FULMONT COMMUNITY ACTION AGENCY, INC.
Notes to Financial Statements, Continued
(1) Summary
of
Significant Accounting Policies, Continued
(1)
Promises to Give
Contributions are recognized when the donor makes an unconditional promise to give to the
Agency. Contributions that are restricted by the donor are reported as increases in
unrestricted net assets
if
the restrictions expire
in
the fiscal year in which the
(m)Expense Allocation
The costs
of
providing various programs and other activities have been summarized on a
functional basis
in
the statements
of
activities and
in
the statements
of
functional
expenses. Accordingly, certain costs have been allocated among the programs and
supporting services benefited.
(n) Subsequent Events
The Agency has evaluated events after September 30, 2010, and through December 13,
(0) Income Taxes
The Agency
is
exempt from income taxes under Section
501
(c )(3)
of
the Internal Revenue
Code, therefore, no provision for income taxes
is
reflected in the financial statements.
(2) Concentration
of
Credit Risk
The Agency provides social services primarily
in
the counties
of
Fulton and Montgomery and
surrounding counties
of
the State
of
New York. A substantial portion
of
the Agency’s
receivables are due from Federal and New York State governmental agencies.
(3) Certificates
of
Deposit
Certificates
of
deposit at September 30, 2010 and 2009 are summarized
as
follows:
2010 2009
Certificate
of
deposit maturing December 13,2009,
bearing interest at 3.25%
$
62,424
10
FULMONT COMMUNITY ACTION AGENCY, INC.
Notes to Financial Statements, Continued
(4) Leasehold Improvements and Equipment
Leasehold improvements and equipment at September 30, 2010 and 2009 are summarized as
follows:
2010 2009
Leasehold improvements $ 341,969 269,031
Playground equipment 52,294 52,294
Vehicles 357,825 264,068
Furniture and equipment 179,301 178,958
Computers and software 39,570 39,570
(5) Vested Vacation Wages
Included in accrued expenses is the Agency’s liability for future payments
of
accrued vested
vacation wages which amounted to $81,649 and $67,145 at September 30, 2010 and 2009,
(6) Deferred Revenue
Deferred revenue amounted to $526,062 and $300,366 at September 30, 2010 and 2009,
respectively. This amount represents cash provided to the Agency in advance
of
the period
to be benefited in order to provide working capital for the operation
of
the various programs
ofthe
Agency.
(7) Line
of
Credit
The Agency has an unsecured line
of
credit agreement with its bank in the amount
of
$200,000.
11
FULMONT COMMUNITY ACTION AGENCY, INC.
Notes to Financial Statements, Continued
(8) Commitments
The Agency has several operating leases, primarily for program sites, which expire through
June 30, 20l3. Leases with respect
to
program sites generally
do
not exceed a one-year
period or the remaining length
of
the grant contracts funding the program. Total rent
(9) Contingencies –Grants
Under the terms
of
various grants, periodic audits are required and certain costs may be
questioned as not being appropriate expenditures under the terms
of
the grants. Such
questioned costs could lead to reimbursement to the grantor agencies. Management believes
12
FULMONT COMMUNITY ACTION AGENCY, INC.
Schedule
of
Expenditures
of
Federal Awards
Year ended September 30, 2010
Program Title
Department
of
Agriculture –pass-through
New
York
State Department
of
Health:
Special Supplemental Nutrition Program for Women,
Infants and Children (2)
Child and Adult Care Food Program
Child and Adult Care Food Program
Total Department
of
Agriculture
Department
of
Health and Human Services:
Head Start Cluster:
Head Start (1)
Head Start (1)
Head Start –Universal PreK
Head Start –Universal PreK
ARRA –Head Start (1)
Pass-through
New
York State Office
of
Temporary
Disability Assistance –Temporary Assistance for
Needy Families –Wheels to Work
Federal
CFDA Grant
Number Number
EX12enditures
10.557
10.558
10.558
93.600
93.600
93.600
93.600
93.708
93.558
C025748
02CH1168/44
02CH1168/45
02CHl168/44
02CH1168/45
02CH1168/44
02CH1168/45
02SE1168/01
C020518
$ 1,740,333
67,500
27,921
1,835,754
1,320,878
957,621
141,229
18,466
125,708
157,334
13
FULMONT COMMUNITY ACTION AGENCY, INC.
Schedule
of
Expenditures
of
Federal A wards, Continued
Federal
CFDA Grant
Program Title Number Number Expenditures
Department
of
Health and Human Services, Continued:
Pass-through New York State Division
of
Housing
and Community Renewal:
Low-Income Home Energy Assistance 93.568 C091031-09 $ 244,722
Low-Income Home Energy Assistance 93.568 C091031-10 126,789
(1) Direct Federal Award
(2) Includes federal non-cash items, primarily nutrition vouchers totaling $1,320,752.
Basis
of
Presentation
The schedule
of
expenditures
of
Federal awards includes the Federal grant activity
of
Fulmont
14
TOSKI,
SCHAEFER
&
CO.,
P.C.
CERTIFIED
PUBLIC
ACCOUNTANTS
555
INTERNATIONAL
DR.
14
CORPORATE
WOODS
BLVD.
WILLIAMSVILLE,
NY
14221
ALBANY,
NY
12211
[7161
634-0700
[518)
935·1069
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
The Board
of
Directors
Fulmont Community
Action Agency, Inc.:
We have audited the financial statements
of
Fulmont Community Action Agency, Inc. as
of
and for
the year ended September 30, 2010 and have issued our report thereon dated December 13, 2010.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Fulmont Community Action Agency, Inc.’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
the Agency’s internal control over financial reporting.
Accordingly, we do not express an opinion on the effectiveness
of
the Agency’s internal control
over financial reporting.
Compliance and Other Matters
As part
of
obtaining reasonable assurance about whether Fulmont Community Action Agency,
Inc.’s financial statements are free
of
material misstatement, we performed tests
of
its compliance
with celiain provisions
of
laws, regulations, contracts and grants, 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.
16
TOSKI,
SCHAEFER
&
CO.,
P.C.
CERTIFIED
PUBLIC
ACCOUNTANTS
555
INTERNATIONAL
OR.
14
CORPORATE
WOOOS
BLVD.
WILLIAMSVILLE,
NY
14221
ALBANY,
NY
12211
(716)
634-0700
(518)
935-1069
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS
THAT COULD HA VE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
The Board
of
Directors
Fulmont Community
Action Agency, Inc.:
Compliance
We have audited the Fulmont Community Action Agency, Inc.’s compliance with the types
of
compliance requirements described in the U.S. Office
of
Management and Budget (OMB) Circular
A-133 Compliance Supplement that could have a direct and material effect on Fulmont Community
Action Agency, Inc.’s major Federal programs for the year ended September 30, 2010. Fulmont
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
Internal Control Over Compliance
Management
of
Fulmont Community Action Agency, Inc.
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 Fulmont Community Action Agency, Inc. ‘s internal control over compliance with the
requirements that could have a direct and material effect on a major Federal program
to
determine
the aUditing procedures for the purpose
of
expressing our opinion on compliance and
to
test and
report on internal control over compliance in accordance with OMB Circular A-133, but not for the
purpose
of
expressing
an
opinion on the effectiveness
of
internal control over compliance.
Accordingly, we
do
not express an opinion on the effectiveness
of
Fulmont Community Action
Agency, Inc.’s internal control over compliance.
Our consideration
of
internal control over compliance was for the limited purpose described in the
first paragraph
of
this section and was not designed to identify all deficiencies in internal control
over compliance that might be deficiencies, significant deficiencies or material weaknesses. We did
not identify any deficiencies in internal control over compliance that we consider
to
be
material
weaknesses,
as
defined above.
18
FULMONT COMMUNITY ACTION AGENCY, INC.
Schedule
of
Findings and Questioned Costs
Year ended September 30,2010
Part I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements:
Type
of
auditors’ report issued:
Internal control over financial reporting:
3.
Noncompliance material to financial statements noted?
Federal Awards:
Internal control over major programs:
4.
Material weakness(es) identified?
5.
Significant deficiency(ies) identified not considered to
be material weakness(es)?
Name
of
Federal Program
Head Start
ARRA –Head Start
8.
Dollar threshold used to distinguish between Type A and
Type B programs?
9.
Auditee qualified as low-risk auditee?
Unqualified
reported
__
Yes
_x_No
—
Yes
_x_No
—
Yes
_x_None
CFDA
Number
93.600
93.708
$300,000
_x_
Yes No
FULMONT COMMUNITY
ACTION AGENCY, INC.
Schedule
of
Prior Audit Findings
September
30,2010
There were no audit findings with regard to the prior year financial statements (September
30,2009).
20