GULF COAST CHILDREN’S ADVOCACY CENTER, INC. rpts/2017 gulf coast... · Gulf Coast Children’s...

GULF COAST CHILDREN’S ADVOCACY CENTER, INC.

PANAMA CITY, FLORIDA

FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2017

GULF COAST CHILDREN’S ADVOCACY CENTER, INC.

PANAMA CITY, FLORIDA

FINANCIAL STATEMENTS


CONTENTS

PAGE

Independent auditor’s report 1

Financial Statements

Statement of financial position 3

Statement of activities 4

Statement of cash flows 5

Statement of functional expenses 6

Notes to financial statements 7

Compliance Section

Independent Auditor’s Report on Internal Control over Financial Reporting 14

and on Compliance and Other Matters Based on an Audit of Financial

Statements Performed in Accordance with Government Auditing Standards

CONTENTS (Continued)

PAGE

Independent Auditor’s Report on Compliance for Each Major Program and Project 16

and on Internal Control Over Compliance Required by the Uniform Guidance,

the Florida Single Audit Act (Florida Statute 215.97) and Chapter 10.650 of

the Auditor General of the State of Florida

Schedule of Findings and Questioned Costs – Federal Awards and State 19

Financial Assistance

Schedule of Expenditures of Federal Awards and State Financial Assistance 21

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 22

Tipton, Marler, Gamer & Chastain-The CPA Group Certified Public Accountant.

INDEPENDENT AUDITOR'S REPORT

Board of DirectorsGulf Coast Children's Advocacy Center, Inc.Panama City, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the Gulf Coast Children's AdvocacyCenter, Inc. (a nonprofit organization), which comprise the statement of financial position as ofDecember 31, 2017, and the related statements of activities, functional expenses, and cash flows forthe year then ended, and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.

501 West 19th Street

Panama City, Florida 32405(850) 769-9491 • Fax: (850) 785-9590

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600 Grand Panama Blvd., Suite 360

Panama City Beach, Florida 32407(850) 233-1360 • Fax: (850) 233-1941

www.cpagroup.com

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

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of Gulf Coast Children's Advocacy Center, Inc. as of December 31, 2017, and thechanges in its net assets and its cash flows for the year then ended in accordance with accountingprinciples generally accepted in the United States of America.

Other Matters

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as awhole. The accompanying schedule of expenditures of federal awards and state financial assistance,as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, the Florida Single AuditAct (Florida Statute 215.97) and Chapter 10.650 of the Rules of the Auditor General of the State ofFlorida, is presented for purposes of additional analysis and is not a required part of the financialstatements. Such information is the responsibility of management and was derived from and relatesdirectly to the underlying accounting and other records used to prepare the financial statements. Theinformation has been subjected to the auditing procedures applied in the audit of the financialstatements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the financial statements or tothe financial statements themselves, and other additional procedures in accordance with auditingstandards generally accepted in the United States of America. In our opinion, the information is fairlystated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September20, 2018, on our consideration of Gulf Coast Children's Advocacy Center, Inc.'s internal control overfinancial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements and other matters. The purpose of that report is to describe the scopeof our testing of internal control over financial reporting and compliance and the results of thattesting, and not to provide an opinion on the effectiveness of Gulf Coast Children's Advocacy Center,Inc.'s internal control over financial reporting or on compliance. That report is an integral part of anaudit performed in accordance with Government Auditing Standards in considering Gulf CoastChildren's Advocacy Center, Inc.'s internal control over financial reporting and compliance.

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Panama City, FloridaSeptember 20, 2018

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Current Assets:

Cash and cash equivalents $ 99,714

Contracts and grants receivable 374,062

Prepaid expenses 43,621

Total current assets 517,397

Property and Equipment:

Land 318,078

Construction in progress - Marianna 56,331

Buildings 2,508,919

Building improvements 74,419

Furniture and equipment 355,384

Automobiles 32,435

3,345,566

Less accumulated depreciation (803,205)

Net property and equipment 2,542,361

Other Assets:

Loan fees, net of amortization 16,031

Deposits 6,866

Total other assets 22,897

Total Assets $ 3,082,655

Current Liabilities:

Accounts payable and accrued expenses $ 44,724

Insurance note payable 3,296

Deferred revenue 112,622

Line of credit 149,654

Current maturities of notes payable 32,772

Total current liabilities 343,068

Other Liabilities:

Notes payable, less current maturities 878,470

Total liabilities 1,221,538

Net Assets:

Unrestricted 1,857,955

Temporarily restricted 3,162

Total net assets 1,861,117

Total Liabilities and Net Assets $ 3,082,655

LIABILITIES AND NET ASSETS

See independent auditor's report and the accompanying notes.

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GULF COAST CHILDREN'S ADVOCACY CENTER, INC.

STATEMENT OF FINANCIAL POSITION

DECEMBER 31, 2017

ASSETS

Revenues and other support:

Contributions $ 131,451 $ 131,451

In-kind contributions 23,200 23,200

Contracts and grants 2,385,548 2,385,548

Administration fees 132,824 132,824

United Way allocations 35,525 35,525

Interest income 9 9

Reimbursements 172,909 172,909

Building rent 78,298 78,298

Special events 391,736 $ 1,617 393,353

Miscellaneous 7,761 7,761

Net assets released from restrictions 4,455 (4,455) 0

Total revenues and other support 3,363,716 (2,838) 3,360,878

Expenses:

Program services 2,736,431 2,736,431

General and administrative 551,746 551,746

Total expenses 3,288,177 0 3,288,177

Change in net assets 75,539 (2,838) 72,701

Net assets, beginning of year 1,782,416 6,000 1,788,416

Net assets, end of year $ 1,857,955 $ 3,162 $ 1,861,117

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STATEMENT OF ACTIVITIES



Unrestricted

Temporarily

Restricted Total

Cash Flows From Operating Activities:

Cash received from contracts and grants $ 2,422,930

Cash contributions received 131,451

Cash received from United Way 35,525

Interest received 9

Other operating receipts 704,686

Interest paid (47,306)

Cash paid to suppliers and employees (3,106,410)

Net cash provided by operating activities 140,885

Cash Flows From Investing Activities:

Purchase of capital additions (66,175)

Net cash used in investing activities (66,175)

Cash Flows From Financing Activities:

Net proceeds on line of credit 29,675

Payments on note payable (28,839)

Net cash provided by financing activities 836

Net change in cash and cash equivalents 75,546

Cash and cash equivalents, beginning of year 24,168

Cash and cash equivalents, end of year $ 99,714

Reconciliation of change in net assets to net cash

used in operating activities -

Change in net assets $ 72,701

Adjustments to reconcile change in net assets to

net cash provided by operating activities:

Depreciation 82,262

Amortization 2,308

(Increase) decrease in assets -

Contracts and grants receivable 62,520

Prepaid expenses 26,404

Deposits (410)

Employee receivable 721

Increase (decrease) in liabilities -

Accounts payable and accrued expenses (9,963)

Insurance note payable 3,296

Deferred revenue (98,954)

Total adjustments 68,184

Net cash provided by operating activities $ 140,885

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STATEMENT OF CASH FLOWS



Salaries and related expenses $ 1,651,776 $ 203,385 $ 1,855,161

Accounting, auditing, and professional fees 500 38,150 38,650

Administration fees 132,824 132,824

Advertising 60 1,758 1,818

Advocacy/Awareness expense 31,716 31,716

Bad debt expense 6,643 6,643

Comprehensive family assessment 26,733 26,733

Direct client care 19,430 19,430

Dues and subscriptions 5,858 3,497 9,355

Employee benefits 124,434 8,130 132,564

Insurance 30,546 4,695 35,241

Interest 8,386 38,920 47,306

Janitorial 18,647 982 19,629

Landscape supplies 21,133 1,112 22,245

Medical services and supplies 158,422 158,422

Office and miscellaneous 47,396 12,915 60,311

Rent 149,323 864 150,187

Repairs and maintenance 28,033 1,475 29,508

Retirement 31,650 4,440 36,090

Sales tax 9 9

Special events 215,338 215,338

Telephone 43,858 1,467 45,325

Training 48,233 47 48,280

Travel 37,037 6,265 43,302

Utilities 35,644 1,876 37,520

Total expenses before amortization and depreciation 2,658,282 545,325 3,203,607

Amortization expense 2,308 2,308

Depreciation 78,149 4,113 82,262

Total expenses $ 2,736,431 $ 551,746 $ 3,288,177

Detection,

Support

Services

General

and


Intervention and


STATEMENT OF FUNCTIONAL EXPENSES


Program

Services

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Total

ExpensesInvestigation Administrative

GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2017

NOTE 1 – NATURE OF ORGANIZATION

Gulf Coast Children’s Advocacy Center, Inc. (the Organization) was established on September 9,

1999. The Organization serves to provide on-site agency collaboration and the use of the

multidisciplinary approach in prevention, investigation, assessment, protection, referral for

prosecution, and treatment of child abuse and neglect. The Organization coordinates and facilitates

treatment for child victims and their families. A substantial portion of funding for programs is

provided by the State of Florida Department of Health, the U.S. Department of Health and Human

Services, and the U.S. Department of Justice.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements of the Gulf Coast Children’s Advocacy Center, Inc. have been prepared on

the accrual basis. The significant accounting policies followed are described below to enhance the

usefulness of the financial statements to the reader.

Cash and Cash Equivalents

The Organization considers all cash and highly liquid investments with original maturities of less

than three months to be cash equivalents.

Contracts and Grants Receivable

The Organization reports contracts and grants receivable at net realizable value. Management

determines the allowance for doubtful accounts based on historical losses and current economic

conditions. Management believes all receivables are collectible, therefore, no allowance for doubtful

accounts is provided in these financial statements.

Property and Equipment

Property and equipment is stated at cost for assets purchased and at fair value for assets donated.

Depreciation of equipment is provided over the estimated useful lives, generally five to seven years,

of the respective assets on a straight-line basis. The Organization capitalizes all property and

equipment purchases over $1,000 or property and equipment less than $1,000 that is required to be

tracked by the granting agency. Depreciation expense for the year ended December 31, 2017 was

$82,262.

Net Assets

Net assets can be categorized into one of the three following categories:

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DECEMBER 31, 2017

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Permanently restricted net assets

The part of the net assets of a not-for-profit organization resulting (a) from contributions and other

inflows of assets whose use by the Organization is limited by donor-imposed stipulations that neither

expire by passage of time nor can be fulfilled or otherwise removed by actions of the Organization,

(b) from other asset enhancements and diminishments subject to the same kinds of stipulations, and

(c) from reclassifications from (or to) other classes of net assets as a consequence of donor-imposed

stipulations.

Temporarily restricted net assets

The part of the net assets of a not-for-profit organization resulting (a) from contributions and other

inflows of assets whose use by the Organization is limited by donor-imposed stipulations that either

expire by passage of time or can be fulfilled and removed by actions of the Organization pursuant to

those stipulations, (b) from other asset enhancements and diminishments subject to the same kinds of

stipulations, and (c) from reclassifications to (or from) other classes of net assets as a consequence of

donor-imposed stipulations, their expiration by passage of time, or their fulfillment and removal by

actions of the Program pursuant to those stipulations.

Unrestricted net assets

The part of the net assets of a not-for-profit organization that is neither permanently restricted nor

temporarily restricted by donor-imposed stipulations.

Advertising

Advertising costs are expensed as incurred. Advertising costs incurred during the year ended

December 31, 2017 were $1,818.

Contributed Services

Contributed goods and services are recorded as support and expense in the accompanying financial

statements at their fair value in the period of receipt. Services provided by the Board of Directors are

considered a philanthropic activity and are generally not recorded; therefore, the value of contributed

time is not reflected in these financial statements.

Income Taxes

Gulf Coast Children’s Advocacy Center, Inc. has qualified as an exempt organization for federal

income tax purposes under Internal Revenue Code Section 501(c)(3) and is not classified as a private

foundation. However, the Organization may be subject to income taxes on unrelated business

income. The Organization had no unrelated business income during the year ended December 31,

2017. Consequently, no provision for income taxes has been made in these financial statements.

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DECEMBER 31, 2017

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles

requires management to make estimates and assumptions that affect the reported amounts of assets

and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements

and the reported amounts of revenues and expenses during the reporting period. Actual results could

differ from those estimates.

NOTE 3 – CONTRIBUTIONS

The Organization reports gifts of cash and other assets as restricted support if they are received with

donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is,

when a stipulated time restriction ends, or purpose restriction is accomplished, temporarily restricted

net assets are reclassified to unrestricted net assets and reported in the statement of activities as net

assets released from restrictions. Those restricted gifts that are received and whose restriction is

accomplished in the same year are reported as unrestricted support.

The Organization reports gifts of land, buildings, and equipment as unrestricted support unless

explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets

with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets

that must be used to acquire long-lived assets are reported as restricted support. Absent explicit

donor stipulations about how long those long-lived assets must be maintained, the Organization

reports expirations of donor restrictions when the donated or acquired long lived assets are placed in

service.

NOTE 4 – CONTRACTS AND GRANTS RECEIVABLE

Contracts and grants receivable at December 31, 2017 consist of the following:

Child Protection Teams $ 24,626

Florida Council Against Sexual Violence 23,532

Florida Network for Children’s Advocacy Centers 33,911

Sexual Abuse Treatment Program (SATP) 742

State of Florida – Victims Compensation 54,447

Bay, Franklin, Gulf Healthy Start Coalition, Inc. 19,172

Victims of Crime Act (VOCA) Grant 133,401

Other 84,231

Total contracts and grants receivable $ 374,062

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DECEMBER 31, 2017

NOTE 5 – OPERATING LEASES

Lessee

On July 1, 2017, the Organization renewed its lease agreement with the Department of Children and

Families for the use of office space located in Marianna, FL. The lease is for a period of one year

and expires on June 30, 2018. There is no rent on this space because it is a state owned building and

utilized by the Department of Children & Families; however, the monthly costs of maintaining the

space are more than usual in rented space because staff have to purchase and pay for janitorial, lawn

maintenance, repairs, pest control and other commodities and/or services that are normally paid for

by the landlord. For the year ended December 31, 2017, quarterly costs were $2,247 for January

through June and $1,008 for July through December.

The Organization entered into an operating lease agreement on June 26, 2012 with Donald and

Sharon Harrell for the use of office space located in Chipley, FL. The lease is for a period of 5 years

beginning on July 1, 2012 and expiring on June 30, 2017 with an option to renew for an additional

ten (10) one-year periods. The terms of the lease include a 3% increase in the monthly rent payment

each year. The Organization renewed its lease agreement with Donald and Sharon Harrell for an

additional ten (10) one-year periods beginning on July 1, 2017 and expiring on June 30, 2027. For

the year ended December 31, 2017, monthly rent payments were $1,250 for January through June

and $1,288 for July through December.

The Organization entered into an operating lease agreement on March 10, 2016 with G.E. Rich and

Associations, LLC for the use of office space located in Bonifay, FL. The lease is for a period of two

and a half years beginning on March 15, 2016 and expiring on September 30, 2018. For the year

ended December 31, 2017, monthly rent payments were $875.

The Organization entered into an operating lease agreement on March 8, 2016 with Railroad

Properties North, LLC for the use of office space located in Chipley, FL. The lease is for a period of

two and a half years beginning on March 15, 2016 and expiring on September 30, 2018. For the year

ended December 31, 2017, monthly rent payments were $600.

The Organization entered into an operating lease agreement on September 28, 2016 with Panhandle

Medical Group, LLC for the use of office space located in Chipley, FL. The lease is for a period of

three years beginning on October 1, 2016 and expiring on September 30, 2019. For the year ended

December 31, 2017, monthly rent payments were $1,500.

The Organization entered into an operating lease agreement on June 1, 2017 with MAIX2 LLC for

the use of office space located in Chipley, FL. The lease is for a period of three years beginning on

June 1, 2017 and expiring on May 31, 2020. For the year ended December 31, 2017, monthly rent

payments were $2,450.

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DECEMBER 31, 2017

NOTE 5 – OPERATING LEASES (Continued)

The Organization entered into an operating lease agreement on March 1, 2018 with Daniel E. Ryals

for the use of office space located in Blountstown, FL. The lease is for a period of one year

beginning on March 1, 2018 and expiring on February 28, 2019, in which the agreement will revert

to a month to month lease renewing on the first day of each month. For the year ended December 31,

2017, monthly rent payments were $900.

Future minimum rental payments according to the lease agreements are as follows:

2018 $ 92,007

2019 52,656

2020 29,900

Total $ 174,563

Operating lease expense for the year ended December 31, 2017 totaled $97,384.

Lessor

On September 14, 2016, the Organization renewed the non-cancellable sublease agreement with the

Department of Children and Families for the use of the Organization’s office space in Panama City,

FL. The renewed lease is for a period of five years beginning February 1, 2017 and expiring on

January 30, 2022. For the year ended December 31, 2017, the monthly rental income was $4,419 for

January through March and $1,627 for April through December.

Operating lease income for the year ended December 31, 2017 totaled $27,895.

Future minimum rental payments to be received are as follows:

2018 $ 20,054

2019 20,652

2020 21,270

2021 20,075

2022 1,830

Total $ 83,881

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DECEMBER 31, 2017

NOTE 6 – CONCENTRATIONS AND CREDIT RISKS

The Organization received 66% of its revenues and other support from contracts and grants from the

State of Florida, a federal agency, or pass through entity. If a significant reduction in this level of

support were to occur, it would have a material effect on the Organization’s activities.

The Organization maintains cash balances at financial institutions located in Bay County, Florida.

The balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At

December 31, 2017, the Organization had no uninsured cash balances.

NOTE 7 – FUNCTIONAL ALLOCATION OF EXPENSES

The costs of providing program services and activities have been summarized on a functional basis

in the statement of activities. Accordingly, certain costs have been allocated among the programs

and supporting services benefited.

NOTE 8 – PENSION PLAN

The Organization maintained a 403(b) pension plan, which covers all eligible employees. The

Organization may elect annually to contribute to the plan on behalf of the employees. For the year

ended December 31, 2017, employer contributions made were $36,090.

NOTE 9 – INSURANCE NOTE PAYABLE

Gulf Coast Children's Advocacy Center, Inc. contracted with AFCO Insurance Premium Finance to

finance insurance premiums for the year ended December 31, 2017. The note is secured by the

policy premiums and bears an annual interest rate of 1.9%. The note is payable in nine monthly

installments of $767. The entire outstanding principle balance and remaining interest of $3,296 is

due within one year.

NOTE 10 – NOTE PAYABLE

Notes payable are summarized as follows:

As of December 31, 2017

Due in Due After

One Year One Year

Note payable, interest at 4.5%, due in monthly

installments of $6,140, collateralized by building,

matures March 2026. $ 32,772 $ 878,470

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DECEMBER 31, 2017

NOTE 10 – NOTE PAYABLE (Continued)

Maturities of notes payable for the next five years are as follows:

2018 $ 32,772

2019 34,310

2020 35,800

2021 37,577

2022 39,327

Thereafter 731,456

Total $ 911,242

NOTE 11 – SUPPLEMENTARY DISCLOSURES OF CASH FLOWS INFORMATION

Cash paid during the year for:

Interest $ 47,306

NOTE 12 – SUBSEQUENT EVENTS

The Organization did not have any subsequent events requiring disclosure or recording in these

financial statements through September 20, 2018, which is the date these financial statements were

issued.

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Tipton, Marler, Gamer &£ Chastam-The CPA Group Certified Public Accountants

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS

Board of Directors

Gulf Coast Children's Advocacy Center, Inc.Panama City, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of Gulf CoastChildren's Advocacy Center, Inc. (a nonprofit organization), which comprise the statement offinancial position as of December 31, 2017, and the related statements of activities and cash flows forthe year then ended, and the related notes to the financial statements, and have issued our reportthereon dated September 20, 2018.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Gulf CoastChildren's Advocacy Center, Inc.'s internal control over financial reporting (internal control) todetermine the audit procedures that are appropriate in the circumstances for the purpose of expressingour opinion on the financial statements, but not for the purpose of expressing an opinion on theeffectiveness of Gulf Coast Children's Advocacy Center's Inc.'s internal control. Accordingly, we donot express an opinion on the effectiveness of Gulf Coast Children's Advocacy Center, Inc.'s internalcontrol.

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



vvw\\'.cpagroup.com -14-



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

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Gulf Coast Children's Advocacy Center,Inc.'s financial statements are free from material misstatement, we performed tests of its compliancewith certain provisions of laws, regulations, contracts, and grant agreements, noncompliance withwhich could have a direct and material effect on the determination of financial statement amounts.However, providing an opinion on compliance with those provisions was not an objective of ouraudit, and accordingly, we do not express such an opinion. The results of our tests disclosed noinstances of noncompliance or other matters that are required to be reported under GovernmentAuditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of theorganization's internal control or on compliance. This report is an integral part of an audit performedin accordance with Government Auditing Standards in considering the organization's internal controland compliance. Accordingly, this communication is not suitable for any other purpose.

T^^, M ^ n---^ CLUX-Panama City, FloridaSeptember 20, 2018

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Tipton, Marler, Gamer & Chastain-The CPA Group Certified Public Accountants

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJORPROGRAM AND PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCEREQUIRED BY THE UNIFORM GUIDANCE, THE FLORIDA SINGLE AUDIT ACT

(FLORIDA STATUTE 215.97) AND CHAPTER 10.650 OF THE RULES OF THE AUDITORGENERAL OF THE STATE OF FLORIDA

Board of Directors

Gulf Coast Children's Advocacy Center, Inc.Panama City, Florida

Report on Compliance for Each Major Federal Program and State Project

We have audited Gulf Coast Children's Advocacy Center, Inc.'s (the Organization) compliance withthe types of compliance requirements described in the 0MB Compliance Supplement that could havea direct and material effect on each of Gulf Coast Children's Advocacy Center, Inc.'s major federalprograms and state projects for the year ended December 31, 2017. The Organization's major federalprograms and state projects are identified in the summary of auditor's results section of theaccompanying schedule of findings and questioned costs.

Management's Responsibility

Management is responsible for compliance with federal and state statutes, regulations, and the termsand conditions of its federal awards and state financial assistance applicable to its federal programsand state projects.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of the Organization's majorfederal programs and state projects based on our audit of the types of compliance requirementsreferred to above. We conducted our audit of compliance in accordance with auditing standardsgenerally accepted in the United States of America; the standards applicable to financial auditscontained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance); the Florida Single Audit Act (Florida Statute 215.97) and Chapter 10.650 of the Rules of



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the Auditor General of the State of Florida. Those standards and the Uniform Guidance require thatwe plan and perform the audit to obtain reasonable assurance about whether noncompliance with thetypes of compliance requirements referred to above that could have a direct and material effect on amajor federal program or state project occurred. An audit includes examining, on a test basis,evidence about the Organization's compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances.

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

Opinion on Each Major Federal Program and State Project

In our opinion, the Organization complied, in all material respects, with the types of compliancerequirements referred to above that could have a direct and material effect on each of its majorfederal programs and state projects for the year ended December 31, 2017.

Report on Internal Control Over Compliance

Management of Gulf Coast Children's Advocacy Center, Inc. is responsible for establishing andmaintaining effective internal control over compliance with the types of compliance requirementsreferred to above. In planning and performing our audit of compliance, we considered theOrganization's internal control over compliance with the types of requirements that could have adirect and material effect on each major federal program and state project to determine the auditingprocedures that are appropriate in the circumstances for the purpose of expressing an opinion oncompliance for each major federal program and state project and to test and report on internal controlover compliance in accordance with the Uniform Guidance, The Florida Single Audit Act (FloridaStatute 215.97), and Chapter 10.650 of the Rules of the Auditor General of the State of Florida butnot for the purpose of expressing an opinion on the effectiveness of internal control over compliance.Accordingly, we do not express an opinion on the effectiveness of the Organization's internal controlover compliance.

A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal coiirse of performing theirassigned functions, to prevent, or detect and correct, noncompliance with a type of compliancerequirement of a federal program or state project on a timely basis. A material weakness in internalcontrol over compliance is a deficiency, or a combination of deficiencies, in internal control overcompliance, such that there is a reasonable possibility that material noncompliance with a type ofcompliance requirement of a federal program or state project will not be prevented, or detected andcorrected, on a timely basis. A significant deficiency in internal control over compliance is adeficiency, or a combination of deficiencies, in internal control over compliance with a type ofcompliance requirement of a federal program or state project that is less severe than a materialweakness in internal control over compliance, yet important enough to merit attention by thosecharged with governance.

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Our consideration of internal control over compliance was for the limited purpose described in thefirst paragraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies. We did not identify anydeficiencies in internal control over compliance that we consider to be material weaknesses.However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of ourtesting of internal control over compliance and the results of that testing based on the requirements ofthe Uniform Guidance, The Florida Single Audit Act (Florida Statute 215.97), and Chapter 10.650 ofthe Rules of the Auditor General of the State of Florida. Accordingly, this report is not suitable forany other purpose.

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Panama City, FloridaSeptember 20, 2018

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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS – FEDERAL

AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2017

A. SUMMARY OF AUDITOR’S RESULTS

1. The auditor’s report expresses an unqualified opinion on the Gulf Coast Children’s Advocacy

Center, Inc. basic financial statements.

2. No significant deficiencies in internal control were disclosed during the audit of the financial

statements in the Independent Auditor’s Report on Internal Control Over Financial Reporting

and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed

in Accordance with Government Auditing Standards.

3. No instances of noncompliance material to the financial statements of Gulf Coast Children’s

Advocacy Center, Inc. were disclosed during the audit.

4. No significant deficiencies relating to the audit of the major federal programs or state projects

were reported in the Independent Auditor’s Report on Compliance for Each Major Program and

Project and on Internal Control Over Compliance Required by the Uniform Guidance, The

Florida Single Audit Act (Florida Statute 215.97) And Chapter 10.650 of the Rules of the

Auditor General of the State of Florida.

5. The auditor’s report on compliance with requirements that could have a direct and material effect

on each major program or project for the Gulf Coast Children’s Advocacy Center, Inc. expresses

an unqualified opinion.

6. Our audit disclosed no findings required to be reported in accordance with 2 CFR Section

200.516(a) or Rules of Auditor General 10.654(1)(g).

7. The programs and projects tested as major programs and projects consisted of the following:

Federal Major Programs:

CFDA #16.589 – Rural Domestic Violence, Sexual Assault and Stalking Assistance Program

CFDA #93.667 – Medical Services for Abused and Neglected Children, Child Protection Team

and Sexual Abuse Treatment Program

Dollar threshold for distinguishing between Type A and Type B programs was $750,000 for

major federal programs.

The auditee did not qualify as a low-risk auditee

State Major Projects:

CSFA #64.006 – Medical Services for Abused and Neglected Children

CSFA #22.016 – Florida Network of Children Advocacy Centers

Dollar threshold for distinguishing between Type A and Type B projects was $236,733 for major

state projects.

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GULF COAST CHILDREN’S ADVOCACY CENTER, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS – STATE PROJECTS


B. FINANCIAL STATEMENT FINDINGS

There were no material weaknesses or instances of noncompliance related to the financial

statements.

C. FEDERAL AWARD AND STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS

There were no audit findings related to federal awards required to be reported by 2 CFR Section

200.516(a).

There were no audit findings related to state financial assistance required to be reported by Rules of

the Auditor General 10.654(1)(g).

D. STATUS OF FEDERAL AWARDS AND/OR STATE FINANCIAL ASSISTANCE PRIOR YEAR FINDINGS

There were no findings related to prior year federal awards and/or state financial assistance.

E. OTHER MATTERS

1. No management letter is required because there were not findings required to be reported in the

management letter.

2. No Summary Schedule of Prior Audit Findings is required because there were no prior audit

findings related to federal programs and/or state financial assistance.

3. No Corrective Action Plan is required because there were no findings required to be reported by

2 CFR Section 200.516(a) or Rules of the Auditor General 10.654(1)(g).

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CFDA/ Contract/

CSFA Grant

No. No.

Federal

U.S. Department of Justice

Passed through Florida Office of Attorney General

Victims of Crime Act 16.575 VOCA 2016-00824 $ 288,764

Victims of Crime Act 16.575 VOCA 2017-00446 133,401

Passed through Florida Network for Children's Advocacy Centers, Inc.

Support of Children's Advocacy Centers 16.758 PANA-FL-DS17 7,000

Passed through Florida Council Against Sexual Violence

Rural Domestic Violence, Sexual Assault and Stalking Assistance Program 16.589 * 15RUR01 141,090

Total U.S. Department of Justice 570,255

U.S. Department of Health and Human Service

Passed through Florida Department of Health

Social Services Block Grant - Child Protection Team 93.667 * CPX2A 363,917

Passed through Bay, Franklin, Gulf Health Start Coalition, Inc.

Health Resources and Services Adm. 93.994 GCCAC01 2017-2018 74,853

Medicaid Assistance Payments 93.778 GCCAC01 2017-2018 90,024

Maternal, Infant and Early Childhood Home Visiting 93.505/93.870 D89MC28265/X10MC29478 107,600

Total U.S. Department of Health and Human Service 636,394

Total Expenditures of Federal Awards $ 1,206,649

State of Florida

Florida Department of Health

Medical Services for Abused and Neglected Children (CPT) 64.006 * CPX2A $ 278,103

Medical Services for Abused and Neglected Children (SATP) 64.006 * CSBPC 32,826

Total Department of Health 310,929

Florida Council Against Sexual Violence

Rape Crisis Centers 64.069 16TFGR25 137,625

Rape Crisis Program Trust Fund 64.061 16TFGR25 78,538

Total Florida Council Against Sexual Violence 216,163

Office of the Attorney General

Passed through Florida Council Against Sexual Violence

Rape Crisis Centers 41.010 16OAG25 18,722

Rape Crisis Centers 41.010 17OAG25 12,296

31,018

Office of the State Court Administrator

Passed through Florida Network for Children's Advocacy Centers, Inc.

FL Network of Children Advocacy Centers 22.016 * CAC-04 16/17 82,657

FL Network of Children Advocacy Centers 22.016 CAC-04 16/17 (CPT) 20,733

FL Network of Children Advocacy Centers 22.016 * CAC-04 17/18 116,500

FL Network of Children Advocacy Centers 22.016 CAC-04 17/18 (CPT) 11,111

Total Office of the State Court Administrator 231,001

Total Expenditures of State Financial Assistance $ 789,111

*denotes major program/project

See accompanying notes to schedule of expenditures of federal awards and state financial assistance

See independent auditor's report.

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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND

STATE FINANCIAL ASSISTANCE


ExpendituresFederal Programs/State Project

Pass-through Entity

Federal/State Agency

GULF COAST CHILDREN’S ADVOCACY CENTER, INC. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

AND STATE FINANCIAL ASSISTANCE YEAR ENDED DECEMBER 31, 2017

NOTE A – BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards and state financial assistance (the

Schedule) includes the federal award and state financial assistance activity of Gulf Coast Children's

Advocacy Center, Inc. under programs of the federal government and projects under the State of

Florida for the year ended December 31, 2017. The information in this Schedule is presented in

accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform

Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards

(Uniform Guidance) and the Florida Single Audit Act (Florida Statute 215.97). Because the

Schedule presents only a selected portion of the operations of Gulf Coast Children's Advocacy

Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or

cash flows of Gulf Coast Children's Advocacy Center, Inc.

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such

expenditures are recognized following the cost principles contained in the Uniform Guidance and

Chapter 10.650, Rules of the Auditor General, wherein certain types of expenditures are not

allowable or are limited as to reimbursement.

NOTE C – INDIRECT COST RATE

Gulf Coast Children's Advocacy Center, Inc. records expenditures of federal awards and state

financial assistance using the direct cost method and the 10% de minimis indirect cost rate

depending on which is allowable by the grantor, both of which are allowed in accordance with the

Uniform Guidance.

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