COMMUNITY ACTION PARTNERSHIP OF KERN FINANCIAL REPORT … · FINANCIAL REPORT FEBRUARY 28, 2014 AND...

COMMUNITY ACTION PARTNERSHIP OF KERN

FINANCIAL REPORT

AND THE INDEPENDENT AUDITOR’S REPORT

FOR THE YEARS ENDED

FEBRUARY 28, 2014 AND 2013

COMMUNITY ACTION PARTNERSHIP OF KERN FINANCIAL REPORT


TABLE OF CONTENTS

Page Independent Auditor’s Report ............................................................................................................ 1 FINANCIAL STATEMENTS Statements of Financial Position ................................................................................................. 3 Statements of Operations ............................................................................................................ 4 Statements of Cash Flows ........................................................................................................... 6 Notes to Financial Statements ..................................................................................................... 7 SUPPLEMENTARY INFORMATION Schedule of Expenditures of Federal and State Awards ............................................................. 15 Notes to Schedule of Expenditures of Federal and State Awards .............................................. 18 California Department of Community Services and Development Supplemental Schedule of Revenue and Expenditures: Contract No. 13F-3015 (CSBG) ............................................................................................ 19 Contract No. 11C-1812 (DOE WAP) ..................................................................................... 20 Contract No. 11B-5713 (LIHEAP Weatherization) ................................................................ 21 Contract No. 11B-5713 (LIHEAP/ECIP/Assurance 16/HEAP).............................................. 22 Contract No. 12B-5812 (LIHEAP Weatherization) ................................................................ 23 Contract No. 12B-5812 (LIHEAP/ECIP/Assurance 16/HEAP).............................................. 24 Contract No. 13B-5012 (LIHEAP Weatherization) ................................................................ 25 Contract No. 13B-5012 (LIHEAP/ECIP/Assurance 16/HEAP).............................................. 26 Schedules of Revenue and Expenditures: California State Preschool Programs – California Department of Education Contract No. CSPP-2117 ................................................................................... 27 Child and Adult Care Food – California Department of Education Contract No. 15-1248-OJ ................................................................................... 28 Community Services Block Grant No. 13F-3015 .................................................................. 29 County of Kern – 211 Agreement No. 719-2011 .................................................................. 30 County of Kern – Bioterrorism I&R ....................................................................................... 31 County of Kern Disaster Preparedness ................................................................................ 32 Department of Energy – Weatherization – DOE Grant No. 11C-1812 ................................. 33 Differential Response ........................................................................................................... 34 Early Head Start/Head Start Award No. 09CH7051/48 ....................................................... 35 Emergency Food and Shelter – Phase 30 ........................................................................... 36 Emergency Food Assistance Program – MOU No. 10-6035 ................................................ 37 Facilities Renovation and Repair – California Department of Education Contract No. CRPM-0023 ................................................................................. 38 First 5 Kern – 211 Agreement No. 2010.1.10 ....................................................................... 39 First 5 Kern – East Kern Family Resource Center Agreement No. 2013.2.1 ....................... 40 General Child Care and Development Program – California Department of Education Contract No. CCTR-2057 ........................................................... 41

Page Schedules of Revenue and Expenditures (Continued): Information and Education Grant No. 11-10281 ................................................................... 42 Kaiser-Friendship House Community Center Grant No. 20621472 .................................... 43 Low Income Home Energy Assistance Program Grant No. 11B-5713 ................................ 44 Low Income Home Energy Assistance Program Grant No. 12B-5812 ................................ 45 Low Income Home Energy Assistance Program Grant No. 13B-5012 ................................ 46 Migrant Alternative Payment – California Department of Education Contract No. CMAP-2000 ................................................................................ 47 Southern California Gas Company ...................................................................................... 48 State Tax Check Off ............................................................................................................. 49 Substance Abuse Program Grant No. 345-2012 ................................................................. 50 Summer Food Service for Children – California Department of Education Contract No. 15-9150-OS .................................................................................. 51 Supplemental Nutrition Assistance Program Grant No. 12-10125 ...................................... 52 Volunteer Income Tax Assistance ........................................................................................ 53 Women, Infants, and Children (WIC) Grant No. 11-10443 ................................................... 54 Statements of Functional Expenses ............................................................................................ 55 OTHER INDEPENDENT AUDITOR’S REPORTS Independent Auditor’s 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 ........................... 57 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 ......................................... 59 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on the First 5 Kern 211, East Kern Family Resource Center and Differential Response Program and on Internal Control Over Compliance in Accordance with the Program Specific Audit Option Under OMB Circular A-133 ........................................................................................................ 61 FINDINGS AND RECOMMENDATIONS Schedule of Findings and Questioned Costs .............................................................................. 63 Summary Schedule of Prior Audit Findings ................................................................................. 65

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INDEPENDENT AUDITOR’S REPORT Board of Directors Community Action Partnership of Kern Report on the Financial Statements We have audited the accompanying financial statements of Community Action Partnership of Kern (a nonprofit organization) (the Organization), which comprise the statements of financial position as of February 28, 2014 and 2013, and the related statements of operations and cash flows 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. Auditor’s Responsibility Our responsibility is to express an opinion 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 auditor’s 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 Organization’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 Organization’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.

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Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of February 28, 2014 and 2013, 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 Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of revenues and expenditures and the statements of functional expenses are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also 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 information is 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 November 14, 2014, on our consideration of the Organization’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization’s internal control over financial reporting and compliance. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California November 14, 2014

See Notes to Financial Statements. 3

COMMUNITY ACTION PARTNERSHIP OF KERN STATEMENTS OF FINANCIAL POSITION


2014 2013ASSETS

Current Assets:Cash 2,610,791$ 2,206,976$ Grants and contracts receivable (Note 2) 4,885,392 3,118,336 Inventory (Note 3) 941,011 976,647 Prepaid expenses 292,219 74,346

Total current assets 8,729,413 6,376,305

Noncurrent Assets:Property and equipment (Note 4) 14,724,092 15,535,269

Total assets 23,453,505$ 21,911,574$

LIABILITIES AND NET ASSETS

Current Liabilities:Notes payable (Note 5) 1,000,000$ 1,000,000$ Current maturities of long-term debt (Note 6) 321,904 317,532 Accounts payable 2,352,312 1,040,431 Accrued expenses 3,063,194 2,106,777 Advances payable 192,933 63,445 Deferred revenue (Note 9) 982,507 1,222,579

Total current liabilities 7,912,850 5,750,764

Noncurrent Liabilities:Long-term debt, less current maturities (Note 6) 3,700,741 4,022,645 Derivative instrument- interest rate swap 468,323 626,933

Total liabilities 12,081,914 10,400,342

Net Assets:Temporarily restricted (Note 10) 143,441 181,139 Unrestricted 11,228,150 11,330,093

Total net assets 11,371,591 11,511,232

Total liabilities and net assets 23,453,505$ 21,911,574$


COMMUNITY ACTION PARTNERSHIP OF KERN STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED FEBRUARY 28, 2014 AND 2013

TemporarilyUnrestricted Restricted Total

Program revenues:Federal grants 40,669,179$ -$ 40,669,179$ State grants 3,445,435 - 3,445,435 Local grants 206,959 57,000 263,959

Public support:Contributions in-kind (Note 1) 129,652 - 129,652

Donations:Food 5,250,940 - 5,250,940 Cash 6,297 333,842 340,139

Gain (loss) on sale of assets (27,143) - (27,143) Gain (loss) on market value of swap

contracts (Note 6) 158,609 - 158,609 Other 634,978 - 634,978 Net assets released from restriction:

Satisfaction of program restrictions 428,540 (428,540) -

Total revenue, gains, and other support 50,903,446 (37,698) 50,865,748

Expenses:Program:

Child care 29,343,371 - 29,343,371 Nutrition 13,678,050 - 13,678,050 Energy conservation 3,070,881 - 3,070,881 Social services 1,331,888 - 1,331,888

General and administrative 3,558,498 - 3,558,498 Fundraising 22,701 - 22,701

Total expenses 51,005,389 - 51,005,389

Change in net assets (101,943) (37,698) (139,641)

Net assets, beginning 11,330,093 181,139 11,511,232

Net assets, ending 11,228,150$ 143,441$ 11,371,591$

2014


COMMUNITY ACTION PARTNERSHIP OF KERN STATEMENTS OF OPERATIONS (Continued)


TemporarilyUnrestricted Restricted Total

Program revenues:Federal grants 40,175,014$ -$ 40,175,014$ State grants 2,856,232 - 2,856,232 Local grants 478,588 - 478,588

Public support:Contributions in-kind (Note 1) 78,153 - 78,153

Donations:Food 5,619,626 - 5,619,626 Cash 68,653 439,022 507,675

Gain (loss) on sale/disposition of assets 99,582 - 99,582 Gain (loss) on market value of swap

contracts (Note 6) 80,664 - 80,664 Other 344,669 - 344,669 Net assets released from restriction:

Satisfaction of program restrictions 266,111 (266,111) -

Total revenue, gains, and other support 50,067,292 172,911 50,240,203

Expenses:Program:

Child care 30,324,341 - 30,324,341 Nutrition 13,184,726 - 13,184,726 Energy conservation 3,179,726 - 3,179,726 Social services 1,114,090 - 1,114,090

General and administrative 3,703,943 - 3,703,943 Fundraising 15,833 - 15,833

Total expenses 51,522,659 - 51,522,659

Change in net asset (1,455,367) 172,911 (1,282,456)

Net assets, beginning 12,785,460 8,228 12,793,688

Net assets, ending 11,330,093$ 181,139$ 11,511,232$

2013


COMMUNITY ACTION PARTNERSHIP OF KERN STATEMENTS OF CASH FLOWS


2014 2013Cash Flows From Operating Activities

Change in net position (139,641)$ (1,282,456)$ Adjustments to reconcile change in net position to net cash provided by operating activities:

Depreciation 1,511,820 1,376,109 Gain (loss) on sale of assets 27,143 (5,828) (Gain) loss on market value of interest swaps (Note 6) (158,609) (80,664) Debt forgiveness grant revenue (Note 6) (65,052) (65,052) Changes in assets and liabilities:

(Increase) decrease in:Grants and contracts receivable (1,767,056) 934,948 Inventory 35,636 687,786 Prepaid expenses (217,873) (18,273)

Increase (decrease) in:Accounts payable 1,311,881 (626,942) Accrued expenses 956,417 (675,391) Advances payable 129,488 (3,500,580) Deferred revenue (240,072) (179,891)

Net cash provided by (used in) operating activities 1,384,082 (3,436,234)

Cash Flows From Investing ActivitiesProceeds from sale of assets - 105,875 Purchase of property and equipment (727,787) (418,977)

Net cash used in investing activities (727,787) (313,102)

Cash Flows From Financing ActivitiesNet borrowings (payments) on revolving line of credit - 500,000 Principal payments on long-term borrowings (252,480) (183,993)

Net cash provided by (used in) financing activities (252,480) 316,007

Net increase (decrease) in cash 403,815 (3,433,329)

Cash:Beginning 2,206,976 5,640,305

Ending 2,610,791$ 2,206,976$

Supplemental Disclosures of Cash Flow InformationCash payments for:

Interest 257,377$ 271,747$

Supplemental Schedule of Noncash Operating ActivitiesProgram expenses provided by contributions in-kind revenue 129,652$ 78,153$

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COMMUNITY ACTION PARTNERSHIP OF KERN NOTES TO FINANCIAL STATEMENTS


NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities and Reporting Entity: Community Action Partnership of Kern (the Organization) is the designated Community Action Agency of Kern County. The purpose of this organization is to mobilize and utilize public and private resources of the urban and rural communities in the County of Kern to combat poverty through community action programs. Major classifications of program expenses are child care, nutrition, energy conservation, and social services. A summary of the Organization’s significant accounting policies follows: Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Restricted and Unrestricted Revenue and Support: Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other 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 restriction. Federal Grant Awards: Federal grant awards are classified as deferred revenue until expended for the purposes of the grants. Cash: Cash on deposit as of February 28, 2014 and 2013, included approximately $2,891,877 and $3,319,863, respectively, held by a financial institution which exceeded the insurance limits of the Federal Deposit Insurance Corporation. The Organization is required to maintain separate bank accounts in accordance with certain grant restrictions. As of February 28, 2014 and 2013, there was $923,623 and $907,738, respectively, in separate bank accounts. Inventories: Inventories are comprised of food commodities and building weatherization supplies. Supplies are stated at cost, purchased food is stated at lower of cost or market, and food commodities received from the United States Department of Agriculture (USDA) are valued based on the USDA fair value commodity listing.

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NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Property and Equipment: Acquisitions of property and equipment greater than $5,000 are capitalized and stated at cost. The federal government retains a reversionary interest in property and equipment acquired with federal funds. Depreciation of property and equipment is computed on the straight-line method over the following estimated useful lives: Years Buildings 10-35 Renovations 10-35 Vehicles 3 Equipment 3-5 Depreciation for property and equipment was $1,511,820 and $1,376,109 for the years ended February 28, 2014 and 2013, respectively. Compensated Absences: The Organization accrues compensated vacation pay for all employees. Sick leave is not payable upon termination, and therefore is not subject to accrual. Donated Services and Property: Donated services are recognized in the financial statements as revenue and expense in equal amounts at their estimated fair values. In-kind grantee contributions totaling $129,652 and $78,153 are included in the statements of operations for the years ended February 28, 2014 and 2013, respectively, and include donations of supplies and professional volunteer time charged at a rate pursuant to related contract provisions. In-kind contributions of volunteer time by parents participating in the Head Start and Early Head Start programs are not included in the statements of activities because they do not meet the criteria for recognition. They totaled $2,958,776 and $3,382,671 for the years ended February 28, 2014 and 2013, respectively. The City of Shafter donated land for the Shafter Youth Center. As of February 28, 2014 and 2013, the value included in property and equipment was $32,211. Income Taxes: The Organization is a not-for-profit corporation and has been recognized as tax exempt pursuant to Section 501 (c)(3) of the Internal Revenue Code and related State of California code sections. On March 1, 2009, the Organization adopted the accounting standard on accounting for uncertainty in income taxes, which address the determination of whether tax benefits claimed or expected to be claimed on tax returns should be recorded in the financial statements. Under this guidance, the Organization may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the Organization’s tax positions and concluded that it had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Functional Allocation of Expenses: The costs of providing the various programs and other activities are summarized on a functional basis in the statements of operations. Management allocates costs between the appropriate programs for general and administrative based on evaluations of the related benefits. The Organization adopted the cost pool methodology during the fiscal year. The cost pool methodology uses components such as number of transactions, number of employees and square feet to allocate general and administrative expenses. Time activity reports are used to allocate general and administrative expenses from the Community Development Pool. Reclassifications: Certain accounts presented in the prior year’s data may have been reclassified in order to be consistent with the current year’s presentation.

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NOTE 2 – GRANTS AND CONTRACTS RECEIVABLE The grants and contracts receivable at February 28, 2014 and 2013, are:

2014 2013

Federal funds 4,686,977$ 2,974,851$ State funds 120,763 91,131 Local funds 20,230 41,846 Private funds 9,583 - Other 47,839 10,508

4,885,392$ 3,118,336$

NOTE 3 – INVENTORY Inventory is comprised of the following at February 28, 2014 and 2013:

2014 2013

Weatherization supplies 253,067$ 375,637$ Food commodities 687,944 601,010

941,011$ 976,647$

NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment as of February 28, 2014 and 2013, is comprised of the following:

2014 2013

Land 1,705,601$ 1,705,601$ Buildings 18,608,995 18,608,993 Renovations 5,501,604 5,099,345 Vehicles 2,782,123 2,743,815 Equipment 2,135,905 1,902,404 Construction in progress - 136,821

30,734,228 30,196,979 Less accumulated depreciation 16,010,136 14,661,710

14,724,092$ 15,535,269$

The federal government has a reversionary interest in property and equipment at February 28, 2014 and 2013, in the amount of $25,747,066 and $25,209,818, respectively, with accumulated depreciation of $14,485,652 and $13,370,590, respectively. NOTE 5 – NOTES PAYABLE The Organization has a $1,000,000 revolving credit agreement with a bank, which provides credit through January 15, 2015. As of February 28, 2014 and 2013, $0 and $0, respectively, were available to the Organization for additional draws under the agreement. The note bears interest at the daily one month LIBOR rate (0.15% as of February 28, 2014) plus 3.75% and is unsecured. The outstanding principal balance of this note is due and payable in full on January 15, 2015.

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NOTE 6 – PLEDGED ASSETS AND LONG-TERM DEBT Long-term debt consists of the following as of February 28, 2014 and 2013:

2014 2013Note payable to a bank, secured by deed of trust, due inmonthly installments of $10,665 including interest at 2.75%above daily one month LIBOR (0.15% as of February 28,2014), with an interest rate swap agreement, (1) balloonpayment of $2,454,881 due August 20, 2015. This note was 2,488,141$ 2,614,381$ refinanced in August 2012 (2).

Note payable to a bank, secured by land and building, due inmonthly installments of $8,506 including interest at 3.98% per annum. This note was refinanced on December 20, 2012 with a 10 year note (3). 724,851 807,691

Non-interest bearing State of California, Department ofCorrections and Rehabilitation Grant Loan, (4) secured by deedof trust, due in annual installments of $65,052 through 2023. 650,520 715,572

Non-interest bearing California Department of Educationcapital leases, secured by buildings, due in annualinstallments totaling $43,400 through November 1, 2016. 159,133 202,533

4,022,645$ 4,340,177$

Aggregate maturities of long-term debt as of February 28, 2014, are due in future years as follows:

Year Ending February 28/29,

2015 321,904$ 2016 2,548,821 2017 191,292 2018 176,825 2019 147,892

Thereafter 635,911

4,022,645$

Interest expense for the years ended February 28, 2014 and 2013, was $257,377 and $271,747, respectively. The Organization maintains an interest-rate risk-management strategy that uses interest rate swap derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility. The Organization’s specific goal is to lower (where possible) the cost of its borrowed funds. (1) In June 2008, the Organization entered into an interest rate swap agreement related to this debt. The swap is utilized to manage interest rate exposure over the period of the interest rate swap and is designated as a highly effective cash flow hedge. The differential to be paid or received on the swap agreement is accrued as interest rates change and is recognized over the life of the agreement. The swap agreement expires in June 2018, and has effectively fixed the interest rate at 5.7%. The notional amount is $(468,323) at February 28, 2014. The interest rate swap contains no credit-risk-related contingent features and is cross collateralized by all assets of the Organization. Fair value determination is based on a mid-market basis.

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NOTE 6 – PLEDGED ASSETS AND LONG-TERM DEBT (Continued) The fair value balance and notional amount of the derivative instrument outstanding at February 28, 2014, and the changes in fair value of the derivative instrument for the year then ended are as follows:

Notional Effective MaturityType Objective Amount Date Date

Fixed interest Hedge of changes 2,539,480$ 6/20/2008 6/20/2018rate swap in cash flows

on note

The fair value balances and notional amounts of derivative instruments outstanding at February 28, 2014, classified by type, and the change in fair value of such derivative instruments for the year then ended are as follows:

Changes in Fair Value

Amount Classification Amount NotionalCash flow hedge:

Fixed interest rate swaps 158,609$ Debt 468,323$ 2,539,480$

Fair Value at February 28, 2014

Interest rate risk: The purpose of the swap is to eliminate interest rate risk on the associated note and therefore the swap, in combination with related note does not create interest rate risk for the Organization. Termination risk: The Organization or its counterparty may terminate a derivative instrument if the other party fails to perform under the terms of the contract. In addition, Organization may optionally terminate the agreement on any date. If at the time of a termination, the Organization may be required to make a termination payment to its counterparty. Rollover risk: The Organization is exposed to rollover risk on hedging derivative instruments that are hedges of debt that mature or may be terminated prior to the maturity of the hedged debt. When these hedging derivative instruments terminate prior to the maturity of the related debt, the Organization will be re-exposed to the risks being hedged by the hedging derivative instrument. (2) In August 2012 the Organization refinanced this note in the amount of $2,670,283. The outstanding principle balance of this note bears interest at a fixed rate per annum at a rate of 2.75% above LIBOR in effect on the first day of each fixed rate term. Payments commenced on September 20, 2012, and will continue up to and including July 20, 2015, with a final installment consisting of all remaining unpaid principal due and payable in full on August 20, 2015. (3) In December 2002, the Organization entered into an interest rate swap agreement related to this debt. The swap is utilized to manage interest rate exposure over the period of the interest rate swap and is designated as a highly effective cash flow hedge. The differential to be paid or received on the swap agreement is accrued as interest rates change and is recognized over the life of the agreement. The swap agreement expired in December 2012, and effectively fixed the interest rate at 4.62%. In December 2012 the note was refinanced with the total available funds being $831,607. The outstanding note bears interest at 3.98% per annum with any unpaid principle due on December 20, 2022. (4) A Department of Corrections and Rehabilitation (formerly the Department of the Youth Authority) loan from the State of California was secured and executed July 16,1999, in the amount of $1,301,040 for the construction of a facility located in the City of Shafter and County of Kern for use as a youth center. Equal annual installments of $65,052 are due through 2023. Each annual payment due is to be deemed forgiven, in whole, or in part, as long as the Organization operates the facility as a youth center for a period of 20 years, beginning with 2003, the year operations began in the completed center. The balances outstanding at February 28, 2014 and 2013, represent cash drawn on the note, net of debt forgiveness to date.

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NOTE 7 – PENSION PLAN The Organization has a defined contribution money purchase pension plan, which covers all employees who have been employed for one year or more with at least 800 hours worked during the year, and who are at least 21 years of age. The employer’s contribution is 5 percent of the participants’ compensation. Employees become vested 25 percent upon two years of service, 50 percent upon three years of service, 75 percent upon four years of service, and 100 percent upon five years of service. Participants also become 100 percent vested upon normal retirement, disability, or death. The Organization’s pension contribution for the years ended February 28, 2014 and 2013, was $908,700 and $940,480, respectively. NOTE 8 – ACCRUED VACATION Accumulated unpaid employee vacation benefits are recognized as liabilities of the Organization. The liability is recognized in the program to which the liability relates. Accrued vacation benefits at February 28, 2014 and 2013, are unfunded. The value of accumulated vacation at February 28, 2014 and 2013, is as follows:

2014 2013

Head Start 623,409$ 667,798$ Community Services Block Grant 17,218 165,826 Women, Infants, and Children 116,503 114,168 Low Income Home Energy Assistance Program 40,388 - Migrant Alternative Payment 14,937 10,659 Substance Abuse Program 9,617 8,911 Early Head Start 105,730 117,512 211 4,751 4,526 Energy Program - 45,860 Differential Response 2,888 - First 5 Kern East Kern Family Resource Center 893 - Shafter Youth Center 2,354 2,700 Finance Pool 48,105 - Human Resources/IT/Executive Pool 42,648 - Community Development Pool 15,183 - Facilities Pool 10,816 - Health & Nutrition Pool 9,508 - Family, Youth & Community Pool 3,622 - Supplemental Nutrition Assistance Program 1,005 -

1,069,575$ 1,137,960$

The accrued vacation benefits of $623,409 for Head Start, $105,730 for Early Head Start, and $116,503 for Women, Infants, and Children have been funded. Cash is maintained in separate interest bearing bank accounts. The cash is reserved for this specific purpose and is not combined with the operating cash of the agency.

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NOTE 9 – DEFERRED REVENUE The grants and contracts deferred at February 28, 2014 and 2013, are as follows:

2014 2013

Migrant Alternative Payment 292,206$ 398,933$ California State Preschool 186,799 96,359 General Child Care and Development 120,858 157,789 Child Development Reserve - Alternative Payment 17,185 17,870 Low Income Home Energy Assistance Program 136,366 451,446 Kaiser 35,260 8,919 County of Kern - 211 42,543 13,122 Summer Food Service for Children 13,110 6,448 Bakersfield Californian Foundation - 8,276 Emergency Food and Shelter 36,693 38,755 California Endowment 41,736 24,662 Migrant Childcare 39,001 - Food Bank 15,750 - Financial Empowerment 5,000 -

982,507$ 1,222,579$

NOTE 10 – TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets as of February 28, 2014 and 2013, are available for the following:

2014 2013

Food Policy Council 11,861$ 13,523$ Food Bank - Freezer Campaign - 151,823 Friendship House - Quad 51,600 - Food Bank - Vehicle Campaign 35,000 - Food Bank - Backpack Buddy 34,010 - Volunteer Income Tax Assistance - 13,688 PG&E Outreach 4,470 2,105 East Kern Family Resource Center 6,500 -

143,441$ 181,139$

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NOTE 11 – LEASE COMMITMENTS The Organization leases various equipment and facilities under noncancellable operating leases that expire through June 2033. Rental expense for the years ended February 28, 2014 and 2013, was $850,626 and $789,635, respectively. At February 28, 2014, total annual rental commitments are as follows:

Year Ending February 28/29,

2015 662,631$ 2016 707,161 2017 636,146 2018 448,657 2019 309,132

Thereafter 1,205,856

3,969,583$

NOTE 12 – CONCENTRATION OF REVENUE For the years ended February 28, 2014 and 2013, approximately 54% and 56% of the Organization’s revenue was received from one grant source, respectively. Management believes the grant will be renewed on an ongoing basis. NOTE 13 – UNRELATED BUSINESS INCOME TAX MATTERS The Internal Revenue Service (IRS) and certain state taxing authorities are currently revisiting what, if any, products and services provided by nonprofit organizations are subject to unrelated business income tax (UBIT). There is currently very little guidance in the IRS Code on what activities should be subject to UBIT. The IRS has indicated that they are studying the issue and may issue additional guidance. As a result, at this time there is uncertainty regarding whether the Organization should pay income tax on certain types of net taxable income from activities that may be considered by taxing authorities as unrelated to the purpose for which the Organization was granted non-taxable status. The Organization has not filed any tax returns in the past for potential taxable activities. The taxing authorities have the ability to assess taxes, penalties, and interest for any years for which no tax return was filed. In the opinion of management, any liability resulting from taxing authorities imposing income taxes on the net taxable income from activities deemed to be unrelated to the Organization’s nontaxable status is not expected to have a material effect on the Organization’s financial position or results of operations. The Organization is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2009. NOTE 14 – SUBSEQUENT EVENTS Subsequent to February 28, 2014, and through November 14, 2014, the date through which management evaluated subsequent events and the date of the Independent Auditor’s Report, the Organization did not identify any subsequent events that require disclosure.

SUPPLEMENTARY INFORMATION

15

COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF EXPENDITURES OF

FEDERAL AND STATE AWARDS FOR THE YEAR ENDED FEBRUARY 28, 2014

Federal

Federal Grantor/Pass-Through CFDA Grantor'sGrantor Program Title Number Number Amount Total

FEDERAL:U.S. Department of Health and Human ServicesDirect Program

Head Start 93.600 09CH7051/48 21,944,920$ 21,944,920$

State of California - Pass-Through ProgramsDepartment of Community Services and Development

Community Services Block Grant 93.569 13F-3015 906,901 Community Services Block Grant 93.569 14F-3015 238,936 Community Services Block Grant Discretionary 93.569 13F-3104 16,261

1,162,098 Low Income Home Energy Assistance Program 93.568 11B-5713 21,699 Low Income Home Energy Assistance Program 93.568 12B-5812 704,056 Low Income Home Energy Assistance Program 93.568 13B-5012 2,070,551 Low Income Home Energy Assistance Program 93.568 14B-5012 234,342 Low Income Home Energy Assistance Program 93.568 N/A 321,444

3,352,092 Department of Education

Child Care and Development FundGeneral Child Care and Development 93.596 CCTR-2057 189,382 General Child Care and Development 93.596 CCTR-3053 339,196 California State Preschool 93.596 CSPP-2117 100,573 California State Preschool 93.596 CSPP-3113 219,005

848,156 Child Care and Development Block Grant

Migrant Alternative Payment 93.575 CMAP-2000 1,408,195 Migrant Alternative Payment 93.575 CMAP-3000 2,982,472 California State Preschool 93.575 CSPP-2117 55,330 California State Preschool 93.575 CSPP-3113 104,488 General Child Care and Development 93.575 CCTR-2057 104,188 General Child Care and Development 93.575 CCTR-3053 161,832

4,816,505

Department of Public HealthInformation and Education 93.558 11-10281 9,437 Information and Education 93.558 11-10281 17,187

26,624

County of Kern - Pass-Through ProgramsSubstance Abuse 93.959 345-2012 32,658 Substance Abuse 93.959 346-2013 93,156

125,814

BioterrorismContract 1 93.283 PPSA-004 2,835 Contract 2 93.283 PPSA-004 6,738

9,573 U.S. Department of Homeland SecurityPass-Through United Way of Kern County Local Board

Emergency Food and Shelter 97.024 Phase 30 77,510 77,510

Disaster Preparedness 97.042 STSA-004 8,000 8,000

16


FEDERAL AND STATE AWARDS (Continued) FOR THE YEAR ENDED FEBRUARY 28, 2014

FederalFederal Grantor/Pass-Through CFDA Grantor'sGrantor Program Title Number Number Amount Total

FEDERAL: (Continued)

U.S. Department of AgricultureState of California - Pass-Through Programs

Department of Public HealthWIC Supplemental Nutrition

WIC (Women, Infants, and Children)Contract 1 10.557 11-10443 2,189,953 Contract 2 10.557 11-10443 1,560,463

3,750,416 Department of Social Services

Emergency Food AssistanceContract 1 10.568 10-6035 104,795 Contract 2 10.568 10-6035 47,614

152,409 Emergency Food Assistance 10.569 N/A 2,716,170

2,716,170

Supplemental Nutrition AssistanceCal Fresh

Contract 1 10.561 12-10125 37,621 Contract 2 10.561 12-10125 41,876

79,497 Department of Education

Child and Adult Care Food 10.555 15-1248-OJ 70,407 Summer Food Service for Children 10.559 15-9150-OS 35,998

106,405 Child and Adult Care Food 10.558 15-1248-OJ 1,326,118

1,326,118

U.S. Department of EnergyState of California - Pass-Through Programs

Department of Community Services and DevelopmentDepartment of Energy

Weatherization Assistance Program 81.042 11C-1812 140,769 140,769

U.S. Department of TreasuryPass-Through United Way of Kern County

Volunteer Income Tax Assistance 21.009 N/A 26,103 26,103

Total Federal Grants 40,669,179$

17


FEDERAL AND STATE AWARDS (Continued) FOR THE YEAR ENDED FEBRUARY 28, 2014

FederalFederal Grantor/Pass-Through CFDA Grantor'sGrantor Program Title Number Number Amount Total

STATE:State of California - Department of Education

Migrant Alternative Payment CMAP-2000 161,167$ Migrant Alternative Payment CMAP-3000 451,291

612,458$ General Child Care and Development CCTR-2057 286,378 General Child Care and Development CCTR-3053 554,493

840,871 State Preschool CSPP-2117 408,146 State Preschool CSPP-3113 1,039,297

1,447,443

Migrant Childcare CMIG-3022 94,562 94,562

Migrant Specialized Services CMSS-3022 26,713 26,713

State of California - Department of Social ServicesTax Check-Off/AB2366 N/A 16,285

16,285

Differential Response N/A 62,529 62,529

State of California - Department of Corrections and RehabilitationShafter Youth Center 99-011 65,052

65,052 State of California - Department of Public Health

Information and Education 11-10281 14,091 Information and Education 11-10281 25,974

40,065 California Children and Families Commission

E Kern Family Resource Center 2013.2.1 95,503 Differential Response N/A 38,878 First 5 Kern Helpline 211

Contract 1 2010.1.10 33,993 Contract 2 2010.1.10 71,083

239,457

Total State Grants 3,445,435$

18

COMMUNITY ACTION PARTNERSHIP OF KERN NOTES TO SCHEDULE OF

EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED FEBRUARY 28, 2014

NOTE 1 – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal and State Awards includes the federal and state grant activity of the Organization and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. NOTE 2 – NONCASH ASSISTANCE The Organization received noncash assistance in the form of food commodities, which is included in the amounts reported on the Schedule of Expenditures of Federal and State Awards. Commodities, with a fair value of $2,716,170 at the time received, have been included in the determination of federal awards expended for the year ended February 28, 2014. NOTE 3 – CLUSTER INFORMATION Presented in this note are only grants that are clustered under Part 5 of the Compliance Supplement to OMB Circular A-133.

Program or Cluster TitleFederal CFDA

NumberFederal

Expenditures

Child Care Development Block Grant ClusterChild Care and Development Block Grant 93.575 4,816,505$ Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 848,156

Total Child Care Development Block Grant Cluster 5,664,661

Child Nutrition ClusterNational School Lunch Program 10.555 70,407 Summer Food Service Program for Children 10.559 35,998

Total Child Nutrition Cluster 106,405

Emergency Food Assistance ClusterEmergency Food Assistance Program (Administrative Costs) 10.568 152,409 Emergency Food Assistance Program (Food Commodities) 10.569 2,716,170

Total Emergency Food Assistance Cluster 2,868,579

19

COMMUNITY ACTION PARTNERSHIP OF KERN SUPPLEMENTAL SCHEDULE OF REVENUE AND EXPENDITURES

CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT CONTRACT NO. 13F - 3015 (CSBG)

FOR THE PERIOD JANUARY 1, 2013 THROUGH DECEMBER 31, 2013

Jan. 1, 2013 Mar. 1, 2013 Total Totalthrough through Audited Reported Total

Feb. 28, 2013 Dec. 31, 2013 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 693,836$ 673,152$ 1,366,988$ -$ 1,366,988$ Other Revenue 78 424 502 - - Deferred Grant Revenue (233,749) 233,749 - - -

Total Revenue 460,165$ 907,325$ 1,367,490$ -$ 1,366,988$

EXPENDITURES

Administrative CostsSalaries and Wages 252,597$ 227,412$ 480,009$ 480,009$ 475,147$ Fringe Benefits 44,637 46,345 90,982 90,982 92,220 Operating Expenses 39,997 13,418 53,415 53,415 54,761 Contract/Consultant Services 10,174 29,726 39,900 39,900 39,933

Total Administrative Costs 347,405 316,901 664,306 664,306 662,061

Program CostsSalaries and Wages 78,453 283,778 362,231 362,231 363,671 Fringe Benefits 17,337 89,130 106,467 106,467 108,081 Operating Expenses 16,970 197,516 214,486 213,984 213,175 Other Costs - 20,000 20,000 20,000 20,000

Total Program Costs 112,760 590,424 703,184 702,682 704,927

Total Expenditures 460,165$ 907,325$ 1,367,490$ 1,366,988$ 1,366,988$

20


CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT CONTRACT NO. 11C - 1812 (DOE WAP)

FOR THE PERIOD DECEMBER 01, 2011 THROUGH JANUARY 31, 2014

Dec. 1, 2011 Mar. 1, 2012 Mar. 1, 2013 Total Totalthrough through through Audited Reported Total

Feb. 29, 2012 Feb. 28, 2013 Jan. 31, 2014 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 136,868$ 75,203$ -$ 212,071$ -$ 212,071$ Other Revenue - 108 - 108 - Deferred Grant Revenue (135,628) (11,555) 140,769 (6,414) -

Total Revenue 1,240$ 63,756$ 140,769$ 205,765$ -$ 212,071$

EXPENDITURES

Administrative CostsAdministrative Costs -$ 3,344$ 8,667$ 12,011$ 12,011$ 12,386$

Total Administrative Costs - 3,344 8,667 12,011 12,011 12,386

Program CostsTraining and Technical Assistance - - 1,000 1,000 1,000 1,000 Liability Insurance - 389 545 934 934 600 Vehicle Insurance - 1,171 1,685 2,856 2,856 2,400 Intake 657 179 1,059 1,895 1,660 2,100 Outreach 418 360 2,522 3,300 3,769 3,300 Client Education 120 32 384 536 302 600 Workers' Compensation - 1,941 1,051 2,992 2,992 6,500 General/Operating Expenditures 45 14,548 10,469 25,062 25,062 25,000 Direct Program Activities - 36,246 80,056 116,302 116,302 119,048 Health and Safety - 5,438 33,331 38,769 38,769 39,137

Total Program Costs 1,240 60,304 132,102 193,646 193,646 199,685

Other Program Costs - 108 - 108 108 -

Total Use of Recycling Fees Earned - 108 - 108 108 -

Total Expenditures 1,240$ 63,756$ 140,769$ 205,765$ 205,765$ 212,071$

21


CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT CONTRACT NO. 11B - 5713 (LIHEAP WEATHERIZATION)

FOR THE PERIOD JANUARY 1, 2011 THROUGH APRIL 30, 2013

Jan. 1, 2011 Mar. 1, 2011 Mar. 1, 2012 Mar. 1, 2013 Total Totalthrough through through through Audited Reported Total

Feb. 28, 2011 Feb. 29, 2012 Feb. 28, 2013 Apr. 30, 2013 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 753,771$ 1,277,713$ -$ -$ 2,031,484$ -$ 2,031,484$ Other Revenue - 2,159 827 (2,986) - - - Deferred Revenue Earned - - 318,411 106,050 424,461 - - Deferred Grant Revenue (753,771) (169,240) 521,645 2,986 (398,380) - -

Total Revenue -$ 1,110,632$ 840,883$ 106,050$ 2,057,565$ -$ 2,031,484$

EXPENDITURES

Administrative CostsAdministrative Costs -$ 114,038$ 15,946$ -$ 129,984$ 159,848$ 161,693$

Total Administrative Costs - 114,038 15,946 - 129,984 159,848 161,693

Program CostsIntake - 40,163 - - 40,163 40,163 40,424 Outreach - 42,385 8,120 - 50,505 50,505 61,059 Training and Technical Assistance - 1,151 849 - 2,000 2,000 2,000 Direct Program Activities - 876,838 478,656 - 1,355,494 1,700,748 1,711,308 Liability Insurance - 2,650 2,350 - 5,000 5,000 5,000 Workers' Compensation - 33,407 16,551 - 49,958 49,958 50,000

Total Program Costs - 996,594 506,526 - 1,503,120 1,848,374 1,869,791

Labor Costs - - 159,751 27,927 187,678 187,678 - Cost of Materials Installed - - 158,660 78,123 236,783 236,783 -

Total Use of Deferred Revenue Earned - - 318,411 106,050 424,461 424,461 -

Total Expenditures -$ 1,110,632$ 840,883$ 106,050$ 2,057,565$ 2,432,683$ 2,031,484$

22


CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT CONTRACT NO. 11B - 5713 (LIHEAP/ECIP/ASSURANCE 16/HEAP)

FOR THE PERIOD JANUARY 1, 2011 THROUGH APRIL 30, 2013

Jan. 1, 2011 Mar. 1, 2011 Mar. 1, 2012 Mar. 1, 2013 Total Totalthrough through through through Audited Reported Total

Feb. 28, 2011 Feb. 29, 2012 Feb. 28, 2013 Apr. 30, 2013 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 466,438$ 1,010,322$ -$ -$ 1,476,760$ -$ 1,476,760$ Deferred Grant Revenue (466,438) (612,968) 436,165 18,713 (624,528) - -

Total Revenue -$ 397,354$ 436,165$ 18,713$ 852,232$ -$ 1,476,760$

EXPENDITURES

Assurance 16 Activities -$ 67,048$ 116,714$ -$ 183,762$ 183,762$ 376,670$ Administrative Costs - 34,021 80,937 - 114,958 85,094 237,085 Intake - 41,851 55,437 - 97,288 97,288 97,950 Outreach - 52,812 33,723 - 86,535 86,535 244,877 Cooling Services Repair/Replacement - 7,276 11,541 - 18,817 18,817 20,000 Heating Services Repair/Replacement - 105,870 18,741 - 124,611 124,611 148,891 Water Heater Repair/Replacement - 1,844 13,102 - 14,946 14,946 - Other Program Costs - 114 1,070 - 1,184 1,184 - Severe Weather Energy Assistance and Transporation Services - - - - - - 42,223 HEAP Wood/Propane/Oil Payments - 86,518 104,900 18,713 210,131 210,131 211,114 Training and Technical Assistance - - - - - - 97,950

Total Expenditures -$ 397,354$ 436,165$ 18,713$ 852,232$ 822,368$ 1,476,760$

23



FOR THE PERIOD JANUARY 1, 2012 THROUGH JUNE 30, 2013

Jan. 1, 2012 Mar. 1, 2012 Mar. 1, 2013 Total Totalthrough through through Audited Reported Total

Feb. 29, 2012 Feb. 28, 2013 June 30, 2013 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 727,980$ 591,683$ -$ 1,319,663$ -$ 1,319,663$ Other Revenue - 879 653 1,532 - - Deferred Revenue Earned - - 46,367 46,367 - - Deferred Grant Revenue (727,980) 356,922 357,410 (13,648) - -

Total Revenue -$ 949,484$ 404,430$ 1,353,914$ -$ 1,319,663$

EXPENDITURES

Administrative CostsAdministrative Costs -$ 62,372$ 42,109$ 104,481$ 104,575$ 105,573$

Total Administrative Costs - 62,372 42,109 104,481 104,575 105,573

Program CostsIntake - 20,083 5,353 25,436 25,436 26,000 Outreach - 18,873 6,435 25,308 25,308 31,000 Training and Technical Assistance - 1,859 4,124 5,983 7,068 5,983 Direct Program Activities - 816,983 286,183 1,103,166 1,103,166 1,101,107 Liability Insurance - 7,561 3,724 11,285 11,285 10,000 Workers' Compensation - 21,753 8,603 30,356 30,356 40,000

Total Program Costs - 887,112 314,422 1,201,534 1,202,619 1,214,090

Direct Program Activities - - 1,532 1,532 - -

Total Use of Recycling Fees Earned - - 1,532 1,532 - -

Labor Costs - - 44,129 44,129 44,129 - Cost of Materials Installed - - 2,238 2,238 2,238 -

Total Use of Deferred Revenue Earned including Recycling Fees and Interest Income - - 46,367 46,367 46,367 -

Total Expenditures -$ 949,484$ 404,430$ 1,353,914$ 1,353,561$ 1,319,663$

24



FOR THE PERIOD JANUARY 1, 2012 THROUGH JUNE 30, 2013

Jan. 1, 2012 Mar. 1, 2012 Mar. 1, 2013 Total Total

through through through Audited Reported TotalFeb. 29, 2012 Feb. 28, 2013 June 30, 2013 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 747,893$ 573,094$ -$ 1,320,987$ -$ 1,320,987$ Deferred Grant Revenue (747,893) (74,982) 346,646 (476,229) - -

Total Revenue -$ 498,112$ 346,646$ 844,758$ -$ 1,320,987$

EXPENDITURES

Assurance 16 Activities -$ 113,729$ 70,146$ 183,875$ 183,875$ 267,934$ Administrative Costs - 89,999 60,826 150,825 150,731 189,661 Intake - 83,119 38,743 121,862 121,862 200,086 Outreach - 33,323 16,992 50,315 50,315 200,086 Training and Technical Assistance - - 5,267 5,267 4,182 80,034 Cooling Services Repair/Replacement - 4,508 5,961 10,469 10,469 14,000 Heating Services Repair/Replacement - 57,447 60,665 118,112 118,112 150,593 Water Heater Repair/Replacement - 1,929 - 1,929 1,929 2,000 Other Program Costs - 38 - 38 38 - HEAP Wood/Propane/Oil Payments - 108,020 57,293 165,313 165,313 166,593 Automation Supplemental - 6,000 30,753 36,753 36,753 50,000

Total Expenditures -$ 498,112$ 346,646$ 844,758$ 843,579$ 1,320,987$

25



FOR THE PERIOD JANUARY 1, 2013 THROUGH JANUARY 31, 2014


Feb. 28, 2013 Jan. 31, 2014 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 1,196,913$ 208,073$ 1,404,986$ -$ 1,404,986$ Other Revenue - 607 607 - - Deferred Revenue Earned - 112,050 112,050 - - Deferred Grant Revenue (1,182,643) 1,057,454 (125,189) - -

Total Revenue 14,270$ 1,378,184$ 1,392,454$ -$ 1,404,986$

EXPENDITURES

Administrative CostsAdministrative Costs 447$ 93,488$ 93,935$ 93,935$ 108,205$

Total Administrative Costs 447 93,488 93,935 93,935 108,205

Program CostsIntake - 5,224 5,224 5,224 111,905 Outreach 10 18,366 18,376 18,376 69,940 Training and Technical Assistance - 54,482 54,482 54,482 69,940 Direct Program Activities 2,332 864,302 866,634 866,634 830,596 Liability Insurance 1,379 14,072 15,451 15,451 14,400 Major Vehicle and Equipment - 106,310 106,310 106,310 - Workers' Compensation - 16,924 16,924 16,924 40,000 General Operating Expenditures 10,102 92,359 102,461 102,461 160,000

Total Program Costs 13,823 1,172,039 1,185,862 1,185,862 1,296,781

Administrative Costs - 25 25 - - General Operating Expenditures - 582 582 - -

Total Use of Recycling Fees Earned - 607 607 - -

Administrative Costs - 25 25 25 - Labor Costs - 6,085 6,085 6,085 - Cost of Materials Installed - 105,520 105,520 105,520 - Other Program Costs - 420 420 420 -

Total Use of Deferred Revenue Earned and Interest Income - 112,050 112,050 112,050 -

Total Expenditures 14,270$ 1,378,184$ 1,392,454$ 1,391,847$ 1,404,986$

26



FOR THE PERIOD JANUARY 1, 2013 THROUGH JANUARY 31, 2014


Feb. 28, 2013 Jan. 31, 2014 Costs Expenses Budget

REVENUE

Grant Revenue Awarded 1,091,380$ 107,691$ 1,199,071$ -$ 1,199,071$ Deferred Grant Revenue (1,082,891) 697,333 (385,558) - -

Total Revenue 8,489$ 805,024$ 813,513$ -$ 1,199,071$

EXPENDITURES

Assurance 16 Activities 4,235$ 216,856$ 221,091$ 221,091$ 249,722$ Administrative Costs 4,254 69,190 73,444 73,444 159,429 Intake - 71,448 71,448 71,448 169,333 Outreach - 62,699 62,699 62,699 118,332 Diagnostics - 418 418 418 1,000 Cooling Services Repair/Replacement - 13,633 13,633 13,633 11,000 Heating Services Repair/Replacement - 149,004 149,004 149,004 151,025 Water Heater Repair/Replacement - 18,838 18,838 18,838 20,000 HEAP Wood/Propane/Oil Payments - 115,007 115,007 115,007 116,025 Training and Technical Assistance - 1,598 1,598 1,598 3,000 Vehicle and Equipment - 26,734 26,734 26,734 50,000 General Operating Expenditures - 46,099 46,099 46,099 135,505 Automation Supplemental - 13,500 13,500 13,500 14,700

Total Expenditures 8,489$ 805,024$ 813,513$ 813,513$ 1,199,071$

27

COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF REVENUE AND EXPENDITURES CALIFORNIA STATE PRESCHOOL PROGRAMS

CALIFORNIA DEPARTMENT OF EDUCATION CONTRACT NO. CSPP-2117 FOR THE PERIOD JULY 1, 2012 THROUGH JUNE 30, 2013

July 1, 2012 Mar. 1, 2013through through

Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

Federal Grant Revenue 321,159$ 155,903$ 477,062$ State Grant Revenue 840,684 408,146 1,248,830 Parent Fees 8,992 3,663 12,655

Total Revenue 1,170,835 567,712 1,738,547

EXPENDITURES

Salaries 826,097 397,952 1,224,049 Fringe Benefits 306,842 130,688 437,530 Consultant/Contract Services 5,394 8,904 14,298 Travel - 446 446 Space Costs 28,933 16,390 45,323 Consumable Supplies - 8,221 8,221 Equipment - - -Other Costs 3,569 5,111 8,680

Total Expenditures 1,170,835 567,712 1,738,547

REVENUE OVER/(UNDER)EXPENDITURES -$ -$ -$

28

COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF REVENUE AND EXPENDITURES

CHILD AND ADULT CARE FOOD CALIFORNIA DEPARTMENT OF EDUCATION CONTRACT NO. 15-1248-OJ

FOR THE PERIOD MARCH 1, 2013 THROUGH FEBRUARY 28, 2014 CHILD AND

ADULT CARE CHILD AND

ADULT CARE FOOD FOOD - AT RISK

Mar. 1, 2013 Mar. 1, 2013through through

Feb. 28, 2014 Feb. 28, 2014 TOTAL

REVENUE

Federal Grant Revenue 1,394,165$ 2,360$ 1,396,525$

Total Revenue 1,394,165 2,360 1,396,525

EXPENDITURES

Salaries 475,373 515 475,888 Fringe Benefits 174,063 180 174,243 Consultant/Contract Services - - - Travel - - - Space Costs - - - Consumable Supplies - 248 248 Equipment - - - Other Costs - - - Program Costs 744,729 1,417 746,146



29


COMMUNITY SERVICES BLOCK GRANT NO. 13F-3015 FOR THE PERIOD JANUARY 1, 2013 THROUGH DECEMBER 31, 2013

Jan. 1, 2013 Mar. 1, 2013

through through Feb. 28, 2013 Dec. 31, 2013 TOTAL

REVENUE

Federal Grant Revenue 460,087$ 906,901$ 1,366,988$ Other Revenue 78 424 502

Total Revenue 460,165 907,325 1,367,490

EXPENDITURES

Salaries 331,574 524,621 856,195 Fringe Benefits 61,974 135,495 197,469 Consultant/Contract Services 11,358 16,273 27,631 Travel 4,565 20,382 24,947 Space Costs 6,846 114,470 121,316 Consumable Supplies 14,865 9,164 24,029 Equipment - - - Other Costs 28,944 66,816 95,760 Program Costs 39 20,104 20,143

Total Expenditures 460,165 907,325 1,367,490


30


COUNTY OF KERN 211 AGREEMENT NO. 719-2011 FOR THE PERIOD OCTOBER 9, 2012 THROUGH JUNE 30, 2013

` Oct. 9, 2012 Mar. 1, 2013

through through Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

Local Grant Revenue 86,878$ 13,122$ 100,000$

Total Revenue 86,878 13,122 100,000

EXPENDITURES

Salaries 58,794 5,792 64,586 Fringe Benefits 11,649 1,341 12,990 Consultant/Contract Services 1,127 1,472 2,599 Travel 1 460 461 Space Costs 3,657 1,498 5,155 Consumable Supplies 5,110 928 6,038 Equipment - - - Other Costs 6,540 1,631 8,171

Total Expenditures 86,878 13,122 100,000


31


COUNTY OF KERN BIOTERRORISM I&R FOR THE PERIOD OCTOBER 25, 2012 THROUGH MAY 31, 2013

Oct. 25, 2012 Mar. 1, 2013

through through Feb. 28, 2013 May 31, 2013 TOTAL

REVENUE

Federal Grant Revenue 7,162$ 2,835$ 9,997$

Total Revenue 7,162 2,835 9,997

EXPENDITURES

Salaries 6,496 2,616 9,112 Fringe Benefits 666 219 885 Consultant/Contract Services - - - Travel - - - Space Costs - - - Consumable Supplies - - - Equipment - - - Other Costs - - -



32

COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF REVENUE AND EXPENDITURES COUNTY OF KERN DISASTER PREPAREDNESS

FOR THE PERIOD MAY 1, 2013 THROUGH SEPTEMBER 30, 2013

May 1, 2013

through Sept. 30, 2013

REVENUE

Federal Grant Revenue 8,000$

Total Revenue 8,000

EXPENDITURES

Salaries 3,089 Fringe Benefits 832 Consultant/Contract Services - Travel 88 Space Costs - Consumable Supplies 3,525 Equipment - Other Costs 466

Total Expenditures 8,000

REVENUE OVER/(UNDER)EXPENDITURES -$

33


DEPARTMENT OF ENERGY - WEATHERIZATION (DOE) GRANT NO. 11C-1812 FOR THE PERIOD DECEMBER 1, 2011 THROUGH JANUARY 31, 2014

Dec 1, 2011 Mar. 1, 2012 Mar. 1, 2013

through through through Feb. 29, 2012 Feb. 28, 2013 Jan. 31, 2014 TOTAL

REVENUE

Federal Grant Revenue 1,240$ 63,648$ 140,769$ 205,657$ Other Revenue - 108 - 108

Total Revenue 1,240 63,756 140,769 205,765

EXPENDITURES

Salaries 1,110 21,878 45,287 68,275 Fringe Benefits 85 7,220 14,353 21,658 Consultant/Contract Services - 4,130 10,012 14,142 Travel - 2,568 2,821 5,389 Space Costs - 4,747 7,405 12,152 Consumable Supplies - 3,833 843 4,676 Equipment - - - - Other Costs 45 19,380 9,913 29,338 Program Costs - - 50,135 50,135

Total Expenditures 1,240 63,756 140,769 205,765

REVENUE OVER/(UNDER)EXPENDITURES -$ -$ -$ -$

34


DIFFERENTIAL RESPONSE FOR THE PERIOD JULY 1, 2013 THROUGH FEBRUARY 28, 2014

STATE DEPT OF FIRST 5

SOCIAL SERVICES KERN

July 1, 2013 July 1, 2013through through

Feb. 28, 2014 Feb. 28, 2014 TOTALREVENUE

State Grant Revenue 62,529$ 38,878$ 101,407$

Total Revenue 62,529 38,878 101,407

EXPENDITURES

Salaries 36,003 30,755 66,758 Fringe Benefits 8,087 7,590 15,677 Consultant/Contract Services 334 217 551 Travel 3,205 - 3,205 Space Costs 6,881 172 7,053 Consumable Supplies 3,254 42 3,296 Equipment - - - Other Costs 3,540 102 3,642 Program Cost 1,225 - 1,225



35


EARLY HEAD START/HEAD START AWARD NO. 09CH7051/48 FOR THE PERIOD MARCH 1, 2013 THROUGH FEBRUARY 28, 2014

EARLY EARLY EARLY

HEAD START HEAD START HEAD START HEAD START HEAD START HEAD STARTBASE T & TA CARRYOVER BASE T & TA CARRYOVER

Mar. 1, 2013 Mar. 1, 2013 Mar. 1, 2013 Mar. 1, 2013 Mar. 1, 2013 Mar. 1, 2013through through through through through through

Feb. 28, 2014 Feb. 28, 2014 Feb. 28, 2014 Feb. 28, 2014 Feb. 28, 2014 Feb. 28, 2014 TOTAL

REVENUE

Federal Grant Revenue 2,671,880$ 66,795$ 182,089$ 18,667,691$ 175,556$ 180,909$ 21,944,920$ Other Revenue 4,970 - - 187,918 - - 192,888 In-Kind - - - 5,486,231 - - 5,486,231

Total Revenue 2,676,850 66,795 182,089 24,341,840 175,556 180,909 27,624,039

EXPENDITURES

Salaries 1,599,001 - - 10,868,364 - - 12,467,365 Fringe Benefits 475,090 - - 3,678,963 - - 4,154,053 Consultant/Contract Services 27,025 21,665 - 269,674 7,520 - 325,884 Travel 33,811 18,135 - 205,999 49,335 - 307,280 Space Costs 99,325 - 150,398 1,711,420 126 - 1,961,269 Consumable Supplies 225,858 3,553 - 706,516 10,358 - 946,285 Equipment 60,741 - 27,880 19,637 - 180,909 289,167 Other Costs 81,122 23,442 3,811 1,066,575 108,217 - 1,283,167 Program Costs 74,877 - - 328,461 - - 403,338 In-Kind - - - 5,486,231 - - 5,486,231

Total Expenditures 2,676,850 66,795 182,089 24,341,840 175,556 180,909 27,624,039

REVENUE OVER/(UNDER)EXPENDITURES - -$ -$ -$ -$ -$ -$

36

COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF REVENUE AND EXPENDITURES EMERGENCY FOOD AND SHELTER - PHASE 30

FOR THE PERIOD FEBRUARY 1, 2012 THROUGH MAY 31, 2013

Feb. 1, 2012 Mar. 1, 2012 Mar. 1, 2013

through through through Feb. 29, 2012 Feb. 28, 2013 May 31, 2013 TOTAL

REVENUE

Federal Grant Revenue -$ -$ 77,510$ 77,510$

Total Revenue - - 77,510 77,510

EXPENDITURES

Salaries - - - - Fringe Benefits - - - - Consultant/Contract Services - - - - Travel - - - - Space Costs - - - - Consumable Supplies - - - - Equipment - - - - Other Costs - - - - Program Costs - - 77,510 77,510

Total Expenditures - - 77,510 77,510


37


EMERGENCY FOOD ASSISTANCE PROGRAM MOU NO. 10-6035 FOR THE PERIOD OCTOBER 1, 2012 THROUGH SEPTEMBER 30, 2013

Oct. 1, 2012 Mar. 1, 2013

through through Feb. 28, 2013 Sept. 30, 2013 TOTAL

REVENUE


Total Revenue 51,416 104,795 156,211

EXPENDITURES

Salaries 24,647 54,964 79,611 Fringe Benefits 6,572 16,214 22,786 Consultant/Contract Services 451 749 1,200 Travel 3,930 6,616 10,546 Space Costs 1,726 14,857 16,583 Consumable Supplies 127 2,071 2,198 Equipment - - - Other Costs 13,963 9,324 23,287



38


FACILITIES RENOVATION AND REPAIR CALIFORNIA DEPARTMENT OF EDUCATION CONTRACT NO. CRPM-0023

FOR THE PERIOD JULY 1, 2010 THROUGH JUNE 30, 2013

July 1, 2010 Mar. 1, 2011 July 1, 2011 Mar. 1, 2012 July 1, 2012 Mar. 1, 2013

through through through through through through Feb. 28, 2011 June 30, 2011 Feb. 29, 2012 June 30, 2012 Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

State Grant Revenue -$ 1,850$ 16,026$ -$ 57,120$ -$ 74,996$

Total Revenue - 1,850 16,026 - 57,120 - 74,996

EXPENDITURES

Salaries - - - - - - - Fringe Benefits - - - - - - - Consultant/Contract Services - - - - - - - Travel - - - - - - - Space Costs - 1,191 16,026 - 57,120 - 74,337Consumable Supplies - - - - - - - Equipment - - - - - - - Other Costs - 659 - - - - 659

Total Expenditures - 1,850 16,026 - 57,120 - 74,996

REVENUE OVER/(UNDER)EXPENDITURES -$ -$ -$ -$ -$ -$ -$

39

COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF REVENUE AND EXPENDITURES FIRST 5 KERN 211 AGREEMENT NO. 2010.1.10

FOR THE PERIOD JULY 1, 2012 THROUGH FEBRUARY 28, 2014

July 1, 2012 Mar. 1, 2013 July 1, 2013through through through

Feb. 28, 2013 June 30, 2013 TOTAL Feb. 28, 2014

REVENUE

State Grant Revenue 65,383$ 33,993$ 99,376$ 71,083$

Total Revenue 65,383 33,993 99,376 71,083

EXPENDITURES

Salaries 42,420 15,082 57,502 45,730 Fringe Benefits 8,726 3,981 12,707 9,695 Consultant/Contract Services 1,099 3,472 4,571 1,115 Travel 220 880 1,100 1 Space Costs 3,248 5,152 8,400 6,834 Consumable Supplies 1,693 864 2,557 876 Equipment - - - - Other Costs 7,977 4,562 12,539 6,832

Total Expenditures 65,383 33,993 99,376 71,083


40


FIRST 5 KERN EAST KERN FAMILY RESOURCE CENTER AGREEMENT NO. 2013.2.1 FOR THE PERIOD JULY 1, 2013 THROUGH FEBRUARY 28, 2014

July 1, 2013

through Feb. 28, 2014

REVENUE

State Grant Revenue 95,503$

Total Revenue 95,503

EXPENDITURES

Salaries 65,849 Fringe Benefits 12,731 Consultant/Contract Services 411 Travel 1,811 Space Costs 7,427 Consumable Supplies 3,388 Equipment - Other Costs 2,624 Program Cost 1,262



41


GENERAL CHILD CARE AND DEVELOPMENT PROGRAM CALIFORNIA DEPARTMENT OF EDUCATION CONTRACT NO. CCTR-2057


July 1, 2012 Mar. 1, 2013


REVENUE

Federal Grant Revenue 511,046$ 293,570$ 804,616$ State Grant Revenue 498,657 286,378 785,035 Parent Fees 13,899 6,474 20,373

Total Revenue 1,023,602 586,422 1,610,024

EXPENDITURES

Salaries 743,408 414,806 1,158,214 Fringe Benefits 267,967 146,927 414,894 Consultant/Contract Services 6,401 8,736 15,137 Travel - 539 539 Space Costs 3,177 2,301 5,478 Consumable Supplies 1 6,789 6,790 Equipment - - -Other Costs 2,648 6,324 8,972



42


INFORMATION AND EDUCATION GRANT NO. 11-10281 FOR THE PERIOD JULY 1, 2012 THROUGH JUNE 30, 2013

July 1, 2012 Mar. 1, 2013


REVENUE

Federal Grant Revenue 19,122$ 9,437$ 28,559$ State Grant Revenue 29,070 14,091 43,161

Total Revenue 48,192 23,528 71,720

EXPENDITURES

Salaries 40,595 18,863 59,458 Fringe Benefits 6,841 3,489 10,330 Consultant/Contract Services - 109 109 Travel 418 572 990 Space Costs - 115 115 Consumable Supplies - 258 258 Equipment - - - Other Costs 338 122 460



43


KAISER - FRIENDSHIP HOUSE COMMUNITY CENTER GRANT NO. 20621472 FOR THE PERIOD JULY 1, 2012 THROUGH JUNE 30, 2013


Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

Other Revenue 16,081$ 8,919$ 25,000$

Total Revenue 16,081 8,919 25,000

EXPENDITURES

Salaries 13,212 7,545 20,757 Fringe Benefits 1,833 1,273 3,106 Consultant/Contract Services 54 - 54 Travel - - - Space Costs - - - Consumable Supplies 807 8 815 Equipment - - - Other Costs 175 93 268



44


LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) GRANT NO. 11B-5713 FOR THE PERIOD JANUARY 1, 2011 THROUGH APRIL 30, 2013

Jan. 1, 2011 Mar. 1, 2011 Mar. 1, 2012 Mar. 1, 2013through through through through

Feb. 28, 2011 Feb. 29, 2012 Feb. 28, 2013 April 30, 2013 TOTAL

REVENUE

Federal Grant Revenue -$ 1,505,827$ 957,810$ 21,699$ 2,485,336$ Other Revenue - 2,159 827 (2,986) -

Total Revenue - 1,507,986 958,637 18,713 2,485,336

EXPENDITURES

Salaries - 638,984 362,315 - 1,001,299 Fringe Benefits - 160,702 106,492 - 267,194 Consultant/Contract Services - 120,620 52,799 - 173,419 Travel - 21,478 14,373 - 35,851 Space Costs - 20,457 22,060 - 42,517 Consumable Supplies - 18,547 18,891 - 37,438 Equipment - - - - - Other Costs - 440,680 276,807 - 717,487 Program Costs - 86,518 104,900 18,713 210,131

Total Expenditures - 1,507,986 958,637 18,713 2,485,336

REVENUE OVER/(UNDER)EXPENDITURES -$ -$ -$ -$ -$

45


LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) GRANT NO. 12B-5812 FOR THE PERIOD JANUARY 1, 2012 THROUGH JUNE 30, 2013

Jan. 1, 2012 Mar. 1, 2012 Mar. 1, 2013through through through

Feb. 29, 2012 Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

Federal Grant Revenue -$ 1,446,717$ 704,056$ 2,150,773$ Other Revenue - 879 653 1,532

Total Revenue - 1,447,596 704,709 2,152,305

EXPENDITURES

Salaries - 645,188 296,179 941,367 Fringe Benefits - 177,319 86,188 263,507 Consultant/Contract Services - 65,628 32,898 98,526 Travel - 15,952 13,455 29,407 Space Costs - 26,884 20,534 47,418 Consumable Supplies - 28,781 42,417 71,198 Equipment - - - - Other Costs - 379,824 17,250 397,074 Program Costs - 108,020 195,788 303,808

Total Expenditures - 1,447,596 704,709 2,152,305


46


LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) GRANT NO. 13B-5012 FOR THE PERIOD JANUARY 1, 2013 THROUGH JANUARY 31, 2014

Jan. 1, 2013 Mar. 1, 2013through through

Feb. 28, 2013 Jan. 31, 2014 TOTAL

REVENUE

Federal Grant Revenue 22,759$ 2,070,551$ 2,093,310$ Other Revenue - 607 607

Total Revenue 22,759 2,071,158 2,093,917

EXPENDITURES

Salaries 951 634,022 634,973 Fringe Benefits 9 187,914 187,923 Consultant/Contract Services 1,594 188,865 190,459 Travel 2,164 35,295 37,459 Space Costs 5,647 81,977 87,624 Consumable Supplies 4,147 48,813 52,960 Equipment - 133,044 133,044 Other Costs 8,247 104,674 112,921 Program Costs - 656,554 656,554

Total Expenditures 22,759 2,071,158 2,093,917


47


MIGRANT ALTERNATIVE PAYMENT CALIFORNIA DEPARTMENT OF EDUCATION CONTRACT NO. CMAP-2000



Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

Federal Grant Revenue 3,280,090$ 1,408,195$ 4,688,285$ State Grant Revenue 375,641 161,167 536,808

Total Revenue 3,655,731 1,569,362 5,225,093

EXPENDITURES

Salaries 314,057 161,926 475,983 Fringe Benefits 64,947 35,091 100,038 Consultant/Contract Services 12,500 9,073 21,573 Travel 5,431 3,303 8,734 Space Costs 46,869 30,257 77,126 Consumable Supplies 15,952 12,486 28,438 Other Costs 63,372 21,975 85,347 Program Costs 3,132,603 1,295,251 4,427,854

Total Expenditures 3,655,731 1,569,362 5,225,093


48


SOUTHERN CALIFORNIA GAS COMPANY FOR THE PERIOD FEBRUARY 1, 2013 THROUGH SEPTEMBER 30, 2013

Feb. 1, 2013 Mar. 1, 2013through through

Feb. 28, 2013 Sept. 30, 2013 TOTAL

REVENUE

Other Revenue -$ 25,000$ 25,000$

Total Revenue - 25,000 25,000

EXPENDITURES

Salaries - 19,776 19,776 Fringe Benefits - 3,511 3,511 Consultant/Contract Services - - - Travel - - - Space Costs - - - Consumable Supplies - - - Equipment - - - Other Costs - 1,713 1,713

Total Expenditures - 25,000 25,000


49


STATE TAX CHECK-OFF FOR THE PERIOD MARCH 1, 2013 THROUGH FEBRUARY 28, 2014

Mar. 1, 2013through

Feb. 28, 2014

REVENUE

State Grant Revenue 16,285$


EXPENDITURES

Program Costs 16,285



50


SUBSTANCE ABUSE PROGRAM GRANT NO. 345-2012 FOR THE PERIOD JULY 1, 2012 THROUGH JUNE 30, 2013


Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE


Total Revenue 95,552 32,658 128,210

EXPENDITURES

Salaries 66,301 19,862 86,163 Fringe Benefits 14,837 5,979 20,816 Consultant/Contract Services 641 928 1,569 Travel 755 368 1,123 Space Costs 3,123 1,172 4,295 Consumable Supplies 2,506 320 2,826 Other Costs 5,017 2,137 7,154 Program Cost 2,372 1,892 4,264



51


SUMMER FOOD SERVICE FOR CHILDREN CALIFORNIA DEPARTMENT OF EDUCATION CONTRACT NO. 15-9150-OS

FOR THE PERIOD JUNE 10, 2013 THROUGH AUGUST 9, 2013

June 10, 2013through

Aug. 9, 2013

REVENUE

Federal Grant Revenue 35,998$


EXPENDITURES

Salaries 10,387 Fringe Benefits 2,615 Consultant/Contract Services 55 Travel 88 Space Costs 94 Consumable Supplies 3,386 Equipment - Other Costs 76 Program Costs 19,297



52


SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (CAL FRESH) GRANT NO. 12-10125 FOR THE PERIOD OCTOBER 1, 2012 THROUGH SEPTEMBER 30, 2013

Oct. 1, 2012 Mar. 1, 2013through through

Feb. 28, 2013 Sept. 30, 2013 TOTAL

REVENUE


Total Revenue 27,870 37,621 65,491

EXPENDITURES

Salaries 23,892 32,118 56,010 Fringe Benefits 3,896 5,444 9,340 Consultant/Contract Services 71 - 71 Travel - - - Space Costs - - - Consumable Supplies - - - Equipment - - - Other Costs 11 59 70



53


VOLUNTEER INCOME TAX ASSISTANCE FOR THE PERIOD JANUARY 1, 2013 THROUGH JUNE 30, 2013

Jan. 1, 2013 Mar. 1, 2013through through

Feb. 28, 2013 June 30, 2013 TOTAL

REVENUE

Federal Grant Revenue 14,397$ 26,103$ 40,500$ Other Revenue 15,000 - 15,000

Total Revenue 29,397 26,103 55,500

EXPENDITURES

Salaries 9,073 15,961 25,034 Fringe Benefits 1,210 2,350 3,560 Consultant/Contract Services - - - Travel - - - Space Costs 4,098 18,300 22,398 Consumable Supplies - 1,459 1,459 Equipment - - - Other Costs 1,328 1,721 3,049


REVENUE OVER/(UNDER)EXPENDITURES 13,688$ (13,688)$ -$

54


WOMEN, INFANTS & CHILDREN (WIC) GRANT NO. 11-10443 FOR THE PERIOD OCTOBER 1, 2012 THROUGH SEPTEMBER 30, 2013

Oct. 1, 2012 Mar. 1, 2013through through

Feb. 28, 2013 Sept. 30, 2013 TOTAL

REVENUE

Federal Grant Revenue 1,514,280$ 2,189,953$ 3,704,233$

Total Revenue 1,514,280 2,189,953 3,704,233

EXPENDITURES

Salaries 992,127 1,413,264 2,405,391 Fringe Benefits 260,764 357,923 618,687 Consultant/Contract Services 15,041 18,831 33,872 Travel 19,026 36,691 55,717 Space Costs 110,078 194,954 305,032 Consumable Supplies 21,489 56,016 77,505 Equipment - - - Other Costs 95,665 111,964 207,629 Program Costs 90 310 400

Total Expenditures 1,514,280 2,189,953 3,704,233


55

COMMUNITY ACTION PARTNERSHIP OF KERN STATEMENTS OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED FEBRUARY 28, 2014

Energy Community General andChild Care Nutrition Conservation Services Administrative Fundraising Total

Salaries 14,340,248$ 3,012,480$ 948,656$ 642,647$ 2,215,268$ 6,718$ 21,166,017$ Fringe Benefits 4,948,022 851,022 284,299 147,679 422,088 1,872 6,654,982 Consultant/Contract Services 195,212 13,350 249,257 63,016 283,296 - 804,131 Travel 310,037 85,985 52,842 15,599 15,016 - 479,479 Space Costs 1,708,210 378,398 106,084 165,462 176,516 - 2,534,670 Consumable Supplies 923,579 86,424 90,988 24,685 108,577 2,142 1,236,395 Other Costs 1,224,581 243,002 149,091 87,031 250,919 11,969 1,966,593 Program Costs 4,537,509 880,573 1,178,396 10,621 - - 6,607,099 Depreciation 1,026,321 212,265 11,268 175,148 86,818 - 1,511,820 In-Kind 129,652 - - - - - 129,652 Donated Commodities - 7,914,551 - - - - 7,914,551

29,343,371$ 13,678,050$ 3,070,881$ 1,331,888$ 3,558,498$ 22,701$ 51,005,389$

56

COMMUNITY ACTION PARTNERSHIP OF KERN STATEMENTS OF FUNCTIONAL EXPENSES (Continued)

FOR THE YEAR ENDED FEBRUARY 28, 2013

Energy Social General and

Child Care Nutrition Conservation Services Administrative Fundraising Total

Salaries 14,896,922$ 3,055,921$ 1,242,780$ 544,833$ 2,234,729$ -$ 21,975,185$ Fringe Benefits 4,924,430 823,786 347,557 109,624 471,335 - 6,676,732 Consultant/Contract Services 342,866 13,475 141,039 32,093 381,955 - 911,428 Travel 393,628 86,870 39,241 10,691 41,788 - 572,218 Space Costs 749,169 262,315 69,139 52,925 87,855 - 1,221,403 Consumable Supplies 1,151,873 82,427 73,761 41,588 133,296 - 1,482,945 Equipment 225,436 76,182 26,671 5,548 9,698 - 343,535 Other Costs 1,600,439 284,184 994,898 134,456 292,991 15,833 3,322,801 Program Costs 4,922,742 1,013,955 216,280 14,582 1,220 - 6,168,779 Depreciation 1,038,684 186,043 28,360 167,750 49,076 - 1,469,913 In-Kind 78,152 - - - - - 78,152 Donated Food - 7,299,568 - - - - 7,299,568

30,324,341$ 13,184,726$ 3,179,726$ 1,114,090$ 3,703,943$ 15,833$ 51,522,659$

57

INDEPENDENT AUDITOR’S 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

Board of Directors Community Action Partnership of Kern We have audited, in accordance with the 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 Community Action Partnership of Kern (the Organization), which comprise the statement of financial position as of February 28, 2014, and the related statements of operations, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated November 14, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Organization’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 Community Action Partnership of Kern’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization’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 entity’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.

58

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization’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 Organization’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 Organization’s internal control and compliance. Accordingly, this report is not suitable for any other purpose. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California November 14, 2014

59

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR

PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

Board of Directors Community Action Partnership of Kern Report on Compliance for Each Major Federal Program We have audited Community Action Partnership of Kern’s (the Organization) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Organization’s major federal programs for the year ended February 28, 2014. The Organization’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Organization’s major federal programs 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; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organization’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. However, our audit does not provide a legal determination of the Organization’s compliance. Opinion on Each Major Federal Program In our opinion, the Organization 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 for the year ended February 28, 2014.

60

Report on Internal Control Over Compliance Management of the Organization 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 Organization’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program 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 and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Organization’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 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 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 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 weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California November 14, 2014

61

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL

EFFECT ON THE FIRST 5 KERN 211, EAST KERN FAMILY RESOURCE CENTER AND DIFFERENTIAL RESPONSE PROGRAMS, AND ON

INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE PROGRAM SPECIFIC AUDIT OPTION UNDER OMB CIRCULAR A-133

Board of Directors Community Action Partnership of Kern Report on Compliance for Each Major Federal Program We have audited Community Action Partnership of Kern’s (the Organization) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on First 5 Kern 211, East Kern Family Resource Center and Differential Response programs for the year ended February 28, 2014. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to the First 5 Kern 211, East Kern Family Resource Center and Differential Response programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance of the Organization’s First 5 Kern 211, East Kern Family Resource Center and Differential Response programs 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; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above, that could have a direct and material effect on First 5 Kern 211, East Kern Family Resource Center and Differential Response programs occurred. An audit includes examining, on a test basis, evidence about the Organization’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 First 5 Kern 211, East Kern Family Resource Center and Differential Response programs. However, our audit does not provide a legal determination of the Organization’s compliance.

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Opinion on Each Major Federal Program In our opinion, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on First 5 Kern 211, East Kern Family Resource Center and Differential Response programs for the year ended February 28, 2014. Report on Internal Control Over Compliance Management of the Organization 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 Organization’s internal control over compliance with the types of requirements that could have a direct and material effect on First 5 Kern 211, East Kern Family Resource Center and Differential Response programs to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for First 5 Kern 211, East Kern Family Resource Center and Differential Response Programs and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Organization’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 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 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 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 weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. BROWN ARMSTRONG ACCOUNTANCY CORPORATION Bakersfield, California November 14, 2014

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COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I – SUMMARY OF AUDITOR’S RESULTS

Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting: Material weakness identified? Yes X No Significant deficiencies identified that

are not considered to be material weaknesses? Yes X None Reported

Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major federal programs: Material weakness identified? Yes X No Significant deficiencies identified that

are not considered to be material weaknesses? Yes X None Reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in

accordance with OMB Circular A-133, Section 510(a)? Yes X No Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster

93.575/93.596 Child Care and Development Block Grant 93.600 Head Start

10.557 Special Supplemental Nutrition Program for Women, Infants, and Children

Dollar threshold used to distinguish between Type A and B programs: $1,220,075 Auditee qualified as low-risk auditee? X Yes No

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COMMUNITY ACTION PARTNERSHIP OF KERN SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued)


SECTION II – FINDINGS RELATING TO FINANCIAL STATEMENTS REQUIRED UNDER GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS

None. SECTION III – FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARD None.

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COMMUNITY ACTION PARTNERSHIP OF KERN SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


SECTION II – FINDINGS RELATING TO FINANCIAL STATEMENTS REQUIRED UNDER GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS

None.

SECTION III – FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARD

None.

COMMUNITY ACTION PARTNERSHIP OF KERN FINANCIAL REPORT … · FINANCIAL REPORT FEBRUARY 28, 2014 AND...

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