FULMONT COMMUNITY
ACTION AGENCY, INC.
Financial Statements and
Supplementary Infonnation
September 30, 2010 and 2009
(With Independent Auditors’ Report Thereon)
FULMONT COMMUNITY
ACTION AGENCY, INC.
Table
of
Contents
Independent Auditors’ Report
Financial Statements:
Statements
of
Financial Position
Statements
of
Activities
Statements
of
Functional Expenses
Statements
of
Cash Flows
Notes to Financial Statements
Schedule
of
Expenditures
of
Federal Awards
Independent Auditors’ Report
on
Compliance with Requirements That Could
Have a Direct and Material Effect on Each Major Program and on Internal
Control Over Compliance
in
Accordance with OMB Circular A-133
Schedule
of
Findings and Questioned Costs
1-2
3
4
5-6
7
8 –
12
13
–14
17 –
18
19
TOSKI,
SCHAEFER
&
CO.,
P.C.
CERTIFIED
PUBLIC
ACCOUNTANTS
555
INTERNATIONAL
DR.
14
CORPORATE
WOODS
BLVD.
WILLIAMSVILLE,
NY
14221
ALBANY,
NY
12211
(716)
634·0700
(SIS)
935-1069
INDEPENDENT AUDITORS’ REPORT
The Board
of
Directors
Fulmont Community
Action Agency, Inc.:
We have audited the accompanying statements
of
financial position
of
Fulmont Community Action
Agency, Inc. as
of
September 30, 2010 and 2009, and the related statements
of
activities, functional
expenses and cash flows for the years then ended. These financial statements are the responsibility
of
the Agency’s management. Our responsibility is to express an opinion on these financial
statements based on our audits.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position
of
Fulmont Community Action Agency, Inc. as
of
September 30, 2010 and 2009,
and the changes in its net assets and its cash flows for the years then ended, in conformity with
accounting principles generally accepted in the United States
of
America.
Our audits were performed for the purpose
of
forming an opinion on the basic financial statements
taken as a whole. The accompanying schedule
of
expenditures
of
Federal awards is presented for
purposes
of
additional analysis as required
by
U.S. Office
of
Management and Budget Circular A-
133, Audits
of
States, Local Governments, and Non-Profit Organizations, and is not a required part
of
the basic financial statements. 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.
Williamsville, New York
December 13, 2010
2
FULMONT COMMUNITY ACTION AGENCY, INC.
Statements
of
Financial Position
September 30, 2010 and 2009
Assets
Current assets:
Cash and equivalents
Fees and grants receivable
Prepaid expenses
Total current assets
$
2010
814,451
266,129
11,663
1,092,243
2009
479,203
415,098
7,656
901,957
Liabilities and
Net
Assets
Current liabilities:
Accounts payable
Accrued expenses
Deferred revenue
Total current liabilities
Unrestricted net assets:
Available for operations
Investment in leasehold improvements and equipment
Total unrestricted net assets
53,747
265,720
526,062
845,529
363,133
431,855
794,988
146,928
196,664
300,366
643,958
372,382
306,985
679,367
Commitments and contingencies (notes 8 and 9)
Total liabilities and net assets $ 1,640,517 1
See accompanying notes to financial statements.
3
FULMONT COMMUNITY ACTION AGENCY, INC.
Statements
of
Activities
Years ended September
30,2010
and 2009
Unrestricted revenue:
Fees and grants from governmental agencies
Contributions and in-kind support
Program revenue
Interest
Miscellaneous
$
2010
5,269,732
874,448
42,288
3,459
22,914
2009
4,640,795
850,915
31,630
3,634
5,358
Total unrestricted revenue
6,212,841
5,532,332
See accompanying notes to financial statements.
4
FULMONT COMMUNITY ACTION AGENCY, INC.
Statement
of
Functional Expenses
Year ended September
30,2010
with comparative totals for 2009
Personnel costs
Payroll taxes and fringe benefits
In-kind expense
Sub-contract labor
Materials
Program expenses
Professional fees
Head Start contractual
Occupancy
Training
Postage
Supplies
Program
services
$ 1,902,669
726,712
842,019
81,138
211,341
97,707
4,713
750,315
110,463
109,466
4,334
85,201
Management
and
general
306,424
96,555
19,341
2,754
7,497
9,055
Total
2010 2009
2,209,093 1,925,242
823,267 652,818
842,019 794,688
81,138 61,703
211,341 304,480
97,707 90,419
24,054 17,857
750,315 865,984
110,463 136,288
112,220 28,361
11,831 6,961
94,256 80,983
5
FULMONT COMMUNITY ACTION AGENCY, INC.
Statement
of
Functional Expenses
Year ended September 30, 2009
Personnel costs
Payroll taxes and fringe benefits
In-kind expense
Sub-contract labor
Materials
Program expenses
Professional fees
Head Start contractual
Occupancy
Program
services
$ 1,668,096
578,745
794,688
61,703
304,480
90,419
4,242
865,984
136,288
Management
and
general
257,146
74,073
13,615
Total
1,925,242
652,818
794,688
61,703
304,480
90,419
17,857
865,984
136,288
See accompanying notes to financial statements.
6
FULMONT COMMUNITY ACTION AGENCY, INC.
Statements
of
Cash Flows
Years ended September 30, 2010 and 2009
Cash flows from operating activities:
Increase in unrestricted net assets
Adjustments to reconcile increase in unrestricted net assets
Prepaid expenses
Accounts payable
Accrued expenses
Deferred revenue
Net cash provided by operating activities
Cash flows from investing activities:
Increase in certificates
of
deposit
Additions to leasehold improvements and equipment
Net cash used in investing activities
2010 2009
$ 115,621 95,948
(4,007) 14,944
(93,181) 33,897
69,056 67,163
196,150
17
272,550
(2,036) (2,310)
(169,233) (67,217)
(69,527)
See accompanying notes to financial statements.
7
FULMONT COMMUNITY ACTION AGENCY, INC.
Notes to Financial Statements
September 30, 2010 and 2009
(1) Summary
of
Significant Accounting Policies
Ca)
Nature
of
Activities
Fulmont Community Action Agency, Inc. (the Agency) is a non-profit corporation serving
the counties
of
Fulton and Montgomery and surrounding counties. Its primary purpose
(b) Basis
of
Accounting
The accompanying financial statements have been prepared on the accrual basis
of
accounting in accordance with accounting principles generally accepted in the United
States
of
America.
ec)
Basis
of
Presentation
The Agency reports 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. The Agency had only unrestricted net assets
in
20 I 0
and 2009.
(d) 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.
8
FULMONT COMMUNITY ACTION AGENCY, INC.
Notes to Financial Statements, Continued
(1) Summary
of
Significant Accounting Policies, Continued
(g) Investments
Investments
in
certificates
of
deposit have been classified as investments held-to-maturity.
These are investments in debt securities in which the Agency has the ability and intent to
hold to maturity. The amortized cost equals fair value for the investments held-to-
maturity.
(h) Fair Value Measurements
A framework has been established for measuring fair value. That framework provides a fair
value hierarchy that prioritizes the inputs to valuation techniques used to measure fair
(i) Capitalization and Depreciation
Property and equipment are recorded at cost or fair market value at the date
of
the gift in the
case
of
donated equipment. Depreciation
is
provided for in amounts sufficient to relate
the cost
of
depreciable assets to operations over their estimated service lives using the
(j) Deferred Revenue and Revenue Recognition
Grant awards accounted for as exchange transactions are recorded as revenue when
expenditures have been incurred in compliance with the grant restrictions. Amounts
unspent are recorded in the statements
of
financial position as deferred revenue.
(k) Donated Materials, Food, Supplies and Personal Services
The Agency receives unrestricted donations from outside parties. The donations include,
but are not limited to, equipment, clothing, services, and food. All donations are