iii harrington group - app1.lla.state.la.usapp1.lla.state.la.us/publicreports.nsf/2d9a8a32abe...iii...
TRANSCRIPT
III Harrington Group Certified Public Accountants LLP
COMMUNITY DEVELOPMENT INSTITUTE HEAD START
FINANCIAL STATEMENTS, SUPPLEMENTAL SCHEDULE,
and ADDITIONAL INFORMATION
JUNE 30, 2013
Under provisions of state law this report is a public document Acopy of the report has been submitted to the entity and other appropnate pubitc officials The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and where appropnate. at the office of the parish clerk of court
Release Date JAM 2 9 2QH
PASADENA ATrusted Nonprofit Partner SAN FRANCISCO 234 E Colorado Blvd SO Francisco St
Suite MI50 Experience Service Respect Suite 160 Pasadena C A 9 I I 0 I San Francisco CA 94133 T.I (.-it. ^ 7 Aen I WWW npocpas com ^ , ' - " ' - " " ' ^^ Tel 6264036801 ^ ^ Tel 415391 3131 Fax 626 403 6866 Fax 415 391 3233
C O N T E N T S
Independent Auditors' Report 1- 2
Statement of Financial Position 3
Statement of Activiues 4
Statement of Functional L'lxpcnscs 5
Statement of Cash Flows 6
Notes to Financial Statements 7-12
Supplemental Schedule
Schedule of Expenditures of Federal and Non-federal Awards 13-15
Additional Informauon
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 Govemment AudtUng Standards 16
Independent Auditors* Report on Compliance for Each Major Program and on Internal Control Over Comphance Required by OMB Circular A-133 17-18
Schedule of Findings and Questioned Costs 19
Ill Harrington Group Certified Pubtic Accountants, LLP
I N D E P E N D E N T A U D I T O R S ' R E P O R T
To the Board of Directors Commumty Development Institute Head Start
Report on the Fmancia l Statements
We have audited the accompanving financial statements of Communit\' Development Institute Head Start (a nonprofit organizauon), which comprise the Statement of Fmancial Position as of June 30, 2013, and the related Statements of Activities, Functional Expenses, and Cash Flows for the vcar then ended, and the related notes to the financial statements
Managemen t ' s Responsibility for the Financial Statements
Management is responsible for the preparauon and fair presentation of these financial statements in accordance with accountmg prmciples generally accepted in the United States of America, this mcludes the design, implementation, and maintenance of mternal control relevant to the preparation and fair presentauon of financial statements that are free from material misstatement, whether due to fraud or error
Auditors ' Responsibility
Our rcsponsibilit)- is to express an opinion on these financial statements based on our audit We conducted our audit m accordance with audiung standards generally accepted in the Umtcd States of America and the standards apphcable to financial audits contamed in Govemment Auditing Standanis, issued by the Comptroller General of the Umted States Those standards require that wc plan and perform the audit to obtam reasonable assurance about whether the fmancial statements are free of 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 matenal misstatement of the financial statements, whether due to fraud or error In makmg those risk assessments, the auditors' consider mternal control relevant to the entity's preparation and fair presentation of the fmancial statements in order to design audit procedures that are appropriate m the circumstances, but not for the purpose of expressing an opimon on the effectiveness of the entit\-'s intemal control Accordmgly, we express no such opinion An audit also mcludes evaluatmg the appropriateness of accounting policies used and the reasonableness of sigmficant accountmg estimates made b\ management, as well as evaluating the overall presentation of the fmancial statements
We beheve that the audit e\idence we have obtained is sufficient and appropriate to provide a basis for our audit opimon
o p i n i o n
In our opimon, the financial statements referred to above present fairlv, m all matenal respects, the fmancial position of Communm Development Insutute Head Start as of June 30, 2013, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting pnnciples generallv accepted in the Umted States of America
PASADENA ATrusted Nonprofit Partner SAN FRANCISCO 234 E Colorado Blvd 50 Francisco St Suite MI50 Expe r i ence Serv ice Respect Suite 160 Pasadena CA 91101 San Francisco CA 94133 Tel6264036801 WWW npocpas com ^^^ 4,53913(31
Fax 626 403 6866 Fax 415 391 3233
I N D E P E N D E N T A U D I T O R S ' R E P O R T conanued
Other Matters
Other Information
Our audit was conducted for the purpose of forming an opimon on the financial statements of Commumt)-Development Institute Head Start as a whole The accompanymg Schedule of Expenditures of Federal and Non-federal Awards, as required by Office of Management and Budget Circular A-133, Audits of States, hotai Govemments, and Non-Profit Or^anit;ations is presented for purposes of addmonal analysis and is not a required part of the fmancial statements Such information is the rcsponsibihty of management and was denved from and relates directly to the underlymg accounung and other records used to prepare the financial statements The mformation has been subjected to the auditmg procedures applied in the audit of the financial statements and certam additional procedures, including comparmg and reconciling such information directly to the underlymg accountmg and other records used to prepare the financial statements or to the fmancial statements themselves, and other addmonal procedures in accordance u-ith auditmg standards generally accepted in the Umted States of Amenca In our opimon, the mformauon is fairly stated, in all material respects, in relation to the financial statements as a whole
Summant^d Comparative Information
We have previouslv audited Community Development Institute Head Start's 2012 financial statements, and our report dated March 11, 2013 expressed an unmodified opimon on those financial statements In our opimon the summarized comparative information presented herein as of and for the year ended June 30, 2012, IS consistent, m all matenal respects, with the audited financial statements from which it has been denved
Other Repor tmg Required by G o v e m m e n t A u d i o n g Standards
In accordance with Govemment Auditing Standards, we have also issued our report dated December 20, 2013 on our consideration of Communm' Development Institute Head Start's internal control over financial reportmg and on our tests of its comphance 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 testmg of internal control over financial rcporung and compliance and the results of that tesung, and not to provide an opimon on internal control over fmancial reportmg or on comphance That report is an integral part of an audit performed m accordance with Govemment Auditing Standards in considering Commumt)- Development Instimtc Head Start's internal control over financial reporting and compliance
San Francisco, Cabfornia December 20, 2013
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
S'lA'lEMENT OF FINANCIAL POSITION June 30, 2013
With comparauve totals at June 30, 2012
Assets Cash Accounts receivable Prepaid expenses
2013
2,008,881 8,796,493
194,234
2012
740,526
3,826,106
121,837
Total assets $ 10,999,608 $ 4,688,469
Liabilities and net assets Liabilities
Accounts payable Accrued liabilities (Note 3) Lmc of credit (Note 4)
52,138 $ 8,121,330
45,891 2,581,768
Total liabilities 8,173,468 2,627.659
Net assets Unrestricted 2,826,140 2,060,810
Total net assets 2,826,140 2,060,810
Total liabilities and net assets $ 10,999,608 S 4,688,469
The accompan\ing notes are an integral part of these financial statements 3
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
STATEMENT OF ACIIVITIES For the vcar ended June 30, 2013
With comparaQve totals for the vear ended |une 30, 2012
2013 2012
Revenue Fees from government agencies (Note 6) In-kind income (Note 8) Other mcome Parent fees
Total revenue
Expenses Program ser\-ices Management and general
Total expenses
Other changes Contract settlements
Change in net assets
Net assets, beginning of year
Net assets, end of year
$ 173,385,223 $ 155,974,199 21,608,520 13,712,395
113,407 151,471 70,212 147,246
195,177,362
177,355,184 16,655,840
194,011,024
(401,008)
765,330
2,060,810
169,985,311
154,554,568 14.436.512
168,991,080
(643,619)
350,612
1.710,198
$ 2,826,140 S 2,060,810
The accompanying notes are an integral part of these financial statements
4
C O M M U N I T Y D E V E L O P M E N T
I N S T I T U T E H E A D S T A R T
STATEMENT OF FUNCTION.-VL EXPENSES
For the year ended June 30, 2013
With comparative totals for the }car ended June 30, 2012
Salanes
Employee benefits
Pa\ roll taxes
Total personnel costs
In-kind expenses (Note 8)
Occupancy
Other
Food
Supplies
Repairs and maintenance
Delegate agreements
Child services
Trims porta Don
Utibnes
Eqiupment
Traimng
Insurance
Consultants
Contractual services
Telephone
Travel
Pubhcations
Pnnting
Total 2013 functional expenses
Total 2012 hmcnonal expenses
Program
Services
S 79,022,716
14,121,714
8,548,471
101,692,901
19,754,509
9,537,424
6,910,604
6,277,802
6,023,142
5,017,357
4,979,291
2,884,116
2,438,595
2,270,847
1,869,969
1,799,807
1,566,099
1,265,724
1,227,730
1,218,940
236,602
226,056
157,669
$ 177355,184
5 154,554,568
Management
and General
S 7,416,482
1,325,358
802,296
9,544,136
1,854,011
895,110
659,189
589,187
565,286
470,892
467,319
270,681
228,868
213,124
175,501
168,917
146,982
118,791
115,226
114,400
22,206
21,216
14,798
$ 16,655,840
$ 14,436,512
Total Expenses
2013
$ 86,439,198 5
15,447,072
9,350,767
111,237,037
21,608,520
10,432,534
7,569.793
6,866,989
6,588,428
5,488,249
5,446,610
3,154,797
2,667,463
2,483,971
2,045,470
1,968,724
1,713,081
1,384.515
1,342,956
1,333,340
258.808
247,272
172,467
$ 194,011,024
2012
77,625,674
14,533,858
7,948,015
100,107,547
13,712,395
8,911,044
7,056,129
7,386,480
4,481,583
3,876,041
6,004,118
2,862,686
2,788,688
2,786,142
1,176,843
2,163,048
1,173,054
1,491,850
1,259,478
1,359,716
17,006
193,756
183,476
168,991,080
'llic accompanying notes are an integral part of these financial statements
5
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
STATEMENT OF CASH I'l.OWS For the \ear ended June 30, 2013
With comparauve totals for the \ear ended June 30, 201:
2013 2012 Cash flows from operating activities:
Change m net assets Ad)ustments to reconcile changes m net assets to net cash provided (used) by opcraung acuvities Changes in operatmg assets and babihties
(Increase) decrease in accounts receivable (Increase) m prepaid expenses Increase (decrease) in accounts pa\ablc Increase in accrued babibties
(Decrease) in deferred revenue
Net cash provided (used) by operating activities
Net increase (decrease) in cash
Cash, beginmng of year
Cash, end of year
765,330 350,612
(4,970,387) (72,397)
6,247 5,539.562
1,268355
1,268355
740.526
$ 2,008,881 S
484,874 (108,026)
(1,979,181) 1,046,801
(40,016)
(244,936)
(244,936)
985,462
740,526
The accompanving notes are an integral part of these financml statements 6
C O M M U N I T Y D E V E L O P M E N T
I N S T I T U T E H E A D S T A R T
NOTES l O FINANCIAL STATEMENTS
Organizat ion
Commumt}' Development Instimte Head Start ("CDI-HS") is a pnvate, nonprofit corporauon with headquarters m Denver, Colorado CDI-HS works m partnership with an affibated nonprofit corporauon, Commumty Development Institute ("CDI") with headquarters m Denver, Colorado, as the recipient of grants for operauon of the local Head Start and Early Head Start programs under the National Intenm Management Contract funded by the Office of Head Start CDI-HS assumes operational responsibility for Head Start and Early Head Start programs when the exisung grantee is no longer able to administer the program CDI-HS works with the commumt\' to ensure that Head Start ser\*ices conunue uninterrupted for children and families Dunng the mtenm period, CDI-HS provides a strong infrastrucaire for fiscal mtegnty, staff development, and improved program ser\'ices
Summary of Sigmficant Accounung Pohcies
A summan' of the significant accounting pobcies appbcd in the preparation of the accompanying financial statements is as follows
Basis of Presentat ion
The accompanving financial statements have been prepared on the accrual basis of accounung
Account ing
To ensure obscr\'ance of certain constraints and restncuons placed on the use of resources, the accounts of CDI-HS are maintamed in accordance with the pnnciples of net asset accountmg This is the procedure by whicli resources for various purposes are classified for accounting and reporting purposes into net asset classes that are in accordance with specified activities or objecUves Accordmgly, all fmancial transactions have been recorded and reported bv net asset class as follows
Unres tnc ted These generalh result from revenues generated by receiving unrestricted contribuuons, providing ser\'ices, and performing admimstrative funcuons
Temporari ly Res tnc ted CDI-IIS reports gifts of cash and other assets as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets Wlicn a donor restricuon expires, that is, when a stipulated time restriction ends or the purpose of the restriction is accompbshed, temporarilv restncted net assets are reclassified to unrestricted net assets and reported in the Statement of Acmiues as net assets released from program or capital restncuons CDI-HS has no temporanh restricted net assets at June 30, 2013
Permanent ly Restricted These net assets are restncted b\ donors who supulate that resources are to be mamtained permanentlv, but permit CDI-HS to expend all of the income (or other econormc benefits) derived from the donated assets CDI-HS has no permanentlv restricted net assets at June 30, 2013
continued 7
C O M M U N I T Y D E V E L O P M E N T
I N S T I T U T E H E A D S T A R T
NOTES T O FINANCIAL S I A T E M E N I S
2. Summary of Significant Account ing Pohcies, continued
Accounts Receivable
The accounts receivable balance outstanding at June 30, 2013 consists of governmental contract receivables due from state and local granting agencies Therefore, no allowance for doubtful accounts has been provided
Concentrat ion of Credit Risks
CDI-MS places its cash and temporary* cash mvestments with liigh-credit, quabr\' financial institutions At times, such investments may be m excess of the Federal Deposit Insurance Corporauon insurance limit CDI-HS has not incurred losses related to these investments
The receivable balance outstanding at June 30, 2013 consists of govemment contract receivables due from state and local granting agencies ConcentraUon of credit risks with respect to trade receivables IS limited, as the majorit)- of CDI-HS' receivables consist of earned fees from contracts aw-arded by
governmental agencies
Approximatelv 89% of CDI-HS' total revenue is derived from governmental agencies
Donated Matenals , Facilities, and Services
Contribuuons of donated non-cash assets are measured on a non-recurnng basis and recorded at fair value m the penod received Contributions of donated ser\-ices that create or enhance non-fmancial assets or that require specialized skills, are provided by mdividuals possessmg those skills, and w^ould t^-pically need to be purchased if not provided by donation, are recorded at fair value in the period received For the vear ended June 30, 2013, CDI-HS received 521,608,520 in donated materials, faculties, and ser\'ices (see Note 8)
Fair Value Measurements
Generallv accepted accounting principles provide guidance on how fair value should be detennined when fmancial statement elements are required to be measured at fair value Valuation techniques are ranked in tliree levels depcndmg on the degree of objectiviiv of the mputs used with each level
Level 1 inputs - quoted pnces in active markers for identical assets 1 ,evel 2 inputs - quoted prices in active or inactive markers for the same or similar assets Level 3 inputs - estimates using the best information available uhen there is little or no market
CDI-HS IS required to measure donated materials and ser\Mces at fair value (See Note 9)
conunued 8
C O M M U N I T Y D E V E L O P M E N T
I N S T I T U T E H E A D S T A R T
NOTES T O FINANCIAL S TA TFMEN TS
Summary of Significant Account ing Pohcies, contmued
Income Taxes
CDI-HS IS exempt from taxauon under Internal Revenue Code SecUon 501(c)(3)
GeneralU accepted accounting prmciples provide accounting and disclosure guidance about positions taken by an organization in its tax returns that might be unccrtam Management has considered its tax posiuons and bebeves that all of the posiuons taken b\ CDI-HS in its federal exempt organizauon tax return are more bkely than not to be sustained upon exammation CDI-HS' remrns respectfully are subject to exarmnauon by federal authoriues, generallv for three \ears after they are filed
Funct ional Allocation of Expenses
Costs of providmg CDI-HS' programs and other activiues have been presented in the Statement of Funcuonal Expenses Shared costs are allocated among program and support serMces by a method that best measures the relative degree of benefit
Use of Es t imates
The preparation of financial statements in conformity with accountmg principles generally accepted in the United States of America requires management to make estimates and assumpuons that affect reported amounts of assets, liabibues, revenues, and expenses as of the date and for the penod presented Actual results could differ from those esumates
Comparat ive Tota ls
The financial statements mclude certain prior-year summarized comparative informauon m total but not by net asset class Such information does not include sufficient detail to constitute a presentation in conformit}- with accountmg pnnciples generally accepted in the United States of America, even though the accounts of CDI-HS are maintained m accordance with prmciples of net asset accounting Accordingly, such information should be read m conjuncuon with CDI-HS' fmancial statements for the year ended June 30, 2012, from which the summarized infonnation uas denved
Subsequent Events
Management has evaluated subsequent events through December 20, 2013, the date which the financial statements uere available
continued 9
COMMUNITY DEVELOPMENT INSTITUTE HEAD START
NOTES T O FINANCIAL STATEMENIS
3. Accrued Liabilities
Accrued babibties at June 30, 2013 consist of the following
Accrued expenses and pa\roll babibties — programs and delegates 56,571,142
Program transition bablbt^ 630,012 Accrued vacation 370,734 Accrued pavroll taxes and workers' compensauon msurance 353,752 Accrvied salaries 195.690
58.121.330
Line of Credit
CDI-HS has a line of credit with a bank, in the amount of $250,000, beanng interest at a vanable rate wluch is due May 27, 2014 The interest rate at June 30, 2013 was 5 25% The bank has a first pnont}' sccunt\^ mterest in all of CDI-HS' assets There was no outstandmg balance at June 30, 2013
Commi tmen t s and Cont ingencies
Obligat ions Under Opera t ing Leases
CDI-HS leases office space and equipment under operatmg leases with vanous terms Future rmmmum pavments, bv vear and m the aggregate, under these leases with initial or remaining terms of one year or more, consist of the following
Year ended June 30. 2014 5423,120 2015 289.296
5712.416
Rent expense for the vear ended June 30, 2013 was 510,432,534, which includes programs under operauonal responsibibt\
Contracts
CDI-HS' grants and contracts are subject to mspecuon and audit bv the appropriate goverrunental fundmg agencv The purpose is to determme whether program funds were used in accordance with their respective guidebnes and regulations The potential exists for disallowance of previoush-funded program costs The ultimate babdit\, if am, w-hich ma\ result from these governmental audits cannot be rcasonabh estimated and, accordinglv, CDI-MS has no provisions for the possible disallowance of program costs on its financml statements
continued 10
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
NOTIiS r o FINANCIAL ST ATEMEN TS
5. Commitments and Contingencies, contmued
Litigation
CDI-HS IS a defendant m various claims and lawsuits ansmg from the normal course of business Management intends to defend the agency vigorously in these matters It is not possible at this time to predict the probable ovitcome or the extent of CDI-HS' babibty, if am
6. Fees from Govemment Agencies
Fees from government agencies for the \ear ended June 30, 2013 consist of the following
Head Start programs 5164,279,653 Food program 7,629,813 State/local fundmg - Non-federal revenue 1.475.757
5173.385.223
7. Related Party Transactions
CDI-HS is affiliated with CDI rhe\ share a common Board of Directors and common upper management, but CDI does not possess the abibt}' to require that the majonty of the members of CDI-HS be appointed b\ CDI
Dunng the \ear ended June 30, 2013 CDI-HS paid CDI the following
I'Mscal administrauve scr\-ices for Head Stan grantees 55,338,141
8. In-kind Revenue and Expense
Head Start programs are required to provide matching non-federal funds for the operauon of programs This match appbes to regular Head Start and Earlv Head Start funds, as well as those received under the American Recover) and Reinvestment Act of 2009 Non-federal shares mclude donated cash and m-kind contnbuuons r\-pes of m-kind contnbutions mav include donated parent and commumt)' volunteer ume, discounted ser\'ices, discounted equipment, space, or transportaUon In-kmd contributions benefit the program directlv and are reflected in the Statement of Funcuonal Expenses (sec Note 9 for informauon on the recognized value ofthe in-kind contributions)
continued 11
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
NOTES TO FINANCIAL ST ATEMEN IS
Fair Value Measurements
The table below presents transacuons measured at fair \alue on a non-recurnng basis dunng the vear ended |une30, 2013
Contnbuted facilmes Contnbuted matenals Contnbuted ser\'ices
Fair value at June 30, 2013
The fair value of contnbuted ser\-ices, facibties, and matenals has been measured on a non-recurnng basis usmg quoted pnces for similar assets in inacuve markets (Level 2 mputs)
10. Subsequent Events
Subsequent to \ ear-end, CDI-HS amended its office lease to expand and mclude additional rentable space in its head quarters buildmg, and to extend the term of the lease with an ongmal end date of Fcbruaf)' 2015 to August 2017 The financial statements as of June 30, 2013 do not include any provision for the gam or loss ansmg from this transaction
I^vel I
s
5
Level 2
5 5,670,604 3,400,206
12.537.710
5-^1.608.520
S
1
l^vel3.
-
.
Total
$ 5,670,604 3,400,206
12.537.710
$21,608,520
12
SUPPLEMENTAL SCHEDULE
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
SCHEDULE OF EXFENDITUKES OF FEDERAL AND NON-FEDEXAL AWAKDS For the 7»u ended June 30,2013
Program Name Contract N o m b a
Federd CFDA
NumlKC Contiact
Te im Frogfam
Avaid Subrecipwilt Prognun
Fedcfal Award U S Dq»itnieiitofHeilthaiidHiiiiunSetncesfI>HHS'^
I>iecdy £tom DHHS> Head Suit Ouster Head Start (Abilene # ^ (a) Head Start (Atlaatic and Q ^ May Counties # 1) (ft) Euly Head Stait (Bainbeig Countr # 1) (f)
, Euly Head Stut(Daii]beig Countr # ^ (a) Head Start (BeaTcr CounQr, PA # 1) (lO Head Start (Beaver Coun^, PA # ^ (lO
Ibad Start (Brevard Coun^ # 2) (lO Head Start ^revard County # 3) (lO Head S u a CCential North East Puerto Rico # 1) (a) Head Start pdawaie Coun^ # ^ (•>) Head Start (Detroit - Wayne County # 1) (a) Head Start (DuPige County # 2) ( ^ Head Start (Eastern Riven # 7) (a) Head Start (Eastern Rivers # 8) (a) Head Start (E^cmatas & Solana Beach # 1} (a) Head Start (E^onatas & Solana Beach # 2} (a) Head Start (Central Virpma # 1} (a) Head Start (Cental Waahmgton EHS/HS # 1) (i^ Head Start (Central Waihmglon Migiant & SeaicMul # 1) ( ^ Head Start (Fbrt Green. BmoUyn # 2} (a) Head Start (Poedenck Qaunty # ^ (i^ Head Start ^etmantown & Lebgh Aiea ofFhladelphia # ^ (a) Head Start (Hampton Roads # 2) (lO Head Start (Hampton Roads # 3) (lO Head Start (Hdlandale # 2) (a) Head Start (New Planover Co N C # l } ( a ) Plead Start (tbemlle I^nah # 1) (a) Head Start (Ibemlle Puish # ^ (a) Head Start (Duval County, FL # 1) (a) Head Start ([efierscm Dans Pansh # 7) (a) Head Start ^ibd Eastern Cttlaboma # ^ (a) Head Start ^(adtson County # 2) (i^ Head Start ^ifoca San Sd»stian # 3} (lO Head Start (San Sebastian & Moca # 1) (lO Head Start (NbxuDe County, NQ # 1} ( ^ Head Start (Monroe Coun^, MI # ^ ( ^ Head Start (Mcmtgpmery Coun^, PA # 1} (a) Head Start (Nordieast Arkansas # fi) (a) Head Start (Nonheast Adansas # 7) (a) Head Start ^^oriheast Oklahoma # 1) (a) Head Start (Nordieast Oldahoma # 2) (a) Head Start (Nodheast Puerto Rico # 5) (a) Head Start (Nordieut Puerto Rico # ^ (lO Ibad Start (Nordiem San Eh^p Co # ^ ( a ) Head Stut piadie Grand Junctum # ^ (i^ Head Start pt terTail & Wadena Counties, # 1) (i^ PieadStartPuachitaPuish.LA# 1) (a) Piead Start (Pme BhifF# 2) (a) Head Start (Pine Bhiff # 3) (a) Head Start (Ihndlas County # 1) (sO Piead Start (Rndlas County # 2$ (i^ Plead Start (San Gabnd Valley # 1) (a) Plead Start (San Gabnd Valley # 2) (a) Piead Start (San Pnmciaco # 1) ( i ) Piead Start (San Juan, Vuem Rico # 1) (i^ Plead Start (San Juan, Puerto Rico # 2 (a) Piead Start (Soudi Los Angdes Co # ^ (a) Piead Start ^outfa St Louts # ^ (a) Piead Start QSoudi St Louis # ^ (a) Piead Start ^outfa Central Kansas # 2} (a) Plead Start ^ d i Central Kansas # 3) (a) Plead Start (Soudieast Texas # 2) (lO Piead Stan (Soudi Veniioot& Green Meadows # 1) (a)
' Piead Start (Soudi VermontAc Green Meadows # 2) ( ^ Piead Start ^oudi Vermont & Green Meadows # 3) (a) Piead Start (Southwest Arkansas # 1) (a) Plead Start ^oudiem Alameda County # 1) (i^ Head Start (Tecumseh, OK # 1) (a) Head Start (Te^as Winte^giuden # ^ (lO Head Start ( Tn R ^ o n of Adkansas # 1) (lO Head Start ( Tn Regfcn of AAansu # ^ (lO Plead Stan (Waukegan, IL # 1) (a) Ibad Start (Webster Ave, Bioiix, NY # 1 (a) Head Start (Weld Co Migrant & Seasonal #3} (a) Head Start (Wdhams County # 1) (lO Head Start (Wilhams County # 2) (a)
Sob-total d u e c ^ fiom DHHS - Head Start Qui ter
Pass-thmu^ Office of Human AfGuo, Viipma Head Start (OPIA, Vii^ni^ (a^
90CH0059/a2 90CH0096/01 90CH0067/01 90CH0067/02 90CH0076/01 90CH0076/02 90CHD062/02 90CH0062/03 90CH0093/O1 90CHD065/a2 90CH0084/01 <)0CH0060/02 90CH0008/06 9OCH00O8/07 90CHD081/01 90CH0081/02 90CH0094/01 90CH0099/01 90CH0101/01 9OCH0O72/02 90CH0069/02 90CH0aS5/03 90Cm070/02 90CH0070/03 90CHD061/02 90CH0091/01 90CH0080/01 90CHn080/a2 90CH0097/01 90CH0035/05 90CH0066/02 90CH0068/Q2 90CH0054/03 90CH0092/01 90CH0O78/01 90CH0078/02 90CH0102/01 90CHa029/06 9OCH0O29/O7 90CHa086/01 90CHIX»6/02 90CH0Q38/05 90CEI0038/06 90CH0046/04 90CH0048M 90CH008g/01 90CH0090/01 90CH0073/02 90CH0073/03 90CH0082/01 90CH0082/02 90CH0077/01 90CH0077/0!! 90CH0100/01 90CHDO75/01 90CH0O75/02 90aK)049/04 90CH00«!/M 90CH0042/QS 90CH007V02 90CH007V03 90CH0063/Q2 90CH0O74/01 90CHDO74/02 90CH0074/03 90CH0095/01 90CH0098/01 90CH0087/01 90CHD043/04 90CH0079/01 90CH0079/02 90CH0085/01 90CH0089/01 90a«)05«/03 90CH0a83/01 90CH0083/02
93600 93600 93600 93600 93600 93600 93600 93600 9360O 93600 93709 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600 93600
05/01/11 -04/30/12 04/01/13-03/31/14 02/01/11 -01/31/12 02/01/12-01/31/13 09/01/11-08/31/12 09/01/12-08/31/13 08/01/11-07/31/12 08/01/12-07/31/13 11/1/12-10/31/13
01/01/12-12/31/12 07/01/12-06/30/13 07/01/11-06/30/12 12/01/11-11/30/12 12/01/12-11/30/13 06/01/12-05/31/13 06/01/13-05/31/14 12/01/12-11/30/13 06/01/13 -10/31/13 06/01/13-12/31/13 04/01/12-03/31/13 02/29/12-02/28/13 12/07/11 -12/06/12 03/07/12-03/06/13 03/07/13-03/06/14 07/01/11-06/30/12 09/28/12-09/27/13 05/01/12-04/30/13 05/01/13-04/30/14 04/01/13-03/31/14 12/01/11-11/30/12 01/01/12-12/31/12 03/01/12-02/28/13 09/01/11 -08/31/12 10/01/12-09/30/13 01/01/12-12/31/12 01/01/13-12/31/13 06/01/13-01/31/14 06/01/12-05/31/13 06/01/13-05/31/14 06/01/12-05/31/13 06/01/13-05/31/14 05/01/12-04/30/13 05/01/13-04/30/14 09/11/11-09/10/12 11/07/11-11/06/12 08/01/12-07/31/13 09/30/12-09/29/13 04/01/12-03/31/13 04/01/13-03/31/14 06/01/12-05/31/13 06/01/13-05/31/14 10/01/11-09/30/12 10/01/12-09/30/13 06/01/13-05/31/14 09/01/11-08/31/12 09/01/12-08/31/13 03/01/12-02/28/13 08/31/11-08/30/12 08/31/12-08/30/13 02/29/12-02/28/13 03/01/13-02/28/14 08/12/11-08/11/12 05/01/11-04/30/12 05/01/12-04/30/13 05/01/13-07/31/13 12/15/12 -12/14/13 05/01/13-08/30/13 09/01/12-08/31/13 07/21/11-07/20/12 02/01/12-01/31/13 02/01/13-01/31/14 08/01/12-07/31/13 09/30/12-09/29/13 01/01/12 -12/31/12 06/01/12-05/31/13 06/01/13-05/31/14
t 4,497,554 5,380318
526,298 310,420
5,103,935 4,421,593
6,130,054 1,079,319 7,807,687 1,161,652 50,495,648 5,050;5Z7
615,970 583,991
3,091333 2,338,613 2,486,907 2,782,576 2,989,077
1,341,941 1,138,185 4i842,538 7,869,120 2,395,475 843,686
1,899377 2379,426 2330,419
14,444369 1,1101448 2,054,751
852,673 594,755 658,136
2,409304 1,168365 2,166359 7364,695 1,069,497 3304342 3,021,020
10,449330 9314321
4,179300 477,719
1311,101 1,008320
2,783,057 879387
14367,764 1,127379
14,748,487 I I 3 6 I 3 4 4 12,942,411 3381,023 2,664,165
8383397 820489 731,195
1378394 455321
4,479,651 9378,856 6,165650 2,911360 2,677334 3,674,486
!tS5313 5,127,422 9,101,976 4312,076
975,790 1366317 784,992
1,442330 1.713.493
329347303
329347303
i 3 « 1388,011
159
728,947 4312,079
220;002 1337,723 4309,717
95,730 46,622373
16,423 208348 385,419
2,367,106 100337
1,485352 331,062 540302
275,647
695,927 3338,440
864,087
1,561392 2,180,776
254387 4,065,652 215,036 119,481
343O6 471383
1,157,794 1,163,556
49305 6381371
246,631 3,(^5343
89387 8378342 1,665,909
520348 34,411
1,174308 567,034
232I3O8 543,982
12,454,062 563,763
2,941312 9,365,060
852,159 504393
2388,009 2325376
120336 656,976
573,078 138,414
137,156 19,697
7359,427 1359,926 1352,456
988309 371,684 91364
5392,040 -3,058358
799,021 797,407
205,938 743,723 24390
163332,170
647,483
164379353
- i 3 » 1388311
159
. 728,947 4312,079
220,002 1337,723 4309,717
95,730 46322373
16,423 208348 385,419
2367,106 100337
1,485352 331,062 540302 275347
-695,927 3338,440
864387
-I36I392 2,180,776
254387 4365352
215336 119,481
-343O6 471383
1,157,794 1,163356
49305 6381371
246331 1,025,143
89387 8378342 1365,909
520348 34,411
1,174308 567334
23213O8 543,982
12,454362 563,763
2,941312 9365,060
852,159 504393
2388309 2325376
120336 656,976 573378 138,414 137,156
19397 7359,427 1359,926 1352,456
988309 371384
91364 5392340 3358358
799321 797,407 205,938 743,723 24390
163332170
647,483
164379353
-
12,189
31,765
30332
IO3I6 83308
196,144
14)996
(WIS) 52364
11,122 (1,966)
(31382) (6,021)
99339
7,078
504368
S04368
J 3 1388311
159 12,189
728,947 4312379
251,767 1,037.723 4309,717
95,730 46322373
46355 208348 385,419
%367,106 100337
1,485352 331362 540302 286,463 83308
892371 3338,440
864387 14396
1361392 2,180,776
254387 4,065352
206,720 172345
13,122 32340
471383 1.157,794 1,163356
49305
6381371 246331
3325343 89387
8378342 1365,909
488,766 28390
1,174308 5 6 7 ^
232I3O8 543382
12,454362 563,763
2,941312 9365360
852,159 504393
2,688309 2,625376
120336 656,976 573378 138,414 236395
19397 7359,427 1359,926 1352,456
988309 371384
98,442 5392340 3)058358
799321 797,407 205,938 743,723 24390
164,136338
647,483
164,784321
See indqKndent auditors' npofl 13
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
SCHEDULE OF EXFENDmjRES OF FEDERAL AND NON-FEDERAL AWAKDS For the year ended June 30,2013
Pfogiam Name Contract Number
Federal CFDA
Nmnbcr Contract
Term Snbfccipient Egpenditiirc
F rapan i
Federal Award* contmued U S D^admentof Agpculture ("USDA"^
Quid and Adult Care Food ProgEam Pass-duou^ New Jersey D q i t of Agnculture, Bureau of Child
Nutntion Progams (a) 011112 Pass-duDU^ Penii8;^vania Oqit of Eduction, Bureau of Budget &
Rgcal Man^^ment, Dmsion of Food & Nutntion (a) Pass-d»ou{^ Fkmda D ^ t of Pbaldi, Bureau of Quid
Nutntion Prngranis (a) Paas-duDt^ PACNA, Semaos de Ahmenios y Nutncion (i0 Pass-duoug^ bidiana Dq>t of Educauoo (a) PasB-duDU^ Michigan Dipt of Education (a) Pasa-duou^ Vi ignuDqt t of Agnculture, Food &
Nutntion Services (a) Pass-duou^ ^n^pnia Dcpt of Agnculture, Food &
Nutntion Services (a) Pass-duDU^ Califbmta Dept of Education (a) Pass-tfaoHi^ California Dcpt of Education (a) Pass-thjDu^ T^igwa Dtp t of Agnculture, Food Sc
Nutntion Services (lO Pass-diiDu^ Wasbiogtoa Office of Siqienntendent of
Pubhc Instmction (iQ Pass-dirou^NewYodcD^t ofPIealdi (a) Pass-duou^ Pennsi^vaniA Dq>t of EductKm, Bureau of Budget i
Fiscal Nbtt^ement; Chvision of Food & Nutntioa (a) Pass-throu^ Viiginta Dtp t of Agnculture (a) nus- throu^ Viigtma Dtp t of Agnculture (i^ Pus-tfaflou^ Noidi CanAna D^attment of Piealdi and
Pbmian Services (i^ Pass-tfaaoue^ Txxusiana Dept ofEducation, Division of
Nutatun Assistance (i0 Pasa-tfarou^ Louisiana Dept of Education, Division of
Nutntion Assistance (i^ PassHfa&MgbPbttdaDqit ofPlealtfa, Bureau of Quid
Nutntion Pmgtams ^ Pass-tfarou^ Louisiana Oq)t of Educatmi, Division of
Nutntion Assistance (a) Pass-duDu^ PACNA, Semaos de Alimentos yNutncion (a) PassHhrou^ NficfaigVi Department of EducaUon (a) Pass-tfanw^ Afidngpn Department of Education (a) Pass^farou^ Adtansas D q i t of Health and Himan Semcea,
Division of Child Care and Eady Childhood Education ( Pass-duDU^ Oklahoma Dqjt of Education (lO Pasa^farou^ Oklahoma Dqtt of Etkicalian (a) Pass-tfarou^ Nfinnesota Dqit of Education (ft) Pass-duou^ Louisiana Dept of Education, Divmoi of
Nuution Assistance ( ^ Pass-duoug^ Adotnsas Dept of Piealdi and Piuman Services,
Dtnsion of Cbld Care and Eady Chddhood Education ( Pass-duou^ AAaosas Dq>t of Healdi and Piuman Services,
DmsKm of Quid Care and Eady Quldhood Educabm ( Pass-dtmu^FlondaDqpt of Piealdi, Buieau of Chdd
Nutntion Programs (a) Pass-difDu^FlondaDqH ofPiealdi, Buieau of Child
Nutation Prngrams (a) Pass-through PACNA, Semaos de Ahmentos yNutncion Fass-duou^ PACNA, Servuaos de Alunentos yNutncion Pua-duoug^ Qdifbnna Dqi t of Education (a) Pass-duovf^ Cahfonaa Dqi t of Education (a) Pass-duDu^ Cahfomia Dq>t of Education (a) Pass-tfaioue^ PACNA, Semaos de AlunentDs y Nutncion (i^ Pass-dumi^ PACNA, Semaos deAtuneatos yNutncion (a) Fass-dirou^ Califonwa I > p t of Education (a) Paas-throu^ Kansas State Dept of Education (a) Pass-thious^ Kansas State Dq>t of Education (a) Pass-diEou^ Cahfomu Dqi t of Education (a) Paas-diroug^ dhfonua D ^ t of Education (a) Pass-through Adtansas D q » of Healdi and Human Semces,
Dmsun of Quid Care and Eady Childhood Education ( Pass -d ian^ Cabfomia Dq>t of Education (a) Paas-throu^ Oklahoma Dq)t of Education {u} Pass-dimu^ Adcansas Dq>t of Piealdi and Piuman Services,
Dmsioa of Chid Care and Eady Ouldhood Education ( Pass-thmugb Adcansas Dqit of Healdi and Pbiman Semcea,
Division of Quid Care and Eady Ouldhood Education ( Pasa-tfaoou^ IDmou State Board of Education (a) Pass-duDUg^ Nbrdi Dakota Dept of PuUic Instmction (a) Total USDA
Total Federal Awards
30O-3+00O-1
S.2457 CCC208 1930220
73SPX0006
59583
59583 19-3149-OJ 19-3149<3]
59583
39031512 2403
30O-34«)0-l 59583 59583
10558
10558 10558 10558 10558
10558
10558 10558 10558
10558
10558 10558
10558 10558 10558
21-38 CCC208
73SPX0006 73SFX0006
Q30 DC 21-016 DC 21-016 2000010093
10558 10558 10558 10558
10558 10558 10558 10558
Q30
Q30
S-2457 CCC208 CCC208
19-3149-OJ 19-3149-OJ 19J1490J
CCC208 CCC208
19-3149-OJ P0605 P0605
19-31490J 19-3149-OJ
Q30 19-3149-OJ DC 21-016
Q 3 0
Q 3 0 19-022-065F00
53313
10558 10558 10558 10558 10558 10558 10558 10558 10558 10558 10558 10558 10558
10558 10558 10558
1 10558
10558 10558 10558
266,736
34312 163,303
433 439366
19,716
37,124 151307
2,698
147,937
26390 6372
3,137 280,780 47,182
157379
209,967
27351
314,400
9,142 33316 69,483 83,939
603382 302304
1,761
8,076
19325
239369
54,702
985385
6318 326365 71,402
114,036 537308
14,425 16,477
292388 979
25,764 10,658
484352 38,005
124,941 31303 16,010
369,955
244,460 27366 34.093
7329,8U
92334
266,736
34312
163303 433
439366
19,716
37,124 151307
2398
147,937
26390 6372
3,137 280,780 47,182
157379
209,967
27351
314,400
9,142 33316 69,483 83,939
603382 302304
1,761
8376
19325
239369
54,702
985385
6318 326365 71,402
114336 537308
14,425 16,477
292388 979
25,764 10358
484352 38305
124,941 31303 16310
369,955
244,460 27366 34393
92334
266,736
34312
163303 433
439,066
19,716
37,124 151307
2398
147,937
26390 6372
3,137 280,780
47,182
157379
209,967
27351
314)400
9,142 33316 69,483 83339
603382 302304
1,761 8376
19325
239369
54,702
6318 326365 71,402
114336 537308
14,425 16,477
292388 979
25,764 10358
484352 38305
124,941 31303 16310
369355
244,460 27366 34393
73293U 7329313
3293473B3 171,909,466 171309,466 504368 172^13334
See independent iwhtDis' report 14
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START
SCHEDULE OF EXFENDITUKES OF FEDERAL AND NON-FEDERAL AWARDS For die year ended June 30,2013
PmgramNamc Contract N i m b e r
Federal CFDA
Number Contiact
Term GoveniincDt Revcime
XoO'^iHletal Award BievardCo - Eady LeammgCoahtiQn,Pre-K Semces Brevard Co -United Way Fsedendc Coun^ - Head Start State Si^lemental Fundmg F t Greene - Universal Pte-K Semces "Haiaptoa Roads - Eady Reading First New Hanover County Duval County - Eady Leammg Coahtion, Prc-K Services Nordicast Aransas - Better ^egftaaog^ Nordieast Oldahoma - Wrq) Around Northeast OUaboma - Pre lOndeigattea Otter Tail - Wn^ AiDund Otter Tail - State Head Start Ouchita Pansh - Umted Way San Gabnel Valley - LA County Office of Education
Preschool Services Soudi St Louis - State of Missoun Child Can Services Ta-Repon of Adamsas - United Way Waukegan - Wrq> Asound
16363 40382 38307 5,703
34379 40300
171,956 11,000 7,998
357350 39378
192,608 33,319
217.481 28323
7,414 233,096
16363 40382 38307 5,703
34379 40300
171,956 11300 7,998
357350 39378
I923O8 33319
217,481 28323
7,414 233,096
16363 40382 38307 5,703
34379 40300
171,956 11300 7,998
357350 39378
192308 33319
217,481 28323 7,414
233396
1.475,757 M75.757 M75.7S7
Total Federal and Non^Aderal Amrda $ 171309,466 > M7S.757 8173385323 $ 504368 $ 1733WJ91
(14 Audited as a nuiorpiogam
1 Basu of Accounting- Hie Schedule of Eipendituies of Federal and Non-fedeial Avanb has been lepoited on acciual basis of accounung
2 CDI-HS IS eumpt fiom income lasatioo under Internal Revenue Code Secbon 501(c)(3)
3 Funds totaling $504368 wen passed duough to Comniumly Development Institute for admuustntion and numtonng the Head Start psignuns
See mdependent auditoa' lepoit IS
ADDITIONAL INFORMATION
Ill Harrington Group Certified Public Accountants. LLP
Independent Auditor's Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Audit ing Standards
1 () rht. Boiird ot" DirLCtof-rotntnuniU' Dcvtlopmcnt IiiNtiturt Mend ' r irt
Wt have audited, in accordancL with tliL auditing standard-* gtntrallv accepted in the United States of America and the-standards applicable xa financial audits contained in Govtrnment Auditmg Standards issued bv the f Comptroller Cicntral of the United States, the financial statements df (Ommunity Development Institute I lead Start {"(!D1-I IS"), which compnse the ^tatcme-nt of financial position as of |une- 30. 2013, and the related statements of activities, functional expenses and cash flows for the vear then ended, and the related notes to the financial statements, and have issued our report dated December 20. 2013
Intemal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered TDI-IIS' internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of (]DI-1 IS' internal control Accordingly, we do not express an opinion on the effecnveness of (,D1-I IS' internal control
A defiaemy in iiitenialcontrolL\\-^X> when the design or operation of a control does nor allou' m.in:igement or employees, m the normal course of performing their assigned functions, to prevent, or detect anel correct misstatements on a timelv basis A matenal weakness is a deficiency, or a combination of deficiencies, in internal contrf)l, such that there is a reasonable pohsibilit)' that a matenal misstatement ofthe entiU''s financial statements will not be prevented, or detected and corrected on a timely basis A significant deficiency is a deficiency, or a combin'atu>n of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance
Our consideration of internal control was for the limited pur^iosi. descnljed in the first paragraph of this section and was not designed to identify al! deficiencies m internal control that might be material weaknesses or significant det'iciencies (liven these limitations, dunng our audit we did not identify anv deficiencies in internal ct>ntrol that we consider to be material weaknesses I lowever, material weaknesses may exist that have not been identified
Compliance and Other Matters
As part of obtaining reasonable assurance about whether (. Dl-I IS' financial statements are tree of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts I lowever. providing an opinion on compliance with rhost. proMsions was nor an r)b|tcrive of our aueiit, and accordinglv we do not express such an opinion Ihe results of our tests disclosed no instances of noncompliance or other matters that are ret-juired to be reported uneler Government Auditing Standards
Purpose of this Report
I he puqiose of tliis report is soleU to eiescribe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of f'DI-IIS' interna! control or on compliance 1 his report is an integral part of an audit perfomied m accordance with Government Auditing Standards in considering (,DI-I IS' internal control and compliance Accordingly, this communication is not suitable for an\ other purpose
^ % i 4 4 ' C ^ ^ ^ S ^ C^^€14^
San 1 riUicisco, ralifornia
December 20, 2013
PASADENA ATrusted Nonprofit Partner SAN FRANCISCO 234 E Colorado B^d 50 Francisco St
Suite MI50 Expe r i ence Serv ice Respect Suite 160 Pasadena. CA 91101 San Francisco. CA 94133 Tel 6264036801 w w w n p o c p a s c o m ^^, ^ , ^ ^ ^ , 3,3,
Fax 626 403 6866 Fax 415 391 3233
Ill Harrington Group Certified Public Accountants LLP
Independen t Auditors ' Report on Compl iance for E a c h Major Program and on In temal Control Over Compl iance Required by O M B Circular A-133
To the Board of Directors Cominumt\' Development Institute Head Start
Report on Compliance for E a c h Major Federal Program
We have audited Community Development Institute Head Start ("CDI-HS") comphance with the t\pes of comphance requirements descnbed in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of CDI-HS' major federal programs for the year ended June 30, 2013 CDI-HS' ma)or federal programs for the \ear ended June 30, 2013 are identified in the summar\' of auditors' results secuon of the accompanying schedule of fmdings and questioned costs
Managemen t ' s Responsibility
Management is responsible for comphance with the requirements of laws, regulations, contracts, and grants apphcable to its federal programs
Auditors* Rcsponsibihty
Our responsibillt}' is to express an opinion on comphance for each of CDI-HS' major federal programs based on our audit of the tj-pes of compliance requirements referred to above We conducted our audit of compliance in accordance with auditmg standards generally accepted m the Umted States of America, the standards apphcable to fmancial audits contamed in Govemment Auditing Standards, issued by the Comptroller General of the Umted States and OMB Circular A-133, Audits of States. Loial Govemments, and Non-Profit Organizations Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncomphance with the t\pes of comphance requirements referred to above that could have a direct and material effect on a major federal program occiurred An audit mcludes examinmg, on a test basis, evidence about CDI-HS' comphance with those requirements and performmg such other procedures as we considered necessary- in the circumstances
We beheve that our audit provides a reasonable basis for our opinion on compliance for each maior federal program However, our audit does not provide a legal determination of CDI-HS' compliance
Opinion on Each Major Federal Program
In our opinion, CDI-HS complied, in all material respects, with the requirements referred to above that could have a direct and matenal effect on each of its major feeleral programs for the \ear ended June 30, 2013
PASADENA ATrusted Nonprofit Partner SAN FRANCISCO 234 E Colorado Blvd 50 Francisco St
Suite MI50 Expe r i ence Serv ice Respect Suite 160
Pasadena CA 91101 San Francisco, CA 94133 Tel 6264036801 WWWnpocpas com Tel 415391 3131
Fax 626403 6866 Fax 415 391 3233
Independent Auditors ' Report on Compliance for Each Major Program and on In temal Control Over Compl iance Required by O M B Circular A-133 contmued
Report on In temal Control Over Compl iance
Management of CDI-HS is responsible for estabhshing and maintaimng effective internal control over comphance with the tvpes of compliance referred to above In plannmg and performing our audit, we considered CDI-HS' mternal control over comphance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropnate in the circumstances for the purpose of expressing an opinion on comphance for each major federal program and to test and report on internal control over comphance in accordance with OMB Circubr A-133, but not for the purpose of expressmg an opimon on the effectiveness of mternal control over comphance Accordingly, we do not express an opinion on the effectiveness of CDI-HS' mternal control over comphance
A deficiency in intemal control over compliance exists when the design or operation of a control over comphance does not allow management or employees, m the normal course of performmg their assigned funcuons, to prevent, or detect and correct noncomphance with a t\'pe of compliance requirement of a federal program on a timely basis A matenal weakness in intemal control over compliance is a deficiency, or combmaaon of deficiencies, in internal control over compliance, such that there is a reasonable possibiUt)^ that matenal noncomphance with a tj-pe of comphance requirement of a federal program will not be prevented, or detected and corrected, on a umely basis A signifuant deficiency in intemal control over compliance is a deficiency, or a combination of deficiencies, m mternal control over comphance with a t\^e of comphance requirement of a federal program that IS less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance
Our consideration of internal control over comphance vtas for the limited purpose described m the first paragraph of this section and was not designed to idcntif)' all deficiencies in internal control over comphance that might be material weaknesses or significant deficiencies We did not identifH^ am deficiencies m mternal 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 intemal control over compliance is solely to describe the scope of our testing of mternal control over comphance and the results of that testing based on the requirements of OMB Circular A-133 Accordingly, this report is noi suitable for anv other purpose
San Francisco, Cahfornia December 20, 2013
C O M M U N I T Y D E V E L O P M E N T I N S T I T U T E H E A D START Schedule of Findings and Ques t ioned Costs I"'"or the year ended June 30, 2013
Section I - Summary of Auditors ' Results Financial Statements T\pc of auditors* report issued
Internal control over financial reporting Material weakness(es) identified-^ Significant deficiencv(ies) identified that are not considered to be matenal weaknesses'
Noncomphance material to financial statements noted-^
Federal Awards Internal control over major programs
Matenal weakness(es) idenufied^ Significant deficiency(ies) identified that are not considered to be matenal weaknesses'
T)pc of auditors' report issued on comphance for major programs
Any audit fmdmgs disclosed that are required to be reported m accordance with section 510(a) of Circular A-133"''
Dollar tlireshold used to disunguish between Tj'pe A and Type B programs
Auditee quahfied as low-risk auditee'*
Identification of Major Programs U S Department of Agriculmre
Child and Adult Care Food Program
U S Department of Health and Human Scr\'ices Head Start Program
Unmodified No No
No
No No
Unmodified
No
55,157,284
Yes
10 558
93 600
Section II — Financial Statements Fmdings
There are no findmgs required to be reported in accordance with Generally Accepted Govemment Auditing Standards
Section III - Federal Award Findings and Ques t ioned Costs
There arc neither fmdings nor questioned costs for I'cderal awards as defined m OMB Circular A-133
Section IV - Summary' Schedule of Prior Year Findings
None
19