gulf coast children’s advocacy center, inc. rpts/2017 gulf coast... · gulf coast children’s...
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC.
PANAMA CITY, FLORIDA
FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2017
GULF COAST CHILDREN’S ADVOCACY CENTER, INC.
PANAMA CITY, FLORIDA
FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2017
CONTENTS
PAGE
Independent auditor’s report 1
Financial Statements
Statement of financial position 3
Statement of activities 4
Statement of cash flows 5
Statement of functional expenses 6
Notes to financial statements 7
Compliance Section
Independent Auditor’s Report on Internal Control over Financial Reporting 14
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
CONTENTS (Continued)
PAGE
Independent Auditor’s Report on Compliance for Each Major Program and Project 16
and on Internal Control Over Compliance Required by the Uniform Guidance,
the Florida Single Audit Act (Florida Statute 215.97) and Chapter 10.650 of
the Auditor General of the State of Florida
Schedule of Findings and Questioned Costs – Federal Awards and State 19
Financial Assistance
Schedule of Expenditures of Federal Awards and State Financial Assistance 21
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 22
Tipton, Marler, Gamer & Chastain-The CPA Group Certified Public Accountant.
INDEPENDENT AUDITOR'S REPORT
Board of DirectorsGulf Coast Children's Advocacy Center, Inc.Panama City, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the Gulf Coast Children's AdvocacyCenter, Inc. (a nonprofit organization), which comprise the statement of financial position as ofDecember 31, 2017, and the related statements of activities, functional expenses, and cash flows forthe year 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 inaccordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether due tofraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.
501 West 19th Street
Panama City, Florida 32405(850) 769-9491 • Fax: (850) 785-9590
w\v\\'.cpagroup.com
600 Grand Panama Blvd., Suite 360
Panama City Beach, Florida 32407(850) 233-1360 • Fax: (850) 233-1941
www.cpagroup.com
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of Gulf Coast Children's Advocacy Center, Inc. as of December 31, 2017, and thechanges in its net assets and its cash flows for the year then ended in accordance with accountingprinciples generally accepted in the United States of America.
Other Matters
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as awhole. The accompanying schedule of expenditures of federal awards and state financial assistance,as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, the Florida Single AuditAct (Florida Statute 215.97) and Chapter 10.650 of the Rules of the Auditor General of the State ofFlorida, is presented for purposes of additional analysis and is not a required part of the financialstatements. Such information is the responsibility of management and was derived from and relatesdirectly to the underlying accounting and other records used to prepare the financial statements. Theinformation has been subjected to the auditing procedures applied in the audit of the financialstatements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the financial statements or tothe financial statements themselves, and other additional procedures in accordance with auditingstandards generally accepted in the United States of America. In our opinion, the information is fairlystated, 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 September20, 2018, on our consideration of Gulf Coast Children's Advocacy Center, Inc.'s internal control overfinancial 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 scopeof our testing of internal control over financial reporting and compliance and the results of thattesting, and not to provide an opinion on the effectiveness of Gulf Coast Children's Advocacy Center,Inc.'s internal control over financial reporting or on compliance. That report is an integral part of anaudit performed in accordance with Government Auditing Standards in considering Gulf CoastChildren's Advocacy Center, Inc.'s internal control over financial reporting and compliance.
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Panama City, FloridaSeptember 20, 2018
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Current Assets:
Cash and cash equivalents $ 99,714
Contracts and grants receivable 374,062
Prepaid expenses 43,621
Total current assets 517,397
Property and Equipment:
Land 318,078
Construction in progress - Marianna 56,331
Buildings 2,508,919
Building improvements 74,419
Furniture and equipment 355,384
Automobiles 32,435
3,345,566
Less accumulated depreciation (803,205)
Net property and equipment 2,542,361
Other Assets:
Loan fees, net of amortization 16,031
Deposits 6,866
Total other assets 22,897
Total Assets $ 3,082,655
Current Liabilities:
Accounts payable and accrued expenses $ 44,724
Insurance note payable 3,296
Deferred revenue 112,622
Line of credit 149,654
Current maturities of notes payable 32,772
Total current liabilities 343,068
Other Liabilities:
Notes payable, less current maturities 878,470
Total liabilities 1,221,538
Net Assets:
Unrestricted 1,857,955
Temporarily restricted 3,162
Total net assets 1,861,117
Total Liabilities and Net Assets $ 3,082,655
LIABILITIES AND NET ASSETS
See independent auditor's report and the accompanying notes.
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GULF COAST CHILDREN'S ADVOCACY CENTER, INC.
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2017
ASSETS
Revenues and other support:
Contributions $ 131,451 $ 131,451
In-kind contributions 23,200 23,200
Contracts and grants 2,385,548 2,385,548
Administration fees 132,824 132,824
United Way allocations 35,525 35,525
Interest income 9 9
Reimbursements 172,909 172,909
Building rent 78,298 78,298
Special events 391,736 $ 1,617 393,353
Miscellaneous 7,761 7,761
Net assets released from restrictions 4,455 (4,455) 0
Total revenues and other support 3,363,716 (2,838) 3,360,878
Expenses:
Program services 2,736,431 2,736,431
General and administrative 551,746 551,746
Total expenses 3,288,177 0 3,288,177
Change in net assets 75,539 (2,838) 72,701
Net assets, beginning of year 1,782,416 6,000 1,788,416
Net assets, end of year $ 1,857,955 $ 3,162 $ 1,861,117
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GULF COAST CHILDREN'S ADVOCACY CENTER, INC.
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2017
See independent auditor's report and the accompanying notes.
Unrestricted
Temporarily
Restricted Total
Cash Flows From Operating Activities:
Cash received from contracts and grants $ 2,422,930
Cash contributions received 131,451
Cash received from United Way 35,525
Interest received 9
Other operating receipts 704,686
Interest paid (47,306)
Cash paid to suppliers and employees (3,106,410)
Net cash provided by operating activities 140,885
Cash Flows From Investing Activities:
Purchase of capital additions (66,175)
Net cash used in investing activities (66,175)
Cash Flows From Financing Activities:
Net proceeds on line of credit 29,675
Payments on note payable (28,839)
Net cash provided by financing activities 836
Net change in cash and cash equivalents 75,546
Cash and cash equivalents, beginning of year 24,168
Cash and cash equivalents, end of year $ 99,714
Reconciliation of change in net assets to net cash
used in operating activities -
Change in net assets $ 72,701
Adjustments to reconcile change in net assets to
net cash provided by operating activities:
Depreciation 82,262
Amortization 2,308
(Increase) decrease in assets -
Contracts and grants receivable 62,520
Prepaid expenses 26,404
Deposits (410)
Employee receivable 721
Increase (decrease) in liabilities -
Accounts payable and accrued expenses (9,963)
Insurance note payable 3,296
Deferred revenue (98,954)
Total adjustments 68,184
Net cash provided by operating activities $ 140,885
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GULF COAST CHILDREN'S ADVOCACY CENTER, INC.
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2017
See independent auditor's report and the accompanying notes.
Salaries and related expenses $ 1,651,776 $ 203,385 $ 1,855,161
Accounting, auditing, and professional fees 500 38,150 38,650
Administration fees 132,824 132,824
Advertising 60 1,758 1,818
Advocacy/Awareness expense 31,716 31,716
Bad debt expense 6,643 6,643
Comprehensive family assessment 26,733 26,733
Direct client care 19,430 19,430
Dues and subscriptions 5,858 3,497 9,355
Employee benefits 124,434 8,130 132,564
Insurance 30,546 4,695 35,241
Interest 8,386 38,920 47,306
Janitorial 18,647 982 19,629
Landscape supplies 21,133 1,112 22,245
Medical services and supplies 158,422 158,422
Office and miscellaneous 47,396 12,915 60,311
Rent 149,323 864 150,187
Repairs and maintenance 28,033 1,475 29,508
Retirement 31,650 4,440 36,090
Sales tax 9 9
Special events 215,338 215,338
Telephone 43,858 1,467 45,325
Training 48,233 47 48,280
Travel 37,037 6,265 43,302
Utilities 35,644 1,876 37,520
Total expenses before amortization and depreciation 2,658,282 545,325 3,203,607
Amortization expense 2,308 2,308
Depreciation 78,149 4,113 82,262
Total expenses $ 2,736,431 $ 551,746 $ 3,288,177
Detection,
Support
Services
General
and
See independent auditor's report and the accompanying notes.
Intervention and
GULF COAST CHILDREN'S ADVOCACY CENTER, INC.
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED DECEMBER 31, 2017
Program
Services
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Total
ExpensesInvestigation Administrative
GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 1 – NATURE OF ORGANIZATION
Gulf Coast Children’s Advocacy Center, Inc. (the Organization) was established on September 9,
1999. The Organization serves to provide on-site agency collaboration and the use of the
multidisciplinary approach in prevention, investigation, assessment, protection, referral for
prosecution, and treatment of child abuse and neglect. The Organization coordinates and facilitates
treatment for child victims and their families. A substantial portion of funding for programs is
provided by the State of Florida Department of Health, the U.S. Department of Health and Human
Services, and the U.S. Department of Justice.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Gulf Coast Children’s Advocacy Center, Inc. have been prepared on
the accrual basis. The significant accounting policies followed are described below to enhance the
usefulness of the financial statements to the reader.
Cash and Cash Equivalents
The Organization considers all cash and highly liquid investments with original maturities of less
than three months to be cash equivalents.
Contracts and Grants Receivable
The Organization reports contracts and grants receivable at net realizable value. Management
determines the allowance for doubtful accounts based on historical losses and current economic
conditions. Management believes all receivables are collectible, therefore, no allowance for doubtful
accounts is provided in these financial statements.
Property and Equipment
Property and equipment is stated at cost for assets purchased and at fair value for assets donated.
Depreciation of equipment is provided over the estimated useful lives, generally five to seven years,
of the respective assets on a straight-line basis. The Organization capitalizes all property and
equipment purchases over $1,000 or property and equipment less than $1,000 that is required to be
tracked by the granting agency. Depreciation expense for the year ended December 31, 2017 was
$82,262.
Net Assets
Net assets can be categorized into one of the three following categories:
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Permanently restricted net assets
The part of the net assets of a not-for-profit organization resulting (a) from contributions and other
inflows of assets whose use by the Organization is limited by donor-imposed stipulations that neither
expire by passage of time nor can be fulfilled or otherwise removed by actions of the Organization,
(b) from other asset enhancements and diminishments subject to the same kinds of stipulations, and
(c) from reclassifications from (or to) other classes of net assets as a consequence of donor-imposed
stipulations.
Temporarily restricted net assets
The part of the net assets of a not-for-profit organization resulting (a) from contributions and other
inflows of assets whose use by the Organization is limited by donor-imposed stipulations that either
expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to
those stipulations, (b) from other asset enhancements and diminishments subject to the same kinds of
stipulations, and (c) from reclassifications to (or from) other classes of net assets as a consequence of
donor-imposed stipulations, their expiration by passage of time, or their fulfillment and removal by
actions of the Program pursuant to those stipulations.
Unrestricted net assets
The part of the net assets of a not-for-profit organization that is neither permanently restricted nor
temporarily restricted by donor-imposed stipulations.
Advertising
Advertising costs are expensed as incurred. Advertising costs incurred during the year ended
December 31, 2017 were $1,818.
Contributed Services
Contributed goods and services are recorded as support and expense in the accompanying financial
statements at their fair value in the period of receipt. Services provided by the Board of Directors are
considered a philanthropic activity and are generally not recorded; therefore, the value of contributed
time is not reflected in these financial statements.
Income Taxes
Gulf Coast Children’s Advocacy Center, Inc. has qualified as an exempt organization for federal
income tax purposes under Internal Revenue Code Section 501(c)(3) and is not classified as a private
foundation. However, the Organization may be subject to income taxes on unrelated business
income. The Organization had no unrelated business income during the year ended December 31,
2017. Consequently, no provision for income taxes has been made in these financial statements.
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use of Estimates
The preparation of financial statements in conformity with 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.
NOTE 3 – CONTRIBUTIONS
The Organization reports gifts of cash and other assets as restricted support if they are received with
donor stipulations that limit the use of the donated assets. When a donor 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. Those restricted gifts that are received and whose restriction is
accomplished in the same year are reported as unrestricted support.
The Organization reports gifts of land, buildings, and equipment as unrestricted support unless
explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets
with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets
that must be used to acquire long-lived assets are reported as restricted support. Absent explicit
donor stipulations about how long those long-lived assets must be maintained, the Organization
reports expirations of donor restrictions when the donated or acquired long lived assets are placed in
service.
NOTE 4 – CONTRACTS AND GRANTS RECEIVABLE
Contracts and grants receivable at December 31, 2017 consist of the following:
Child Protection Teams $ 24,626
Florida Council Against Sexual Violence 23,532
Florida Network for Children’s Advocacy Centers 33,911
Sexual Abuse Treatment Program (SATP) 742
State of Florida – Victims Compensation 54,447
Bay, Franklin, Gulf Healthy Start Coalition, Inc. 19,172
Victims of Crime Act (VOCA) Grant 133,401
Other 84,231
Total contracts and grants receivable $ 374,062
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 5 – OPERATING LEASES
Lessee
On July 1, 2017, the Organization renewed its lease agreement with the Department of Children and
Families for the use of office space located in Marianna, FL. The lease is for a period of one year
and expires on June 30, 2018. There is no rent on this space because it is a state owned building and
utilized by the Department of Children & Families; however, the monthly costs of maintaining the
space are more than usual in rented space because staff have to purchase and pay for janitorial, lawn
maintenance, repairs, pest control and other commodities and/or services that are normally paid for
by the landlord. For the year ended December 31, 2017, quarterly costs were $2,247 for January
through June and $1,008 for July through December.
The Organization entered into an operating lease agreement on June 26, 2012 with Donald and
Sharon Harrell for the use of office space located in Chipley, FL. The lease is for a period of 5 years
beginning on July 1, 2012 and expiring on June 30, 2017 with an option to renew for an additional
ten (10) one-year periods. The terms of the lease include a 3% increase in the monthly rent payment
each year. The Organization renewed its lease agreement with Donald and Sharon Harrell for an
additional ten (10) one-year periods beginning on July 1, 2017 and expiring on June 30, 2027. For
the year ended December 31, 2017, monthly rent payments were $1,250 for January through June
and $1,288 for July through December.
The Organization entered into an operating lease agreement on March 10, 2016 with G.E. Rich and
Associations, LLC for the use of office space located in Bonifay, FL. The lease is for a period of two
and a half years beginning on March 15, 2016 and expiring on September 30, 2018. For the year
ended December 31, 2017, monthly rent payments were $875.
The Organization entered into an operating lease agreement on March 8, 2016 with Railroad
Properties North, LLC for the use of office space located in Chipley, FL. The lease is for a period of
two and a half years beginning on March 15, 2016 and expiring on September 30, 2018. For the year
ended December 31, 2017, monthly rent payments were $600.
The Organization entered into an operating lease agreement on September 28, 2016 with Panhandle
Medical Group, LLC for the use of office space located in Chipley, FL. The lease is for a period of
three years beginning on October 1, 2016 and expiring on September 30, 2019. For the year ended
December 31, 2017, monthly rent payments were $1,500.
The Organization entered into an operating lease agreement on June 1, 2017 with MAIX2 LLC for
the use of office space located in Chipley, FL. The lease is for a period of three years beginning on
June 1, 2017 and expiring on May 31, 2020. For the year ended December 31, 2017, monthly rent
payments were $2,450.
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 5 – OPERATING LEASES (Continued)
The Organization entered into an operating lease agreement on March 1, 2018 with Daniel E. Ryals
for the use of office space located in Blountstown, FL. The lease is for a period of one year
beginning on March 1, 2018 and expiring on February 28, 2019, in which the agreement will revert
to a month to month lease renewing on the first day of each month. For the year ended December 31,
2017, monthly rent payments were $900.
Future minimum rental payments according to the lease agreements are as follows:
2018 $ 92,007
2019 52,656
2020 29,900
Total $ 174,563
Operating lease expense for the year ended December 31, 2017 totaled $97,384.
Lessor
On September 14, 2016, the Organization renewed the non-cancellable sublease agreement with the
Department of Children and Families for the use of the Organization’s office space in Panama City,
FL. The renewed lease is for a period of five years beginning February 1, 2017 and expiring on
January 30, 2022. For the year ended December 31, 2017, the monthly rental income was $4,419 for
January through March and $1,627 for April through December.
Operating lease income for the year ended December 31, 2017 totaled $27,895.
Future minimum rental payments to be received are as follows:
2018 $ 20,054
2019 20,652
2020 21,270
2021 20,075
2022 1,830
Total $ 83,881
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 6 – CONCENTRATIONS AND CREDIT RISKS
The Organization received 66% of its revenues and other support from contracts and grants from the
State of Florida, a federal agency, or pass through entity. If a significant reduction in this level of
support were to occur, it would have a material effect on the Organization’s activities.
The Organization maintains cash balances at financial institutions located in Bay County, Florida.
The balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At
December 31, 2017, the Organization had no uninsured cash balances.
NOTE 7 – FUNCTIONAL ALLOCATION OF EXPENSES
The costs of providing program services and activities have been summarized on a functional basis
in the statement of activities. Accordingly, certain costs have been allocated among the programs
and supporting services benefited.
NOTE 8 – PENSION PLAN
The Organization maintained a 403(b) pension plan, which covers all eligible employees. The
Organization may elect annually to contribute to the plan on behalf of the employees. For the year
ended December 31, 2017, employer contributions made were $36,090.
NOTE 9 – INSURANCE NOTE PAYABLE
Gulf Coast Children's Advocacy Center, Inc. contracted with AFCO Insurance Premium Finance to
finance insurance premiums for the year ended December 31, 2017. The note is secured by the
policy premiums and bears an annual interest rate of 1.9%. The note is payable in nine monthly
installments of $767. The entire outstanding principle balance and remaining interest of $3,296 is
due within one year.
NOTE 10 – NOTE PAYABLE
Notes payable are summarized as follows:
As of December 31, 2017
Due in Due After
One Year One Year
Note payable, interest at 4.5%, due in monthly
installments of $6,140, collateralized by building,
matures March 2026. $ 32,772 $ 878,470
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2017
NOTE 10 – NOTE PAYABLE (Continued)
Maturities of notes payable for the next five years are as follows:
2018 $ 32,772
2019 34,310
2020 35,800
2021 37,577
2022 39,327
Thereafter 731,456
Total $ 911,242
NOTE 11 – SUPPLEMENTARY DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid during the year for:
Interest $ 47,306
NOTE 12 – SUBSEQUENT EVENTS
The Organization did not have any subsequent events requiring disclosure or recording in these
financial statements through September 20, 2018, which is the date these financial statements were
issued.
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Tipton, Marler, Gamer &£ Chastam-The CPA Group Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
Board of Directors
Gulf Coast Children's Advocacy Center, Inc.Panama City, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of Gulf CoastChildren's Advocacy Center, Inc. (a nonprofit organization), which comprise the statement offinancial position as of December 31, 2017, and the related statements of activities and cash flows forthe year then ended, and the related notes to the financial statements, and have issued our reportthereon dated September 20, 2018.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Gulf CoastChildren's Advocacy Center, Inc.'s internal control over financial reporting (internal control) todetermine the audit procedures that are appropriate in the circumstances for the purpose of expressingour opinion on the financial statements, but not for the purpose of expressing an opinion on theeffectiveness of Gulf Coast Children's Advocacy Center's Inc.'s internal control. Accordingly, we donot express an opinion on the effectiveness of Gulf Coast Children's Advocacy Center, Inc.'s internalcontrol.
A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent,or detect and correct, misstatements on a timely basis. A material ~weahiess is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that amaterial misstatement of the entity's financial statements will not be prevented, or detected andcorrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,in internal control that is less severe than a material weakness, yet important enough to meritattention by those charged with governance.
501 West 19th Street
Panama City, Florida 32405(850) 769-9491 • Fax: (850) 785-9590
vvw\\'.cpagroup.com -14-
600 Grand Panama Blvd., Suite 360
Panama City Beach, Florida 32407(850) 233-1360 • Fax: (850) 233-1941
\v\\'\v.cpagroup.com
Our consideration of internal control was for the limited purpose described in the first paragraph ofthis section and was not designed to identify all deficiencies in internal control that might be materialweaknesses or significant deficiencies. Given these limitations, during our audit we did not identifyany deficiencies in internal control that we consider to be material weaknesses. However, materialweaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Gulf Coast Children's Advocacy Center,Inc.'s financial statements are free from material misstatement, we performed tests of its compliancewith certain provisions of laws, regulations, contracts, and grant agreements, noncompliance withwhich 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 ouraudit, and accordingly, we do not express such an opinion. The results of our tests disclosed noinstances of noncompliance or other matters that are required to be reported under GovernmentAuditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of theorganization's internal control or on compliance. This report is an integral part of an audit performedin accordance with Government Auditing Standards in considering the organization's internal controland compliance. Accordingly, this communication is not suitable for any other purpose.
T^^, M ^ n---^ CLUX-Panama City, FloridaSeptember 20, 2018
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Tipton, Marler, Gamer & Chastain-The CPA Group Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJORPROGRAM AND PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCEREQUIRED BY THE UNIFORM GUIDANCE, THE FLORIDA SINGLE AUDIT ACT
(FLORIDA STATUTE 215.97) AND CHAPTER 10.650 OF THE RULES OF THE AUDITORGENERAL OF THE STATE OF FLORIDA
Board of Directors
Gulf Coast Children's Advocacy Center, Inc.Panama City, Florida
Report on Compliance for Each Major Federal Program and State Project
We have audited Gulf Coast Children's Advocacy Center, Inc.'s (the Organization) compliance withthe types of compliance requirements described in the 0MB Compliance Supplement that could havea direct and material effect on each of Gulf Coast Children's Advocacy Center, Inc.'s major federalprograms and state projects for the year ended December 31, 2017. The Organization's major federalprograms and state projects are identified in the summary of auditor's results section of theaccompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal and state statutes, regulations, and the termsand conditions of its federal awards and state financial assistance applicable to its federal programsand state projects.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the Organization's majorfederal programs and state projects based on our audit of the types of compliance requirementsreferred to above. We conducted our audit of compliance in accordance with auditing standardsgenerally accepted in the United States of America; the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance); the Florida Single Audit Act (Florida Statute 215.97) and Chapter 10.650 of the Rules of
501 West 19th Street
Panama City, Florida 32405(850) 769-9491 • Fax: (850) 785-9590
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600 Grand Panama Blvd., Suite 360
Panama City Beach, Florida 32407(850) 233-1360 • Fax: (850) 233-1941
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the Auditor General of the State of Florida. Those standards and the Uniform Guidance require thatwe plan and perform the audit to obtain reasonable assurance about whether noncompliance with thetypes of compliance requirements referred to above that could have a direct and material effect on amajor federal program or state project occurred. An audit includes examining, on a test basis,evidence about the Organization's compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each majorfederal program and state project. However, our audit does not provide a legal determination of theOrganization's compliance.
Opinion on Each Major Federal Program and State Project
In our opinion, the Organization complied, in all material respects, with the types of compliancerequirements referred to above that could have a direct and material effect on each of its majorfederal programs and state projects for the year ended December 31, 2017.
Report on Internal Control Over Compliance
Management of Gulf Coast Children's Advocacy Center, Inc. is responsible for establishing andmaintaining effective internal control over compliance with the types of compliance requirementsreferred to above. In planning and performing our audit of compliance, we considered theOrganization's internal control over compliance with the types of requirements that could have adirect and material effect on each major federal program and state project to determine the auditingprocedures that are appropriate in the circumstances for the purpose of expressing an opinion oncompliance for each major federal program and state project and to test and report on internal controlover compliance in accordance with the Uniform Guidance, The Florida Single Audit Act (FloridaStatute 215.97), and Chapter 10.650 of the Rules of the Auditor General of the State of Florida butnot 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 the Organization's internal controlover compliance.
A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal coiirse of performing theirassigned functions, to prevent, or detect and correct, noncompliance with a type of compliancerequirement of a federal program or state project on a timely basis. A material weakness in internalcontrol over compliance is a deficiency, or a combination of deficiencies, in internal control overcompliance, such that there is a reasonable possibility that material noncompliance with a type ofcompliance requirement of a federal program or state project will not be prevented, or detected andcorrected, on a timely basis. A significant deficiency in internal control over compliance is adeficiency, or a combination of deficiencies, in internal control over compliance with a type ofcompliance requirement of a federal program or state project that is less severe than a materialweakness in internal control over compliance, yet important enough to merit attention by thosecharged with governance.
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Our consideration of internal control over compliance was for the limited purpose described in thefirst paragraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies. We did not identify anydeficiencies in internal control over compliance that we consider to be material weaknesses.However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of ourtesting of internal control over compliance and the results of that testing based on the requirements ofthe Uniform Guidance, The Florida Single Audit Act (Florida Statute 215.97), and Chapter 10.650 ofthe Rules of the Auditor General of the State of Florida. Accordingly, this report is not suitable forany other purpose.
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Panama City, FloridaSeptember 20, 2018
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS – FEDERAL
AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2017
A. SUMMARY OF AUDITOR’S RESULTS
1. The auditor’s report expresses an unqualified opinion on the Gulf Coast Children’s Advocacy
Center, Inc. basic financial statements.
2. No significant deficiencies in internal control were disclosed during the audit of the financial
statements in the Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed
in Accordance with Government Auditing Standards.
3. No instances of noncompliance material to the financial statements of Gulf Coast Children’s
Advocacy Center, Inc. were disclosed during the audit.
4. No significant deficiencies relating to the audit of the major federal programs or state projects
were reported in the Independent Auditor’s Report on Compliance for Each Major Program and
Project and on Internal Control Over Compliance Required by the Uniform Guidance, The
Florida Single Audit Act (Florida Statute 215.97) And Chapter 10.650 of the Rules of the
Auditor General of the State of Florida.
5. The auditor’s report on compliance with requirements that could have a direct and material effect
on each major program or project for the Gulf Coast Children’s Advocacy Center, Inc. expresses
an unqualified opinion.
6. Our audit disclosed no findings required to be reported in accordance with 2 CFR Section
200.516(a) or Rules of Auditor General 10.654(1)(g).
7. The programs and projects tested as major programs and projects consisted of the following:
Federal Major Programs:
CFDA #16.589 – Rural Domestic Violence, Sexual Assault and Stalking Assistance Program
CFDA #93.667 – Medical Services for Abused and Neglected Children, Child Protection Team
and Sexual Abuse Treatment Program
Dollar threshold for distinguishing between Type A and Type B programs was $750,000 for
major federal programs.
The auditee did not qualify as a low-risk auditee
State Major Projects:
CSFA #64.006 – Medical Services for Abused and Neglected Children
CSFA #22.016 – Florida Network of Children Advocacy Centers
Dollar threshold for distinguishing between Type A and Type B projects was $236,733 for major
state projects.
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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS – STATE PROJECTS
YEAR ENDED DECEMBER 31, 2017
B. FINANCIAL STATEMENT FINDINGS
There were no material weaknesses or instances of noncompliance related to the financial
statements.
C. FEDERAL AWARD AND STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS
There were no audit findings related to federal awards required to be reported by 2 CFR Section
200.516(a).
There were no audit findings related to state financial assistance required to be reported by Rules of
the Auditor General 10.654(1)(g).
D. STATUS OF FEDERAL AWARDS AND/OR STATE FINANCIAL ASSISTANCE PRIOR YEAR FINDINGS
There were no findings related to prior year federal awards and/or state financial assistance.
E. OTHER MATTERS
1. No management letter is required because there were not findings required to be reported in the
management letter.
2. No Summary Schedule of Prior Audit Findings is required because there were no prior audit
findings related to federal programs and/or state financial assistance.
3. No Corrective Action Plan is required because there were no findings required to be reported by
2 CFR Section 200.516(a) or Rules of the Auditor General 10.654(1)(g).
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CFDA/ Contract/
CSFA Grant
No. No.
Federal
U.S. Department of Justice
Passed through Florida Office of Attorney General
Victims of Crime Act 16.575 VOCA 2016-00824 $ 288,764
Victims of Crime Act 16.575 VOCA 2017-00446 133,401
Passed through Florida Network for Children's Advocacy Centers, Inc.
Support of Children's Advocacy Centers 16.758 PANA-FL-DS17 7,000
Passed through Florida Council Against Sexual Violence
Rural Domestic Violence, Sexual Assault and Stalking Assistance Program 16.589 * 15RUR01 141,090
Total U.S. Department of Justice 570,255
U.S. Department of Health and Human Service
Passed through Florida Department of Health
Social Services Block Grant - Child Protection Team 93.667 * CPX2A 363,917
Passed through Bay, Franklin, Gulf Health Start Coalition, Inc.
Health Resources and Services Adm. 93.994 GCCAC01 2017-2018 74,853
Medicaid Assistance Payments 93.778 GCCAC01 2017-2018 90,024
Maternal, Infant and Early Childhood Home Visiting 93.505/93.870 D89MC28265/X10MC29478 107,600
Total U.S. Department of Health and Human Service 636,394
Total Expenditures of Federal Awards $ 1,206,649
State of Florida
Florida Department of Health
Medical Services for Abused and Neglected Children (CPT) 64.006 * CPX2A $ 278,103
Medical Services for Abused and Neglected Children (SATP) 64.006 * CSBPC 32,826
Total Department of Health 310,929
Florida Council Against Sexual Violence
Rape Crisis Centers 64.069 16TFGR25 137,625
Rape Crisis Program Trust Fund 64.061 16TFGR25 78,538
Total Florida Council Against Sexual Violence 216,163
Office of the Attorney General
Passed through Florida Council Against Sexual Violence
Rape Crisis Centers 41.010 16OAG25 18,722
Rape Crisis Centers 41.010 17OAG25 12,296
31,018
Office of the State Court Administrator
Passed through Florida Network for Children's Advocacy Centers, Inc.
FL Network of Children Advocacy Centers 22.016 * CAC-04 16/17 82,657
FL Network of Children Advocacy Centers 22.016 CAC-04 16/17 (CPT) 20,733
FL Network of Children Advocacy Centers 22.016 * CAC-04 17/18 116,500
FL Network of Children Advocacy Centers 22.016 CAC-04 17/18 (CPT) 11,111
Total Office of the State Court Administrator 231,001
Total Expenditures of State Financial Assistance $ 789,111
*denotes major program/project
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
See independent auditor's report.
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GULF COAST CHILDREN'S ADVOCACY CENTER, INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND
STATE FINANCIAL ASSISTANCE
YEAR ENDED DECEMBER 31, 2017
ExpendituresFederal Programs/State Project
Pass-through Entity
Federal/State Agency
GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AND STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2017
NOTE A – BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards and state financial assistance (the
Schedule) includes the federal award and state financial assistance activity of Gulf Coast Children's
Advocacy Center, Inc. under programs of the federal government and projects under the State of
Florida for the year ended December 31, 2017. The information in this Schedule is presented in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) and the Florida Single Audit Act (Florida Statute 215.97). Because the
Schedule presents only a selected portion of the operations of Gulf Coast Children's Advocacy
Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or
cash flows of Gulf Coast Children's Advocacy Center, Inc.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance and
Chapter 10.650, Rules of the Auditor General, wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
NOTE C – INDIRECT COST RATE
Gulf Coast Children's Advocacy Center, Inc. records expenditures of federal awards and state
financial assistance using the direct cost method and the 10% de minimis indirect cost rate
depending on which is allowable by the grantor, both of which are allowed in accordance with the
Uniform Guidance.
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