AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a … rpts/2015 area agency... · DAVID S....

AREA AGENCY ON AGING

OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE

FINANCIAL STATEMENTS (Audited) For the years ended December 31, 2015 and 2014

TABLE OF CONTENTS Pages Independent Auditors' Report 1-2 Financial Statements: Statements of Financial Position 3 Statements of Activities 4 Statements of Cash Flows 5 Statements of Functional Expenses 6-7 Notes to the Financial Statements 8-14 Supplementary Information: Schedule of Program Service Expenses 15 Schedule of Expenditures of Federal Awards and State Financial Assistance 16-17 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 18-19 Independent Auditors' Report on Compliance for Each Major Federal Program and State Project, and Report on Internal Control Over Compliance Required by the Uniform Guidance and Rules of the Auditor General 20-21 Schedule of Findings and Questioned Costs

- Summary of Auditors' Findings - Findings Related to the Financial Statements Required to be

Reported in Accordance with Government Auditing Standards - Findings and Questioned Costs for Federal Awards and State Financial Assistance 22

Auditors' Comments – Current Year (Management Letter) 23 Summary Schedule of Prior Audit Findings 23

DAVID S. HOLLAND, CPA

THOMAS F. REILLY, CPA

Board of Directors Area Agency on Aging

of Central Florida, Inc. Orlando, Florida

HOLLAND & REILLY CERTIFIED PUBLIC ACCOUNTANTS

601 NORTH FER N CREEK

SUITE 200

ORLA NDO, FLORIDA 328 0 3

(407) 894-6803

( 4 0 7) 8 9 6 -3 0 4 4 FAX

INDEPENDENT AUDITORS' REPORT

Report on the Financial Statements

AMERICA;'\! INSTITUTE OF

CERT!FIED PUBLIC .�CCOUNTAl\TS

FLORIDA INSTIIlJTE OF

CERTlFIEO PUBLIC ACCOUN1ANTS

ASSOCIATION OF

CERTIFIIED FRAU) EXAMNERS

We have audited the accompanying financial statements of Area Agency on Aging of Central Florida, Inc. (a nonprofit organization), d/b/a Senior Resource Alliance (the Agency) which comprise the statements of financial position as of December 31, 2014 and 2015 and the related statements of activities, cash flows, and functional expenses for the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opm10n on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Agency's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Area Agency on Aging of Central Florida, Inc., as of December 31, 2014 and 2015 and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Emphasis-of Matter

As discussed in Note 9 to the financial statements, the Agency is dependent on continued grant funding from the federal government and the State of Florida.

Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedule of program service expenses on page 15 is presented for additional analysis and the accompanying schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and Chapter 10.650, Rules of the Auditor General of the State of Florida, and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of program service expenses and the schedule of expenditures of federal awards and state financial assistance are fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated July 14, 2016 on our consideration of the Agency's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards m considering the Agency's internal control over financial reporting and compliance.

July 14, 2016 Orlando, Florida

AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC.d/b/a SENIOR RESOURCE ALLIANCE

STATEMENTS OF FINANCIAL POSITION

ASSETS

December 31,2015 2014

Current assets:Cash and cash equivalents $ 815,555 851,638 Receivable from governmental agencies 2,536,282 2,082,050 Accounts receivable 3,980 8,377 Prepaid expenses 24,044 7,048

Total current assets 3,379,861 2,949,113

Property and equipment, net 37,289 39,048

Total assets $ 3,417,150 2,988,161

LIABILITIES AND NET ASSETS

Current liabilities:Accounts payable 34,940 45,631 Accrued expenses 134,417 138,982 Payable to providers 2,004,645 1,671,577 Refundable advances 224,463 242,429 Deferred rent 36,633 46,857

Total current liabilities 2,435,098 2,145,476

Net assets:Unrestricted 982,052 842,685

Total liabilities and net assets $ 3,417,150 2,988,161

See accompanying notes.

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STATEMENTS OF ACTIVITIES

Year ended December 31,2015 2014

Public support and revenue:Public support:

Federal grants $ 8,515,530 8,403,954 State grants 6,236,808 5,617,621 Other grants and contributions 70,341 399,613

Other revenue 32,634 28,389 Interest income 2,280 1,481

Total public support and revenue 14,857,593 14,451,058

Expenses:Program services 13,825,994 13,346,990 Supporting services:

Management and general 892,232 885,961 Total expenses 14,718,226 14,232,951

Increase in net assets 139,367 218,107

Net assets, beginning of year 842,685 624,578

Net assets, end of year $ 982,052 842,685


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STATEMENTS OF CASH FLOWS


Cash flows from operating activities:Cash received from governmental agencies $ 14,280,140 13,865,238 Cash received from others 107,372 442,399 Interest income received 2,280 1,481 Cash paid to providers of goods and services (12,748,192) (12,091,866) Cash paid to employees and suppliers (1,666,358) (1,804,643)

Net cash provided by (used in) operating activities (24,758) 412,609

Cash flows from investing activities:Acquisition of property and equipment (11,325) (14,041)

Net cash used in investing activities (11,325) (14,041)

Net increase (decrease) in cash and cash equivalents (36,083) 398,568

Cash and cash equivalents at beginning of year 851,638 453,070

Cash and cash equivalents at end of year $ 815,555 851,638

Reconciliation of increase in net assets tonet cash provided by (used in) operating activities:

Increase in net assets 139,367 218,107

Adjustment to reconcile change in net assets tonet cash provided by (used in) operating activities:

Depreciation 13,084 12,346 Grants receivable (454,232) (241,854) Accounts receivable 4,397 14,397 Prepaid expenses (16,996) 30,857 Accounts payable (10,691) 13,551 Accrued expenses (4,565) (36,664) Payable to providers 333,068 269,495 Refundable advance (17,966) 85,517 Deferred rent (10,224) 46,857

Net cash provided by (used in) operating activities: $ (24,758) 412,609


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STATEMENT OF FUNCTIONAL EXPENSESfor the year ended December 31, 2015

Program ServicesNutrition CCE

Older Emergency Services Elder Triage Community Home Care Alzheimer'sAmericans Home Incentive Driver and Care for for the Disease

Act Energy Program SHINE Safety Intake the Elderly Elderly Initiative RELIEF MIPPA

Personnel $ 227,598 45,556 - 70,745 963 141,958 - 60,399 - 10,342 1,255 Travel 816 209 - 21,973 1,087 - - - - 96 - Building space 10,319 1,953 - 4,876 1,009 5,295 - 2,324 - 433 - Communication and utilities 2,549 1,041 - 7,635 17 4,693 - 775 - 102 - Printing and supplies 24 1,900 - 9,242 - 1,548 - 161 - - - Service subcontractors 5,827,304 325,536 544,616 - - - 4,049,865 54,872 1,150,303 120,211 62,555 Client subsidy payments - - - - - - - 277,334 - - - Professional fees - - - - - - - - - - - Insurance - - - 718 - - - - - - - Maintenance and repairs 64 - - 64 - - - - - - - Other purchased services 4,886 - - 3,329 6,682 355 - - - - - Advertising - - - 5,122 - - - - - - - Other miscellaneous expenses 375 213 - 4,370 593 196 - 53 - - - Lobbying expense - - - - - - - - - - -

Total functional expenses before depreciation 6,073,935 376,408 544,616 128,074 10,351 154,045 4,049,865 395,918 1,150,303 131,184 63,810

Depreciation - - - - - - - - - - -

Total functional expenses $ 6,073,935 376,408 544,616 128,074 10,351 154,045 4,049,865 395,918 1,150,303 131,184 63,810

Continued

PersonnelTravelBuilding spaceCommunication and utilitiesPrinting and suppliesService subcontractorsClient subsidy paymentsProfessional feesInsuranceMaintenance and repairsOther purchased servicesAdvertisingOther miscellaneous expensesLobbying expense

Total functional expenses before depreciation

Depreciation

Total functional expenses

Program ServicesWinter First UMC FPN SAGEPark Aging and Brain UHC Florida Conference Total

Health Neighbors Disability Car Fitness Healthy Health and program Admini- TotalFoundation Network Resource Fit Club Living Network Workshop services strative expenses

- - 506,303 - - - - - 1,065,119 596,674 1,661,793 4,740 1,916 287 - 2,195 268 - - 33,587 14,922 48,509

- - 21,489 - - - - - 47,698 68,902 116,600 - 1,041 12,069 863 265 - 19 36 31,105 10,343 41,448 - 1,476 6,765 13,431 330 - 68 791 35,736 6,420 42,156

4,956 - - - - 19,286 1,200 - 12,160,704 75 12,160,779 - - - - - - - - 277,334 - 277,334 - 750 - - - - - - 750 22,100 22,850 - 138 - - - - - - 856 12,007 12,863 - - 121 - - - - - 249 7,007 7,256

6,000 5,859 1,261 96,000 24,121 - 160 - 148,653 121,819 270,472 - 1,901 - - - - - - 7,023 630 7,653 - 9,558 980 34 265 - 543 - 17,180 11,249 28,429 - - - - - - - - - 7,000 7,000

15,696 22,639 549,275 110,328 27,176 19,554 1,990 827 13,825,994 879,148 14,705,142

- - - - - - - - - 13,084 13,084

15,696 22,639 549,275 110,328 27,176 19,554 1,990 827 13,825,994 892,232 14,718,226


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STATEMENT OF FUNCTIONAL EXPENSESfor the year ended December 31, 2014

Program ServicesNutrition CCE

Older Emergency Services Elder Triage Community Home Care Alzheimer'sAmericans Home Incentive Driver Medicaid and Care for for the Disease

Act Energy Program SHINE Safety Waiver Intake the Elderly Elderly Initiative RELIEF

Personnel $ 254,638 49,312 - 82,028 1,322 64,501 62,828 - 63,144 - 11,903 Travel 122 127 - 23,418 749 - - - - - - Building space 6,206 2,081 - 3,237 1,029 1,261 1,438 - 1,401 - 264 Communication and utilities 2,808 1,097 - 6,892 18 1,095 922 - 733 - 50 Printing and supplies 32 258 - 13,194 - 43 - - - - - Service subcontractors 5,807,288 289,476 520,991 - - - - 3,860,411 42,972 907,925 108,868 Client subsidy payments - - - - - - - - 227,930 - - Professional fees - - - - - - - - - - - Insurance - - - 555 - - - - - - - Maintenance and repairs 81 9 - 76 13 78 260 - 11 - 2 Other purchased services 4,500 504 - 2,989 4,308 - - - - - - Advertising - - - 5,577 - - - - - - - Other miscellaneous expenses 420 182 - 2,896 469 254 - - 61 - - Lobbying expense - - - - - - - - - - -

Total functional expenses before depreciation 6,076,095 343,046 520,991 140,862 7,908 67,232 65,448 3,860,411 336,252 907,925 121,087

Depreciation - - - - - - - - - - -

Total functional expenses $ 6,076,095 343,046 520,991 140,862 7,908 67,232 65,448 3,860,411 336,252 907,925 121,087

Continued

PersonnelTravelBuilding spaceCommunication and utilitiesPrinting and suppliesService subcontractorsClient subsidy paymentsProfessional feesInsuranceMaintenance and repairsOther purchased servicesAdvertisingOther miscellaneous expensesLobbying expense

Total functional expenses before depreciation

Depreciation

Total functional expenses

Program ServicesWinter CMS First UMC FPN SAGEPark Aging and CCTP Brain Communities Conference Total

Health Neighbors Disability Car Care Fitness for a and program Admini- TotalFoundation Network Resource Fit Transition Club Lifetime Workshop services strative expenses

- - 452,524 - 136,805 - - - 1,179,005 588,974 1,767,979 10,000 - - - 7,498 744 - - 42,658 14,439 57,097

- - 10,479 - 1,340 - - - 28,736 98,837 127,573 28 784 11,821 1,103 2,248 54 - 35 29,688 10,899 40,587

2,453 381 9,596 14,835 45 25 580 - 41,442 17,263 58,705 - - - - - - - - 11,537,931 - 11,537,931 - - - - - - - - 227,930 - 227,930 - - - - - - - - - 21,900 21,900 - 843 - - - - - - 1,398 12,446 13,844 - - 72 - 24 - - - 626 4,495 5,121

1,335 27,734 - 153,600 25 8,676 2,667 3,000 209,338 89,846 299,184 1,480 3,525 - 30,929 - - - - 41,511 23 41,534

79 1,246 1,019 43 27 31 - - 6,727 9,493 16,220 - - - - - - - - - 5,000 5,000

15,375 34,513 485,511 200,510 148,012 9,530 3,247 3,035 13,346,990 873,615 14,220,605

- - - - - - - - - 12,346 12,346

15,375 34,513 485,511 200,510 148,012 9,530 3,247 3,035 13,346,990 885,961 14,232,951


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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a SENIOR RESOURCE ALLIANCE

NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies:

Organization and activities – Area Agency on Aging of Central Florida, Inc. d/b/a Senior Resource Alliance (the Agency) was incorporated on September 22, 1992, as a private, non-profit, regional agency designated by the State of Florida in accordance with the Older Americans Act of 1965 and in the State Community Care for the Elderly Act. Since 1974, the Agency had operated as a division of the East Central Florida Regional Planning Council (Council) and began operating as a freestanding entity on January 1, 1993, at which time all authority passed from the Council to the Agency's Board of Directors.

The Agency administers a network of services for the aging population in Orange, Osceola, Brevard and Seminole counties. The goal of the Agency is to strive to meet the nutritional and social needs of the aging population in this geographical area. "Aging" is defined as age 60 or older. To carry out this goal, the Agency conducts annual assessments of the needs of the elderly population, determines resources available to satisfy these needs, and then plans and coordinates programs using available resources to alleviate the identified needs. Generally, financial resources are in the form of governmental grants. The Agency awards these monies in the form of "service provider contracts" to the appropriate local organizations which provide the service to the aging population.

Basis of presentation - Financial presentation follows the recommendations of the Financial Accounting Standards Board. The Agency is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets, based on the existence or absence of donor-imposed restrictions. A donor-imposed restriction is a stipulation that specifies a use for a contributed asset that is more specific than broad limits resulting from the nature of the Agency, the environment in which it operates, and the purposes specified in its articles of incorporation or by-laws. The Agency has no temporarily or permanently restricted net assets at December 31, 2015 or 2014.

Basis of accounting - The financial statements have been prepared on the accrual basis of accounting in accordance with the accounting and reporting practices promulgated by the American Institute of Certified Public Accountants (AICPA) for not-for-profit organizations.

Restricted and unrestricted revenue and support - Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Donor restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions. Restricted contributions received in the same year the donor's restriction is met are recorded as unrestricted contributions. Support – Support revenues from federal grants with the U.S. Department of Health and Human Services and U.S. Department of Transportation, and state grants with the Florida Department of Elder Affairs are recorded based upon the terms of the grantor allotment, which generally provide that revenues are earned when the allowable costs of the specific grant provisions have been incurred within approved budget categories. Costs in excess of budgeted amounts are not grant reimbursable expenses. Advance payments from the Agency's grantor agencies are recorded as refundable advances until they are expended for the purposes of the grant.

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NOTES TO THE FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies - Continued: Property and equipment - Property and equipment are recorded at cost. Donated property and equipment are valued at fair market value at the date of donation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which range from 3 to 5 years. The Agency's policy is to capitalize property and equipment with a cost of $1,000 or more.

Income taxes – The Agency is organized as a not-for-profit organization and is currently exempt from federal income taxes under the provisions of Section 501(c)(3) of the Internal Revenue Code. Accordingly, no provision for federal or state income taxes is reflected in the accompanying financial statements.

Compensated absences – The Agency's policy is to pay employees upon termination for unused annual leave. The maximum accrual for each employee is two years and ranges from 140 hours to 330 hours based on the employee's length of service with the Agency and hours worked per week. A liability for accrued compensated absences has been reported in the accompanying financial statements.

Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Functional allocation of expenses - The costs of providing program services and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among the program services and supporting services benefited.

Cash and cash equivalents - Cash and cash equivalents are defined as highly liquid investments that have an original maturity of three months or less. Donated rent – The present value of donated rent of $46,857 is being amortized over a 65 month lease period. The amortization of $10,224 is included in expense and deferred rent of $36,633 is recorded on the Statement of Net Position. Donated services – The Agency records the value of donated goods and services as both revenue and expense when there is an objective basis available to measure its value. Donated services from the Board of Directors members, advisory councils, and other committee members are not recorded by the Agency since the services do not meet the criteria of the Financial Accounting Standards Board. Concentration of credit risk – The Agency receives a majority of its funding from federal and state governments. Any significant decrease in the Agency's federal and state grants would have an adverse effect on operations.

Fair value of financial instruments - The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is feasible to estimate that value. Cash and cash equivalents and accounts receivable/payables - Carrying amount approximates fair

value due to the short maturity of these instruments. -9-


NOTES TO THE FINANCIAL STATEMENTS 2. Description of Programs:

Older Americans Act – Under the Older Americans Act federal legislation, U.S. residents over 60 are eligible for services with priority given to the people with the most economic and social need. These services include congregate and home-delivered meals, nutrition education, homemaker, transportation, information, referral, outreach, education, employment and legal services. Emergency Home Energy for the Elderly (EHEAP) – This federally-funded program provides assistance for low income elderly persons who are in danger of having their power turned off due to non-payment. Fan purchases and air conditioner repair are part of the summer program and blanket purchases are part of the winter program. Nutrition Services Incentive Program – This federally-funded program is used to support nutrition programs for the elderly in the geographical region. The Agency provides reimbursement to nutrition service providers for meals served to the elderly. Program regulations require service providers to expand the meals being served to the elderly with the reimbursement of funds.

Serving Health Insurance Needs of Elders (SHINE) – This federally-funded program offers free health insurance counseling to elders and their caregivers. Trained volunteers provide information, counseling, and assistance in areas related to Medicare, Medicaid, long-term care insurance, managed care, and supplemental insurance. DriveAble Assessment Program – This program provides competence testing for medically at-risk drivers, which includes computer-based assessment of mental and motor skills, and, where appropriate, road tests administered by trained professionals. Mobility counseling is provided to inform at-risk individuals of available alternatives to driving. Medicaid Waiver – This state-funded program assists area service providers with the process of selecting and registering clients in the Medicaid Waiver program. The overall goal of the process is to select the most appropriate clients in order to maximize Medicaid Waiver earnings for the district. Triage and Intake (CCE) – This state-funded program provides in-depth telephone assessment and consultation for older adults and caregivers who have social service needs. Triage and intake staff assess older adults who are in need of home and community based services or who are at risk of nursing home placement to see if they are eligible for Medicaid Waiver or similar services (such as Long Term Diversion services). Community Care for the Elderly (CCE) – This State of Florida General Revenue program provides in-home services for clients 60 and over who have been assessed as functionally impaired by trained case managers. This program includes follow-up visits and provides links to other community services. The services include case management, homemaker, personal care, respite, emergency alert response, and medical transportation.

Home Care for the Elderly (HCE) – This state-funded program encourages the provision of care for elders age 60 and older in family-type living arrangements in private homes as an alternative to nursing homes or other institutional care. A basic subsidy is provided for support and maintenance of the elderly, including medical costs. A special subsidy may also be provided for additional services and supplies which are needed.

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2. Description of Programs - Continued: Alzheimer's Disease Initiative – This state-funded program provides respite care services, including in-home services for the victims of Alzheimer's disease, and provides training for caregivers of these victims. Respite for Elders Programs Living in Everyday Families (RELIEF) – This state-funded program offers an expansion of currently available in-home respite, specifically evening and weekend respite, in order to increase the ability of a family unit to continue to care for a homebound elderly individual beyond the basic provisions of current public programs. Medicare Improvements for Patients and Providers Act of 2008 (MIPPA) – This federally-funded program provides programmatic support to the SHINE program. The MIPPA program is intended to conduct targeted, community-based outreach to an increasing number of beneficiaries, with limited income and resources, who are eligible to receive assistance through this program.

Winter Park Health Foundation – This private foundation provides grants for projects which enhance the quality of life and community for older adults. Programs include Leadership Matters, Aging Matters, person directed care, and educational and training support. Neighbors Network – This is a member-driven organization initially funded through the Winter Park Health Foundation, dedicated to providing persons 55+ access to the support they need to age in their homes and community, primarily using volunteers, and recommending vetted service providers when necessary. The aim of Neighbors Network is to foster independence as well as interdependence. Aging and Disability Resource – This state-funded program establishes a single, coordinated system of information and access to community-based services for seniors and their caregivers.

Car Fit – This federally funded educational program provides older adults the opportunity to find out how well their vehicles "fit" them and provides information and materials to enhance safety. CMS Community-based Care Transition Program (CCTP) – This program, funded by the Centers for Medicare and Medicaid Services (CMS), assists patient during medical transition to reduce the risk of hospital readmission, utilizing transition coaches to help the patient/caregiver over the 30 day post-discharge period.

First United Methodist Church Brain Fitness Club – This locally funded program is geared to serve the elderly who are experiencing early memory loss. It is a program that promotes mental stimulation through music, art, reading, socialization, and light exercise, with the goal to enhance or maintain their individual cognitive functions. United Health Care (UHC) Healthy Living – This program provides funding for wellness programs (Matter of Balance) and caregiver support programs (Savvy Caregiver). Florida Health Network – This program provides funding to develop a menu of evidence-based programs that lead to improved health promotion and comprehensive care coordination services.

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2. Description of Programs - Continued:

Communities For A Lifetime (CFAL) – This state-funded grant provides funding for community leaders and civic groups to facilitate social involvement and create innovative collaborations to help residents and leaders create a better place to live for elders and all residents.

FPN Society for the Advancement of Gerontological Environments (SAGE) Conference and Workshop - This conference shares information and best practices about how nursing home architects and builders can implement the principles of person-centered care as they design, develop, and open new facilities.

3. Cash and Cash Equivalents:

Cash and cash equivalents of the Agency include checking accounts maintained in a financial institution which is insured by the Federal Deposit Insurance Corporation (FDIC). At December 31, 2015, the Agency exceeded the insured limit by $565,555. In addition, a grant by the Florida Department of Transportation requires the grant proceeds to be maintained and accounted for in a separate bank account. At December 31, 2015, the Agency held $4,585 in funds for a third party as fiscal agent. These funds are considered restricted and included in accrued liabilities.

4. Receivable From Governmental Agencies:

Grants receivable at December 31, 2015 and 2014 are as follows:

2015 2014 U.S Department of HHS $1,402,342 $1,238,755

Florida Department of Elder Affairs 1,109,366 793,099 Florida Department of Transportation 24,574 50,196 $2,536,282 $2,082,050 5. Property and Equipment:

Property and equipment consists of the following at December 31, 2015 and 2014: 2015 2014 Furniture and fixtures $ 59,887 $ 58,561 Leasehold improvements 31,238 31,238 Computer equipment 114,531 106,246 205,656 196,045 Less accumulated depreciation ( 168,367) ( 156,997) Net property and equipment $ 37,289 $ 39,048

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NOTES TO THE FINANCIAL STATEMENTS 6. Lease Commitments:

Operating Leases

The Agency leases office space and equipment under noncancellable operating leases that expire from December 2016 to July 2019. Lease expense for these leases amounted to $119,389 and $127,772 for the years ended December 31, 2015 and 2014 respectively. Future minimum rental payments under these operating leases as of December 31, 2015 are as follows: Year ending

December 31, Facilities Equipment Total 2016 $ 131,604 $ 2,791 $ 134,395 2017 135,550 - 135,550 2018 139,631 - 139,631 2019 83,592 - 83,592 Total $ 490,377 $ 2,791 $ 493,168

Deferred Rent – The Agency extended its existing facility by entering into a sixty-five month lease beginning March 1, 2014. The first five months’ rent was free. Monthly lease payments of $10,386, plus common area maintenance charges (CAM) began in August 2014 and will increase 3% annually each March 1. The Agency has the option of extending the lease term for an additional 36 months commencing August 2019. Total lease expense for the facility lease totaled $116,600 (including CAM) and net of the recognition of amortized deferred rent of $10,224. Deferred rent is being recognized on a level basis over the term of the lease.

7. Retirement Plan:

The Agency has a 401(k) savings plan that began January 1, 2010. Under the original plan, an employee was eligible to participate after six months of service with no age limitation. Effective January 1, 2014, the plan was amended, allowing an employee to participate after one year of service, dependent on 1,000 hours of service, with a minimum age requirement of 21. Employees may make contributions to this plan up to the dollar limit allowed by the Internal Revenue Code. The plan does not allow matching employer contributions but does allow employer contributions equal to 10% of eligible participants' annual compensation. In 2015 and 2014, the Agency contributed $104,572 and $109,574, respectively. The 2015 and 2014 contributions do not include the application of the Agency's forfeiture balances of $1,591 and $10,678, respectively.

8. Matching Requirements:

The Agency must meet contractual matching requirements through cash and/or in-kind contributions. These requirements are proportionately passed on to the Agency's providers through contractual provisions in their subcontracts. The subcontract provider's match is reported to the Agency and tracked to ensure that all contractual matching requirements are met. However, the match provided by the Agency's providers is not recognized in the financial statements of the Agency.

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NOTES TO THE FINANCIAL STATEMENTS 9. Commitments and Contingencies:

Grants require the fulfillment of certain conditions set forth in the grant agreements. Failure to fulfill or comply with the conditions could result in the return of funds to the grantor. Although this is a possibility, the Board considers the contingency remote, since by accepting the grants it has accommodated the objectives of the organization to the provisions of the grants.

The Agency receives a substantial amount of its support from the U.S. Department of Health and Human Services ($8,515,530 and $8,187,450 in 2015 and 2014 respectively) and the Florida Department of Elder Affairs ($6,236,808 and $5,617,622 in 2015 and 2014 respectively). A significant reduction in the level of this support, if this were to occur, may have an effect on the Agency's activities.

10. Subsequent Events:

Management has evaluated events and transactions for potential recognition or disclosure through July 14, 2016, the date on which the financial statements were available to be issued.

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SCHEDULE OF PROGRAM SERVICE EXPENSES


Older Americans Act $ 6,073,935 6,076,095 Emergency Home Energy 376,408 343,046 Nutrition Services Incentive Program 544,616 520,991 SHINE 128,074 140,862 Driveable Assessment Program 10,351 7,908 Medicaid Waiver - 67,232 Triage 154,045 65,448 Community Care for the Elderly 4,049,865 3,860,411 Home Care for the Elderly 395,918 336,252 Alzheimer's Disease Initiative 1,150,303 907,925 RELIEF 131,184 121,087 MIPPA 63,810 - Winter Park Health Foundation 15,696 15,375 Neighbors Network 22,639 34,513 Aging and Disability Resource 549,275 485,511 Car Fit 110,328 200,510 CMS CTTP Care Transition - 148,012 First United Methodist Church Brain Fitness Club 27,176 9,530 UHC Healthy Living 19,554 - FL Health Network 1,990 - Communities for a Lifetime - 3,247 FPN SAGE Conference and Workshop 827 3,035

Total program services $ 13,825,994 13,346,990

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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCEYear ended December 31, 2015

Federal Agency/State Agency CFDA/ Contract/ AmountPass-through Grantor CSFA Grant Total provided toProgram/Project Title number number expenditures subrecipients

FEDERAL AWARDSU.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES-

ADMINISTRATION ON AGINGPassed through Florida Department of Elder Affairs:

Special Programs for Aging, Title III, Admin,I&R, LAN Mgmt and Part B, Support Services 93.044 GA015 $ 3,033,696 $ 1,947,478

Special Programs for Aging, Title III, Part C-1, Congregate Meals 93.045 GA015 1,186,542 1,186,542 Special Programs for Aging, Title III, Part C-2, Home Delivered Meals 93.045 GA015 1,842,562 1,842,562

3,029,104 3,029,104

Special Programs for Aging, Title III, Part D 93.043 GA015 175,113 175,113

Special Programs for Aging, Title III, Part E, National Family Caregiver Support 93.052 GA015 675,609 675,609

Special Programs for Aging, Title VII, Elder Abuse Prevention 93.041 G7015 21,267 -

Emergency Home Energy Assistance for the Elderly Program 93.568 GP014 119,180 114,878 Emergency Home Energy Assistance for the Elderly Program 93.568 GP015 257,228 210,658

376,408 325,536

SHINE 93.779 GN013 32,476 - SHINE 93.324 GN015 95,598 -

128,074 -

Aging and Disability Resource Center 93.778 GX014 137,457 - Aging and Disability Resource Center 93.778 GX015 137,181 -

274,638 -

MIPPA 93.071 GB015 45,218 45,218 MIPPA 93.071 GB016 18,592 17,337

63,810 62,555

Nutrition Services Incentive Program 93.053 GU015 418,839 418,839 Nutrition Services Incentive Program 93.053 GU016 125,777 125,777

544,616 544,616

TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES -ADMINISTRATION ON AGING 8,322,335 6,760,011

U.S. DEPARTMENT OF TRANSPORTATIONPassed throught Florida Department of Transportaion

Elder Road User Program 20.600 ARM20 87,536 - Elder Road User Program 20.600 G0494 22,792 -

TOTAL U.S. DEPARTMENT OF TRANSPORTATION 110,328 -

TOTAL EXPENDITURES OF FEDERAL AWARDS $ 8,432,663 $ 6,760,011

Continued

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Federal Agency/State Agency CFDA/ Contract/ Amount Pass-through Grantor/ CSFA Grant Total providedProgram/Project Title number number expenditures subrecipients

STATE FINANCIAL ASSISTANCEFLORIDA DEPARTMENT OF ELDER AFFAIRS

Home Care for the Elderly 65.001 GH014 $ 227,739 $ 32,442 Home Care for the Elderly 65.001 GH015 168,179 22,430

395,918 54,872

Alzheimer's Disease Initiative 65.004 GZ014 550,435 550,435 Alzheimer's Disease Initiative 65.004 GZ015 599,868 599,868

1,150,303 1,150,303

Aging and Disability Resource Center 65.010 GX014 137,456 - Aging and Disability Resource Center 65.010 GX015 137,181 -

274,637 -

RELIEF 65.006 GR014 66,137 60,643 RELIEF 65.006 GR015 65,047 59,568

131,184 120,211

Community Care for the Elderly/Triage 65.010 GC014 2,156,422 2,076,035 Community Care for the Elderly/Triage/Intake 65.010 GC015 2,047,488 1,973,830

4,203,910 4,049,865

TOTAL FLORIDA DEPARTMENT OF ELDER AFFAIRS 6,155,952 5,375,251

TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 6,155,952 $ 5,375,251

NOTE - This schedule of expenditures and federal awards and state financial assistance includes the federal and state grantactivity of Area Agency on Aging of Central Florida, Inc. d/b/a Senior Resource Alliance and is presented on the accrual basisof accounting. The information in this schedule is presented in accordance with the requirements of the Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparationof, the basic financial statements. Because this schedule presents only a selected portion of the operations of Area Agency onAging of Central Florida, Inc., it is not intended to and does not present the financial position, changes in net assets, or cashflows of Area Agency on Aging of Central Florida, Inc.

d/b/a SENIOR RESOURCE ALLIANCEAREA AGENCY ON AGING OF CENTRAL FLORIDA, INC.

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE - ContinuedYear ended December 31, 2015

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DAVIDS. HOLLAND, CPA



601 NORTH FERN CREEK

SUITE 200

ORLANDO, FLORIDA 32803

(407) 894-6803

( 4 0 7) 8 9 6 - 3 0 4 4 FAX

AMERICAN INSTITL'TE OF

CERTIFIED PCBl.IC ACCOCNTA."\"TS

FLORIDA INSTITUTE OF

CERTIFIED PUBLIC ACCOUNTANTS

ASSOCIATIOJ\" OF

CERTIFIIED FR'\UD EXAMINERS

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS



We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Area Agency on Aging of Central Florida, Inc. (the Agency) (a nonprofit organization), which comprise the statement of financial position as of December 31, 2015, and the related statements of activities, cash flows, and functional expenses for the year then ended, and· the related notes to the financial statements, and have issued our report thereon dated July 14, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Agency's 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 the Agency' s internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency' s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Agency' s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Agency's financial statements are free from 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. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe 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 the Agency; s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Agency's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Orlando, Florida July 14, 2016

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DAVIDS. HOLLAND, CPA



601 NORTH FER N CREEK

SUITE 200

ORLA NDO, FLORIDA 32803

(407) 894-6803

( 4 0 7) 8 9 6 -3 0 4 4 FAX

AMERJCAN tNSTn'UTE OF


FLORIDA INSTITUTE OF


ASSOCIATION OF

CERTIFIJED FRAUD EXAMINERS

INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH

MAJOR FEDERAL PROGRAM AND STATE PROJECT AND

REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND



RULES OF THE AUDITOR GENERAL

Report on Compliance for Each Major Federal Program and State Project

We have audited Area Agency on Aging of Central Florida, Inc.'s (the Agency) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the Florida Department of Financial Service's State Projects Compliance Supplement that could have a direct and material effect on each of its major federal programs and state projects for the year ended December 31, 2015. The Agency's major federal programs and state projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs.

Management's Responsibility

Management is responsible for compliance with federal and state statutes, regulations, and the terms and conditions of its federal and state awards applicable to its federal programs and state projects.

Auditors' Responsibility

Our responsibility is to express an opinion on compliance for each of the Agency's major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Chapter 10.650, Rules of the Auditor General. Those standards, the Uniform Guidance, and Chapter 10.650, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the Agency's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the Agency's compliance.

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Opinion on Each Major Federal Program and State Project

In our opinion, the Agency complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended December 31, 2015.

Report on Internal Control Over Compliance

Management of the Agency is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Agency's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program or state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.650 but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project 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 compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weakness. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.650. Accordingly, this report is not suitable for any other purpose.

July 14, 2016

Orlando, Florida

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS

I. Summary Of Auditors' Findings Financial Statements 1. We have audited the financial statements of Area Agency on Aging of Central Florida, Inc. as of and

for the year ended December 31, 2015 and issued an unmodified opinion, dated July 14, 2016. 2. A. Material weaknesses identified? - No

B. Significant deficiencies identified not considered to be material weaknesses? – None reported

3. The results of our audit tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

Federal Awards and State Financial Assistance 4. A. Material weaknesses identified? - No

B. Significant deficiencies identified not considered to be material weaknesses? – None reported 5. Our report issued on compliance for major programs and state projects was unmodified. 6. Our audit disclosed no audit findings that are required to be reported in accordance with the Uniform

Guidance (2 CFR 200.516(a)), or the Rules of the Auditor General. 7. Major federal programs and state projects identified on the Schedule of Expenditures of Federal

Awards and State Financial Assistance are as follows:

Federal Program: CFDA Number U.S. Department of Health and Human Services 93.044, 93.045, 93.052, 93.053 State Project: CSFA Number

Florida Department of Elder Affairs 65.004, 65.010

8. The threshold used to distinguish between Type A and Type B programs for major Federal programs (low risk auditee) is $750,000 and $300,000 for major State projects.

9. The Agency qualified as a low-risk auditee under the provisions of the Uniform Guidance.

II. Findings Related To The Financial Statements Required To Be Reported Under

GOVERNMENT AUDITING STANDARDS

None

III. Findings And Questioned Costs For Federal Awards and State Financial Assistance

None

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AUDITORS' COMMENTS – CURRENT YEAR (Management Letter)

NONE

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

NONE

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AREA AGENCY ON AGING OF CENTRAL FLORIDA, INC. d/b/a … rpts/2015 area agency... · DAVID S....

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