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HomeMy WebLinkAbout1992/1993 COMMUNITY SERVICE PROGRAMS FINANCIAL STATEMENT AUD serving Orange County since 1972 COMMUNITY SERVICE PROGRAMS 17200 Jamboree,Suite D Irvine,California 92714 (714)250-0488 December 16, 1993 Office of the City Clerk City of Huntington Beach 2000 Main Street Huntington Beach , CA 92648 Dear City Clerk : Enclosed is your copy of the FY 92-93 Financial Statement Audit & Single Audit Report of Community Service Programs, Inc . Your program was included in this audit . If you have any questions, please call me at ( 714) 250-0488. Sincerely, 3u� Carol Thompson Finance Director CT/blk a non-profit agency youth shelter family counseling child abuse prevention dispute resolution victim/witness assistance gang intervention drug abuse prevention COMMUNITY SERVICE PROGRAMS, INC. Schedule of Federal, Selected State and Other Awards (Continued) ' CFDA Agreement Awards Awards Awards Due to Other Number Number Received(l) Receivable Expenditures Governments ' OTHER. (CONTINUED) County of Orange. (Contlnuedl: Dispute Resolution Program N/A 302 52,370 7,626 59,996 - Child Abuse Intervention N/A N/A - 6,389 6,389 - ' Volunteer Hours/Cash Match N/A N/A 18,926 - 18.926 - Total Other 587,115 19.678 606,553 240 Total Federal, Selected State, and Other Awards $2.222 908 31 Q,3�Q 2.30g.03O 1 1 1 ' (1) Based on actual cash receipts from July 1, 1992 through June 30, 1993 See accompanying independent auditors' report. ' SCHEDULE 1 ' COMMUNITY SERVICE PROGRAMS, INC. Gang Violence Suppression Program Funded by the Office of Criminal Justice Planning Statement of Costs Claimed and Accepted ' Year ended June 30, 1993 Costs Costs Costs ' Claimed(1) Accepted Questioned GV92011039 ' July 1. 1992 through June 30, 1993 Personal services $74,209 74,209 - ' Operating expenses 22.747 22.747 - Total (1) Per Request No. 14 (Final) 1 1 ' -7- ' SCHEDULE 2 COMMUNITY SERVICE PROGRAMS, INC. Gang Prevention/Intervention Program Funded by the Office of Criminal Justice Planning Statement of Costs Claimed and Accepted Year ended June 30, 1993 Costs per ' Claim Total at Costs Costs at Costs Costs 6/30/93(1) Accrued .6/30/93 Accepted Questioned ' JL92011039 January 1. 1993 through June 30. 1993 ' Personal services $7,416 - 7,416 7,416 - Employee benefits 1,522 125 1,647 1,647 - ' Travel 449 95 544 544 Consulting services 254 134 388 388 Operating expenses 214 334 548 548 - ' Total (1) Per Request No. 7 ' -8- SCHEDULE 3 ' COMMUNITY SERVICE PROGRAMS, INC. Gang Victim Services Program Funded by the Office of Criminal Justice Planning Statement of Costs Claimed and Accepted ' Year ended June 30, 1993 Costs per Match Not Total Claim at Reported Costs at Costs Costs 6/30/93(1) on Claim 6/30/93 Accepted Questioned ' SE92030300 July 1. 1992 through June 30. 1993 ' Personal services $33,080 11_224 44,304 44,304 Employee benefits 8,372 8,372 8,372 Travel 610 - 610 610 - ' Operating expenses 2.486 - 2,486 2,486 - Total $44,54g 11.224 55.772 55.772 ' (1) Per Request No. 15 (Final ) 1 1 -9- ' SCHEDULE 4 ' COMMUNITY SERVICE PROGRAMS, INC. Victim/Witness Assistance Program Funded by the Office of Criminal Justice Planning ' Statement of Costs Claimed and Accepted ' Year ended June 30, 1993 Costs per Total ' Claim at Costs Costs at Costs Costs 6/30/93(1) Accrued 6/30/93 Accepted Questioned VW92130300 ' July 1. 1992 through June 30. 1993 ' Personal services $392,597 - 392,597 392,597 Employee benefits 100,092 1,826 101,918 101,918 Travel 3,141 123 3,264 3,264 - ' Consulting services 2,590 - 2,590 2,590 Operating expenses 70,196 5,662 75,858 75,858 Equipment 10.590 893 11.483 11.483 - ' Total $579"206 8.504 587.710 587.710 - 1 (1) Per Request No. 12 1 1 ' -10- COMMUNITY SERVICE PROGRAMS, INC. Irvine, California ' Single Audit Report on Federal, Selected State and Other Awards ' Year ended June 30, 1993 1 1 ' COMMUNITY SERVICE PROGRAMS, INC. Single Audit Report on Federal, Selected State and Other Awards Year ended June 30, 1993 ' TABLE OF CONTENTS ' Paae Independent Auditors' Report on Supplementary Information - ' Schedule of Federal, Selected State and Other Awards 1 Supplementary Information: ' Schedule of Federal, Selected State and Other Awards 2 Gang Violence Suppression Program Funded by the ' Office of Criminal Justice Planning - Statement of Costs Claimed and Accepted - Schedule 1 7 ' Gang Prevention/Intervention Program Funded by the Office of Criminal Justice Planning - Statement of Costs Claimed and Accepted - Schedule 2 8 ' Gang Victim Services Program Funded by the Office of Criminal Justice Planning - Statement of Costs Claimed and Accepted - Schedule 3 9 ' Victim/Witness Assistance Program Funded by the Office of Criminal Justice Planning - Statement of Costs Claimed and Accepted - Schedule 4 10 ' Youth Shelter Program Funded by the Office of Criminal Justice Planning - Statement of Costs Claimed and Accepted- Schedule 5 11 Youth Shelter Program Funded by the Office of Criminal Justice Planning - Statement of Costs Claimed and ' Accepted - Schedule 6 12 Sexual Assault Victim Services/Prevention Program Funded ' by the Office of Criminal Justice Planning - Statement of Costs Claimed and Accepted - Schedule 7 13 ' Independent Auditors' Report on Internal Control Structure in Accordance with Government Auditing Standards 14 Single Audit Report on the Internal Control Structure ' Used in Administering Federal Awards 16 1 1 1 COMMUNITY SERVICE PROGRAMS, INC. Single Audit Report on Federal, Selected State and Other Awards Year ended June 30, 1993 1 1 TABLE OF CONTENTS. (CONTINUED) 1 P-�- Independent Auditors' Report on Compliance with Laws, ' Regulations, Contracts, and Grants Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 19 1 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major Programs 20 ' Independent Auditors' Report on Compliance with the General Requirements Applicable to Federal Awards Programs 21 1 Independent Auditors' Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Programs, Selected State and Other Awards Transactions 22 ' Status of Audit Findings 23 1 1 1 1 1 i i 1 ' CONS CERTIFIED PUBLIC ACCOUNTANTS SSOC 1 IR MAIN STREET, SUITE C 9� IATES IRVINE,CALIFORNIA 92714 ' A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 Board of Directors Community Service Programs, Inc. Irvine, California ' INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION — SCHEDULE OF FEDERAL. SELECTED STATE AND OTHER AWARDS We have audited the financial statements of Community Service Programs, Inc. (the Agency) as of and for the year ended June 30, 1993, and have issued our report thereon dated November 8; 1993. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these financial statements based on our audit. ' We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-133, "Audits of Institutions I of Higher Education and Other Nonprofit Institutions." Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether management has complied with laws and regulations. An audit includes examining, on a test ' basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe ' that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the basic financial statements of Community Service Programs, Inc., taken as a whole. The supplementary information included in the Schedule of Federal Selected State and Other Awards and Schedules 1 through 7 is presented for purposes of additional analysis in accordance with the requirements of Office of Management and Budget Circular A-133, the Single Audit Act, the ' State of California — Office of Criminal Justice Planning and is not a required part of the basic financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements. In our opinion, the ' accompanying supplementary information is fairly presented, in all material respects, in relation to the basic financial statements taken as a whole. IJ-A4401 fSdGG� ' November 8, 1993 —1— ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION COMMUNITY SERVICE PROGRAMS, INC. Schedule of Federal, Selected State and Other Awards Year ended June 30, 1993 1 ' CFDA Agreement Awards Awards Awards Due to Other Number Number Received(l) Receivable Expenditures Governments FEDERAL U.S. Department of Health and Human Services• ' Direct Assistance: Drug Abuse Prevention 93.657* 09CK2006/02 $106,570 - 106,570 - ' Drug Abuse Prevention 93.657• 09CK2006/03 49.733 47.664 2.069 156,303 - 154.234 2.069 Runaway Youth Program 93.623• 09CY0235/01 20,019 - 20,019 - Runaway Youth Program 93.623• 09CY0235/02 79,000 7.202 86.202 ' 99.019 7,202 106,221 - Subtotal 255,322 7.202 260,455 2.069 ' Passed through the County of Orange: ' Child Abuse Intervention 93.658• N/A 110,458 5,154 115,612 - Drug Abuse Prevention and Early Intervention Services 93.992• N/A 162,118 17,882 180,000 - Child Welfare and Research - Program 93.608• N/A 110,728 15.834 126,562 Subtotal 383,304 38,870 422,174 - Total U.S. Department of Health and Human Services 638,626 46,072 682,629 2.069 ' (1) Based on actual cash receipts from July 1, 1992 through June 30, 1993 • Major program ' See accompanying independent auditors' report. ' -2 ' COMMUNITY SERVICE PROGRAMS, INC. Schedule of Federal, Selected State and Other Awards (Continued) ' CFDA Agreement Awards Awards Awards Due to Other Number Number Received(1) Receivable Expenditures Governments ' FEDERAL. (CONTINUED) U.S. Department of Justice ' Passed through the State of California, Office of Criminal Justice Planning: ' Gang Prevention/Intervention Program 16.540** JL92011039 9,691 852 10,543 - Youth Shelter Program 16.540** JL91011039 6,962 - 6,962 - Youth Shelter Program 16.540** JL92021039 15.738 290 16,028 - 32,391 1,142 33,533 - ' Sexual Assault Victim - Services/Prevention Program 16.575** RC92121039 17,796 20,239 38,035 ' Subtotal 50,187 21,381 71,568 - Passed through the County of Orange: Gang Victim Services 16.575+* SE92030300 43,942 606 44,548 - Volunteer Hours 16.575+* SE92030300 11,224 11,224 ' 55,16fi 606 55,772 - Families First Project 16.540 N/A 36,153 5,170 41,323 - Subtotal 91,319 5,776 97.095 - Passed through the City of Santa Ana: - - Weed and Seed Program N/A A-93-023 49,067 39,196 ' Total U.S. Department - of Justice 190,573 27,157 207,859 U.S. Department of Housing ' and Urban Development: Passed through the City of ' Costa Mesa: Community Development Block Grant 14.218 N/A 3,000 1,000 4,000 - ' (1) Based on actual cash receipts from July 1, 1992 through June 30, 1993 + Major program ' *• Non-major program (required to be tested by funding agency) See accompanying independent auditors' report. ' -3- COMMUNITY SERVICE PROGRAMS, INC. ' Schedule of Federal, Selected State and Other Awards (Continued) CFDA Agreement Awards Awards Awards Due to Other Number Number Received(11 Receivable Expenditures Governments FEDERAL. (CONTINUED) U.S. Department of Housine and Urban Development. (Continuedl: Passed through the City of Westminster: ' Community Development - Block Grant 14.218 N/A 13,040 10,960 24,000 ' Passed through the City of San Clemente: Community Development Block Grant 14.218 N/A 10,000 - 10,000 - ' Passed through the City of Fountain Valley: Community Development - - Block Grant 14.218 N/A 4,200 4,200 Passed through the City of Huntington Beach: Community Development Block Grant 14.218 N/A 5,625 1,875 7,500 - ' Total U.S. Department of Housing and Urban Development 35,865 13,835 49,700 - Total Federal 865,064 87,064 940,188 2.069 STATE ' Child Welfare Fund Passed through the County of Orange: ' Families First Project N/A N/A 6,376 912 7,288 - ' (1) Based on actual cash receipts from July 1, 1992 through June 30, 1993 ' See accompanying independent auditors' report. ' -4- COMMUNITY SERVICE PROGRAMS, INC. ' Schedule of Federal, Selected State and Other Awards (Continued) CFDA Agreement Awards Awards Awards Due to Other Number Number Received(1) Receivable Expenditures Governments ' STATE. (CONTINUED) Office of Criminal Justice Planning: ' Direct Assistance: Sexual Assault Victim ' Services/Prevention Program N/A RC92121039 $ 78,620 = 61,866 16,754 Volunteer Hours N/A RC92121039 7,469 7,469 86.089 - 69,335 16,754 ' Gang Violence Suppression Program N/A GV92011039 64,556 22,706 87,262 - Volunteer Hours/Cash Match N/A GV92011039 9,694 - 9,694 - ' 74,250 22,706 96,956 16,754 Subtotal 160,339 22,706 166,291 16,754 Passed through the County of Orange: Victim/Witness Assistance Program N/A VW92130300 604,014 - 587,710 16,304 ' Total State 770,729 23.618 761,289 33,058 ' OTHER County of Orange: ' Direct Assistance: Juvenile Diversion Program- North N/A N/A 202,382 3,520 205,902 - ' Juvenile Diversion Program- South N/A N/A 202,131 2,143 204,274 Juvenile Diversion Program- West N/A N/A ill 0 - 111,066 240 Subtotal 515,819 5,663 521,242 240 ' (1) Based on actual cash receipts from July 1, 1992 through June 30, 1993 ' See accompanying independent auditors' report. ' -5- SCHEDULE 5 t COMMUNITY SERVICE PROGRAMS, INC. Youth Shelter Program Funded by the Office of Criminal Justice Planning ' Statement of Costs Claimed and Accepted ' Year ended June 30, 1993 1 Costs Costs t Costs Audited Claimed Costs Costs Claimed(l) 6/30/92 6/30/93 Accepted Questioned JL91011039 ' July 1. 1992 through September 30. 1992 Personal services $18,699 13,581 5,118 5,118 Employee benefits 6,961 4,992 1,969 1,969 Travel 93 93 - - - Operating expenses 1.000 1.125 125) 125) ' Total $26.753 19.791 6Q 9U 1 (1) Per Request No. 15 (Final ) 1 1 1 ' -11- ' SCHEDULE 6 ' COMMUNITY SERVICE PROGRAMS, INC. Youth Shelter Program Funded by the Office of Criminal Justice Planning Statement of Costs Claimed and Accepted ' Year ended June 30, 1993 Costs per Total ' Claim at Costs Costs at Costs 6/30/93(1) Accrued 6 30/ 3 Accepted JL92021039 ' October 1. 1992 through June 30. 1993 ' Personal services $10,996 3 10,999 10,999 Employee benefits 3,897 177 4,074 4,074 Travel 200 - 200 200 ' Operating expenses 5 750 755 755 Total $15,09g $ 16.02g 1 (1) Per Request No. 10 1 1 ' -12- ' SCHEDULE 7 COMMUNITY SERVICE PROGRAMS, INC. Sexual Assault Victim Services/Prevention Program Funded by the Office of Criminal Justice Planning Statement of Costs Claimed and Accepted ' Year ended June 30, 1993 1 Costs per Total ' Claim at Costs Costs at Costs Costs 6/30/93(1) Accrue 6/30/93 Accepted Questioned RC92121039 ' July 1. 1992 through June 30. 1993 1 Personal services $ 76,899 - 76,899 76,899 Employee benefits 19,128 237 19,365 19,365 Travel 1,392 5 1,397 1,397 - Operating expenses 7,743 1.966 9.709 9.709 - Total 1 (1) Per Request No. 13 1 ' -13- ' CON RAD CERTIFIED PUBLIC ACCOUNTANTS 1 MAINSTREET, SUITE C OCIHTLJ IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 t Board of Directors ' Community Service Programs, Inc. Irvine, California ' INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ' We have audited the financial statements of Community Service Programs, Inc. (a nonprofit agency) as of and for the year ended June 30, 1993, and have issued our report thereon dated ' November 8, 1993. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. ' Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. ' In planning and performing our audit of the financial statements of the Agency for the year ended June 30, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. ' The management of the Agency is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against ' loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur ' and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash disbursements, cash receipts, and ' payroll and related liabilities. For all of the internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. 1 -14- ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION 1 Board of Directors ' Community Service Programs, Inc. Page Two Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the Board of Directors, management, and agencies granting funds to the Agency. However, this report is a matter of public record, and distribution is not limited. November 8, 1993 1 1 1 -15- ' C NS CERTIFIED PUBLIC ACCOUNTANTS EWS290C"TES 1 MAIN STREET, SUITE C IR IRVINE, CALIFORNIA 92714 ' A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 Board of Directors ' Community Service Programs, Inc. Irvine, California ' SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL AWARDS We have audited the financial statements of Community Service Programs, Inc. (a nonprofit agency) as of and for the year ended June 30, 1993, and have issued our report thereon dated ' November 8, 1993. We have also audited the Agency's compliance with requirements applicable to major federal programs and have issued our report thereon dated November 8, 1993. ' We have conducted our audits in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and Budget (OMB) Circular A-133, "Audits of Institutions of Higher ' Education and Other Nonprofit Institutions." Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the Agency complied with laws and regulations, noncompliance with which would be material to the ' major federal awards. In planning and performing our audit for the year ended June 30, 1993, we considered the ' Agency's internal control structure in order to determine our auditing procedures for the purpose of expressing an opinion on the Agency's financial statements and on its compliance with requirements applicable to major programs and to report on the internal control 1 structure in accordance with OMB Circular A-133. This report addresses'our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal awards. We have addressed policies and procedures relevant to our audit of the financial statements (including selected state and other awards) ' in a separate report dated November 8, 1993. The management of the Agency is responsible for establishing and maintaining an internal ' control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal financial assistance awards are managed in compliance with applicable laws and regulations. -16- ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION Board of Directors ' Community Service Programs, Inc. Page Two ' Because of inherent limitations in any internal control structure, errors or irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design ' and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure ' policies and procedures used in administering federal awards in the following categories: • Accounting Controls ' - Purchases/disbursements - Payroll/personnel - Revenues/receipts • General requirements ' - Political activity - Davis-Bacon Act - Civil rights ' - Cash management - Federal financial reports - Allowable costs/cost principles ' - Drug-free workplace - Administration requirements • Specific Requirements - Types of services allowed ' - Eligibility - Matching, level of effort, or earmarking and allowability of amounts claimed or used for matching ' - Federal financial reports and claims for advances and reimbursements - Cost allocation ' - Monitoring subrecipients - Special requirements, if any - Property management system ' - Procurement system - Allowability of cost ' For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. 1 -17- Board of Directors ' Community Service Programs, Inc. Page Three ' During the year ended June 30, 1993, the Agency expended 73 percent of its total federal awards under the following major programs: U.S. Department of Health and Human Services Drug Abuse Prevention, Runaway Youth Program, Child Abuse Intervention, Drug Abuse Prevention and Early Intervention Services and Child Welfare and Research Program. ' We performed test of controls, as required by OMB Circular A-133, to evaluate the effectiveness of the design and operation of internal control structure policies and ' procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of the Agency's major programs which are identified in the accompanying schedule of federal, selected state and other awards. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. ' Our consideration of the internal control structure policies and procedures used in administering federal awards would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal awards program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the Board of Directors, management, and agencies granting funds to the Agency. However, this report is a matter of public record and ' its distribution is not limited. 1 November 8, 1993 1 -18- ' CONS CERTIFIED PUBLIC ACCOUNTANTS SSOC2� IATES 1 IR MAIN STREET, SUITE C IRVINE, CALIFORNIA 92714 ' A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 1 Board of Directors ' Community Service Programs, Inc. Irvine, California ' INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH LAWS, REGULATIONS. CONTRACTS, AND GRANTS BASED ON AN AUDIT ' OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of Community Service Programs, Inc. (a nonprofit agency) as of and for the year ended June 30, 1993, and have issued our report thereon dated November 8, 1993. , ' We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance ' about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Agency is the responsibility of the management of the Agency. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Agency's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide ' an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the Agency complied, ' in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those provisions. We noted no ' immaterial instances of noncompliance. This report is intended for the information of the Board of Directors, management, and ' agencies granting funds to the Agency. However, this report is a matter of public record, and its distribution is not limited. 4M,0 d SOC� ' November 8, 1993 —19— ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION ' CON�I j1(�LJ CERTIFIED PUBLIC ACCOUNTANTS Exs��,SOCIATES 1100 MAIN STREET. SUITE C IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 Board of Directors Community Service Programs, Inc. Irvine, California INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR PROGRAMS ' We have audited the financial statements of Community Service Programs, Inc. (a nonprofit agency) as of and for the year ended June 30, 1993, and have issued our report thereon dated ' November 8, 1993. We have also audited the Agency's compliance with the requirements governing types of services allowed or unallowed; eligibility; matching; cost allocation; financial reports; level of effort, or earmarking; reporting; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major programs, which are identified in the accompanying schedule of federal, selected state and other awards, for the ' year ended June 30, 1993. The management of the Agency is responsible for the Agency's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. ' We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Institutions." Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the ' requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Agency's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. ' The results of our audit procedures did not disclose any immaterial instances of noncompliance with the requirements referred to above. ' In our opinion, the Agency complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; matching; level of effort, or earmarking; reporting; cost allocation; financial reports; claims for advances and reimbursements; special requirements; and amounts claimed or used for matching that are ' applicable to each of its major programs for the year ended June 30, 1993. This report is intended for the information of the Board of Directors, management, and ' agencies granting funds to the Agency. This report is a matter of public record, and its distribution is not limited. 6*44 111 JV Asau a Ito November 8, 1993 -20- ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION ' CON CERTIFIED PUBLIC ACCOUNTANTS SOCIATE 1100 MAIN STREET, SUITE C J \v 1 J IRVINE, CALIFORNIA 92714 A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 Board of Directors Community Service Programs, Inc. Irvine, California ' INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL AWARDS PROGRAMS We have audited the financial statements of Community Service Programs, Inc. (a nonprofit agency), as of and for the year ended June 30, 1993, and have issued our report thereon dated ' November 8, 1993. We have applied procedures to test the Agency's compliance with the following requirements ' applicable to each of its federal awards programs, which are identified in the accompanying schedule of federal, selected state and other awards, for the year ended June 30, 1993: political activity, Davis-Bacon Act, civil rights, cash management, federal financial reports, allowable costs/cost principles, drug-free workplace and administration requirements. ' Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Audits of Educational Institutions ' and Other Non-Profit Institutions." Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Agency's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an ' opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this ' report. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those requirements. ' This report is intended for the information of the Board of Directors, management, and agencies granting funds to the Agency. However, this report is a matter of public record, and its distribution is not limited. e AS o-e.", to ' November 8, 1993 -21- ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION CON[111LJ CERTIFIED PUBLIC ACCOUNTANTS ' 1100 MAIN STREET, SUITE C E� SSOCIATES IRVINE,CALIFORNIA 92714 ' A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 Board of Directors Community Service Programs, Inc. Irvine, California INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR ' FEDERAL PROGRAMS. SELECTED STATE AND OTHER AWARDS TRANSACTIONS We have audited the financial statements of Community Service Programs, Inc. (a nonprofit agency) as of and for the year ended June 30, 1993, and have issued our report thereon dated ' November 8, 1993. In connection with our audit of the financial statements of the Agency, and with our ' consideration of the Agency's internal control structure used to administer federal awards, as required by Office of Management and Budget Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Institutions," we selected certain transactions applicable to certain nonmajor federal programs, selected state and other awards for the year ended June 30, 1993. As required by Circular A-133, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed; eligibility; and special requirements; and allocation of administrative funds that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Agency's compliance with these requirements. Accordingly, we do not express such an opinion. ' With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those requirements. This report is intended for the information of the Board of Directors, management, and agencies granting funds to the Agency. However, this report is a matter of public record, and its distribution is not limited. Ao • L November 8 199 o 3 1 1 -22- ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION ' COMMUNITY SERVICE PROGRAMS, INC. ' Status of Audit Findings tNo findings were identified in the June 30, 1992 audit report. ' The audit for the year ended June 30, 1993 did not disclose any findings. 1 1 1 1 1 t 1 -23- COMMUNITY SERVICE PROGRAMS, INC. Financial Statements ' Years Ended June 30, 1993 and 1992 (with Independent Auditors' Report Thereon) t t 1 COMMUNITY SERVICE PROGRAMS, INC. ' Financial Statements Years Ended June 30, 1993 and 1992 TABLE OF CONTENTS ' Pale Independent Auditors' Report 1 Financial Statements: ' Balance Sheet 2 Statement of Public Support, Revenue, Expenses and Changes in Fund Balances 3 Statement of Functional Expenses 4 ' Statement of Cash Flows 6 Notes to the Financial Statements 7 1 1 CON 11 V-1LJ CERTIFIED PUBLIC ACCOUNTANTS E��Sg-OCIATES 1IR MAIN STREET, SUITE C IRVINE, CALIFORNIA 92714 ' A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS (714)474-2020 ' Board of Directors Community Service Programs, Inc. 17200 Jamboree, Suite D ' Irvine, California 92714 ' INDEPENDENT AUDITORS' REPORT We have audited the accompanying balance sheet of Community Service Programs, Inc., as of June 30, 1993, and the related statements of public support, revenue, expenses and changes in fund balances, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the management of Community Service Programs, Inc. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the ' financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We ' believe that our audit provides a reasonable basis for our opinion. In our opinion, the aforementioned financial statements present fairly, in all material ' respects, the financial position of Community Service Programs, Inc., as of June 30, 1993, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. 1 / �Iti?.-lip+ ' November 8, 1993 ' MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION FINANCIAL STATEMENTS COMMUNITY SERVICE PROGRAMS, INC. Balance Sheet June 30, 1993 (with comparative totals for June 30, 1992) Land, Buildings Current Funds and Equipment Totals Unrestricted Restricted Fund 1993 1992 Assets Cash $342,950 470,911 - 813,861 678,238 Accounts receivable: - Federal and State governments 153,223 - 153,223 262,702 Other 255 3,795 - 4,050 13,722 Prepaid expenses and other assets 19,885 142 - 20,027 19,600 Land, buildings and equipment (net of accumulated depreciation) (note 2) - - 305,298 305,298 311,934 Due from other funds - 41 - 41,485 - Total assets S 6U.090 669.556 305.298 1.337.944 1.286.196 ' Liabilities and Fund Balances ' Liabilities:Accounts payable $ 326 57,123 - 57,449 70,165 Accrued expenses 34,021 362,159 - 396,180 333,781 ' Advances from funding sources - 77�963 - 77,963 142�613 Due to other funds 41,485 41,485 Deposits - .874 - 874 - Current portion of long-term debt - - - - 725 1 Total liabilities 75,832 498,119 - 573,951 547,284 ' Fund balances: Current unrestricted: Undesignated - available for ' general activities 287-258 - = 287,258 290,654 Current restricted: Other specific purposes 171,437 171,437 136,324 Land, buildings and equipment: ' Equity in fixed assets - 305,298 305,298 311,934 Total fund balances 287,258 171,437 305,298 763,993 738,912 Total liabilities and fund balances S 6 .5h L 44 19 See accompanying notes to the financial statements. ' -2- ' COMMUNITY SERVICE PROGRAMS, INC. Statement of Public Support, Revenue, Expenses ' and Changes in Fund Balances Year ended June 30, 1993 (with comparative totals for year ended June 30, 1992) Land, Buildings Current Funds and Equipment Totals Unrestricted Restricted Fund 1993 1992 Public support and revenue: - - Public support: United Way, Inc. 13,954 13,954 17,686 Donations 5,397 129,017 - 134,414 203,164 ' Special events (net of - - direct costs) 94,701 94,701 134,632 Total public support 100,098 142,971 - 243,069 355,482 Revenue:Federal and state grants - - 1,945,133 1,945,133 973,251 Other governmental revenue - 1,960,820 - 1,960,820 2,392,695 ' Program fees - 161_193 - 161,193 200_200 Management fees 125,268 125,268 Interest 8,388 2,621 11,009 17,388 Miscellaneous 15,869 7,346 - 23,215 5,031 Total revenue 149,525 4,077,113 - 4,226,638 3,488,565 Total public support and revenue 249,623 4,220,084 - 4,469,707 3,844,047 ' Expenses: Program services: Victim/witness assistance - 1,860,371 1,492 1,861,863 1,811,724 ' Youth services - 1,465,160 - 1,465,160 1,408,387 Youth shelter/child abuse 400,199 6,087 406,286 333,684 Gang prevention 277,834 277,834 99,666 Day treatment - 180,274 - 180,274 - Mediation services 62,415 62,415 ' Total program services - 4,246,253 7,579 4,253,832 3,653,461 Supporting services: - - Management and general 164,273 909 165,182 59,594 Fund raising 25,612 25,612 68,425 Total supporting services 189,885 - 909 190,794 128,019 Total expenses 189,885 4,246.253 8,488 4,444,626 3,781.480 Excess (deficiency) of public support and revenue over (under) expenses 59,738 (26,169) (8,488) 25,081 62,567 Other changes in fund balances - transfers (to) or from other funds (63,134) 61,282 1,852 - - ' Net increase (decrease) in fund balances (3,396) 35,113 (6,636) 25,081 62,567 Fund balances, beginning of year 290,654 136,324 311,934 738,912 676,345 Fund balances, end of year Z$ 2 171.437Q 763.993 See accompanying notes to the financial statements. ' -3- COMMUNITY SERVICE PROGRAMS, INC. ' Statement of Functional Expenses , Year ended June 30, 1993 (with comparative totals for the year ended June 30, 1992) ' Program Services Youth ' Victim/ Shelter/ Total Witness Youth Child Gang Day Mediation Program Assistance Services Abuse Prevention Treatment Services Services , Salaries $1,238.577 1,015,704 252,513 195,687 127,610 37,731 2,867.822 Payroll taxes 112,478 89,898 22,975 17,739 11,602 3,260 257,952 Benefits 207,760 156,833 61,220 23,033 9,458 4,670 462,974 ' Total salaries and related expenses 1,558,815 1,262,435 336,708 236,459 148.670 45,661 3,588,748 ' Professional fees 21,769 37,141 5,064 7,391 1,873 705 73,943 ' Office supplies 39,277 35,296 14,559 8,564 19,071 2,770 119,537 Occupancy 29,525 56,142 12,131 1,576 654 1,172 101,200 Telephone and utilities 12,011 14,881 16,664 3,310 2,456 708 50,030 Travel and mileage 13,633 20,801 3,317 9,500 3,627 618 51,496 , Public relations and brochures 3,240 3,433 20 647 - 1,174 8,514 Insurance 12,781 11,915 2,612 1,616 1,040 255 30,219 .Maintenance 457 1,130 2,060 82 36 56 3,821 , Conferences and training 2,144 2,158 1,000 630 788 340 7,060 Equipment-related expenses 33,727 15,311 3,053 3,115 610 8,790 64,606 Grant expense 125,268 - - - - - 125,268 Interest 9 - - - - - 9 ' Other 7,715 4,517 3,011 4,944 1,449 166 21,802 Total expenses before , depreciation 1,860,371 1,465,160 400.199 277,834 180,274 62,415 4,246,253 Depreciation 1.492 - 6.087 - - - 7,579 ' Total ES1.861.863 1.465.160 406.286 277.834 180.274 .415 See accompanying notes to financial statements. -4- , ' Supporting Services Total ' Management Fund Supporting Total Expenses and General Raising Services 1993 1992 90,503 6,098 96,601 2,964,423 2.522,004 7,511 562 8,073 266,025 214,827 10,895 563 11.458 474,432 416,828 ' 108,909 7,223 116,132 3,704,880 3,153,659 ' 14,164 8,742 22,906 96,849 114,237 7,253 4,056 11,309 130,846 100,707 4,653 31 4,684 105,884 106,S46 ' 3,237 12 3,249 53,279 46,814 846 292 1,138 52,634 42,437 6,825 1,707 8,532 17,046 25,279 762 51 753 30,972 32,842 ' 478 2 480 4,301 21,627 - 2,023 2,023 9,083 4,886 8,993 676 9,669 74,275 25,077 ' - _ - 125,268 - 842 842 851 5.348 2,820 8,168 29,970 98,934 ' 164,273 25,612 189,885 4,436,138 3,773,045 909 - 909 8,488 8,435 •' COMMUNITY SERVICE PROGRAMS, INC. Statement of Cash Flows Year ended June 30, 1993 ' (with comparative totals for the year ended June 30, 1992) 1993 199 ' Cash flows from operating activities ' Excess (deficiency) of public support and revenue over (under) expenses 25,081 62.567 Adjustments to reconcile excess (deficiency) of ' public support to net cash provided (used) by operating activities: Depreciation expense 8,488 8,435 ' (Increase) decrease in grants receivable 109,479 (110,625) (Increase) decrease in accounts receivable 9,672 (13,722) (Increase) decrease in prepaid expenses (427) (4,451) Increase (decrease) in accounts payable and ' accrued liabilities (12,716) (23) Increase (decrease) in accrued payroll and related expenses 62,399 29,309 ' Increase (decrease) in grant advances (64,650) 119,707 Increase (decrease) in deposits 874 Total adjustments 113,119 28.630 ' Net cash provided (used) by operating activities 138,200 91.197 Cash flows from investing activities: Purchase of fixed assets (1.852) - ' Net cash provided by (used in) investing activities 0,852) - Cash flows from financing activities: ' Payments on long-term debt (725) (52,520) Net cash provided (used) by financing activities (725) (52.520) ' Net increase (decrease) in cash and cash equivalents 135,623 38,677 Cash and cash equivalents at beginning of year 678.238 639,561 Cash and cash equivalents at end of year $813.861 4 ' Supplemental disclosure - interest paid ' See accompanying notes to the financial statements. ' -6- ' COMMUNITY SERVICE PROGRAMS, INC. ' Notes to the Financial Statements Year ended June 30, 1993 ' (1) Summary of Significant Accounting Policies Organization and Nature of Services ' Community Service Programs, Inc. (the Agency) is a nonprofit human services organization managing assistance programs in the County of Orange, California in the areas of victim/witness assistance, youth services, youth shelter/child abuse, gang prevention, day treatment and mediation services. The Agency was originally incorporated on September 14, 1977 and is a tax-exempt 501 (c)(3) organization under the Internal Revenue Service Code. (a) Basis of Presentation The accompanying financial statements include the assets, liabilities, fund balances and financial activities of all the programs of the Agency. The Agency maintains its accounting records on a modified accrual basis of accounting. The Agency accounts for property and equipment purchased with grant monies in ' accordance with grant provisions which require that such expenditures be accounted for as current period charges. The accompanying financial statements have been prepared on the accrual basis of accounting and, therefore, differ in ' certain respects from the Agency's accounting records. Certain reclassifications have been made to the 1992 financial statements to ' conform to the 1993 presentation. (b) Fund Purposes ' The fund structure applicable to the Agency includes the following funds: • Current funds consist of: ' - Unrestricted funds - To be used for the ordinary operations and administration of the Agency. ' - Restricted funds - Funds which can be expended only for the specified purpose of the donor or grantor. ' • Land, buildings and equipment funds consist of: - Expended funds - Land, buildings, equipment and other assets owned by the Agency and used in its operations. ' (c) Government Grants and City Revenue ' The Agency receives a substantial portion of its operating funds from federal and California state grants which are awarded on an annual basis. These funds are deemed to be earned as reimbursable expenses are incurred. Revenues from City ' governments are received for juvenile diversion and youth crisis shelter care programs and are recognized when received. ' -7- ' COMMUNITY SERVICE PROGRAMS, INC. ' Notes to the Financial Statements (Continued) ' (1) Summary of Significant Accounting Policies (Continued) (d) Program Service Expenses ' Program service expenses represent direct and incremental costs incurred by the Agency to provide services under the respective assistance programs which are generally reimbursable under the related grant agreements. (e) Donated Services No amounts have been reflected in the accompanying financial statements for donated services as no objective basis is available to measure the value of such ' services; however, a substantial number of volunteers have donated significant time to the Agency's program and fund—raising activities. (f) Equipment The Agency follows the practice of capitalizing all equipment purchased with ' non—grant monies at cost. Depreciation is recorded on the straight line basis over the following estimated useful lives: Building 30 years ' Equipment 5 years (g) Paid Leave All regular employees of the Agency are eligible for paid leave accruals based on the percentage of time worked and years of employment at the Agency. ' Full—time employees with less than 10 years of employment at the Agency accrue 13 hours of paid leave for each month worked. Full—time employees with 10 or more years of service accrue 17 hours of paid leave for each month worked. It is ' the Agency's policy that paid leave be used for sickness, vacation and personal business. ' (h) Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Agency's financial position and operations. ' —8— COMMUNITY SERVICE PROGRAMS, INC. ' Notes to the Financial Statements (Continued) ' (2) Land. Buildings and Equipment Land, buildings and equipment are recorded at cost. Depreciation expense for the year ended June 30, 1993 amounted to $8,488. Land, buildings and equipment consist of the following at June 30, 1993: Land $260,000 ' Buildings and improvements 73,805 Equipment 32,085 Total 365,890 Less accumulated depreciation (60,592) ' Total, net of accumulated depreciation $305.298 ' (3) Retirement Plan The Agency has a defined contribution fixed annuity retirement plan for employees who meet certain service requirements. Employees are not eligible until they have reached age 18. In addition, employees hired prior to July 1, 1990 must complete six consecutive months of service; employees hired after July 1, 1990 must complete eighteen consecutive months of service. For each participant with one to four years of ' service, the Agency will contribute 3% of the employee's eligible compensation; the Agency's contribution increases to 4% for participants with five or more years of service. Retirement plan expense for the years ended June 30, 1993 and 1992 was ' $58,551 and $51,605, respectively. (4) Commitments and Contingency ' Future minimum rental payments under noncancellable building and equipment operating leases at June 30, 1993 are as follows. All rental agreements include an escape clause stating that the agreement may be terminated if the Agency should lose funding related to the program using the space/equipment. ' Year ending June 30 1994 $ 97,336 1995 53,658 ' 1996 4,315 1997 3,815 1998 638 ' —9— COMMUNITY SERVICE PROGRAMS, INC. 1 Notes to the Financial Statements (Continued) 1 1 (4) Commitments and Contingency. (Continued) 1 In 1985 the Agency received $25,000 under a noninterest bearing note agreement with the County of Orange, California. The proceeds were to be used for improvement of the Agency's youth shelter. The terms provide that the note will be fully forgiven at the end of a twenty-year period if certain terms and conditions are met, including the 1 Agency's continued ownership of the youth shelter and its dedicated use for youth and other community services. The note would become due in full immediately upon any default. Management intends to fully comply with the terms of the note agreement 1 and, accordingly, the $25,000 was recognized as revenue when received. 1 " 1 " 1 1 1 1 1 1 i 1 1 -10-