Calexico City Council
May 8, 2024

AGENDA
ITEM
23 DocuSign Envelope ID: 88CC1AD8-9BB9-413C-B85A-13DB09A54B73 AGENDA
CALEXICO California ITEM

WHERE CALIFORNIA AND MEXICO MEET
23 CITY COUNCIL

AGENDA STAFF REPORT
DATE: May 8, 2024
TO: Mayor and City Council
-DocuSigned by:

APPROVED BY: Esperanza Colio Warren, City Manager glazlan. 8111D9EC15C642C.

REVIEWED BY: Sandra L. Fonseca, Interim Finance Director • St - DocuSigned by:

PREPARED BY: Esperanza Colio Warren, City Manager
-8111D9EC15C642C...

SUBJECT: Discussion/Action for Proposals Submitted to the City of Calexico in Response to a Request for Proposals to Assist Migrant Asylum Seekers.

1. Discussion/Action Approval of a United Methodist Emergency Migrant Response Network on a not to exceed $357,566.00 a year (Level 1).

2. Discussion/Action Approval of a Migrant Day Center at Calexico United Methodist Church on a not to exceed $215,848.00 a year (Level 2).

Recommendation:

Discussion/Action for proposals submitted to the City of Calexico in response to a request for proposals to assist migrant asylum seekers.

1. Discussion/Action Approval of a United Methodist Emergency Migrant Response Network on a not to exceed $357,566.00 a year. (Level 1)

2. Discussion/Action Approval of a Migrant Day Center at Calexico United Methodist Church on a not to exceed $215,848.00 a year. (Level 2)
Background:

On December 29, 2022, the City of Calexico adopted a Resolution proclaiming the existence of a local emergency due to the release of additional number of migrants seeking asylum in the United States. The increase of migrants being released in the City of Calexico were, and continues to be, through the Calexico West Port of Entry.

On April 27, 2023, the City Council approved a letter to Senator Padilla with a request for $2,000,000.00 to build local capacity to support asylum seekers which were being released in the border community of Calexico.

On January 24, 2024, the City Council authorized the City Manager to sign an allocation notification and award for funding in the amount of $2,000,000.00.

On February 21, 2024, the City Council during its regular meeting, held a discussion on the proposed asylum seekers and migrant assistance plans to be funded by a $2,000,000.00 grant from the California Department of Social Services - Office of Equity. With a majority of votes, the City Council directed the City Manager to release a request for proposals to nonprofit organizations to provide services to asylum seekers.

On March 20, 2024, the City released a request for proposals to several nonprofit organizations to provide services to asylum seekers.

Discussion and Analysis:

On April 4, 2024, the Office of the City Clerk received one (1) proposal from The United Methodist Emergency Migrant Response Network. United Methodist Emergency Migrant Response Network includes the following two programs within their proposal:

Program No. 1 - United Methodist Emergency Migrant Response Network with a cost of $357,566.00 a year.

Scope of Work and Cost:

The United Methodist Emergency Border Response Network successfully provides emergency services and transport up to 50 migrants per month. United Methodist Emergency Border Response Network is requesting $27,245.00 per month or $357,566.00 per year. This will allow United Methodist Emergency Border Response Network to quadruple capacity to over 200 migrants per month by increasing the amount of direct service to asylum seekers: translation, case management, transportation services to other locations, food, and temporary shelter. By applying as a fiscally sponsored project of Mission Edge San Diego to administer this grant, Mission Edge will provide reports to the city and handle the administrative tasks associated with accounting and staffing this project.

Program No. 2 - Migrant Day Center at Calexico United Methodist Church with a cost of $215,848.00 a year.

Scope of Work and Cost:

Requesting $17,987.00 per month or $215,848.00 per year, Calexico United Methodist Church will give up to 50 migrants per day an indoor place to rest, regroup, eat a meal and coordinate travel plans. Due to extreme temperatures during summer and winter, the center will be open Monday thru Friday 10:00 am to 6:00 pm. As stated above, by applying as a fiscally sponsored project of Mission Edge San Diego to administer this grant, Mission Edge will provide reports to the city and handle the administrative tasks associated with accounting and staffing this project. 2 Please note that the cost associated with Program No. 2 is dependent on fully funding Program No. 1.

Fiscal Impact:

Other Operating Grants Budgeted Item for PY 2023-2024
Fund No. 299-00-000-53001-000 $2,000,000.00
$2,000,000.00
Coordinated With:

Finance Director
City Manager's Office
Attachments):

1. Request for Proposals for Asylum-Seekers Services

2. The United Methodist Emergency Migrant Response Network proposal:
a. Program No. 1 - United Methodist Emergency Migrant Response Network with a cost of $357,566.00 a year.
b. Program No. 2 - Migrant Day Center at Calexico United Methodist Church with a cost of $215,848.00 a year.
3 Attachment No. 1
Rosa Soto
Subject: FW: City of Calexico - Request for Proposals - Asylum Seekers Begin forwarded message:

From: Esperanza Colio <[email protected]>
Date: March 20, 2024 at 4:19:00 PM PDT
To: Ricardo Ortega <[email protected]>, Cindy Alba <[email protected]>, [email protected], [email protected], Blanca Morales <[email protected]>, Cynthia Rodriguez <[email protected]>, [email protected], [email protected], Margaret Sauza <[email protected]>, [email protected],[email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], Sara Griffen <[email protected]>, [email protected], [email protected], "Padilla-Leyva, Maribel" <[email protected]>
Cc: Armando Orozco <[email protected]>, Edward Ainza <[email protected]», Sandy Fonseca <[email protected]>, Ronny Luna <[email protected]>, City Manager Office <[email protected]>
Subject: City of Calexico - Request for Proposals - Asylum Seekers Good afternoon ladies and gentlemen,
The city of Calexico is pleased to release the attached Request for Proposals (RFP) to provide supporting services to asylum-seekers and migrants being released into the city by the U.S. Customs and Border Protection Office located in the Calexico West Port of Entry and the Imperial Regional Detention Facility.

Please feel free to redistribute the attached RFP to any non-profit organization that may be interested in submitting a proposal.

The deadline to submit proposals is March 27, 2024, by 3:00 pm. A non-mandatory Zoom meeting is available for questions and answers related to this RFP on Friday, March 22, 2024, at 1:00 p.m.

Join Zoom Meeting
https://us06web.zoom.us/j/81661508464?pwd=1GoKN/pjDZJT7efpdiv00kwgPr4zP.1 Meeting ID: 816 6150 8464
Passcode: 291368
Thank you.

Esperanza Colo Warren
City Manager
City of Calexico
1 CALEXICO California
Request for Proposals for Asylum-Seekers Services
Deadline to submit proposals is March 27, 2024, by 3:00 pm The city of Calexico received grant funding fro$300,000 funding requested for activities equals $15,000 for administration expenses, m the California Department of Social Services-Office of Equity-Immigration Services Bureau to support an indoor facility for assisting asylum-seekers and migrants being released into the city by the U.S. Customs and Border Protection Office located in the Calexico West Port of Entry and the Imperial Regional Detention Facility.

This funding aims to rapidly serve asylum-seeker families or individuals needing guidance and other services to reach their destination. Services may include guidance, translation services, temporary shelter/hotel/motel emergency stays, food, clothes, limited transportation, and other services. The funding is also intended to prevent asylum-seekers and migrants from becoming homeless in the city of Calexico due to the lack of adequate supports to reach their destination.

The City of Calexico seeks to provide one-time funding to one or more non-profit organizations registered in the State of California or with 501c3 status to operate an indoor facility in which guidance and services can be provided to asylum-seekers being released in the City of Calexico by the U.S. Customs and Border Protection Office located in the Calexico West Port of Entry and by the Imperial Regional Detention Facility.

There is a total of $1.8M (one million, eight hundred thousand dollars) available for this activity.

However, the funding will be divided into two rounds. Up to $360,000 (three hundred and sixty thousand dollars) in funding is available per eligible non-profit organization to pay for or reimburse eligible costs incurred from the contract start date through May 31, 2025. A second round of funding will be available before the expiration of contracts executed in the first round.

The city may decide to extend the contracts from round one based on performance, need and quality of services. The city reserves the right to issue a second request for proposals to allocate the rest of the funding for this program.

This Request for Proposals (RFP) is a response to the continued need for emergency shelter for asylum-seekers, families, or individuals entering the country. The city seeks to fund one or more programs that offer temporary services to asylum-seekers experiencing difficulties communicating with their sponsors in the United States.

Additionally, this RFP solicits information regarding the program description, timeline, cost, and feasibility to determine which organization has the most effective plan to serve asylum-seekers being released in Calexico.

Eligible Applicants:

To be eligible for consideration for these funds, the Proposer must meet all the following qualifications:
• Applicants must be a registered non-profit with the State of California or have 501c3 status.
• Applicants must hold a business license in the city of Calexico.

Applicants must provide insurance of up to $2M.

Applicants must provide experience in providing services to asylum-seekers. • Applicants must provide proof of capacity to provide the services subject to this REP.

A resume from each member of staff participating in this RFP is required. • Single Audit reports for the last two years.

A Proposer will not be disqualified if it contracts with a third-party organization to carry out all or part of the activities and services described in the Proposal. However, the Proposer must meet the above-listed qualifications and identify any known third parties who will carry out all or part of the Proposal or indicate which parts of the Proposal are expected to be performed by a third party (parties) if not known at the time of submission.

Allowable Use of Funds:

The following activities are considered to be eligible for reimbursement or compensation for this funding:
• Translation services,
• Case management - guidance to asylum-seekers to reach their destination, • Private security services or a combination of private and public security services, • Transportation services to other locations - no more than 250 miles from the city of Calexico (taxi, ride share, or bus pass; no air flights are allowed under transportation), • Food, temporary shelter/hotel/motel emergency stays (no more than seven days), clothes, hygiene products, and related services,
• If participants cannot reach their sponsors, assist them to connect with trusted community leaders in other locations (social/religious/business), • Additional related activities may be presented on a separate page from the activities allowed in this RFP, which may or may not be approved by the city of Calexico.

Grant Amount, Reporting and Invoicing:
• The total grant amount available for this program is $1,800,000, which will be distributed in two rounds of funding.
• Administration expenses: no more than 5% of the amount requested is allowable for administration expenses. Example: $300,000 funding requested for activities equals $15,000 for administration expenses. Administration expenses include: staff time to prepare reports and reimbursement of expenses, contract execution, coordination of the program, and office supplies (paper, pens, etc.).
• Expenses reimbursement: Requests for reimbursement for expenses incurred must be submitted to the city at least once a month; however, the city may be able to receive by- weekly requests for reimbursement if needed.
• Mandatory reporting: successful applicants must submit monthly statistical reports to the city.

The deadline to submit proposals is March 27, 2024, by 3:00 pm. Eligible and responsive proposals will be presented to the city council for approval on April 3, 2024. The city of Calexico will notify applicants about the status of proposals submitted within a week from the approval date.

Application Instructions:

1. Description of overall program/plan, including all activities - no more than 4 pages,

2. Description of capacity to administer the program for at least one year. Successful applicants must begin program implementation within 15 days of the execution of contract,

3. Budget for all activities must be included and cost per each activity; any additional activities not included in the RFP must be submitted in a separate sheet, including description and cost for each activity. Please note that one or more activities may be selected. However, if one additional activity relates to another activity, you must submit both activities as one.

4. Administration expenses to coordinate this program must not exceed 5% of the activities.

I.c., $300,000 funding requested for activities equals $15,000 for administration expenses.

5. Proof of State of California registration as a non-profit organization.

6. Audited financial statements for the last two years,

7. All proposals must be submitted to the City of Calexico, City Clerk Office, 608 Heber Ave., Calexico, CA 92231, by March 27, 2024, no later than 3:00 p.m.

8. Proposals must include all the required information listed under eligible applicants.

9. A non-mandatory Zoom meeting is available for questions and answers related to this RFP on Friday, March 22, 2024, at 1:00 p.m.

Attachment No. 2(a)

THE UNITED

METHODIST

EMERGENCY

MIGRANT

RESPONSE

NETWORK

A GRANT PROPOSAL FOR THE

CITY OF CALEXICO
LEVEL 1
Expansion of Current
Emergency Assistance

A FISCALLY-SPONSORED PROJECT OF

MISSION EDGE SAN DIEGO
United Methodist Emergency Border Response Network
Grant Proposal #1 for the City of Calexico: Scaling Up our Existing Services March 27, 2024
1) Executive Summary
The U.S. Customs and Border Protection Office continues to release asylum seekers into the City of Calexico. In 2023, CBP released into Calexico an average of 80 asylum seekers at the port of entry per day and an average of 12 people per day from the Detention Facility. These releases burden the City with a need for temporary accommodations and emergency assistance, along with the need to transport people quickly and efficiently to their sponsors in other cities. The United Methodist Emergency Border Response Network has successfully provided temporary assistance and transport to over 1000 asylum seekers since 2018. Our network of volunteers, partner organizations, and church-based shelters extends throughout Southern California. The church's compassion for home-seeking migrants dovetails with the City's desire to provide brief, transitional services.

We are prepared to scale up our operations in response to the City's need. Our part-time pastor, Baldwin Avendano, currently provides emergency services and transport to up to 50 migrants per month. This grant will enable us to quadruple our capacity to over 200 per month by increasing the amount of direct service to asylum seekers: translation, case management, transportation services to other locations, food, and temporary shelter.

We are requesting $27,245 per month, or $357,566 per year. As you will see in our budget narrative, this amount quadruples our direct services. We have increased our capacity to administer this large grant by applying as a fiscally sponsored project of Mission Edge San Diego.

Mission Edge will provide reports to the city and handle the administrative tasks associated with accounting and staffing this project.
2) Organizational Mission Statement and Background
The United Methodist Emergency Border Response Network implements the denomination's long-term commitment to the compassionate reception of asylum-seekers. We bring together partners for this work on the southern border of California. The denomination's official statements undergird the work of educating our congregations about immigration issues, as well as the implementation of welcoming centers and legal aid. Methodist congregations and nonprofits around the country engage in relational ministry, along with the practical work of transporting and settling people in their new hometowns.

The denomination's work is facilitated internationally, nationally, and locally by the General Board of Global Ministries, the United Methodist Committee on Relief, the California-Pacific Annual Conference Immigration Task, United Women in Faith, the California-Pacific Immigration Task Force, the Safe Harbors Network, the South District Union, the Cal-Pac Justice 1 and Compassion Ministries, and other affiliate organizations. In addition, we work with a variety of local partners to accomplish our goals, including El Otro Lado, the Calexico Neighborhood House, Catholic Charities, CLUE, Border Angels, and Border Compassion Ministries.

Pastor Baldwin Avendano has served as our lead point person since 2018, effectively coordinating the hospitality and transfer of over 1000 migrants during that period. We have seen the need to form a separate non-profit for governance, coordination, and fundraising. This non-profit is now the United Methodist Emergency Border Response Network, a fiscally sponsored project of Mission Edge. With funding from the City, our denomination, and our partners, we are prepared to ramp up our operations to meet current needs. 3) Statement of Need
Emergency Food, Clothing and Shelter: When asylum seekers are released at the Port of Entry, they are often without sufficient resources, having used up all funds saved for the journey, or having had resources taken from them along the way.

Transportation: Fortunately, most asylum-seekers have sponsors waiting for them elsewhere in the U.S. Most need assistance getting to those sponsors. We propose to quadruple our capacity to get people the transport they need to leave Calexico and arrive successfully at their sponsor's locations.

Case Management: Asylum-seekers need assistance with funding and finding a place to stay, securing emergency food and hygiene supplies, arranging travel to the next location, and finding church-related shelters in San Diego and Los Angeles. The City's stated needs are to avoid the problems of unhoused migrants and the necessity for long-term local accommodations and support. We understand this need and we are ready to assist. 4) Project Description
The United Methodist Emergency Border Response Network is committed to keeping its project simple for the City, for asylum-seekers, and for its staff and volunteers. We will be the link between CBP migrant releases and migrant departures from Calexico, ensuring that at least 200 migrants per month are given emergency indoor accommodation, along with food and hygiene supplies. Each individual or family will also be assisted in arranging for transportation to their ultimate destination, and all will be offered a ride in our van either directly to a bus station or airport, or to a second emergency shelter in San Diego or Los Angeles as they await the departure date of their plane, train, or bus.
2 Our Goals are Specific:
* Our Case Managers work with migrants from arrival to departure, making sure that they have indoor shelter and supplies while in Calexico, and setting them up for safe travel to their next destination. We will assist and transport over 200 migrants per month. * We will provide up to 110 nights per month of motel stays, primarily in Calexico.

In fact, most of the grant money will be recycled into the economy of Calexico as payments to motels, grocery stores, fast food restaurants, gas stations and bus companies. * We will provide emergency food needs, sanitary items, diapers, and other emergency items to over 200 migrants per month.
* We will commute 4500 miles per month in our project's van, transporting migrants to onward transportation and waystations throughout our Emergency Border Response Network.

The funds provided in the City's grant will be supplemented by up to $150,000 in additional fundraising within the United Methodist Emergency Border Response Network and funding from our partner organizations.
5) Budget Narrative
The attached budget is labelled Level 1: Expansion of our Current Emergency Assistance.

As the City is aware, Pastor Avendano has coordinated emergency response services for the last 5 years under the auspices of his part-time position as the pastor of Calexico UMC. In this capacity, with the support of the network, he has been able to assist 50-60 migrants per month.

Our funding comes from other local churches and individuals, our District and Conference headquarters, as well as from partner organizations. We expect this funding and volunteer assistance to continue.

The attached budget represents an expansion of services.

Overnight Lodging, Food, and Emergency Items: In concurrence with the City's stated needs, we will offer emergency motel stays, usually one or two nights, after which individuals and families are transported either to their sponsors or to a temporary waystation elsewhere in California. We have budgeted for 110 nights at the local rate of $85 per night.

We will offer simple and nutritious prepared foods, such as locally made burritos and sandwiches. We have estimated 300 meals per month at $8/meal.

Many emergency hygiene items are donated, but we have budgeted $500/month for purchases of sanitary items, diapers, and other items.

Transportation Costs: As per the City's request, we have emphasized transport via bus or the use of our project van. Based on experience, we estimate that we will make up to 15 monthly round trips to San Diego, Los Angeles, and Phoenix per month (all within 4 hours), so we have estimated 4500 miles/month at the IRS reimbursement rate of .67/mile. Whenever possible, we will work with the local bus company to provide bus transport directly to sponsors. We estimate 50 tickets per month at $70 each. The occasional plane ticket will be purchased with alternative funds.

Case Management: Quadrupling our capacity means quadrupling the work of our chief case manager, Pastor Avendano, plus the addition of one or more case assistants and an additional driver, Our fiscal sponsor Mission Edge will be handling all our Worker's Comp, Human Resources and payroll needs, effectively freeing Pastor Avendano and church volunteers for case management and direct service provision. Their set cost for this service is 10% of payroll.

Facilities Costs - Calexico UMC: Much of the work is based out of Calexico UMC. The modest amount of $2000/month recognizes that the church's classrooms have become clothing closets and storage for the Emergency Border Response Network, and its offices also support this program.

Administration Costs - Fiscal Sponsorship: Our alignment with fiscal sponsor Mission Edge permits us to scale up quickly while assuring the City of an excellent accounting of funds and professional administrative business practices. The set percentage fee associated with this service is entered into the budget: $2460/month.

In summary, we estimate that we can effectively quadruple our operations with an additional $27,245/month or $357,566 per year.
6) Outcomes
The City of Calexico can count on the United Methodist Emergency Border Response Network to provide a compassionate and expedient emergency response to asylum-seekers released by CBP. We understand the challenges of maintaining a safe, clean city with limited resources. We will be a solid partner to the City as we receive and assist asylum seekers toward the next stage of their journeys. We plan for this first year to lay the groundwork for many years of reliable future partnership.
***************** *****
Attached to this grant proposal is a Supplemental Grant Proposal that we offer as additional assistance to the City. To clear the streets of Calexico during the day, and to provide asylum seekers with refuge, especially from extreme weather, we are submitting a plan to transform additional space in Calexico UMC to a Day Center for migrant families. 4 ****Please note that the costs associated with Level 2: Day Center (10 am - 6 pm) are dependent on full funding of Level 1: Expansion of our Current Emergency Assistance. Level 2 is not a stand-alone proposal.

Thank you for your consideration of both proposals.

Ento
Pastor Baldwin Avendano
Founder & Director
United Methodist Emergency Border Response Network
San Cars
Rev. A. Paige Eaves
Assistant South District Director
California-Pacific Annual Conference
The United Methodist Church
Attachments:

Stories
Level 1 Budget
Proof of Non-Profit Status
Proof of Insurance
Financial Audits - 2022 & 2023
Resumé - Pastor Avendano
....

A Story from Pastor Avendano: Just in Time Assistance
I remember with great emotion one of the first families we were able to assist at the beginnings of our program in Calexico, back in 2019. A couple of young women from Guatemala arrived. They were cousins, one of them a minor. After being granted political asylum, they contacted us to request support because they were told at the local bus station that there was a church willing to help refugees. They could not reach their destination due to lack of communication and the ease of transferring funds. It is usual to see many refugees without a bank account or other means to obtain tickets for traveling. The biggest surprise for us was when they told us with tears in their eyes that they were both pregnant, just a few weeks from their respective deliveries. They just wanted the opportunity to reach their destination safely. We were able to establish contact with their uncle and provide them with bus transportation all the way to Chicago - the only option we had for them that fit in our budget. We showed them how to transfer funds so that the uncle was able to send money, and we provided them with food and necessary accessories to complete their journey. After a few days, they called us and were extremely emotional and thankful, confirming that everything went successfully and they were able to reach their destination safely, where a new opportunity awaited them and their future children.

A Story from Pastor Avendano: Creating Seamless Service Provision in Calexico In 2023, we received a call from one of our partner institutions within Imperial County, telling us that they were not able to continue assisting a Colombian family of 5 sheltered in their facilities. They had spent the maximum days allowed with the agency, and the family didn't have enough funds to move to New York City. We committed to assist them at our church, where we coordinated with another partner in the Network, the Methodist church in Baldwin Park, CA, where they could wait until departure of their affordable flight tickets. The father, mother, two twin girls and a toddler boy were received in our Calexico Methodist Church, where they shared their story and needs. We ate lunch together the first day we met them, and they shared with us how they were kidnapped in Durango, Mexico, for 2 months prior to having the opportunity for an interview for asylum. They were finally liberated by the cartel's members and were able to resume their route to the U.S., seeking their chance for asylum. Fortunately, they received a positive response at Calexico's port of entry. We were able to provide them all the basic things they needed: clothes for the cold weather in New York, travel-sized hygiene products, and non-perishable easy-to-carry food.

We transported them directly to our partner church, where they waited a couple of extra days and then were escorted to the LAX airport. I still have 3 lovely drawings from each of these children, giving thanks for the support they received though our program. We were able to provoke smiles and laughter in this family after months of tears and fears. We have faith that we will continue doing it for many others for the foreseeable future. 6 •
United Methodist Emergency Border Response Network
Budget: 1-Year Budget - No Mass Shelter - 200 people/month Level 1: Expansion of our Current Emergency Assistance
Monthly 12 month Total
Overnight Lodging, Food, and Emergency Items
110 nights @ $85 $9,350 $112,200
Meals 300 meals @$8 $2,400 $28,800
Emergency Hygiene Items $500 $6,000
Overnight Lodging, Food, and Emergency items $12,250 $147,000 Transportation Costs
Van Transportation to Temporary Housing 4500 miles/[email protected]/mile $3,015 $36,180 Bus Tickets to Sponsors 50 tickets/month @ $70 $3,500 $42,000 Transportation $6,515 $78,180
Case Management
Case Manager p/t salary package $3,957 $47,489
Case Assistants 12 hrs/week@$16/hour $768 $9,984
Driver 20 hrs/week@$16/hour $1,280 $16,640
Worker's Comp & Payroll Costs 10% of payroll $475 $4,749 Case Management $6,480 $78,862
Facilities Costs - Calexico UMC
Office space, storage, use of kitchen $1,000 $12,000
Utilities $500 $6,000
Office Supplies & Misc Admin $500 $6,000
Facilities Costs Sub-Total $2,000 $24,000
Administration Costs - Fiscal Sponsorship
Mission Edge grant management & accounting 2460 29,524
Total Estimated Costs for Expanded Operations $27,245 $357,566 7 MISSION
EDGE
Re: IRS Exempt Status
Mission Edge San Diego
EIN: 27-2938491
To Whom It May Concern:

Mission Edge San Diego is the fiscal sponsor of the specific Sponsored Project applying for this funding opportunity. As such, we hold all fiduciary responsibility to ensure that any funds are used in accordance with donor restrictions and are used in a manner consistent with our Mission as it supports the specific mission of our individual fiscally sponsored projects.

Please see the following proof of our tax-exempt status, effective April 12, 2010, as provided by the IRS.

Thank you for your consideration and review of this application for funding, Ken Davenport
CEO
Mission Edge San Diego
[email protected]
Mission Edge San Diego 501(c)(3)
PO Box 102894, Pasadena CA 91189

INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY
•
P. O. BOX 2508
CINCINNATI, OH 45201
Employer Identification Number:

DateSEP 2 / 2012 27-2938491
DIN:
17053003367022
MISSION EDGE SAN DIEGO Contact Person:

C/O DAVID LYNN ROXANNE M HAYTHORN ID# 52416
2245 SAN DIEGO AVE STE 223 Contact Telephone Number:

SAN DIEGO, CA 92110 (877) 829-5500
Accounting Period Ending:

December 31
Public Charity Status:
170 (b) (1) (A) (vi)
Form 990 Required:

Yes
Effective Date of Exemption:

April 12, 2010
Contribution Deductibility:
-
Yes
Addendum Applies:

No
Dear Applicant:

We are pleased to inform you that upon review of your application for tax exempt status we have determined that you are exempt from Federal income tax under section 501 (c) (3) of the Internal Revenue Code. Contributions to you are deductible under section 170 of the Code. You are also qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the Code. Because this letter could help resolve any questions regarding your exempt status, you should keep it in your permanent records.

Organizations exempt under section 501 (c) (3) of the Code are further classified as either public charities or private foundations. We determined that you are a public charity under the Code section (s) listed in the heading of this Please see enclosed Publication 4221-PC, Compliance Guide for 501 (c) (3) Public Charities, for some helpful information about your responsibilities as an exempt organization.

Letter 947 (DO/CG)
-2-

MISSION EDGE SAN DIEGO
Sincerely,
Netty
Holly O. Paz
Director, Exempt Organizations
Rulings and Agreements
Enclosure: Publication 4221-PC
Letter 947 (DO/CG)
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INSR: ADDL SUBR OLICY EX

ITR TYPE OF INSURANCE POLICY NUMBER LIMITS
A COMMERCIAL GENERAL LIABILITY PHPK2627425 1/1/2024 1/1/2026 EACH OCCURRENCE $1,000,000

CLAIMS-MADE DAMAGE TO RENTED
OCCUR PREMISES (Ea occurrence) $ 100,000
MED EXP (Any one person) $5,000
PERSONAL & ADV INJURY 31,000,000
GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $3,000,000 POLICY PROT LOC PRODUCTS - COMPIOP AGG $3.000,000
OTHER: $
AUTOMOBILE LIABILITY N PHPK2827425 1/1/2024 1/1/2025 COMBINED SINGLE LIMIT $ 1,000,000 (Ea accident
ANY AUTO BODILY INJURY (Per person)

OWNED SCHEDULED

AUTOS ONLY AUTOS

HIRED NON-OWNED

AUTOS ONLY AUTOS ONLY
X UMBRELLA LIAB OCCUR N N PHUB890447 1/1/2024 1/1/2025 EACH OCCURRENCE $ 5,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $5,000,000
DED X RETENTIONS 10.000 $
WORKERS COMPENSATION N BBWWK1000105000 1/1/2024 1/1/2025 X STATUTE!

AND EMPLOYERS' LIABILITY
ANYPROPRIETOR/PARTNER/EXECUTIVE EL. EACHACCIDENT $1,000,000 OFFICER/MEMBEREXCLUDED? N/ A
(Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ 1,000,000 DESCRIPTION OF OPERATIONS belov E.L. DISEASE - POLICY LIMIT $1,000,000 Evidence of CoverageS CATIONS VEHICLES (ACORD 10 dia master, as a la mo sa requires)

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

Evidence of Insurance

AUTHORIZED REPRESENTATIVE
Steen Stilling
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ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD

MISSION
EDGE
Re: 2021 Audited Financials
Mission Edge San Diego
EIN: 27-2938491
To Whom It May Concern:

Mission Edge San Diego is the fiscal sponsor of the specific Sponsored Project applying for this funding opportunity. As such, we hold fiduciary responsibility to ensure that any funds are used in accordance with donor restrictions and are used in a manner consistent with our Mission as it supports the specific mission of our individual fiscally sponsored projects.

Please see the following 2021 Audited Financials. This audit is a representation of our consolidated activity, inclusive of all our fiscally sponsored projects.

Thank you for your consideration and review of this application for funding.

Joshua Burgner
Sr. Manager, Fiscal Sponsorship
Mission Edge San Diego
[email protected]

MISSION EDGE SAN DIEGO

FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2021 AND 2020
•

MISSION EDGE SAN DIEGO
Pages
Index 1
Independent auditor's report 2-3
IlI Statements of financial position 4
IV Statements of activities and changes in net assets 5-6 V Statements of functional expenses 7-8
VI Statements of cash flows 9
VII Notes to the financial statements 10 - 17
VIII Independent auditor's report on supplementary information 18 IX Supplemental schedules 19-22
Independent auditor's report on internal control over financial 23-24 reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards
XI Schedule of findings and responses 25
•

CONSIDINE CONSIDINE

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Mission Edge San Diego
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Mission Edge San Diego, a nonprofit organization, which comprise the statements of financial position as of December 31, 2021 and 2020, and the related statements of activities and changes in net assets, functional expenses and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements present fairly, in all material respects, the financial position of Mission Edge San Diego as of December 31, 2021 and 2020, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Mission Edge San Diego and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Mission Edge San Diego's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and Earning Your Trust Since 19-16
8989 RIO SAN DIEGO DRIVE, SUITE 250• SAN DAGO, CA 02108 TEL 019-231-1977 • FAX 619-231-824+ • www.cccpa.com
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Mission Edge San Diego's internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Mission Edge San Diego's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, amount other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2022 on our consideration of Mission Edge San Diego's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Mission Edge San Diego's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Mission Edge San Diego's internal control over financial reporting and compliance.

Considine of Consiline

CONSIDINE & CONSIDINE
An accountancy corporation
June 6, 2022
•

MISSION EDGE SAN DIEGO

STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2021 AND 2020

2021 2020
ASSETS

CURRENT ASSETS
Cash (note 3) $ 3,689,938 $ 1,701,004
Receivables (note 4) 1,362,011 418,915
Pledges receivable (note 5) 325,000 -
Prepaid expenses 7,658 9,874
5,384,607 2,129,793
PROPERTY AND EQUIPMENT (note 6) - 939

OTHER ASSETS
Security deposits 8,208 8,208
Pledges receivable - long term, net (note 5) 548,637
556,845 8,208
TOTAL ASSETS $ 5,941,452 $ 2,138,940

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable 220,111 28,326
Accrued expenses 549,173 62,909
Deferred revenue 25,456 6,000
Line of credit (note 7) 10,000 87,500
TOTAL LIABILITIES 804,740 184,735
NET ASSETS (note 9)
Net assets without donor restrictions 831,077 399,243
Net assets with donor restrictions 4,305,635 1,554,962
TOTAL NET ASSETS 5,136,712 1,954,205
TOTAL LIABILITIES AND NET ASSETS $ 5,941,452 $ 2,138,940 See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
SUMMARIZED INFORMATION FOR THE EAR ENDED DECEMBER 31, 2020

WITHOUT DONOR WITH DONOR 2021 2020

RESTRICTIONS RESTRICTIONS TOTAL TOTAL

REVENUE AND SUPPORT
Core operations
Contributions $ 199,927 $ 773,660 $ 973,587 $ 2,675,227 Fee revenue 929,244 929,244 719,193
Other income (note 11) 262,338 262,338 261,607
1,391,509 773,660 2,165,169 3,656,027
Fiscal sponsor projects
Contributions 4,054,372 4,054,372 1,506,306
Government contracts :
2,642,988 2,642,988
Earned revenue 276,807 276,807 97,373
In-kind contributions 50,689 50,689 54,868
Other income (note 11) 215,162 215,162 215,893
Special events, net
Special event revenue 81,123 81,123 58,617
Direct benefits to donor (61,300) (61,300) (61,300)
19,823 19,823 (2,683)
7,259,841 7,259,841 1,871,757
Net assets released from restrictions
Fiscal sponsor projects' expenses 4,622,756 (4,622,756) Satisfaction of grant restrictions 660,072 (660,072)
5,282,828 (5,282,828)
TOTAL REVENUE AND SUPPORT 6,674,337 2,750,673 9,425,010 5,527,784

FUNCTIONAL EXPENSES
Core operations
Program services 1,700,925 1,700,925 2,978,651
Management and general 576,483 576,483 392,245
Development 30,906 30,906 22,190
2,308,314 2,308,314 3,393,086
Fiscal sponsor projects
Program services 3,907,561 3,907,561 2,079,169
Development 26,628 26,628 36,865
3,934,189 3,934,189 2,116,034
TOTAL FUNCTIONAL EXPENSES 6,242,503 - 6,242,503 5,509,120 CHANGE IN NET ASSETS 431,834 2,750,673 3,182,507 18,664 NET ASSETS, BEGINNING 399,243 1,554,962 1,954,205 1,935,541 NET ASSETS, ENDING $ 831,077 § 4,305,635 $ 5,136,712 1,954,205 See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2020

WITHOUT DONOR WITH DONOR

RESTRICTIONS RESTRICTIONS TOTAL

REVENUE AND SUPPORT
Core operations
Contributions $ 333,770 $ 2,341,457 $ 2,675,227
Fee revenue 719,193 719,193
Other income (note 11) - 261,607 261,607
1,314,570 2,341,457 3,656,027
Fiscal sponsor projects
Contributions 1,506,306 1,506,306
Earned revenue 97,373 97,373
In-kind contributions 54,868 54,868
Other income (note 11) 215,893 215,893
Special events, net
Special event revenue 58,617 58,617
Direct benefits to donor : (61,300) (61,300)
(2,683) (2,683)
- 1,871,757 1,871,757
Net assets released from restrictions
Fiscal sponsor projects' expenses 2,314,174 (2,314,174) Satisfaction of grant restrictions 2,359,461 (2,359,461) :
-
4,673,635 (4,673,635)
TOTAL REVENUE AND SUPPORT 5,988,205 (460,421) 5,527,784

FUNCTIONAL EXPENSES
Core operations
Program services 2,978,651 2,978,651
Management and general 392,245 392,245
Development 22,190 22,190
-
3,393,086 3,393,086
Fiscal sponsor projects
Program services 2,079,169 2,079,169
Development 36,865 36,865
2,116,034 2,116,034
-
TOTAL FUNCTIONAL EXPENSES 5,509,120 5,509,120
-
CHANGE IN NET ASSETS 479,085 (460,421) 18,664
NET ASSETS, BEGINNING (79,842) 2,015,383 1,935,541
-
NET ASSETS, ENDING 399,243 $ 1,554,962 $ 1,954,205
See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2021
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020

PROGRAM MANAGEMENT 2021 2020

SERVICES AND GENERAL DEVELOPMENT TOTAL TOTAL

CORE OPERATIONS
Personnel expenses and benefits $ 1,298,290 $ 462,405 $ 17,785 $ 1,778,480 $ 1,211,350 Grants awarded 272,541 272,541 1,482,043
Outside services 31,832 23,874 10,620 66,316 68,476
Computer and internet 25,555 28,818 54,373 26,929
Rent and facilities 29,537 10,520 405 40,462 54,123
Office 20,336 7,243 278 27,857 10,852
Dues and subscriptions 1,701 22,606 24,307 15,354
Conferences, meetings, and travel 2,034 9,914 12,710 7,883 Insurance 1,279 9,382 10,661 709
Program events 8,832 8,832 1,123
Interest 3,064 2,09% 42 4,197 5,821
Sponsorships 4,000 4,000
Professional development 1,769 630 2,423 1,221
Marketing - : 1,000 1,000 250
Volunteer costs 155 155
Community special project - 506,952
1,700,925 576,483 30,906 2,308,314 3,393,086

FISCAL SPONSOR PROJECTS
Personnel expenses and benefits 1,650,496 28,007 1,678,503 1,459,119 Outside services 1,420,568 14,020 1,434,588 103,034
Grants awarded 383,666 383,666 298,510
Rent and facilities 139,764 139,764 94,125
Office 68,672 68,672 461
Program events 54,063 54,063 30,381
Insurance 47,727 2,114 49,841 37,963
In-kind donations 45,864 45,864 54,868
Special event production costs - 40,292 40,292 18,489
Computer and internet 31,293 31,293 17,028
Conferences, meetings, and travel 19,803 3,495 23,298 21,147 Marketing 20,960 : 20,960 25,592
Dues and subscriptions 14,176 14,176 9,032
Sponsorships 7,233 : 7,233 2,500
Professional development 2,337 2,337 3,958
Depreciation 939 939 1,127
3,907,561 87,928 3,995,489 2,177,334
Less: direct benefit to donors at
special events included in revenue (61,300) (61,300) (61,300) 3,907,561 26,628 3,934,189 2,116,034
TOTAL FUNCTIONAL EXPENSES $ 5,608,486 576,483 57,534 $ 6,242,503 $ 5,509,120 See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2020

PROGRAM MANAGEMENT

SERVICES AND GENERAL DEVELOPMENT TOTAL

CORE OPERATIONS
Grants awarded $ 1,482,043 $ - $ 12,115$ 1,482,043
Personnel expenses and benefits 884,284 314,951 1,211,350 Community special project 506,952 - 506,952
Rent and facilities 49,988 17,803 685 68,476
Outside services 26,141 19,537 8,445 54,123
Computer and internet 12,622 14,307 26,929
Dues and subscriptions 1,127 14,227 : 15,354
Office 7,921 2,822 109 10,852
Conferences, meetings, and travel 1,227 6,142 514 7,883 Interest 4,249 1,514 58 5,821
Professional development 891 317 13 1,221
Program events 1,123 - 1,123
Insurance 83 625 709
Marketing - 250 250
2,978,651 392,245 22,190 3,393,086

FISCAL SPONSOR PROJECTS
Personnel expenses and benefits 1,435,981 23,138 1,459,119 Grants awarded 298,510 298,510
Outside services 67,831 35,203 103,034
Rent and facilities 94,125 : 94,125
In-kind donations 54,868 54,868
Insurance 22,247 15,716 37,963
Program events 30,381 : 30,381
Marketing 25,592 25,592
Conferences, meetings, and travel 15,704 5,443 21,147
Special event production costs - 18,489 18,489
Computer and internet 16,852 176 17,028
Dues and subscriptions 9,032 9,032
Professional development 3,958 : 3,958
Sponsorships 2,500 2,500
Depreciation 1,127 1,127
Office 461 461
2,079,169 - 98,165 2,177,334
Less: direct benefit to donors at
special events included in revenue (61,300) (61,300)
2,079,169 36,865 2,116,034
TOTAL FUNCTIONAL EXPENSES $ 5,057,820 $ 392,245 $ 59,055 $ 5,509,120 See accompanying notes
• •
• MISSION EDGE SAN DIEGO

STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

2021 2020

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Change in net assets $ 3,182,507 $ 18,664

ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO

NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation 939 1,127
PPP loan forgiveness (477,500) (477,500)
Change in operating assets and liabilities:

Receivables (943,096) 757,408
Pledges receivable (873,637)
Prepaid expenses 2,216 (2,160)
Accounts payable 191,785 (18,230)
Accrued expenses 486,264 6,258
Deferred revenue 19,456 6,000
(1,593,573) 272,903
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,588,934 291,567

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
Funds drawn on line of credit 13,500
Payments on line of credit (77,500)
Amounts borrowed on PPP loan payable 477,500 477500M
NET CASH PROVIDED BY FINANCING ACTIVITIES 400,000 491,000 NET CHANGE IN CASH 1,988,934 782,568
CASH, BEGINNING OF YEAR 1,701,004 918,436
CASH, END OF YEAR $ 3,689,938 $ 1,701,004
SUPPLEMENTAL DISCLOSURES:

Interest paid $ 4,197 $ 5,821
See accompanying notes

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

NOTE 1 MISSION EDGE SAN DIEGO
Mission Edge San Diego ("Mission Edge"), incorporated under the laws of California in 2011, operates a nonprofit, public-benefit organization. Mission Edge provides strategic and operational solutions for social enterprises. Mission Edge's products and services enable nonprofit, social sector leaders to focus on their mission and more effectively impact the communities they serve.

Mission Edge's products and services increase organizational effectiveness via expert support for essential operations and back-office activities. Mission Edge facilitates greater visibility into financial results and program outcomes to empower organizations to do more good.

Mission Edge's fiscal sponsorship program enables individuals and organizations (Projects") to take advantage of charitable giving for events, projects, and community needs without requiring tax exempt status under Section 501(c)(3) of the Internal Revenue Code ("IRC"). Mission Edge serves as the legal and fiduciary agent for Projects, providing back-office support and mentorship currently benefitting more than 30 community programs and start-up nonprofits.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting - The accompanying financial statements are prepared using the accrual method of accounting in conformity with generally accepted accounting principles ("GAAP") in the United States of America.

Estimates - The preparation of financial statements in conformity with GAAP requires Mission Edge to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from these estimates.

Mission Edge follows the Financial Accounting Standards Board's (FASB) Financial Statements of Not-for- Profit Organizations for presentation of its financial statements which requires that net assets, support, revenue and gains, expenses and losses be classified according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions.

Net assets without donor restrictions - Net assets without donor restrictions consists of assets which are fully available, at the discretion of management and the Board of Directors, for Mission Edge to utilize in any of its programs or supporting services. Net assets without donor restrictions may also include amounts designated for certain purposes by the Board of Directors.

Net assets with donor restrictions - Net assets with donor restrictions consist of contributed funds subject to donor-imposed restrictions contingent upon specific performance of a future event or a specific passage of time before Mission Edge may spend the funds.

Intracompany eliminations - The financial statements include accounts of Mission Edge and its Projects.

All significant intracompany balances have been eliminated.

Cash - Mission Edge considers financial instruments with a fixed maturity date of less than three months to be cash equivalents. Mission Edge maintains its cash in twenty-seven bank accounts, which, at times,

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

exceed federally insured deposit limits. Mission Edge has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents.

Receivables - Receivables consist of donor promises to give and amounts due from nonprofit services clients and Projects. An allowance for doubtful accounts is accounted for using the specific identification method and uncollectible accounts are written-off after all collection attempts have been exhausted. All receivables are considered collectible as of December 31, 2021 and 2020.

Pledges receivable - Pledges receivable consist of donor promises to give. It is Mission Edge's policy to charge off uncollectible contributions receivable when management determines the receivable will not be collected. Contributions receivable that are expected to be received in excess of one year are reported at present value and a discount is recorded. All pledges receivable are considered collectible as of December 31, 2021 and 2020.

Property and equipment - Property and equipment are recorded at cost. Depreciation is computed using the straight-line method of depreciation over the assets' estimated useful lives of five to seven years. Maintenance and repairs are charged to expense as incurred; major renewals and betterments are capitalized. It is the Mission Edge's policy to capitalize all property and equipment costs in excess of $5,000 and $1,000 for the years ended December 31, 2021 and 2020, respectively. When items of property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is recognized in the current period financial statements.

Revenue recognition - The financial statements are presented on the accrual method of accounting.

Under this method of accounting, revenues are recognized when earned or a donor makes a promise to give that is, in substance, unconditional. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promises become unconditional.

Mission Edge follows Accounting Standards Update No. 2014-09, 2016-08, 2016-10, 2016-12 and 2016- 20, collectively implemented as FASB Accounting Standards Codification ("ASC") Topic 606 ('ASC 606) Revenue from Contracts with Customers, which provides guidance for revenue recognition.

Mission Edge follows ASU 2018-08, Not-for-Profit Entities (Topic 958), Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. The ASU includes clarification regarding the accounting for contracts and agreements as exchange transactions or contributions and provides improved guidance to better distinguish between conditional and unconditional contributions. Mission Edge does not make significant contributions and the impact of ASU 2018-08 related to contributions made is not material to the financial statements or disclosures.

Donor-imposed restrictions - All contributions are considered to be without donor restriction unless specifically restricted by the donor. Amounts received designated for future periods or restricted by the donor for specific purpose are reported as with donor restrictions, increasing those net assets classes. If a restriction is fulfilled in the same period in which the contribution is received, the support is reported as with donor restrictions and then released from restriction in the same period. Grants and contributions received on behalf of Projects are recorded as with donor restrictions support when awarded and are then released from restriction when the funds are spent.

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

If Project funds are not spent before a Project separates, such funds are recorded as a fund transfer expense at the time of separation. Grants receivable on behalf of Projects that are not actually received before a Project separates from Mission Edge are also recorded as a fund transfer expense at the time of separation.

In-kind donations - Mission Edge follows standards relating to contributions received and contributions made as consistent with the FASB Codification. These standards require recording the value of donated services that create or enhance non-financial assets or require specialized skills. During 2021 and 2020, revenue of $36,906 and $50,567, respectively, was recognized for donated services under in-kind contributions. Volunteers have contributed significant amounts of their time to activities of Mission Edge; however, since the above requirements were not met, the value of the contributed services is not recorded in the financial statements.

Mission Edge records donated goods with a fair value of $500 or more. During 2021 and 2020, revenue of $13,783 and $4,301, respectively, was recognized for donated goods under in-kind contributions in the statements of activities and changes in net assets.

Functional allocation of expenses - Mission Edge allocates its expenses on a functional basis among its program and support services. Directly identifiable expenses are charged to program and supporting services. There are certain categories of expenses that are attributable to more than one program or supporting function and require allocation on a reasonable basis. These expenses are allocated on the basis of estimated time spent. Personnel and benefit expenses are allocated on the basis of estimated time spent. All other non-direct expenses are allocated by using a ratio of number of employees involved to the total number of employees.

Marketing - Marketing expenses are charged to expense as incurred.

Income taxes - Mission Edge is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and comparable state law, and contributions to it are tax deductible within the limitations prescribed by the Code.

Mission Edge follows accounting standards which clarify the accounting for uncertainty in income taxes recognized in Mission Edge's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition and measurement of a tax position taken or to be taken in a tax return. As of December 31, 2021 and 2020, Mission Edge has not accrued interest or penalties related to uncertain tax positions. Mission Edge files tax returns in the U.S. Federal jurisdiction and the State of California.

Recent accounting pronouncements
In February 2016, FASB issued ASU 2016-02 Leases (Topic 842). In July 2018, FASB issued two updates to ASU 2016-02, ASU 2018-10, Codification Improvements to Topic 842 Leases, and ASU 2018-11, Leases (Topic 812): Targeted Improvements. The new standard is effective for fiscal years beginning after December 15, 2021. ASU 2016-02 requires recognition of operating leases with lease terms of more than twelve months on the balance sheet as both assets and liabilities for the obligations created by the • MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

leases. Topic 842 also requires disclosures that provide qualitative and quantitative information for the lease assets and liabilities recorded in the financial statements. Mission Edge is still assessing the impact this standard will have on its financial statements.

NOTE 3 CASH
Mission Edge maintains its cash balances in one financial institution.

Cash consists of the following at December 31:
2020
Cash with donor restrictions held for projects → 2973153 $ 1,211,653 Cash without donor restrictions 914,785 489,351
$ 3,689,938 $ 1,701,004
NOTE 4 RECEIVABLES
Receivables consist of the following at December 31:
2021 2020
Core operations:

Nonprofit services receivable $ 134,250 $ 85,543
Contributions receivable 50,753 93,165
185,003 178,708
Fiscal sponsor projects:

Contributions receivable 498,397 240,207
Government contracts receivable 678,611
1,177,008 240,207
$ 1,362,011 418,915
•

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

NOTE 5 PLEDGES RECEIVABLE
Long-term pledges receivable are shown at present value using discount rates of 4.3%. Pledges receivable consist of the following at December 31:
2021 2020
Gross pledges receivable $ 900,000 $ -
Less: discount to net present value (26,363)
Net pledges receivable 873,637 $
Amounts due in:

One year or less $ 325,000
Between one and five years 575,000
900,000
NOTE 6 PROPERTY AND EQUIPMENT
Property and equipment consist of the following at December 31:
2021 2020
Furniture and fixtures $ 7,890 $ 7,890
Computer equipment 4,795
7,890 12,685
Accumulated depreciation (7,890) (11,746)
939
Depreciation expense was $939 and $1,127 for 2021 and 2020, respectively.

NOTE 7 LINE OF CREDIT
In 2017, Mission Edge entered into an agreement with a commercial bank for a $250,000 unsecured line of credit. The interest rate on the line is the lender's prime rate plus 2.55%. The lender's prime rate was

3.25% at December 31, 2021 and 2020. As of December 31, 2021 and 2020, $10,000 and $87,500, respectively, had been drawn on the line.

Interest expense related to the line is $4,197 and $5,821 for the years ended December 31, 2021 and 2020, respectively.

NOTE 8 COMMITMENTS
Mission Edge has four leases for its own office space or on behalf of its Projects. The lease agreements call for monthly rent payments ranging from $1,224 to $4,307 and expiration dates ranging from August 2022 to October 2022. Several of the leases are month-to-month or have annual rate increases of 3%. •
• MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

Minimum future rental payments under the non-cancellable operating leases for the years ending December 31 are as follows:
2022 $ 93,814
Rent expense for 2021 and 2020 totaled $180,964 and $159,541, respectively, and is included in rent and facilities in the statements of functional expenses.

NOTE 9 NET ASSETS
Net assets with donor restrictions consisted of the following at December 31:
2021 2020
Purpose restriction:

Fiscal sponsor projects $ 4,059,398 $ 1,422,313
COMPASS 143,283
Seed the Future 74,115 -
COVID-19 support funds 18,100 52,493
Impact lab 10,739 80,156
$ 4,305,635 $ 1,554,962
Net assets were released from donor restrictions by incurring expenses satisfying the purpose or time restriction specified by donors as follows:
2021 2020
Purpose restriction accomplished:

Fiscal sponsor projects $ 4,622,756 $ 2,314,174
COVID-19 support funds 279,391 1,473,924
Impact lab 266,007 174,819
SAIL 90,435 95,173
Seed the Future 15,886
COMPASS 6,717 :

FS Model C 1,636 565,213
Community Engagement - 48,796
Boeing Transition Edge 1,536
$ 5,282,828 $ 4,673,635
•

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

NOTE 10 LIQUIDITY AND AVAILABILITY OF RESOURCES
Mission Edge is substantially supported by contributions with donor restrictions. Contributions and expenses are monitored on a monthly basis by Mission Edge's management and board. The level of assets are monitored on an annual basis. Mission Edge's goal is to be able to function within the boundaries of the income received throughout the year.

Mission Edge currently has a line of credit established with a national bank. The line of credit ensures short-term financial ability of Mission Edge to pay general expenditures.

The following reflects Mission Edge's financial assets as of December 31, 2021 and 2020, reduced by amounts not available for general use because of contractual or donor-imposed restrictions within one year of the statement of financial position date.
2021 2020
Financial assets at year-end:

Cash $ 3,689,938 $1,701,004
Receivables 1,362,011 418,915
Pledges receivable - current 325,000
5,376,949 2,119,919
Less those unavailable for general expenditures within one year, due to contractual or donor-imposed restrictions:

Restricted by purpose restrictions (4,305,635) (1,554,962) Financial assets available to meet cash needs for general expenditures within one year $ 1,071,314 $ 564,957
NOTE 11 PPP LOAN FORGIVENESS
On April 6, 2020, Mission Edge entered into a note payable agreement with California International Bank for $477,500, pursuant to the Paycheck Protection Program ("PPP") under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The note matures two years from the disbursement date and bears interest at a rate of 1.00% per annum, with the first six months of interest deferred. Principal and interest are payable monthly commencing six months after the disbursement date and may be prepaid by Mission Edge at any time prior to maturity with no prepayment penalties. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The note is subject to forgiveness for all or a portion of loans granted under the PPP. The note is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses (qualifying expenses), pursuant to the terms and limitations of the PPP. The loan was forgiven on December 2, 2020 and Mission Edge has recognized this income as other income in the statement of activities and changes in net assets for the year ended December 31, 2020.

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020

On January 1, 2021, Mission Edge entered into a second note payable agreement with California International Bank for $477,500 pursuant to the PPP second draw. This loan was forgiven on July 6, 2021 and Mission Edge has recognized this income as other income in the statement of activities and changes in net assets for the year ended December 31, 2021.

NOTE 12 SUBSEQUENT EVENTS
Mission Edge has evaluated subsequent events through June 6, 2022, the date which the financial statements were available to be issued.

Subsequent to year end Mission Edge signed a lease extension of their main office for three years expiring September 30, 2025. Monthly rent payments during the term range from $4,551 to $4,695.

Subsequent to year end a lease extension was signed for one of the projects locations expiring February 28, 2023 with monthly rent of $800.
•

CONSIDINE CONSIDINE

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION To the Board of Directors
Mission Edge San Diego
We have audited the financial statements of Mission Edge San Diego as of and for the years ended December 31, 2021 and 2020, and our report thereon date June 6, 2022, which expressed an unmodified opinion on those financial statements, appears on pages 2 and 3. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The statement of financial position (before intracompany eliminations) - Mission Edge core operations, statement of financial position (before intracompany eliminations - fiscal sponsor projects, statement of activities and changes in net assets (before intracompany eliminations) - Mission Edge core operations, and statement of activities and changes in net assets (before intracompany eliminations) - fiscal sponsor projects as of and for the years ended December 31, 2021 and 2020 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements Considine of Considine

CONSIDINE & CONSIDINE
An accountancy corporation
June 6, 2022
Earning Your Trust Since 1946
8989 RIO SAN DIEGO DRIVE. SUITE 250 • SAN DIEGO, CA 92108 TE 019-231-1977 • FAX 619-231-8241 • www.cccpa.com
• MISSION EDGE SAN DIEGO

STATEMENT OF FINANCIAL POSITION
(BEFORE INTRACOMPANY ELIMINATIONS)

MISSION EDGE CORE OPERATIONS
DECEMBER 31, 2021 AND 2020

2021 2020
ASSETS

CURRENT ASSETS
Cash $ 914,785 $ 489,351
Receivables 335,546 203,428
Prepaid expenses 866 3,369
1,251,197 696,148

OTHER ASSETS
Security deposits 4,552 4,552
TOTAL ASSETS $ 1,255,749 $ 700,700

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable $ 29,948 $ 33,665
Accrued expenses 132,487 41,643
Deferred revenue 6,000 6,000
Line of credit 10,000 87,500
TOTAL LIABILITIES 178,435 168,808

NET ASSETS
Net assets without donor restrictions 831,077 399,243
Net assets with donor restrictions 246,237 132,649
TOTAL NET ASSETS 1,077,314 531,892
TOTAL LIABILITIES AND NET ASSETS $ 1,255,749 $ 700,700

MISSION EDGE SAN DIEGO

STATEMENT OF FINANCIAL POSITION
(BEFORE INTRACOMPANY ELIMINATIONS)

FISCAL SPONSOR PROJECTS
DECEMBER 31, 2021 AND 2020

2021 2020
ASSETS

CURRENT ASSETS
Cash $ 2,775,153 $ 1,211,653
Receivables 1,177,008 240,207
Pledges receivable 325,000 -
Prepaid expenses 6,792 6,505
4,283,953 1,458,365
PROPERTY AND EQUIPMENT - 939

OTHER ASSETS
Security deposits 3,656 3,656
Pledges receivable - long term, net 548,637
552,293 3,656
TOTAL ASSETS $ 4,836,246 $ 1,462,960

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable $ 246,450 $ 13,741
Accrued expenses 510,942 26,906
Deferred revenue 19,456
TOTAL LIABILITIES 776,848 40,647

NET ASSETS
Net assets with donor restrictions 4,059,398 1,422,313
TOTAL LIABILITIES AND NET ASSETS $4,836,246 $ 1,462,960

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
(BEFORE INTRACOMPANY ELIMINATIONS)

MISSION EDGE CORE OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2021
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020

WITHOUT DONOR WITH DONOR 2021 2020

RESTRICTIONS RESTRICTIONS TOTAL TOTAL

REVENUE AND SUPPORT
Core operations
Fee revenue $ 1,631,311 $ $ 1,631,311 $ 1,000,547
Contributions 199,927 773,660 973,587 2,675,227
Other income 262,338 262,338 261,607
2,093,576 773,660 2,867,236 3,937,381
Net assets released from restrictions
Satisfaction of grant restrictions 660,072 (660,072)
TOTAL REVENUE AND SUPPORT 2,753,648 113,588 2,867,236 3,937,381

FUNCTIONAL EXPENSES
Core operations
Program services 1,700,925 1,700,925 2,978,651
Management and general 589,983 589,983 475,459
Development 30,906 30,906 22,190
2,321,814 2,321,814 3,476,300
CHANGE IN NET ASSETS 431,834 113,588 545,422 461,081
NET ASSETS, BEGINNING 399,243 132,649 531,892 70,811
NET ASSETS, ENDING $ 831,077 246,237 1,077,314 531,892

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
(BEFORE INTRACOMPANY ELIMINATIONS)

FISCAL SPONSOR PROJECTS
FOR THE YEAR ENDED DECEMBER 31, 2021
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020

WITHOUT DONOR WITH DONOR 2021 2020

RESTRICTIONS RESTRICTIONS TOTAL TOTAL

REVENUE AND SUPPORT
Fiscal sponsor projects
Contributions $ $ 4,054,372 $ 4,054,372 $ 1,506,306
Federal contracts 2,642,988 2,642,988
Earned revenue 276,807 276,807 97,373
Other income 215,162 215,162 215,893
In-kind contributions 50,689 50,689 54,868
Special events, net
Special event revenue 81,123 81,123 58,617
Direct benefits to donor (61,300) (61,300) (61,300)
19,823 19,823 (2,683)
7,259,841 7,259,841 1,871,757
Net assets released from restrictions
Fiscal sponsor projects' expenses 4,622,756 (4,622,756) TOTAL REVENUE AND SUPPORT 4,622,756 2,637,085 7,259,841 1,871,757

FUNCTIONAL EXPENSES
Fiscal sponsor projects
Program services 4,333,605 4,333,605 2,183,184
26,625 : 26,625 36,865
Development
Management and general 262,526 262,526 94,125
4,622,756 - 4,622,756 2,314,174
CHANGE IN NET ASSETS 2,637,085 2,637,085 (442,417)
NET ASSETS, BEGINNING 1,422,313 1,422,313 1,864,730
NET ASSETS, ENDING $ 4,059,398 4,059,398 $ 1,422,313

CONSIDINE CONSIDINE

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Mission Edge San Diego
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Mission Edge San Diego (a nonprofit organization), which comprise the statement of financial position as of December 31, 2021, and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated June 6, 2022.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Mission Edge San Diego's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Mission Edge San Diego's internal control. Accordingly, we do not express an opinion on the effectiveness of the Mission Edge San Diego's internal control.

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

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

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Mission Edge San Diego's financial statements are free from material misstatement, we performed test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and Earning Your Trust Since 19+6
8989 RIO SAN DIEGO DRIVE. SUITE 250 • SAN DIEGO. CA 92108 TEL 619-231-1977 • FAX 619-231-82-14 • www.cccpa.com
material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

Considine of Considine

CONSIDINE & CONSIDINE
An accountancy corporation
June 6, 2022
.........
• MISSION EDGE SAN DIEGO

SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2021

A. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? • Yes X No
• Significant deficiencies identified that are
Not considered to be material weaknesses? • Yes X No
• Non-compliance material to financial
statements noted • Yes X No
B. Financial Statement Findings
None

MISSION
EDGE
Re: 2022 Audited Financials
Mission Edge San Diego
EIN: 27-2938491
To Whom It May Concern:

Mission Edge San Diego is the fiscal sponsor of the specific Sponsored Project applying for this funding opportunity. As such, we hold all fiduciary responsibility to ensure that any funds are used in accordance with donor restrictions and are used in a manner consistent with our Mission as it supports the specific mission of our individual fiscally sponsored projects.

Please see the following 2022 Audited Financials. This Audit is a representation of our consolidated activity, inclusive of all our fiscally sponsored projects.

Thank you for your consideration and review of this application for funding, Joshua Burgner
Sr. Manager Fiscal Sponsorship
Mission Edge San Diego
[email protected]

MISSION EDGE SAN DIEGO

FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2022 AND 2021

MISSION EDGE SAN DIEGO
Pages
Index 1
Independent auditor's report 2-3
III Statements of financial position 4
IV Statements of activities and changes in net assets 5-6 V Statements of functional expenses 7-8
VI Statements of cash flows 9
VII Notes to the financial statements 10-17
VIlI Independent auditor's report on supplementary information 18 IX Supplemental schedules 19-22
Independent auditor's report on internal control over financial 23-24 reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards
XI Schedule of findings and responses

CONSIDINE CONSIDINE

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Mission Edge San Diego
Report on the Audit of the Financial Statements
Opinion
years then ended, and the related notes to the financial statements.

In our opinion, the financial statements present fairly, in all material respects, the financial position of Mission Edge San Diego as of December 31, 2022 and 2021, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Mission Edge San Diego and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Mission Edge San Diego's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and Larning Your Trust Since 1946
8089 RIO SAN DIEGO DRIVE, SUITE 250 • SAN DIGO. CA 02108 TEL 619-231-1977 • TAX 019-231-82+4 • www.cccpa.com
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Mission Edge San Diego's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Mission Edge San Diego's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 8, 2023 on our consideration of Mission Edge San Diego's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Mission Edge San Diego's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Mission Edge San Diego's internal control over financial reporting and compliance.

Considine of Considine

CONSIDINE & CONSIDINE
An accountancy corporation
June 8, 2023
• MISSION EDGE SAN DIEGO

STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2022 AND 2021

2022 2021
ASSETS

CURRENT ASSETS
Cash (note 3) $ 6,266,626 $ 3,689,938
Receivables (note 4) 816,062 1,362,011
Pledges receivable (note 5) 600,000 325,000
Prepaid expenses 46,137 7,658
7,728,825 5,384,607
PROPERTY AND EQUIPMENT (note 6) 23,621

OTHER ASSETS
Security deposits 15,761 8,208
• Pledges receivable - long term, net (note 5) 300,077 548,637 Operating lease right-of-use asset (note 7) 237,146
552,984 556,845
TOTAL ASSETS $ 8,305,430 $ 5,941,452

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable $ 174,354 $ 220,111
Accrued expenses 359,058 549,173
Deferred revenue 181,711 25,456
Line of credit (note 8) 10,000 10,000
Operating lease liability - current portion (note 7) 97,808 - 822,931 804,740

LONG-TERM LIABILITES
Operating lease liability (note 7) 140,189
TOTAL LIABILITIES 963,120 804,740
NET ASSETS (note 9)
Net assets without donor restrictions 1,032,233 831,077 Net assets with donor restrictions 6,310,077 4,305,635
TOTAL NET ASSETS 7,342,310 5,136,712
TOTAL LIABILITIES AND NET ASSETS $ 8,305,430 $ 5,941,452 See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2022
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2021

WITHOUT DONOR WITH DONOR 2022 2021

RESTRICTIONS RESTRICTIONS TOTAL TOTAL

REVENUE AND SUPPORT
Core operations
Contributions $ 145,133 $ 691,424 $ 836,557 $ 973,587
Fee revenue 1,303,508 1,303,508 929,244
Other income (note 11) 262,338
1,448,641 691,424 2,140,065 2,165,169
Fiscal sponsor projects
Contributions 6,430,852 6,430,852 4,054,372
Government contracts 2,052,862 2,052,862 2,642,988
Earned revenue 660,716 660,716 276,807
In-kind contributions 59,764 59,764 50,689
Other income (note 11) - - 215,162
Special events, net
Special event revenue 286,073 286,073 81,123
Direct benefits to donor : (37,325) (37,325) (61,300)
248,748 248,748 19,823
9,452,942 9,452,942 7,259,841
Net assets released from restrictions
Fiscal sponsor projects' expenses 7,419,169 (7,419,169) Satisfaction of grant restrictions 720,755 (720,755)
8,139,924 (8,139,924)
TOTAL REVENUE AND SUPPORT 9,588,565 2,004,442 11,593,007 9,425,010

FUNCTIONAL EXPENSES
Core operations
Program services 2,102,802 2,102,802 1,700,925
Management and general 844,529 844,529 576,483
Development 51,315 51,315 30,906
2,998,646 2,998,646 2,308,314
Fiscal sponsor projects
Program services 6,130,943 6,130,943 3,907,561
Development 257,820 257,820 26,628
6,388,763 6,388,763 3,934,189
TOTAL FUNCTIONAL EXPENSES 9,387,409 9,387,409 6,242,503 CHANGE IN NET ASSETS 201,156 2,004,442 2,205,598 3,182,507 NET ASSETS, BEGINNING 831,077 4,305,635 5,136,712 1,954,205 NET ASSETS, ENDING ≤ 1,032,233 $ 6,310,077 $ 7,342,310 $ 5,136,712 See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2021

WITHOUT DONOR WITH DONOR

RESTRICTIONS RESTRICTIONS TOTAL

REVENUE AND SUPPORT
Core operations
Contributions 199,927 $ 773,660 $ 973,587
Fee revenue 929,244 929,244
Other income (note 11) 262,338 262,338
-
1,391,509 773,660 2,165,169
Fiscal sponsor projects
Contributions 4,054,372 4,054,372
Government contracts : 2,642,988 2,642,988
Earned revenue 276,807 276,807
In-kind contributions 50,689 50,689
Other income (note 11) 215,162 215,162
Special events, net
Special event revenue 81,123 81,123
Direct benefits to donor : (61,300)
(61,300)
- 19,823 19,823
- 7,259,841 7,259,841
Net assets released from restrictions
Fiscal sponsor projects' expenses 4,622,756 (4,622,756) Satisfaction of grant restrictions 660,072 (660,072)
-
5,282,828 (5,282,828)
TOTAL REVENUE AND SUPPORT 6,674,337 2,750,673 9,425,010

FUNCTIONAL EXPENSES
Core operations
Program services 1,700,925 1,700,925
Management and general 576,483 : 576,483
Development 30,906 30,906
-
2,308,314 2,308,314
Fiscal sponsor projects
Program services 3,907,561 3,907,561
Development 26,628 26,628
-
3,934,189 3,934,189
TOTAL FUNCTIONAL EXPENSES - 6,242,503 6,242,503
CHANGE IN NET ASSETS 431,834 2,750,673 3,182,507
NET ASSETS, BEGINNING 399,243 1,554,962 1,954,205
-
NET ASSETS, ENDING 831,077 $ 4,305,635 5,136,712
See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2022
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2021

PROGRAM MANAGEMENT 2022 2021
SERVICES _AND GENERAL DEVELOPMENT TOTAL TOTAL

CORE OPERATIONS
Computer and internet $ 32,383 $ 36,518 $ - $ 68,901 $ 54,373 Conferences, meetings, and travel 4,222 20,584 1,584 26,390 12,710 Dues and subscriptions 4,153 55,179 59,332 24,307
Grants awarded 55,902 : 55,902 272,541
Insurance 745 6,210 10,661
Interest 554 197 8 759 4,197
Marketing - 3,002 3,002 1,000
Office 19,617 6,987 268 26,872 27,857
Outside services 61,665 46,249 20,555 128,469 40,462
Personnel expenses and benefits 1,843,688 656,656 25,256 2,525,600 1,778,480 Professional development 1,838 655 25 2,518 2,423
Program events 32,940 32,940 8,832
Rent and facilities 45,033 16,039 61,689 66,316
Sponsorships - • 4,000
Volunteer costs 62 62 155
2,102,802 844,529 51,315 2,998,646 2,308,314

FISCAL SPONSOR PROJECTS
Computer and internet 69,485 69,485 31,293
Conferences, meetings, and travel 87,003 : 15,513 102,516 23,298 Depreciation 4,116 4,116 939
Dues and subscriptions 47,688 1,977 49,615 14,176
Grants awarded 562,105 : 562,105 383,666
In-kind donations 25,180 25,180 45,864
Insurance 58,806 16,544 75,350 49,841
Marketing 297,746 297,746 20,960
Office 198,327 198,327 68,672
Outside services 1,904,079 126,354 2,030,433 1,434,588
Personnel expenses and benefits 2,528,589 30,863 2,559,452 1,820,141 Professional development 4,239 4,239 2,337
Program events 81,518 81,518 54,063
Rent and facilities 195,927 : 195,927 139,764
Rent - program related 9,320 .... 9,320
Special event production costs 103,944 103,944 40,292
Sponsorships 2,000 2,000 7,233
Vehicles - program related 54,815 54,815
6,130,943 - 295,145 6,426,088 4,137,127
Less: direct benefit to donors at
special events included in revenue = - (37,325) (37,325) (61,300) 6,130,943 257,820 6,388,763 4,075,827
TOTAL FUNCTIONAL EXPENSES $ 8,233,745 844,529 309,135 $ 9,387,409 $ 6,384,141 See accompanying notes

MISSION EDGE SAN DIEGO

STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2021

PROGRAM MANAGEMENT

SERVICES AND GENERAL DEVELOPMENT TOTAL

CORE OPERATIONS
Computer and internet $ 25,555 $ 28,818 $ - $ 54,373
Conferences, meetings, and travel 2,034 9,914 762 12,710 Dues and subscriptions 1,701 22,606 24,307
Grants awarded 272,541 : 272,541
Insurance 1,279 9,382 10,661
Interest 3,064 1,091 4,197
Marketing - 1,000 1,000
Office 20,336 7,243 278 27,857
Outside services 29,537 10,520 405 40,462
Personnel expenses and benefits 1,298,290 462,405 17,785 1,778,480 Professional development 1,769 630 24 2,423
Program events 8,832 - 8,832
Rent and facilities 31,832 23,874 66,316
Sponsorships 4,000 - 4,000
Volunteer costs 155 155
1,700,925 576,483 30,906 2,308,314

FISCAL SPONSOR PROJECTS
Computer and internet 31,293 31,293
Conferences, meetings, and travel 19,803 3,495 23,298
Depreciation 939 939
Dues and subscriptions 14,176 14,176
Grants awarded 383,666 383,666
In-kind donations 45,864 . . . 45,864
Insurance 47,727 2,114 49,841
Marketing 20,960 20,960
Office 68,672 : 68,672
Outside services 1,420,568 14,020 1,434,588
Personnel expenses and benefits 1,650,496 28,007 1,678,503 Professional development 2,337 2,337
Program events 54,063 ... 54,063
Rent and facilities 139,764 139,764
Special event production costs 40,292 40,292
Sponsorships 7,233 7,233
3,907,561 87,928 3,995,489
Less: direct benefit to donors at
special events included in revenue (61,300) (61,300)
3,907,561 26,628 3,934,189
TOTAL FUNCTIONAL EXPENSES $ 5,608,486 $ 576,483 $ 57,534 $ 6,242,503 See accompanying notes
• MISSION EDGE SAN DIEGO

STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

2022 2021

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Change in net assets $ 2,205,598 $ 3,182,507

ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES
Depreciation 4,116 939
Operating lease amortization 851 -
PPP loan forgiveness - (477,500)
Change in operating assets and liabilities:

Receivables 545,949 (943,096)
Pledges receivable (26,440) (873,637)
Prepaid expenses (38,479) 2,216
Security deposits (7,553)
Accounts payable (45,757) 191,785
Accrued expenses (190,115) 486,264
Deferred revenue 156,255 19,456
398,827 (1,593,573)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,604,425 1,588,934

CASH FLOWS USED BY INVESTING ACTIVITIES
Purchase of property and equipment (27,737)

CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
Funds drawn on line of credit 7,644 (77,500)
Payments on line of credit (7,644)
Amounts borrowed on PPP loan payable 477,5000
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES - 400,000 NET CHANGE IN CASH 2,576,688 1,988,934
CASH, BEGINNING OF YEAR 3,689,938 1,701,004
CASH, END OF YEAR $ 6,266,626 $ 3,689,938
SUPPLEMENTAL DISCLOSURES:

Interest paid $ 759 $ 4,197
Noncash investing and financing transactions:

See note 7 for noncash flow transactions related to operating leases Forgiveness of PPP loan (note 11) $ - $ 477,500
See accompanying notes
•

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

NOTE 1 MISSION EDGE SAN DIEGO
Mission Edge San Diego ("Mission Edge"), incorporated under the laws of California in 2011, operates a nonprofit, public-benefit organization. Mission Edge provides strategic and operational solutions for social enterprises. Mission Edge's products and services enable nonprofit, social sector leaders to focus on their mission and more effectively impact the communities they serve.

Mission Edge's products and services increase organizational effectiveness via expert support for essential operations and back-office activities. Mission Edge facilitates greater visibility into financial results and program outcomes to empower organizations to do more good.

Mission Edge's fiscal sponsorship program enables individuals and organizations ("Projects") to take advantage of charitable giving for events, projects, and community needs without requiring tax exempt status under Section 501(c)(3) of the Internal Revenue Code ("IRC"). Mission Edge serves as the legal and fiduciary agent for Projects, providing back-office support and mentorship currently benefitting more than 30 community programs and start-up nonprofits.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting - The accompanying financial statements are prepared using the accrual method of accounting in conformity with generally accepted accounting principles ("GAAP") in the United States of America.

Estimates - The preparation of financial statements in conformity with GAAP requires Mission Edge to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from these estimates.

Basis of presentation - Mission Edge follows the Financial Accounting Standards Board's (FASB) Financial Statements of Not-for-Profit Organizations for presentation of its financial statements which requires that net assets, support, revenue and gains, expenses and losses be classified according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions.

Net assets without donor restrictions - Net assets without donor restrictions consists of assets which are fully available, at the discretion of management and the Board of Directors, for Mission Edge to utilize in any of its programs or supporting services. Net assets without donor restrictions may also include amounts designated for certain purposes by the Board of Directors.

Net assets with donor restrictions - Net assets with donor restrictions consist of contributed funds subject to donor-imposed restrictions contingent upon specific performance of a future event or a specific passage of time before Mission Edge may spend the funds.

Intracompany eliminations - The financial statements include accounts of Mission Edge and its Projects.

All significant intracompany balances have been eliminated.

Cash - Mission Edge considers financial instruments with a fixed maturity date of less than three months to be cash equivalents. Mission Edge maintains its cash in numerous bank accounts, which, at times, •

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

exceed federally insured deposit limits. Mission Edge has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents.

Receivables - Receivables consist of donor promises to give and amounts due from nonprofit services clients and Projects. An allowance for doubtful accounts is accounted for using the specific identification method and uncollectible accounts are written-off after all collection attempts have been exhausted. All receivables are considered collectible as of December 31, 2022 and 2021.

Pledges receivable - Pledges receivable consist of donor promises to give. It is Mission Edge's policy to charge off uncollectible contributions receivable when management determines the receivable will not be collected. Contributions receivable that are expected to be received in excess of one year are reported at present value and a discount is recorded. All pledges receivable are considered collectible as of December 31, 2022 and 2021.

Property and equipment - Property and equipment are recorded at cost. Depreciation is computed using the straight-line method of depreciation over the assets' estimated useful lives of five to seven years. Maintenance and repairs are charged to expense as incurred; major renewals and betterments are capitalized. It is the Mission Edge's policy to capitalize all property and equipment costs in excess of $5,000 for the years ended December 31, 2022 and 2021. When items of property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is recognized in the current period financial statements.

Revenue recognition - The financial statements are presented on the accrual method of accounting.

Under this method of accounting, revenues are recognized when earned or a donor makes a promise to give that is, in substance, unconditional. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promises become unconditional.

Mission Edge follows accounting standards for recognition of revenue on contracts with customers.

Revenue for future performance obligations is recognized as the performance obligations are satisfied.

Income from membership dues and subscriptions received in advance is deferred and recognized over the periods to which the dues and fees relate.

Donor-imposed restrictions - All contributions are considered to be without donor restriction unless specifically restricted by the donor. Amounts received designated for future periods or restricted by the donor for specific purpose are reported as with donor restrictions, increasing those net assets classes. If a restriction is fulfilled in the same period in which the contribution is received, the support is reported as with donor restrictions and then released from restriction in the same period. Grants and contributions received on behalf of Projects are recorded as with donor restrictions support when awarded and are then released from restriction when the funds are spent.

If Project funds are not spent before a Project separates, such funds are recorded as a fund transfer expense at the time of separation. Grants receivable on behalf of Projects that are not actually received before a Project separates from Mission Edge are also recorded as a fund transfer expense at the time of separation.

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

In-kind donations - Mission Edge follows standards relating to contributions received and contributions made as consistent with the FASB Codification. These standards require recording the value of donated services that create or enhance non-financial assets or require specialized skills. During 2022 and 2021, revenue of $31,832 and $36,906, respectively, was recognized for donated services under in-kind contributions. Volunteers have contributed significant amounts of their time to activities of Mission Edge; however, since the above requirements were not met, the value of the contributed services is not recorded in the financial statements.

Mission Edge records donated goods with a fair value of $500 or more. During 2022 and 2021, revenue of $27,932 and $13,783, respectively, was recognized for donated goods under in-kind contributions in the statements of activities and changes in net assets. Donated investments are recorded as contributions at their fair values at the date of donation.

Concentration of revenue - For the year ended December 31, 2022, approximately 43% of Mission Edge's revenue came from two projects. For the year ended December 31, 2021, approximately 49% of Mission Edge's revenue came from one sponsored project, which was one of the same projects as for the year ended December 31, 2022.

Functional allocation of expenses - Mission Edge allocates its expenses on a functional basis among its program and support services. Directly identifiable expenses are charged to program and supporting services. There are certain categories of expenses that are attributable to more than one program or supporting function and require allocation on a reasonable basis. These expenses are allocated on the basis of estimated time spent. Personnel and benefit expenses are allocated on the basis of estimated time spent. All other non-direct expenses are allocated by using a ratio of number of employees involved to the total number of employees.

Marketing - Marketing expenses are charged to expense as incurred.

Income taxes - Mission Edge is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and comparable state law, and contributions to it are tax deductible within the limitations prescribed by the Code.

Mission Edge follows accounting standards which clarify the accounting for uncertainty in income taxes recognized in Mission Edge's financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition and measurement of a tax position taken or to be taken in a tax return. As of December 31, 2022 and 2021, Mission Edge has not accrued interest or penalties related to uncertain tax positions. Mission Edge files tax returns in the U.S. Federal jurisdiction and the State of California.

Recent accounting pronouncements
In February 2016, FASB issued ASU 2016-02 Leases (Topic 842). In July 2018, FASB issued two updates to ASU 2016-02, ASU 2018-10, Codification Improvements to Topic 842 Leases, and ASU 2018-11, Leases (Topic 842): Targeted Improvements. The new standard is effective for fiscal years beginning after December 15, 2021. Mission Edge adopted Topic 842 as of January 1, 2022 by recognizing and

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

measuring leases at the adoption date with cumulative effect of initially applying the guidance recognized at the date of the initial application and as a result did not restate the prior periods presented in the financial statements. Mission Edge elected certain practical expedients permitted under the transitional guidance, including retaining historical lease classification, evaluating whether any expired contracts are or contain leases, and not applying hindsight in determining the lease term. Lastly, Mission Edge elected the short-term lease exception for all classes of assets, and therefore does not apply the recognition requirements for leases of 12 months or less.

Mission Edge categorizes long-term leases as either operating or finance. Finance leases are generally those leases that allow the organization to substantially utilize or pay for the entire asset of its estimated life. Mission Edge had no finance leases at December 31, 2022.

Leases with a term greater than one year are recognized on the statements of financial position as right- of-use (ROU) assets and short-term and long-term lease liabilities, as applicable. Operating lease liabilities and their corresponding ROU assets are initially recorded based on the present value of lease payments over the term of the lease. The rate implicit in lease contracts is typically not readily determinable and, as a result, Mission Edge utilizes the treasury yield rate to discount lease payments.

In September 2020, the FASB issued ASU 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets (Topic 958). ASU 2020-07 improves transparency in the reporting of contributed nonfinancial assets, also known as gifts in-kind, for not-for-profit entities. The ASU requires a not-for-profit organization to present contributed nonfinancial assets as a separate line item in the statement of activities apart from contributions of cash or other financial assets, along with expanded disclosure requirements. This standard is applied on a retrospective basis. The adoption had no effect on the 2022 financial statements.

NOTE 3 CASH
Mission Edge maintains its cash balances in three financial institutions.

Cash consists of the following at December 31:
2022 2021
Cash with donor restrictions held for projects $ 5,086,912 $ 2,775,153 Cash without donor restrictions 1,179,714 914,785
3 6.266,626 $ 3,689,938

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

NOTE 4 RECEIVABLES
Receivables consist of the following at December 31:
2022 2021
Core operations:

Contributions receivable $ 64,547 $ 50,753
Nonprofit services receivable 27,539 134,250
92,086 185,003
Fiscal sponsor projects:

Contributions receivable 723,976 498,397
Government contracts receivable 678,611
723,976 1,177,008
$ 816,062 $ 1,362,011
NOTE 5 PLEDGES RECEIVABLE
Long-term pledges receivable are shown at present value using discount rates of 4.3%. Pledges receivable consist of the following at December 31:
2022 2021
Gross pledges receivable 925,000 $ 900,000
Less: discount to net present value (24,923) (26,363)
Net pledges receivable 900,077 873,637
Amounts due in:

One year or less $ 600,000
Between one and five years 325,000
3 925,000
NOTE 6 PROPERTY AND EQUIPMENT
Property and equipment consist of the following at December 31:
2022 2021
Furniture and fixtures 28,127 7,890
Leasehold improvements 7,500
35,627 7,890
Accumulated depreciation (12,006) (7,890)
$ 23,621 $
Depreciation expense was $4,116 and $939 for 2022 and 2021, respectively.

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

NOTE 7 LEASES
Mission Edge has several leases for its own office space or on behalf of its Projects under operating leases. Mission Edge also has several month to month leases that require 30 days notice to terminate.

The components of total lease cost, included in rent and facilities on the statement of functional expenses, for the year ended December 31, 2022 consisted of the following:

Operating lease cost $ 42,595
Short-term lease cost 142,172
Total lease cost $ 184,767
Rent expense totaled $180,964 for the year ended December 31, 2021.

The following summarizes the weighted average remaining lease term and discount rate as of December 31, 2022:

Weighted average remaining lease term 30 months
Weighted average discount rate 4.02%
Supplemental cash flow information related to operating leases for the year ended December 31, 2022 is as follows:

Operating cash flows for operating leases $ 32,273
Right-of-use assets acquired under operating leases $ 260,070 Future minimum undiscounted lease payments related to the operating lease liability for the years ended December 31 is as follows:
2023 $ 107,355
2024 94,799
2025 53,258
Total undiscounted lease payments 255,412
Less: present value discount (17,415)
Total operating lease liability $ 237,997
NOTE 8 LINE OF CREDIT
In 2017, Mission Edge entered into an agreement with a commercial bank for a $250,000 unsecured line of credit. The interest rate on the line is the lender's prime rate plus 2.55%. The lender's prime rate was

7.50% and 3.25% at December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, $10,000 had been drawn on the line.
•

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Interest expense related to the line is $759 and $4,197 for the years ended December 31, 2022 and 2021, respectively.

NOTE 9 NET ASSETS
Net assets with donor restrictions consisted of the following at December 31:
2022 2021
Purpose restriction:

Fiscal sponsor projects $ 6,093,171 $ 4,059,398
Impact lab 124,607 10,739
Seed the Future 92,299 74,115
COMPASS 143,283
:

COVID-19 support funds 18,100
$ 6,310,077 $ 4,305,635
Net assets were released from donor restrictions by incurring expenses satisfying the purpose or time restriction specified by donors as follows:
2022 2021
Purpose restriction accomplished:

Fiscal sponsor projects $ 7,419,169 $ 4,622,756
Seed the Future 256,272 15,886
SAIL 196,887 90,435
COMPASS 143,283 6,717
Impact lab 106,213 266,007
COVID-19 support funds 18,100 279,391
FS Model C 1,636
3 8,139,924 $ 5,282,828
NOTE 10 LIQUIDITY AND AVAILABILITY OF RESOURCES
Mission Edge is substantially supported by contributions with donor restrictions. Contributions and expenses are monitored on a monthly basis by Mission Edge's management and board. The level of assets are monitored on an annual basis. Mission Edge's goal is to be able to function within the boundaries of the income received throughout the year.

Mission Edge currently has a line of credit established with a national bank. The line of credit ensures short-term financial ability of Mission Edge to pay general expenditures.

MISSION EDGE SAN DIEGO

NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

The following reflects Mission Edge's financial assets as of December 31, 2022 and 2021, reduced by amounts not available for general use because of contractual or donor-imposed restrictions within one year of the statement of financial position date.
2022 2021
Financial assets at year-end:

Cash $ 6,266,626 $3,689,938
Receivables 816,062 1,362,011
Pledges receivable - current 600,000 325,000
7,682,688 5,376,949
Less those unavailable for general expenditures within one year, due to contractual or donor-imposed restrictions:

Restricted by purpose restrictions (6,310,077) (4,305,635) Financial assets available to meet cash needs for general expenditures within one year $ 1,372,611 $1,071,314
NOTE 11 PPP LOAN FORGIVENESS
On January 1, 2021, Mission Edge entered into a second note payable agreement with California International Bank for $477,500 pursuant to the Payroll Protection Program ("PPp") second draw. This loan was forgiven on July 6, 2021 and Mission Edge recognized this income as other income in the statement of activities and changes in net assets for the year ended December 31, 2021.

NOTE 12 SUBSEQUENT EVENTS
Mission Edge has evaluated subsequent events through June 8, 2023, the date which the financial statements were available to be issued.

CONSIDINE CONSIDINE

CERTIFIED PUBLIC ACCOUNTANIS

INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION To the Board of Directors
Mission Edge San Diego
We have audited the financial statements of Mission Edge San Diego as of and for the years ended position (before intracompany eliminations) - Mission Edge core operations, statement of financial position (before intracompany eliminations - fiscal sponsor projects, statement of activities and changes in net assets (before intracompany eliminations) - Mission Edge core operations, and statement of activities and changes in net assets (before intracompany eliminations) - fiscal sponsor projects as of and for the years ended December 31, 2022 and 2021 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

Considline + Considina

CONSIDINE & CONSIDINE
An accountancy corporation
June 8, 2023
Earning Your Trust Since 19+6
8989 RIO SAN DIEGO DRIVE. SUITE 250 • SAN DIEGO, CA 02108 TEL 019-231-1977 • FAX 619-231-8244 - www.ccepa.com
•
• MISSION EDGE SAN DIEGO

STATEMENT OF FINANCIAL POSITION
(BEFORE INTRACOMPANY ELIMINATIONS)

MISSION EDGE CORE OPERATIONS
DECEMBER 31, 2022 AND 2021

2022 2021
ASSETS

CURRENT ASSETS
Cash $ 1,179,714 $ 914,785
Receivables 285,794 335,546
Prepaid expenses 2,999 866
1,468,507 1,251,197

OTHER ASSETS
Security deposits 4,695 4,552
Operating lease right-of-use asset 141,643 -
146,338 4,552
TOTAL ASSETS $ 1,614,845 $ 1,255,749

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable $ 10,485 $ 29,948
Accrued expenses 171,560 132,487
Deferred revenue 31,732 6,000
Line of credit 10,000 10,000
Operating lease liability - current 49,015
272,792 178,435

LONG TERM LIABILITIES
Operating lease liability 92,914
TOTAL LIABILITIES 365,706 178,435

NET ASSETS
Net assets without donor restrictions 1,032,233 831,077 Net assets with donor restrictions 216,906 246,237
TOTAL NET ASSETS 1,249,139 1,077,314
TOTAL LIABILITIES AND NET ASSETS $ 1,614,845 $ 1,255,749 •

MISSION EDGE SAN DIEGO

STATEMENT OF FINANCIAL POSITION
(BEFORE INTRACOMPANY ELIMINATIONS)

FISCAL SPONSOR PROJECTS
DECEMBER 31, 2022 AND 2021

2022 2021
ASSETS

CURRENT ASSETS
Cash $ 5,086,912 $ 2,775,153
Receivables 723,976 1,177,008
Pledges receivable 600,000 325,000
Prepaid expenses 43,138 6,792
6,454,026 4,283,953
PROPERTY AND EQUIPMENT 23,621

OTHER ASSETS
Security deposits 11,066 3,656
Pledges receivable - long term, net 300,077 548,637
Operating lease right-of-use asset 95,503
406,646 552,293
TOTAL ASSETS $ 6,884,293 $ 4,836,246

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
Accounts payable 357,577 246,450
Accrued expenses 187,498 510,942
Deferred revenue 149,979 19,456
Operating lease liability 48,793
743,847 776,848

LONG TERM LIABILITIES
Operating lease liabillity 47,275
TOTAL LIABILITIES 791,122 776,848

NET ASSETS
Net assets with donor restrictions 6,093,171 4,059,398
TOTAL LIABILITIES AND NET ASSETS $ 6,884,293 $4,836,246

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
(BEFORE INTRACOMPANY ELIMINATIONS)

MISSION EDGE CORE OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2021

WITHOUT DONOR WITH DONOR 2022 2021

RESTRICTIONS RESTRICTIONS TOTAL TOTAL

REVENUE AND SUPPORT
Core operations
Fee revenue $ 2,333,914 $ $ 2,333,914 1,631,311
Contributions 145,133 691,424 836,557 973,587
Other income 262,338
2,479,047 691,424 3,170,471 2,867,236
Net assets released from restrictions
Satisfaction of grant restrictions 720,755 (720,755)
TOTAL REVENUE AND SUPPORT 3,199,802 (29,331) 3,170,471 2,867,236

FUNCTIONAL EXPENSES
Core operations
Program services 2,102,802 2,102,802 1,700,925
Management and general 844,529 844,529 589,983
Development 51,315 51,315 30,906
2,998,646 2,998,646 2,321,814
CHANGE IN NET ASSETS 201,156 (29,331) 171,825 545,422
NET ASSETS, BEGINNING 831,077 246,237 1,077,314 531,892 NET ASSETS, ENDING 1,032,233 216,906 $ 1,249,139 $ 1,077,314

MISSION EDGE SAN DIEGO

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
(BEFORE INTRACOMPANY ELIMINATIONS)

FISCAL SPONSOR PROJECTS
FOR THE YEAR ENDED DECEMBER 31, 2022
SUMMARIZED INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2021

WITHOUT DONOR WITH DONOR 2022 2021

RESTRICTIONS RESTRICTIONS TOTAL TOTAL

REVENUE AND SUPPORT
Fiscal sponsor projects
Contributions $ - $ 6,430,852 $ 6,430,852 $ 4,054,372
Federal contracts 2,052,862 2,052,862 2,642,988
Earned revenue 660,716 660,716 276,807
In-kind contributions : 59,764 50,689
Other income 59,764 215,162
Special events, net
Special event revenue 286,073 286,073 81,123
Direct benefits to donor : (37,325) (37,325) (61,300)
248,748 248,748 19,823
- 9,452,942 9,452,942 7,259,841
Net assets released from restrictions
Fiscal sponsor projects' expenses 7,419,169 (7,419,169) TOTAL REVENUE AND SUPPORT 7,419,169 2,033,773 9,452,942 7,259,841

FUNCTIONAL EXPENSES
Fiscal sponsor projects
Program services 6,772,977 6,772,977 4,469,640
Development 257,820 257,820 58,991
Management and general 388,372. 388,372 94,125
7,419,169 7,419,169 4,622,756
CHANGE IN NET ASSETS 2,033,773 2,033,773 2,637,085
NET ASSETS, BEGINNING 4,059,398 4,059,398 1,422,313
NET ASSETS, ENDING $ $ 6,093,171 6,093,171 4,059,398

CONSIDINE CONSIDINE

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Mission Edge San Diego
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Mission Edge San Diego (a nonprofit organization), which comprise the statement of financial position as of December 31, 2022, and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated June 8, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Mission Edge San Diego's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Mission Edge San Diego's internal control. Accordingly, we do not express an opinion on the effectiveness of the Mission Edge San Diego's internal control.

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

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

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Mission Edge San Diego's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and Earning Your Trust Since 1946
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material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

Considine + Considine

CONSIDINE & CONSIDINE
An accountancy corporation
June 8, 2023

MISSION EDGE SAN DIEGO

SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2022

A. Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
• Material weakness(es) identified? • Yes * No
• Significant deficiencies identified that are
Not considered to be material weaknesses? • Yes • No
• Non-compliance material to financial
statements noted • Yes * No
B. Financial Statement Findings
None
Baldwin I. Avendano
Senior Pastor
403 10th st. Calexico, Ca. 92231 | | Phone: 928-277-6112 E-mail: [email protected]

SUMMARY
An energetic, young, fully bilingual elder pastor with strong leadership, has been lead pastor for 14 years in four different congregations, with experience in preaching and teaching biblical messages, effective team organizer and ministry developer. Through his years as a lead pastor, he has assisted in developing stronger local churches in organization and administration, leadership, musical ministries, small groups, pastoral counseling and companionship. diverse ministries for the community and many other social areas. Fully engaged in serving the church of God for many more years through the pastoral ministry.

SKILLS
> Bible-centric preaching and teaching > Constant pastoral companionship and counseling > English and Spanish speaker > Small groups organizer and developer > Leadership developer/organizer > Experience with feeding, homeless and migrant > Basic musical knowledge for teaching and church-community programs. developing worship ministries > Church administration and organizational knowledge

MINISTRY EXPERIENCE
• Aug 2018 - Current: Calexico United Methodist Church - Calexico, CA • Focused in guiding a congregation through a revitalization process, re-discovery of mission and ministries for the community in this border city.
• Organizes and forms new leadership and administrative staff for church development. • Preach, teach and lead worship in a bilingual and contemporary format. • Activate church membership and attract new congregants through leadership, active groups, involvement in community programs and other companionship and fellowship strategies. • Implementation of modern worship music in English and Spanish, help developing new musicians. • Aug 2015 -Aug. 2018: Getsemani Iglesia Metodista de Mexico - Mexicali, BC, Mexico. • Lead a congregation for leadership, stability, and growth. • Reorganized church administration and leadership for optimal development. • Preached and lead Sunday worship services, mid-week services, Sunday biblical school, and small groups.
• Renewed worship ministry, lead Sunday worship music and helped developing musicians. • Organize prayer nights, discipleship, outreach, social work, and many fellowship events. • Aug 2012 -Aug. 2015: Monte Moriah Iglesia Metodista de Mexico - Mexicali, BC, Mexico. development, and growth.
• Preached on Sunday and Mid-week services.
• Established new Youth, Men and Women groups.
• Lead worship music, teach new musicians, form new worship bands. • Aug 2009 -Aug. 2012: Mahanaim Iglesia Metodista de Mexico - San Quitin, BC, Mexico. • Guided a church for its solidification, leadership development and growth. • Preached on Sunday worship services, 2 mid-week worship services, Sunday bible school. • Lead to develop new leaders, established mid-week small groups, youth groups, worship bands and new musicians, discipleship classes, outreach events, and several strategies that helped church growth in solid numbers.

EDUCATION
• 2009 Bachelor's in Theology: Seminario Metodista Juan Wesley - Monterey, N.L., Mexico Attachment No. 2 (b)

SUPPLEMENTAL

GRANT PROPOSAL
Level 2: Creating a Day Center for
Migrants at Calexico UMC
This supplemental grant proposal is
dependent on the full funding of
Level 1.
•
United Methodist Emergency Border Response Network
Supplemental Grant Proposal for the City of Calexico: Asylum-Seeker Day Center @ Calexico UMC
March 27, 2024
1) Executive Summary
The U.S. Customs and Border Protection Office continues to release asylum seekers into the City of Calexico. In 2023, CBP released into Calexico an average of 80 asylum seekers at the port of entry per day and an average of 12 people per day from the Detention Facility. These releases burden the City with a need for temporary accommodations and emergency assistance, along with the need to transport people quickly and efficiently to their sponsors in other cities. The United Methodist Emergency Border Response Network has successfully provided temporary assistance and transport to over 1000 asylum seekers since 2018. Our network of volunteers, partner organizations, and church-based shelters extends throughout Southern California. The church's compassion for home-seeking migrants dovetails with the City's desire to provide brief, transitional services.

In additional to scaling up our emergency provision of food, overnight shelter, and transportation, the United Methodist Emergency Border Response Network is prepared to create a Migrant Day Center at Calexico United Methodist Church. We can give up to 50 migrants per day an indoor place to rest and regroup, eat a meal and coordinate travel plans.

During summer and winter, the Center will also be a refuge from extreme temperatures.

Importantly, this family-safe alternative removes many migrants from the streets of Calexico.

The Center would be open Monday-Friday from 10:00 am until 6:00 pm.

For Level 2, we are requesting $17,987 per month, or $215,848 per year in addition to the budget requested by our Level 1 proposal. We have increased our capacity to administer this large grant by applying as a fiscally sponsored project of Mission Edge San Diego. Mission Edge will provide reports to the city and handle the administrative tasks associated with accounting and staffing this project.
2) Organizational Mission Statement and Background
The United Methodist Emergency Border Response Network implements the denomination's long-term commitment to the compassionate reception of asylum-seekers. We bring together partners for this work on the southern border of California. The denomination's official statements undergird the work of educating our congregations about immigration issues, as well as the implementation of welcoming centers and legal aid. Methodist congregations and nonprofits around the country engage in relational ministry, along with the practical work of transporting and settling people in their new hometowns.

The denomination's work is facilitated internationally, nationally, and locally by the General Board of Global Ministries, the United Methodist Committee on Relief, the California-Pacific 1 Annual Conference Immigration Task, United Women in Faith, the California-Pacific Immigration Task Force, the Safe Harbors Network, the South District Union, the Cal-Pac Justice and Compassion Ministries, and other affiliate organizations. In addition, we work with a variety of local partners to accomplish our goals, including El Otro Lado, the Calexico Neighborhood House, Catholic Charities, CLUE, and Border Compassion Ministries.

Pastor Baldwin Avendano has served as our lead point person since 2018, effectively coordinating the hospitality and transfer of over 1000 migrants during that period. We have seen the need to form a separate non-profit for governance, coordination, and fundraising. This non-profit is now the United Methodist Emergency Border Response Network, a fiscally sponsored project of Mission Edge. With funding from the City, our denomination, and our partners, we are prepared to ramp up our operations to meet current needs. 3) Statement of Need
Asylum-seekers need assistance with funding and finding a place to stay, securing emergency food and hygiene supplies, arranging travel to the next location, and finding church-related shelters in San Diego and Los Angeles. Families need a safe indoor place to tend to the needs of infants and children. This is especially true during extreme weather seasons.

The City's stated needs are to avoid the problems of unhoused migrants and the necessity for long-term local accommodations and support. We understand this need and we are ready to assist.
4) Project Description
The United Methodist Emergency Border Response Network will open a Day Center at Calexico UMC. It will be open Monday-Friday from 10:00 am until 6:00 pm. Our expectation is that up to 50 people will come and go daily. The Day Center will provide a comfortable place to rest and recover, along with a play area for children. Workstations with computers will be available for arranging travel. Migrants can access the Clothing Closet for coats, socks and other necessities. We will provide at least one meal per day, along with water and snacks. We will invite migrant-serving agencies to connect with the asylum-seekers in our Day Center.

Our Goals are Specific:
* We will host around 50 people per day, up to 1050 per month. Our Case Managers will be working with migrants from arrival to departure, making sure that they have indoor shelter and supplies while in Calexico, and setting them up for safe travel to their next destination.

The funds provided in the City's grant will be supplemented by up to $150,000 in additional fundraising within the United Methodist Emergency Border Response Network and funding from our partner organizations.
2 •
5) Budget Narrative
The attached budget is labelled Level 2: Day Center
** Note: The numbers rely on the City's funding of Level 1: Expansion of our Current Emergency Assistance. The Level 2 budget is not a stand-alone budget.

Our funding comes from other local churches and individuals, our District and Conference headquarters, as well as from partner organizations. We expect this funding and volunteer assistance to continue.

The attached budget represents an expansion of services.

One-time Expenses: The church will need a modest amount of preparation. We have included the purchase of up to 4 computers and workstations. Additional funds will transform the current piles of clothing into an easy-access clothing closet. Modest and durable furniture will be purchased for a living room area and children's space.

Monthly Expenses: We have included the kinds of expenses one would expect for a Day Center: improved Wifi and food for guests, estimated at 1050 people a month at $5 per meal.

We have budgeted $1344/month in wages for on-site cooks and outside food preparers, and another $1344/month for necessary daily custodial services.

Our fiscal sponsor Mission Edge will add worker's comp coverage and administer all HR and payroll services for the project. This service is provided at a set percentage fee of 10% of payroll.

We will contract with a security service for daily service, estimated at $3360/month.

Due to the limited bathroom facilities at the church, we recommend the addition of 2 port-a- potties at $500 per month.

We have budgeted an additional rental fee for the church of $1000/month and added a repair and maintenance budget for the inevitable issues. We have tentatively budgeted for additional insurance coverage, pending an estimate from our broker.

Administration Costs - Fiscal Sponsorship: Our alignment with fiscal sponsor Mission Edge permits us to scale up quickly while assuring the City of an excellent accounting of funds and professional administrative business practices. The set percentage fee associated with this service is entered into the budget: $1440/month.

In summary, we estimate that we can create a Day Center with appropriate services, security, management and administration for $17,442/month or $209,308 per year. 3 6) Outcomes
The City of Calexico can count on the United Methodist Emergency Border Response Network to provide a compassionate and expedient emergency response to asylum-seekers released by CBP. We understand the challenges of maintaining a safe, clean city with limited resources. We will be a solid partner to the City as we receive and assist asylum seekers toward the next stage of their journeys. We plan for this first year to lay the groundwork for many years of reliable future partnership.
*************************
****Please note that the costs associated with Level 2: Expansion of our Current Emergency Assistance plus Day Center (10 am - 6 pm) are dependent on full funding of Level 1: Expansion of our Current Emergency Assistance.

Thank you for your consideration of both proposals.

Pastor Baldwin Avendano
Founder & Director
United Methodist Emergency Border Response Network
Rame Cas
Rev. A. Paige Eaves
Assistant South District Director
California-Pacific Annual Conference
The United Methodist Church
Attachments:

Level 2 Budget
4 Calexico Asylum-Seeker Day Center @ Calexico UMC
The Level 2 budget is dependent on the funding of the Level One budget.

Level 2: Day Center Monday thru Friday from 10 am to 6 pm Estimates based on up to 50 people a day
Facilities Costs for Calexico UMC
One-time expenses
Computers, Work Stations $5,000
Clothing Closet upgrade $1,000
Living Room $3,000
Children's Space $2,000
Facilities Costs One-Time Expense Sub-Total $11,000
Monthly Expenses
Wifi $100 $1,200
Food for additional migrant guests 1050 meals @ $5 $5,250 $63,000 Cooks & Outside Food Prep 4 hours/day 5 days/week @$16 $1,344 $16,640 Custodial 4 hours/day 5 days/week @$16 $1,344 $16,640
HR & Payroll Costs 10% of total payroll $269 $3,226
Port-a-Potty rental 2 with twice weekly service $500 $6,000 Security Contract 8 hours/day 5 days/week@$20 $3,360 $40,320 Facilities rental & utilities $1,000 $12,000
Repairs & Maintenance $1,000 $12,000
Additional Insurance $833 $10,000
Facilities Costs Monthly Sub-Total $15,000 $181,026
Administration Costs - Fiscal Sponsorship
Mission Edge grant management & accounting 1440 17,282
HDay Center Costs Total $17,442 $209,308
5