ST. CATHERINE’S CENTER FOR CHILDREN
FINANCIAL STATEMENTS
and
INDEPENDENT AUDITOR’S REPORT
June 30, 2010
ST. CATHERINE’S CENTER FOR CHILDREN
FINANCIAL STATEMENTS
and
INDEPENDENT AUDITOR’S REPORT
June 30, 2010
C O N T E N T S
Page
INDEPENDENT AUDITOR’S REPORT 1
FINANCIAL STATEMENTS
Statement of Financial Position 2
Statement of Activities 3
Statement of Cash Flows 4
Notes to Financial Statements 5-10
SUPPLEMENTAL INFORMATION
BOLLAM, SHEEDY, TORANI & CO. LLP
Certified Public Accountants
Albany, New York
An Independent Member of the RSM McGladrey Network Page 1
INDEPENDENT AUDITOR’S REPORT
Board of Directors
St. Catherine’s Center for Children
Albany, New York
We have audited the accompanying statement of financial position of St. Catherine’s Center for Children (a New
York not-for-profit corporation) as of June 30, 2010, and the related statements of activities and cash flows for the year then
ended. These financial statements are the responsibility of St. Catherine’s Center for Children’s management. Our
responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized
comparative information has been derived from St. Catherine’s Center for Children’s June 30, 2009, financial statements
and, in our report dated August 21, 2009, we expressed an unqualified opinion on those financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of St. Catherine’s Center for Children as of June 30, 2010, and the change in its net assets and its cash flows for the
year then ended, in conformity with accounting principles generally accepted in the United States of America.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
ST. CATHERINE’S CENTER FOR CHILDREN
STATEMENT OF FINANCIAL POSITION
2010 2009
ASSETS
Cash 178,026$ 159,455$
Accounts receivable, net 1,599,548 1,620,781
Prepaid expenses 57,080 18,635
LIABILITIES
Lines-of-credit 628,753$ 390,329$
Accounts payable, trade 273,358 390,026
Accounts payable, related parties 4,442 11,545
COMMITMENTS AND CONTINGENCIES
NET ASSETS
Unrestricted 2,164,942 2,270,254
Unrestricted, Board designated – 3,565
(comparative totals for 2009)
June 30, 2010
ST. CATHERINE’S CENTER FOR CHILDREN
STATEMENT OF ACTIVITIES
Unrestricted
Unrestricted Board Temporarily 2010 2009
Operating Designated Restricted Totals Totals
REVENUES AND OTHER SUPPORT
Board and care 4,991,331$ –$ –$ 4,991,331$ 5,401,450$
Homeless shelter 1,270,872 – – 1,270,872 1,104,483
Medical assistance 1,715,531 – – 1,715,531 1,716,173
Preventive services 1,137,960 – – 1,137,960 1,208,624
Tuition 2,807,952 – – 2,807,952 3,110,076
EXPENSES
Program services
Group residence 1,407,450 – – 1,407,450 1,340,125
Copson 2,334,124 – – 2,334,124 2,496,190
Foster care 392,413 – – 392,413 376,267
Group home 563,853 – – 563,853 694,124
Medical 539,590 – –
539,590 666,110
Special education 2,447,903 – – 2,447,903 2,856,811
Clinic 589,080 – – 589,080 603,885
CHANGE IN NET ASSETS BEFORE CHANGE IN
INTEREST IN NET ASSETS OF THE
FOUNDATION OF ST. CATHERINE’S
CENTER FOR CHILDREN (105,312) (3,565) 207 (108,670) (140,990)
Change in interest in net assets of The Foundation of
St. Catherine’s Center for Children – – 42,659 42,659 (103,142)
CHANGE IN NET ASSETS (105,312) (3,565) 42,866 (66,011) (244,132)
Year Ended June 30, 2010
(comparative totals for 2009)
ST. CATHERINE’S CENTER FOR CHILDREN
STATEMENT OF CASH FLOWS
2010 2009
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Change in net assets (66,011)$ (244,132)$
Adjustments to reconcile change in net assets to net cash
provided (used) by operating activities
Depreciation 197,417 210,402
Change in interest in the net assets of The Foundation of
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES
Acquisition of equipment (32,352) (74,918)
Proceeds from the sale of equipment 6,787 –
(25,565) (74,918)
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES
Lines-of-credit, net 238,424 (145,467)
Repayments of long-term debt (58,251) (52,028)
180,173 (197,495)
Net increase (decrease) in cash 18,571 (20,959)
Year Ended June 30, 2010
(comparative totals for 2009)
ST. CATHERINE’S CENTER FOR CHILDREN
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Page 5
NOTE 1 – SUMMARY OF ACCOUNTING POLICIES
a. Description of Organization
St. Catherine’s Center for Children (Center) is a private not-for-profit corporation operated under the auspices of the
Roman Catholic Diocese of Albany (Diocese). The Center provides a variety of residential, community, and school
A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial
statements follows.
b. Accounting Method
The financial statements are prepared on the accrual basis of accounting.
On June 30, 2010, the Center adopted the Financial Accounting Standards Board (FASB) Accounting Standards
Codification (ASC). The ASC is an aggregation of previously issued authoritative accounting principles generally
c. Fair Value Measurement
The Center reports certain assets at fair value. Fair value is defined as an exchange price that would be received for an
asset or paid to transfer a liability (an “exit” price) in the principal or most advantageous market for the asset or liability
between market participants on the measurement date.
d. Accounts Receivable
Accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a
review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by
ST. CATHERINE’S CENTER FOR CHILDREN
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Page 6
NOTE 1 – SUMMARY OF ACCOUNTING POLICIES – Continued
e. Land, Buildings, and Equipment
Acquisition of land, buildings, and equipment and expenditures, which materially change capacities or extend useful lives
are reported at cost, net of accumulated depreciation. Routine maintenance and repairs and minor replacement costs are
charged to expense as incurred. When buildings and equipment are retired or otherwise disposed of, the appropriate
accounts are relieved of costs and accumulated depreciation, and any resultant gain or loss is included in the Center’s
change in net assets.
f. Recognition of Donor Restrictions
Support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the
restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. The
Center had no permanently restricted net assets as of June 30, 2010.
g. Tax Status
The Center is exempt from income tax under Section 501(c)(3) of Internal Revenue Code and comparable New York
State law. Contributions to it are tax deductible within the limitations prescribed by the Code. The Center has been
classified as a publicly supported organization, which is not a private foundation under Section 509(a) of the Code. This
exemption from taxes is under the terms of an annual group ruling granted to the United States Catholic Conference.
h. Subsequent Events
In preparing the financial statements and notes thereto, the Center has considered subsequent events through August 26,
2010, the date the financial statements were issued.
i. Comparative Totals Summarized Financial Information for 2009
The financial statements include certain prior year summarized comparative information in total but not by net asset class.
Such information does not include sufficient detail to constitute a presentation in conformity with (GAAP).
ST. CATHERINE’S CENTER FOR CHILDREN
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Page 7
NOTE 2 – LAND, BUILDINGS, AND EQUIPMENT, NET
A summary of the Center’s land, buildings, and equipment, net, is as follows:
June 30,
2010
Furnishings and equipment 944,693$
Land, buildings, and improvements 3,351,956
Leasehold improvements 245,725
Vehicles 554,384
NOTE 3 – INTEREST IN NET ASSETS OF THE FOUNDATION OF ST. CATHERINE’S CENTER FOR CHILDREN
a. Net Assets
The Foundation of St. Catherine’s Center for Children (Foundation) was organized to engage in activities to promote the
purposes, goals, and objectives of the Center to solicit contributions to carry out those purposes. The Center is required
to report its ongoing economic interest in the net assets of the Foundation. Each year the change in this interest is
reported in the statement of activities.
A summary of Foundation’s financial position and liquidity is as follows:
A summary of the Foundation’s change in net assets is as follows:
Year Ended
June 30, 2010
Revenues, gains, and other support 263,972$
Expenses 221,313
Change in net assets 42,659$
ST. CATHERINE’S CENTER FOR CHILDREN
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Page 8
NOTE 3 – INTEREST IN NET ASSETS OF THE FOUNDATION OF ST. CATHERINE’S CENTER FOR CHILDREN
– Continued
b. Service Agreement
The Center has an agreement with the Foundation to provide personnel, office space, and certain administrative services
to the Foundation. The agreement is renewable on an annual basis. Reimbursement for these services totaled $85,854
NOTE 4 – LINES-OF-CREDIT
The Center has available a $1,300,000 line-of-credit with First Niagara Bank, of which $628,753 was outstanding at June
30, 2010. The line-of-credit expires December 1, 2010, and is secured by accounts receivable. Interest is charged at the
bank’s prime rate with a floor of 4.0% (4.0% at June 30, 2010) or the three-month LIBOR rate plus 2.5%, with a floor of
4.0% (4.0% at June 30, 2010) at the election of management. The Center is required to maintain a zero balance for 30
consecutive days during the loan year.
NOTE 5 – LONG-TERM DEBT
A summary of the Center’s long-term debt is as follows:
June 30, 2010
First Niagara Bank (Note 4)
Nine notes payable, in total monthly installments of $3,571, including
interest at rates ranging from 4.59% to 7.35%, maturing at various
dates from February 2012 through November 2013 (a)(b) 101,879$
Saratoga National Bank
Two notes payable, in total monthly installments of $1,026, including
principal and interest at rates ranging from 6.40% to 6.78%,
ST. CATHERINE’S CENTER FOR CHILDREN
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Page 9
NOTE 5 – LONG-TERM DEBT – Continued
A summary of the Center’s future minimum annual maturities of long-term debt is as follows:
For the year ending June 30, 2011 67,838$
2012 60,782
2013 22,347
2014 3,419
154,386$
NOTE 6 – RELATED PARTY TRANSACTIONS
The Center is affiliated with the Diocese. At times, the Center receives cash advances from the Diocese for working
capital purposes. Interest on cash advances to the Center from the Diocese is charged at a rate of 5%. Interest paid and
NOTE 7 – PENSION PLAN
The Center is a member of a multiemployer defined benefit plan. The plan is administered by the Diocese. This plan is
available to all eligible lay employees of the Diocese and all Diocesan-related parties.
NOTE 8 – TEMPORARILY RESTRICTED NET ASSETS
Temporarily restricted net assets are available for the following purposes:
June 30, 2010
NOTE 9 – COMMITMENTS AND CONTINGENCIES
a. Leases
The Center leases office space at 40 North Main Avenue, Albany, New York, from the Diocese, a related party, on an
annual basis. The lease required payments of $7,246 per month for the year ended June 30, 2010. Rent expense on this
space totaled $83,913 for the year ended June 30, 2010. The lease for the year ending June 30, 2011, requires monthly
payments of $7,353 per month.
ST. CATHERINE’S CENTER FOR CHILDREN
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
Page 10
NOTE 9 – COMMITMENTS AND CONTINGENCIES – Continued
a. Leases – Continued
The Center leases program space at 401 New Scotland Avenue, Albany, New York, from St. Teresa of Avila Church, a
related party. The lease required payments of $6,438. The lease expires during November 2012. The Center has one
additional five-year renewal option, with monthly rental payments of $6,631. Rent expense on this lease was $77,250 for
the year ended June 30, 2010.
A summary of the Center’s future annual minimum rental payments due under the terms of its operating leases is as
follows:
For the year ending June 30, 2011 165,486$
2012 77,250
2013 25,750
268,486$
b. Concentration of Credit Risk
The Center maintains cash balances in several financial institutions located in the Northeast. Accounts at each institution
c. Significant Concentration
Approximately 53% of the Center’s total revenue and other support was derived from three funding sources. Accounts
d. Funding Sources
The Center is subject to audits and reviews of reimbursable costs by various governmental agencies. The outcome of
ST. CATHERINE’S CENTER FOR CHILDREN
SUPPLEMENTAL INFORMATION – FUNCTIONAL EXPENSES
Famil
y
Communit
y
Total Mana
g
ement
Grou
p
Foster Grou
p
S
p
ecial Based Transitional Based 231 Access and Pro
g
ra
m
and 2010 2009
Residence Co
p
son Care Home Medical Education Clinic Treatment Prevention Housin
g
Services Sherman St. Visitation Services General Totals Totals
Salaries and wa
g
es 997,609$ 1,643,678$ 111,200$ 391,271$ 144,604$ 1,806,487$ 379,554$ 159,615$ 482,181$ 691,007$ 276,498$ 93,190$ 32,986$ 7,209,880$ 901,989$ 8,111,869$ 8,489,808$
Pa
y
roll taxes, frin
g
e benefits,
vacation accrual 209,202 322,396 23,126 76,835 29,080 322,169 65,352 27,946 83,387 138,311 57,170 17,072 12,804 1,384,850 176,387 1,561,237 1,582,416
Trans
p
ortation and worker ex
p
ense 10,220 27,003 23,213 4,270 3,583 2,675 638 6,940 33,688 10,164 6,622 2,193 – 131,209 687 131,896 119,904
Children’s activities/
p
ro
g
ram su
pp
lies 28,104 47,931 4,864 13,536 279 35,532 4,931 2,068 4,464 14,850 22,849 2,029 – 181,437 4,250 185,687 260,364
Purchase of services 2,215 4,265 746 850 390 19,467 440 761 715 64,299 5,471 65 130 99,814 86,089 185,903 136,108
Purchase of health services – – – – 140,690 5,275 73,625 20,400 8,820 – – – – 248,810 – 248,810 280,525
Food 30,452 49,944 – 14,828 – 63,129 77 – – 44 – – – 158,474 – 158,474 203,805
Clothin
g
12,401 20,773 987 6,225 – – – 10,359 – 1,217 – 456 – 52,418 – 52,418 60,094
Beddin
g
/linen/uniforms – – – – – – – – – – – – – – – – –
Su
pp
lies and e
q
ui
p
ment 13,836 25,053 5,229 8,666 302 18,121 4,428 2,828 319 39,558 – 3,043 – 121,383 43 121,426 97,490
Su
pp
lies and e
q
ui
p
ment, medical – – – – 171,989 – 6,286 – – – – – – 178,275 – 178,275 261,034
Rent, occu
p
anc
y
5,846 75,470 1,007 2,061 – 1,088 1,306 972 24,702 326 7,305 – 154 120,237 42,343 162,580 178,596
Rent, e
q
ui
p
ment and fixtures 2,223 3,151 917 1,962 165 3,073 544 1,040 713 2,315 333 66 2 16,504 1,655 18,159 14,208
Utilities 18,269 12,124 2,509 8,056 4,197 34,801 8,573 2,509 – 61,918 – 5,174 – 158,130 – 158,130 172,927
Re
p
airs and maintenance,
p
lant 13,066 13,635 6,280 3,012 7,638 27,181 7,516 6,280 11 23,080 – 3,875 – 111,574 5,987 117,561 100,517
Re
p
airs and maintenance, e
q
ui
p
ment – – – – – 459 – – – – – – – 459 – 459 1,771
Re
p
airs and maintenance, vehicles 4,841 13,998 1,149 3,600 228 2,018 1,218 55 3,054 5,183 6,423 2,249 – 44,016 – 44,016 38,317
Tele
p
hone and tele
g
ra
p
h 13,527 13,593 3,128 6,106 7,421 13,115 7,868 3,072 8,829 12,309 6,308 4,020 473 99,769 19,128 118,897 115,936
g
p
p
p
p
g
y
p
p
Year Ended June 30, 2010
(comparative totals for 2009)
ST. CATHERINE’S CENTER FOR CHILDREN
FUNCTIONAL EXPENSES AS PRESENTED IN NEW YORK STATE COST REPORTS
Family Community
Group Foster Group Special Based Transitional 231 Based Access and 2010 2009
Residence Copson Care Home Medical Education Clinic Treatment Prevention Housing Sherman St. Services Visitation Totals Totals
Salaries and wages 1,115,518$ 1,832,782$ 143,657$ 437,723$ 188,350$ 2,006,363$ 427,137$ 191,288$ 531,816$ 782,488$ 104,549$ 309,905$ 40,293$ 8,111,869$ 8,489,808$
Payroll taxes, fringe benefits, –
vacation accrual 231,975 359,278 29,437 85,894 37,604 361,683 74,783 34,181 93,134 156,109 19,308 63,630 14,221 1,561,237 1,582,416
Transportation and worker expense 10,310 27,148 22,457 4,305 3,616 2,829 674 7,008 33,726 10,630 2,202 6,985 6 131,896 119,904
Children’s activities/program supplies 28,655 48,823 5,126 13,754 486 35,075 6,572 2,219 4,698 15,262 2,083 22,899 35 185,687 260,364
Purchase of services 13,447 22,341 3,839 5,290 4,629 38,834 5,133 3,817 5,482 71,603 1,161 9,496 831 185,903 136,108
Purchase of health services – – – – 140,690 5,275 73,625 20,400 8,820 – – – – 248,810 280,525
Food 30,452 49,944 – 14,828 – 63,129 77 – – 44 – – – 158,474 203,805
Clothing 12,401 20,773 2,806 6,226 – – – 9,541 – 671 – – – 52,418 60,094
Bedding/linen/uniforms – – – – – – – – – – – – – – –
Supplies and equipment 13,842 25,062 6,024 8,668 304 18,131 4,431 1,034 321 40,108 3,499 2 – 121,426 97,490
Supplies and equipment, medical – – – – 171,989 – 6,286 – – – – – – 178,275 261,034
Rent, occupancy 11,336 84,360 2,528 4,245 2,055 10,614 3,580 2,475 27,046 4,424 539 8,879 499 162,580 178,596
Rent, equipment and fixtures 2,438 3,498 976 2,048
276 3,445 633 1,099 804 2,444 88 394 16 18,159 14,208