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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC.
d/b/a SENIOR RESOURCE ALLIANCE
FINANCIAL STATEMENTS (Audited)
For the years ended December 31 , 2016 and 2015
TABLE OF CONTENTS
Independent Auditors' Report
Financial Statements:
Statements of Financial Position
Statements of Activities
Statements of Cash Flows
Statements of Functional Expenses
Notes to the Financial Statements
Supplementary Information:
Schedule of Program Service Expenses
Schedule of Expenditures of Federal Awards and State Financial Assistance
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
Independent Auditors' Report on Compliance for Each Major Federal Program and State Project, and Report on Internal Control Over Compliance Required by the Uniform Guidance and Rules of the Auditor General
Schedule of Findings and Questioned Costs - Summary of Auditors' Findings - Findings Related to the Financial Statements Required to be
Reported in Accordance with Government Auditing Standards - Findings and Questioned Costs for Federal A wards and State Financial Assistance
Auditors' Comments - Current Year (Management Letter)
Summary Schedule of Prior Audit Findings
1-2
3
4
5
6-7
8-14
15
16-17
18-19
20-21
22
23
23
DAVIDS. HOLLAND, CPA
THOMAS F. REILLY, CPA
Board of Directors Area Agency on Aging of Central Florida, Inc.
Orlando, Florida
HOLLAND & REILLY CERTIFIED PUBLIC ACCOUNTANTS
601 NORTH FERN CREEK
SUITE 200
ORLANDO, FLORIDA 32803
(407) 894-6803
( 4 0 7 ) 8 9 6 - 3 0 4 4 FAX
INDEPENDENT AUDITORS' REPORT
Report on the Financial Statements
AMERICA N INSTITUTE OF
CERTIFIED PL"BUC ACCOU!\"TA.'ITS
FLORIDA INSTITUTE OF
CERTiflED PL"BUC ACCO UNTAl'ITS
ASSOCIA"IlON O F
CER"IlFIIE.D t"RAUD EXAML'IERS
We have audited the accompanying financial statements of Area Agency on Aging of Central Florida, . Inc. (a nonprofit organization), d/b/a Senior Resource Alliance (the Agency) which comprise the statements of financial position as of December 31, 2015 and 2016, and the related statements of activities, cash flows, and functional expenses for the years 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.
Auditors' Responsibility
Our responsibility is to express an opm1on 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 from 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 auditors' 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 Agency'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 Agency'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 above present fairly, in all material respects, the financial position of Area Agency on Aging of Central Florida, Inc., as of December 31, 2015 and 2016, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Emphasis-of Matter
As discussed in Note 9 to the financial statements, the Agency is dependent on continued grant funding from the federal government and the State of Florida.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of program service expenses on page 15 is presented for additional analysis and the accompanying schedule of expenditures of federal awards and state financial assistance on pages 16 and 17 is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and Chapter 10.650, Rules of the Auditor General of the State of Florida, 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 schedule of program service expenses and the schedule of expenditures of federal awards and state financial assistance are 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 July 17, 2017 on our consideration of the Agency'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 Agency's internal control over financial reporting and compliance.
July 17, 2017 Orlando, Florida
AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
STATEMENTS OF FINANCIAL POSITION
ASSETS
December 3 1,
Current assets: Cash and cash equivalents Receivable from governmental agencies Accounts receivable Prepaid expenses
Total current assets
Property and equipment, net
Total assets
Current liabilities: Accounts payable Accrued expenses
Payable to providers Refundable advances
Deferred rent Total current liabilities
Net assets : Unrestricted
Total liabilities and net assets
LIABILITIES AND NET ASSETS
See accompanying notes.
-3-
2016 2015
$
$
1,119,370 1,845,260
2,676 25,516
2,992,822
36,895
3,029,717
37,991 151,988
1,522,292 202,100
26,410 1,940,781
1,088,936
$ 3,029,717
815,555 2,536,282
3,980 24,044
3,379,861
37,289
3,417,150
34,940 134,417
2,004,645 224,463 36,633
2,435,098
982,052
3,417,150
AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
STATEMENTS OF ACTIVITIES
Year ended December 31,
Public support and revenue: Public support:
Federal grants State grants Other grants and contributions
Other revenue Interest income
Total public support and revenue
Expenses: Program services Supporting services:
Management and general Total expenses
Increase in net assets
Net assets, beginning of year
Net assets, end of year
See accompanying notes.
-4-
2016 2015
$ 8,679,747
$
6,552,870 123,893 35,131
2,290 15,393,931
14,349,375
937,672 15,287,047
106,884
982,052
1,088,936
8,515,530 6,236,808
70,341 32,634
2,280 14,857,593
13,825,994
892,232 14,718,226
139,367
842,685
982,052
AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
STATEMENTS OF CASH FLOWS
Year ended December 31,
20 16 2015
Cash flows from operating activities:
Cash received from governmental agencies
Cash received from others
Interest income received
Cash paid to providers of goods and services
Cash paid to employees and suppliers
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Acquisition of property and equipment
Net cash used in investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of increase in net assets to
net cash provided by (used in) operating activities:
Increase in net assets
Adjustment to reconcile change in net assets to
net cash provided by (used in) operating activities:
Depreciation Grants receivable
Accounts receivable
Prepaid expenses
Accounts payable
Accrued expenses
Payable to providers
Refundable advance
Deferred rent Net cash provided by (used in) operating activities:
See accompanying notes.
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$ 15,901,276
160,328
2,290 (13,967, 13 6)
(1, 778,880)
317,878
$
(14,063) (14,063)
303,815
815,555
1,119,370
106,884
14,457
691 ,022
1,304
(1,472)
3,051
17,571
(482,353)
(22,363)
(10,223)
$ 317,878 ======
14,280,140
107,372 2,280
(12,748,192)
(1,666,358)
(24,758)
(11,325)
(11,325)
(36,083)
851,638
815,555
139,367
13,084
(454,232)
4,397
(16,996)
(10,691)
( 4,565)
333,068
(17,966)
(10,224)
(24,758)
AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
STATEMENT OF FUNCTIONAL EXPENSES
for the year ended December 31, 2016
Program Services
Nutrition Winter Older Emergency Services Community Home Care Alzheimer's Park
Americans Home Incentive Care for for the Disease Health Act Enerfil'__ Program SHINE the Elderly Elderly Initiative RELIEF MIPPA CDS ME Foundation
Personnel $ 265,438 32,910 - 85,464 156,900 65,935 14,675 5,139 1,920
Travel 3,573 80 - 20,797 - - - - - 281
Building space 13, 183 1,780 - 6,922 7,348 2,623 - 451 114
Conununication 2,614 909 8,435 6,659 727 - 182 125 42
Printing and supplies 7,501 236 - 7,509 1,870 233 - - - 783
Service subcontractors 5,974,992 254,363 535,519 - 4,360,268 50,760 1,189,813 115,506 70,345 3,000
Client subsidy payments - 23 1,452
Professional fees Insurance - - - 696
Maintenance and repairs - - 87
Other purchased services 6,091 - - 3,237 1,546 - - - 675 26,800
Advertising - - 3,481
Other miscellaneous expenses 642 268 - 2,964 460 - - 1,491
Lobbying expense
Total functional expenses before
depreciation 6,274,034 290,546 535,5 19 139,505 4,535, 138 351,730 1, 189,8 13 130,814 75,723 8,192 26,800
Depreciation
Total functional expenses $ 6,274,034 290,546 535,5 19 139,505 4,535,138 351,730 1,189,813 130,814 75,723 8,192 26,800
Continued
Pro
AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
STATEMENT OF FUNCTIONAL EXPENSES for the year ended December 31, 2015
Program Services
Nutrition
Older Emergency Services Elder Community Home Care Alzheimer's Americans Home lncentive Driver Care for for the Disease
Act Energy _ Program SHINE Safety the Elderly Elderly Initiative RELIEF MIPPA
Personnel $ 227,598 45,556 - 70,745 963 141,958 60,399 - 10,342 1,255 Travel 816 209 - 21 ,973 1,087 - - 96 Building space 10,319 1,953 4,876 1,009 5,295 2,324 - 433 Communication and utilities 2,549 1,041 7,635 17 4,693 775 - 102 Printing and supplies 24 1,900 - 9,242 - 1,548 161
Service subcontractors 5,827,304 325,536 544,616 - 4,049,865 54,872 1,150,303 120,2 11 62,555 Client subsidy payments - - - 277,334
Professional fees Insurance 718
Maintenance and repairs 64 64
Other purchased services 4,886 - - 3,329 6,682 355
Advertising - 5,122
Other miscellaneous expenses 375 213 - 4,370 593 196 53
Lobbying expense
Total functional expenses before depreciation 6,073,935 376,408 544,6 16 128,074 10,35 1 4,203,910 395,918 1,150,303 131,184 63,8 10
Depreciation
Total functional expenses $ 6,073,935 376,408 544,616 128,074 10,351 4,203,910 395,918 1,150,303 131,184 63,810
Continued
Program Services Winter FPNSAGE Park Agingand Brain UHC Florida Conference Total
Health Neighbors Disability Car Fitness Healthy Health and program Admini- Total Foundation Network Resource Fit Club Living Network Workshop services strative ~enses
Personnel - - 506,303 - - 1,065, 119 596,674 1,661,793
Travel 4,740 1,916 287 - 2,195 268 - - 33,587 14,922 48,509 Building space - - 21,489 - - 47,698 68,902 116,600
Conununication and utilities 1,041 12,069 863 265 - 19 36 31,105 10,343 41,448 Printing and supplies - 1,476 6,765 13,431 330 - 68 791 35,736 6,420 42,156 Service subcontractors 4,956 - - - - 19,286 1,200 - 12,160,704 75 12, 160,779 Client subsidy payments - - - - - 277,334 277,334 Professional fees - 750 - - - - 750 22, 100 22,850 Insurance 138 - - - - - - 856 12,007 12,863
Maintenance and repairs - - 121 - - - - 249 7,007 7,256
Other purchased services 6,000 5,859 1,261 96,000 24,121 160 - 148,653 121,819 270,472
Advertising - 1,901 - - - - - 7,023 630 7,653
Other miscellaneous expenses - 9,558 980 34 265 - 543 - 17, 180 11,249 28,429
Lobbying expense - - ------- - - 7,000 7,000
Total functional expenses before
depreciation 15,696 22,639 549,275 110,328 27, 176 19,554 1,990 827 13,825,994 879,148 14,705,142
Depreciation - - - - - - --- ----·-
- 13,084 13,084
Total functional expenses 15,696 22,639 549,275 11_0,328 _]7, 17~ __ 19,554 -
1,990 827 __ 13,825,994 892,232 14,718,226
See accompanying notes.
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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies:
Organization and activities - Area Agency on Aging of Central Florida, Inc. d/b/a Senior Resource Alliance (the Agency) was incorporated on September 22, 1992, as a private, non-profit, regional agency designated by the State of Florida in accordance with the Older Americans Act of 1965 and in the State Community Care for the Elderly Act. Since 1974, the Agency had operated as a division of the East Central Florida Regional Planning Council (Council) and began operating as a freestanding entity on January 1, 1993, at which time all authority passed from the Council to the Agency's Board of Directors.
The Agency admin~sters a network of services for the aging population in Orange, Osceola, Brevard and Seminole counties. The goal of the Agency is to strive to meet the nutritional and social needs of the aging population in this geographical area. "Aging" is defined as age 60 or older. To carry out this goal, the Agency conducts annual assessments of the needs of the elderly population, determines resources available to satisfy these needs, and then plans and coordinates programs using available resources to alleviate the identified needs. Generally, financial resources are in the form of governmental grants. The Agency awards these monies in the form of "service provider contracts" to the appropriate local organizations which provide the service to the aging population.
Basis of presentation - Financial presentation follows the recommendations of the Financial Accounting Standards Board. The Agency 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, based on the existence or absence of donorimposed restrictions. A donor-imposed restriction is a stipulation that specifies a use for a contributed asset that is more specific than broad limits resulting from the nature of the Agency, the environment in which it operates, and the purposes specified in its articles of incorporation or by-laws. The Agency has no temporarily or permanently restricted net assets at December 31, 2016 or 2015.
Basis of accounting - The financial statements have been prepared on the accrual basis of accounting in accordance with the accounting and reporting practices promulgated by the American Institute of Certified Public Accountants (AICPA) for not-for-profit organizations.
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. Donor restricted 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. Restricted contributions received in the same year the donor's restriction is met are recorded as unrestricted contributions.
Support - Support revenues from federal grants with the U .S. Department of Health and Human Services and U.S. Department of Transportation, and state grants with the Florida Department of Elder Affairs are recorded based upon the terms of the grantor allotment, which generally provide that revenues are earned when the allowable costs of the specific grant provisions have been incurred within approved budget categories. Costs in excess of budgeted amounts are not grant reimbursable expenses. Advance payments from the Agency's grantor agencies are recorded as refundable advances until they are expended for the purposes of the grant.
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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies - Continued:
Property and equipment - Property and equipment are recorded at cost. Donated property and equipment are valued at fair market value at the date of donation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which range from 3 to 5 years. The Agency's policy is to capitalize property and equipment with a cost of $1,000 or more.
Income taxes - The Agency is organized as a not-for-profit organization and is currently exempt from federal income taxes under the provisions of Section 50l(c)(3) of the Internal Revenue Code. Accordingly, no provision for federal or state income taxes is reflected in the accompanying financial statements.
Compensated absences - The Agency's policy is to pay employees upon termination for unused annual leave. The maximum accrual for each employee is two years and ranges from 140 hours to 330 hours based on the employee's length of service with the Agency and hours worked per week. A liability for
·accrued compensated absences has been reported in the accompanying financial statements.
Estimates - The preparation of financial statements in conformity with U.S. 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.
Functional allocation of expenses - The costs of providing program services and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the program services and supporting services benefited.
Cash and cash equivalents - Cash and cash equivalents are defined as highly liquid investments that have an original maturity of three months or less.
Donated rent - The present value of donated rent of $46,857 is being amortized over a 65 month lease period. The amortization of $10,223 is included in expense and deferred rent of $26,410 is recorded on the Statement of Financial Position.
Donated services - The Agency records the value of donated goods and services as both revenue and expense when there is an objective basis available to measure its value. Donated services from the Board of Directors members, advisory councils, and other committee members are not recorded by the Agency since the services do not meet the criteria of the Financial Accounting Standards Board.
Concentration of credit risk - The Agency receives a majority of its funding from federal and state governments. Any significant decrease in the Agency's federal and state grants would have an adverse effect on operations.
Fair value of financial instruments - The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is feasible to estimate that value.
• Cash and cash equivalents and accounts receivable/payables - Carrying amount approximates fair value due to the short maturity of these instruments.
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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
2. Description of Programs:
Older Americans Act - Under the Older Americans Act federal legislation, U.S. residents over 60 are eligible for services with priority given to the people with the most economic and social need. These services include congregate and home-delivered meals, nutrition education, homemaker, transportation, information, referral, outreach, education, employment and legal services.
Emergency Home Energy for the Elderly (EHEAP) - This federally-funded program provides assistance for low income elderly persons who are in danger of having their power turned off due to non-payment. Fan purchases and air conditioner repair are part of the summer program and blanket purchases are part of the winter program.
Nutrition Services Incentive Program - This federally-funded program is used to support nutrition programs for the elderly in the geographical region. The Agency provides reimbursement to nutrition service providers for meals served to the elderly. Program regulations require service providers to expand the meals being served to the elderly with the reimbursement of funds .
Serving Health Insurance Needs of Elders (SHINE) -This federally-funded program offers free health insurance counseling to elders and their caregivers. Trained volunteers provide information, counseling, and assistance in areas related to Medicare, Medicaid, long-term care insurance, managed care, and supplemental insurance.
DriveAble Assessment Program (Elder Driver Safety) - This program provides competence testing for medically at-risk drivers, which includes computer-based assessment of mental and motor skills, and, where appropriate, road tests administered by trained professionals. Mobility counseling is provided to inform at-risk individuals of available alternatives to driving.
Community Care for the Elderly (CCE) -This State of Florida General Revenue program provides inhome services for clients 60 and over who have been assessed as functionally impaired by trained case managers. Intake staff assess older adults who are in need of home and community based services or who are at risk of nursing home placement. This program includes follow-up visits and provides links to other community services. The services include case management, homemaker, personal care, respite, emergency alert response, and medical transportation.
Home Care for the Elderly (HCE) - This state-funded program encourages the provision of care for elders age 60 and older in family-type living arrangements in private homes as an alternative to nursing homes or other institutional care. A basic subsidy is provided for support and maintenance of the elderly, including medical costs. A special subsidy may also be provided for additional services and supplies which are needed.
Alzheimer's Disease Initiative - This state-funded program provides respite care services, including in-home services for the victims of Alzheimer's disease, and provides training for caregivers of these victims.
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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
2. Description of Programs - Continued:
Respite for Elders Living in Everyday Families (RELIEF) - This state-funded program offers an expansion of currently available in-home respite, specifically evening and weekend respite, in order to increase the ability of a family unit to continue to care for a homebound elderly individual beyond the basic provisions of current public programs.
Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) - This federally-funded program provides programmatic support to the SHINE program. The MIPPA program is intended to conduct targeted, community-based outreach to an increasing number of beneficiaries, with limited income and resources, who are eligible to receive assistance through this program.
Florida Health Network Chronic Disease Self-Management Education (CDSME) - This federally funded program, which also includes diabetes self-management education, is an evidence-based program that is presented in community settings to help participants better manage chronic conditions and improve overall health.
Winter Park Health Foundation - This private foundation provides grants for projects which enhance the quality of life and community for older adults. Programs supported include Neighbors Network, Brain Up! Website redesign, Table 60 Hunger Initiative, and Growing Bolder network development.
Neighbors Network - This is a member-driven organization initially funded through the Winter Park Health Foundation, dedicated to providing persons 55+ access to the support they need to age in their homes and community, primarily using volunteers, and recommending vetted service providers when necessary. The aim of Neighbors Network is to foster independence as well as interdependence. As of July 2016, all funds and administrative functions were transferred to the newly established entity, Neighbors Network, Inc.
Aging and Disability Resource - This state-funded program provides funding for trained call-center specialists to provide education on statewide Medicaid Managed Care Long-Term Care programs, screen individuals for potential Medicaid eligibility, and provide financial and medical eligibility assistance.
Car Fit - This federally funded educational program provides older adults the opportunity to find out how well their vehicles "fit" them and provides information and materials to enhance safety.
Brain Fitness Club - This locally funded program is geared to serve the elderly who are experiencing early memory loss. It is a program that promotes mental stimulation through music, art, reading, socialization, and light exercise, with the goal to enhance or maintain their individual cognitive functions.
Growing Bolder - This event, sponsored by a private foundation, celebrated nineteen local seniors who pursue their passions and live lives of purpose while making a difference in the lives of others.
United Health Care CUHC) Healthy Living - This program provides funding for wellness programs (Matter of Balance) and caregiver support programs (Savvy Caregiver).
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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
2. Description of Programs - Continued:
Florida Health Network - This program provides funding to develop a menu of evidence-based programs that lead to improved health promotion and comprehensive care coordination services.
Pulse Orlando Family Response Center-This locally funded program provided staffing at the Family Assistance Center and Helpline to provide infonnation and referrals to individuals affected by the Pulse nightclub shooting.
FPN Society for the Advancement of Gerontological Environments (SAGE) Conference and Workshop - This conference shares information and best practices about how nursing home architects and builders can implement the principles of person-centered care as they design, develop, and open new facilities.
3. Cash and Cash Equivalents:
Cash and cash equivalents of the Agency include checking accounts maintained in a financial institution which is insured by the Federal Deposit Insurance Corporation (FDIC). At December 31, 2016 and 2015, the Agency exceeded the insured limit by $869,370 and $565,555, respectively. In addition, a grant by the Florida Department of Transportation requires the grant proceeds to be maintained and accounted for in a separate bank account. At December 31, 2016 and 2015, the Agency held $4,585 in funds for a third party as fiscal agent both years. These funds are considered restricted and included in accrued liabilities.
4. Receivable From Governmental Agencies:
Grants receivable at December 31, 2016 and 2015 are as follows:
U.S Department of HHS Florida Department of Elder Affairs Florida Department of Transportation
5. Property and Equipment:
2016 $1,017,501
827,698 61
$1.845 260
Property and equipment consists of the following at December 31 , 2016 and 2015:
2016 Furniture and fixtures $ 65,082 Leasehold improvements 31,238 Computer equipment 114,531
210,851 Less accumulated depreciation ( 173,956)
Net property and equipment $ 36,825
-12-
2015 $1,402,342
1,109,366 24,574
$2,536,282
2015 $ 59,887
31,238 114,531 205,656
( 168,367) $ 31,282
AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
6. Lease Commitments:
Operating Leases
The Agency leases office space under a noncancellable operating lease that expires in July 2019. A noncancellable lease for equipment expired in December 2016. Lease expense for these leases amounted to$ 127,145 and $119,389 for the years ended December 31, 2016 and 2015 respectively.
Future minimum rental payments under the office space operating lease as of December 31, 2016 are as follows:
Year ending December 31,
2017 2018 2019 Total
$ 135,550 139,63 1
83,592 $ 358.773
Deferred Rent - The Agency extended its existing facility by entering into a sixty-five month lease beginning March 1, 2014. The first five months' rent was free. Monthly lease payments of $10,386, plus common area maintenance charges (CAM) began in August 2014 and will increase 3% annually each March 1. The Agency has the option of extending the lease term for an additional 36 months commencing August 2019.
Total lease expense for the facility lease totaled $127,145 (including CAM) and net of the recognition of amortized deferred rent of $10,224. Deferred rent is being recognized on a level basis over the term of the lease.
7. Retirement Plan:
The Agency has a 401(k) savings plan that began January 1, 2010. Under the original plan, an employee was eligible to participate after six months of service with no age limitation. Effective January 1, 2014, the plan was amended, allowing an employee to participate after one year of service, dependent on 1,000 hours of service, with a minimum age requirement of 21. Employees may make contributions to this plan up to the dollar limit allowed by the Internal Revenue Code. The plan does not allow matching employer contributions but does allow employer contributions equal to 10% of eligible participants' annual compensation. In 2016 and 2015, the Agency contributed $102,840 and $104,572, respectively. The 2016 and 2015 contributions do not include the application of the Agency's forfeiture balances of $9,452 and $1,591, respectively.
8. Matching Requirements:
The Agency must meet contractual matching requirements through cash and/or in-kind contributions. These requirements are proportionately passed on to the Agency's providers through contractual provisions in their subcontracts. The subcontract provider's match is reported to the Agency and tracked to ensure that all contractual matching requirements are met. However, the match provided by the Agency's providers is not recognized in the financial statements of the Agency.
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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE
NOTES TO THE FINANCIAL STATEMENTS
9. Commitments and Contingencies:
Grants require the fulfillment of certain conditions set forth in the grant agreements. Failure to fulfill or comply with the conditions could result in the return of funds to the granter. Although this is a possibility, the Board considers the contingency remote, since by accepting the grants it has accommodated the objectives of the organization to the provisions of the grants.
The Agency receives a substantial amount of its support from the U.S. Department of Health and Human Services ($8,563,078 and $8,400,569 in 2016 and 2015 respectively) and the Florida Department of Elder Affairs ($6,552,870 and $6,236,808 in 2016 and 2015 respectively). A significant reduction in the level of this support, if this were to occur, may have an effect on the Agency's activities.
10. Subsequent Events:
Management has evaluated events and transactions for potential recognition or disclosure through July 17, 2017, the date on which the financial statements were available to be issued.
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