lnc. June rpts/2011 heres help.pdf · Here's Help, lnc. NOTES TO THE FINANCIAL STATEMENTS June...

Here's Help, lnc.

FINANCIAL STATEMENTS ANDSUPPLEMENTAL INFORMATION

June 30,2011

Cha.les A. KrÒlich, ?.A.C er tifted P ublic Accountants

CONTENTS

INDEPENDENT AUDITOR'S REPORT

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITIONSTATEMENT OF ACTIVITI ESSTATEMENT OF FUNCTIONAL EXPENSESSTATEMENT OF CASH FLOWSNOTES TO THE FINANCIAL STATEMENTS

SUPPLEMENTAL I NFORMATION

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSSCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCENOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDS

AND STATE FINANCIAL ASSISTANCESCHEDULE OF REVENUESSCHEDULE OF STATE EARNINGSPROGRAM/COST CENTER ACTUAL EXPENSES AND REVENUES SCHEDULE:

PART I - ACTUAL SOURCES & REVENUESPART II - ACTUAL EXPENSES

SCHEDULE OF RELATED PARTY TRANSACTION ADJUSTMENTSSCHEDULE OF BED-DAY AVAILABILÍTY PAYMENTS

OTHER AUDITOR'S REPORTS

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OFFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITHG OV ERN M ENT AU D IT ING S TANDARDS

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTSTHAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJORPROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN

ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER 10.650RULES OF THE AUDITOR GENERAL

SCHEDULE OF FINDINGS AND QUESTIONED COSTS - FEDERAL AWARDSAND STATE PROJECTS

PAGE

1

34567

1B

19

202122

23242526

28

30

32

Charles A. KrblTch, ?.4.C er tifie d" P ublic Ac countmús

INDEPENDENT AUDITOR'S REPORT

Board of DírectorsHere's Help, lnc.

We have audited the accompanying statement of financial position of Here's Help, lnc. (anonprofit organization) as of June 30,2011, and the related statements of activities,functional expenses and cash flows for the year then ended. These financial statementsare the responsíbility of Here's Help, lnc.'s management. Our responsibility is to express anopínion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards. issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonableassurarìce about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accountingprinciples used and the significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

ln our opinion, the financial statements referred to above present fairly, in all materialrespects, the financial position of Here's Help, Inc. as of June 30,2011, and the changes inits net assets and its cash flows for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

ln accordance with Government Auditing Standards, we have also issued our report datedDecember 8,2011, on our consideration of Here's Help, lnc.'s internal control over financialreporting 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 todescribe the scope of our testing of internal control over financial reporting and complianceand the results of that testing and not to provide an opinion on the internal control overfinancial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be considered in assessingthe results of our audit.

Our audit was conducted for the purpose of forming an opinion on the basic financialstatements. The schedules of expenditures of federal awards and state financialassistance are presented for purposes of additional analysis as required by U. S. Office ofManagement and Budget Circular A-133, Audíts of Sfafeg Local Governments, and Non-Profit Organizations and Chapter 10.650 Rules of the Auditor General, and are not arequired part of the financial statements. The accompanying supplementary schedule of

1119 Southeast Third Avenue i Fort Lauderdale, Florida 33316-1109 t 954.764.4554 ç Fax954.764.2336

Board of DirectorsHere's Help, lnc.December 8,2011

Paqe 2

revenues, schedule of state earnings, program/cost center actual expenses and revenueschedule part I - actual sources & revenues and part ll - actual expenses, schedule ofrelated party transaction adjustments and schedule of bed-day availability payments, arealso presented for purposes of additional analysis and are not a required part of thefinancial statements. Such information is the responsibility of management and wasderived from and relates directly to the underlying accounting and other records used toprepare the financial statements. The information has been subjected to the auditingprocedures applied in the audit of the basic financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the financial statements or to the financialstatements themselves, and other additional procedures in accordance with auditingstandards generally accepted in the United States of America. ln our opinion, theinformation is fairly stated in all material respects in relation to the financial statements as awhole.

re^ü-üe#Mffi{rwFort Lauderdale, FloridaDecember 8,2011

Here's Help, lnc.

STATEMENT OF FINANCIAL POSITION

June 30, 201'1

ASSETS

Current assets:CashAccounts receivable:

Patients, net of allowance of $1,202GrantsMedicaidFood nutritionOther

Pledge receivable, netPrepaid expenses

Total current assets

Property and equipment, net

Other assets:Pledge receivable long-term, netlnvestments - endowment fundSecurity deposits

Total other assets

Total assets

LIABILITIES AND NET ASSETS

Current liabilities:Accounts payable and accrued expensesClient trust funds

Total current liabilities

Commitments and contingencies:

Net assets:UnrestrictedTem porarily restrictedPermanently restricted

Total net assets

Total liabilities and net assets

See accompanying notes to the financial statements.

$ 147,035

1,202214,441

18,7753,191

10,1738,638

14,524

417,g7g

1,417,947

19,5943g6,ggg

6,059

411,641

$ __2,247,467_

85,234782

86,016

1,696,431475,0_20

2,161,451

$ _2247,467

Here's Help, lnc.

STATEMENT OF ACTIVITIES

For the year ended June 30, 201 1

ïemporarily PermanentlyUnrestricted Restricted Restricted

Public support and revenues:Public support:

Grants from governmental agenciesGrants from private foundationsDonationsFood stampsFood nutrition

Total public support

Revenues:Client fees for servicesFundraising incomeOther incomelnterest and dividend incomeGain on investments, net

Total revenues

Net assets released from restrictions:Satisfaction of purpose or time restriction

Total public support, revenue and net assetsreleased from restrictions

Expenses:Program services:

OutpatientASA Residential Level-2CSA Residential Level-2CMH Residential Level-2Residential Level-4Day/Night

Total program services

Supporting services:General and administrativeFundraising

Total supporting services

Total expenses

Change in net assets

Net assets, beginning of year

Net assets, end ofyear

43,166

61,608 (61,608)

3,564,415 (18,442)

524,818661,708984,897

50,061223,659165,538

2,610,681

678,403351,296

1,029,699

3,640,380

(75,e65) (18,442)

1,762,396 493,462

$ 1,686,431 $ 475,020

$ 2,181 ,506 $26,880

484,68871,00041,901

2,805,975

52,663565,523

2,8379,803

66,006

696,832

Total

$ 2,201,67249,880

484,68871,00041,901

2,849,141

52,663565,523

2,8379,803

66,006

696,832

20,16623,000

3,545,973

524,818661,708984,897

50,061223,659165,538

2,610,681

678,403351,296

1,029,699

3,640,380

(94,407)

2,255,858


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Here's Help, lnc.

STATEMENT OF CASH FLOWS


Cash flows from operating activities:Change in net assetsAdjustments to reconcile change in net assets to

net cash used in operating activities:DepreciationAllowance for doubtful accountslnterest income on endowment fundRealized and unrealized gain on investment-endowment fund, net

Changes in assets (lncrease) Decrease:Accounts receivable:

Patients, net of allowance of $1,202GrantsMedicaidFood nutritionOther

Pledge receivable, netPrepaid expenses

Changes in liabilities (Decrease) lncrease:Accounts payable and accrued expensesClient trust funds

Net cash used in operating activities

Cash flows from investing activities:Purchase of investments, including reinvestments - endowment fundProceeds from sale of investments - endowment fundPurchase of property and equipment

Net cash used in investing activities

Net decrease in cash

Cash at beginning of year

Cash at end of year

Supplemental disclosures of cash flow information:lnterest paid in cash

lncome taxes paid in cash

(94,4O7)

55,032(2,615)(4,523)

(71,286)

1,935(14,353)(13,504)

41475,5968,2272,504

10,533(2,342\

(48,799)

(43,153)43,153

(31,407)

(31,407\

(80,206)

227,241

$ ____112,039_

$--

$


Here's Help, lnc.

NOTES TO THE FINANCIAL STATEMENTS

June 30,2011

NOTE A _ SUMMARY OF ACCOUNTING POLICIES

Description and Puroose of the Orqanization

Here's Help, lnc. (the "Organization") is a not-for-profit Florida corporatíon exempt fromFederal income taxes under Section 501(c)(3) of the lnternal Revenue Code. TheOrganization is involved in the prevention, rehabilitation and education of persons with drugrelated problems.

A summary of Here's Help, lnc.'s significant accounting policies consistently applied in thepreparation of the accompanying financial statements follows.

Basis of Accountinq and Reportino

The financial statements are prepared on the accrual basis of accounting in accordancewith accounting principles generally accepted in the United States of America as outlined inthe Financial Accounting Standards Board Accounting Standards Codification ('ASC").Under the accrual basis of accounting, revenues are recorded as earned and expenses arerecorded at the time liabilities are incurred.

Financial Statement Presentation

Financial statement presentation follows the Financial Accounting Standards Board ASC958 (formerly Statement of Financial Accounting Standards (SFAS) No. 1 17, "FinancialStatements of Not-for-Profit Organizations"). Under FASB ASC 958-205, the Organizationis required to report information regarding its financial position and activities according tothree classes of net assets: unrestricted net assets, temporarily restricted net assets, andpermanently restricted net assets.

Revenues are reported as increases in unrestricted net assets unless use of the relatedassets is limited by donor-imposed restriction. Expenses are reported as decreases inunrestricted net assets. Gains and losses on assets or liabilities are reported as increasesor decreases in unrestricted net assets unless their use is restricted by explicit donorstipulation or by law. Expirations of temporary restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) arereported as net assets released from restriction. Accordingly, for reporting purposes, netassets of the Organization and changes therein are classified as follows:

Temporarily Restricted - Net assets whose use by the Organization is limited by donor-imposed stipulations that can be fulfilled by either passage of time or by actions of theOrganization pursuant to those stipulations. Temporarily restricted net assets consist ofunexpended grant funds. See Note F.

Permanently Restricted - Net assets whose use by the Organization is limited by donor-

Here's Help, lnc.


June 30,2A11

NOTE A _ CONTINUED

Financial Statement Presentation - continued

imposed stipulations that are neither fulfilled with the passage of time nor otherwiseremoved by actions of the Organization. The Organization at June 30, 2011 had nopermanently restricted net assets.

Contributions

The Organization also has adopted FASB ACS 958-605 (formerly SFAS No. 110,"Accounting for Contributions Received and Contributions Made"). ln accordance withFASB ACS 958-605, contributions received are recorded as unrestricted, temporarilyrestricted, or permanently restricted support depending on the existence and/or nature ofany donor restrictions.

Support that is restricted by the donor is reported as an increase in temporarily orpermanently restricted net assets, depending on the nature of the restriction. When arestriction expires (that is, when a stipulated time restriction ends or purpose restriction isaccomplished), temporarily restricted net assets are reclassified to unrestricted net assetsand reported in the Statement of Activities as net assets released from restrictions.

Unconditional promises to give are recognized as revenues or gains in the period receivedand as assets, decreases of liabilities, or expenses depending on the form of the benefitsreceived. Conditional promises to give are recognized when the conditions on which theydepend are substantially met.

Public Support. Revenue and Operations

Agencies and organizations, volunteers, businesses, the general community and otherscontribute substantial amounts of materials and services toward the fulfillment of theprograms administered by the Organization. To the extent that contributions ofmaterials are made under the control of the Organization, these contributions areobjectively measured and represent program or support expenditures which wouldotherwise be incurred by the Organization's personnel. These contributions have beenreflected in both public support and program expense in the accompanying financialstatements at their fair market value.

lnvestments

The Organization adopted FASB ACS 958-320 (formerly SFAS No. 124, "Accounting forCertain lnvestments Held by Not-for-Profit Organizations,") in 1997. Under FASB ACS g5B-320, investments in marketable securities with readily determinable fair values and allinvestments in debt securities are valued at their fair values in the statement of financial

Here's Help, lnc.


NOTE A _ CONTINUED

lnvestments - continued

position. Unrealized gains and lossesmarketable securities and investmentsfair market value on the date received.

June 30,2011

are included in the change in net assets. Thosereceived as gifts or donations are recorded at their

Propertv and Equipment and Depreciation

Property and equipment are recorded at cost or at estimated fair market value at the dateof gift, if donated. Depreciation is provided for assets acquired after January 1,1983, andis computed using the American Hospital Association's estimated useful lives, inaccordance with the Florida Administrative Code. These estimated service lives, rangefrom three to forty years, on a straight-line basis. Management has a policy to capitalizeitems in excess of $1,000, while repairs and maintenance not extending the useful life ofan asset are expensed.

Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect thereported amounts of assets and liabilíties and disclosure of contingent assets and liabilitiesat the date of the financial statements and the reported amounts of revenues andexpenses during the reporting period. Actual results could differ from those estimates.

lncome Taxes

The Organization has been granted an exemption from income taxes under lnternalRevenue Code Section 501(c)(3), as a nonprofit corporation. As such, Here's Help, lnc.does not pay income tax on its net "exempt function" income. The Organization does,however, pay tax on its "unrelated business income" whích is comprised of net íncome fromthe sale of sauces and investment income related to the Organization's non-qualifieddeferred compensation plan. No provision for income taxes is required for the year endedJune 30,2011. The Organization is not classified as a private foundation.

The Organization's income tax filings are subject to audit by various taxing authorities. TheOrganization's open audit periods are 20O7-2O1O. ln evaluating the Organization's taxprovisions and accruals, future taxable income, and the reversal of temporary differences,interpretations and tax planning strategies are considered. The Organization believes theirestimates are appropriate based on current facts and circumstances. The Organization'spolicy on statement of activities classification of interest and penalties related to income taxobligations, if any, is to include such items as part of interest expense and miscellaneousexpense, respectively.

Here's Help, lnc.


June 30,2011

NOTE A _ CONTINUED

Revenue Recoqnition - Grant Allocation

Grant allocations are recorded as earned. Expenditures are made in accordance with theterms of the contracts.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Organization considers cash on deposit,cash on hand, money market funds and certificates of deposit with original maturities ofless than three months, if any, to be cash equivalents.

Acquisitions of Nonexpendable Propertv

Property acquired by grants is considered to be owned by Here's Help, lnc. while used inthe program for which it was purchased or in other future authorized programs; however,the State of Florida and/or the United States has a reversionary interest in the property.Such property's disposition as well as the ownership of any proceeds therefrom is subjectto state and/or federal regulations. See Note F.

Donated Services

A significant number of volunteers have donated substantial hours to the Organization'sprograms and events during the year; however, these donated services are not reflected inthe financial statements since the services do not require specialized skills. Donatedprofessional services, goods, and facilities are reflected in the Statement of Activities attheir estimated fair value. For the year ended June 30, 2011, the Organization recorded$453,555 in donated goods and services.

Functional Expenses

The administrative costs of providing services to various programs and other activities havebeen summarized on a functional basis in the Statement of Activities. Certain costs havebeen allocated among the programs and supporting services benefited, in accordance withthe guidelines established by the Department of Children and Famllies.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is based on a current evaluation of the aging andcollectibility of the outstanding patients' accounts receivable. The rehabilitation centerallows for all income level patients to utilize the facilities. As such, even though astandardized sliding fee schedule is used, the services rendered to an indigent populationresult in a high write-off percentage.

10

Here's Help, lnc.


June 30,2011

NOTE A _ CONTINUED

Advertisinq Costs

The Organization expenses the costs of advertising as incurred.

Date of Manaqement Review

ln preparing the financial statements, the Organization has evaluated events andtransactions for potential recognition or disclosure through the date of this report. That dateis the date the financial statements were available to be issued.

NOTE B _ PLEDGES RECEIVABLE

Pledges receivable as of June 30, 201 1 are as follows:

Receivable in less than one yearReceivable in one to four years

Total pledges receivableLess discounts to net present valueNet pledges receivable

Discount rate used on long-term pledges is five percent (5%).

NOTE C _ PROPERTY AND EQUIPMENT

At June 30,2011, property and equipment consisted of the following:

UnrestrictedTemporarilyRestricted

$10,00020,00030,000(2,768)

$27,232

TotalLandBuildings and improvementsEquipmentComputer softwareLeasehold improvements

Less accumulated depreciationand amortization

$ 153,6471,652,495

226,63620,000

$445,875

$ 153,6472,098,370

226,63620,00076,222

2,574,875

1,157,029$1,417,847

56.392 19.8302,109,170 465,705

1.157.O28$ 952,142 $ 465,705

Depreciation and amortization expense was $55,032 for the year ended June 30,2011.

11

Here's Help, lnc.


June 30,2011

NOTE D _ INVESTMENTS _ ENDOWMENT FUND

The Board of Directors of Here's Help, lnc. established an endowmentexpressed intent of ensuring the long-term financial strength of thelnvestments at June 30,2011, are invested in marketable securities thatdeterminable fair value, consisting of money market funds and mutual funds.

FairCost Value

Unrestricted:Cash and cash equivalentsMutual funds

$ 4,925

fund with theOrganization.

have a readily

CarryingValue

331.422$ 4,925

382,063__$ rqgpgq

$ 4,92s382,063

$ 366.347 $ 386,988

The following schedule summarizes the investment return (Endowment Fund) and itsclassification in the Statement of Activities for the year ended June 3O,2011:

Temporarily PermanentlyUnrestricted Restricted Restricted

lnterest and dividends

Unrealized gainslnvestment feesGain on investments, net

NOTE E _ LINE OF CREDIT

9,803

71,296(5,280)

__$__!9p9q_

The Organization has established a líne of credit with a financial institution. This line is for$150,000 and carries an interest rate on the outstanding balance, if any, of one percentover the prime rate. As of June 30, 2011, there was no outstanding balance on the line ofcredit and no interest was paid during the year. The line of credit is due on demand withannual reviews; the next review is due in the first quarter of 2012.

NOTE F _ TEMPORARILY RESTRICTED NET ASSETS

The State of Florida, Department of Juvenile Justice has awarded the Organization severallegislative grants in prior years totaling $951,750 to construct juvenile dormitories and tomake general renovations. These grants provide for the Organization to hold title to theproperty and operate the property for its stated mission and temporarily restrict its use for aperiod of twenty years. The State holds liens on the property for twenty years with onetwentieth of each lien expiring annually.

T2

Here's Help, lnc.


June 30,2011

NOTE F - CONTINUED

During the year ended June 30, 2011 the Organization received a U.S. Department ofEnergy grant, through Miami-Dade County, to replace air conditioning equipment andceiling insulation. As a condition of this grant the Organization must maintain ownership ofthe property for ten years.

Temporarily restricted net assets that are available for the following uses as of June 30,2011 are as follows:

Property and equipment, net $465,705Horticultural program 9,315

$475,020

NOTEG_PENSIONPLAN

The Organization provides a 401(k) defined contribution pension plan for substantially all ofits employees. ln April 2009, the Organization temporarily suspended the employer's401(k) match. The Organization also has a deferred compensation plan for certain of itskey employees. Included in compensation and related expenses is the pension anddeferred compensation expense for the current year of $0 and $12,000 respectively, ofwhich zero represents current year funding of prior year benefits.

NOTE H - SPECIAL EVENTS AND FUNDRAISING

During the year ended June 30, 2011, Here's Help, lnc. sponsored several fundraisingevents. The results of these events are as follows:

Gross receiptsExpenses

Net revenue

NOTE I _ FAIR VALUE MEASUREMENT

$565,523350,896

$214,627

Financial instruments are composed of cash, cash equivalents, investments, pledgesreceivable, accounts receivable, and accounts payable.

The carrying amount of cash and cash equivalents, accounts receivable and accountspayable approximate fair value due to the short-term nature of such instruments.

Pledge receivable is recorded by discounting the anticipated cash flows utilizing currentinterest rates.

t3

Here's Help, lnc.


NOTE I _ CONTINUED

Endowment fund investments areStatement of Financial Position.disclosure framework:

June 30,2011

measured at fair value on a recurring basis in theThe Organization uses the following hierarchical

Level 1 - Measurement based upon quoted prices for identical assets in an activemarket as of the report date.

Level 2 - Measurement based upon marketplace inputs other than Level 1 that areobservable, either directly or indirectly, such as quoted prices in active markets forsimilar assets or liabilities, quoted prices for identical or simifar assets or liabilities ininactive markets, or other inputs that are observable or can be corroborated byobservable market data for substantially the full term of the assets or liabilities.

Level 3 - Measurement based on the Organization's assumptions about ahypothetical marketplace because observable market inputs are not available as ofthe reporting date.

The Organization uses appropriate valuation techniques based on the available inputs tomeasure the fair values of its assets and liabilities. When available, Here's Help, lnc.measures fair value using Level 1 inputs because they generally provide the most reliableevidence of fair value. Level 3 inputs have the lowest priority.

At June 30, 2011, Here's Help, lnc.'s investments consist of cash equivalents and mutualfunds. The valuations of Here's Help, Inc.'s investments according to the fair valuehierarchy are all Level 1. See Note D.

NOTE J _ COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Organization leases certain equipment and vehicles, under agreements that areoperating leases. Rental expense totaled $20,336 for the year ended June 30, 2011.

Rental commitments for the remaining terms of the lease are as follows:

2012201320142015

$ 16,981$ 14,203$ 11,250$ 1,933

14

Here's Help, lnc.


June 30,2011

NOTE J _ CONTINUED

Economic Dependencies

Here's Help, lnc. earns approximately fifty eight (58%) percent of total revenues fromgrants received either directly from the State of Florida, Department of Children and FamilyServices or as a subrecipient through the South Florida Behavioral Health Network. Thisrepresents a significant economic dependency. Additionally, the Organization derives inexcess of seventy (70o/o) percent of its fundraising income from a single event.

Concentration of Credit Risk

Financial instruments which potentially subject the Organization to concentrations of creditrisk are primarily cash and investments. The Organization invests its excess cash indeposits with major financial institutions and the carrying value approximates fair value.Deposit accounts are insured by the Federal Deposit lnsurance Corporation (FDIC) withunlimited deposit insurance coverage for non-interest bearing accounts while interestbearing accounts are insured up to $250,000. At June 30,2011 the Organization had nobalances in excess of federally insured amounts (FDIC). Here's Help, lnc. has notexperienced losses related to these investments.

NOTE K _ SUPPORT FROM THE STATE OF FLORIDA

The Organization received a substantial portion of its support from the State of Florida,under grant contract KH 22513 with the South Florida Behavioral Health Network (see NoteJ). This contract must be renegotiated annually. Although a maximum amount isestablished during the negotiation process, income is earned on a rate-based units-of-service basis. That is, the State establishes reimbursement rates based on "bed days" forresidential patients and "hours of contact" for out-patients. This rate is applied to thenumber of patient units provided by the Organization, as approved and subsequentlyreimbursed by the State of Florida through the South Florida Behavioral Health Networkunder the terms of the contract.

There is no certainty that this support will be received in future years. lf such support issubstantially reduced, this would have a material impact on the Organization's financialposition, results of operations, and cash flows.

NOTE L _ RELATED PARTY TRANSACTIONS/ADJUSTMENT

There is no adjustment for related party transactions for the purposes of complying with theterms of the State of Florida grant. There are no material related party transactions todisclose.

15

Here's Help, lnc.


June 30,2011

NOTE M _ ADMINISTRATIVE COST PERCENTAGE

The State of Florida granting agency requires that the Organization disclose theadministrative cost percentage of the Organization. The administrative cost percentage isdetermined by calculating the ratio of General and Administrative Expenses, as reportedon the Statement of Functional Expenses ($678,403), divided by the total expenses(SAMH grant-related) ($3,640,380), which equals approximately nineteen percent (19%).

t6

SUPPLEMENTAL I NFORMATION

Here's Help, lnc.

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the year ended June 30, 201 I

Federaf Grantor/Pass Through Grantor/Prooram Title

Federal ContractCFDA GrantNumber Number Expenditures

U.S. Department of Health and Human Serviceslndirect Programs

Passed through South Florida Behavioral Health Network

Temporary Assistance for Needy Families (TANF) 93.558 KH22513 $ 122,308

Block Grants for Community Mental Health Services 93.958 KH22513 20,454

Block Grants for Prevention and Treatment ofSubstance Abuse (SAPT) (Note 2)

Total U.S. Department of Health and Human Services

U.S. Department of Aqriculturelndirect Programs

Passed through Florida Department of Education

School Breakfast Program

National School Lunch Program

Passed through Florida Department of Agricultureand Consumer Affairs

National School Lunch Program

Total U.S. Department of Agriculture

U.S. Department of Justicelndírect Programs

Passed through Eleventh Judicial Circuit of Florida

Drug Court Discretionary Grant Program

Total U.S. Department of Justice

U.S. Department of Enerqvlndirect Programs

Passed through Miami-Dade County, Florida

American Recovery & Reinvestment Act (ARRA)Energy Efficiency and Conservation Block Grant

Total U.S. Department of Energy

Total expenditures of federal awards

The accompanlng notes are an integral part of this schedule.

93.959 KH22513 743,205

885,967

10.553 01-0214 16,416

10.555 01-0214 25,471

10.555 625

42,512

16.585 K08-235 10,727

10,727

20,166

20,1 66

$ ____e59,32?_

t8

81j28

Here's Help, lnc.

SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE


State Agency/Pass-through Entity/State Proiect

State ContractCSFA Grant StateNumber Number Expenditures

Department of Children and Familieslndirect Programs

Passed through South Florida Behavioral Health Network

Substance Abuse Treatment and Aftercare Servicesfor Children (Note 3)

Substance Abuse Treatment and Aftercare Servicesfor Adults (Note 3)

Adult Community Mental Health - CommunitySupport Services

Total expenditures of state financial assistance

The accompanying notes are an integral part of this schedule.

60.030 KH 22513 $ 961,961

60.033 KH 22513 194,486

60.053 KH 22513 37,491

$ ___L1_e3,e39_

l9

Here's Help, lnc.

NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AWARDSAND STATE FINANCIAL ASSISTANCE

For the year ended June 30,2011

NOTE 1 - BASIS OF PRESENTATION

The accompanying schedules of expenditures of federal awards and state financialassistance include the federal grant activity and state financial assistance of Here's Help,lnc. and are presented on the accrual basis of accounting. The information in theseschedules is presented in accordance with the requirements of OMB Circular A-133, Audítsof Sfafeg Local Governments, and Non-Profit Organizations and Chapter 10.650, Rules ofthe Auditor GeneraL Therefore some amounts presented in these schedules may differfrom amounts presented in, or used in the preparation of, the financial statements.

NOTE 2 - MAJOR FEDERAL PROGRAM

At June 30, 2011, the following program was identified as a Major Federal FinancialAssistance Program:

Block Grants for Prevention and Treatment of Substance Abuse (SAPT)

NOTE 3 _ MAJOR STATE FINANCIAL ASSISTANCE PROJECTS

At June 30, 2011, the following programs were identified as Major State FinancialAssistance Projects:

Substance Abuse Treatment and Aftercare Services for ChildrenSubstance Abuse Treatment and Aftercare Services for Adults

20

Here's Help, lnc.

SCHEDULE OF REVENUES

For the year ended June 30,2011

Unrestricted:

State SAMH Grants:Alcohol, drug abuse, and mental health

Grant contract numbers KH 22513

Other Government Fundinq:Other GrantsMedicaid

All Other Fundinq and Revenues:Urine testingFirst and third party feesVolunteer servicesContributions and donationsln-kind food and donated radio timeOther incomelnterest incomeRealized and unrealized gain (loss) on investments,

Total non-government fund ing

Net assets released from restrictions:Restrictions satisfied by time expiration

Total net assets released from restrictionsTotal of all unrestricted funding, revenues and

net assets released from restrictions

Temporarilv Restricted :

All Other Fundinq and Revenues:Governmental grantsPrivate grants

Net assets released from restrictions:Restrictions satisfied by time expiration

Total net assets released from restrictionsTotal of all temporarily restricted funding, revenues

and net assets released from restrictions

$ 2,079,905

170,82944,299

42,33610,327

197,730623,537265,200

2,9374,523

71,2951,207,775

61 60861 608

$ __9,564,11!_

$ 20,16623,000

(61,608)(61,608)

$ (18,442\

2l

Here's Help, lnc.

SCHEDULE OF STATE EARNINGS

Forthe year ended June 30,2011

1) Total Expenditures

2) Less Other State and Federal Funds

3) Less Non-Match SAMH Funds

4) Less Unallowable Costs per 65E-14, F.A.C.

5) Total allowable expenditures(Sum of lines 1,2,3, and 4)

6) Maximum available earnings( Line 5 times 75o/o)

7) Amount of State Funds requiring match

8) Amount due to Department(Subtract line 7 from line 6. lf negative, theamount of the difference is due the Departmentup to the amount of line B.)

$ 3,640,380

$ (188,093)

$ (1,464,776)

$ (413,599)

$ 1,573,912

$ 1,180,434

$ 514,651

$ 665,783

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I

OTHER AUDITOR'S REPORTS

Çhcrles ,A. Krblich, ?.4,C er tífie d F ublic Accounrltlts

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITINGSIANDARDS

Board of DirectorsHere's Help, lnc.

We have audited the financial statements of Here's Help, lnc. (a nonprofit organization) asof and for the year ended June 30, 2011, and have issued our report thereon datedDecember B, 2011. We conducted our audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards. issued by the ComptrollerGeneral of the United States.

lnternal Control Over Financial Reportinq

ln planning and performing our audit, we considered Here's Help, lnc.'s internal controlover financial reporting as a basis for designing our auditing procedures for the purpose ofexpressing our opinion on the financial statements, but not for the purpose of expressingan opinion on the effectiveness of Here's Help, lnc.'s internal control over financialreporting. Accordingly, we do not express an opinion on the effectiveness of theOrganization's internal control over fi nancial repo rti ng.

A deficíency in ínternal control exists when the design or operation of a control does notallow management or employees, in the normal course of performing their assignedfunctions, to prevent or detect and correct misstatements on a timely basis. A materialweakness is a deficiency, or combination of defÍciencies, in internal control such that thereis a reasonable possibility that a material misstatement of the entity's financial statementswill not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purposedescribed in the first paragraph of this section and was not designed to identify alldeficiencies in internal control over financial reporting that might be deficiencies, significantdeficiencies, or material weaknesses. We did not identify any deficiencies in internalcontrol over financial reporting that we consider to be material weaknesses, as definedabove.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Here's Help, lnc.'s financialstatements are free of material misstatement, we performed tests of its compliance withcertain provisíons of laws, regulations, contracts, and grant agreements, noncompliance

1119 Southeast Third Avenue I Fort Lauderdale, Florida 333L6-1109 ç 954.764.4554 t Fax954.764.2336


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with which could have a direct and material effect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisionswas not an objective of our audit, and accordingly, we do not express such an opinion. Theresults of our tests disclosed no instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards.

We noted certain other matters that we reported to management of Here's Help, lnc. in aseparate letter dated December 8,2011.

This report is intended solely for the information and use of management, the Board ofDirectors, others within the entity, specific legislative or regulatory bodies, federal and stateawarding agencies and pass-through entities and is not intended to be and should not beused by anyone other than these specified parties.

&,-&nffiMp*wFort Lauderdale, FloridaDecember 8,2O11

Chcrles A" Krblich, ".4.C er tified P ublic Ac c ountants

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTSTHAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMBCIRCULAR A-133 AND CHAPTER 10.650 RULES OF THE AUDITOR GENERAL

Board of DirectorsHere's Help, lnc.

Compliance

We have audited Here's Help, lnc.'s compliance with the types of compliance requirementsdescribed in the U. S. Office of Management and Budget (OMB) Circular A-133Compliance Supplement, and the requirements described in the Department of FinancialServices' State Projects Compliance Supplement, that could have a direct and materialeffect on each of Here's Help, lnc.'s major federal programs and state projects for the yearended June 30, 2011. Here's Help, lnc.'s major federal programs and state projects areidentified in the summary of auditor's results section of the accompanying schedule offindings and questioned costs. Compliance with the requirements of laws, regulations,contracts, and grants applicable to each of its major federal programs and state projects isthe responsibility of Here's Help, lnc.'s management. Our responsibility is to express anopinion on Here's Help, lnc.'s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generallyaccepted in the United States of America; the standards applicable to financial auditscontained in Governmental Auditing Standards, issued by the Comptroller General of theUnited States; and OMB Circular A-133, Audits of Sfafeg Local Governments and Non-Profit Organizations, and Chapter 10.650, Rules of the Auditor General. Those standards,OMB Circular A-133 and Chapter 10.650, Rules of the Auditor General, require that weplan and perform the audit to obtain reasonable assurance about whether noncompliancewith the types of compliance requirements referred to above that could have a direct andmaterial effect on a major federal program or state project occurred. An audit includesexamining, on a test basis, evidence about Here's Help, lnc.'s compliance with thoserequirements and performing such other procedures as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion. Ouraudit does not provide legal determination of Here's Help, lnc.'s compliance with thoserequirements.

ln our opinion, Here's Help, lnc. complied, in all material respects, with the compliancerequirements referred to above that could have a direct and material effect on each of itsmajor federal programs and state projects for the year ended June 30,2011.

1119 Southeast Third Avenue i Fort Lauderdale, Florida 33316-1109 I 954.764.4554 I Fax 954.764.2336


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lnternal Control Over Compliance

Management of Here's Help, lnc. is responsible for establishing and maintaining effectiveinternal control over compliance with the requirements of laws, regulations, contracts, andgrants applicable to federal programs and state projects. ln planning and performing ouraudit, we considered Here's Help, lnc.'s internal control over compliance with requirementsthat could have a direct and material effect on a major federal program or state project todetermine the auditing procedures for the purpose of expressing our opinion oncompliance and to test and report on internal control over compliance in accordance withOMB Circular A-133 and the Florida Single Audit Act, but not for the purpose of expressingan opinion on the effectiveness of internal control over compliance. Accordingly, we do notexpress an opinion on the effectiveness of Here's Help Inc.'s internal control overcompliance.

A deficiency in internal control over compliance exists when the design or operation of acontrol over compliance does not allow management or employees, in the normal courseof performing their assigned functions, to prevent, or detect and correct, noncompliancewith a type of compliance requirement of a federal program or state project on a timelybasis. A material weakness in internal control over compliance is a deficiency, orcombination of deficiencies, in internal control over compliance, such that there is areasonable possibility that material noncompliance with a type of compliance requirementof a federal program or state project will not be prevented, or detected and corrected, on atimely basis.

Our consideration of the internal control over compliance was for the limited purposedescribed in the first paragraph of this section and was not designed to identify alldeficiencies in internal control over compliance that might be deficiencies, significantdeficiencies, or material weaknesses. We did not identify any deficiencies in internalcontrol over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of management, the Board ofDirectors, others within the organization, specific legislative or regulatory bodies, federaland state awarding agencies and pass-through entities and is not intended to be andshould not be used by anyone other than these specified parties.

tr*ß"{t {"ß*ßM{rwFort Lauderdale, FloridaDecember 8,2O11

Here's Help, Inc.

SCHEDULE OF FINDINGS AND QUESTIONED COSTS -FEDERAL PROGRAMS AND STATE PROJECTS

For the year ended June 30,2A11

A. SUMMARY OF AUDIT RESULTS

Financial Sfafemenfs

1. The auditor's report expresses an unqualified opinion on the financial statements ofHere's Help, lnc.

2. No materialweaknesses or significant deficiencies were identified during the audit ofthe financial statements.

3. No instances of noncompliance material to the financial statements of Here's Help,lnc. were disclosed during the audit.

Federal Awards and State Projects

4. No material weaknesses or significant deficiencies were identified during the audit ofmajor federal awards programs and state financial assistance projects.

5. The auditor's report on compliance for the major federal award programs and statefinancial assistance projects for Here's Help, lnc. expresses an unqualified opinion.

6. Audit findings relative to the major federal award programs and state financialassistance projects for Here's Help, Inc. are reported in Part C and D of thisSchedule.

7. The programs tested as major programs included:

CFDAFederal Prooram Number

Block Grant for Prevention and Treatmentof Substance Abuse (SAPT) 93.959

CSFAState Financial Assistance Proiects Number

Substance Abuse Treatment and AftercareServices for Children 60.030

Substance Abuse Treatment and AftercareServices for Adults 60.033

B. The threshold for distinguishing Types A and B programs was $300,000 for majorfederal programs and for state projects.

32

Here's Help, lnc.

SCHEDULE OF FINDINGS AND QUESTIONED COSTS _FEDERAL PROGRAMS AND STATE PROJECTS _ CONTINUED

For the year ended June 3A,2O11

9. Here's Help, lnc. qualified as a low-risk auditee.

B. FINDINGS _ F]NANCIAL STATEMENT AUDIT

None.

C. FINDINGS AND QUESTIONED COSTS _ MAJOR FEDERAL PROGRAMS

None.

D. FINDINGS AND QUESTIONED COSTS _ MAJOR STATE PROJECTS

None.

E. OTHER ISSUES

No Summary Schedule of Prior Audit Findings is required because there were noprior audit findings related to federal programs or state projects; no CorrectiveAction Plan is required because there were no findings required to be reportedunder the Federal or Florida Single Audit Acts. A management letter as defined inAuditor General Rule 10.654(1Xe) is not presented because there are no itemsrelated to State financial assistance required to be reported in the managementletter.

JJ

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