON SUPPLEMENTAL INFORMATION, COMPLIANCE AND INTERNAL CONTROLS INDEPENDENT AUDITOR'S REPORT TABLE OF CONTENTS Page AUDITED FINANCIAL STATEMENTS Statements of Financial Position 2 Statements of Activities 3 Statements of Functional Expenses 4 Statements of Cash Flows 5 NOTES TO THE FINANCIAL STATEMENTS 6 SUPPLEMENTAL INFORMATION Schedule Combined Statement of Activities and Changes in Net Assets A Federal Funded Programs 10 B State Funded Programs 11 C Private Funded Programs 12 Independent Auditor's Report on Program Performance Community Services Block Grant 13 D - Schedule of Grant Revenue, Expenditures, and Changes in Net Assets -Community Services Block Grant 14 Independent Auditor's Report on Program Performance Homeless Challenge Program 15 E Schedule of Grant Activity - Homeless Challenge Program 16 F Schedule of Units of Service Provided 17 G Schedule of Expenditures of Federal Awards 18 H Schedule of Findings and Questioned Costs 19 Summary Schedule of Prior Audit Findings 20 REPORTS ON INTERNAL CONTROL AND COMPLIANCE MATTERS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS 21 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCEIN ACCORDANCE WITH OMB CIRCULAR A-133... 23 Ralph C. Johnson & Company, p.c. CERTIFIED PUBLIC ACCOUNTANTS Mark Twain Tower 106 W. 11th Street, Suite 1530 Kansas C(ry, MissouB 64105-1817 (616) 472-8900 FAX (61 ej 472.4633 INDEPENDENT AUDITOR'S REPORT Board of Directors UNITED SERVICES COMMUNITY ACTION AGENCY Kansas City, Missouri We have audited the accompanying statements of financial position of UNITED SERVICES COMMUNITY ACTION AGENCY (USCAA) (a nonprofit organization) a's of September 30, 2008, and the related statements of activities and cash flows for the.year then ended. These financial statements are the responsibility of USCAA management. Our responsibility is to express an opinion on these statements based on our audit. The prior year summarized comparative information has been derived from USCAA's September 30, 2007 financial statements and, in our report dated January 2, 2008, we expressed an unqualified opinion on those financial statements. 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 GovernmentAuditing 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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate inthe circumstances, but notforthe purpose of expressing an opinion onthe effectiveness of USCAA's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence which supports the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the assets, liabilities, and changes in net assets. We believe that our audits provide 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 USCAA as of September 30, 2008, and the changes in its net assets and its cash tlows for the years then ended inconformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2008, on our consideration of USCAA'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 infernal 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. Our audit was performed for the purpose of forming an opinion on the basic financial statements of USCAA taken as a whole. The accompanying schedule of expenditures of federal awards, and schedules A through I are presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizafions, and otherfunding sources ofUSCAA,andarenotarequiredpartofthebasicfinancialstatements. Such information 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. Kansas City Missouri 29 DECEMBER 2008 OUR 38 YEAR Ralph C. Johnson & Company, P.C. United Services Community Action Agency Statement of Financial Position Year Ended September 30, 2008 Assets | 2008 | 2007 Current Assets: Cash and Cash Equivalents $3,345,545 $3,353,934 Investments 96,672 92,464 Grant Awards Receivable 208,323 120,969 Prepaid Insurance 27,642 23,714 Receivable - Ofher - 803 Total Current Assets 3,678,182 3,591,884 Property and Equipment Buildings and Improvements 430,390 280,094 Land 95,000 95,000 Office Furniture 40,180 30,480 Office Equipment 140,957 133,010 Maintenance Equipment 5,110 5,110 Computer Hardware and Software 207,647 207,647 919,284 751,341 Less: Accumulation Depreciation (494,416) (441,089) Total Property and Equipment 424,868 310,252 Total Assets 4,103,050 3,902,136 Liabilities and Net Assets Current Liabilities Accounts Payable 83,873 55,280 Accrued Payroll 115,022 112, 872 Accrued Payroll Taxes Payable 8,513 8,334 Fringe Benefits Payable 27,375 28,640 Deferred Grant Awards 638,632 699,867 Total Current Liabilities/Total Liabilities 873,415 904,993 Net Assets: Unrestricted Net Assets: Operating 3,229,635 2,997,143 Total Net Assets 3,229,635 2,997,143 Total Liabilities and Net Assets $4,103,050 $3,902,136 See auditors' report and notes to the financial statements. United Services Community Action Agency Statement of Activities For the Year Ended September 30, 2008 With Comparative Totals for the Year Ended September 30, 2007 2008 - 2007 Temporarily Pemnngntly Unrestricted Restricted Restricted Total Total SUPPORT AND REVENUES - . Federal Revenue Community Services Block Grant (CSBG) - $ 1,909,741 $ - $ 1,909,741 $ 1,827,802 Energy Crisis Intervention Program (ECIP) 5,051,910 - 6,051,910 4,478,339 Supportive Housing Grant 147,402 147,402 108,532 Federal Emergency Management Agency 37,017 37,017 51,153 Total Federal Revenue 7,146,070 - 7,146,070 6,465,826 State Revenue Homeless Challenge 110,326 110,325 47,883 Missouri Association for Community Action 46,671 - 46,671 44,914 Total State Revenue 156,996 - . - - 156.998 92,798 Private Sector Revenue Sales Twice -As -Nice 23,346 - 23,346 24,018 Cash Contributions 81,747 - 81,747 95,628 City of Excelsior Spring 1,450 - - 1,450 ' 940 United Way of Greater Kansas City - 96,745 96,745 - 175,137 Mid America Assistance Coalition 2,367 - - 2,367 7,549 Salvation Army 2,606 - 2,606 1,656 Interest Income 96,972 - 96,972 143,749 Miscellaneous Income - (2,327) - - (2,327) 3,499 Total Private Sector Revenue 302,906 302,906 452,177 )n-Kind Contributions - 264,240 264,240 257,949 TOTAL SUPPORT AND REVENUES 7,870,212 - 7,870,212 7,268,749 EXPENSES Direct Client Support: Energy Crisis intervention Program (ECIP) 4,139,897. - 4,139,897 3,602,626 Supportive Housing ' . 115,571 - 115,571 76,778 Federal Emergency Management Agency 35,802 - 35,802 51,123 MACA - Housing Trust Fund 46,734 - - 46,734 44,914 United Way of Greater Kansas City 31,403 - 31,403 41,544 Mid America Assistance Coalition 2,367 - 2,367 7,549 Project Warmth 924 - 924 800 City of RNerside 7,684 - - 7,684 - City of Excelsior Spring 1,450 - - 1,450 940 Missouri American Water 1,787 - - 1,787 856 Cash Contributions 83,001 - - 83,001 76,753 Work Experience 217,958 - - 217,958 116,986 Pave the Way 20,323 - - 20,323 • - Poverty Simulation 7,261 7,261 - - Back to School Fair 23,852 - 23,852 - Food Vouchers - - - 6,000 Clothing 16,776 - - 16,776 - Transportation Assistance - 1,689 - 1,689 370 Food - Pantry 6,890 - - 6,890 4,085 Job Readiness 9,300 9,300 9,870 Total Direct Client Support . 4,770,669 4,770,669 4,041,095 Delegate Agency Services: Housing Information Center 18,037 - 18,037 18,037 Legal Aid of Western Missouri 25,724 - 25,724 8,440 Rose Brooks Center 6,923 - 5,923 5,923 News House Center 5,709 - - 5,709 5,709 Total Delegate Agency Services 66,393 - - 55,393 38,109 Administration 2,547,418 - - 2,547,418 In -Kind Expenditures 264,240 . - - 264,240 TOTAL EXPENSES 7,637,720 - 7,637,720 2,540,801 257,949 6,877,964 CHANGES IN NET ASSETS 232,492 232,492 390,795 NET ASSETS AS OF BEGINNING OF YEAR 2,997,143 2,997,143 2,606,348 NET ASSETS AS OF END OF YEAR $ 3,229,635 $ $ - $ 3,229,635 $ . 2,997,143 See auditors' report and notes to the financial statements. 3 United Services Community Action Agency Statement of Functional Expenses For the Year Ended September 30, 2008 With Comparative Totals for the Year Ended September 30, 2007 2008 PERSONNEL SERVICES Salaries and Wages Payroll Taxes and Fringe Benefits Total Personnel Services OTHER EMPLOYEE EXPENSES Employee Development & Recruitment Temporary Employment Services Professional Consulting Services Travel Total Other Employee Expenses BUILDING EXPENSES Security Services Space Rental Utilities Maintenance and Repairs Supplies - Maintenance Insurance & Bonding Depreciation Total Building Expenses. PROGRAM EXPENSES Food Pantry Clothing Other Costs Total Program Expenses OFFICE EXPENSES Legal Services. Auditing Services , Data Processing Fees Supplies Leased Equipment Publications & Printing Board Expenses Postage and Freight Telephone Membership Dues Bank Fees Miscellaneous Expenses Total Office Expenses IN -KIND EXPENDITURES • In -Kind Wages In -Kind Space In -Kind Materials In -Kind Expenditures TOTAL Program Services $ 1,223,093 369,711 Management And General Total $ 99,606 $ 1,322,699 20,040 389,751 1,592,804 119,646 4,995 265,047 6,259 38,876 315,177 6,875 7,230 1,667 5,218 20,990 1,712,450 11,870 272,277 7,926 44,094 336,167 41,253 50,249 27,011 62,002 2,892 22,506 53,824 259,737 41,253 50,249 27,011 82,002 2,892 22,506 53,824 259,737 6,890 16,776 4,802,396 4,826,062 19,000 4,776 89,793 12,089 993 19,458 63,701 ' 306 491 1,947 3,002 6,957 10,218 124 1,813 4,396 6,890 16,776 4,802,396 4,826,062 1,947 19,000 4,776 92,795 12,089 7,950 10,218 19,582 65,514 4,702 491 210,607 28,457 239,064 73,471 190,769 264,240 $ 7,468,627 $ 73,471 190,769 264,240 2007 Total $ 1,388,744 442,159 • 1,830,903 9,717 205,978 5,580 36,486 257,761 37,735 44,937 24,695 42,739 547 23,612 59,267 233,532 4,085 • 15,072 4,060,047 4,079,204 13,070 18,000 5,675 60,130 8,017 7,539 7,358 26,712 66,899 4,904 301 218,605 54,805 203,144 257,949 169,093 $ 7,637,720 $ 6,877,954 See auditors' report and notes to the financial statements.. 4 United Services Community Action Agency Statement of Cash Flows For the Year Ended September 30, 2008 With Comparative Totals for the Year Ended September 30, 2007 2008 2007 Cash Flows From Operations Activities Changes in Net Assets $ 232,492 $ 390,795 Adjustments to reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 53,327 59,267 (Increase) Decrease in Accounts Receivable (87,354) 2,546 (Increase) Decrease in Prepaid Expenses (3,928) 3,521 (Increase) Decrease in Accounts Receivable -Other. 803 (803) Increase (Decrease) in Accounts Payable 28,593 22,435 Increase (Decrease) in Accrued Liabilities 1,065 (82,240) Increase'(Decrease) In Deferred Revenue (61,235) 463,476 Net cash Provided (Used) by Operating Activities 163,762 858,997 Cash Flows from Investing Activities Investment Purchases & Redemptions (4,208) (4,024) Cash Payments for the Purchase of Property (167,943) (15,954) Net Cash Provided (Used) by Investing Activities (172,151) (19,978) Net Increase (Decrease) in Cash and Equivalents (8,389) 839,019 Cash and Equivalents, Beginning of Year 3,353,934 2,514,915 Cash and Equivalents, End of Year $ 3,345,545 $ 3,353,934 Interest Paid None None . Income Taxes Paid None None See auditors' report and notes to the financial statements. UNITED SERVICES COMMUNITY ACTION AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Activities UNITED SERVICES COMMUNITY ACTION AGENCY (USCAA) Is a Missouri Community Action Agency, whose purpose is to reduce poverty and help low-income people become self-sufficient. USCAA is a private, non-profit 501(C)(3) organization that serves low-income families and individuals in Jackson, Clay and Platte Counties, Missouri. Located in each of these counties are centers which provide services to assist economically disadvantaged persons in identifying and resolving problems and in meeting the basic needs of their families. They assist in developing a plan for these individuals to achieve the highest level of family self-sufficlency. USCAA's major funding source is the State of Missouri through Community Services Block Grants and other State grants. These grants are used to provide various programs through direct services and co -ventures with other community agencies, Basis of Accounting The financial statements are presented on the accrual basis of accounting which recognize revenues when earned and expenses when related liabilities are incurred. Grant awards are considered earned when the related costs have been incurred. Donations, interest income, and miscellaneous revenues are recognized when cash is received. Basis of Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards SFAS No. 117, Financial Statements of Not -for -Profit Organizations. Under SFAS No. 117, the Organization is required to report information regarding its financial position and activities according to three classes on net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, USCAA is required to present a statement of cash flows. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Capital Assets Acquisitions of capital assets which costs more than $1,000 are capitalized. Assets which cost lesser amounts are treated as an expense in the period acquired. However, under special circumstances, equipment which costs less than $1,000 may also be capitalized. Capital assets which are purchased are reported in the financial statements at their historical cost. Donated capital assets are reported in the financial statements at their approximate fair value as of the date of donation. Depreciation is computed primarily under the straight-line method as follows: Real Property 25 years Building Equipment 10 years Personal Property 3 to 5 years 6 UNITED SERVICES COMMUNITY ACTION AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 Revenue Recognition Grants, contracts and other contributions of cash received are recorded as unrestricted, temporarily restricted, or permanently restricted support In accordance with any donor restrictions. All donor - restricted revenues are reported as an increase In temporarily or permanently restricted net assets, according to the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or the purpose of the restriction is satisfied), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Contributed Services Contributions of donated services that create or enhance nonfinancial assets or that require specialized skills, are provided by individuals who possess those skills, and which would typically heed to be purchased if not provided by donation, are recorded at their estimated fair values in the period received. Income Taxes The USCAAqualifies as a tax-exempt organization under Section 501(3) (3) of the Internal Revenue Code, Therefore, it is exempt from both federal and State income taxes. Cash and Cash Equivalents Cash and cash equivalents include all monies in banks and highly liquid Investments which have maturity dates of less than three months. The carrying value of cash and cash equivalents approximates fair value because of the short maturities of those financial Instruments. NOTE 2: ACCOUNTS RECEIVABLE - GRANTS AND CONTRACTS As of September 30, 2008 and 2007, accounts receivable from grants and contracts was composed of: 2008 | 2007 State of Missouri Community Services Block Grant $ 75,0000 $ 17,500 Fully Employment Council -0- 55,923 City of Kansas City Missouri Supportive Housing 87,473 38,243 Housing Authority -0- 5,000 City of Riverside Homeless Challenge 53,836 4,429 Missouri Association for Community Action (MACA) (8,936) (126) City of Excelsior Springs 1,450 -0- $208,823 $120,969 7 UNITED SERVICES COMMUNITY ACTION AGENCY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2008 NOTE 3: PREPAID EXPENSES As of September 30, 2008 and 2007, prepaid expenses were composed of: 2008 | 2007 Property/Liability insurance $12,161 $11,840 Director's and Officer's liability insurance 2,630 2,545 Direct Mail service for Fiscal Year 2009 ECIP 6,444 -0- Workers Compensation insurance 6,407 9,329 $ 27,642 $ 23,714 NOTE 4: DEFERRED REVENUE As of September 30, 2008 and 2007, deferred revenue was composed of: 2008 | 2007 Energy Crisis Assistance Program (ECIP) $ 265,678 $ 299,553 Federal Emergency Management Agency (FEMA) 2,683 13,518 Heart of America United Way 75,027 80,573 Salvation Army 505 760 Missouri -American Water Company 4,357 2,144 Missouri Housing Development Commission 290,249 302,982 Mid America Assistance Coalition 133 357 $ 638,632 $ 699,867 NOTE 5: EMPLOYEES RETIREMENT ACCUMULATION PLAN The Agency offers its employees a retirement income accumulation plan. Contributions to the plan are based on the Board of Directors' determination of the availability of funds. Employees are eligible to participate in the Plan once they have satisfactorily completed a six-month probationary period, work a minimum of 20 hours per week and have attained the age of 20.5 years as of the Plan entry date of October 1. 8 SUPPLEMENTAL INFORMATION Schedule A United Services Community Action Agency Federal Funded Programs Combined Statement of Activities For the Year Ended September 30, 2008 Community Service Block Grant | Low Income Energy Asst Program | Supportive Housing Grant | Federal Emergency Management Agency | Combined Total Revenue Current Year Awards $1,909,741 $5,051,910 147,402 37,017 7,146,070 Cash Contributions 3,209 - - - 3,209 Interest Income 50,173 46,266 - - 96,439 Miscellaneous Income (2,328) - - - (2,328) In-Kind Contributions 118,908 - - - 118,908 Total Revenues 2,079,703 5,098,176 Expenses Personnel, Services 809,553 754,267 41,527 4,202 1,609,549 Other Employee Expenses 41,857 293,637 - - 335,494 Building Expenses 130,048 121,167 - - 251,215 Office Expenses 121,622 116,056 - - 237,678 Direct Services 289,464 4,139,897 115,941 35,802 4,581,104 In-Kind Expenditures 118,908 - - - 118,908 Total Expenses 1,511,452 5,425,024 157,468 40,004 7,133,948 Increase (Decrease) in Net Assets 568,251 (326,848) (10,066) (2,987) 228,350 Other Changes in Program Net Assets Application of Community Service Block Grant Funds (321,871) 326,848 10,066 2,987 18,030 Net Increase in Assets September 30, 2008 $ 246,380 $ - $ - $ $246,380 10 Schedule B United Services Community Action Agency State Funded Programs Combined Statement of Activites For the Year Ended September 30, 2008 Revenue Current Year Awards Total Revenues Expenses Personnel Services Other Employee Expenses Building Expenses Office Expenses Direct Services In -Kind Expenditures Total Expenses Increase (Decrease) in Net Assets Other Changes in Program Net Assets Application of Community Service Block Grant Funds Homeless Challenge Program Missouri Association for Community Action -Housing Combined Trust Fund Total $ 110,325 $ 46,671 $ 156,996 110,325.00 12,522 673 55,393 46,671 5,297 46,364 156,996 17,819 673 101,757 68,588 51,661 120,249 41,737 (41,737) (4,990) 4,990 36,747 (36,747) Net Increase in Assets September 30, 2008 $ Schedule C United Services Community Action Agency Private Funded Programs Combined Statement of Activities For the Year Ended September 30, 2008 Salvation United Way Mid -America Army Full Missouri Twice -as -Nice of Greater Assistance Project City Of Employment American Combined Titrft Store Kansas City Coalition Warmth Excelsior Counc0 Water Other Total Revenue Current Year Awards $ 23,346 $. 64,876 $ 2,367 $ 820 $ 1,450 $ 35,203 $ 1,786 $ (3,333) $ 126,515 Cash Contributions 1,780 - - - - - 76,758 78,538 _ Interest Income 69 - - - - 484533 Miscellaneous Intone - - - In-Knd Contributions 145,332 - 145,332 Total Revenues 170,527 64,876 2,367 820 1,450 35,203 1,786 73,889 350,918 Expenses Personnel Services 34,354 7,364 - - 43,364 85,082 Other Employee Expenses - - - - - - - Building Expenses 8,522 - - - - - - 8 522 Office Expenses 1,386 - - - - - - 1,386 Direct Services 718 48,179 s 2,367 924 1,450 ' 1,786 87,776 143,200 to -Kind Expenditures 145,332 - - - - - 145,332 Total Expenses 190,312 55,543 . 2,367 924 1,450 43,364 1,786 87,776 383,522 Increase,(Docrease) In Net Assets (19,785) 9,333 (104) (8,161) (13,887) (32,604) Other Changes In Program Net Assets Application of Community Service Block Grant Funds 19,785 (9,333) 104 • 8,161 - 18,717 Net Increase In Assets September 30, 2008 12 Ralph C. Johnson & Company, p.c. CERTIFIED PUBLIC ACCOUNTANTS Mark Twain Tower 106 W. 11th Street, Suite 1530 Kansas City, Missouri 64105-1817 (816) 472-8900 FAX (816) 472-4633 INDEPENDENT AUDITOR'S STATEMENT ON PROGRAM PERFORMANCE COMMUNITY SERVICES BLOCK GRANTS Board of Directors UNITED SERVICES COMMUNITY ACTION AGENCY Kansas City, Missouri We have reviewed the performance of services as reported by UNITED SERVICES COMMUNITY ACTION AGENCY, on Its "Request for Payment of Community Services Block Grant, Strategy Implementation Forms" for the period October 1, 2007 through September 30, 2008. Based on our tests of the performance records of the Agency, It is our opinion that the Agency performed the services as reported during the period. Kansas City, Missouri 29 DECEMBER 2008 OUR 38th YEAR Ralph C. Johnson & Company, P.C. 13 Schedule D United Services Community Action Agency Community Services Block Grant Schedule of Grant Revenue, Expenditures And Changes in Net Assets For the Year Ended September 30, 2008 CCRD/Family Development Revenue Community Services Block Grant $ 1,909,741 Cash Contributions 3,209 Interest Income 50,173 Miscellaneous Income (2,328) In-Kind Contributions 118,908 Total Revenues 2,079,703 Expenses Personnel Services 809,553 Other Employee Expenses 41,857 Building Expenses 130,048 Office Expenses 121,622 Direct Services 289,464 In-Kind Expenditures 118,908 Total Expenses 1,511,452 Program Revenue over Program Expenditures 568,251 Application of Community Service Block Grant Funds to Other Programs: Low Income Energy Assistance Program 326,848 Supportive Housing 10,066 Federal Emergency Management Agency 2,987 Homeless Challenge Program (41,737) Missouri Association for Community Action Housing Trust Fund 4,990 United Way of Greater Kansas City (9,333) Direct Services 28,050 Total Application of CSBG Funds to Other Programs 321,871 Increase In Program Net Assets, September 30, 2008 246,380 Program Fund Balance, September 30, 2007 2,008,241 Program Fund Balance, September 30, 2008 $ 2,254,621 14 Ralph C. Johnson & Company, p.c. CERTIFIED PUBLIC ACCOUNTANTS Mark Twain Tower 106 W. 11th Street, Suite 1530 Kansas City, Missouri 64105-1817 (816)472.8900 FAX (816) 472-4633 INDEPENDENT AUDITOR'S STATEMENT ON PROGRAM PERFORMANCE HOMELESS CHALLENGE PROGRAM Board of Directors UNITED SERVICES COMMUNITY ACTION AGENCY Kansas City, Missouri We have reviewed the performance of services as reported by UNITED SERVICES COMMUNITY ACTION AGENCY, on its °Homeless Challenge Monthly performance Reports" for the period October 1, 2007 through September 30, 2008. Based on our tests of the performance records of the Agency, it is our opinion that the Agency performed the services as reported during the period. Kansas City, Missouri 29 DECEMBER 2008 OUR 38th YEAR Ralph C. Johnson & Company, P.C. 15 Schedule E United Services Community Action Agency Homeless Challenge Grant Program Schedule of Grant Activity For the Year Ended September 30, 2008 Contracts | Amount | Units State of Missouri Funds $ 110,325 426,069 11,241 (A) Revenue State of Missouri 110,325 United Services Match: Community Services Block Grant 175,491 285,816 Delegate Agencies Match: Housing Information Center 54,111 Legal Ald of Western Missouri 51,246 Rose Brooks Center 17,769 New House Center 17,127 140,253 Total Revenues 426,069 Expenses United Services: Personnel 58,497 Client Benefits 175,491 233,988 Delegate Agencies: Housing Information Center 72,148 Legal Aid of Western Missouri 68,328 Rose Brooks Center 23,692 New House Center 27,913 192,081 Total Expenses 426,069 Program Revenue over Program Expenditures $ (A) Of the 11,241 units of service, USCAA Is required to provide 5,719 units. The remaining 5,522 units are to be provided by the above Delegate Agencies. United Services' share of the contract Is $233,988 consisting of State of Missouri funds of $58,497 and.a local match of $175,491. 16 Schedule F United Services Community Action. Agency Schedule of Units of Services Provided For the Year Ended September 30, 2008 Programs | Budgeted Amount | Participants Served | Unit Cost | Performance Amount Earned Community Coordination, Resource and Development: Youth-Led Community Service Project 60,000 4 15,000 $60,000 Poverty in Focus 18,000 4 4,500 18,000 Poverty Simulation 45,000 4 11,250 45,000 Poverty Simulation Amendment 13,125 1 13,125 13,125 Total Community Coordination, Resource and Development 136,125 136,125 Family Development: . Base Amount 1,235,497 Contract Amendment 538,119 Family Intake, Assessment and Referral 24,154 28 676,308 Family Support Project 4,547 25 113,675 Life Skills Class 2,992 25 74,800 Targeted Coaching Project - 28 - Job Readiness Program 344 750 258,000 Work Experience - Health Care 114 2,500 285,000 Work Experience - Computer - 3,100 - Work Experience - Manicure - 4,000 - Job Fair 313 25 7,825 Senior Prescription - 50 - IDA Support - 50 - Pave the Way 3,529 45 158,805 Back to School Fair 8,661 23 199,203 1,773,616 Capacity Building Grant - - Total Funding from Community Service Block Grant 1,909,741 1,909,741 Homeless Challenge Program - State Portion 110,325 11,241 110,325 Energy Crisis Intervention Program 5,051,910 13,696 Households 5,051,910 $ 7,071,976 $7,071,976 17 Schedule G United Services Community Action Agency Schedule of Expenditures of Federal Awards For the Year Ended September 30, 2008 Programs | Federal CFDA Number | Pass-Through Contract Number | Expenditures U.S. Department of Housing and Urban Development Passed through the City of Kansas City, Missouri Supportive Housing Program 14.235 06-045 and 07-045 $147,402 Total Department of Housing and Urban Development 147,402 U.S. Department of Health and Human Services Passed through the Missouri Department of Social Services Community Services Block Grant 93.569 CSBG-09 1,909,741 Low -Income Home Energy Assistance 93.568 FY-2008 ECIP 5,051,910 Passed through Platte County, Missouri Community Services Block Grant 93.569 HCP-24 110,325 Total Department of Health and Human Services 7,071,976 U.S. Federal Emergency Management Agency Direct Program Emergency Food and Shelter Program 83.523 21-5258-00 35,802 U.S. Department of Agriculture Passed through the Missouri Department of Social Services Emergency Food Assistance Program (Food Commodities) 10.569 Unavailable 21,923 Total Department of Agriculture Total Expenditures of Federal Awards $7,277,103 18 SCHEDULE H UNITED SERVICES COMMUNITY ACTION AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2008 SUMMARY OF AUDIT RESULTS 1. The auditor's report expresses an unqualified opinion on the financial statements. of United Services Community Action Agency. 2. No material weaknesses relating to the audit of the financial statements are reported in the "Independent Auditor's Report on Cornpliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standard?. 3. No instances of significant noncompliance which are material to the financial statements of United Services Community Action Agency were disclosed during the audit. No material weaknesses relating to the audit of the major federal award programs are reported in the "Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133". 5. The auditor's report on compliance for the major federal award programs for United Services Community Action Agency expresses an unqualified opinion on all major federal programs. 6. Audit findings relative to the major federal award programs for United Services. Community Action Agency are reported in this schedule. 7. The programs tested as major programs include: Community Services Block Grant CFDA 93.569 Low -Income Home Energy Assistance CFDA 93.568 8. The threshold for distinguishing Type A and B programs was $500,000. 9. United Services Community Action Agency was determined to be a low -risk auditee. FINDINGS FINANCIAL STATEMENTS AUDIT None FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT None 19 SCHEDULE I UNITED SERVICES COMMUNITY ACTION AGENCY SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS YEAR ENDED SEPTEMBER 30, 2008 FINDINGS - FINANCIAL STATEMENTS AUDIT None FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT None 20 Ralph C. Johnson & Company, P.C. CERTIFIED PUBLIC ACCOUNTANTS Mark Twain Tower 106 W: 11th Street, Suite 1530 Kansas City, Missouri 64105-1817 (816) 472-8900 FAX (816) 472-4633 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 United Services Community Action Agency Kansas City, Missouri We have audited the financial statements of UNITED SERVICES COMMUNITY ACTION AGENCY (USCAA) as of and for the year ended September 30, 2008, and have issued our report thereon dated December 29, 2008. 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered USCAA's 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 USCAA's internal control over financial reporting. Accordingly, we do not express an opinion of the effectiveness of the Organization's internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Organization's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles, such that there is more than a remote likelihood that a misstatement of the Organization's financial statements that Is more than inconsequential will not be prevented or detected by the Organization's internal control processes. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Organization's internal control processes. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting which we believe area significant deficiency or material weakness, as described above. During the year, we noted certain control deficiencies in internal controls of USCAA regarding its internal control process. These deficiencies in internal controls, which we do not feel is a material weakness or a significant deficiency, are explained in more detail in the letter dated December 29, 2008 which was provided to management. 21 Compliance and Other Matters As part of obtaining reasonable assurance about whether USCAA'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. This report is intended solely for the information and use of the finance committee, board of directors, the management of USCAA, others within the organization, 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. Kansas City 29 DECEMBER 2008 OUR 38TH YEAR Ralph C. Johnson & Company, P.C. 22 Ralph C. Johnson & Company, P.C. CERTIFIED PUBLIC ACCOUNTANTS Mark Twain Tower 106 W. 11th Street, Suite 1530 Kansas City, Missouri 64105-1817 (816)472-8900 FAX (816) 472.4633 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Directors UNITED SERVICES COMMUNITY ACTION AGENCY Kansas City, Missouri Compliance We have audited the compliance of UNITED SERVICES COMMUNITY ACTION AGENCY (USCAA) (a nonprofit organization) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 31, 2008. USCAA's 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 USCAA's management. Our responsibility is to express an opinion on USCAA's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 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 USCAA's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of USCAA's compliance with those requirements. In our opinion USCAA complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended September 30, 2008. Internal Control Over Compliance The management of USCAA 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 USCAA's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of USCAA's internal control over compliance. A control deficiency in an entiWs internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected. 23 A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance what we consider to be a material weaknesses, as defined above. This report is intended solely for the Information and use of the management, Board of Directors, others within the entity, 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. Kansas City 29 DECEMBER 2008 OUR 38th YEAR Ralph C. Johnson & Company, P.C. 05/04/2,609 16:59 FAX 8168583129 UNITED SERVICES 002 Summary of Services Riverside Rent 2008- 2009 United Services received $10,000 from the City Of Riverside for fiscal year 2008- 2009. The first allocation was made on July 10, 2008 and the final allocation was made November 20, 2008, In accordance with the grant, all funds were used to assist Riverside residents with rent payments. During this fiscal year, 23 families were served. Households included 32 adults and 54 children. Funds were used to assist seven seniors and nine individuals who receive disability compensation. All individuals received comprehensive screening and appropriate referrals for services including energy assistance, food, clothing and medical care. In addition, referrals included United Services' Life Skills and Job Readiness Courses. 05/04/200.9 16:59 FAX 8168583129 UNITED SERVICES @1003 RIVERSIDE RENT AMOUNT $10.000 NAME | DATE | AMOUNT | BALANCE BURTON, STACEY 7-10-08 510.00 9490.00 WITTLER, CARLEY 7-10-08 399.00 9091.00 KELLOGG, JERRIE 7-10-08 515.00 8576.00 WIA, RANDY 7-10-08 445.00 8131.00 WILSON, RUTH 7-16-08 540.00 7591.00 FRAZIER, SHALEA 7-17-08 495.00 7096.00 MCELWEE, DELLA 8-5-08 605.00 6491.00 THOMPSON, VICTORIA 8-18-08 475.00 6016.00 JESSICA ROME 8-18-08 165.00 8581 HELDERMAN, ROBERT 8-26-08 440.00 5411.00 BALLARD, DONNIE 8-27-08 86.00 5325.00 ELLIOT, FLOYD 9-3-08 445.00 4880.00 CORFIELD, BARBARA 9-4-08 399.00 4481.00 GREER, DONALD 9-5-08 210.00 4271.00 LYNCH, VALERIE 9-5-08 545.00 3726.00 CARSON, THOMAS 9-8-08 570 3156 HUME, MIRANDA 9-9-08 345.13 2810.87 TUCKER, ALLEN 10-2-08 480.00 2330.87 SMITH, MICHELLE 10-6-08 467.00 1863.87 STONE, DANIELLE 10-7-08 570.00 1293.87 REINHOLZ, AMBER 10-9-08 300.00 993.87 HARRISON, BRAD 11-20-08 525.00 468.87 PAINTER, CATHLEEN 11-20-08 395.00 73.87 TURNER, TISHA 11-24-08 73.87 0 BALANCE $