PY 2023-2024 APPLICATION
Homeless and Homelessness Prevention Programs
1. Project Summary Information – please complete the below summary for the project/program.
Project Name (10 words or less): Project UNITE
Amount Requested: $ 248,958.00
ESG Applicants Only – please provide a breakdown of amount requested by program component:
Street Outreach: $ 0.00
Emergency Shelter: $ 0.00
Homelessness Prevention: $ 15,916.00
Rapid Rehousing: $ 233,042.00
HMIS: $ 0.00
This is a:
New Project/Program
Existing Project/Program
Provide a short description of the proposed program/activity. (1 to 3 sentences and must fit in the provided space).
WestCare California, Inc. is seeking funding to continue providing rapid rehousing and homelessness prevention services through Project Unite. During the grant period, Project Unite will will provide: 1) 21 individuals with homelessness prevention services; 2) 18 individuals with rapid rehousing assistance; and 3) 13 households will receive case management services. The program will engage homeless and chronically homeless individuals and families with extremely low-incomes (less than 30% area median income), including Veterans who are not eligible for housing assistance through SSVF or HUD-VASH.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
2. Organizational Capacity
a. Describe the organization’s experience with administering federally funded programs of this nature.
WestCare California, a subsidiary of WestCare Foundation, has provided behavioral health and human services including street outreach and engagement, housing and homelessness prevention, case management, substance use disorder treatment, and co-occurrring mental health disorder services to the Fresno community since 1974. WestCare provides services for low-income individuals and families. Special populations we work with include people experiencing homelessness, people with substance use and mental health disorders, people living with HIV/AIDS, criminal justice populations, Veterans, and people identifying with the LGBTQ community.
With ongoing funding from multiple federal, state, and local agencies including HUD, SAMHSA, Veterans Administration, California Department of Corrections and Rehabilitation, Board of State and Community Corrections, City of Fresno, County of Fresno, and others, WestCare California administers 60 separate contracts throughout the State of California with a budget of approximately $60 million and more than 500 staff. WestCare's leadership team possesses decades of experience in administering homelessness prevention and housing programs.
WestCare currently operates several housing programs through a variety of funders, including Project Unite and Housing Opportunities for People with AIDS (HOPWA) under contract with the City of Fresno; Project LiftOFF funded by HUD; and Coordinated Entry for the Fresno Madera Continuum of Care also funded by HUD, among others.
WestCare has sufficient cash reserves to guarantee at least three months of program service in the event that funding from this source is delayed or unavailable. b. For how many years has the organization administered activities of the type described in this application?
49 c. Does the organization have the following in place (check box if ‘yes’)? Written policies and procedures for the proposed project or program (i.e., intake, eligibility)
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
Written Financial Management Policies and Procedures
Non-Discrimination / Equal Opportunity Policy
Conflict of Interest Policies and Procedures
Procurement Policies and Procedures
Facility utilization plan and policies
Note: If not, be aware, the City will require a facility utilization plan and policies prior to the execution of a subrecipient agreement.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
d. Provide addresses for each applicable location of site(s) where activity will occur, and a brief description of the facilities.
WestCare's Housing Department offices are located at 1900 N. Gateway Blvd., Ste. 100, Fresno, CA 93727. This facility houses senior leadership, Housing Department staff, and administrative support staff and provides dedicated office space for private client meetings, conference rooms, and a complete training facility.
Maps attached as exhibit H
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
3. Proposed Scope of Work
a. Briefly describe the needs this proposal addresses, and how existing resources are insufficient to meet this need:
There is a great need in the City of Fresno for housing and supportive services for an increasing homeless population. The 2022 Point in Time ("PIT") Count, which documents all persons living on the streets in Fresno and Madera Counties, took place on February 23rd. It showed that a total of 4,216 people were experiencing homelessness in Fresno and Madera Counties on the night of the survey. This includes 2,338 people who were experiencing unsheltered homelessness, 1,524 people who were staying in emergency shelters, and 336 people who were living in transitional housing. These figures represent a 15% increase in homelessness in the Fresno-Madera area since the last PIT Count was conducted in 2020. This data clearly indicates that continued ESG funding is urgently needed in the community for rapid rehousing and homelessness prevention services. b. Briefly describe the target population and how the project will meet the specific needs of the target population.
WestCare has a long history of successfully housing and treating people in need in the City of Fresno, including the most vulnerable populations who are considered the hardest to reach – extremely low-income households, disabled individuals, Veterans, people living with HIV/AIDS, chronically homeless individuals, people fleeing domestic violence, and people with co-occurring substance use and mental health disorders.
The people WestCare serves need intensive case management services and often require linkages to multiple supportive services in addition to housing, including medical care, treatment for substance use and mental health disorders, adult basic education, life skills training, vocational skills and job search assistance, and enrollment in public benefits for which the client may not be aware of their eligibility. WestCare staff is highly experienced in the provision of effective, stigma free services for people who may have many barriers to successful outcomes. All of WestCare's programs follow the housing first model and are person-centered, gender-responsive, and trauma-informed and follow proven, evidence-based practices in service delivery.
Project Unite provides comprehensive services based on each participant’s unique needs, including:
• Conducting assessments to determine housing and supportive services needs PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
• Developing individualized plans for housing and supportive services • Providing prevention, diversion, and rapid re-housing assistance • Provision of financial, utility, and/or rental assistance • Obtaining needed documents (license, birth certificate, etc.) • Helping participants set up appointments and complete paperwork • Attending appointments with participants
• Locating, securing, and maintaining stable permanent housing (within 30-60 days)
• Obtaining federal, state, and local benefits (Medi-Cal, CalFresh, WIC, etc.) • Monitoring and evaluating participants’ progress
• Updating assessments and service plans to reflect current needs and interests • Continuing engagement with supports and services until permanently housed • Providing linkages/warm hand-off to other available services, including:
o Financial literacy, budgeting, paying rent, and bills o Transportation passes/vouchers
o Employment
o Social and recreational opportunities
o Apartment maintenance/upkeep
o Tenant rights and responsibilities
o Household and personal safety
o Being a good neighbor
o Conflict resolution
o Developing supportive and positive relationships
c. Describe how the project will be marketed to the target population.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
Project Unite will market its services to the target population through regular outreach activities to engage people in need and educate them about available housing assitance and other resources offered in the community by WestCare and other partners in the Fresno-Madera Continuum of Care. The program also produces brochures describing available services and distributes these marketing materials at community events to notify the community about available services. Additionally, Project Unite's Case Manager will continue to actively participate in weekly Coordinated Entry case conferencing meetings where potential clients are discussed and decisions about referrals are made.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
d. Summary of Services to be provided:
Select all services to be provided, including those that are not funded by the City.
Emergency Shelter
Transitional Housing
Homeless Prevention/Housing Assistance
Homeless Diversion
Mental Health/Other Services
- Individual and Family Counseling
- Drug/Alcohol Treatment
- Job Training
- Children’s Program
- Parenting education
- Domestic Violence Intervention
- Self-Sufficiency Skills Training
- Outreach
- Assessment of Needs
Permanent Housing with Supportive Services
Affordable Housing
Job Training/ Job Search
Women’s Program
Day Care
Youth Program
Access to Medical
Immigration Assistance
Fair Housing Assistance
Academic Support/Tutoring
Referral Services
Case Management
Provide Meals
Free Services
Business Development to micro-enterprise
Other (specify):transportation assistance
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
e. Estimate the number of unduplicated persons expected to benefit from the project:
39 unduplicated persons will receive a direct benefit from this project. f. Please indicate which of these service types will be provided and the number of unduplicated persons who will benefit.
Check if
Providing Public and Community Service Types Estimated No. Persons Assisted Operating Cost of Shelters for Persons
who are homeless or impacted by
HIV/AIDS
Rental Assistance/Subsidy 39
Supportive/Essential Services (not
duplicated with services provided in
conjunction with another activity)
Housing information services (not
duplicated with services provided in
conjunction with another activity)
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
g. Describe the homeless or homelessness prevention service program. Please include information about barriers to program participation and how the activity will address those barriers, and any information about how the activity was developed or refined in consultation with the target population. Limit description to the space provided on this and the next page.
WestCare is seeking continued funding for rapid rehousing and homelessness prevention for Project Unite. This program prioritizes the housing, health, and wellbeing of homeless and chronically homeless extremely low-income individuals, and those at risk of homelessness, without regard for gender, sexual orientation, or disability, and fulfills all criteria of Housing First. The project’s goals are to: 1) Establish supportive relationships with the street homeless population in the City of Fresno, providing linkages and support to decrease the number of persons experiencing unsheltered and chronic homelessness; 2) Increase participants’ income and ability to obtain and maintain permanent housing; 3) Assist participants in establishing and maintaining a healthy lifestyle.
WestCare's proposed activities are consistent with the priorities outlined in the City of Fresno 2020-2024 Consolidated Plan. The specific priority addressed under this application is for "Homelessness and the Prevention of Homelessness" to "provide assistance for the homeless and those at risk of becoming homeless through safe low-barrier shelter options, housing first collaborations, and associated supportive services." WestCare's proposed services are interventions that are consistent with the plan’s priorities regarding homelessness, will help participants regain housing stability, and are grounded in the Housing First approach. WestCare and partners provide all aspects of homeless housing and homelessness prevention including emergency shelter, bridge housing, housing relocation, rental assistance and housing stabilization, linkages to substance use disorder and mental health treatment services, and case management.
Project Unite aligns with the Consolidated Plan’s high prioritization of homelessness remediation. The plan’s goal regarding homelessness is to provide assistance including shelter operations, rapid rehousing, and homelessness prevention. Project Unite provides homeless housing and homelessness prevention services including emergency shelter, bridge housing, housing relocation, rental assistance, and housing stabilization. The plan also prioritizes providing assistance to low-income and special needs households through case management and linkages to substance use and mental health treatment, which WestCare provides directly. WestCare also fulfills the plan's goal of providing facilities through collaboration for persons with special needs, such as domestic violence victims, through a partnership with the Marjaree Mason Center.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
Detailed Narrative Description of Project/Program (Continued from previous page) WestCare applies the Housing First approach to meet people experiencing homelessness where they are. WestCare works with a broad network of community partners in the Fresno-Madera Continuum of Care and its Coordinated Entry system.
Potential participants are identified through FMCoC outreach efforts, other WestCare programs like San Joaquin Valley Veterans, and WestCare’s own outreach teams.
Project Unite also accepts walk-ins and referrals from city and county agencies, as well as the Veterans Administration Medical Center. Intake is done through Coordinated Entry. Participants are immediately assessed and prioritized for available housing using the standardized Vulnerability Index-Service Prioritization and Decision Assistance Tool (VI-SPDAT). Additionally, all participants are entered into HMIS to prevent service duplication and ensure efficient, expedited service delivery. Case managers begin working with participants upon enrollment to develop Individual Service Plans (ISP) with short- and long-term goals for housing stability. Initially, participants and case managers meet weekly, or even daily, until the participant gains more stability in their living situation. Additional services provided include life skills training, literacy, and jobreadiness programs. Permanent housing is usually obtained within 30-60 days.
In previous years, the program's provision of rapid rehousing rental assistance was limited to six months. However, under the new grant term, WestCare would like to extend rapid rehousing rental assistance for up to 12 months. The longer support period will help the program attract more participants, increase/maintain housing stability, and secure landlords' agreements to rent to program participants. These program improvements will also ensure that WestCare is able to fully spend down the grant within the twelve-month grant term.
People experiencing homelessness face formidable barriers in their attempts to improve their housing stability. Lack of reliable transportation, need for childcare, lack of steady work history or inadequate preparation for employment, lack of benefits for which they may be eligible, and the inability to navigate complex systems can all impede housing stability. Project Unite mitigates these factors through comprehensive services including providing transportation to appointments, linking participants to medical and mental health providers, substance use disorder treatment, vocational and educational services, and assisting them in successfully enrolling in benefits for which they may be eligible.
At WestCare, we believe that getting feedback from participants is the best way to continuously improve the effectiveness and efficiency of our programs. To this end, participant satisfaction surveys are issued to clients to receive feedback on services from their perspective. The goal of these surveys is to gather participant’s opinions about the program and determine how satisfied they were with the services they received. These surveys are critical to WestCare’s program design process because the information they collect can help program leadership to identify any shortcomings the program may have, discover any unmet needs that participants may have, and determine areas for improvement.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
h. Collaboration
Briefly describe any collaboration efforts with other organizations for this project/program or related initiatives.
Collaborating Organization Description of Collaboration Marjaree Mason Center domestic violence counseling
Turning Point of Central
California
emergency shelter, bridge housing
Wings Advocacy Fresno furniture and household goods
RH Community Builders emergency shelter
Mental Health Systems emergency shelter, bridge housing Kingsview Behavioral Health
Systems
street outreach
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
4. Project/Program Budget
a. Activity Budget by Funding Type
Please provide a high-level summary of the total budget by federal and nonfederal funds.
Proposed Activity Budget Amount
Total ESG, HOPWA, and/or CDBG Funds Requested $1,098,623 Total Other Federal Funds (do not include the above funds on this line)
$0
Total Non-Federal Funds $248,958
Total Proposed Activity Budget $1,347,581
b. List of Funding Sources
Provide all planned funding anticipated/ committed for this activity for FY 2023- 2024. If the organization has received funding commitment letters, please attach as an exhibit to this application.
Funding Source (Name of
Funder)
Name of
Funding
Program (if
applicable)
Dollar Amount
Commitment
Status
(Committed
or Pending)
If Pending,
Expected
Commitment
Date
Fresno County HEAP $248,958 committed N/A
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
c. Activity Budget Summary and Narrative
Please complete Exhibit A – Operating Budget Summary.
The above referenced Budget worksheet is available in Excel format at www.fresno.gov/housing under ‘Notices of Funding Available.’ Please complete Exhibit B – Budget Narrative to provide a brief explanation of the expenses included in the budget.
d. Prior-Year Financial Statement
For existing programs, please attach a financial statement labeled as Exhibit B for the proposed program for the last full operating year. Failure to provide the financial statement will result in disqualification.
Attachments to Part B Application:
EXHIBIT A – OPERATING BUDGET SUMMARY
EXHIBIT B – BUDGET NARRATIVE
EXHIBIT C – HOMELESS AND HOMELESSNESS PREVENTION ESG SOURCES
AND AMOUNTS OF MATCH AND MATCH QUESTIONAIRE
EXHIBIT D – PRIORYEAR AUDITED FINANCIAL STATEMENT INCLUDING
STATEMENT OF ACTIVITIES, STATEMENT OF FINANCIAL POSITION AND
STATEMENT OF CASH FLOWS (REQUIRED WHEN TOTAL FEDERAL GRANT AWARDS EQUALED OR EXCEEDED $750,000 DURING THE ANNUAL AUDIT PERIOD); OR
EXHIBIT E – PRIOR-YEAR UNAUDITED FINANCIAL STATEMENT WHEN TOTAL
FEDERAL GRANT AWARDS FOR THE ANNUAL AUDIT PERIOD WAS LESS THAN $750,000
Optional Additional Exhibits:
EXHIBIT F – FUNDING COMMITMENT LETTERS (IF AVAILABLE)
EXHIBIT G – LETTERS OF SUPPORT (OPTIONAL-MAXIMUM 2)
EXHIBIT H – SERVICE AREA MAP (REQUIRED IF NOT DESCRIBED IN 2.d.) Salaries & Wages Fringe Benefits
Totals
(City of Fresno HUD
Funds)
Other Federal
Funds State Funds Local Govm'tFunds
Private / Donor
Funds
Other Funds
(specify)
Salaries/Wages (Specify each position; add additional rows as needed) Direct Service Personnel:
Director of Housing Services @ 38% 28,500.00 6,669.00 35,169.00 35,169.00 70,338.00 Case Manager 1.0 FTE 49,920.00 11,681.28 61,601.28 61,601.28 123,202.56 ‐ ‐ ‐ ‐ ‐ ‐ Administrative Personnel:
‐ ‐
‐ ‐
‐ ‐
Independent Contractors / Consultants:
‐ ‐
‐ ‐
TOTAL PERSONNEL BUDGET $ 78,420.00 $ 18,350.28 $ 96,770.28 $ ‐ $ ‐ $ 96,770.28 $ ‐ $ ‐ $ 193,540.56 Occupancy, Supplies, and Other Operating
Communications $ 1,540.00 1,540.00 1,540.00 3,080.00 Office Supplies 822.94 822.94 822.94 1,645.88 Computers/Copier/Equipment 760.00 760.00 760.00 1,520.00 Repairs/Maintenance/Lease/Utilities 2,300.00 2,300.00 2,300.00 4,600.00 Staff Recruitment 200.00 200.00 200.00 400.00 Mileage/Fuel/Vehicle Maintenance 2,400.00 2,400.00 2,400.00 4,800.00 Staff Travel/Training 300.00 300.00 300.00 600.00 ‐ ‐
Other (Specify) ‐
TOTAL OCCUPANCY, SUPPLIES AND
OTHER OPERATING BUDGET $ 8,322.94 $ 8,322.94 $ ‐ $ ‐ $ 8,322.94 $ ‐ $ ‐ $ 16,645.88 INDIRECT COSTS (Select 1 indirect rate Only)
Approved Cost Allocation Plan Rate 17% 36,173.49 36,173.49 36,173.49 72,346.98 De minimus 10 % Rate ‐ TOTAL INDIRECT COST BUDGET 36,173.49 $ 36,173.49 $ ‐ $ ‐ $ 36,173.49 $ ‐ $ ‐ $ 72,346.98 Rapid Re‐housing
Rental Assistance 67,932.00 67,932.00 67,932.00 135,864.00 Security & Utility Deposits 22,644.00 22,644.00 22,644.00 45,288.00 Utility Payments 1,200.00 1,200.00 1,200.00 2,400.00 Homeless Prevention
Rental Assistance 10,500.00 10,500.00 10,500.00 21,000.00 Security & Utility Deposits 2,516.00 2,516.00 2,516.00 5,032.00 Utility Payments 2,900.00 2,900.00 2,900.00 5,800.00 Loans to Beneficiaries ‐ Other (Specify) ‐ TOTAL PROGRAM EXPENSE BUDGET 107,692.00 $ 107,692.00 $ ‐ $ ‐ $ 107,692.00 $ ‐ $ ‐ $ 215,384.00 TOTAL PROJECT BUDGET $ 230,608.43 $ 18,350.28 $ 248,958.71 $ ‐ $ ‐ $ 248,958.71 $ ‐ $ ‐ $ 497,917.42 * Please revise this form and annotate budget items as needed All applicants are required to submit a copy of their organization’s operating budget.
CITY OF FRESNO
OPERATING BUDGET SUMMARY (non‐capital projects)
Budgeted Position (Personnel) or
Category (Operations)
City of Fresno HUD Funds Other Funds for Project
Project Totals (All
Funds)
Rental Assistance Funds to provide assistance to clients for short‐term, medium‐term, or one‐time payment for rent in arrears. WestCare California, Inc. (WCCA) will assist 2 clients @ 12 months, 2 clients @ 9 months and 2 clients @ 6 months. Estimated at $5,661 per month x 12 months or $67,932 per year.
Security & Utility Deposits Funds to assist clients with security and/or utility deposit assistance. Estimated at $1,887 per month x 12 months or $22,644 per year.
Utility Payments Funds to assist clients with utility payments. Estimated at $100 per month x 12 months or $1,200 per year.
WestCare RRH Operating
Case Manager Case Manager will provide individuals and their families with case management to ensure they transition to independence. This will include arrangement, coordination, monitoring, and delivery of services related to meeting the housing needs of clients and helping them obtain housing stability. The Case Manager will meet with each client at least once weekly to provide support and assistance towards achieving each Individualized Service Plan. This 1.0 FTE position will be paid @ $24/hour.
Director of Housing Services The Director of Housing Svcs will be responsible for the oversight of the program and scope of work. This position will approve all purchases to ensure costs are within budget, monitor data for contract compliance, submit performance reports, and will provide supervision through direct observation and follow‐up training. This will be calculated at 38% of the WestCare salary paid to this position.
Fringe Benefits Calculated at 23.4% of total salaries
Communications For the connectivity fees associated with the program cell phones to be used by WestCare ESG program staff, desk phone, internet, Fedex costs, etc. Calculated at $128.33 per month x 12 months.
Office Supplies This line item represents the cost of consumables such as copy paper, pens, clipboards, toner, tape, staples, etc., for the program. Calculated at an estimated $68.58 per month x 12 months.
Computers/Copier/Equipment This line item represents the cost to lease one printer/fax/scanner, computer supplies, etc. Calculated at $63.33 per month for 12 months.
Repairs/Maintenance/Lease/Utilities This line item represents the cost of the lease, electricity, natural gas, and other utility costs allocated per the rented space to be used by the program; and for the day‐to‐day repairs of the program facility. Calculated at an estimated $191.67 per month x 12 months.
Staff Recruitment This line item represents the recruiting of staff which includes advertising, medical exams, lab fees, etc. Calculated @ $200 per year.
Staff Mileage/Fuel/Vehicle Maintenance For mileage reimbursements due to WestCare ESG staff for use of their personal vehicle for program related travel. Calculated at an estimated $200.00 per month x 12 months.
Staff Travel/Training The program will offer CSH ‐ Supportive Housing training at a cost of $300 per year.
HP Financial Assistance
Rental Assistance Funds to provide assistance to seven (7) HP clients for payment of arrears which will assist in client's ability to remain housed. Estimated at $1,500 per client over 12 months.
Security & Utility Deposits Funds to assist clients with security and/or utility deposit assistance. Estimated at $209.67 per month x 12 months.
Homelessness Prevention
WestCare California, Inc.
City of Fresno ESG (Project Unite)
CoF PY 23‐24 / WCCA FY 24‐25
Rapid Re‐Housing
WestCare Rapid Rehousing Financial Assistance
Rapid Re‐Housing Relocation & Stabilization
Utility Payments Funds to assist clients with utility payment arrears. Estimated at $241.67 per month x 12 months.
N/A No funding requested with this NOFA
Indirect Costs Indirect costs are comprised of administrative personnel and other such costs that support the program and are not covered in the line item budget. These costs include, but are not limited to, management, accounting, payroll, human resources, and technical support. Calculated at WestCare's Federally Approved indirect rate of 17% ($36,173.49) based on direct program costs.
Street Outreach & Emergency Shelter
Indirect Costs
1 2
3 4
5 Fresno COunty HEAP Home Sweet Home RRH - A-22-293 248,958.71 248,958.71
x
x
x
x
x
x
WESTCARE CALIFORNIA, INC.
FINANCIAL STATEMENTS
AND SUPPLEMENTAL INFORMATION
JUNE 30, 2021
WESTCARE CALIFORNIA, INC.
REPORT ON FINANCIAL STATEMENTS
JUNE 30, 2021
TABLE OF CONTENTS
PAGE
Independent Auditor’s Report 1-2
Financial Statements:
Statement of Financial Position 3
Statement of Activities 4
Statement of Cash Flows 5
Statement of Functional Expenses 6
Notes to the Financial Statements 7-13
Supplemental and Other Information:
Schedule of Expenditures of Federal Awards 14
Notes to Schedule of Expenditures of Federal Awards 15
Schedule of Findings and Questioned Costs 16
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 17-18
Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance 19-20
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WestCare California, Inc. as of June 30, 2021 and the change in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Supplemental and Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedules of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 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.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2021, on our consideration of WestCare California, Inc.’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 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 WestCare California, Inc.’s internal control over financial reporting and compliance.
Fresno, California
December 15, 2021
2 WESTCARE CALIFORNIA, INC.
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2021
ASSETS
Cash and Cash Equivalents $ 6,911
Grant Contracts Receivable 9,421,691
Prepaid Expenses 205,949
Cash Restricted for Client Funds 272,983
Cash Restricted for Program Funds 1,208,323
Due from Related Organization 2,504,457
Property and Equipment, Net 4,567,553
Total Assets $18,187,867
LIABILITIES
Accounts Payable and Accrued Expenses $ 4,429,244
Accrued Salaries and Related Expenses 1,458,502
Due to Clients (Contra) 247,089
Deferred Revenue 3,599,578
Total Liabilities $ 9,734,413
NET ASSETS
Without Donor Restrictions 8,453,454
Total Net Assets 8,453,454
Total Liabilities and Net Assets $18,187,867
See accompanying notes to financial statements
3 WESTCARE CALIFORNIA, INC.
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2021
Change in Net Assets Without Donor Restrictions
Revenues and Other Support
Federal Contract Revenue $ 8,754,067
State Contract Revenue 5,427,937
STOP Contract 9,451,423
STOP Aftercare 17,491,372
County Contract Revenue 11,005,789
City Contract Revenue 1,068,625
Other Contract Revenue 518,086
Client Fees 1,486,813
Donations and Gifts 12,392
Stimulus Funds 702,775
Other Revenue 18,098
Total Revenues and Other Support
Without Donor Restrictions $ 55,937,377
Expenses
Program Services
Grants and Program Support 47,163,977
Total Program Services 47,163,977
Supporting Services
General and Administrative 8,449,650
Total Supporting Services 8,449,650
Total Expenses 55,613,627
Change in Net Assets Without Donor Restrictions 323,750 Net Assets, Beginning of Year 8,129,704
Net Assets, End of Year $ 8,453,454
See accompanying notes to financial statements
4 WESTCARE CALIFORNIA, INC.
STATEMENT OF CASH FLOWS
JUNE 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in Net Assets Without Donor Restrictions $ 323,750 Adjustments to Reconcile Change in Net Assets
To Net Cash Provided by Operating Activities:
Depreciation 330,962
(Increase) or Decrease in:
Grants Receivable (2,727,082)
Prepaid Expenses 42,851
Increase or (Decrease) in:
Accounts Payable and Accrued Expenses 319,346
Accrued Salaries and Related Expenses 106,268
Clients Funds (Contra) 42,177
Deferred Revenue 2,850,404
Net Cash Provided/(Used) in Operating Activities $ 1,288,676 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment (484,322)
Net Cash Provided/(Used) in Investing Activities (484,322) CASH FLOWS FROM FINANCING ACTIVITIES:
Advances to Related Organization (1,284,988)
Net Cash Provided/(Used) in Financing Activities ( 1,284,988) Net Increase (Decrease) in Cash, Cash Equivalents, and
Restricted Cash (480,634)
Beginning Cash, Cash Equivalents, and Restricted Cash 1,968,851 Ending Cash, Cash Equivalents, and Restricted Cash $ 1,488,217 Supplemental Disclosure:
Interest Paid $ --
See accompanying notes to financial statements
5 P R O G R A M S E R V I C E S
GENERAL
FEDERAL STATE LOCAL OTHER PROGRAM TOTAL AND TOTAL
GRANTS GRANTS GRANTS GRANTS SUPPORT PROGRAM FUNDRAISING ADMINISTRATIVE EXPENSES
SALARIES AND RELATED EXPENSES
Salaries $ 2,429,388 $ 6,046,349 $ 7,573,339 $ 193,608 $ 545,711 $ 16,788,395 $ - $ 642,652 $ 17,431,047 Payroll taxes and employee benefits 394,229 519,168 740,058 14,074 98,906 1,766,435 - 2,360,490 4,126,925 TOTAL SALARIES AND RELATED EXPENSES 2,823,617 6,565,517 8,313,397 207,682 644,617 18,554,830 - 3,003,142 21,557,972
OTHER EXPENSES
Building occupancy 216,944 719,527 692,580 10,716 28,342 1,668,109 58,915 1,727,024 Travel 9,778 42,881 43,290 211 1,219 97,379 13,180 110,559 Equipment costs 45,082 264,853 91,415 79,165 7,853 488,368 40,568 528,936 Repair and Maintenance 31,806 128,775 121,672 2,409 13,792 298,454 20,467 318,921 Vehicles 168,898 145,824 184,394 25,636 1,841 526,593 6,557 533,150 Food costs 19,845 467,317 325,640 14,958 5,689 833,449 188 833,637 Program Assistance and Supplies 3,906,011 722,151 1,129,558 90,924 34,465 5,883,109 20,412 5,903,521 Purchased Aftercare 17,491,372 17,491,372 - 17,491,372
Interest and Taxes 16,363 5,282 4,103 1,895 474 28,117 31,132 59,249 Operating supplies and expenses 121,647 269,211 236,522 9,960 33,894 671,234 673,024 1,344,258 Professional services 30,670 115,680 290,514 2,400 600 439,864 214,525 654,389 Management/Administration - - - - - - 4,219,677 4,219,677 TOTAL OTHER EXPENSES 4,567,044 20,372,873 3,119,688 238,274 128,169 28,426,048 - 5,298,645 33,724,693
TOTAL EXPENSES BEFORE DEPRECIATION
7,390,661 26,938,390 11,433,085 445,956 772,786 46,980,878 - 8,301,788 55,282,665 Depreciation 1,184 39,755 129,083 - 13,077 183,099 - 147,863 330,962 TOTAL EXPENSES $ 7,391,845 $ 26,978,145 $ 11,562,168 $ 445,956 $ 785,863 $ 47,163,977 $ - 8,449,650 $ 55,613,627 See accompanying notes to financial statements
WestCare California, Inc.
STATEMENT OF FUNCTIONAL EXPENSES
Year Ended June 30, 2021
6 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – ORGANIZATION AND NATURE OF ACTIVITIES:
Organization and Nature of Activities: WestCare California, Inc. is a tax exempt, nonprofit corporation governed by a volunteer board of directors incorporated in 1999 whose purposes include, but are not limited to the following:
A. To promote public awareness about chemical dependency and related issues and problems; and,
B. To promote recovery from chemical dependency and or related illnesses, through developing, establishing and/or maintaining of centers for the rehabilitation of individuals and their families.
C. To promote the health and well being of all citizens.
The Organization provides residential and out-patient rehabilitation programs, criminal justice programs, health related and a variety of prevention programs and services all of which are related to the purposes for which it is established.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting: The accompanying financial statements of the Organization have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America.
Basis of Presentation: Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets of the Organization and changes therein are classified as follows:
Net assets without donor restrictions: Net assets that are not subject to donorimposed restrictions and may be expended for any purpose in performing the primary objectives of the Organization. These net assets may be used at the discretion of Management and the Board of Directors.
Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of the Organization or by the passage of time.
Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity.
7 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Measure of Operations: The statement of activities reports all changes in net assets, including changes in net assets from operating and non-operating activities. Operating activities consist of those items attributable to the Organization’s ongoing activities.
Non-operating activities are limited to resources that generate return from investments and other activities considered to be of a more unusual or nonrecurring nature.
Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures contained in the financial statements. Actual results could differ from those estimates.
Cash and Cash Equivalents: For purposes of the statement of cash flows, the Organization considers investments available for current use with an initial maturity of three months or less to be cash equivalents.
Concentrations of Credit Risk: Financial instruments that potentially subject the Organization to concentration of credit risk are cash and receivables. Concentration of credit risk with respect to receivables is limited because a substantial portion of these balances are due from federal and state governmental agencies. Management believes the Organization is not exposed to any significant credit risk on cash. The Organization maintains its cash in various bank accounts that, at times, may exceed federally insured limits. These accounts have been placed with high credit quality financial institutions.
On June 30, 2021, the Organization had cash in excess of the FDIC insured limit in the amount of $497,533.
Receivables: Receivables are stated at the amount management expects to collect from balances outstanding at year end. The receivables are primarily contracts and/or grants from funding sources for services performed under cost reimbursement contracts. It is the practice of the Organization to record an allowance for doubtful accounts. Bad debts are charged to the allowance account as incurred. Based on management’s assessment of receivables it has concluded that an allowance is not necessary on June 30, 2021. Balances that are still outstanding after management has used reasonable collection efforts are written off to bad debt expense.
Revenue and Revenue Recognition: Revenue is recognized when earned. Program service fees and payments received in advance are deferred to the applicable period in which the related services are performed, or expenditures are incurred, respectively.
Contract Revenue: Revenue under some third-party payor agreements is subject to audit and retroactive adjustments. Provisions for estimated third-party payor settlements are provided in the period the related services are rendered, if determinable. 8 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Contributions: Contributions are recorded as income at the estimated value at date of receipt as net assets without donor restrictions or net assets with donor restrictions, depending on the existence and/or nature of any donor-imposed restrictions. No donations with donor-imposed restrictions have been received.
Conditional Promises to Give: Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return, are not recognized until the conditions on which they depend have been substantially met. Conditional gifts received prior to the satisfaction of conditions are recorded as refundable advances.
Donated Services and In-Kind Contributions: Volunteers contribute significant amounts of time to our program services, administration, and fundraising and development activities; however, the financial statements do not reflect the value of these contributed services because they do not meet recognition criteria prescribed by generally accepted accounting principles. Donated goods are recorded at fair value at the date of donation.
Donated services are recorded at the respective fair values of the services received. No significant contributions of such goods or services were received during the year ended June 30, 2021.
Due to/from related parties: Amounts as due to/from related parties, included in the accompanying statements of financial position, arise principally from the collaborative activities between the affiliates to further the mission of the Organization.
Property and Equipment: The Organization capitalizes property and equipment over $5,000. Lesser amounts are expensed. Purchased property and equipment is capitalized at cost. Donations of property and equipment are recorded as contributions at their estimated fair value. Such donations are reported as unrestricted contributions unless the donor has restricted the donated assets to a specific purpose. The cost of maintenance and repairs is charged to expense as incurred, significant renewals and betterments are capitalized. Property and equipment are depreciated using the straightline method over the estimated useful lives of the assets.
Compensated Absences: The Organization’s policy allows employees to accumulate vacation and sick leave based on the length of service, position, and other factors.
Accrual of vacation time is included in the accompanying financial statements. The total amount accrued for vacation on June 30, 2021 was $732,605.
Income Taxes: The Organization qualifies as a not-for-profit organization as described in Section 501 (c)(3) of the Internal Revenue Code and is tax exempt from federal and state income taxes, therefore no provisions for income taxes have been made.
Management is of the opinion that there is no unrelated business income subject to taxation. Management is also of the opinion that there are no material uncertain tax positions. All tax returns have been appropriately filed by the Organization. 9 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Functional Expenses: The financial statements report certain categories of expenses that are attributable to more than one program or supporting function. Therefore, these expenses require allocation on a reasonable basis that is consistently applied. The costs of providing the various programs and supporting services have been summarized on a functional basis in the statement of activities. The statement of functional expenses presents the natural classification detail of expenses by function. Such expenses are charged to grant programs and supporting services on the basis of program costs.
General and administrative costs include those expenses that are not directly identifiable with any specific program but provide for the overall support of the Organization. Accordingly, certain costs have been allocated among program services and supporting services benefited. Such allocations are determined by management on an equitable basis.
Salaries and benefits are charged directly to the program for which work has been done based on time and effort. Other expenses and overhead costs are based on staff allocation to functional areas.
NOTE 3 – CASH AND CASH EQUIVALENTS:
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the amounts shown in the statement of cash flows:
Cash and Cash Equivalents $ 6,911
Cash Restricted for Client Funds 272,983
Cash Restricted for Program Funds 1,208,323
Total Cash, Cash Equivalents, and Restricted Cash
shown in the Statement of Cash Flows $1,488,217
NOTE 4 – RESTRICTIONS ON ASSETS:
Restrictions, if any, on assets as of June 30, 2021, are related to grant awards and/or lending agreements. Such assets must be used in accordance with the purposes established by laws and regulations of the grants or agreements in contrast with unrestricted funds over which the governing board remained full control to use in achieving any of its organizational purposes.
Separate cash accounts are maintained as required by grant and/or lending agreements. The Organization also holds cash in trust for participants in various programs.
10 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 5– LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS:
The following reflects the Organization’s financial assets available within one year of the statement of financial position date. There are no amounts reduced and not available for general use because of donor-imposed restrictions or long-term investments.
Cash and cash equivalents $ 6,911
Grant contracts receivable 9,421,691
Total available for general expenditures $9,428,602
As part of the Organization’s liquidity management, it utilizes a zero-balance account (zba) with WestCare Foundation, Inc., a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented. This cash pooling system is designed to leave in the current accounts of the subsidiaries the minimum amounts to be able to deal with their debts contracted. The advantage of this system is to centralize the cash to be able to obtain better rates. In addition, the Organization transfers amounts as needed to meet cash flow needs through a related affiliate, WestCare Foundation, Inc.
NOTE 6 – PROPERTY AND EQUIPMENT, NET:
Property and equipment, net consisted of the following on June 30, 2021:
Land $ 391,095
Buildings and Improvements 5,914,618
Leasehold Improvements 1,261,595
Furniture and Fixtures 359,470
Computer Equipment 122,759
Vehicles 649,894
Construction in Progress 18,528
8,717,959
Less: Accumulated Depreciation (4,150,406)
Total Property and Equipment, Net $4,567,553
For the year ended June 30, 2021, depreciation expense totaled $330,962.
NOTE 7 – EMPLOYEE BENEFIT PLAN:
The Organization has a 401(k)-retirement plan covering eligible employees held with Voya Financial with a Safe Harbor Match. The Organization’s match is 3% of each qualified employee’s basic contribution plus an additional $.50 for each $1 contributed for the next 2% earnings. Plan contribution by the Organization for the year ended June 30, 2021 was $194,256.
11 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 8 – COMMITMENTS AND CONTINGENCIES:
Operating Leases:
As of June 30, 2021, the Organization had entered into various non-cancellable operating lease agreements for real property. The approximate minimum future commitments on an annual basis are as follows: 2021 $510,488, 2022 $350,533, 2023 $320,053, 2024 $280,484, 2025 $114,828 and thereafter $-0-.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the statement of financial position for most leases with a term longer than 12 months. The effective date for this standard has been delayed to reporting periods beginning after December 15, 2021.
Contingencies:
Federal Grants – The Organization receives financial assistance from the federal government in the form of grants and entitlements. Receipt of grants is generally conditioned upon compliance with terms and conditions of the grant agreements and applicable federal laws and regulations, including the expenditure of resources for eligible purposes. Accordingly, expenditures financed by these programs are subject to financial and compliance audits by the grantor agencies, which could result in request for reimbursement by the grantor agencies for expenditures, if disallowed by the granting agencies, cannot be determined at this time. Management believes that such disallowances, if any, will not have a material adverse effect on the financial position of the Organization.
NOTE 9 – DEFERRED REVENUE:
Deferred revenue consists of the following amounts as of June 30, 2021:
Donation from Bezos Day one Families for Homeless $2,501,254 Contra Costa – COVID Rate 317,854
Kaiser Madera Street2Home 150,000
BSCC 143,000
St. Agnes Medical Center 116,744
Sierra Health Foundation to Support Telehealth 102,044
Other 268,682
$3,599,578
NOTE 10 – ECONOMIC DEPENDENCY:
The Organization receives a significant portion of its support and revenues from contracts and/or agreements with agencies of the Government of the United States. The Organization’s ability to continue operating is predicated on the government’s continued support and funding of its programs. The continuation of program services in the subsequent year is expected based on contract renewals and continuations received to date. A significant reduction in the level of this funding, if this were to occur, could have an adverse effect on the programs and activities.
12 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 11 – RELATED PARTY TRANSACTION:
WestCare Foundation, Inc. is a managing and governing oversight organization for WestCare California, Inc. During the year ending June 30, 2021, WestCare Foundation, Inc. received management fees for general and administrative expenses of $4,219,677 from WestCare California, Inc.
In addition, WestCare California, Inc. has advanced funds as of June 30, 2021 to WestCare Foundation, Inc. for $2,504,457.
NOTE 12 – COVID-19 PANDEMIC:
The COVID-19 pandemic, whose effects first became known in January 2020, is having a broad and negative impact on commerce and financial markets around the world. The United States and global markets experienced significant declines in value resulting from uncertainty caused by the pandemic. The Organization is closely monitoring its liquidity and is actively working to minimize the impact of these declines. The extent of the impact of COVID-19 on the Organization’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its impacts on the Organization’s customers, employees, and vendors, all of which at present, cannot be determined. Accordingly, the extent to which COVID-19 may impact the Organization’s financial position and changes in net assets and cash flows is uncertain and the accompanying financial statements include no adjustments relating to the effects of this pandemic.
NOTE 13 – SUBSEQUENT EVENTS:
The Organization has evaluated subsequent events through December 15, 2021, the date which the financial statements were available to be issued and has determined that there were no events occurring during that period that required disclosure to the accompanying financial statements.
END OF NOTES TO THE FINANCIAL STATEMENTS
13 WESTCARE CALIFORNIA, INC.
SUPPLEMENTAL MATERIAL
Pass through Federal Federal Transfers to
Identifying # CFDA# Expenditures Subrecipients
US Department of Housing & Urban Development
Community Development Block Grants/Entitlement Grants
Pass Through Award(s):
City of Fresno - CDBG_Homeless Prevention 2019-096 14.218 18,156 Total Community Development Block Grants/Entitlement Grants 18,156 - Emergency Solutions Grant Program
Pass Through Award(s):
Fresno County - ESG Rapid-Rehousing A-18-542 14.231 57,753 - Fresno County - ESG MAP (CA) A-18-338 14.231 125,779 -
City of Fresno - ESG Project Unite (CA) 2019-096 14.231 221,515 Total Emergency Solutions Grant Program 405,047 -
Housing Opportunities for Persons with AIDS (HOPWA)
Pass Through Award(s):
City of Fresno (CA) 2019-096 14.241 516,657 90,000
City of Fresno (CA) - Cares Act 2019-096 14.241 87,020 - Housing Opportunities for Persons with AIDS (HOPWA) 603,677 90,000 Continuum of Care Program
Direct Award(s):
Continuum of Care Program (CA)-Project LiftOff 14.267 349,872 224,798 Continuum of Care Program (CA)-Coordinated Entry 14.267 397,554 - Total Continuum of Care Program 747,426 224,798
Department of Veterans Affairs
VA Homeless Providers Grant and Perdiem Program
Direct Award(s):
VA Capital Grant & Per Diem (CA) 64.024 632,228
Veterans Grant Program-Case Management 64.024 80,467 -
Total VA Homeless Providers Grant and Perdiem Program 712,695 - VA Supportive Services for Veteran Families Program
Direct Award(s):
VA Supportive Services for Veterans Families (CA) 64.033 1,492,901 - VA Supportive Services for Veterans Families (CA) - COVID 19 - CARES Act 1.0 64.033 1,017,230 - VA Supportive Services for Veterans Families (CA) - COVID 19 - CARES Act 2.0 64.033 3,745,596 - Total VA Supportive Services for Veteran Families Program 6,255,727 - US Department of Health & Human Services:
Substance Abuse and Mental Health Services Projects of Regional and National Significance Direct Award(s):
SAMHSA BEAT HIV/AIDS (CA) 93.243 538,864 -
SAMHSA Opening Doors to Housing and Wellness 93.243 315,730 - Total Substance Abuse and Mental Health Services Projects of Regional and National Significance 854,594 - Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Direct Award(s):
Ryan White Title III HIV Capacity Development and Planning Grant 93.918 17,535 - Total Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease 17,535 - Block Grants for the Prevention and Treatment of Substance Abuse Pass Through Award(s):
US Probation & PreTrial (CA) 0972-2016-19 93.959 152,695 - Total Block Grants for the prevention and Treatment of Substance Abuse 152,695 - Department of Homeland Security
Emergency Food and Shelter National Board Program
Pass Through Award(s):
United Way (CA) 97.024 12,427 -
Total Emergency Food and Shelter National Board Program 12,427 - Total Expenditures of Federal Awards $ 9,779,979 $ 314,798 WESTCARE CALIFORNIA, INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
See accompanying notes to financial statements
14 WESTCARE CALIFORNIA, INC.
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
NOTE A - BASIS OF PRESENTATION:
The accompanying schedule of expenditures of federal awards include the federal award activity of WestCare California, Inc. under programs of the federal government for the year ended June 30, 2021. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of WestCare California, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of WestCare California, Inc.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE C – INDIRECT COST RATE:
WestCare California, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. WestCare California, Inc. has a provisional indirect rate agreement for 26% for the year ended June 30, 2021. 15 WESTCARE CALIFORNIA, INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FEDERAL PROGRAMS
FOR THE YEAR ENDED JUNE 30, 2021
Section I – Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting:
• Material weakness(es) idenitifed? No
• Significant deficiency(ies) identified? None reported Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
• Material weakness(es) identified? No
• Significant deficiency(ies) identified? None reported Types of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with CFR 200.516(a)? No
Identification of major programs:
Federal Program or Cluster Federal CFDA No.
Emergency Solutions Grant 14.231
Continuum of Care 14.267
Substance Abuse and Mental Health Services 93.243
Dollar threshold used to distinguish between type A & type B Programs:
Federal Programs: $750,000
Auditee qualified as low-risk auditee pursuant to Uniform Guidance: Yes
Section II – Financial Statement Findings
None reported
Section III – Federal Award Findings and Questioned Costs None reported
Section IV – Other Issues/Prior Year Audit Findings
No management letter is required because there were no findings required to be reported in the management letter.
No Summary Schedule of Prior Audit Findings is required because there were no prior audit findings.
No Corrective Action Plan is required because there were no findings required to be reported. 16 Compliance and Other Matters
As part of obtaining reasonable assurance about whether WestCare California, Inc.’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Fresno, California
December 15, 2021
18 Opinion on Each Major Federal Program
In our opinion, WestCare California, Inc. complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of WestCare California, Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered WestCare California, Inc.’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of WestCare California, Inc.’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with the type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Fresno, California
December 15, 2021
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Fresno, CA
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AMENDMENT I TO AGREEMENT
THIS AMENDMENT I TO AGREEMENT (hereinafter “Amendment”) is made and entered into this ______ day of ___________, 2022, by and between the COUNTY OF FRESNO, a Political Subdivision of the State of California, hereinafter referred to as “COUNTY,” and WestCare California, Inc., a California Non-Profit Corporation, whose address is 1900 N. Gateway Blvd., Suite 100, Fresno, CA 9327, hereinafter referred to as “SUBRECIPIENT”.
W I T N E S S E T H:
WHEREAS, the parties entered into that certain Agreement, identified as COUNTY Agreement No.
A-19-336, effective July 9, 2019, for rapid rehousing homeless services for COUNTY’s Departments of Social Services (DSS); and
WHEREAS, the COUNTY is the Administrative Entity for the Homeless Housing, Assistance and Prevention (HHAP) grant funds awarded to the Fresno Madera Continuum of Care (FMCoC), by the California Business Consumer Services and Housing (BCSH) Agency, as authorized by AB101; and WHERAS, the COUNTY for itself, was awarded HHAP grant funds by BCSH Agency; and WHERAS, COUNTY issued Request for Proposal (RFP) No. 19-058 for Rapid Rehousing and Navigation Services within the County of Fresno and County of Madera; and WHEREAS, SUBRECIPIENT responded to said RFP and was selected to provide services in accordance with the RFP and SUBRECIPIENT’s submitted response; and WHERAS, the parties entered into that certain Agreement, identified as COUNTY Agreement No. 19-336, effective July 9, 2019; and
WHEREAS, the COUNTY continues to have a significant population of homeless individuals in need of rapid rehousing services; and
WHEREAS, both parties now desire to amend Agreement No. 19-336 regarding changes as stated below.
NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions herein contained, the parties hereto agree as follows:
1. That County Agreement No. 19-336, Page one (1), beginning on line twenty-one (21) 21st June
Agreement No. 22-293
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Fresno, CA
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with the number “1” and ending on page three (3) line fourteen (14) with the date “June 30, 2022”, be deleted and the following inserted into its place:
“1. OBLIGATIONS
A. SUBRECIPIENT shall perform all services and fulfill all responsibilities as identified in COUNTY’s Request for Proposal (RFP) No. 19-058, dated March 8, 2019, and Addendum No. One (1) to COUNTY’s RFP No. 19-058, dated March 20, 2019, collectively hereinafter referred to as COUNTY’s Revised RFP No. 19-058 and SUBRECIPIENT’s response to said Revised RFP, all incorporated herein by reference and made part of this Agreement.
B. SUBRECIPIENT shall perform all services set forth in Revised Exhibit A, Summary of Services, attached hereto and by this reference incorporated herein.
C. SUBRECIPIENT shall provide services pursuant to the staffing pattern and program expenses detailed in Revised Exhibit B, Budget, attached hereto and by this reference incorporated herein.
D. SUBRECIPIENT shall maintain membership in the FMCoC and participate in Coordinated Entry throughout the term of this Agreement, as described in Revised Exhibit A. If, for any reason, this status is not maintained, the COUNTY may terminate this Agreement pursuant to Section Three (3) of this Agreement.
E. COUNTY has entered into an agreement with the State of California for HEAP funding (Agreement No. 18-HEAP-0027), a copy of which is attached hereto as Exhibit C and is incorporated herein by this reference. Services provided by SUBRECIPIENT under this Agreement shall be funded with HEAP funding and, therefore, SUBRECIPIENT shall be aware of, agree to, and comply with all State requirements governing the use of HEAP funds; and all conditions in Exhibit C. Failure to comply with these requirements and conditions may result in termination of this Agreement pursuant to Section Three (3) of this Agreement. Required conditions include, but are not limited to:
1) Perform the work in accordance with Federal, State and Local housing and building codes, as applicable.
2) Maintain at least the minimum State-required worker’s compensation for those employees who will perform the work or any part of it.
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3) Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the SUBRECIPIENT or any Subcontractor in performing the Work or any part of it.
4) Agree to include all the terms of this Agreement and Exhibit C in each subcontract.
F. COUNTY as the Administrative entity for California Emergency Solutions and Housing (CESH) Program awarded to FMCoC, has entered into an agreement with the State of California for Round 1 of CESH funding (Agreement 19-452), a copy of which is attached hereto as Exhibit D and is incorporated herein by this reference. Services provided by SUBRECIPIENT under this Agreement shall be funded with CESH funding and, therefore, SUBRECIPIENT shall be aware of, agree to, and comply with all State requirements governing the use of CESH funds; and all conditions in Exhibit D. Failure to comply with these requirements and conditions may result in termination of this Agreement pursuant to Section Three (3) of this Agreement.
G. COUNTY as the Administrative entity for California Emergency Solutions and Housing (CESH) Program awarded to FMCoC, has entered into an agreement with the State of California for Round 2 of CESH funding (Agreement 20-158), a copy of which is attached hereto as Exhibit D-1 and is incorporated herein by this reference. Services provided by SUBRECIPIENT under this Agreement shall be funded with CESH funding and, therefore, SUBRECIPIENT shall be aware of, agree to, and comply with all State requirements governing the use of CESH funds; and all conditions in Exhibit D-1. Failure to comply with these requirements and conditions may result in termination of this Agreement pursuant to Section Three (3) of this Agreement.
H. COUNTY, on its own behalf, has entered into an agreement with the State of California for Round 1 of HHAP grant funds awarded to COUNTY (Agreement No. 20-196), a copy of which is attached hereto as Exhibit E and is incorporated herein by this reference. Services provided by SUBRECIPIENT under this Agreement shall be funded with HHAP funding and, therefore, SUBRECIPIENT shall be aware of, agree to, and comply with all State requirements governing the use of
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HHAP funds; and all conditions in Exhibit E. Failure to comply with these requirements and conditions may result in termination of this Agreement pursuant to Section Three (3) of this Agreement.
I. COUNTY, as the Administrative Entity for HHAP grant funds awarded to FMCoC, has entered into an agreement with the State of California for Round 1 HHAP funding (Agreement No. 20- 197), a copy of which is attached hereto as Exhibit F and is incorporated herein by this reference.
Services provided by SUBRECIPIENT under this Agreement shall be funded with HHAP funding and, therefore, SUBRECIPIENT shall be aware of, agree to, and comply with all State requirements governing the use of HHAP funds; and all conditions in Exhibit F. Failure to comply with these requirements and conditions may result in termination of this Agreement pursuant to Section Three (3) of this Agreement.
2. TERM
This Agreement shall be effective on the 9th day of July 2019, through and including June 30, 2023.”
2. That the existing County Agreement No. 19-336, Page four (4), beginning on line nine (9) with the number “4” and ending on page five (5), line seven (7) with the word “Agreement”, be deleted and the following inserted into its place:
“4. COMPENSATION
For actual services provided pursuant to the terms of this Agreement, COUNTY agrees to pay SUBRECIPIENT and SUBRECIPIENT agrees to receive compensation in accordance with Revised Exhibit B, Budget Summary. Mandated travel shall be reimbursed based on actual expenditures and mileage reimbursement shall be at SUBRECIPIENT’s adopted rate per mile, not to exceed the IRS published rate.
In no event shall the cumulative total of this Agreement exceed Three Million, Three Hundred Eighty-Three Thousand, Nine Hundred Nine and No/100 Dollars ($3,383,909). For the period of July 09, 2019 through June 30, 2022, in no event shall the services performed under this Agreement exceed Two Million, Six Hundred Seventy-Seven Thousand, Three Hundred Ninety-Eight and No/100 Dollars ($2,677,398). For the period of July 01, 2022 through June 30, 2023, in no event shall actual services performed under this Agreement be in excess of Seven Hundred Six Thousand, Five Hundred Eleven and No/100 Dollars ($706,511). Payments by COUNTY shall be in arrears, for services provided
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during the preceding month, within forty-five (45) days after receipt, verification and approval of SUBRECIPIENT’s invoices by COUNTY.
It is understood that all expenses incidental to SUBRECIPIENT'S performance of services under this Agreement shall be borne by SUBRECIPIENT. If SUBRECIPIENT should fail to comply with any provision of the Agreement, COUNTY shall be relieved of its obligation for further compensation. Any compensation which is not expended by SUBRECIPIENT pursuant to the terms and conditions of this Agreement shall automatically revert to COUNTY.
The services provided by the SUBRECIPIENT under this Agreement are funded in whole or in part by the State of California and the United States Federal Government. In the event that funding for these services is delayed by the State Controller or the Federal government, COUNTY may defer payment to SUBRECIPIENT. The amount of the deferred payment shall not exceed the amount of funding delayed by the State Controller to the COUNTY. The period of time of the deferral by COUNTY shall not exceed the period of time of the State Controller’s or Federal government’s delay of payment to COUNTY plus forty-five (45) days.”
3. That the existing County Agreement No. 19-336, Page seven (7), beginning on line eleven (11) with the number “9” and ending on page seven (7), line nineteen (19) with the word “Agreement”, be deleted and the following inserted into its place:
“9. HOLD HARMLESS AND INDEMNIFICATION
The SUBRECIPIENT shall indemnify and hold harmless and defend the COUNTY (including its officers, agents, employees, and volunteers) against all claims, demands, injuries, damages, costs, expenses (including attorney fees and costs), fines, penalties, and liabilities of any kind to the COUNTY, the SUBRECIPIENT, or any third party that arise from or relate to the performance or failure to perform by the SUBRECIPIENT (or any of its officers, agents, subcontractors, or employees) under this Agreement. The COUNTY may conduct or participate in its own defense without affecting the SUBRECIPIENT’s obligation to indemnify and hold harmless or defend the COUNTY.
The provisions of this Section Nine (9) shall survive termination of this Agreement.”
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4. That the existing County Agreement No. 19-336, Page nine (9), Section twelve (12), beginning with line twenty-seven (27), with the number “12” and ending on Page ten (10), Line four (4) with the word “regulations,” be deleted and the following inserted in its place:
“12. NON-DISCRIMINATION
During the performance of this Agreement, SUBRECIPIENT and its officers, employees, agents and subcontractors shall not unlawfully discriminate in violation of any Federal, State or local law, rule or regulation against any employee or application for employment, or recipient of services under this Agreement, because of ethnic group identification, gender, gender identity, gender expression, sexual orientation, color, physical disability, mental disability, medical condition, national origin, race, ancestry, marital status, religion, or religious creed.
A. Domestic Partners and Gender Identity
For State fund-funded contracts of $100,000 or more, SUBRECIPIENT certifies that it complies with Public Contract Code Section 10295.3.
B. Americans with Disabilities Act
SUBRECIPIENT shall comply with the American with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 U.S.C. 12101 et seq.).
C. SUBRECIPIENT shall include the non-discrimination and compliance provisions of this section in all subcontracts to perform work under this Agreement.”
5. That the existing County Agreement No. 19-336, Page eleven (11), Section sixteen (16), beginning with Line thirteen (13), with the number “16” and ending on Page twelve (12), Line five (5), with the URL address “https://www.sam.gov/SAM/.,” be deleted and the following inserted in its place:
“16. CERTIFICATION REGARDING DEBAREMENT, SUSPENSION, INELIGIBILITY AND
VOLUNTARY EXCLUSION-LOWER TIER COVERED TRANSACTIONS
A. COUNTY and SUBRECIPIENT recognize that SUBRECIPIENT is a recipient of Federal and State assistance funds under the terms of this Agreement. By signing this Agreement, SUBRECIPIENT agrees to comply with applicable Federal suspension and debarment regulations, including but not limited to: 7 CFR 2016.35, 29 CFR 97.35, 45 CFR 92.35, and Executive Order 12549. By
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signing this Agreement, SUBRECIPIENT attests to the best of its knowledge and belief, that it and its principals:
1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency; and
2) Shall not knowingly enter into any lower tier covered transaction with an entity or person who is debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.
B. SUBRECIPIENT shall provide immediate written notice to COUNTY if at any time during the term of this Agreement SUBRECIPIENT learns that the representations it makes above were erroneous when made or have become erroneous by reason of changed circumstances.
C. SUBRECIPIENT shall include a clause titled “Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion – Lower Tier Covered Transactions” and similar in nature to this Paragraph Sixteen (16) in all lower tier covered transactions and in all solicitations for lower tier covered transactions.
D. SUBRECIPIENT shall, prior to soliciting or purchasing goods and services in excess of $25,00 funded by this Agreement, review and retain the proposed vendor’s suspension and debarment status at https://sam.gov/SAM/.
E. The certification in Paragraph Sixteen (16) of this Agreement is a material representation of fact upon which COUNTY relied in entering into this Agreement.”
6. That the following sections are being added to existing County Agreement No. 19-336, beginning on Page Eighteen (18), Line Six (6), just prior to Section Thirty-Three (Entire Agreement), as Sections Thirty-Three (33), Thirty-Four (34), Thirty-Five (35), Thirty-Six (36), Thirty-Seven (37), ThirtyEight (38), Thirty-Nine (39), Forty (40), Forty-One (41), Forty-Two (42), and Forty-Three (43):
“33. PROCUREMENT OF RECOVERED MATERIALS
In the performance of this Agreement, SUBRECIPIENT shall comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental
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Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded$10,000. For contracts meeting this threshold SUBRECIPIENT shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired:
i. Competitively within a timeframe providing for compliance with the contract performance schedule;
ii. Meeting contract performance requirements; or
iii. At a reasonable price.
34. GRIEVANCES
SUBRECIPIENT shall establish procedures for handling client complaints and/or grievances. Such procedures will include provisions for informing clients of their rights to a State Hearing to resolve such issues when appropriate.
35. INTERPRETATION OF LAWS AND REGULATIONS
COUNTY reserves the right to make final interpretations or clarifications on issues relating to Federal and State laws and regulations, to ensure compliance.
36. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
SUBRECIPIENT, its officers, consultants, subcontractors, agents and employees shall comply with all applicable State, Federal and local laws, regulations, and executive orders, as well as Federal policies, procedures, and directives governing projects that utilize State and Federal Funds. This includes laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable or related to SUBRECIPIENT’s services, the SUBRECIPIENT, its subcontractors, and all eligible activities.
SUBRECIPIENT shall be responsible for obtaining all permits, licenses, and approvals required for performing any activities under this Agreement, including those necessary to perform design, implementation, operation, and maintenance of the activities. SUBRECIPIENT shall be responsible for observing and complying with any applicable federal, state, and local laws, rules, and regulations affecting
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any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. SUBRECIPIENT shall provide copies of permits and approvals to COUNTY upon request.
37. NO OBLIGATION BY FEDERAL GOVERNMENT
The Federal Government is not a party to this contract and is not subject to any obligations or liabilities to the non-Federal entity, contractor, or any other party pertaining to any matter resulting from this Agreement.
38. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS SUBRECIPIENT acknowledges that 31 U.S.C. Chapter 38 (Administrative Remedies for False Claims and Statements) applies to SUBRECIPIENT’s actions pertaining to this contract.
39. RECORDS
A. Record Establishment and Maintenance
SUBRECIPIENT shall establish and maintain records in accordance with those requirements prescribed by COUNTY, with respect to all matters covered by this Agreement.
SUBRECIPIENT shall retain all fiscal books, account records and client files for services performed under this Agreement for at least five (5) years from date of final payment under this Agreement or until all State and Federal audits are completed for that fiscal year, whichever is later.
B. Cost Documentation
1) SUBRECIPIENT shall submit to COUNTY within ten (10) calendar days following the end of each month, all fiscal and program reports for that month. SUBRECIPIENT shall also furnish to COUNTY such statements, records, data and information as COUNTY may request pertaining to matters covered by this Agreement. In the event that SUBRECIPIENT fail to provide reports as provided herein, it shall be deemed sufficient cause for COUNTY to withhold payments until compliance is established. 2) All costs shall be supported by properly executed payrolls, time records, invoices, vouchers, orders, or any other accounting documents pertaining in whole or in part to this Agreement and they shall be clearly identified and readily accessible. The support documentation must indicate the line budget account number to which the cost is charged. 3) COUNTY shall notify SUBRECIPIENT in writing within thirty (30) days of any
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potential State or Federal audit exception discovered during an examination. Where findings indicate that program requirements are not being met and State or Federal participation in this program may be imperiled in the event that corrections are not accomplished by SUBRECIPIENT within thirty (30) days of receipt of such notice from COUNTY, written notification thereof shall constitute COUNTY’S intent to terminate this Agreement.
C. Service Documentation
SUBRECIPIENT agree to maintain records to verify services under this Agreement including names and addresses of clients served, if applicable, and the dates of service and a description of services provided on each occasion. These records and any other documents pertaining in whole or in part to this Agreement shall be clearly identified and readily accessible.
40. SINGLE AUDIT CLAUSE
If SUBRECIPIENT expends Seven Hundred Fifty Thousand Dollars ($750,000) or more in Federal and Federal flow-through monies annually, SUBRECIPIENT agrees to conduct an annual audit in accordance with the requirements of the Single Audit Standards as set forth in Office of Management and Budget (OMB) Title 2 of the Code of Federal Regulations Part 200. SUBRECIPIENT shall submit said audit and management letter to COUNTY. The audit must include a statement of findings or a statement that there were no findings. If there were negative findings, SUBRECIPIENT must include a corrective action signed by an authorized individual. SUBRECIPIENT agrees to take action to correct any material non-compliance or weakness found as a result of such audit. Such audit shall be delivered to COUNTY’s DSS, Administration, for review within nine (9) months of the end of any fiscal year in which funds were expended and/or received for the program. Failure to perform the requisite audit functions as required by this Agreement may result in COUNTY performing the necessary audit tasks, or at COUNTY’s option, contracting with a public accountant to perform said audit, or, may result in the inability of COUNTY to enter into future agreements with SUBRECIPIENT. All audit costs related to this Agreement are the sole responsibility of SUBRECIPIENT.
A. A single audit report is not applicable if all SUBRECIPIENT’s Federal contracts do not exceed the Seven Hundred Fifty Thousand Dollars ($750,000) requirement or SUBRECIPIENT’s funding is through Drug related Medi-Cal. If a single audit is not applicable, a program audit must be
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performed and a program audit report with management letter shall be submitted by SUBRECIPIENT to COUNTY as a minimum requirement to attest to SUBRECIPIENT’s solvency. Said audit report shall be delivered to COUNTY’s DSS, Administration, for review no later than nine (9) months after the close of the fiscal year in which the funds supplied through this Agreement are expended. Failure to comply with this Act may result in COUNTY performing the necessary audit tasks or contracting with a qualified accountant to perform said audit. All audit costs related to this Agreement are the sole responsibility of SUBRECIPIENT who agrees to take corrective action to eliminate any material noncompliance or weakness found as a result of such audit. Audit work performed by COUNTY under this paragraph shall be billed to the SUBRECIPIENT at COUNTY cost, as determined by COUNTY’s AuditorController/Treasurer-Tax Collector.
B. SUBRECIPIENT shall make available all records and accounts for inspection by COUNTY, the State of California, if applicable, the Comptroller General of the United States, the Federal Grantor Agency, or any of their duly authorized representatives, at all reasonable times for a period of at least three (3) years following final payment under this Agreement or the closure of all other pending matters, whichever is later.
41. CHILD SUPPORT COMPLIANCE ACT
If this Agreement includes State funding in excess of $100,000, the SUBRECIPIENT acknowledges in accordance with Public Contract Code 7110, that:
A. SUBRECIPIENT recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and
B. SUBRECIPIENT to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
42. PRIORITY HIRING CONSIDERATIONS
If this Agreement includes State funding and services in excess of $200,000, SUBRECIPIENT
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shall give priority consideration in filling vacancies in positions funded by the Agreement to qualified recipients of aid under Welfare and Institutions Code Section 11200, in accordance with Public Contract Code Section 10353.
43. SUBRECIPIENT’S NAME CHANGE
An amendment, assignment, or new agreement is required to change the name of SUBRECIPIENT as listed on this Agreement. Upon receipt of legal documentation of the name change COUNTY will process the agreement. Payment of invoices presented with a new name cannot be paid prior to approval of said agreement.”
7. That all references in existing COUNTY Agreement No. A-19-336 to “Exhibit A” shall be changed to read “Revised Exhibit A,” which is attached hereto and incorporated herein by this reference.
8. That all references in existing COUNTY Agreement No. A-19-336 to “Exhibit B” shall be changed to read “Revised Exhibit B,” which is attached hereto and incorporated herein by this reference.
9. That Exhibit D (Self-Dealing Transaction Disclosure Form) attached to COUNTY Agreement No. 19-336 shall be deleted and replaced with Exhibit G (Self-Dealing Transaction Disclosure Form), attached hereto and incorporated herein by this reference. All references in COUNTY Agreement No. 19-336 to Exhibit D (Self-Dealing Transaction Disclosure Form) shall be changed to read “Exhibit G.”
10. ELECTRONIC SIGNATURE
The parties agree that this Amendment I may be executed by electronic signature as provided in this section. An “electronic signature” means any symbol or process intended by an individual signing this Amendment I to represent their signature, including but not limited to (1) a digital signature; (2) a faxed version of an original handwritten signature; or (3) an electronically scanned and transmitted (for example by PDF document) of a handwritten signature. Each electronic signature affixed or attached to this Amendment I (1) is deemed equivalent to a valid original handwritten signature of the person signing this Amendment I for all purposes, including but not limited to evidentiary proof in any administrative or judicial proceeding, and (2) has the same force and effect as the valid original handwritten signature of that person. The provisions of this section satisfy the requirements of Civil Code section 1633.5, subdivision (b), in the Uniform Electronic Transaction Act (Civil Code, Division 3, Part 2, Title 2.5, beginning with section 1633.1). Each party using a digital signature represents that it has undertaken and
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satisfied the requirements of Government Code section 16.5, subdivision (a), paragraphs (1) through (5), and agrees that each other party may rely upon that representation. This Amendment I is not conditioned upon the parties conducting the transactions under it by electronic means and either party may sign this Amendment I with an original handwritten signature.
11. COUNTY and SUBRECIPIENT agree that this Amendment I is sufficient to amend Agreement No. 19-336 and that upon execution of this Amendment, the Agreement and Amendment I shall together be considered the Agreement.
This Agreement, as hereby amended, is ratified and continued. All provisions, terms, covenants, conditions, and promises contained in this Agreement not amended herein shall remain in full force and effect. This Amendment I shall become effective upon execution on the day first written hereinabove.
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1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment I to Agreement as of the 2 day and year first hereinabove written.
3 SUBRECIPIENT:
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Title: C;..G? a
8 Chairman of the Board, or
President, or any Vice President
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COUNTY OF FRESNO
Brian Pacheco, Chairman of the Board of
Supervisors of the County of Fresno
ATTEST:
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
,m 1-lc.n a c By:
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28 Title: -"-~"""-'-+u-......... ...,,._......__.s:::=,,,,~-.....u...o.....,,.__ Secre ary (of Corporation), or
any Assistant Secretary, or
Chief Financial Officer, or
any Assistant Treasurer
Mailing Address:
1900 N. Gateway Blvd., Suite 100
Fresno, CA 93727
Phone No: (559) 251-4800
Contact: Deputy Chief Operating Officer
FOR ACCOUNTING USE ONLY:
Fund/Subclass: 0001/10000
ORG No.: 56107114
Account No.: 7870
SB:cwc
- 14 - COUNTY OF FRESNO
r,csno, CA
Revised Exhibit A
SUMMARY OF SERVICES
ORGANIZATION: WestCare California, Inc. (WestCare)
ADDRESS: 1900 N. Gateway Blvd., Suite 100, Fresno, CA 93727 TELEPHONE: (559) 251-4800
CONTACT: Shawn Jenkins, Deputy Chief Operating Officer
EMAIL: [email protected]
CONTRACT: Rapid Rehousing Services
CONTRACT PERIODS: July 9, 2019 through June 30, 2022
July 1,2022 through June 30, 2023
SUMMARY OF SERVICES
WestCare will provide a Rapid Rehousing program designed to help individuals and families exit homelessness and return to permanent housing as quickly as possible. WestCare will provide temporary, medium-term financial assistance (typically 3 to 18 months), combined with housing location and case management services, to help homeless individuals and families obtain permanent housing and achieve long-term stability.
Rapid Rehousing services provided shall follow both project-based and tenant-based models. • Project-based assistance will be provided at a site located at 2550 W. Clinton Ave., Fresno, CA.
• Tenant-based assistance will be provided to participants throughout the Fresno Madera Continuum of Care (FMCoC) service area, in metro and rural Fresno and Madera counties.
WestCare will also subcontract with Selma Community Outreach Ministries (Selma COM) for rural tenant-based rapid rehousing services. WestCare will share best practices and provide support to Selma COM on an as needed basis.
TARGET POPULATION
The target populations of Rapid Rehousing services are individuals or families that are experiencing homelessness in Fresno and Madera Counties, with particular focus on Madera (City and County) and City of Selma regions for tenant-based assistance.
RAPID REHOUSING SERVICES
1. Case Management: Provide intensive case management services that focus on developing a housing plan for all participants, helping them overcome barriers to attaining permanent housing, locating and placing participants into housing, monitoring participant progress, and intervening with relevant support, if necessary to ensure participant stability. Two case managers will provide services at the 2550 W. Clinton Ave. site, or other identified access sites in Fresno and Madera counties.
Case management services will be provided in a phased approach, in order to ensure that participants have been sustainably stabilized:
Revised Exhibit A
a. Active Case Management (ACM): ACM will be used when a participant first enters the program, until the point that the case manager believes that their housing situation has been reasonably stabilized. ACM entails regular contact, from twice weekly to sometimes daily; sustained effort to stabilize the participant’s housing situation; and active pursuit of additional community resources for the participant’s benefit.
b. Passive Case Management (PCM): Once a participant has been adequately stabilized, they may be phased to PCM. PCM entails the case manager contacting the client in person, or by other means as necessary, a minimum of every two weeks in order to monitor the participant’s housing stability. During this phase of service, the participant may continue to contact the Rapid Rehousing program at any time should they require assistance.
Note: Participants may be transferred from PCM to ACM whenever necessary, as determined by either case managers or the Program Director.
2. Direct Financial Assistance: Provide direct financial assistance to remove immediate barriers to housing, including rental assistance of up to 24 months, utility payments, security and utility deposits, moving costs, transportation costs, landlord fees and background check fees, job certification and license fees, work supply costs, and interpreter services. Whenever appropriate, WestCare will work with clients to ensure that clients pay a share of cost toward rental assistance, beginning with the first month of assistance. WestCare shall develop a share of cost schedule, and ensure that client subsidies adhere to the schedule based on individual needs.
SUBRECIPIENT RESPONSIBILITIES
• Maintain membership in good standing in the Fresno Madera Continuum of Care (FMCoC) as defined by FMCoC bylaws, and participate in the Coordinated Entry System (CES).
• Accept referrals only through the FMCoC CES.
• In the event the number of referrals exceeds the number of available housing placements, WestCare will prioritize referrals using the following criteria: Vulnerability Index – Service Prioritization Decision Assistance Tool (or other prioritization tool utilized by the FMCoC) score, length of homelessness, medical conditions, and any other relevant factors.
• Enter participant information into the Homeless Management Information System (HMIS) in compliance with HEAP and HUD data collection, management, and reporting standards.
• Ensure that all units at the 2550 W. Clinton Ave. site are occupied within 3 months of contract execution, and ensure that no unit is subsequently unoccupied for a period of more than 60 consecutive days. In the event that a unit is unoccupied for greater than 60 days, the unit may not be billed to this agreement. Exceptions may be made with written approval from the County.
• Ensure that a minimum of $62,185 of Direct Financial Assistance is expended on youth that have entered the program between the ages of 18 and 24, including individuals and families with a head of household between the ages of 18 and 24 during the contract term July 9, 2019 through June 30, 2022.
Revised Exhibit A
• Meet with County staff monthly, or as often as needed, for service coordination, problem/issue resolution, information sharing, training, review, and monitoring of services.
• Engage clients in a linguistically and culturally appropriate manner, including the use of interpreters when needed.
• Provide annual Civil Rights training to staff at the beginning of every calendar year, and provide relevant verification to the County of Fresno by April 1.
PERFORMANCE OUTCOMES
WestCare shall provide complete and accurate monthly activity reports to the County of Fresno, in a report format approved by the County by the 10th of each month. Performance outcomes by term follow:
July 9, 2019 through June 30, 2022
WestCare
• Provide both project-based and tenant-based Rapid Rehousing services to a minimum of 45 unduplicated participants.
• A minimum of 75% of participants will exit to permanent housing. • A minimum of 80% of those who exit the program to permanent housing will remain in permanent housing six months after exiting the program. • Ensure 100% of HMIS entries are completed within 7 days of program entry.
July 1,2022 through June 30, 2023
WestCare
• Provide project-based Rapid Rehousing services to a minimum of 30 unduplicated households.
• A minimum of 75% of participants will exit to permanent housing. • A minimum of 80% of those who exit the program to permanent housing will remain in permanent housing six months after exiting the program. • Ensure 100% of HMIS entries are completed within 7 days of program entry.
Selma COM Subcontract
• Provide tenant-based Rapid Rehousing services to a minimum of 15 unduplicated households.
• A minimum of 75% of participants will exit to permanent housing. • A minimum of 80% of those who exit the program to permanent housing will remain in permanent housing six months after exiting the program. • Ensure 100% of HMIS entries are completed within 7 days of program entry.
Revised Exhibit B
BUDGET SUMMARY
ORGANIZATION: WestCare California, Inc.
SERVICES: Rapid Rehousing
TERM: July 9, 2019 through June 30, 2022
TERM COST: $2,677,398
Budget Categories Amount
Personnel
Salaries
2.5 FTE Case Managers
.16 FTE Program Director
Payroll Taxes
Benefits
Subtotal $411,570.00
Operations
Insurance
Communication
Office Expenses
Equipment
Vehicle Fuel/Maintenance
Repairs, Maintenance, and Lease
Staff Recruitment
Training
Subtotal $98,460.00
Direct Financial Assistance*
Rental Assistance
Motel/Hotel Costs
Utility Payments
Security/Utility Deposits
Moving/Storage Costs
Vehicle Lease
Landlord Fees/Background Checks
Subtotal $1,905,847.00*
Indirect Costs
Indirect Costs
Subtotal $261,521.00
Total $2,677,398.00
*A minimum of $62,185 of Direct Financial Assistance must be expended on youth that have entered the program between the ages of 18 and 24.
Revised Exhibit B
BUDGET SUMMARY
ORGANIZATION: WestCare California, Inc.
SERVICES: Rapid Rehousing
TERM: July 1, 2022 through June 30, 2023
TERM COST: $706,511
Budget Categories Amount
Personnel
Salaries
3.5 FTE Case Managers
.16 FTE Program Director
Payroll Taxes
Benefits
Subtotal $176,317.00
Operations
Insurance
Communication
Office Expenses
Equipment
Vehicle Fuel/Maintenance
Repairs, Maintenance, and Lease
Staff Recruitment
Training
Subtotal $74,996.00
Direct Financial Assistance
Rental Assistance
Motel/Hotel Costs
Utility Payments
Security/Utility Deposits
Moving/Storage Costs
Vehicle Lease
Landlord Fees/Background Checks
Subtotal $392,140.00
Indirect Costs
Indirect Costs
Subtotal $63,058.00
Total $706,511.00
County of Fresno
18-HEAP-00027
Standard Ag'reem~nt
EXHIBIT A
AUTHORITY, 'PURPOSE AND SCOPE OF WORK
Homele~s Emergency Aid Program'CHEAP)
1. Authority
Pursuant to Chapter 5 (commencing with Se.ction 50210) of Part 10f Division 31 of the Health and Safety Code, and all other relevant provisions established under SB 850 (Chapter 48, 'Statutes of 2018), the State has established the Homeless Emergency Aid Program ("HEAP" or "the Program" or "the grant'i). The Program is. administered by the 'California Homeless Coordinating and Financing' Council ("Council") in the Business, Consumer Services and Housing Agency ("Agency").
HEAP provides one-time fle~ibl~ block grant funds to Administrative, Entities as defined in the September 5, 20~ 8 HEAP Notice of Funding Availability (NOFA) and Large Cities to address their immediate homelessness challenges. This Standard' Agreement along with all its exhibits ("Agreement") is entered into by.the Agency and an Administrative Entity or Large City ("Contractor") under the authority of, and in furtherance of the purpose of, the Prograf!l. In signing this Agreement and thereby accepting this award of funds, the Contractor agrees to comply with the terms and conditions of the Agreement, the Notice of Funding Availability (liNOFA") under which .the Contractor applied, the representations contained in the Contractor's application, and the requirements of the authority cited above. .
2. Purpose
The general purpose of the Program is to provide one-time block grant funding to address the immediate emergency needs of hornelessindlvlduals and individuals at imminent risk of homeless ness in the servicearea of each Contractor. In accordance with the authority cited above, an application was made by the Contractor for HEAP funds to be allocated. for eligible uses under the grant, which include, but are not limited to, the following: services, rentalasslstance or subsidies, capital improvements and homeless youth activities.
3. Definitions
Terms- herein shall have the same meaning as the definitions set forth in the HEAP NOFA.
4. Scope of Work '
The Scope of Work{'Work") for this Agreement shall include ODe-time uses that are consistent with Chapter 5 (commencing with Section 50210) of Part 1 of Division 31 of the Health and Safety Code, and all other relevant provisions established under S8 850 (Chapter 48, Statutes of 2018), for eligible uses, which include, but are not limited to, one or more of the following: .
Homeless Emergency Aid Program
NOFA Datel 09/P5/2018
Contractor's Initia~
Exhibit C
1 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBIT A
A. Services,
B. Rental Assistance or Subsidies,
C. Capital Improvements,
D. Homeless Youth Set-Aside,
E. Administrative Costs, and
F. Other
5. Agency Contract Coordinator
The Agency's Contract Coordinator for this Agreement is the Council's HEAP Grant Manager or the Grant Manager's designee. Unless otherwise instructed, any notice, report, or other communication requiring Contractor signature for this Agreement shall be mailed by first class mail to the Agency Contract Coordinator at the following address:
Business, Consumer Services and Housing Agency
Attn: Homeless Emergency Aid Program Grant Manager
915 Capitol Mall, Suite 350-A
Sacramento, CA 95814
6. Contractor's Contract Coordinator
The Contractor's Contract Coordinator ("Authorized Representative") for this Agreement is listed below. Unless otherwise informed, any notice, report or other communication required by this Agreement will be mailed by first class mail to the Contractor's Contract Coordinator at the following address:
Contractor's
Authorized
Representative Laura Moreno, Program Manager
Name:
Address:
200 W. Pontiac Way, Building 3
Clovis, CA 93612
Phone: (559) 600-2335
Email: [email protected]
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
2 of 17
Standard Agree ent
EXHIBIT A
County of Fresno
18-HEAP-00027
Page3 of 3
7. Effective Date,Term of Agreement, and Oeattlines
A. This Agreement is effective upon approval by the Agency (indicated by the signature provided by Agency in the lowlleft section of page one, Standard Agreement, STD. 213), when signed by all arties.
B. All HEAP grant funds must be at least fi: percent contractually obligated by January 1, 2020. One hundred percent of ~rogram funds must be expended by June 30, 2021. Any funds not expended qy that date shall be returned to the Agency and will revert to the General Fund See Health and Safety Code Section 50215).
8. Special Conditions
Agency reserves the right to add any special c nditions to this Agreement it deems necessary to ensure the goals of the Program a e achieved.
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
3 of 17
County of Fresno
18-HEAP-00027
Page1 of3
.'
Standard Agreement
EXHIBIT B
BUDGET DETAIL AND PAYMENT PROVISIONS
Homeless Emergency Aid Program (HEAP)
1. Budget Detail
The Contractor agreesthat HEAP funds shall be expended on one-time uses that address immediate homelessness challenges.
Consistent with the application submitted by the Contractor on December 12, 2018, the Business, Consumer Services and Housing Agency ("Agency") shall award funds' in the form of a grant for the following ~ligible activities:
. A. Capital Improvements: -
. B. Services:
C. Rental Assistance or Subsidies:
D. Homeless Youth Set-Aside:
E. Administrative Costs:
F. Other:
Total HEAP Award Amount:
$ 0.00
$ 7,073,213.70
$ 994,679.00','
. $ 475,068.14
$ 475,068.00
$ 483,334.00
$9,501,362.84
2. General Conditio,ns Prior to Disbursement '
General Requirements - All Contractors must submit the following forms prior to HEAP funds being released: -
A. Request for Funds Form (RFF),
B. Four original copies of the signed STD. 2.13form and initialed Exhibits A through D, and " -
C. Any other documents, certifications, or evidence requested by Agency as part of the HEAP application.
3. Expenditure of Funds
-Specific requirements and deadlines for contractually obligating and expending awarded funds are defined in the HEAP statutes. Health and Safety Code Sections 50214 and .50215mandate the following:
A. Nomore than five (5) percerit of HEAP funds may be used for administrative costs related to the execution of eligible activities.
B. No less than five (5) percent :of HEAP funds shall be used to establish or expand services meeting the needs of homeless youth or youth at risk of homelessness, C. No.less than 50'percent of HEAPfunds shall be contractually obligated by January 1,2020. -
D. One hundred percent of HEAP funds shall be expended by June 30, 2021.
Homeless Emergency Aid Program
NOFA Date:"09/05/2018
Contractor's Initi~
Exhibit C
4 of 17
County of Fresno
18-HEAP-00027
Page2 of 3
Standard Agreement
EXHIBIT B
E. Any funds not expended by June 30, 2021 shall be returned to Agency and will revert to the General Fund.
Homeless Coordinating and Financing Council ("Council") staff will provide ongoing technical assistance and training to support Contractors in successfullycomplying with these requirements and deadlines.
HEAP funds may not be obligated and expended prior to the effective date of this Agreement or prior to Contractor's receipt of HEAP funds, whichever date is later, even if it is for an eligible use under the statute. Program funds shall be expended in compliance with the requirements set forth in Chapter 5 of Part 1 of Division 31 of the Health and Safety Code and all other relevant provisions established under 58 850, the NQFA, and this Agreement.
4. Disbursement of Funds
HEAP funds will be disbursed to the Contractor upon receipt, review and approval of the completed RFF by Agency, which will then forward the RFF to the State Controller'S Office ("SCQ") for a check to be issued. The RFF must include the proposed activities and amount of funds proposed for expenditure under each eligible use. HEAP funds will be disbursed in a single allocation once the RFF has been received by the SCQ.
5. Budget Changes
After the effective date of this Agreement. the Contractor agrees that no changes shall be made to the Contractor's HEAP budget, funded homeless service providers ("subrecipients"), or eligible activities listed in the RFF without first obtaining approval from Agency. Any changes to this Agreement must be requested by the Contractor in writing through submission of a Change Request Form. Changes must be approved in writing by Agency.
6. Ineligible Costs
HEAP funds shall not be used for costs associated with activities in violation of any law or for any activities not consistent with the intent of the Program and the eligible uses identified in Health and Safety Code Section 50214.
Agency reserves the right to request additional information and clarification to determine the reasonableness and eligibility of all costs to be paid with funds made available by this Agreement. If the Contractor or its funded subrecipients use HEAP funds to pay for ineligible activities, the Contractor shall be requiredto reimbursethese funds to Agency.
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
5 of 17
County of Fresno
18-HEAP-00027
Sta~dardAgreement
EXHIBIT B
A. An expenditure which is not authorized by this Agreement, or which cannot be adequately documented, shall be disallowed and must be reimbursed to Agency by the Contractor.
B. Expenditures for activities not described in Exhibit A or Paragraph 1 above shall be deemed authorized if the activities are consistent with Health and Safety Code Section 50214 and such activities are included in the approved RFF or are approved in writing by Agency prior to the expenditure of funds for those activities.
C. Agency, at its sole and reasonable discretion, shall make the final determination regarding the allowability of expenditures of HEAP funds.
D. Program funds shall not be used for overhead or planning activities, including Homeless Management Information Systems or Homelessness Plans.
7. Administrative Costs
The Contractor must comply with Health and Safety Code Section 50214, which limits administrative costs related to the execution of eligible activities to no more than five percent of HEAP funds. For purposes of this Program, "administrative costs" does not include staff costs directly related to carrying out the eligible activities described in Paragraph 1 of this Exhibit.
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
6 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBITC
TERMS AND CONDITIONS
Homeless Emergency Aid Program (HEAP)
1. .Effective Date. Commencement of Work a-ndComple~ion Dates A. This Agreement is effective upon approval by Agency, which is indicated by the signature provided by Agency in the,lower left-hand corner of page one, Standard Agreement, STD. 213, when signed'byall parties. Contractor agrees that the work ' shall not commence, nor any costs to be paid with HEAP funds be incurred or obligated by any party, prior to execution of this Agreement by Agency and the Contractor, or prior to Contractor's receipt of HEAP funds, whichever date is later.
Contractor agrees that the work shall be completed by the expenditure' date specified in Exhibit A, Paragraph 6.
B. Contractor must contractually obligate no less than 50 percent of HEAP funds by January 1,,2020. One hundred percent of HEAP funds shall be expended by June 30, 2021. Any funds not expended by June 30, 2021 shall be returned to Agency and revert to the General'Fund. "Obligate" means that the Contractor has placed orders, awarded contracts, received services, or entered similar transactions that requirepayment from the grant amount. Inthe case of an award made to a general purpose local government that subcontracts with private nonproflt organizati.ons via letters of awards and Service Provider Agreements, the Subcontractors are required to obligate the funds by the same statutory deadlines. "Expended" means all HEAP funds obligated under contract or subcontract have been fully paid and receipted, and no invoices remain outstanding.
C. Contractor and its Subcontractors agree that the work shall be completed by the expiration date specified in Exhibit A,'Paragraph 6 and that the Scope of Work will be provided for the full term of this Agreement.
2. Sufficiency of Funds and Termination
A. Agency may terminate this Agreement at any time for cause by giving a minimum of 14 days' notice of termination, in writing, to the Contractor. Cause shall consist of: violations of any terms or conditions of this Agreement, or any breach of contract as described in Paragraph 7; violation of any Federal or State Laws or Regulations; or withdrawal of Agency's expenditure authority. Upon termination of ' this Agreement, unless otherwise approved in writing by Agency, any unexpended funds received by the Contractor shall be returned to Agency within thirty days of the Notice of Termination.
B. This Agreement is valid and enforceable only if sufficient funds are made available to Agency by legislative appropriation. In addition, this Agreement is subject to any additional restrictions, limitations or conditions, or statutes, regulations or al1Yother Homeless Emergency Aid Program
NOFA Date:09/0512018
Contractor'sInitiald
Exhibit C
7 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBITC
laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner.
3. Transfers
Contractor may not transfer or assign by subcontract or novation, or by any other means, the rights, duties, or performance of this Agreement or any part thereof, except with the prior written approval of Agency and a formal amendment to this Agreement to affect such subcontract or novation.
4. Contractor's Application for Funds
Contractor has submitted to Agency an application for HEAP funds to provide urgently needed emergency assistance to homeless people in communities with a declared shelter crisis or applicable waiver as authorized by Health and Safety Code Section 50212(b). Agency is entering into this Agreement on the basis of, and in substantial reliance upon, Contractor's facts, information, assertions and representations contained in that Application, and in any subsequent modifications or additions thereto approved by Agency. The Application and any approved modifications and additions thereto are hereby incorporated into this Agreement.
Contractor warrants that all information, facts, assertions and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of Contractor's knowledge. In the event that any part of the Application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect Agency approval, disbursement, or monitoring of the funding and the grants or activities governed by this Agreement, then Agency may declare a breach hereof and take such action or pursue such remedies as are provided for breach hereof.
5. Reporting/Audits
A. The Contractor shall submit an annual report to Agency on forms provided by Agency, by January 1, 2020 and January 1, 2021. If the Contractor fails to provide such documentation, Agency may disencumber any portion of the amount authorized by this Agreement with a 14-day written notification. The Contractor shall also submit a final report by September 30,2021.
B. The annual report shall contain a detailed report containing the following:
1. Amounts awarded to subrecipients with activity(ies) identified.
2. Contract expenditures.
3. Unduplicated number of homeless persons or persons at imminent risk of homelessness served.
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
8 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBITC
4. Number of instances of service (defined in September 5,2018 HEAP NOFA).
5. Increases in capacity for new and existing programs.
6. The number of unsheltered homeless persons becoming sheltered.
7. The number of homeless persons entering permanent housing.
Breakdowns will be expected for each activity (i.e. services, capital improvements. rental assistance. etc.) and program type (Le. emergency shelter. rapid re-housing. outreach. etc.) for the supplemental reporting requirements listed above. when applicable. The same information will also be requested specifically for the following subpopulations. based on priorities defined by the U.S. Department of Housing and Urban Development (HUD):
1. Chronically homeless
2. Homeless veterans
3. Unaccompanied homeless youth
4. Homeless persons in families with children
Counts by subpopulation will not be required in cases where that information is unavailable, but it is expected in cases where client information is entered in a Homeless Management Information System (HMIS). Additional breakdowns for other subgroups (e.g. race. ethnicity, disability status. etc.) are optional. if the Contractor chooses to include them.
The Contractor will also be asked to comment on the following:
1. Progress made toward local homelessness goals.
2. The alignment between HEAP funding priorities and "Housing First" principles adopted by the Homeless Coordinating and Financing Council.
3. Any other effects from HEAP funding that the CoC or large city would like to share (optional).
C. Agency reserves the right to perform or cause to be performed a financial audit.At Agency request. the Contractor shall provide, at its own expense. a financial audit prepared by a certified public accountant. HEAP administrativefunds may be used to fund this expense.
1. If a financial audit is required by Agency. the audit shall be performed by an independent certified public accountant.
2. The Contractor shall notify Agency of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by Agency to the independent auditor's working papers.
3. The Contractor is responsible for the completion of audits and all costs of preparing audits.
4. If there are audit findings, the Contractor must submit a detailed response acceptable to Agency for each audit finding within 90 days from the date of the Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
9 of 17
County of Fresno
18-HEAP-00027
Page4 of9
Standard Agreement
EXHIBITC
audit finding report.
6. Retention and Inspection of Records
A. The Contractor agrees that Agency or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement. The Contractor agrees to provide Agency or its designee, with any relevant information requested. The Contractor agrees to permit Agency or its designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewingemployees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other materials that may be relevant to a matter under investigation for the purpose of determining compliance with the Chapter 5 of Part 1 of Division 31 of the Health and Safety Code and all other applicable requirements established under SB 850, HEAP program guidance document published on the website, and this Agreement.
B. The Contractor further agrees to retain all records described in Paragraph A for a minimum period of five (5) years after the termination of this Agreement.
1. If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it.
7. Breach and Remedies
A. The following shall each constitute a breach of this Agreement:
1. Contractor's failure to comply with the terms or conditions of this Agreement.
2. Use of, or permitting the use of, HEAP funds provided under this Agreement for any ineligible activities.
3. Any failure to comply with the deadlines set forth in this Agreement.
B. In addition to any other remedies that may be available to Agency in law or equity for breach of this Agreement, Agency may:
1. Bar the Contractor from applying for future HEAP funds;
2. Revoke any other existing HEAP award(s) to the Contractor;
3. Require the return of any unexpended HEAP funds disbursed under this Agreement;
4. Require repayment of HEAP funds disbursed and expended under this Agreement;
5. Require the immediate return to Agency of all funds derived from the use of HEAP funds including, but not limited to recaptured funds and returned funds; Homeless Emergency Aid Program
NOFA Date:09/05/2018
Exhibit C
10 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBITC
6. Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the technical assistance in accordance with HEAP requirements; and
7. Seek such other remedies as may be available under this Agreement or any law.
C. All remedies available to Agency are cumulative and not exclusive.
D. Agency may give written notice to the Contractor to cure the breach or violation within a period of not less than 15 days.
8. Waivers
No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of Agency to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Contractor of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Agency to enforce these provisions.
9. Nondiscrimination
During the performance of this Agreement, Contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, and denial of medical and family care leave or pregnancy disability leave. Contractors and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor or subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code section12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, section 7285 et seq.).
The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
10.Conflict of Interest
All participants are subject to State and Federal conflict of interest laws. Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared Homeless Emergency Aid Program
NOFA Date: 09/0512018
Exhibit C
11 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBIT C
void. Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code, sections 10410 and 10411, for State conflict of interest requirements.
A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.
B. Former State Employees: For the two-year period from the date he or she leftState employment, no former State officer or employee may enter into a contract inwhich he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date he or she left State employment, noformer State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving,State service.
C. Employees of the Contractor: Employees of the Contractor shall comply with all applicable provisions of .Iawpertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act, Government Code section 87100 et seq.
11.Drug-Free Workplace Certification
Certification of Compliance: By signing this Agreement, Contractor, and its subcontractors, hereby certify, under penalty of perjury under the laws of State of California, compliance with the requirements of the Drug-Free Workplace Act of 1990 (Government Code 8350 et seq.) and have or wiUprovide a drug-free workplace by taking the following actions:
A. Publish a statement notifying employees and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code section 8355(a)(1).
B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355(a)(2) to inform employees, contractors, or subcontractors about all of the following:
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
---- - - ------ Exhibit C
12 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBITC
1. The dangers of drug abuse in the workplace;
2. Contractor's policy of maintaining a drug-free workplace;
3. Any available counseling, rehabilitation, and employee assistance programs; and, .
4. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.
C. Provide, as required by Government Code section 8355(a)(3), that every employee and/or subcontractor who works under this Agreement:
1. Will receive a copy of Contractor's drug-free policy statement, and
2. Will agree to abide by terms of Contractor's condition of employment or subcontract.
12. Child Support Compliance Act
For any Contract Agreement in excess of $100,000, the Contractor acknowledges in accordance with Public Contract Code 7110, that:
A. The Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and B. The Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
13.Special Conditions - Contractors/Subcontractor
The Contractor agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit D. These conditions shall be met to the satisfaction of Agency prior to disbursement of funds. The Contractor shall ensure that all Subcontractors are made aware of and agree to comply with all the conditions of this Agreement and the applicable State requirements governing the use of HEAP funds. Failure to comply with these conditions may result in termination of this Agreement.
A. The Agreement between the Contractor and any Subcontractor shall require the Contractor and its Subcontractors, if any, to:
1. Perform the work in accordance with Federal, State and Local housing and building codes, as applicable.
2. Maintain at least the minimum State-required worker's compensation for those Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
13 of 17
County of Fresno
18-HEAP-00027
Standard Agreement
EXHIBITC
employees who will perform the work or any part of it.
3. Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the Contractor or any Subcontractor in performing the Work or any part of it.
4. Agree to include all the terms of this Agreement in each subcontract.
14.Compliance with State and Federal Laws. Rules, Guidelines and Regulations The Contractor agrees to comply with all State and Federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable andlor related to the HEAP program, the Contractor, its Subcontractors, and all eligible activities.
Contractor shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this Agreement, includingthose necessary to perform design, construction, or operation and maintenance of the activities. Contractor shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. Contractor shall provide copies of permits and approvals to Agency upon request.
15.Inspections
A. Contractor shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable Federal, State and/or local requirements, and this Agreement.
B. Agency reserves the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable Federal, State andlor local requirements, and this Agreement.
C. Contractor agrees to require that all work that is determined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient or Subcontractor until it is corrected.
16.Litigation
A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of Agency, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are and shall be deemed severable.
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
14 of 17
County of Fresno
18-HEAP-00027
Page9 of9
Standard Agreement
EXHIBIT C
B. The Contractor shall notify Agency immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or Agency, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Agency.
Homeless Emergency Aid Program
NOFA Date: 09/05/2018
Exhibit C
15 of 17
County of Fresno
18-HEAP-0002-7
·Stand.ard Agreement
ExhibitD
SP~CIAL TE~MS AND CONDITIONS
Homeless Emergency Aid Program (HEAP)
1. All proceeds from any interest-bearing account established by the Contractor for the deposit of HEAPfunds, along with·any interest-bearing accounts opened bJ Subrecipie~ to the Contractor for the deposit of HEAPfunds, must be use.d for HEAP-eJigible activities. Consistent with Health· and Safety Code Section 50214 (b), no more than fIVe (5) pereentef these 'proceeds maY'be used for general administrative purposes.' At least. five (5)' percent of these proceeds must be allocated to estabiishing or expanding services for homeless youth, as defined In HEAP Program documents.
2. Any. housing.,.i"elatedactivities funded With HEAP funds, including but not limited to, em~rgency shelter,. rapid-rehousing, rental assistance; trarl$itional· housing and permanent supportive housing must be in compliance or othelWise' aligned with the Core Componerm; of Housing First, pursuant to Welfare and Institution Code Section 8255(b) ..
3. The Con~ractor agrees to provide·the Business, Consumer ServiC8$ and Housing Agency access to Homeless Management Information System ("HMI.S" data collected and entered into the Contractor's HMIS, upon request, and to participate in any statewide, data initiative as directed by BCSH including but not limited to, a statewide data·integration environment.
4. Pursuant to the infonnatien provided in.the Contractor's application. the following jurisdictions have declared' and have In effect a sherter crisis in.accordance with Government Code Se~ion 8698.2 at the time of this award, and are eligible to receive. HEAP fun sd th h .rou!; the Contractor: .
City.of Coalinga City:of Madera, :Madera County
'City of Fresno City of Parlier Fresno c.ounty
.City of Huron City of Sanger
{
The following jurisdictions have' not declared a shelter crisis at the time Of this award and are not eligible to directly receive HEAP funds throuah the Contractor:
City of Clovis City of Kennan City of Reedley
City of·ChoWchilla City of KingSburg City of San Joaquin City of Firebaugh City of Orange Cove City of Selma
'Cityof Fowler
Homeless Emergency Aid Program
NOFA Date: 091051201 B
ContractorsIniti~
Exhibit C
16 of 17
STATEjOF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 06103)
Agreement No. 19-082
AGREEMENTNUMBER
18-HEAP-00027
REGISTRATIONNUMBER
CA~14
STATE.AGENCY'S NAME
1. This Agreement is entered.into betWeenthe State Agency and the Contractor nallied below:
BUSINE$S"CONSUMER SERVICES AlIID HOUSING AGENCY
CONTRACTOR'S NAME
County of Fresno
2.' .The term of this
Agreement is; 'Upon BCSHApproval through 10/31/2021.
3. The maximum amount
ofthis Agreement is: $ 9,501,36~;84
4. The parties agree tq Complywith the terms and conditions of the following exhibits, which are by this reference made a part ofthe Agreement. .
Exhibit A - Authority, Purpose and Scope of Work
Budget Detail and Payment Provisions
Terms and Conditions
Exhibjt BExhibit CExhibit D - Special Terms and Conditions '\
TOTAL NUMBER OF PAGES ATTACHED:
IN WITNESS WHEREOF, this Agreemei1thas been executed by ~e parties hereto. 3 3
9 1
16 '
·CONTRACTOR . California Deparlment of General .
Services Use Only .
ATTEST:
: BERNICE E. SEIDEL
Clerk of the Board of Supervisors
County of Fresno, State of California
. By sj\l>e .. t..-, cl .Deputy
I
.CONTRACTOR'SNAME (if other than an individual,state whether a corporation,partnership, etc.) County of Fresno
DATE SIGNED (Do ~ot type)
ADDRESS
,200 W. Pontiac Way, Building 3, Clovis~CA, 93612
STATE OF CALIFORNIA
i AGENCY NAME
BUSINESS, CONSUME
. Alexis Podesta, Secretary
Business, Consumer Seniices and Housing Agency
ADDRESS
915 Capitol Mall,Suite 360-A, Sacramento, CA 95814
. 0 Exempt per:
Exhibit C
17 of 17
Exhibit D
Exhibit D
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Exhibit D
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Exhibit D
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Exhibit E
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Exhibit F
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Exhibit G
SELF-DEALING TRANSACTION DISCLOSURE FORM
In order to conduct business with the County of Fresno (hereinafter referred to as “County”), members of a contractor’s board of directors (hereinafter referred to as “County Contractor”), must disclose any self-dealing transactions that they are a party to while providing goods, performing services, or both for the County. A self-dealing transaction is defined below:
“A self-dealing transaction means a transaction to which the corporation is a party and in which one or more of its directors has a material financial interest” The definition above will be utilized for purposes of completing this disclosure form.
INSTRUCTIONS
(1) Enter board member’s name, job title (if applicable), and date this disclosure is being made.
(2) Enter the board member’s company/agency name and address. (3) Describe in detail the nature of the self-dealing transaction that is being disclosed to the County. At a minimum, include a description of the following:
a. The name of the agency/company with which the corporation has the transaction; and
b. The nature of the material financial interest in the Corporation’s transaction that the board member has.
(4) Describe in detail why the self-dealing transaction is appropriate based on applicable provisions of the Corporations Code.
(5) Form must be signed by the board member that is involved in the self-dealing transaction described in Sections (3) and (4).
Exhibit G
(1) Company Board Member Information:
Name: Date:
Job
Title:
(2) Company/Agency Name and Address:
(3) Disclosure (Please describe the nature of the self-dealing transaction you are a party to):
(4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233 (a):
(5) Authorized Signature
Signature: Date:
DEPARTMENT OF VETERANS AFFAIRS
VA Central California Health Care System
(VACCHCS)
2615 East Clinton Avenue
Fresno, CA 93703-2223
January 25, 2023
WestCare California, Inc.
1900 N. Gateway Blvd., Ste. 100
Fresno, CA 93727-1625
Re: WestCare California Inc., Letter of Support Emergency Solutions Grant (ESG) Dear Grant Review Committee:
VA Central California Health Care System (VACCHCS) is pleased to support WestCare California’s application for Emergency Solutions Grant (ESG) funding to provide rapid rehousing and homelessness prevention services in the City of Fresno. WestCare California is an important partner, and its work to support and house people experiencing homelessness continues to be greatly needed and highly valued.
Through many collaborations, WestCare California and its partners serve hundreds of people experiencing homelessness in Fresno City each year, including the chronically homeless, veterans, and families. WestCare California is instrumental in providing housing and other supportive programs for these most vulnerable, and deserving, members of our community.
WestCare California is an important leader in enabling Fresno City to reach its goals to end homelessness and preventing its return for individuals and families in need. We look forward to continuing our critical work with WestCare California and improving the quality of life for our entire community.
Respectfully,
Christina Leon, LCSW
Chief, Social Work Service
VA Central Health Care System
2615 E. Clinton Avenue, Fresno, CA 93703 (122)
Christina
Leon 204056
Digitally signed by
Christina Leon 204056
Date: 2023.01.25
12:13:53 -08'00'
January 25, 2023
WestCare California, Inc.
1900 N. Gateway Blvd., Ste. 100
Fresno, CA 93727-1625
Re: Letter of Support for WestCare California, Inc.
Dear Grant Review Committee:
Fresno Housing is pleased to support WestCare California’s application for Emergency Solutions Grant (ESG) funding to provide rapid rehousing and homelessness prevention services in the City of Fresno. WestCare California is an important partner, and its work to support and house people experiencing homelessness continues to be greatly needed and highly valued.
Through many collaborations, WestCare California and its partners serve hundreds of people experiencing homelessness in Fresno City each year, including the chronically homeless, veterans, and families. WestCare California is instrumental in providing housing and other supportive programs for these most vulnerable, and deserving, members of our community.
WestCare California is an important leader in enabling Fresno City to reach its goals to end homelessness and preventing its return for individuals and families in need. We look forward to continuing our critical work with WestCare California and improving the quality of life for our entire community.
Respectfully,
Doreen Eley
Assistant Director, Resident Empowerment
Digitally signed by Doreen T. Eley
DN: DC=org, DC=fha, OU=USR, OU=CO, CN=Doreen T. Eley, E=deley@ fresnohousing.org
Reason: I am the author of this document
Location:
Date: 2023.01.25 15:29:40-08'00'
Foxit PDF Editor Version: 12.0.2
Doreen T. Eley
Whites Bridge
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Clovis
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West
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ClovisFowlerTemperance
De Wolf
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California
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California
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Church
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ArmstrongLocan
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Thompson
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International
Teague
Gould Canal / Redbank Creek
California
State University
Fresno
Fresno
International
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Reclamation Facility
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Official Zoning Map
®
Planning and Development Department
GIS Data Disclaimer: City of Fresno disclaims any responsibility for the accuracy or correctness of the data.
Neither the City of Fresno nor any officer, or employee warrants the accuracy, reliability or timeliness or any of the data provided. In no event shall City of Fresno become liable to users of these data, or any other party, for any loss or damages, consequential or otherwise, including but not limited to time, money, or goodwill, arising from the use, operation or modification of the data. In using these data, users further agree to indemnify, defend, and hold harmless City of Fresno for any and all liability of any nature arising out of or resulting from the lack of accuracy or correctness of the data, or the use of the data.
Date: 3/2/2021
0 1 2 4 6
Miles
Boundaries
City Limits
Fresno Sphere of Influence
Planning Boundary
Overlay Districts
KB - Kearny Boulevard Historic Corridor
CA - California Avenue Transit Corridor
BP - Bluff Preservation
EA - Expressway Area
RM - Residential Modifying
ANX - Annexed Rural Residential
EQ - Equine
M - Mining
AH - Apartment House
UC - Urban Campus
NR - Neighborhood Revitalization
LEGEND
Base Districts
DTC - Downtown Core
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DTN - Downtown Neighborhood
RE - Residential Estate
RS-1 - Residential Single-Family, Extremely Low Density RS-2 - Residential Single-Family, Very Low Density
RS-3 - Residential Single-Family, Low Density
RS-4 - Residential Single-Family, Medium Low Density
RS-5 - Residential Single-Family, Medium Density
RM-MH - Mobile Home Park
RM-1 - Residential Multi-Family, Medium High Density
RM-2 - Residential Multi-Family, Urban Neighborhood
RM-3 - Residential Multi-Family, High Desnity
NMX - Neighborhood Mixed Use
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CH - Commercial Highway and Auto
CRC - Commercial Recreation
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BP - Business Park
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PI - Public and Institutional
Downtown Activity Classifications
Activity Class A
Activity Class B
\ \ \ Activity Class C
City of Fresno
Ordinance Number Date Ordinance Number Ordinance Number Date Ordinance Number Date 2016-2 4-Feb-16 2017-43 24-Aug-17 2018-49 30-Aug-18
2016-3 4-Feb-16 2017-44 24-Sep-17 2018-63 6-Dec-18
2016-4 4-Feb-16 2017-45 31-Aug-17 2019-010 11-Apr-19
2016-8 17-Apr-16 2017-60 26-Oct-17 2019-12 26-May-19
2016-15 12-May-16 2017-61 26-Oct-17 2019-018 25-Jul-19
2016-23 30-Jun-16 2017-63 2-Nov-17 2019-020 15-Aug-19
2016-26 18-Aug-16 2018-7 8-Feb-18 2019-026 22-Aug-19
2016-29 1-Sep-16 2018-8 8-Feb-18 2019-47 5-Dec-19
2016-31 1-Sep-16 2018-9 15-Feb-18 2019-49 12-Dec-19
2016-36 22-Sep-16 2018-16 5-Apr-18 2020-001 16-Jan-20
2016-41 20-Oct-16 2018-20 19-Apr-18 2020-005 15-Mar-20
2016-46 17-Nov-16 2018-30 17-May-18 2020-013 10-May-20
2016-49 1-Dec-16 2018-31 24-May-18 2020-021 18-Jun-20
2016-58 15-Jan-17 2018-49 30-Aug-18 2020-032 27-Aug-20
2017-3 12-Feb-17 2018-63 6-Dec-18 2020-046 15-Oct-20
2017-4 12-Feb-17 2019-10 11-Apr-19 2020-047 15-Oct-20
2017-13 2-Apr-17 2019-12 26-May-19 2020-048 15-Oct-20
2017-27 25-May-17 2019-018 25-Jul-19 2021-003 28-Jan-21 2017-31 9-Jul-17 2019-020 15-Aug-19
2017-32 16-Jul-17 2019-026 22-Aug-19
REZONES
ZONING ADOPTION
Ordinance Number Date
2015-39 3-Dec-15
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
PY 2023-2024 APPLICATION
Homeless and Homelessness Prevention Programs
1. Project Summary Information – please complete the below summary for the project/program.
Project Name (10 words or less): The Living Room
Amount Requested: $ 849,665.00
ESG Applicants Only – please provide a breakdown of amount requested by program component:
Street Outreach: $ .00
Emergency Shelter: $ .00
Homelessness Prevention: $ .00
Rapid Rehousing: $ .00
HMIS: $ .00
This is a:
New Project/Program
Existing Project/Program
Provide a short description of the proposed program/activity. (1 to 3 sentences and must fit in the provided space).
WestCare California, Inc. is the lead agency partnering with Fresno Housing Authority to continue providing housing assistance and related supports for people living with HIV/AIDS and their families in Fresno County. Specific services provided include Short Term Rental and Mortgage Assistance (STRMU), Tenant-Based Rental Assistance (TBRA), transitional housing, homelessness prevention, rapid rehousing, supportive services, and housing information. The primary goals of the proposed program are to help participants achieve both permanent housing and health stability.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
2. Organizational Capacity
a. Describe the organization’s experience with administering federally funded programs of this nature.
WestCare California has provided behavioral health and human services in Fresno County since 1974. Today, WestCare's services fall into five primary domains: Mental Health & Wellness, Treatment & Rehabilitation, Veteran Services, Criminal Justice, Housing Opportunities, and HIV Education & Prevention. WestCare has extensive experience working with a variety of special populations, including people experiencing homelessness, people with substance use and mental health disorders, people living with HIV/AIDS, criminal justice populations, Veterans, and the LGBTQ community.
WestCare has administered the Short-Term Rental Assistance, outreach, and case management components of HOPWA since 2009 and has systems in place for connecting with and helping the high-priority HOPWA subpopulations, including unsheltered homeless persons living in places not intended for human habitation, chronically homeless persons, homeless Veterans, and other highly vulnerable homeless persons such as victims of domestic violence, households with children, and youth aging out of the foster care system. Since 1996, WestCare has operated The Living Room, one of the only community centers for people living with HIV/AIDS in the Central Valley.
With ongoing funding from multiple federal, state, and local agencies including HUD, SAMHSA, Veterans Administration, California Department of Corrections and Rehabilitation, Board of State and Community Corrections, County of Fresno, City of Fresno, and others, WestCare administers 60 separate contracts throughout California with a budget of approximately $60 million and more than 500 staff. WestCare's leadership team possesses decades of experience in administering homelessness prevention and housing programs.
WestCare currently operates several housing programs through a variety of funders including: Housing Opportunities for People with AIDS (HOPWA) and Project Unite under contract with the City of Fresno; Project LiftOFF funded by HUD; and Coordinated Entry for the Fresno Madera Continuum of Care (CoC) also funded by HUD, among others. WestCare has sufficient cash reserves to guarantee at least three months of program service in the event that funding from this source is delayed or unavailable.
b. For how many years has the organization administered activities of the type described in this application?
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
49 c. Does the organization have the following in place (check box if ‘yes’)? Written policies and procedures for the proposed project or program (i.e., intake, eligibility)
Written Financial Management Policies and Procedures
Non-Discrimination / Equal Opportunity Policy
Conflict of Interest Policies and Procedures
Procurement Policies and Procedures
Facility utilization plan and policies
Note: If not, be aware, the City will require a facility utilization plan and policies prior to the execution of a subrecipient agreement.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
d. Provide addresses for each applicable location of site(s) where activity will occur, and a brief description of the facilities.
The Living Room is located at 1330 E Olive Ave, Fresno, CA 93728. The facility has 4 offices for staff, 3 of which are private and can be used for counseling or testing.
The facility also has a kitchen, drop-in center, dining room, living room/group room/tv room, two bathrooms, and a reception area. Outside, there is a patio in the rear, which allows the program to host outside lunches and social events, and a large parking lot. The building is located in Fresno's Tower District, which is an LGBTQ friendly area known for its diversity, vibrant arts scene, and friendly neighbors.
Multiple festivals are held in the area including the annual Gay Pride parade. The Living Room's office is located on multiple bus lines and is ADA accessible.
Maps attached as exhibit H
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
3. Proposed Scope of Work
a. Briefly describe the needs this proposal addresses, and how existing resources are insufficient to meet this need:
Currently, there are more than 2,000 diagnosed people living with HIV/AIDS in Fresno County. WestCare serves approximately 700 of these individuals annually through The Living Room, which provides outreach, housing assistance, HIV/HCV testing, linkages to medical care and PrEP, intensive case management services, support groups, hot meals, financial help, social gatherings, prevention education, and an emergency food pantry, as well as a safe drop-in space for the program's participants.
The Living Room serves a primary target population of Latino men who have sex with men (MSM) who have the highest incidence rates for HIV and AIDS in Fresno County. In fact, most of the HIV transmission in the county has been linked to MSM, who represent more than 85% of total new cases, with the majority of new cases self-identifying as Hispanic.
After achieving an all-time low of new HIV cases in Fresno during the 2000s, in 2011 the HIV transmission rate sky rocketed 73% over the county’s previous fiveyear average. To this day, Fresno’s HIV transmission rates have never returned to pre-2010 levels. Additionally, over the last several years, HIV transmission rates in Fresno County have dramatically increased among people under 35 years of age representing nearly 50% of all new HIV cases occurring in the county. Alarmingly, Fresno’s HIV transmission rates among young adults have even exceeded rates reported in San Francisco, which has a significantly larger population.
In 2009, just before the HIV transmission rates began to increase, the State of California cut more than $80 million from its HIV budget. As a result of these cuts, many community-based organizations dedicated to ending the HIV epidemic in California closed their doors. Although The Living Room managed to survive, it went from serving approximately 400 participants per month down to just over 50 each month, drastically reducing the amount of HIV prevention and education services available in Fresno County. Significant reinvestment is needed to support Fresno’s HIV infrastructure to reverse the rising tide of new HIV cases and chart a new trajectory towards “getting to zero.”
b. Briefly describe the target population and how the project will meet the specific needs of the target population.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
The Living Room's participants are primarily composed of minority racial and ethnic groups who subsist with fixed limited incomes, high unemployment, and inadequate education. Subgroups served that are disparately impacted by HIV/AIDS include people who inject drugs (PWID) and men who have sex with men (MSM), as well as African American and Hispanic individuals.
The Living Room serves marginalized people in need of comprehensive case management services who often require linkages to multiple supportive services in addition to housing, including physical and mental health care, substance use disorder treatment, acquisition of basic educational skills, life skills training, vocational skills and job search assistance, and enrollment in benefits for which the client may not be aware of their eligibility. The Living Room staff is highly experienced in the provision of effective, stigma free services for people who may have many barriers to successful outcomes. All of The Living Room’s programs are person-centered, gender-responsive, and trauma-informed and follow proven, evidence-based practices in service delivery.
c. Describe how the project will be marketed to the target population.
The Living Room will market its services to the target population through regular outreach activities to engage people in need and educate them about available housing assitance and other resources offered in the community by WestCare and other partners in the Fresno Madera Continuum of Care (FMCoC). The Living Room also uses social media as a marketing tool. We have separate Facebook pages for The Living Room and The Fresno AIDS Walk, both of which describe our services, as does our Fresno AIDS Walk web site. The Living Room also does Zoom meetings and presentations with local organizations such as PFLAG, Spectrum Center, TransE-Motion, and The LGBTQ Center. Finally, The Living Room frequently engages medical providers to educate them about services offered.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
d. Summary of Services to be provided:
Select all services to be provided, including those that are not funded by the City.
Emergency Shelter
Transitional Housing
Homeless Prevention/Housing Assistance
Homeless Diversion
Mental Health/Other Services
- Individual and Family Counseling
- Drug/Alcohol Treatment
- Job Training
- Children’s Program
- Parenting education
- Domestic Violence Intervention
- Self-Sufficiency Skills Training
- Outreach
- Assessment of Needs
Permanent Housing with Supportive Services
Affordable Housing
Job Training/ Job Search
Women’s Program
Day Care
Youth Program
Access to Medical
Immigration Assistance
Fair Housing Assistance
Academic Support/Tutoring
Referral Services
Case Management
Provide Meals
Free Services
Business Development to micro-enterprise
Other (specify):transportation assistance
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
e. Estimate the number of unduplicated persons expected to benefit from the project:
550 unduplicated persons will receive a direct benefit from this project. f. Please indicate which of these service types will be provided and the number of unduplicated persons who will benefit.
Check if
Providing Public and Community Service Types Estimated No. Persons Assisted Operating Cost of Shelters for Persons
who are homeless or impacted by
HIV/AIDS
Rental Assistance/Subsidy 150
Supportive/Essential Services (not
duplicated with services provided in
conjunction with another activity)
100
Housing information services (not
duplicated with services provided in
conjunction with another activity)
300
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
g. Describe the homeless or homelessness prevention service program. Please include information about barriers to program participation and how the activity will address those barriers, and any information about how the activity was developed or refined in consultation with the target population. Limit description to the space provided on this and the next page.
WestCare is seeking continued funding for a collaborative program with the Fresno Housing Authority (FHA). Under this agreement, the program will provide provide Short-Term Rent, Mortgage, or Utility Assistance (STRMU) for 40 households, Tenant-Based Rental Assistance (TBRA) for 20 households, and 6 units in transitional short-term housing facilities developed, leased, or operated with HOPWA funds. All participants in this program will be individuals and families affected by HIV/AIDS who are homeless or at-risk of homelessness.
WestCare's proposed activities are consistent with the priorities outlined in the City of Fresno 2020-2024 Consolidated Plan. The specific priority addressed under this application is for "Homelessness and the Prevention of Homelessness" to "provide assistance for the homeless and those at risk of becoming homeless through safe low-barrier shelter options, housing first collaborations, and associated supportive services." WestCare's proposed services are consistent with the plan’s priorities regarding homelessness, will help participants regain housing stability, and are grounded in the Housing First approach.
WestCare and partners provide all aspects of homeless housing and homelessness prevention including emergency shelter, transitional housing, housing relocation, rental assistance and housing stabilization, linkages to care and access to substance use disorder treatment services, and case management. The Consolidated Plan's HOPWA-specific goals continue to prioritize short-term rent, mortgage, and utility assistance (STRMU), tenant-based rental assistance (TBRA); and transitional housing. WestCare and FHA are currently providing these services, plus outreach, case management, and supportive services. All clients who are assessed for housing are entered into a database for consideration for Section 8 vouchers.
WestCare expects to identify and serve 550 individuals during the grant term (150 individuals will receive rental subsidies, 100 individuals will receive supportive services, and 300 individuals will receive housing information). The program will continue to target the high priority sub-populations of people living with HIV/AIDS, including unsheltered homeless individuals living outdoors or in places not intended for human habitation, chronically homeless individuals, homeless Veterans, youth aging out of foster care, domestic violence victims, and households with children.
Participants will continue to be identified through outreach and partnerships including the Fresno Madera Continuum of Care, Marjaree Mason Center, San Joaquin Valley Veterans, The Living Room, Community Regional Medical Center, Kaiser Permanente, LGBTQ organizations, referrals from other agencies, self-referrals, and walk-ins.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
Detailed Narrative Description of Project/Program (Continued from previous page) Eligibility will be determined using: 1) Documented medical diagnosis of HIV/AIDS of at least one member of the household; 2) Documented living situation of homelessness or at-risk for homelessness; and 3) Documented low-income status at or below 80 percent of the area median income (AMI). Priority will be given to those households documenting residency in the City of Fresno, Fresno County, and living at or below the poverty level.
All of the program's proposed services will provide participants and their families with appropriate, safe, high-quality, stable housing, and the case management and supportive services they need to maintain mental, physical, and emotional health.
Eligible activities and services to be provided include: 1) Short-Term Rent, Mortgage, or Utility Assistance (STRMU) for 40 households; 2) Tenant-Based Rental Assistance (TBRA) for 20 households; and 3) 6 units provided in transitional short-term housing developed, leased, or operated with HOPWA funds. Additionally, WestCare will continue to provide housing information services including counseling, information, and referral/linkage. Supportive services provided will continue to include a detailed needs assessment using the Vulnerability Index and Service Assessment Tool (VI-SPDAT), intensive case management, permanent housing placement, substance use disorder treatment, personal assistance, nutritional services, transportation, assistance in enrolling in public benefits, hot meals, and an emergency food pantry. All services are entered into HMIS.
People experiencing homelessness face formidable barriers, including lack of reliable transportation, need for childcare, lack of steady work history and/or inadequate preparation for employment, little or no income, food scarcity, and the inability to navigate complex systems. WestCare mitigates these factors through comprehensive services including providing transportation to appointments, linking participants to medical and mental health providers, substance use disorder treatment, vocational and educational services, assistance enrolling in public benefits, and the provision of hot meals and an emergency food pantry.
At WestCare, we believe that getting feedback from participants is the best way to continuously improve the effectiveness and efficiency of our programs. To this end, participant satisfaction surveys are issued to clients to receive feedback on services from their perspective. The goal of these surveys is to gather participant’s opinions about the program and determine how satisfied they were with the services they received. These surveys are critical to WestCare’s program design process because the information they collect can help program leadership to identify any shortcomings the program may have, discover any unmet needs that participants may have, and determine areas for improvement. The surveys ask for participant feedback on a number of important program areas, including their satisfaction with the program’s location and facility quality, enrollment and intake processes, content of services provided, length of services provided, satisfaction with staff members, cultural competence, and achieved outcomes.
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
h. Collaboration
Briefly describe any collaboration efforts with other organizations for this project/program or related initiatives.
Collaborating Organization Description of Collaboration Fresno Housing Authority Tenant-Based Rental Assistance Kaiser Permanente primary medical care
Specialty Services Clinic at
Community Regional Medical
Center
primary medical care
Clinica Sierra Vista primary medical care
Trans-E-Motion support groups, community education
Spectrum Center LGBTQ programming, social and community events Avita Pharmacy PrEP
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
4. Project/Program Budget
a. Activity Budget by Funding Type
Please provide a high-level summary of the total budget by federal and nonfederal funds.
Proposed Activity Budget Amount
Total ESG, HOPWA, and/or CDBG Funds Requested $1,098,623.71 Total Other Federal Funds (do not include the above funds on this line)
$0
Total Non-Federal Funds $248,958.71
Total Proposed Activity Budget $1,347,582.42
b. List of Funding Sources
Provide all planned funding anticipated/ committed for this activity for FY 2023- 2024. If the organization has received funding commitment letters, please attach as an exhibit to this application.
Funding Source (Name of
Funder)
Name of
Funding
Program (if
applicable)
Dollar Amount
Commitment
Status
(Committed
or Pending)
If Pending,
Expected
Commitment
Date
PY23-24 Consolidated NOFA Part B
Application – Homeless and Homelessness Prevention
c. Activity Budget Summary and Narrative
Please complete Exhibit A – Operating Budget Summary.
The above referenced Budget worksheet is available in Excel format at www.fresno.gov/housing under ‘Notices of Funding Available.’ Please complete Exhibit B – Budget Narrative to provide a brief explanation of the expenses included in the budget.
d. Prior-Year Financial Statement
For existing programs, please attach a financial statement labeled as Exhibit B for the proposed program for the last full operating year. Failure to provide the financial statement will result in disqualification.
Attachments to Part B Application:
EXHIBIT A – OPERATING BUDGET SUMMARY
EXHIBIT B – BUDGET NARRATIVE
EXHIBIT C – HOMELESS AND HOMELESSNESS PREVENTION ESG SOURCES
AND AMOUNTS OF MATCH AND MATCH QUESTIONAIRE
EXHIBIT D – PRIORYEAR AUDITED FINANCIAL STATEMENT INCLUDING
STATEMENT OF ACTIVITIES, STATEMENT OF FINANCIAL POSITION AND
STATEMENT OF CASH FLOWS (REQUIRED WHEN TOTAL FEDERAL GRANT AWARDS EQUALED OR EXCEEDED $750,000 DURING THE ANNUAL AUDIT PERIOD); OR
EXHIBIT E – PRIOR-YEAR UNAUDITED FINANCIAL STATEMENT WHEN TOTAL
FEDERAL GRANT AWARDS FOR THE ANNUAL AUDIT PERIOD WAS LESS THAN $750,000
Optional Additional Exhibits:
EXHIBIT F – FUNDING COMMITMENT LETTERS (IF AVAILABLE)
EXHIBIT G – LETTERS OF SUPPORT (OPTIONAL-MAXIMUM 2)
EXHIBIT H – SERVICE AREA MAP (REQUIRED IF NOT DESCRIBED IN 2.d.) Salaries & Wages Fringe Benefits
Totals
(City of Fresno HUD
Funds)
Other Federal
Funds State Funds Local Govm'tFunds
Private / Donor
Funds
Other Funds
(specify)
Salaries/Wages (Specify each position; add additional rows as needed) Direct Service Personnel:
Program Director 75,000.00 17,550.00 92,550.00 92,550.00 Lead Case Manager/Outreach
$28.00/hr 58,240.00 13,628.16 71,868.16 71,868.16 Outreach Specialist/Case Manager
$25.00/hr 52,000.00 12,168.00 64,168.00 64,168.00 Kitchen Assistant $19/hr ‐ 0.6 FTE 23,712.00 5,548.61 29,260.61 29,260.61 Client Services Navigator $22/hr 45,760.00 10,707.84 56,467.84 56,467.84 Administrative Assistant $21/hr 43,680.00 10,221.12 53,901.12 53,901.12 Administrative Personnel:
‐ ‐
‐ ‐
‐ ‐
Independent Contractors / Consultants:
TBRA ‐ Fresno Housing Authority 78,000.00 78,000.00 78,000.00 ‐ ‐
TOTAL PERSONNEL BUDGET $ 298,392.00 $ 69,823.73 $ 368,215.73 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 368,215.73 Occupancy, Supplies, and Other Operating
Facility Lease/Rent $ 41,322.00 41,322.00 41,322.00 Utilities 13,260.00 13,260.00 13,260.00 Repairs/Maintenance 5,000.00 5,000.00 5,000.00 Supplies/Expendable Equipment 4,500.00 4,500.00 4,500.00 Auto Lease 22,188.00 22,188.00 22,188.00 Staff Travel/Fuel/Training 7,850.00 7,850.00 7,850.00 HMIS Licensing 990.00 990.00 990.00 Communications 7,405.08 7,405.08 7,405.08 Client Needs 18,548.00 18,548.00 18,548.00 Client Travel 2,430.00 2,430.00 2,430.00 Employee Recruitment 1,500.00 1,500.00 1,500.00 ‐ ‐
Other (Specify) ‐
TOTAL OCCUPANCY, SUPPLIES AND
OTHER OPERATING BUDGET $ 124,993.08 $ 124,993.08 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 124,993.08 INDIRECT COSTS (Select 1 indirect rate Only)
Approved Cost Allocation Plan Rate
26% 164,391.19 164,391.19 164,391.19 De minimus 10 % Rate ‐ TOTAL INDIRECT COST BUDGET 164,391.19 $ 164,391.19 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 164,391.19 Program Expense Budget
Grant Assistance to Beneficiaries ‐
Sober Living (15 persons / 30 days /
$33/day)
15,000.00 15,000.00 15,000.00 Bed Days/SUD Treatment (5 people /
30 days/$110/day) 16,500.00 16,500.00 16,500.00 Bridge Housing (3 units ‐ #208, #213,
TBD Dakota Ln) @ $995/unit/month +
deposit
36,000.00 36,000.00 36,000.00 Short‐Term Rent, Mortgage, Utilities
(STRMU) 46,565.00 46,565.00 46,565.00 Loans to Beneficiaries ‐ Other (Specify) ‐ TOTAL PROGRAM EXPENSE BUDGET 114,065.00 $ 114,065.00 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 114,065.00 TOTAL PROJECT BUDGET $ 779,841.27 $ 69,823.73 $ 849,665.00 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 849,665.00 * Please revise this form and annotate budget items as needed All applicants are required to submit a copy of their organization’s operating budget.
CITY OF FRESNO
OPERATING BUDGET SUMMARY (non‐capital projects)
Budgeted Position (Personnel) or
Category (Operations)
City of Fresno HUD Funds Other Funds for Project
Project Totals (All
Funds)
WestCare California
Program Director The Program Director will be responsible for oversight of the program and scope of work. This position will approve all purchases to ensure costs are within budget, monitor data for contract compliance, submit performance reports, and will provide supervision through direct observation and follow‐up training.
Lead Case Manager Person in this position will be responsible for providing programmatic leadership and oversight of a caseload for the program. Responsible for the coordination of client care by collaborating with multidisciplinary healthcare professionals and other community‐ based programs as needed to provide and facilitate services toward housing stability and client self‐efficacy. Lead Case Manager will meet with each client twice monthly, or as needed to provide support and assistance towards achieving each Individualized Housing Plan. This full time position will be paid at $28/hour.
Outreach Specialist/Case Manager This staff member will be responsible for a caseload of PLWA, and coordinating and facilitating outreach efforts in the greter Fresno community; prioritizing efforts in the rural communities that are greatly underserved. The Case Manager will meet with each client at least once weekly to provide support and assistance towards achieving each Individualized Service Plan. This 1.0 FTE will be paid at $25/hour.
Kitchen Assistant The Kitchen Assistant will ensure meals are prepared on Tuesday, Wednesday and Thursday and are in accordance with safe food handling guidlines. They will also provide maintenance of the food pantry and prepare and distrubute grocery bags to program participants. This part‐time position will work on‐site a total of 24 hours per week (0.6 FTE) and will be paid $19/hour.
Fringe Benefits Calculated at 23.4% of total salaries
Facility Lease/Rent This line item represents the cost of rented space to be used for the day‐to‐day operations of the program. Office space, reception area, restrooms, kitchen, food pantry, etc. Estimated costs are $3,443.50/month.
Utilities This line item represents the cost of electricity, natural gas, water/sewer, trash removal, alarm service, and other utility costs allocated per the rented space to be used by the program. Calculated at an estimated $1,105 per month x 12 months.
Repairs/Maintenance This line item represents the repairs/maintenance/remodel of office space for staff to be used for the program calculated at an estimated cost of $5,000 for the year or $416.67 per month for 12 months.
Supplies/Expendable Equipment This line item represents the cost of consumables such as paper, pens, clipboards, toner, staples, etc. for the program staff/facility in addition to the cost of copier/printer/scanner lease. Calculated at an estimated $250 per month x 12 months.
Auto Lease Line item represents the cost of one truck leased at $1,050/month for 12 months.
Staff Travel/Training/Fuel Costs/Vehicle
Maintenance
Cost of fuel for leased vehicles, mileage reimbursements for staff who use their personal vehicle for program related travel, and vehicle maintenance. Additionally, cost allocated for staff attendance at USCHA 2023, and other potential colloabrative opportunities within the PY. Calculated at an estimated $5,050 for the PY.
HMIS Licensing Cost of two staff to be HMIS licenced at $330 per license.
Communications For the monthly connectivity fees associated with the program cell phones to be used by HOPWA program staff, desk phone, fedex cost , internet/cable, etc. Calculated at $398.26 per month x 12 months.
Client Needs This line item represents the cost of providing assistance with client fiscal barriers to self ‐ sufficiency, such as license renewals, apartment application fees, childcare costs, vehicle repair costs, etc. Calculated at an estimated $1,545.67 per month x 12 months.
WestCare California, Inc.
City of Fresno HOPWA
PY22‐23 CoF ‐ FY24‐25 WCCA
Supportive Services
Employee Recruitment This line item represents the recruiting of staff, Indeed, physical exams, lab work, etc. at $1,500/year.
Sober Living Funds to provide assistance to clients for short‐term stay in sober environment for 15 clients / 30 days / $33 per day. Estimated at $1,250 per month x 12 months.
Bed Days/SUD Treatment Funds to provide substance use disorder (SUD) assistance to clients for short‐term stay in sober environment for 5 clients / 30 days / $110 per day. Estimated at $1,375 per month x 12 months.
Bridge Housing This line represents the cost of three apartments located on Dakota Lane, leased by the program at a cost of $995/unit x 3 units x 12 months.
Client Services Navigator This individual will be resposnible for providing ancillary support to HOPWA eligible participants to address needs related to achieving self‐efficacy; scheduling and transporting clients to healthcare appointments, assisting with documentation needs, filling out applications and providing hands‐on navigation services to ensre appropriate linkages are made.
Administrative Assistant Position to assist clients at front desk and in the operation/support of HOPWA office functions. Position is 1.0 FTE and will be paid at $21/hour.
Fringe Benefits Calculated at 23.4% of total salaries
Supplies/Expendable Equipment This line item represents the cost of consumables such as paper, pens, clipboards, toner, etc.; for the program staff/facility. Calculated at an estimated $125 per month x 12 months.
Staff Travel/Training/Fuel Costs/Vehicle
Maintenance
Cost of fuel for leased vehicles, mileage reimbursements due to staff for use of their personal vehicle for program related travel, and vehicle maintenance. Additionally, cost allocated for possible staff training during the PY. Calculated at an estimated $2,800 for the PY.
Auto Lease Line item represents the cost of one car leased at $799/month for 12 months.
Client Travel This line item represents the cost of client transportation via bus passes, etc.
Calculated at $202.50 per month.
HMIS Licensing Cost of one employee to be HMIS licenced at $330 per license.
Communications For the monthly connectivity fees associated with the program cell phones to be used by HOPWA program staff, desk phone, fedex cost , internet/cable, etc. Calculated at $218.75 per month x 12 months.
TBRA
Contractual TBRA‐FHA Contracted housing assistance through the Fresno Housing Authority for HOPWA clients as a part of the TBRA Voucher program. Cost include FHA staff hours and rental assistance, calculated at $6,500 per month for 12 months.
STRMU
Others‐STRMU Short‐Term Rent, Mortgage, Utilities assistance for HOPWA clients in need of such services. Calculated at an average monthly cost of $3,880.42 per month for 12 months.
Indirect Costs Costs are comprised of administrative personnel and other such costs that support the program and are not covered in the line item budget. These costs include, but are not limited to, management, accounting, auditing, payroll, human resources, and technical support. Calculated at 26% of direct costs.
Housing Information Referral Services
Emergency Shelter
WESTCARE CALIFORNIA, INC.
FINANCIAL STATEMENTS
AND SUPPLEMENTAL INFORMATION
JUNE 30, 2021
WESTCARE CALIFORNIA, INC.
REPORT ON FINANCIAL STATEMENTS
JUNE 30, 2021
TABLE OF CONTENTS
PAGE
Independent Auditor’s Report 1-2
Financial Statements:
Statement of Financial Position 3
Statement of Activities 4
Statement of Cash Flows 5
Statement of Functional Expenses 6
Notes to the Financial Statements 7-13
Supplemental and Other Information:
Schedule of Expenditures of Federal Awards 14
Notes to Schedule of Expenditures of Federal Awards 15
Schedule of Findings and Questioned Costs 16
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 17-18
Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance 19-20
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WestCare California, Inc. as of June 30, 2021 and the change in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Supplemental and Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedules of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 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.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2021, on our consideration of WestCare California, Inc.’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 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 WestCare California, Inc.’s internal control over financial reporting and compliance.
Fresno, California
December 15, 2021
2 WESTCARE CALIFORNIA, INC.
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2021
ASSETS
Cash and Cash Equivalents $ 6,911
Grant Contracts Receivable 9,421,691
Prepaid Expenses 205,949
Cash Restricted for Client Funds 272,983
Cash Restricted for Program Funds 1,208,323
Due from Related Organization 2,504,457
Property and Equipment, Net 4,567,553
Total Assets $18,187,867
LIABILITIES
Accounts Payable and Accrued Expenses $ 4,429,244
Accrued Salaries and Related Expenses 1,458,502
Due to Clients (Contra) 247,089
Deferred Revenue 3,599,578
Total Liabilities $ 9,734,413
NET ASSETS
Without Donor Restrictions 8,453,454
Total Net Assets 8,453,454
Total Liabilities and Net Assets $18,187,867
See accompanying notes to financial statements
3 WESTCARE CALIFORNIA, INC.
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2021
Change in Net Assets Without Donor Restrictions
Revenues and Other Support
Federal Contract Revenue $ 8,754,067
State Contract Revenue 5,427,937
STOP Contract 9,451,423
STOP Aftercare 17,491,372
County Contract Revenue 11,005,789
City Contract Revenue 1,068,625
Other Contract Revenue 518,086
Client Fees 1,486,813
Donations and Gifts 12,392
Stimulus Funds 702,775
Other Revenue 18,098
Total Revenues and Other Support
Without Donor Restrictions $ 55,937,377
Expenses
Program Services
Grants and Program Support 47,163,977
Total Program Services 47,163,977
Supporting Services
General and Administrative 8,449,650
Total Supporting Services 8,449,650
Total Expenses 55,613,627
Change in Net Assets Without Donor Restrictions 323,750 Net Assets, Beginning of Year 8,129,704
Net Assets, End of Year $ 8,453,454
See accompanying notes to financial statements
4 WESTCARE CALIFORNIA, INC.
STATEMENT OF CASH FLOWS
JUNE 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Change in Net Assets Without Donor Restrictions $ 323,750 Adjustments to Reconcile Change in Net Assets
To Net Cash Provided by Operating Activities:
Depreciation 330,962
(Increase) or Decrease in:
Grants Receivable (2,727,082)
Prepaid Expenses 42,851
Increase or (Decrease) in:
Accounts Payable and Accrued Expenses 319,346
Accrued Salaries and Related Expenses 106,268
Clients Funds (Contra) 42,177
Deferred Revenue 2,850,404
Net Cash Provided/(Used) in Operating Activities $ 1,288,676 CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment (484,322)
Net Cash Provided/(Used) in Investing Activities (484,322) CASH FLOWS FROM FINANCING ACTIVITIES:
Advances to Related Organization (1,284,988)
Net Cash Provided/(Used) in Financing Activities ( 1,284,988) Net Increase (Decrease) in Cash, Cash Equivalents, and
Restricted Cash (480,634)
Beginning Cash, Cash Equivalents, and Restricted Cash 1,968,851 Ending Cash, Cash Equivalents, and Restricted Cash $ 1,488,217 Supplemental Disclosure:
Interest Paid $ --
See accompanying notes to financial statements
5 P R O G R A M S E R V I C E S
GENERAL
FEDERAL STATE LOCAL OTHER PROGRAM TOTAL AND TOTAL
GRANTS GRANTS GRANTS GRANTS SUPPORT PROGRAM FUNDRAISING ADMINISTRATIVE EXPENSES
SALARIES AND RELATED EXPENSES
Salaries $ 2,429,388 $ 6,046,349 $ 7,573,339 $ 193,608 $ 545,711 $ 16,788,395 $ - $ 642,652 $ 17,431,047 Payroll taxes and employee benefits 394,229 519,168 740,058 14,074 98,906 1,766,435 - 2,360,490 4,126,925 TOTAL SALARIES AND RELATED EXPENSES 2,823,617 6,565,517 8,313,397 207,682 644,617 18,554,830 - 3,003,142 21,557,972
OTHER EXPENSES
Building occupancy 216,944 719,527 692,580 10,716 28,342 1,668,109 58,915 1,727,024 Travel 9,778 42,881 43,290 211 1,219 97,379 13,180 110,559 Equipment costs 45,082 264,853 91,415 79,165 7,853 488,368 40,568 528,936 Repair and Maintenance 31,806 128,775 121,672 2,409 13,792 298,454 20,467 318,921 Vehicles 168,898 145,824 184,394 25,636 1,841 526,593 6,557 533,150 Food costs 19,845 467,317 325,640 14,958 5,689 833,449 188 833,637 Program Assistance and Supplies 3,906,011 722,151 1,129,558 90,924 34,465 5,883,109 20,412 5,903,521 Purchased Aftercare 17,491,372 17,491,372 - 17,491,372
Interest and Taxes 16,363 5,282 4,103 1,895 474 28,117 31,132 59,249 Operating supplies and expenses 121,647 269,211 236,522 9,960 33,894 671,234 673,024 1,344,258 Professional services 30,670 115,680 290,514 2,400 600 439,864 214,525 654,389 Management/Administration - - - - - - 4,219,677 4,219,677 TOTAL OTHER EXPENSES 4,567,044 20,372,873 3,119,688 238,274 128,169 28,426,048 - 5,298,645 33,724,693
TOTAL EXPENSES BEFORE DEPRECIATION
7,390,661 26,938,390 11,433,085 445,956 772,786 46,980,878 - 8,301,788 55,282,665 Depreciation 1,184 39,755 129,083 - 13,077 183,099 - 147,863 330,962 TOTAL EXPENSES $ 7,391,845 $ 26,978,145 $ 11,562,168 $ 445,956 $ 785,863 $ 47,163,977 $ - 8,449,650 $ 55,613,627 See accompanying notes to financial statements
WestCare California, Inc.
STATEMENT OF FUNCTIONAL EXPENSES
Year Ended June 30, 2021
6 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1 – ORGANIZATION AND NATURE OF ACTIVITIES:
Organization and Nature of Activities: WestCare California, Inc. is a tax exempt, nonprofit corporation governed by a volunteer board of directors incorporated in 1999 whose purposes include, but are not limited to the following:
A. To promote public awareness about chemical dependency and related issues and problems; and,
B. To promote recovery from chemical dependency and or related illnesses, through developing, establishing and/or maintaining of centers for the rehabilitation of individuals and their families.
C. To promote the health and well being of all citizens.
The Organization provides residential and out-patient rehabilitation programs, criminal justice programs, health related and a variety of prevention programs and services all of which are related to the purposes for which it is established.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting: The accompanying financial statements of the Organization have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America.
Basis of Presentation: Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets of the Organization and changes therein are classified as follows:
Net assets without donor restrictions: Net assets that are not subject to donorimposed restrictions and may be expended for any purpose in performing the primary objectives of the Organization. These net assets may be used at the discretion of Management and the Board of Directors.
Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of the Organization or by the passage of time.
Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity.
7 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Measure of Operations: The statement of activities reports all changes in net assets, including changes in net assets from operating and non-operating activities. Operating activities consist of those items attributable to the Organization’s ongoing activities.
Non-operating activities are limited to resources that generate return from investments and other activities considered to be of a more unusual or nonrecurring nature.
Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures contained in the financial statements. Actual results could differ from those estimates.
Cash and Cash Equivalents: For purposes of the statement of cash flows, the Organization considers investments available for current use with an initial maturity of three months or less to be cash equivalents.
Concentrations of Credit Risk: Financial instruments that potentially subject the Organization to concentration of credit risk are cash and receivables. Concentration of credit risk with respect to receivables is limited because a substantial portion of these balances are due from federal and state governmental agencies. Management believes the Organization is not exposed to any significant credit risk on cash. The Organization maintains its cash in various bank accounts that, at times, may exceed federally insured limits. These accounts have been placed with high credit quality financial institutions.
On June 30, 2021, the Organization had cash in excess of the FDIC insured limit in the amount of $497,533.
Receivables: Receivables are stated at the amount management expects to collect from balances outstanding at year end. The receivables are primarily contracts and/or grants from funding sources for services performed under cost reimbursement contracts. It is the practice of the Organization to record an allowance for doubtful accounts. Bad debts are charged to the allowance account as incurred. Based on management’s assessment of receivables it has concluded that an allowance is not necessary on June 30, 2021. Balances that are still outstanding after management has used reasonable collection efforts are written off to bad debt expense.
Revenue and Revenue Recognition: Revenue is recognized when earned. Program service fees and payments received in advance are deferred to the applicable period in which the related services are performed, or expenditures are incurred, respectively.
Contract Revenue: Revenue under some third-party payor agreements is subject to audit and retroactive adjustments. Provisions for estimated third-party payor settlements are provided in the period the related services are rendered, if determinable. 8 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Contributions: Contributions are recorded as income at the estimated value at date of receipt as net assets without donor restrictions or net assets with donor restrictions, depending on the existence and/or nature of any donor-imposed restrictions. No donations with donor-imposed restrictions have been received.
Conditional Promises to Give: Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return, are not recognized until the conditions on which they depend have been substantially met. Conditional gifts received prior to the satisfaction of conditions are recorded as refundable advances.
Donated Services and In-Kind Contributions: Volunteers contribute significant amounts of time to our program services, administration, and fundraising and development activities; however, the financial statements do not reflect the value of these contributed services because they do not meet recognition criteria prescribed by generally accepted accounting principles. Donated goods are recorded at fair value at the date of donation.
Donated services are recorded at the respective fair values of the services received. No significant contributions of such goods or services were received during the year ended June 30, 2021.
Due to/from related parties: Amounts as due to/from related parties, included in the accompanying statements of financial position, arise principally from the collaborative activities between the affiliates to further the mission of the Organization.
Property and Equipment: The Organization capitalizes property and equipment over $5,000. Lesser amounts are expensed. Purchased property and equipment is capitalized at cost. Donations of property and equipment are recorded as contributions at their estimated fair value. Such donations are reported as unrestricted contributions unless the donor has restricted the donated assets to a specific purpose. The cost of maintenance and repairs is charged to expense as incurred, significant renewals and betterments are capitalized. Property and equipment are depreciated using the straightline method over the estimated useful lives of the assets.
Compensated Absences: The Organization’s policy allows employees to accumulate vacation and sick leave based on the length of service, position, and other factors.
Accrual of vacation time is included in the accompanying financial statements. The total amount accrued for vacation on June 30, 2021 was $732,605.
Income Taxes: The Organization qualifies as a not-for-profit organization as described in Section 501 (c)(3) of the Internal Revenue Code and is tax exempt from federal and state income taxes, therefore no provisions for income taxes have been made.
Management is of the opinion that there is no unrelated business income subject to taxation. Management is also of the opinion that there are no material uncertain tax positions. All tax returns have been appropriately filed by the Organization. 9 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
Functional Expenses: The financial statements report certain categories of expenses that are attributable to more than one program or supporting function. Therefore, these expenses require allocation on a reasonable basis that is consistently applied. The costs of providing the various programs and supporting services have been summarized on a functional basis in the statement of activities. The statement of functional expenses presents the natural classification detail of expenses by function. Such expenses are charged to grant programs and supporting services on the basis of program costs.
General and administrative costs include those expenses that are not directly identifiable with any specific program but provide for the overall support of the Organization. Accordingly, certain costs have been allocated among program services and supporting services benefited. Such allocations are determined by management on an equitable basis.
Salaries and benefits are charged directly to the program for which work has been done based on time and effort. Other expenses and overhead costs are based on staff allocation to functional areas.
NOTE 3 – CASH AND CASH EQUIVALENTS:
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the amounts shown in the statement of cash flows:
Cash and Cash Equivalents $ 6,911
Cash Restricted for Client Funds 272,983
Cash Restricted for Program Funds 1,208,323
Total Cash, Cash Equivalents, and Restricted Cash
shown in the Statement of Cash Flows $1,488,217
NOTE 4 – RESTRICTIONS ON ASSETS:
Restrictions, if any, on assets as of June 30, 2021, are related to grant awards and/or lending agreements. Such assets must be used in accordance with the purposes established by laws and regulations of the grants or agreements in contrast with unrestricted funds over which the governing board remained full control to use in achieving any of its organizational purposes.
Separate cash accounts are maintained as required by grant and/or lending agreements. The Organization also holds cash in trust for participants in various programs.
10 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 5– LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS:
The following reflects the Organization’s financial assets available within one year of the statement of financial position date. There are no amounts reduced and not available for general use because of donor-imposed restrictions or long-term investments.
Cash and cash equivalents $ 6,911
Grant contracts receivable 9,421,691
Total available for general expenditures $9,428,602
As part of the Organization’s liquidity management, it utilizes a zero-balance account (zba) with WestCare Foundation, Inc., a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented. This cash pooling system is designed to leave in the current accounts of the subsidiaries the minimum amounts to be able to deal with their debts contracted. The advantage of this system is to centralize the cash to be able to obtain better rates. In addition, the Organization transfers amounts as needed to meet cash flow needs through a related affiliate, WestCare Foundation, Inc.
NOTE 6 – PROPERTY AND EQUIPMENT, NET:
Property and equipment, net consisted of the following on June 30, 2021:
Land $ 391,095
Buildings and Improvements 5,914,618
Leasehold Improvements 1,261,595
Furniture and Fixtures 359,470
Computer Equipment 122,759
Vehicles 649,894
Construction in Progress 18,528
8,717,959
Less: Accumulated Depreciation (4,150,406)
Total Property and Equipment, Net $4,567,553
For the year ended June 30, 2021, depreciation expense totaled $330,962.
NOTE 7 – EMPLOYEE BENEFIT PLAN:
The Organization has a 401(k)-retirement plan covering eligible employees held with Voya Financial with a Safe Harbor Match. The Organization’s match is 3% of each qualified employee’s basic contribution plus an additional $.50 for each $1 contributed for the next 2% earnings. Plan contribution by the Organization for the year ended June 30, 2021 was $194,256.
11 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 8 – COMMITMENTS AND CONTINGENCIES:
Operating Leases:
As of June 30, 2021, the Organization had entered into various non-cancellable operating lease agreements for real property. The approximate minimum future commitments on an annual basis are as follows: 2021 $510,488, 2022 $350,533, 2023 $320,053, 2024 $280,484, 2025 $114,828 and thereafter $-0-.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the statement of financial position for most leases with a term longer than 12 months. The effective date for this standard has been delayed to reporting periods beginning after December 15, 2021.
Contingencies:
Federal Grants – The Organization receives financial assistance from the federal government in the form of grants and entitlements. Receipt of grants is generally conditioned upon compliance with terms and conditions of the grant agreements and applicable federal laws and regulations, including the expenditure of resources for eligible purposes. Accordingly, expenditures financed by these programs are subject to financial and compliance audits by the grantor agencies, which could result in request for reimbursement by the grantor agencies for expenditures, if disallowed by the granting agencies, cannot be determined at this time. Management believes that such disallowances, if any, will not have a material adverse effect on the financial position of the Organization.
NOTE 9 – DEFERRED REVENUE:
Deferred revenue consists of the following amounts as of June 30, 2021:
Donation from Bezos Day one Families for Homeless $2,501,254 Contra Costa – COVID Rate 317,854
Kaiser Madera Street2Home 150,000
BSCC 143,000
St. Agnes Medical Center 116,744
Sierra Health Foundation to Support Telehealth 102,044
Other 268,682
$3,599,578
NOTE 10 – ECONOMIC DEPENDENCY:
The Organization receives a significant portion of its support and revenues from contracts and/or agreements with agencies of the Government of the United States. The Organization’s ability to continue operating is predicated on the government’s continued support and funding of its programs. The continuation of program services in the subsequent year is expected based on contract renewals and continuations received to date. A significant reduction in the level of this funding, if this were to occur, could have an adverse effect on the programs and activities.
12 WESTCARE CALIFORNIA, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 11 – RELATED PARTY TRANSACTION:
WestCare Foundation, Inc. is a managing and governing oversight organization for WestCare California, Inc. During the year ending June 30, 2021, WestCare Foundation, Inc. received management fees for general and administrative expenses of $4,219,677 from WestCare California, Inc.
In addition, WestCare California, Inc. has advanced funds as of June 30, 2021 to WestCare Foundation, Inc. for $2,504,457.
NOTE 12 – COVID-19 PANDEMIC:
The COVID-19 pandemic, whose effects first became known in January 2020, is having a broad and negative impact on commerce and financial markets around the world. The United States and global markets experienced significant declines in value resulting from uncertainty caused by the pandemic. The Organization is closely monitoring its liquidity and is actively working to minimize the impact of these declines. The extent of the impact of COVID-19 on the Organization’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its impacts on the Organization’s customers, employees, and vendors, all of which at present, cannot be determined. Accordingly, the extent to which COVID-19 may impact the Organization’s financial position and changes in net assets and cash flows is uncertain and the accompanying financial statements include no adjustments relating to the effects of this pandemic.
NOTE 13 – SUBSEQUENT EVENTS:
The Organization has evaluated subsequent events through December 15, 2021, the date which the financial statements were available to be issued and has determined that there were no events occurring during that period that required disclosure to the accompanying financial statements.
END OF NOTES TO THE FINANCIAL STATEMENTS
13 WESTCARE CALIFORNIA, INC.
SUPPLEMENTAL MATERIAL
Pass through Federal Federal Transfers to
Identifying # CFDA# Expenditures Subrecipients
US Department of Housing & Urban Development
Community Development Block Grants/Entitlement Grants
Pass Through Award(s):
City of Fresno - CDBG_Homeless Prevention 2019-096 14.218 18,156 Total Community Development Block Grants/Entitlement Grants 18,156 - Emergency Solutions Grant Program
Pass Through Award(s):
Fresno County - ESG Rapid-Rehousing A-18-542 14.231 57,753 - Fresno County - ESG MAP (CA) A-18-338 14.231 125,779 -
City of Fresno - ESG Project Unite (CA) 2019-096 14.231 221,515 Total Emergency Solutions Grant Program 405,047 -
Housing Opportunities for Persons with AIDS (HOPWA)
Pass Through Award(s):
City of Fresno (CA) 2019-096 14.241 516,657 90,000
City of Fresno (CA) - Cares Act 2019-096 14.241 87,020 - Housing Opportunities for Persons with AIDS (HOPWA) 603,677 90,000 Continuum of Care Program
Direct Award(s):
Continuum of Care Program (CA)-Project LiftOff 14.267 349,872 224,798 Continuum of Care Program (CA)-Coordinated Entry 14.267 397,554 - Total Continuum of Care Program 747,426 224,798
Department of Veterans Affairs
VA Homeless Providers Grant and Perdiem Program
Direct Award(s):
VA Capital Grant & Per Diem (CA) 64.024 632,228
Veterans Grant Program-Case Management 64.024 80,467 -
Total VA Homeless Providers Grant and Perdiem Program 712,695 - VA Supportive Services for Veteran Families Program
Direct Award(s):
VA Supportive Services for Veterans Families (CA) 64.033 1,492,901 - VA Supportive Services for Veterans Families (CA) - COVID 19 - CARES Act 1.0 64.033 1,017,230 - VA Supportive Services for Veterans Families (CA) - COVID 19 - CARES Act 2.0 64.033 3,745,596 - Total VA Supportive Services for Veteran Families Program 6,255,727 - US Department of Health & Human Services:
Substance Abuse and Mental Health Services Projects of Regional and National Significance Direct Award(s):
SAMHSA BEAT HIV/AIDS (CA) 93.243 538,864 -
SAMHSA Opening Doors to Housing and Wellness 93.243 315,730 - Total Substance Abuse and Mental Health Services Projects of Regional and National Significance 854,594 - Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Direct Award(s):
Ryan White Title III HIV Capacity Development and Planning Grant 93.918 17,535 - Total Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease 17,535 - Block Grants for the Prevention and Treatment of Substance Abuse Pass Through Award(s):
US Probation & PreTrial (CA) 0972-2016-19 93.959 152,695 - Total Block Grants for the prevention and Treatment of Substance Abuse 152,695 - Department of Homeland Security
Emergency Food and Shelter National Board Program
Pass Through Award(s):
United Way (CA) 97.024 12,427 -
Total Emergency Food and Shelter National Board Program 12,427 - Total Expenditures of Federal Awards $ 9,779,979 $ 314,798 WESTCARE CALIFORNIA, INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
See accompanying notes to financial statements
14 WESTCARE CALIFORNIA, INC.
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
NOTE A - BASIS OF PRESENTATION:
The accompanying schedule of expenditures of federal awards include the federal award activity of WestCare California, Inc. under programs of the federal government for the year ended June 30, 2021. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of WestCare California, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of WestCare California, Inc.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE C – INDIRECT COST RATE:
WestCare California, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. WestCare California, Inc. has a provisional indirect rate agreement for 26% for the year ended June 30, 2021. 15 WESTCARE CALIFORNIA, INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FEDERAL PROGRAMS
FOR THE YEAR ENDED JUNE 30, 2021
Section I – Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting:
• Material weakness(es) idenitifed? No
• Significant deficiency(ies) identified? None reported Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
• Material weakness(es) identified? No
• Significant deficiency(ies) identified? None reported Types of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with CFR 200.516(a)? No
Identification of major programs:
Federal Program or Cluster Federal CFDA No.
Emergency Solutions Grant 14.231
Continuum of Care 14.267
Substance Abuse and Mental Health Services 93.243
Dollar threshold used to distinguish between type A & type B Programs:
Federal Programs: $750,000
Auditee qualified as low-risk auditee pursuant to Uniform Guidance: Yes
Section II – Financial Statement Findings
None reported
Section III – Federal Award Findings and Questioned Costs None reported
Section IV – Other Issues/Prior Year Audit Findings
No management letter is required because there were no findings required to be reported in the management letter.
No Summary Schedule of Prior Audit Findings is required because there were no prior audit findings.
No Corrective Action Plan is required because there were no findings required to be reported. 16 Compliance and Other Matters
As part of obtaining reasonable assurance about whether WestCare California, Inc.’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Fresno, California
December 15, 2021
18 Opinion on Each Major Federal Program
In our opinion, WestCare California, Inc. complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of WestCare California, Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered WestCare California, Inc.’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of WestCare California, Inc.’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with the type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Fresno, California
December 15, 2021
20 UNIVERSITY OF CALIFORNIA, DAVIS
January 3, 2023
WestCare California, Inc.
1900 N. Gateway Blvd., Ste. 100
Fresno, CA 93727-1625
Re: Letter of Support for WestCare California, Inc.
Dear Grant Review Committee:
The University of California Davis Health System, Central Valley and Northern Interior AIDS Education and Training Center, a local partner of the regional Pacfic AIDS Education and Training Center located at the University of California San Francisco is pleased to support WestCare California’s grant application in response the City of Fresno’s Housing Opportunities for People with AIDS (HOPWA) Notice of Funding Availability.
WestCare is an important partner, and its work to prevent the spread of HIV in Fresno County continues to be greatly needed and highly valued.
The AIDS Education and Training Center has worked with WestCare since 2009, and we have found its staff to be highly knowledgeable in HIV prevention, testing, and outreach. They provide program participants with the tools, resources, and referrals necessary to achieve their goals and thrive in their lives. WestCare is a recognized leader in providing effective services in a culturally competent, trauma-informed, and gender-responsive environment. They have devoted significant resources to understanding and successfully addressing the needs of Fresno’s most vulnerable residents.
We look forward to continuing our critical work with WestCare California and improving the quality of life for our entire community. We highly recommend your favorable consideration of their grant proposal.
Respectfully,
TangJudy Vang, PhD, MSW
University of California Davis Health System
Central Valley AIDS Education and Training Center Director [email protected]
916-734-3365
BERKELEY • DAVIS • IRVINE • LOS ANGELES • MERCED • RIVERSIDE • SAN DIEGO • SAN FRANCISCO SANTA BARBARA • SANTA CRUZ
DEPARTMENT OF INTERNAL MEDICINE
DIVISION OF INFECTIOUS DISEASES
4150 V STREET, SUITE G500
SACRAMENTO, CA 95817
TEL: (916) 734-3815
FAX: (916) 734-7766
2/2/23, 4:12 PM Tax Exempt Organization Search Details | Internal Revenue Service https://apps.irs.gov/app/eos/details/ 1/2
Westcare California Inc.
EIN: 23-7368450 | Henderson, Nevada, United States
Other Names
WESTCARE CALIFORNIA INC
Publication 78 Data
Organizations eligible to receive tax-deductible charitable contributions. Users may rely on this list in determining deductibility of their contributions.
On Publication 78 Data List: Yes
Deductibility Code: PC
Copies of Returns (990, 990-EZ, 990-PF, 990-
T)
Electronic copies (images) of Forms 990, 990-EZ, 990-PF or 990-T returns filed with the IRS by charities and non-profits.
Tax Year 2021 Form 990
Tax Year 2020 Form 990
Tax Year 2019 Form 990
Tax Year 2018 Form 990
Tax Year 2016 Form 990
2/2/23, 4:12 PM Tax Exempt Organization Search Details | Internal Revenue Service https://apps.irs.gov/app/eos/details/ 2/2
Owner-Occupied Home Repair
Habitat for Humanity
PY 2023-2024 CONSOLIDATED NOFA
PART A – COVER PAGE:
NON-PROFIT ORGANIZATION1
Part A, Section 1: General Information
Legal Name of the Organization: Fictitious Name (if applicable):
Habitat for Humanity Fresno, Inc.
Habitat for Humanity Greater
Fresno Area
DUNS Number of Organization: Federal Tax ID Number:
602083818 77-0076649
Date of Incorporation: Date of 501(c)(3) Determination:
July 24, 1985 Original signed July 15, 1985
Mailing Address of Organization: Organization Website Address:
4991 E McKinley Ave, suite 123 www.habitatfresno.org
Name of President (or Chair of the Board): E-mail Address:
Steve Jones [email protected]
Name of Chief Executive or Executive Director: E-mail Address:
Ashley Hedemann [email protected]
Name of the Secretary: E-mail Address:
Feleena Sutton [email protected]
Name of Treasurer (or Chief Financial Officer): E-mail Address:
Randel Mathias [email protected]
Principal Contact
Person: Principal Contact’s Title:
Principal Contact’s Physical
Address (Street Address, Suite,
City, State, ZIP):
Marina
Harutyunyan
Director of Compliance
and Community
Programs
4991 E McKinley Ave, Fresno
CA 93727
Primary Phone #: Alternative Phone #: E-mail Address:
559-237-4102 x
102 [email protected]
Name of Authorized Signatory: Title of Authorized Signatory:
Ashley Hedemann CEO
Signature of Authorized Official: Date of Signature:
1 This document is for non-profit organizations. Units of local government, please complete Part A: Unit of Government Information
1/27/2023
PY23-24 City of Fresno Consolidated NOFA Part A
Non-Profit Organization
Part A, Section 2: Mission Statement
Please provide the organization’s mission statement within the below space:
Seeking to put God' s love in action, Habitat for Humanity brings people together to build homes, communities and hope.
Part A, Section 3: Organizational Capacity and Management Please provide key personnel information for HUD-funded projects:
Staff Name Title
Years of
Experience
1) Ashley Hedemann CEO 15
2) Stacey Simpson Controller 15
3) Rick O'Daniel Construction Director 33
4) Marina Harutyunyan Compliance Director 15
5) Justin Burd Repair Manager 7
Board of Directors
How often does your Board of Directors regularly meet?
monthly
List current Board of Directors below:
1) Steve Jones 6) Jim Tienken
2) Charles Fuller 7) Henry Pauls
3) Feleena Sutton 8) Robin Stith
4) Randel Mathias 9) Dale Spencer
5) Lisa Casarez 10) Tom Flanigan
PY23-24 City of Fresno Consolidated NOFA Part A
Non-Profit Organization
Financial Management
1) Has an audit been performed on the proposing organization’s accounting procedures within the last two years?
Yes No If yes, name of
auditor:
Price Paige & Company (Annual
Audit of Financial Statements)
2) Is the agency audited every year? Yes No
3) Were any management letters issued as a result of the last audit? If yes, explain.
No opinion issued. See Audited Financial Statements submitted. 4) Provide the name of staff responsible for your agency’s accounting system Name: Stacey Simpson
Title: Controller
Phone/Email: [email protected]
Authorized Signatories
If your organization is selected for funding, signatures from persons bearing titles from each of the two lines below will be required by your organization.
1. Board Chair, President, or Vice President
2. Treasurer, Secretary, or Assistant Secretary
If you will be unable to provide the two requested signatures or intend to otherwise deviate from the standard signature authority, please indicate the names and titles of the authorized signatories below and provide the names and titles of the person(s) authorized to execute agreements on behalf of your organization in your boardcertified resolution.
Authorized Signatory Name Authorized Signatory Title
1) Steve Jones Board President
2) Ashley Hedemann CEO
Board Resolution providing for the signature authority of persons to sign agreements on behalf of the entity is attached (required before a subrecipient agreement will be executed).
To view the City’s policy regarding signature authority, including a sample signature page and sample certification, view Administrative Order 4-1 at:
https://www.fresno.gov/personnel/human-resources-support/#tab-2 PY23-24 City of Fresno Consolidated NOFA Part A
Non-Profit Organization
Part A, Section 4: Summary of Attached Applications:
Provide number and total dollar amount of applications by Application Type Homeless and Homelessness Prevention Programs
Number of Applications Total Dollar Amount Requested
$
Owner-Occupied Home Repair
Number of Applications Total Dollar Amount Requested
1 $ 373,090.00
Public and Community Services
Number of Applications Total Dollar Amount Requested
$
Fair Housing
Number of Applications Total Dollar Amount Requested
$
=
GRAND TOTAL
Number of Applications Total Dollar Amount Requested
0 $ 0.00
PY23-24 City of Fresno Consolidated NOFA Part A
Non-Profit Organization
Required Attachments to Part A
Select all attachments included.
Part A, Exhibit 1 – Organization’s U.S. Internal Revenue Service 501(c)(3) Determination of Exemption Letter (Required)
Part A, Exhibit 2 – Organization’s Articles of Incorporation (Required) Part A, Exhibit 3 – Bylaws of the Organization (Required) Part A, Exhibit 4 – Statement and Designation by Foreign Corporation (when location of incorporation was outside of California) (Required of Out-of-State Corporations only)
Part A, Exhibit 5 – List of Directors and Officers by Corporate Title and Name (Required)
Part A, Exhibit 6 – Most Recent Audited Financial Statement (an IRS 990, Return of Organization Exempt from Income Tax, may be submitted in lieu of an audit whenever the organization lacks an audit due it not exceeding California and Federal audit thresholds).
Part A, Exhibit 7 – Indirect Cost Rate Agreement with Federal Cognizant Agency (Required if applicant seeks to charge an indirect cost rate greater than 10 percent of modified total direct costs)
Part A, Exhibit 8 – Resolution of the Board of the Directors Authorizing the Application and Naming the Persons Authorized to Sign the Application (Required; the Resolution must be submitted to the City by 4:00 PM, Friday, March 18, 2022)
1281317
ENDORSED
FILED
«*>• offa» of Secretary of State
of the State of Cofifwnio
JUL2 41335
eU. fcaetorj of State
ARTICLES OF INCORPORATION OF
HABITAT FOR HUMANITY FRESNO, INC.
One: The name of the corporation is HABITAT FOR
HUMANITY FRESNO, INC.
Two: This corporation is a nonprofit public benefit
corporation and is not organized for the private gain of any person.
It is organized under the Nonprofit Public Benefit Corporation Law for charitable purposes.
This corporation is organized exclusively for religious and charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1954 or the corresponding provision of any future United States internal revenue law. Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation, and the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501 (c) (3) of the Internal Revenue Code of 1954 or the corresponding provision of any future United States internal revenue law, or (b) by a corporation, contributions to which are deductible under Section 170(c) (2) of the Internal Revenue Code of 1954 or the corresponding provision of any future United States internal revenue law. This corporation recognizes and affirms its purpose as witness to the Christian gospel shown through the life of Jesus Christ. This will be evidenced through working together, as representatives of God's love and the love of humankind, to share with our neighbors in this community who are in need of decent housing.
Three: The name and address in California of the corporation's initial agent for service of process is:
DOLPH RUSCHHAUPT
3242 East Garrett
Fresno, California 93706
Four:
(a) No substantial part of the activities of this
corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and this corporation shall not participate in or intervene in (including publishing or distributing statements) any political campaign on behalf of any candidate for public office.
(b) All corporate property is irrevocably dedicated
to the purposes set forth in Article Two, above. No part of the net earnings of this corporation shall inure to the benefit of any of its directors, trustees, officers, private shareholders or members, or to individuals. (c) On the winding up and dissolution of this
corporation, after paying or adequately providing for the debts, obligations, and liabilities of the corporation, the remaining assets of this corporation shall be distributed to We hereby declare that we are the persons who
executed the foregoing Articles of Incorporation, which execution is our act and deed.
. HOLMES
NETH JXFRANSEN
such organization (or organizations) organized and operated exclusively for religious and charitable purposes which has established its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States internal revenue law).
DATED: July 22, 1985.
MARtA CONSUELO MARTINB2
/
DOLPH W. RUSCHHAUPT
KENNETH J./FRANSEN
BOARD OF DIRECTORS
Revised: 06-30/2022
SharePoint/Board/Board Members/Board Member List 06-30-2022 Steve Jones, President
4670 N. Wilson Ave.
Fresno, CA 93704
Cell: 559.892.8065
[email protected]
Charles Fuller, Vice President
6652 E Raco Ave
Fresno, CA 93727
Cell: 559.348.7330
[email protected]
Feleena Sutton, Secretary
6379 W. Northdale Ave.
Fresno, CA 93723
Cell: 559.288.5078
[email protected]
Randel Mathias, Treasurer
P.O. Box 26352
Fresno, CA 93729
Cell: 559.441.3055
[email protected]
Lisa Casarez-Austin, Member at Large
Home: 4549 Silverado Road
Madera, CA 93636
Work: Angels of Grace Foster Family Agency
6179 N. Palm
Fresno, CA 93704
Cell: 559.709.7247
[email protected]
Tom Flanigan, Member at Large
6263 N Marks
Fresno, CA 93711
Cell: 559.824.7950
[email protected]
David Munoz, Member at Large
1421 Fourth St.
Clovis, CA 936113
Cell: 559.389.6731
[email protected]
Henry Pauls, Member at Large
2658 E. Alluvial Ave., Apt. 104
Fresno, CA 93720
Cell: 559.417.4287
[email protected]
Dale Spencer, Member at Large
3890 W. Wilda St.
Riverdale, CA 93656
Cell: 559.352.5975
[email protected]
Robin Stith, Member at Large
7719 N Barcus Ave
Fresno, CA 93722
Home: 559-307-7318
[email protected]
Jim Tienken, Member at Large
714 E. Escalon Ave.
Fresno, CA 93710
Cell: 559.269.7483
[email protected]
AUDITED FINANCIAL STATEMENTS
FOR THE YEARS ENDED
JUNE 30, 2022 AND 2021
HABITAT FOR HUMANITY GREATER FRESNO AREA
AUDITED FINANCIAL STATEMENTS
FOR THE YEARS ENDED JUNE 30, 2022 AND 2021
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT .......................................................................................................1
FINANCIAL STATEMENTS
Statements of Financial Position..........................................................................................................3 Statements of Activities ........................................................................................................................4 Statements of Functional Expenses ....................................................................................................6 Statements of Cash Flows ...................................................................................................................8 Notes to the Financial Statements .......................................................................................................9
COMPLIANCE REPORT
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 ....................................................27 SCHEDULE OF FINDINGS AND QUESTIONED COSTS .......................................................................29 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS ..........................................................................30 1 INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Habitat for Humanity Greater Fresno Area
Fresno, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Habitat for Humanity Greater Fresno Area (Habitat), a nonprofit organization, which comprise the statements of financial position as of June 30, 2022 and 2021, and the related statements of activities, 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 Habitat for Humanity Greater Fresno Area as of June 30, 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 audits 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 Habitat and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. 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 Habitat’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 therefore 2 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 audits. 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 Habitat’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 Habitat’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 audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
Organization’s Ability to Continue as a Going Concern
As discussed in Note 15 to the financial statements, Habitat has recurring losses from operations.
Management’s evaluation of the events and conditions and management’s plans to mitigate these matters are also described in Note 15. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 19, 2023, on our consideration of Habitat’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 Habitat’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 Habitat’s internal control over financial reporting and compliance.
Clovis, California
January 19, 2023
See Independent Auditor’s Report and Notes to the Financial Statements. 3 HABITAT FOR HUMANITY GREATER FRESNO AREA
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2022 AND 2021
2022 2021
ASSETS
Cash and cash equivalents $ 29,001 $ 106,388
Receivables:
Grants receivable 775,031 539,735
Employee Retention Credit Receivable 451,811 -
Other receivables 204,574 50,216
Mortgage notes receivable, net 838,097 1,298,825
Mortgage servicing receivable 1,623,573 1,333,936
3,893,086 3,222,712
Prepaid and other assets 16,680 14,772
Inventories:
ReStore merchandise 17,167 22,160
Construction in progress 493,574 1,617,520
Property and land held for development 1,059,234 963,049 1,569,975 2,602,729
Property and Equipment
Computer hardware and software 65,695 56,306
Office furniture and equipment 126,394 151,394
Construction tools and equipment 25,078 25,078
Vehicles 61,901 55,901
Total property and equipment 279,068 288,679
Less accumulated depreciation (216,528) (202,506)
62,540 86,173
Escrow impound accounts 57,644 49,393
Total assets $ 5,628,926 $ 6,082,167
LIABILITIES
Accounts payable 231,074 $ $ 479,864
Accrued payroll and other expenses 75,419 84,466
Impound account liabilities 57,596 49,393
Deferred revenue 786,675 76,297
Lines of credit 847,066 -
Notes payable 1,810,104 1,719,040
Mortgage servicing liability 1,623,573 1,333,936
Total liabilities 4,584,441 4,590,062
NET ASSETS
Without donor restrictions 874,485 1,302,105
With donor restrictions 170,000 190,000
Total net assets 1,044,485 1,492,105
Total liabilities and net assets $ 5,628,926 $ 6,082,167 See Independent Auditor’s Report and Notes to the Financial Statements. 4 HABITAT FOR HUMANITY GREATER FRESNO AREA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Without Donor With Donor
Restrictions Restrictions Total
Revenues, support and gains:
Contributions
Cash and other financial assets $ 212,437 $ 260,269 $ 472,706 Nonfinancial assets 31,494 31,494 -
Grants
New home construction 644,584 644,584 -
Home repair 343,187 343,187 -
Home sales 1,684,854 1,684,854 -
Special event revenue 141,851 141,851 -
ReStore revenue 838,921 838,921 -
Imputed interest income 73,961 73,961 -
Fee for service
Home repair 30,665 30,665 -
Employee Retention Credit 451,811 451,811 -
Other income - 20,919 20,919
Total revenues, support and gains before net assets
released from restrictions 4,474,684 260,269 4,734,953
Net assets released from restrictions 280,269 (280,269) - Total revenues, support, and gains after reclassification of net assets released from restrictions 4,754,953 (20,000) 4,734,953 Costs and expenses:
Program services:
New home construction 2,885,837 - 2,885,837
Home repair - 797,678 797,678
Total program services 3,683,515 3,683,515 -
Supporting services:
Management and general 373,695 373,695 -
Fundraising 321,704 321,704 -
Special event costs - 39,869 39,869
Total supporting services - 735,268 735,268
ReStore expenses - 763,790 763,790
Total costs and expenses - 5,182,573 5,182,573
Changes in net assets (427,620) (20,000) (447,620)
Net assets, beginning of year 1,302,105 190,000 1,492,105 Net assets, end of year $ 874,485 $ 170,000 $ 1,044,485 See Independent Auditor’s Report and Notes to the Financial Statements. 5 HABITAT FOR HUMANITY GREATER FRESNO AREA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Without Donor With Donor
Restrictions Restrictions Total
Revenues, support and gains:
Contributions
Cash and other financial assets $ 516,984 $ 260,512 $ 777,496 Nonfinancial assets 226,944 226,944 -
Grants
New home construction 114,800 114,800 -
Home repair 384,514 384,514 -
Home sales 1,764,500 1,764,500 -
Special event revenue 88,374 88,374 -
ReStore revenue 949,211 949,211 -
Imputed interest income 77,013 77,013 -
Fee for service
New home construction 7,762 - 7,762
Home repair 33,400 33,400 -
Forgiveness of Paycheck Protection Program 626,058 626,058 - Other income - 31,074 31,074
Total revenues, support and gains before net assets
released from restrictions 4,820,634 260,512 5,081,146
Net assets released from restrictions 564,503 - (564,503) Total revenues, support, and gains after reclassification 5,385,137 (303,991) 5,081,146 of net assets released from restrictions
Costs and expenses:
Program services:
New home construction 2,801,683 2,801,683 -
Home repair - 802,599 802,599
Total program services - 3,604,282 3,604,282
Supporting services:
Management and general 623,916 623,916 -
Fundraising 319,413 319,413 -
Special event costs - 20,409 20,409
Total supporting services - 963,738 963,738
ReStore expenses - 1,056,066 1,056,066
Total costs and expenses - 5,624,086 5,624,086
Changes in net assets (238,949) (303,991) (542,940)
Net assets, beginning of year, restated 1,541,054 493,991 2,035,045 Net assets, end of year $ 1,302,105 $ 190,000 $ 1,492,105 See Independent Auditor’s Report and Notes to the Financial Statements. 6 HABITAT FOR HUMANITY GREATER FRESNO AREA
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2022
Special
New Home Home Management Event ReStore
Construction Repair and General Fundraising Costs Expenses Total Auto expense $ 30,149 $ 20,747 $ 1,010 $ 385 $ 26,118 - $ $ 78,409 Construction warranty costs 460 - - - - - 460
Conferences, training and education 453 1,200 3,677 175 1,808 - 7,313 Cost of home construction 2,200,610 - - - - 2,200,610 - Cost of ReStore sales - - - - 68,417 - 68,417
Depreciation 3,294 5,098 3,572 1,569 12,156 - 25,689
Dues and subscriptions 2,083 11,232 2,259 992 1,844 - 18,410 Employee benefits 49,161 33,175 36,809 11,191 40,960 - 171,296Home repair 207,760 - - - - 207,760 - Interest and merchant fees 17,434 26,981 18,905 8,302 19,975 - 91,597 Insurance - liability and workers compensation 56,110 38,989 20,337 983 12,762 - 129,181 Licensing and fees 1,295 252 177 78 1,339 - 3,141
Maintenance - office and ReStore 2,657 4,111 2,881 1,265 8,156 - 19,070 Marketing, mailers and publications - - 44,665 - 5,147 - 49,812 Other 7,787 - - - - 949 8,736
Outside services 25,817 12,025 8,426 3,700 31,910 - 81,878 Payroll taxes 31,411 28,267 16,936 11,770 19,668 - 108,052 Postage and shipping 54 84 59 - - 47 244
Professional fees 5,723 8,857 6,206 2,725 4,627 - 28,138 Professional fundraising - - 76,906 - - 76,906 -
Property maintenance 6,812 - - - - 6,812 -
Rent and utilities 10,249 15,862 11,114 4,881 156,281 - 198,387 Salaries and wages 396,551 346,400 210,375 143,588 298,812 - 1,395,726 Small tools and equipment 4,612 469 328 144 24,023 - 29,576 Supplies 4,165 9,639 2,608 4,669 39,869 10,260 71,210Telephone 7,405 10,964 3,016 3,716 - 14,380 39,481 Tithe expense and HFHI SOSI fee 1,000 25,000 - - - 26,000 - Volunteer expense 16,817 - - - 4,151 - 20,968
Warehouse expense 3,728 - 15,566 - - - 19,294
Total costs and expenses $ 2,885,837 $ 797,678 $ 373,695 $ 321,704 $ 39,869 $ 763,790 $ 5,182,573 Program Services
COSTS AND EXPENSES
Supporting Services
See Independent Auditor’s Report and Notes to the Financial Statements. 7 HABITAT FOR HUMANITY GREATER FRESNO AREA
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2021
Special
New Home Home Management Event ReStore
Construction Repair and General Fundraising Costs Expenses Total Auto expense $ 24,813 $ 16,735 $ 837 $ 1,813 $ 40,819 - $ $ 85,017 Conferences, training and education 1,656 474 10,403 412 - 596 13,541 Cost of home construction 2,075,081 - - - - 2,075,081 - Cost of ReStore sales - - - - 133,022 - 133,022
Depreciation 1,741 2,694 8,437 829 13,033 - 26,734
Dues and subscriptions 1,388 2,148 6,728 661 2,379 - 13,304 Employee benefits 56,339 54,678 34,346 12,842 40,695 - 198,900 Home repair 243,802 - - - - 243,802 -
Interest and merchant fees - 106,788 - - 20,781 - 127,569 Insurance - liability and workers compensation 48,272 32,893 24,891 985 21,044 - 128,085 Licensing and fees 82 127 397 39 1,098 - 1,743
Maintenance - office and ReStore 2,139 3,310 10,366 1,019 2,227 - 19,061 Marketing, mailers and publications - - 51,969 - 15,308 - 67,277 Other 24,783 653 2,125 201 - 627 28,389
Outside services 29,059 6,245 19,557 1,922 35,764 - 92,547 Payroll taxes 37,067 29,808 23,574 11,798 18,215 - 120,462 Postage and shipping 90 139 436 - - 220 885
Professional fees 5,996 9,280 29,061 2,855 10,594 - 57,786Professional fundraising - - 77,383 - - 77,383 - Property maintenance 9,135 - - - - 9,135 -Rent and utilities 4,982 7,710 24,143 2,372 248,384 - 287,591Salaries and wages 433,862 358,013 282,377 143,252 387,230 - 1,604,734 Small tools and equipment 10,650 130 409 40 33,750 - 44,979 Supplies 4,169 4,027 6,317 5,570 20,409 13,798 54,290
Telephone 7,010 10,836 7,724 3,451 14,285 - 43,306
Tithe expense and HFHI SOSI fee 6,000 25,000 - - - 31,000 - Volunteer expense 13,536 - - - 2,197 - 15,733
Warehouse expense 3,833 - 18,897 - - - 22,730
Total costs and expenses $ 2,801,683 $ 802,599 $ 623,916 $ 319,413 $ 20,409 $ 1,056,066 $ 5,624,086 Program Services
COSTS AND EXPENSES
Supporting Services
See Independent Auditor’s Report and Notes to the Financial Statements. 8 HABITAT FOR HUMANITY GREATER FRESNO AREA
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in net assets $ (447,620) $ (542,940)
Adjustments to reconcile increase (decrease) in net assets to net cash provided by (used in) operating activities:
Imputed interest income (73,961) (77,013)
Notes payable assumed by homeowners (1,025,263) -
Forgiveness of debt on PPP loan (636,058) -
Donated goods (186,829) -
Depreciation 25,689 26,734
(Gain)/loss on disposal of assets (2,239) 1,450
(Gain)/loss on sale of mortgages 2,936 (22,549)
(Increase) decrease in operating assets:
Grants receivable (235,296) (392,895)
Employee Retention Credit receivable (451,811) -
Other receivables (154,358) 72,002
Prepaid, deposits and escrow impound accounts (10,158) 280 Inventories 1,032,754 272,376
Increase (decrease) in operating liabilities:
Accounts payable (248,791) 297,338
Accrued payroll and other expenses (9,047) 17,101
Deferred revenue 710,378 (68,994)
Impound account liabilities 8,203 2,026
Net cash provided by (used in) operating activities 146,679 (2,263,234)
CASH FLOWS FROM INVESTING ACTIVITIES
Principal collections on mortgage notes receivable 113,200 131,833 Proceeds from sale of mortgages 418,553 311,245
Purchases of property and equipment (15,388) (17,240)
Proceeds from sale of property and equipment - 15,571
Net cash provided by (used in) investing activities 531,936 425,838
CASH FLOWS FROM FINANCING ACTIVITIES
Principal receipts on mortgage servicing receivable 364,552 83,861 Payments on mortgage servicing liability (364,552) (83,861) Principal payments on line of credit (1,031,979) (300,000) Advances on line of credit 184,913 552,450
Principal payments on notes payable (258,936) (2,187)
Proceeds from notes payable 350,000 1,565,185
Net cash provided by (used in) financing activities (756,002) 1,815,448 Net increase (decrease) in cash (77,387) (21,948)
Cash and cash equivalents, beginning of year 106,388 128,336 Cash and cash equivalents, end of year $ 29,001 $ 106,388
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
9 NOTE 1 – NATURE OF ORGANIZATION
Habitat for Humanity Greater Fresno Area (Habitat) was formed in 1985 as a California not-for-profit corporation by people of diverse Christian religious backgrounds and was recognized as the 100th U.S.A. affiliate of Habitat for Humanity International, Inc. The Fresno affiliate reflects the vision of the international network; however, it is responsible for its own operations and funding. Habitat’s mission is to put God’s love into action in Fresno County by bringing people together to build homes, communities, and hope. The affiliate also adheres to five Mission Principles: demonstrate the love of Jesus Christ, focus on shelter, advocate for affordable housing, promote dignity and hope, and support sustainable and transformational development.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Adoption of New Accounting Pronouncements
In September 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.
The standard requires nonprofits to expand their financial statement presentation and disclosure of contributed nonfinancial assets, including in-kind contributions. The standard includes disclosure of information on an entity’s policies on contributed nonfinancial assets about monetization and utilization during the reporting period, information on donor-imposed restrictions, and valuation techniques. The new standards, as amended, is to be applied retrospectively to annual reporting periods beginning after June 15, 2021. Habitat adopted ASU 2020-07 with a date of initial application of July 1, 2021.
In May 2014, the FASB issued guidance (Accounting Standards Codification [ASC] 606, Revenue from Contracts with Customers) which provides a five-step analysis of contracts to determine when and how revenue is recognized and replaces most existing revenue recognition guidance in U.S. generally accepted accounting principles. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. ASC 606 is effective for annual reporting periods beginning after December 5, 2019, and interim periods within fiscal years beginning after December 15, 2020. Habitat adopted ASC 606 with a date of the initial application of July 1, 2020.
Habitat applied ASC 606 using the cumulative effect method, which resulted in recognizing the cumulative effect of initially applying the new guidance as an adjustment to the opening balance of net assets at July 1, 2020. The details of the significant changes and quantitative impact of the changes are discussed below.
As part of the adoption of ASC 606, Habitat elected to use the following transition practical expedients: (1) all contract modifications that occurred prior to the date of initial application when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price have been reflected in the aggregate; and (2) ASC 606 is applied only to contracts that are not completed at the initial date of application. Because contract modifications are minimal, there is not a significant impact as a result of electing these practical expedients.
There were no significant changes that resulted from the adoption of ASC 606. The adoption of the new accounting policy did not have a significant impact on net income, and therefore, there was no adjustment to the opening balance of net assets. Habitat does not expect the adoption of the new revenue standard to have a material impact on its net income on an ongoing basis.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
10 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation
The financial statements of Habitat have been prepared on the accrual basis in accordance with U.S. generally accepted accounting principles (U.S. GAAP), which require Habitat to report information regarding its financial position and activities according to the following net asset classifications:
Net assets without donor restrictions – Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of Habitat. These net assets may be used at the discretion of Habitat’s management and Board of Directors.
Net assets with donor restrictions – Net assets subject to stipulations imposed by donors and grantors.
Some donor restrictions are temporary in nature; those restrictions will be met by actions of Habitat or the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity.
Net assets with donor restrictions, which are both received and released within the same year, are recorded as an increase in net assets with donor restrictions and released from restriction.
Cash and Cash Equivalents
Habitat considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents.
Concentration of Credit Risks
Habitat maintains cash balances at several financial institutions located in California. Deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000 per institution. Habitat had no uninsured cash balances at June 30, 2022 and 2021.
Mortgage Notes Receivable
Mortgage notes receivable represent the amounts financed by Habitat for the homeowners upon purchase of the Habitat built homes. Habitat’s mortgages are non-interest bearing and are typically due in monthly installments over 20 to 40 years. The mortgages have been discounted using an effective interest rate of five percent for fiscal years ended June 30, 2008 through June 30, 2022. In prior years, the mortgages were discounted at seven percent. The discount is recognized as interest income under the effective interest method over the life of the loans. The mortgages are secured by deeds of trust on the underlying real estate located in the Fresno and Clovis areas.
Mortgages are considered past due and a $10 late fee is assessed if the payment is not made 15 days after the due date. Management performs periodic reviews of the mortgage loans status. The mortgages are considered adequately secured and collectible as of June 30, 2022 and 2021.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
11 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Mortgage Commitments
On August 22, 2011, Habitat entered into an agreement to sell nineteen mortgages to Premier Valley Bank.
Under the agreement, Habitat has committed to service the nineteen mortgages at no cost to the buyer and is obligated to repurchase mortgages that become delinquent. Habitat performs periodic reviews of the collectability of the mortgages and believes that the mortgages are fully collectible as of June 30, 2022 and 2021.
On February 28, 2019, Habitat entered into an agreement to sell fourteen mortgages to EBSV Community Development, Inc. Under the agreement, Habitat has committed to service the fourteen mortgages at no cost to the buyer and is obligated to repurchase mortgages that become delinquent. Habitat performs periodic reviews of the collectability of the mortgages and believes that the mortgages are fully collectible as of June 30, 2022 and 2021.
On July 9, 2021, Habitat entered into an agreement to sell nine mortgages to EBSV Community Development, Inc. Under the agreement, Habitat has committed to service the nine mortgages at no cost to the buyer and is obligated to repurchase mortgages that become delinquent. Habitat also pledged and assigned an additional two loans as security for the performance of the nine loans purchased in the agreement. Habitat performs periodic reviews of the collectability of the mortgages and believes that the mortgages are fully collectible as of June 30, 2022.
Prepaids and Deposits
Prepaids and deposits consist of primarily prepaid rents and security deposits.
Inventories
Inventories consist of the following and are valued at the lower of cost or market:
ReStore inventories – represent purchased products held for sale on a regular basis.
Completed homes – represent the construction cost of completed homes that are ready for sale.
Management evaluates the costs of construction versus the estimated sales prices of the completed homes each year-end and adjusts the carrying amount for completed homes to the lower of cost or market. The adjustment is recognized in program service costs. There was no adjustment to inventory for the years ended June 30, 2022 and 2021 and Habitat did not have any completed homes inventories for either year.
Construction in progress – represents building materials, labor, land development costs, and other costs incurred for house construction on property owned by Habitat.
Property and land held for development – represents the property and land purchased or granted to Habitat and is valued at the time of acquisition. It is held for future construction, and the value remains until the homes are sold.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
12 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property and Equipment
Property and equipment is recorded at cost or at fair value as of the date of donation. Habitat’s policy is to capitalize property and equipment over $500. Repairs and maintenance costs are charged to operations when incurred. Routine repairs and maintenance, including planning major maintenance activities are expensed when incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 5 to 7 years.
Residual Value of Life Estate
Since October 1997, Habitat retained a life estate interest in a home to an individual. Upon the death of the individual, the title to the house reverts to Habitat. This retained interest was estimated based on the fair market value of the home discounted at 7% interest over the life expectancy of the individual. It represents approximately half the cost of the home. The homebuyer’s mortgage with Habitat was paid in full in September 2010.
In July 2020, Habitat exercised the option to buy back the property after the homebuyer conveyed their desire to sell per the agreement, and Habitat acquired the home for a total purchase price of $10,307. The residual value of life estate was removed from the Statement of Financial Position, and the remaining value of the property of $161,829 was presented as a contribution on the Statement of Activities. As of June 30, 2021, the home was sold to low-income family. Project costs incurred totaled $186,829.
Impound Account Liabilities
Impound amounts are collected monthly from homeowners to pay for their property taxes and insurance on the properties financed by Habitat. These costs are classified as impound account liabilities.
Revenue and Revenue Recognition
Gifts of cash and other assets are reported as net assets with donor restrictions if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions. Net assets with donor restrictions, which are both received and released within the same year, are recorded as an increase in net assets with donor restrictions and released from restriction.
A portion of Habitat’s revenue is obtained through the sale of goods through the ReStore. Sales are made on a cash and carry basis and recognized at a point in time.
Government Grants
Habitat receives funding from several federal and state financial assistance programs that supplement its traditional funding sources. The grants may be in the form of revenue or debt. Habitat recognizes the awards as revenue as the expenses stipulated in the grant agreements are incurred. The grant awards in the form of debt are recognized as the eligible costs are incurred and accrued.
Home Sales
Habitat’s policy is to sell the houses they build at approximately the appraised fair value of the house at the date of the sale. Home sales are reported in the statement of activities at the gross sales price less any subordinate silent mortgages held by Habitat for down payment assistance. Nine and eight homes were sold during the years ended June 30, 2022 and 2021 for a total of $1,684,854 and $1,764,500, respectively.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
13 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Contributed Nonfinancial Assets
Habitat recognizes contributed nonfinancial assets within revenue, including donated materials, assets, land, space, and professional services. A substantial number of volunteers have made significant contributions of their time to Habitat’s programs and supporting services. The value of this contributed time is not reflected in these financial statements since it does not require a specialized skill.
Donated materials were used in various programs within Habitat. Habitat estimates the value based on the fair value that would be paid for similar items in the Central Valley.
Land and assets are contributed to Habitat. Habitat will determine whether to sell or utilize the contributed land and assets based on the current needs of the organization. Habitat assigns values based on fair market value of the land or asset.
Contributed services recognized comprise of professional services varying from media, information technology, and hauling services. Contributed services are valued and reported at the estimated fair value based on current rates for similar services.
Program Services
Habitat has two primary programs, New Home Construction and Home Repair, which are reported on the statements of activities and functional expenses. Cost of home sales represents the direct costs of construction recognized upon sale of the homes. Other costs of construction represent the unabsorbed indirect and overhead construction costs, which are expensed as incurred.
Home Warranties
Habitat provides all new home buyers and home repair customers with a one-year workmanship warranty and a ten-year construction defect warranty as required by law. Habitat’s experience in warranty work claims has been very low and therefore management does not believe that an accrual for estimated future warranty expense is necessary. Because of the inherent uncertainties in estimating warranty costs, it is at least reasonably possible that Habitat’s estimate could change in the near term. Warranty costs are expensed as incurred. Warranty expenses were $460 and $0 for the years ended June 30, 2022 and 2021, respectively.
Advertising Costs
Advertising costs are expensed as incurred. Advertising expenses were $25,391 and $21,467 for the years ended June 30, 2022 and 2021, respectively.
Professional Fundraising Costs
Professional fundraising costs are expensed as incurred and totaled $76,906 and $77,383 for the years ended June 30, 2022 and 2021, respectively.
Estimates in the Financial Statements
The preparation of the financial statements, in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.
Actual results may differ from those estimates.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
14 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Functional Classification of Expenses
The costs of providing Habitat’s various charitable and general services have been summarized on a functional basis in the Statements of Functional Expenses. Accordingly, direct and indirect expenses have been allocated to program services or other activities based on their specific identification or the personnel resources utilized in the function. Supporting services consist principally of general, administrative and management costs and fundraising activities not directly allocable to program services.
The expenses that are allocated included the following:
Expenses Method of Allocation
Depreciation Square footage
Dues and subscriptions Square footage
Employee benefits Time and effort
Licensing and fees Square footage
Maintenance Square footage
Other Square footage
Outside services Square footage
Payroll taxes Time and effort
Postage and shipping Square footage
Professional Fees Square footage
Rent and utilities Square footage
Salaries Time and effort
Small tools and equipment Square footage
Supplies Square footage
Telephone Square footage
Fair Value of Financial Instruments
Habitat’s financial instruments consist of cash, receivables, accounts payable, accrued costs, impound account liabilities, and notes payable. These financial statements are stated at cost, which approximates fair value.
Tax-Exempt Status
Habitat for Humanity Greater Fresno Area was incorporated in July 1985 as a charitable and religious organization under the Non-Profit Public Benefit Corporation Law of the State of California. Habitat is exempt from income taxes and under Section 501(c)(3) of the Internal Revenue Code and is classified as a public charity under Internal Revenue Code Sections 170(b)(1)(A)(vi) and 509(a)(1).
Habitat files exempt organization returns in the U.S. federal and California jurisdictions. There are currently no pending U.S. federal or California tax examinations by taxing authorities. There were no interest and penalties recognized for the years ended June 30, 2022 and 2021. Generally accepted accounting principles provide accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all the positions taken in its federal and state exempt organization tax returns are more likely than not to be sustained upon examination. Habitat’s returns are subject to examination by federal and state taxing authorities, generally for three or four years, respectively, after they are filed.
Reclassifications
Certain prior year amounts have been reclassified to conform to current year presentation. These reclassifications had no impact to Habitat’s net assets at June 30, 2021.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
15 NOTE 3 – AVAILABILITY AND LIQUIDITY
The following represents Habitat’s financial assets at June 30:
2022 2021
Financial assets at year end:
Cash and cash equivalents $ 29,001 $ 106,388
Grants and other accounts receivable 979,605 589,951
Employee retention credit receivable 451,811 -
Mortgages receivable, current 77,279 120,655
1,537,696 816,994
Less amounts not available to be used in one year:
Net assets with donor restriction 170,000 190,000
Financial assets available to meet general
expenditures over the next twelve months $ 1,367,696 $ 626,994 Habitat’s goal is generally to maintain financial assets to meet 180 days of operating expenses. As part of the Habitat’s liquidity management plan, cash is maintained in liquid demand accounts for immediate access should those funds be needed. Funds in excess of daily cash requirements may be used to meet unexpected liquidity needs.
NOTE 4 – GRANTS RECEIVABLE
Grants receivable consisted of governmental grants of $775,031 and $539,735 for the years ended June 30, 2022 and 2021, respectively.
NOTE 5 – MORTGAGE NOTES RECEIVABLE
Mortgage notes receivable at June 30 are as follows:
2022 2021
Mortgage notes receivable at face value, due in
aggregate monthly principal payments of
approximately $6,500, due in 2022 through 2054,
secured by deeds of trust. $ 1,355,303 $ 2,098,907
Less unamortized discount (517,206) (800,082)
Mortgage notes receivable, net $ 838,097 $ 1,298,825
Mortgage payments (at face value) to be received, over the next five years and thereafter are as follows:
2023 $ 77,279
2024 74,347
2025 72,337
2026 69,323
2027 and thereafter 1,062,017
Total 1,355,303 $
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
16 NOTE 6 – EMPLOYEE RETENTION CREDIT
The Employee Retention Credit is a refundable tax credit against certain employment taxes established under the CARES Act. Employers are eligible for the refundable tax credit if they meet certain requirements under the program guidelines, which includes either reduced gross receipts based on various metrics under the qualified period or there was a full or partial suspension and impact to the entity’s operations due to a government order limiting commerce, travel or others. Habitat determined that it was eligible for the Employee Retention Credit and has filed for the refundable credit. Habitat recognized revenue on the Employee Retention Credit of $451,811 for the year ended June 30, 2022.
NOTE 7 – LINE OF CREDIT
In August 2019, Habitat entered into a loan agreement with Suncrest Bank for a Construction Line in the amount of $600,000 to support the completion of the 5-house project located on Malone Street in Madera, California. The terms included collateral in the form of a 1st position Construction Deed of Trust on the subject property, and an interest rate of 6.5% per annum and monthly interest payments, with the final principal and accrued interest payment due in December 2021. The loan was paid in full and closed as of June 30, 2022.
In September 2019, Habitat entered into a loan agreement with Valley Republic Bank for a Construction Line in the amount of $300,000 to support the completion of the 4-house project located on Amador and B streets in Fresno, California. The terms included collateral in the form of a 1st position Construction Deed of Trust on the subject property, and an interest rate of 6% per annum and monthly interest payments, with the final principal and accrued interest payment due in January 2021. The balance was paid in full and the loan was closed as of June 30, 2021.
In February 2021, Habitat entered into a loan agreement with Suncrest Bank for a Construction Line in the amount of $313,000 to support the completion of the 2-house project located on Fourth Street in Clovis, California. The terms included collateral in the form of a 1st position Construction Deed of Trust on the subject property, and an interest rate of 6.5% per annum and monthly interest payments, with the final principal and accrued interest payment due in May 2022. The loan was paid in full and closed as of June 30, 2022.
In June 2022, Habitat entered into a loan agreement with Central Valley Community Bank for a Construction Line in the amount of $1,588,240 to support the completion of the 8-house project located Riverdale, California. The terms included collateral in the form of a 1st position Construction Deed of Trust on the subject property, a variable interest rate and monthly interest payments, with the final principal and accrued interest payment due in May 2024. There were no draws on the line of credit during the year ended June 30, 2022.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
17 NOTE 8 – NOTES PAYABLE
Notes payable consist of the following at June 30:
2022 2021
$ 150,000 - $
450,000 450,000
100,000 100,000
168,104 247,812
392,000 392,000
200,000 200,000
500,000 150,000
29,228 -
Total notes payable $ 1,810,104 $ 1,719,040
Note payable to Suncrest Bank bearing interest at 1% per annum commencing April 9, 2020. Payments and interest on the note are deferred for six months and the loan may be forgiven in full or in part in accordance with the requirements of the Small Business Administration Paycheck Protection
Program. The note matures April 9, 2022.
Note payable to City of Clovis with interest on the unpaid principal at the rate of 0% per annum, all due and payable on or before December 31, 2022, pursuant to the agreement
dated August 27, 2018 and amended February 2022. The
funds are to be used to construct a single-family residence on the property. In the event the loan is not paid back when agreed, the property will revert back to the City with all improvements thereon.
Note payable to Mid Valley Services with interest on the unpaid principal at the rate of 12% per annum, all due and payable on or before September 1, 2024, pursuant to the agreement dated August 16, 2019.
Note payable to Small Business Administration bearing interest at 2.75% per annum commencing June 17, 2020. Payments
and interest on the note are deferred for one year. The note matures June 17, 2051.
Note payable to the County of Fresno with interest on the unpaid principal at the rate of 0% per annum, all due and payable on or before September 9, 2025, pursuant to the Home CHDO agreement dated August 18, 2020 or
assumable by qualified low-income homebuyers, secured by deeds of trust.
Private lender note payable with interest on the unpaid principal at the rate of 5% per annum, pursuant to the
Promissory Note dated June 8, 2021.
Note payable to Habitat Mortgage Solutions, LLC., with interest and principal monthly payments at the rate of 3.5% per annum, all due and payable on or before December 31, 2023,
pursuant to the Extension of Promissory Note and Security Agreement dated June 30, 2021.
Note payable to the City of Fresno with interest on the unpaid principal at the rate of 2% per annum pursuant to the Home CHDO agreement dated January 4, 2021, or assumable by
qualified low-income homebuyers, secured by deeds of trust.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
18 NOTE 8 – NOTES PAYABLE (Continued)
Future minimum payments on notes payable are as follows:
Years Ending June 30
2023 $ 499,157
2024 162,255
2025 74,601
2026 524,960
2027 and thereafter 549,131
Total $ 1,810,104
NOTE 9 – OPERATING LEASES
Habitat leases an administrative office, storage location, and ReStore location in the City of Clovis, under non-cancellable operating leases. The leases expire October 2026, November 2023, and June 30, 2023, respectively.
Habitat did not renew the lease for ReStore located in the City of Madera, which expired in October 2021.
The future minimum lease payments under the non-cancellable operating leases are as follows:
Years Ending June 30
2023 $ 144,274
2024 42,269
2025 32,724
2026 32,724
2027 10,908
Total 262,899 $
Rent expense totaled $176,231 and $263,457 for the years ended June 30, 2022 and 2021, respectively.
NOTE 10 – NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions are available for the following purposes at June 30:
2022 2021
New home construction $ 170,000 $ 190,000
Total net assets with donor restrictions $ 170,000 $ 190,000
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
19 NOTE 11 – CONTRACTS WITH CUSTOMERS
Revenue from performance obligations satisfied at a point in time consists of the sale of goods through the ReStore and home sales. The total amount of revenues recognized from the sale of goods through Restore, fee for service home repair, and home sales during the years ended June 30, 2022 and 2021 were $2,554,440 and $2,736,209, respectively.
Contract assets include mortgage receivables arising from home sale in the amount of $838,097, $1,298,825 and $1,642,341 at June 30, 2022, 2021, and 2020 respectively.
The following table provides information about significant changes in borrower impounds for the year ended June 30:
2022 2021
Borrower impounds, beginning of year $ 49,393 $ 47,367
Deposits made to impound on behalf of customers 57,596 49,393 Payments made on behalf of customers (49,393) (47,367)
Borrower impounds, end of year $ 57,596 $ 49,393
NOTE 12 – CONTRIBUTED NONFINANCIAL ASSETS
Contributed nonfinancial assets recognized within the statement of activities included the following at June 30:
2022 2021
Materials $ 21,474 $ 40,922
Land 161,829 -
Professional Services 10,020 24,193
$ 31,494 $ 226,944
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
20 NOTE 13 – CALHOME PROGRAM
In October 2011, Habitat was awarded a $325,500 loan from the State of California Department of Housing and Community Development 2010 CalHome Program to finance acquisition costs of the Willow and Jensen land for seven single family detached homes in the City of Fresno. These homes were constructed and sold to eligible first-time low-income homebuyers. As the homes were constructed and sold to eligible low-income homebuyers, the note payable by Habitat was converted to a grant at which time, the income was recognized. The interest on the note was deferred and forgiven upon the sale of all seven homes to eligible low-income homebuyers.
In 2014, Habitat sold six of the homes in the Willow and Jensen development to eligible low-income homebuyers. In 2015, Habitat sold the last of the seven homes. In accordance with the terms of the note payable to State of California Department of Housing and Community Development, $46,500 per home was forgiven and Habitat recognized grant income of $279,000 in 2014 and $46,500 in 2015.
The funds provided by the State of California Department of Housing and Community Development 2010 CalHome Program were converted into loans for the qualified households in the form of 30-year, zero interest second mortgages to Habitat. All repayments of loan principal and any loan interest accrued are deposited to a separately maintained CalHome reuse account. This account is good for all CalHome activities and for all CalHome grants. The reuse account is governed by a reuse plan that has been reviewed and approved by the State of California Department of Housing and Community Development. The total principal collections deposited in the reuse account was $10,780 during the year ended June 30, 2022, and $10,850 during the year ended June 30, 2021. Reuse funds spent were $31,000 for the year ended June 30, 2022, and there were no reuse funds spent for the year ended June 30, 2021.
NOTE 14 – COMMITMENTS AND CONTINGENCIES
Habitat has entered into various agreements with the City of Fresno, City of Madera, and the County of Fresno, which provides federal funds for the use of Community Housing Development Organizations (CHDO), which Habitat is qualified as, to develop or rehabilitate housing for low-income families.
The commitments under these agreements are summarized as follows:
Amador and B Project
In January 2017, Habitat entered into a Home Investment Partnership Program (HOME) agreement with the City of Fresno to acquire four lots at a total purchase price of $244,263 and develop those lots into single family homes for low-income homebuyers at an estimated cost of $984,121. The City provided HOME funds of $580,263 as an assumable loan to Habitat to fund the property acquisition and construction costs. Upon sale to low-income homebuyers, the loan is assumed at 0% interest, releasing Habitat of its liability to the City. As of June 30, 2021, the project was completed with all four homes were sold and project costs including land incurred totaled $1,142,582.
Central Project
In February 2016, Habitat entered into a Memorandum of Understanding with Central Community Church to acquire 3 lots at a total purchase price of $1 and develop those lots into single family homes for low-income homebuyers in February 2018, Habitat entered into a Home Investment Partnership Program (HOME) agreement with the City of Fresno to develop those lots at an estimated cost of $904,666. The City provided HOME funds of $445,000 as an assumable loan to Habitat to fund the property construction costs. Upon sale to low-income homebuyers, the loan is assumed at 0% interest, releasing Habitat of its liability to the City. As of June 30, 2021, the project was completed with all four homes sold and project costs incurred including land totaled $871,047.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
21 NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
Fourth Street Project
In December 2020, Habitat entered into an agreement with the City of Clovis to acquire 2 lots for no cost in the form of a grant deed and develop 2 single-family houses for low-income homeownership. The land value grant of $76,297 is presented on the Statement of Financial Position as Deferred Revenue and will decrease as the homes are sold per the City of Clovis’ requirements. In addition, the homebuyers will participate in the California Department of Housing and Community Development’s Down Payment Assistance Program administered by the City of Clovis. The Program provides the homebuyer down payment assistance in the form of deferred payment “silent” second priority loan as “GAP” financing toward the purchase price and closing costs, which Habitat will receive upon sale. As of June 30, 2022, the homes were sold, and the conditions of this agreement were met.
Malone Project – City of Madera
In January 2019, Habitat entered into an agreement with the City of Madera to acquire 5 lots for no cost in the form of a grant deed and develop 5 single-family homes for low-income homeownership. The land value grant of $157,670 is presented on the Statement of Financial Position as Deferred Revenue and will decrease as the homes are sold per the City of Madera’s requirements. In addition, the homebuyers will participate in the California Department of Housing and Community Development’s Down Payment Assistance Program administered by the City of Madera. The Program provides the homebuyer down payment assistance in the form of deferred payment “silent” second priority loan as “GAP” financing toward the purchase price and closing costs, which Habitat will receive upon sale. As of June 30, 2022, the homes were sold, and the conditions of this agreement were met.
Barcus Project
In February 2021, Habitat entered into a Home Investment Partnership Program (HOME) agreement with the City of Fresno and was awarded $391,942 as an assumable loan to help fund the construction costs for Habitat’s Barcus project. The project consists of building two single family homes for low-income homebuyers. Upon sale to qualified low-income homebuyers, the loan is assumed at 0% interest, releasing Habitat of its liability to the City. As of June 30, 2022, there were no homes sold and project costs totaled $153,138.
Riverdale Project
Aiming to expand its efforts into rural areas in July 2020, Habitat secured land in Riverdale to build 8 single-family homes for low-income rural Fresno County residents. In August 2020, Habitat entered into a Home Investment Partnership Program (HOME) agreement with the County of Fresno and was awarded $450,000 as an assumable loan to help fund the acquisition and construction costs for the Riverdale Project. Upon sale to qualified homebuyers, the loan is assumed at 0% interest, releasing Habitat of its liability to the County. In May 2021, Habitat entered into a State Local Fiscal Recovery Funds (SLFRF) subrecipient agreement with the County of Fresno and was awarded $540,000 to assist with construction costs for the Riverdale Project. As of June 30, 2022, there were no homes sold and project costs incurred including land totaled $562,118.
Firebaugh Project
In June 2021, Habitat entered into a State Local Fiscal Recovery Funds (SLFRF) subrecipient agreement with the County of Fresno and was awarded $790,000 to assist with construction costs for the Firebaugh Project. As of June 30, 2022, there were no homes sold and project costs incurred including land totaled $98,705.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
22 NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
Standby Letters of Credit
Habitat obtained two irrevocable standby letters of credit in January 2017 and September 2016 from Premier Valley Bank as a guarantee of faithful performance for the completion of the following home construction projects. As of June 30, 2021, both standby letters of credit were released due to projects completed.
NOTE 15 – GOING CONCERN
Management believes that it has implemented new procedures and increased oversight to ensure that Habitat is able to continue as a going concern. These procedures are outlined below.
Restructuring
Habitat has consolidated new home construction and home repair to streamline construction operations to be more cost effective. In addition, Habitat has hired a Chief Executive Officer who has years of experience and knowledge of the operational complexities of the organization.
Although Habitat has always been a professional home builder, due to the availability of developed land, Habitat has also become a land developer. Habitat is subcontracting and consulting experienced individuals to navigate projects that require land development.
Project Vetting and Approval
Over the past few years, Habitat has served more families than at any other time in its history. This has been great for the community, but un-strategized growth has caused deficiencies in Habitat’s project-acceptance process. Habitat has implemented a more comprehensive vetting policy for forecasting the profitability, timeline, and capacity for completing proposed projects for new home construction and home repair. This includes creating and scrutinizing fully built-out proforma financial statements for each proposed project.
These proforma statements include detailed projections for Habitat’s internal costs and up-to-date estimates for work that will be subcontracted to others. Additionally, each proforma must be presented to and approved by multiple committees and experienced professionals prior to committing to a proposed project.
Fundraising
Habitat has increased its fundraising efforts in an effort to be at the forefront of donor’s minds. In addition to its’ large-scale fundraising events, Habitat is exploring new fundraising and network opportunities to cultivate new donors, such as online auctions and golf tournaments. Habitat is also working with previous donors to increase their financial commitment to affordable housing and Habitat’s ability to provide it.
Loan Purchase and Sale Agreement
Habitat has partnered with Noble Credit Union to sell the mortgages on new homes immediately after the close of escrow with partner families. This quickly replenishes the funds that Habitat has tied up in the construction and completion of new homes and allows Habitat to recognize the full profit immediately upon sale of the mortgage.
USDA 502 Direct Program
Habitat is partnering with the U.S, Department of Agriculture (USDA) to have qualified families secure funding through their USDA 502 Direct Loan Program. The program will provide affordable home loans for the homes Habitat is building in rural areas. This allows Habitat to replenish funds and recognize the full profit of those homes, immediately upon the sale to the families.
HABITAT FOR HUMANITY GREATER FRESNO AREA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2022 AND 2021
See Independent Auditor’s Report.
23 NOTE 15 – GOING CONCERN (Continued)
Financing
Habitat is financing construction costs for new home construction projects through the use of construction loans.
NOTE 16 – UNCERTAINTY
On March 11, 2020, the World Health Organization declared an outbreak of a coronavirus, COVID-19, a pandemic. Accordingly, some functions of Habitat’s operations were limited to protect the health and safety of its employees. The financial impact that could occur as a result of the pandemic is unknown at this time.
NOTE 17 – SUBSEQUENT EVENTS
In January 2023, Habitat was notified of a donation of approximately 9 acres located in the City of Fresno, for Habitat to construct residential housing for low-income families. In addition, Habitat anticipates receiving approximately $2,000,000 of funding for the project.
Management has evaluated and concluded that there were no other subsequent events that have occurred from June 30, 2022 through the date the financial statements were available to be issued at January 19, 2023 that would require disclosure or adjustment.
24 THIS PAGE IS LEFT BLANK INTENTIONALLY.
25 COMPLIANCE REPORT
26 THIS PAGE IS LEFT BLANK INTENTIONALLY.
27 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 of
Habitat for Humanity Greater Fresno Area
Fresno, California
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 Habitat for Humanity Greater Fresno Area (a nonprofit organization), which comprise the statement of financial position as of June 30, 2022, and the related statements of activities, 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 January 19, 2023.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Habitat’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 Habitat’s internal control. Accordingly, we do not express an opinion on the effectiveness of Habitat’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 Habitat’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the 28 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 Habitat’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.
Clovis, California
January 19, 2023
HABITAT FOR HUMANITY GREATER FRESNO AREA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
29 SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
Material weaknesses identified? Yes x No
Significant deficiencies identified that are not
considered to be material weaknesses? Yes x None reported Noncompliance material to financial
statements noted? Yes x No
SECTION II - FINANCIAL STATEMENT FINDINGS
None reported.
HABITAT FOR HUMANITY GREATER FRESNO AREA
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2022
30 FINANCIAL STATEMENT FINDINGS
None reported.
FEDERAL AWARD FINDINGS
None reported.