CLC PARTNERSHIP

FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2016 AND 2015

AUDITEE IDENTIFICATION NO.: 94-0489880

CLC PARTNERSHIP

FINANCIAL STATEMENTS

YEARS ENDED JUNE 30, 2016 AND 2015

TABLE OF CONTENTS

PAGE

INDEPENDENT AUDITORS’ REPORT 1 - 2

FINANCIAL STATEMENTS

Statements of Financial Position 3

Statements of Activities 4

Statements of Cash Flows 5

NOTES TO FINANCIAL STATEMENTS 6 - 7

SUPPLEMENTAL INFORMATIONCombining Statement of Activities 8

Schedule of Expenditures of Federal Awards 9 Notes to Schedule of Expenditures of Federal Awards 10

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 11 - 12

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 13 - 14

SCHEDULE OF FINDINGS AND QUESTIONED COSTS 15

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 16

2016 2015

ASSETS

CURRENT ASSETSCash 45,647$ 206,286$Accounts receivable 396,199 327,696Prepaid expenses 534 0

TOTAL CURRENT ASSETS 442,380 533,982

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts payable 441,320 497,949Due to partners 1,000 36,000

TOTAL CURRENT LIABILITIES 442,320 533,949

UNRESTRICTED NET ASSETS 60 33

TOTAL LIABILITIES AND NET ASSETS 442,380$ 533,982$

CLC PARTNERSHIP

STATEMENTS OF FINANCIAL POSITION

JUNE 30, 2016 AND 2015

See Accompanying Notes to Financial Statements

Page 3

2016 2015

UNRESTRICTED REVENUEContract revenue 4,187,431$ 4,361,882$Supportive service reimbursed 53,563 42,813Interest income 27 33

TOTAL UNRESTRICTED REVENUE 4,241,021 4,404,728

UNRESTRICTED EXPENSESSalaries 2,855,484 3,036,722Payroll taxes 260,450 295,569Fringe benefits 287,444 281,624Training 49,124 66,511Supportive services 53,563 42,813Other operational expenses 734,929 681,456

TOTAL UNRESTRICTED EXPENSES 4,240,994 4,404,695

INCREASE IN UNRESTRICTED NET ASSETS 27 33

UNRESTRICTED NET ASSETS, beginning of year 33 0

UNRESTRICTED NET ASSETS, end of year 60$ 33$

CLC PARTNERSHIP

STATEMENTS OF ACTIVITIES

YEARS ENDED JUNE 30, 2016 AND 2015

See Accompanying Notes to Financial Statements

Page 4

2016 2015

CASH FLOWS FROM OPERATING ACTIVITIESIncrease in unrestricted net assets 27$ 33$Adjustments to reconcile increase in unrestricted net assets to net cash from (used by) operating activities

Changes in:Accounts receivable (68,503) (44,292)Prepaid expenses (534) 18,316Accounts payable (56,629) 212,964Due to partners (35,000) 17,684

NET CASH FROM (USED BY) OPERATING ACTIVITIES (160,639) 204,705

CASH FLOWS FROM INVESTING ACTIVITIES 0 0

CASH FLOWS FROM FINANCING ACTIVITIES 0 0

NET INCREASE (DECREASE) IN CASH (160,639) 204,705

CASH, beginning of year 206,286 1,581

CASH, end of year 45,647$ 206,286$

CLC PARTNERSHIP

STATEMENTS OF CASH FLOWS

YEARS ENDED JUNE 30, 2016 AND 2015

See Accompanying Notes to Financial Statements

Page 5

Page 6

CLC PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2016 AND 2015

NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CLC Partnership is an informal partnership between three partners. The partners in thepartnership are the Central Labor Council, Regenerate California Innovation, and ProPath,Inc. The partnership provides job seekers and businesses within Fresno and San MateoCounties with a comprehensive array of employment-related services, which will result inincreased employment and a more effective workforce development system with theCounties. The partnership is funded by grants from the Fresno Regional WorkforceInvestment Board and the County of San Mateo.

The following are the significant accounting policies of the organization:

Method of accounting – The financial statements are prepared using the accrual basis ofaccounting, in which unrestricted support and revenue are recognized when earned or dueand expenses are recognized when incurred.

Accounting estimates – The preparation of financial statements in conformity withgenerally accepted accounting principles requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenses during the reporting period. Actual results could differfrom those estimates.

Accounts receivable – Accounts receivable consist of amounts billed to Fresno RegionalWorkforce Investment Board and the County of San Mateo for services rendered. Based onprior collection experience, management does not consider an allowance for bad debtsnecessary.

Advertising costs – Advertising costs are expensed as incurred and totaled $0 and $10,906for the years ended June 30, 2016 and 2015, respectively.

NOTE 2: CREDIT RISK

The organization maintains its cash accounts primarily with one institution located in Fresno,California. The Federal Deposit Insurance Corporation (FDIC) insures total deposit accountcash balances up to $250,000 per bank. At June 30, 2016 and 2015, the organization hadaccounts with combined balances of $0 and $31,265, respectively, that were not FDICinsured.

NOTE 3: CONCENTRATION OF REVENUE

During the years ended June 30, 2016 and 2015, approximately 73% and 74%, respectively,of the organization’s funding was from grants from the Fresno Regional WorkforceInvestment Board.

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CLC PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2016 AND 2015

NOTE 4: SUBSEQUENT EVENTS

Management has evaluated subsequent events through February 7, 2017, (date financialstatements available to be issued) and determined no events have occurred subsequent toJune 30, 2016 that would require adjustment to, or disclosure in the financial statements.

Page 9

CLC PARTNERSHIP

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

YEAR ENDED JUNE 30, 2016

Page 10

CLC PARTNERSHIPNOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

YEAR ENDED JUNE 30, 2016

NOTE 1: BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes thefederal grant activity of CLC Partnership under programs of the federal government for the yearended June 30, 2016. The information in this schedule is presented in accordance with therequirements of Title 2, U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of the CLC Partnership, itis not intended to and does not present the financial position, changes in net assets or cash flowsof the CLC Partnership.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in OMB Circular A-122,Costs Principles for Non-profit Organizations, or the cost principles contained in Title 2, U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principlesand Audit Requirements for Federal Awards wherein certain types of expenditures are notallowable or are limited as to reimbursement.

CLC Partnership has not elected to use the 10 percent de minimis indirect cost rate as allowedunder the uniform guidance.

NOTE 3: CLUSTERS

The WIA/WIOA Cluster includes the following CFDA numbers:

17.258 17.278

Federal expenditures for the WIA/WIOA Cluster totaled $4,020,299.

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CLC PARTNERSHIP

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2016

SUMMARY OF AUDITORS’ RESULTS

Financial StatementsType of auditor’s report issued: Unmodified Opinion

Internal control over financial reporting: Material weakness identified: No Significant deficiencies identified: None Reported

Noncompliance material to financial statements noted: No

Federal AwardsInternal control over major program:

Material weakness identified: No Significant deficiencies identified: None Reported

Type of auditor’s report issued on compliance for major program: Unmodified Opinion

Any audit findings disclosed that are required to be reported in accordancewith 2 CFR Section 200.516(a): No

Major programs:

CFDA Number Name of Program

17.25817.278

WIA/WIOA Adult ProgramWIA/WIOA Dislocated Workers

Dollar threshold used to distinguish between type A and type B programs: $750,000

Auditee qualified as a low-risk auditee: Yes

FINDINGS – FINANCIAL STAEMENT AUDIT Current year financial statement findings None

FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT None

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CLC PARTNERSHIP

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

YEAR ENDED JUNE 30, 2016

FINANCIAL STATEMENT AUDIT None

FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT None