PY 2024-2025 APPLICATION
Public and Community Service Programs
NOTE: This application is not for public services to benefit primarily homeless and individuals at risk of homelessness or for Fair Housing programs. If you are a homeless service provider, please use the Homeless and Homelessness Prevention Application. If you are an organization applying for Fair Housing programs, please use the Fair Housing Application.
1. Project Summary Information – please complete the below summary information for the project/program.
Project Name (10 words or less): Critical Services for Domestic Violence Survivors Amount Requested: $ 500,000.00
To utilize CDBG funds for a public service, the service must be either a new service or a quantifiable increase in the level of an existing service.
This project 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).
Marjaree Mason Center is requesting City of Fresno CDBG funds to support critical services for survivors of domestic violence by increasing the agency's capacity to provide stabilization services for the rising number of individuals and families who are recovering from domestic violence. Funds through this program will be used to provide comprehensive supportive services to adults and children who are considered low/moderate-income and fleeing from domestic violence while they work toward becoming self-sufficient.
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Application – Public and Community Services
If this is an existing project/program that has not received CDBG funding from the City previously, please briefly explain how CDBG funds will be used to increase the level of service.
2. Organizational Capacity
a. Briefly describe how your organization’s prior activities have resulted in meaningful impact:
Marjaree Mason Center (MMC) has over 40 years of experience in providing safe shelter and supportive programs for individuals and families affected by domestic violence. Each year the number of individuals seeking services and reporting domestic violence continues to rise. According to the Department of Justice, Fresno County has consistently had one of the highest rates per capita of reported domestic violence to law enforcement in the state. In fact, last year, for the first time in 5- years, Fresno County had highest rate per capita of reported domestic violence in California. Fresno Police Department (FPD) reported responding to 8,183 domestic violence calls for service. This reflects a nearly 28% increase compared to the previous year’s report and a staggering 48% increase over the last two years. FPD also reports that in cases where domestic violence is present, the severity of physical violence leading to serious injury continues to increase as well. This is especially troubling given that law enforcement and advocates agree that most instances of domestic violence go unreported.
Last year, MMC provided emergency shelter to 1,237 individuals (inlcuding 634 adults and 603 children) while they worked toward obtaining safe, stable housing of their own. As the only dedicated provider of these services in Fresno County, MMC’s programs are critical to the community. MMC has developed a wide variety of programs and services that are designed specifically to meet the complex needs of survivors recovering from the traumatic effects of domestic violence. These comprehensive wrap-around services include 24/7 hotline operation and crisis response, safety planning, risk assessment, case management, victim advocacy, emergency and longer-term safe shelter, individual and group counseling, legal advocacy, child advocacy (developmental assessments, children's group, parent bonding and child advocacy), housing assistance, outreach, education and community referrals.
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MMC is a low-barrier service provider and has adopted a “no wrong door” approach to providing assistance; this means that in addition to clients contacting the agency directly (via the hotline or drop-in center), they can also be linked to services through a variety of community access sites including local law enforcement agencies, hospitals, medical centers, social service providers and other community-based organizations. These partnerships improve survivor's access to supportive activities that meaningfully impact their lives. This includes providing them with a safe and stable environment that is trauma informed and a diverse menu of therapeutic programs that provide them with the tools they need to recover from abuse and go on to lead healthy, stable lives.
b. Describe the organization’s experience with administering federally funded programs of this nature.
Established in 1979, Marjaree Mason Center (MMC) has over 40 years of experience in providing safe, confidential emergency shelter and comprehensive support services for adults and children affected by domestic violence, and is the only dedicated provider of these critical services in Fresno County. Since its inception, MMC has grown to inlcude two agency owned and operated Safe Houses, and five separate office sites which provide a wide breadth of diverse services that are specifically designed to meet the unique needs of individuals impacted by the trauma of experiencing abuse. MMC's comprehensive services include: 24/7 hotline and crisis response, safety planning and risk assessment, case management, advocacy, emergency and longer-term safe shelter, individual and group counseling, legal assistance, children's services, child advocacy, housing assistance, community outreach, youth education and prevention and linkages to local community social service programs.
All MMC programs and services are provided using trauma informed care practices that recognize the impact trauma has on an individuals physical and mental health and work to limit the re-traumatization of survivors participating in agency services.
As such, all MMC staff are required to completed 40-Hour Domestic Violence Counselor training upon employment with the agency. This training meets the requirements for Domestic Violence Counselor Training per Evidence Code §1037.1(a)(1) and covers a wide variety of topics including the history of doemstic violence, civil and criminal law related to domestic violence, societal attitudes, confidentiality, cultural competency, trauma informed care, teen dating violence, public resources and more.
For more than 20 years, MMC has consistently received and successfully fullfilled grant commitments and met objectives for Federal, State and local government agencies including past CDBG programs similar to this opportunity. Fund tracking for PY24-25 Consolidated NOFA Part B
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all projects is facilitated using the agency’s accounting software, Abila MIP, which enables us to track all project expenses using specifically assigned source codes.
MMC's Staff Accountant will review the grant monthly to assess project spenddown and to ensure that all funds are eligible for the CDBG per the guidelines set forth in the notice of funding availability. All agency funds are tracked using the accounting system as well as a separate Excel worksheet.
On average, MMC manages more than 25 grants each year amounting to over $5.5 million in funding from federal, state and local government programs as well as from private foundations. Further, MMC has a lengthy history demonstrating many years fiscal and programmatic stability and ensuring compliance with HUD, SHP, HPRP and ESG policies and regulations. The agency's Board of Directors have met all federal review standards and has an excellent history of maintaining feduciary oversight for the agency.
MMC's Chief Programs Officer, Leticia Campos, has over 15 years of experience in providing client services and will have direct oversight of this project. She holds a Bachelors degree in Social Work and has been with MMC for over 10 years and has held several leadership roles within the agency. In her current role, as CPO, Leticia oversees all direct client service programs inlcuding: CRT, the emergency shelter, housing programs (transitional, rapid rehousing and permanent) and the children's program. Fiscal oversight for this program will be provided by the Chief Finance Officer, Marcus Martin. Marcus has been with MMC for over 15 years and has extensive experience in accounting, finance and internet technology. Currently, Marcus oversees all agency finances, monitors all contracts and provides oversight for all current and prior CDBG, ESG, HUD and HEAP funds as well as all data platforms and analytics for the agency.
In addition to its long-standing and well established capacity to administer federally funded projects of this nature, MMC has a strong record of maintaining community partnerships. Through partnerships and collaborations with local community organizations, MMC is able to ensure uninterupted access to a diverse array of programs and services that support all survivors of domestic violence. MMC's partners include but are not limited to: the Fresno Housing Authority, (they are a collaborative applicant for HUD grants), local law enforcement agencies throughout Fresno County (including MMC Advocates stationed at Fresno PD and Fresno Sheriff's Department), Crime Victims Assistance Center (provide support to emergency shelter clients and assistance with relocation expenses and securing permanent housing), Meathead Movers and Wings (assist with moving and obtaining household items), local hospitals (CRMC, Kaiser Permanente, St. Agnes, Valley Children's Hospital), Centro La Familia and Fresno Unified School District (assist children with school related needs through Project First Step). MMC is also an active member and in good standing with the Fresno Madera Continuum of Care. MMC believes that maintaining strong partnerships with local organizations is essential to creating a community network of support that addresses the needs of all individuals, PY24-25 Consolidated NOFA Part B
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streamlines access to assistance and reduces duplication of services thereby maximizing community resources.
c. For how many years has the organization administered activities of the type described in this application?
44 d. 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
e. Please describe the cultural competency training staff will be required to complete during the term of this program.
Over the next year, all MMC staff will be required to participate in the following cultural competency trainings: Diversity Equity, Inclusion and Accessibility; Unconscious Bias: Moving from Awareness to Action; Appreciating the Many Forms of Diversity; and Diversity and Inclusion. MMC staff are also required to attend quarterly all-staff meetings which include presentations from multi-cultural guest speakers to increase cultural awareness, support open-mindedness, and reduce unconscious bias.
Additionally, MMC's Outreach team regularly participates in a wide variety of cultural events throughout the community that increase agency visibility and improve awareness of domestic violence and the types of programs and servcies that are PY24-25 Consolidated NOFA Part B
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available. Some examples of cultural events MMC participates in include Hmong New Year, Juneteenth, and Pride Month.
3. Proposed Scope of Work
a. Briefly describe the needs this proposal addresses, and how existing resources are insufficient to meet this need:
Marjaree Mason Center is proposing to address the critical needs of survivors of domestic violence by providing case management and stabilization services for individuals and families who are residing in the agency’s confidential Emergency Emergency Shelter. Last year, MMC provided supportive services to 8,399 individuals including 7,231 adults and 1,168 children; this reflects an 11% increase in the number of individuals served compared to last year. Additionally, MMC provided 74,993 nights of emergency and longer-term safe shelter for individuals and families recovering from abuse. Each year the number of individuals seeking services and reporting domestic violence continues to rise.
Each year the number of individuals seeking services and reporting domestic violence continues to rise. This is evident in the number of suvivors seeking assistance with MMC each year as well as in the number of calls for assistance local law enforcement agencies receive. According to the Department of Justice, for at least the last ten years, Fresno County has had one of the highest rates per capita of reported domestic violence calls to law enforcement in the state; last year Fresno County had the highest per capita with a total of 11,291 calls to law enforcement seeking assistance. This reflects a 36% increase compared to the previous year’s reports and 49% over the last 2-years. Law enforcement agencies also report that in cases where domestic violence is present, the severity of physical abuse leading to serious injury continues to rise as well. This is especially troubling given that law enforcement agencies, officers and advocates alike, agree that most instances of domestic violence go unreported. In fact, according to a national study, less than 30% of physical abuse and less than 20% of rapes in domestic violence cases are reported to law enforcement.
The ongoing increase in the number of survivors seeking services and increased need for immediate safe shelter means that MMC’s Emergency Safe House is nearly always filled to capacity. Unfortunately, MMC’s Emergency Shelter Program is the least funded program in the agency, as many funders prefer to PY24-25 Consolidated NOFA Part B
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provide support for longer-term programs such as Permanent Housing and Rapid Rehousing programs. While MMC recognizes the importance of providing longterm care programs (and works diligently to transfer clients from emergency programs to transitional and permanent housing programs), we must first meet each survivor’s immediate needs by offering robust emergency programs that address their present crises and support their basic needs while they begin to heal.
Clients in the Safe House Program have access to a wide array of services including: 24/7 hotline assistance, risk assessment, safety planning, food, clothing and basic hygiene needs, case management, individual and group counseling, legal advocacy (assisting with filing restraining orders), housing assistance, children’s services and referrals to additional community programs as needed.
The average length of stay for clients in the Emergency Shelter is approximately 30 days. As the only dedicated provider of safe confidential shelter and comprehensive domestic violence services in Fresno, it is imperative to ensure that MMC can meet the immediate needs of survivors by providing access to safe emergency shelter and vital services that assist them in building stable futures.
Unfortunately, MMC’s Emergency Shelter Program is the least funded program in the agency, as many funders prefer to provide support for longer-term programs such as Permanent Housing and Rapid Rehousing programs. Additionally, MMC is losing $1M in funding in June 2022 due to a City ARPA grant that will not be renewed and is at risk of losing another $400,000 in funding due to federal cuts to Victims of Crime Assistance (VOCA) funds; both of these funding sources curretnly support critical services for survivors residing in the Emergency Shelter.
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b. Briefly describe the target population and how the project will meet the specific needs of the target population and how the project will be marketed to the target population.
The target population for this project includes all individuals located in Fresno County who are experiencing domestic violence and who are in need of safe emergency shelter and/or seeking comprehensive support services. Domestic violence effects all populations regardless of ethnicity, age, religion, gender, language, sexual orientation, location or economic ability.
Marjaree Mason Center’s mission is to support and empower adults and their children affected by domestic violence while striving to prevent and end the cycle of abuse through education and advocacy. Domestic violence (also known as Intimate Partner Violence or IPV) is a systemic pattern of power and control that impacts more than 10 million men and women each year; it is perpetrated through the willful intimidation, physical assault and/or other abuse by one intimate partner against another. There are many types of domestic violence including (but not limited to), physical violence, stalking, emotional abuse, mental abuse, financial abuse and medical abuse. What’s more, domestic violence does not discriminate, it impacts all communities regardless of age, gender, ethnicity, socio-economic status, religion, sexual orientation or nationality. Sadly, 1 in 3 women and 1 in 4 men have experienced some type of physical abuse at the hands of an intimate partner.
While MMC provides services to all individuals affected by domestic violence and seeking support, the vast majority of our clients are women and children in households that are defined as low/moderate income (LMI) and/or homeless by the Department of Housing and Urban Development (HUD). Last year 87% of all MMC clients fell within the HUD definition for LMI and homeless. According to the National Network to End Domestic Violence (NNEDV), domestic violence is one of the leading causes of homelessness for women and children. In addition to physical and emotional abuse, survivors of domestic violence often experience financial abuse which undeniably impacts their ability to obtain safe and affordable housing. Faced with the unimaginable choice between homelessness and living with abuse, women with children often return to their abuser.
MMC will support survivors fleeing from domsetic violence by providing safe and confidential shelter in the agency’s Safe House as well as immediate support services that will assist them in recovering from the traumatic effects and increase self-sufficiency. Activities provided to clients will include risk assessments, safety planning, case management, individual and group counseling, legal advocacy, health and wellness programs, children’s services, classes, housing assistance and referrals to additional social service programs. Additionally, MMC will ensure that the basic needs (food, clothing, hygiene items, diapers, blankets, etc.) of PY24-25 Consolidated NOFA Part B
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survivors are met while they focus on overcoming the long-term traumatic effects of abuse.
Further, all MMC services are provided by knowledgable staff who have been trained in using Trauma Informed Care principles to provide supportive services that are tailored to meet the unique needs of each victim. Domestic violence is a viscious cycle of power and control that includes (but is not limited to) isolation, physical assault, verbal abuse, emotional abuse, sexual abuse and financial abuse; the long-term effects of which often lead victims to experience depression, anxiety, fear, homelessness, unemployment and financial instability. MMC services are designed to meet each client where they are; this means that they can work at their own pace and drive their own care based on their level of ability and readiness. Clients are not requred to participate in agency programs in order to receive services.
c. Describe consultation efforts made with the target population in the development of the proposed activity.
In order to ensure that all services are provided using equitable and inclusive practices, MMC works diligently with local service providers and clients to ensure that services are accessible to all populations, well rounded and meet the diverse needs of the community. Strategies MMC uses to meet this objective include engaging in ongoing collaborations with community partners and collecting surveys from clients that assess their overall satisfaction with services and identify any barriers they may have faced while attempting to engage in agency programs.
MMC uses feed feedback from community partners and clients to identify gaps in services and as a tool for informing ongoing program development.
Survivors of abuse face a wide variety of barriers when attempting to access support services, some of these barriers include isolation from friends and family, no transportation, little or no access to money, unemployment, language barriers and physical distance from services. While safe shelter is a pathway to freedom for survivors, they frequently face additional barriers to obtaining housing due to domestic violence such as poor credit, unemployment, limited income, discrimination in housing applications due to violent and/or criminal actions committed by their abuser, poor rental history, evictions, and limits to the types of housing and locations available due their unique safety needs. Supportive services that help to reduce barriers include, but are not limited to: offering diverse and inclusive programs, transportation, translation services, child care assistance, employment assistance, utility assistance, housing assistance and linkages to additional social service programs.
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Additionally, with support from the Fresno County Board of Supervisors and in collaboration with the Fresno Madera Continuum of Care (FMCoC), MMC recently began work to assist in the development of a Domestic Violence Homeless Reduction Plan (DVHRP). All the leading domestic violence service provider in Fresno County, MMC was awarded funding by the County and contracted with Enfuse Action Collective to develop a four-component evaluation that includes:
data review, key informant interviews, listening sessions, and distinct Safe Housing Survey Assessment and develop a Domestic Violence Homeless Reduction Plan.
With the information gathered during listening sessions and workshops using the four-component evaluation, Enfuse Action Collective made several recommendations that will help reduce the risk of homelessness related to domestic violence. MMC is currently working with FMCoC and the County to determine next steps for implementing the recommendations. d. Describe the marketing plan for the proposed activity and how the organization will ensure it reaches the target population.
In order to raise awareness of available services and market programs to the target population and the larger community, MMC works closely with a variety local partners to facilitate domestic violence awareness classes that teach first responders, social service providers and community organizations how to recognize abuse, provide intervention when abuse is present and how to directly link survivors to MMC for immediate safe shelter and comprehensive supportive services when needed.
MMC also operates offices at 7 sites located strategically throughout Fresno County; these include two safe and confidential shelters, three administrative offices and two satellite locations (in Reedley and Mendota) which provide support for individuals located in rural communities. Additionally, MMC employs Community Navigators who are authorized to meet survivors in safe places within their communities rather than requiring them to travel to the crisis drop-in center to receive support. Further, MMC maintains partnerships with a wide variety of community agencies and providers to coordinate referrals for services including the Fresno Housing Authority, (they are a collaborative applicant for HUD grants), the County of Fresno, Exceptional Parents Unlimited (EPU), local law enforcement agencies throughout Fresno County (including MMC Advocates stationed at Fresno PD and Fresno Sheriff's Department), Fresno County District Attorney’s office, Department of Social Services, Behavioral Health and Public Health, Crime Victims Assistance Center (provide support to emergency shelter clients and assistance with relocation expenses and securing permanent housing), Meathead Movers and Wings (assist with moving and obtaining household items), local hospitals (CRMC, Kaiser Permanente, St. Agnes, Valley Children's Hospital, UCSF), Churches, Centro La Familia and Fresno Unified School District (assist children with school related needs through Project First Step). MMC is also an active member, in good standing with PY24-25 Consolidated NOFA Part B
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the Fresno Madera Continuum of Care and staff routinely attend community events to facilitate outreach and education services in order to provide comprehensive information about MMC and how to access agency services. e. The City’s Analysis of Impediments to Fair Housing Choice recommends that the City prioritize investments in areas identified as Racially/Ethnically Concentrated Areas of Poverty (RECAPs – see NOFA Handbook). Will this program be:
Offered Citywide
Offered Citywide with an emphasis and affirmative marketing toward RECAPs
Offered exclusively to residents of RECAPs
f. Describe the service area:
Note: Strong applications will include specifically defined services areas such as ‘residents within ½ mile radius of [facility address]’ or ‘residents within the boundaries defined on the attached map.’ A map may be attached in lieu of a service area description.
Marjaree Mason Center Administrative Offices and Crisis Drop-in Center:
1600 M Street, Fresno, 93721 (See Exhibit E)
Marjaree Mason Center Emergency Shelter:
Confidential domestic violence shelter located in Fresno, CA Map Attached: Exhibit E
g. Estimate the number of unduplicated people expected to benefit from the project:
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850 unduplicated people or businesses will receive a direct benefit from this project.
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h. Income Documentation
CDBG-eligible programs primarily benefit persons who earn less than 80% of the area median income. A chart containing the income limits effective as of July 1, 2023, is included as a reference below. Applicants must select one of the three options for documenting how their activity will satisfy the income eligibility requirement. Please note, these income limits are subject to change. For the most current income limits please reference the link below:
https://www.hudexchange.info/resource/5334/cdbg-income-limits/ Household Size 30% AMI 50% AMI 80% AMI
1 17,350 28,900 46,200
2 19,800 33,000 52,800
3 22,300 37,150 59,400
4 24,750 41,250 65,950
5 26,750 44,550 71,250
OPTION 1: Low-Income Clientele – Presumed Benefit
Select this option only if the program will exclusively serve one of the following clienteles (select all that apply)
Older Adults (62 and older)
Severely Disabled Adults
Abused Children
Illiterate Adults
Migrant Farm Workers
OPTION 2: Low-Income Clientele – Other
Select this option if the program will serve a specific clientele not listed under the first option. The organization must document income eligibility for each program participant. Indicate below the types of documentation the organization will collect to verify income eligibility (select all that apply):
Pay Stubs / Wage Statements
W-2s
Income Tax Returns
Social Security Documentation
Bank Statements
Signed Certifications from
Beneficiaries
Other: Self-Report
Other: CalWORKS Statement
Other:
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OPTION 3: Low-Income Area
Select this option if the program will benefit all residents in an area where at least 51% of its residents are low- or moderate-income. This is the least likely option for Public Service programs.
i. Detailed Narrative Description of Project/Program
Describe the project/program in detail in the space below. Limit description to the space provided on this and the next page.
Marjaree Mason Center is proposing to provide supportive services to all individuals affected by domestic violence residing in the Emergency Shelter and assisting them while they work toward obtaining safety and stability. Services will be provided from thei clients initial contact (typically via the 24/7 hotline or crisis drop-in center) with MMC until they move on to a longer-term permanent housing program outside of the Emergency Shelter. All MMC Advocates work hard to meet the individual needs of each client, this includes using trauma informed care methods that are client centered, patient and empowering. Our goal is to provide a safe, welcoming and confidential space that cultivates trust for those seeking refuge while they work toward recovering from the traumatic effects of abuse. Advocates, often spend hours listening, validating, and de-escalating clients in crisis, while doing their best to connect them services that will meet their specific needs (safety planning, counseling, legal advocacy, shelter, children’s services, etc.).
MMC operates using a “no wrong door” policy; this means that clients can access MMC services through linkages from a variety of access points in the community, including law enforcement, emergency rooms, medical centers, schools and social service agencies. Once connected to the agency, clients undergo a risk assessment and begin their initial work with a Crisis Response Team member to determine which services are appropriate or necessary for them to enroll in. In addition to providing emergency shelter, MMC’s supportive services include 24/7 emergency hotline and crisis intervention, safety planning, risk assessment, food, clothing, case management, advocacy, individual and group counseling, legal advocacy, children’s services, housing assistance, employment assistance, and referrals to community/social service programs.
Once the initial assessments have been completed, clients can be enrolled in the Emergency Shelter Program and connected to an MMC Case Manager who remains their primary point of contact for the duration of their engagement in MMC services.
Maintaining a single point of contact is an important aspect of providing stability and building trust with the client. MMC believes that homelessness can be most efficiently prevented by providing survivors with access to safe, decent and affordable housing. Clients enrolled in the Emergency Shelter Program are each provided with their own private bedroom (families are housed together in larger or adjoining rooms PY24-25 Consolidated NOFA Part B
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depending on family size). Each bedroom is furnished with beds, a dresser, television and new bedding (blankets, sheets, pillows) that the clients can take with them when they exit the program. The safe house living room, kitchen and bathrooms are all shared, communal spaces.
Residential advocates are stationed on-site in the shelter and are available to provide direct support to clients 24/7. Residential Advocates interact daily with clients residing in the safe house and are responsible for shift specific tasks in the Emergency and/or Transitional living programs as well as the enrollment and orientation process for clients admitted into the Safe House. Residential staff have oversight of residential client/family activities during assigned shift and can provide some Case Management support to residential clients. Additional, activities that Residential staff support include: facilitating support groups, providing advocacy, facilitating client workshops and supporting daily activities, assisting with meal preparation and distribution and by promoting safe and healthy lifestyles.
Although all individuals impacted by domestic violence may benefit from supportive services such as mental health or substance abuse counseling, participation in these services is not a prerequisite to accessing safe housing or a condition of maintaining it. In fact, MMC believes that the provision of safe housing will improve a client's overall ability to effectively participate in supportive services. While the average length of stay in the emergency safe house is 30 days this can vary depending on the client’s individual needs and clients can be granted approval to stay for up to 90 days if necessary. Access to safe, secure and stable housing is a critical first step in overcoming the lasting effects of traumatic abuse.
Detailed Narrative Description of Project/Program (Continued from previous page) PY24-25 Consolidated NOFA Part B
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j. Collaboration
Briefly describe any collaboration efforts with other organizations for this project/program or related initiatives.
Collaborating Organization Description of Collaboration Fresno Police Department MMC collaborates with the Fresno Police Department (FPD) on a daily basis. We have three
MMC Victim Advocates stationed directly within the
Fresno Police Department office; who support and
respond to survivors that request assistance from
law enforcement due to domestic violence. MMC PD
Advocates, collaboratively work with detectives and
officers and provide in-person support to survivors in
the field to advocate on their behalf and assist them
in navigating their options for obtaining shelter and
support services.
Fresno Unified School District Marjaree Mason Center collaborates with FUSD to provide support for children impacted by domestic
violence and residing in the MMC Emergency Safe
House. Through Project First Step, a FUSD Liasion,
collaborates with the MMC Children’s team for all
FUSD children residing in the safe house, and in
need of educational support. Children of survivors
are often uprooted from their school, need to remain
out of school due to safety issues, and/or their
parent lacks the information/resources needed to
obtain additional assistance. FUSD and MMC staff
work in tandem to ensure survivors and their
children are supported while they work toward
recovery.
Poverello House Over the last 20 years the Marjaree Mason Center has collaborated with the Poverello house to provide
meals for clients receiving safe shelter. Through this
partnership, MMC purchases and distributes daily
meals for clients that have been prepared by the
Poverello House and delivered to the Center.
Fresno Housing Authority The Marjaree Mason Center has managed multiple HUD RRH grants in partnership with Fresno
Housing Authority over the past several years.
These HUD funded RRH housing projects focus on
providing support for survivors of Domestic Violence.
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Additionally, through the support of these RRH
projects MMC is able to focus on the financial and
long term housing stability of each client served. The
long-term goals is to support clients/families in
regaining their self-sufficiently and above all a sense of safety.
Exceptional Parents Unlimited
(EPU)
MMC and EPU have partnered to expand services
for children residing in the Fresno safe house.
Through this parnership, Dr. Dana Riley, a child
psychologist, provides on-site direct support for
children ages 0-5 on Tuesdays and Thursdays. Dr.
Riley meets with parents and their children for
individual sessions, she has extensive training on
providing trauma informed care and child
development services. When Dr. Riley she does not
have appointments scheduled, she works in the
Children's Enrichment Center to support staff by
modeling and coaching social skills, emotional
regulation, and providing trauma informed care with
the children.
Fresno Rescue Mission The Fresno Rescue Mission is one of MMC's main local resources for supporting unsheltered/housing
insecure clients and families. MMC often referrs
clients/families seeking services but who are not
experiencing domestic violence to the Rescue
Mission for assistance. The Rescue Mission has
services that operate 24/7, which allow us to
connect a client quickly should they be in need of
shelter at the time of seeking services with us.
4. Project/Program Budget
a. The City is interested in applicants that can deploy activities in a timely manner (12 months) while balancing the need to maintain high standards of program delivery. Please propose how you will address this need.
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The activities MMC intends to provide with funding through the CDBG program are existing and therefore do not require any additional start-up time for implementation. MMC expects that we will be able to deliver high standards for program delivery and support services immediately upon notification of award.
b. List of Funding Sources
Provide all planned funding anticipated/ committedfor this activity for PY 2024- 2025. 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
California Office
of Emergency
Services
Domestic
Violence
Assistance
Program
475,000 Pending 10/1/2024
Department of
Housing and
Urban
Development
Coordinated
Entry
242228 Committed 9/1/2024
City of Fresno HHAP 110,167 Pending 7/1/2024
County of
Fresno
Marriage
License Fees
130,500 Pending 10/1/2024
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Private Funds Donations 226,114 Pending 7/1/2024
c. Activity Budget Summary and Narrative
Please complete Exhibit A – Operating Budget Summary.
The above referenced Budget worksheet is available at www.fresno.gov/housing under the ‘Notices of Funding Available’ tab.
An Exhibit B – Budget Narrative must also be completed to provide a brief explanation of the expenses included in the budget.
Please note the following costs are not allowable for CDBG: bad debts; contingencies; contributions and donations; entertainment costs (including meals for social events and awards/graduation banquets); gifts or incentive awards to individuals; fines and penalties resulting from violations of or non-compliance with Federal, State, and Local laws; interest on borrowed capital; fundraising; investment management.
d. Prior-Year Financial Statement
Please attach a financial statement labeled as Exhibit C 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 – Prior-year 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 prior-year unaudited financial statement when total federal grant awards for the annual audit period was less than $750,000
Optional Additional Exhibits:
EXHIBIT – Funding Commitment Letters (if available)
EXHIBIT D – Letters of Support (optional – maximum 2)
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
EXHIBIT E – Service Area Map (required if not described in 3.f.) Salaries &
Wages Fringe Benefits
Totals
(City of Fresno
HUD Funds)
Other Federal
Funds State Funds Local Govm't
Funds
Private / Donor
Funds
Other Funds
(specify)
Salaries/Wages (Specify each position; add additional rows as needed) Direct Service Personnel:
Residential Team Member 146,661.00 25,470.45 172,131.45 113,969.00 65,000.00 246,872.45 35,000.00 632,972.90 Case Manager 119,705.00 24,106.00 143,811.00 52,845.00 196,656.00 Lead CRT 24,221.00 4,552.00 28,773.00 43,160.00 71,933.00 Crisis Response Team 89,930.00 19,900.00 109,830.00 425,000.00 180,350.00 715,180.00 Maintenance Technician ‐ 17,288.00 147,359.00 164,647.00 Administrative Personnel:
Housing Manager ‐ 30,000.00 35,819.62 65,819.62 Crisis Response Manager ‐ 25,000.00 68,390.00 93,390.00 [enter position title] ‐ ‐ Independent Contractors / Consultants:
[enter position title] ‐ ‐ [enter position title] ‐ ‐
TOTAL PERSONNEL
BUDGET $ 380,517.00 $ 74,028.45 $ 454,545.45 $ 563,969.00 $ 17,288.00 $ 95,000.00 $ 246,872.45 $ 562,923.62 $ 1,940,598.52 Other Direct Costs (Include only costs that are direct; indirect costs are covered under the Indirect Cost Rate) Hotels/Motels 10,000.00 7,000.00 15,000.00 136,000.00 168,000.00 Repairs and Maintenance 25,000.00 5,000.00 5,000.00 100,000.00 135,000.00 Security Expense 2,000.00 110,000.00 112,000.00 Utitlies 18,000.00 17,500.00 42,500.00 78,000.00 Food and Food Supplies 25,000.00 25,000.00 13,000.00 63,000.00 Software 25,250.00 25,000.00 39,750.00 90,000.00 Program Supplies 2,300.00 2,300.00 15,000.00 14,400.00 34,000.00 Telephone Expense 5,500.00 5,500.00 10,000.00 21,000.00 Equipment Rental 1,080.00 8,920.00 10,000.00 Mileage 2,700.00 450.00 3,150.00 [enter cost category] ‐
TOTAL OTHER DIRECT
COSTS $ ‐ $ 116,830.00 $ 19,800.00 $ 22,500.00 $ 80,000.00 $ 475,020.00 $ 714,150.00 INDIRECT COSTS* (Select 1 indirect rate Only)
Approved Indirect Cost Rate ‐
De minimus 10 % Rate 45,454.55 8,750.00 13,000.00 67,204.55
TOTAL INDIRECT COST
BUDGET $ 45,454.55 $ 8,750.00 $ ‐ $ 13,000.00 $ ‐ $ ‐ $ 67,204.55 TOTAL PROJECT BUDGET $380,517.00 $ 74,028.45 $500,000.00 $689,549.00 $ 37,088.00 $130,500.00 $326,872.45 ########### ########### Please revise this form and annotate budget items as needed All applicants are required to submit a copy of their organization’s operating budget. *An approved indirect cost rate must be applied to the base identified in the agreement with the federal cognizant agency.
Per 2 CFR 200.414, any non‐federal entity that does not have a current negotiated rate may elect to charge a de minimis rate of 10% of Modified Total Direct Costs (defined in 2 CFR 200.68).
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)
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
Exhibit B: Budget Narrative
Please provide a brief narrative describing the expenses included in each category of the budget summary.
Salaries and Wages:
Residential Team Member ($48,887 annually x 3 FTE x 17.36692% fringe benefits = $172,131.50) - Provides direct services to residential clients/families who have been affected by trauma due to domestic violence in the Fresno Emergency Shelter. Provides 24-hour in-person services including assisting clients in adherence to program guidelines; providing peer counseling, working with clients to ensure a safe, secure and healthy shelter environment.
Case Manager ($59,852.50 annually x 2 FTE x 20.138% fringe Benefits = $143,811)- this position will provide comprehensive case management services within the Fresno Emergency shelter including but not limited to advocacy, case monitoring, goal setting and assisting in indentifying options, evaluating the needs of clients and referring clients to other outside agencies for additional services. Each Case Manager will manage a case load of up to 20 clients.
Lead Crisis Response Team Member- ($60,552 annually x .40 FTE x 18.795% fringe benefits= $28,773)- Under the direction of the Crisis Response Manager, this position will provide direct support and monitoring for the daily operations within the Crisis Response Department. This position will review hotline and crisis assessments, interact and building community referral and emergency housing resources for those who cannot stay within the Marjaree Mason Center's programs.
Crisis Response Team- ($44,965 annually x 2 FTE x 22.128% fringe benefits = $109,830)- Responsible for the crisis response activities as it relates to responding and assisting callers who are experiencing a domestic violence crisis, calling in regard to information about supportive activities. The position will handle 24/7 hotline calls and crisis drop-in assessments and will complete all crisis drop in assessments of service needs which will include an assessment of shelter needs, provide/arrange transportation of domestic violence victims from other public community sites and facilitate domestic violence transfers from other housing programs, providing those victims/families safe housing until alternative long term safe housing arrangements are made.
Indirect Costs- 10% of direct costs- includes partial salaries of the Housing Manager, Chief Program Officer, Human Resources and MMC's Data Analyst.
Reports of Independent Auditors and
Financial Statements with Supplementary Information
Marjaree Mason Center, Inc.
September 30, 2023
(with Summarized Comparative Information for the
Year Ended September 30, 2022)
Table of Contents
REPORT OF INDEPENDENT AUDITORS................................................................................................................1
FINANCIAL STATEMENTS
Statements of Financial Position..........................................................................................................................5 Statement of Activities and Changes in Net Assets.............................................................................................6 Statement of Functional Expenses ......................................................................................................................7 Statements of Cash Flows ...................................................................................................................................8 Notes to Financial Statements .............................................................................................................................9
SUPPLEMENTARY INFORMATION
Schedule of Expenditures of Federal Awards....................................................................................................24 Notes to Schedule of Expenditures of Federal Awards .....................................................................................25
SINGLE AUDIT REPORTS
REPORT OF INDEPENDENT AUDITORS 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
REPORT OF INDEPENDENT AUDITORS ON COMPLIANCE FOR THE MAJOR FEDERAL
PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE..............................................................................................................................29 Schedule of Findings and Questioned Costs.....................................................................................................32
OTHER INFORMATION
Combining Schedule of Revenue, Support, and Expenses – Unaudited ..........................................................36 1 Report of Independent Auditors
The Board of Directors
Marjaree Mason Center, Inc.
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Marjaree Mason Center, Inc. (the “Organization”), which comprise the statement of financial position as of September 30, 2023, and the related statements of activities and changes in net assets, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of Marjaree Mason Center, Inc. as of September 30, 2023, and the changes 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.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (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 the Organization and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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 the Organization’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.
2 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 is not a guarantee that an audit conducted in accordance with GAAS 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 GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’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 the Organization’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
3 Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) 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 GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.
Summarized Comparative Information
We have previously audited the Organization’s 2022 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated January 16, 2023.
In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Information
Management is responsible for the other information included in the report. The other information comprises the combining schedule of revenue, support and expenses but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2024 on our consideration of the Organization’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 the Organization’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 the Organization’s internal control over financial reporting and compliance.
Fresno, California
January 30, 2024
Financial Statements
Marjaree Mason Center, Inc.
5 See accompanying notes to financial statements.
Statements of Financial Position
September 30, 2023 and 2022
2023 2022
CURRENT ASSETS
Cash and cash equivalents $ 1,841,976 $ 2,579,744
Investments in marketable securities 3,099,016 2,882,821 Grants receivable 751,468 640,690
Other receivables 290 4,763
Pledges receivable, current portion 2,363,856 159,952
Prepaid expenses 169,872 149,969
Deposits 35,641 125,025
Total current assets 8,262,119 6,542,964
PROPERTY AND EQUIPMENT, net 9,298,323 2,582,410
CONSTRUCTION IN PROGRESS 252,671 -
PLEDGES RECEIVABLE, net of current portion 2,462,000 25,000 BENEFICIAL INTEREST IN PERPETUAL TRUSTS, net 220,975 184,500 Total assets $ 20,496,088 $ 9,334,874
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 431,342 $ 247,737 Accrued salaries and benefits 327,189 316,091
Deferred revenue 188,313 220,600
Refundable advances 92,647 -
Note payable 2,000,000 -
Total liabilities 3,039,491 784,428
NET ASSETS
Without donor restriction 11,324,480 6,430,976
With donor restriction 6,132,117 2,119,470
Total net assets 17,456,597 8,550,446
Total liabilities and net assets $ 20,496,088 $ 9,334,874 ASSETS
LIABILITIES AND NET ASSETS
Marjaree Mason Center, Inc.
See accompanying notes to financial statements. 6
Statement of Activities and Changes in Net Assets
Year Ended September 30, 2023
(with Summarized Comparative Information for Year Ended September 30, 2022) Without Donor With Donor Total
Restriction Restriction 2023 2022
REVENUES, GAINS, AND
OTHER SUPPORT
Grants and contracts $ 5,513,020 $ - $ 5,513,020 $ 5,413,940 Contributions 802,697 8,176,948 8,979,645 2,945,544
In-kind donations 2,396,260 - 2,396,260 101,521
Special events 571,542 - 571,542 521,886
Program fees 219,428 - 219,428 145,948
Other income 12,922 - 12,922 14,700
Legacies and bequests 333,610 - 333,610 100,000
Net realized and unrealized (loss) gain in
fair value of perpetual trusts - 36,475 36,475 (85,438) Interest and dividend income, net 87,203 - 87,203 53,739 Net realized and unrealized (loss) gain in
fair value of investments 132,669 - 132,669 (555,060)
Total revenues, gains, and
other support 10,069,351 8,213,423 18,282,774 8,656,780
NET ASSETS RELEASED
FROM RESTRICTIONS
Restrictions satisfied by payment
of related expenses 4,200,776 (4,200,776) - -
Total revenues, gains, and
other support after net assets
released from restrictions 14,270,127 4,012,647 18,282,774 8,656,780
EXPENSES
Program services 7,355,181 - 7,355,181 6,592,236
Supporting services 1,077,174 - 1,077,174 1,222,750
Fundraising 819,657 - 819,657 768,309
Total expenses 9,252,012 - 9,252,012 8,583,295
CHANGES IN NET ASSETS 5,018,115 4,012,647 9,030,762 73,485 NET ASSETS, beginning of year 6,430,976 2,119,470 8,550,446 8,510,114
GRANT FUNDED ASSETS
Contributions - - - 85,086
Depreciation (124,611) - (124,611) (118,239)
Changes in grant funded assets (124,611) - (124,611) (33,153) NET ASSETS, end of year $ 11,324,480 $ 6,132,117 $ 17,456,597 $ 8,550,446 Marjaree Mason Center, Inc.
See accompanying notes to financial statements. 7
Statement of Functional Expenses
Year Ended September 30, 2023
(with Summarized Comparative Information for Year Ended September 30, 2022) Advocacy and Total
Emergency Rehousing Legal Other Program Supporting
Services Services Assistance Programs Services Services Fundraising 2023 2022 Accounting and legal $ 50,000 $ 5,500 $ - $ 3,000 $ 58,500 $ 21,568 $ 1,813 $ 81,881 $ 76,229 Advertising 780 - 81,945 61,854 144,579 1,639 28,330 174,548 17,141 Bad debt expense - - - - - 15,000 - 15,000 2,500
Bank charges - - - - - 804 - 804 88
Computer services 17,715 3,761 1,600 2,196 25,272 4,833 1,338 31,443 38,463 Conferences, conventions,
and meetings 38,492 7,211 3,202 21,597 70,502 11,077 89,174 170,753 117,406 Depreciation 136,838 25,826 - - 162,664 15,592 - 178,256 183,057 Donated services and supplies 28,024 37,743 - 880 66,647 13,584 19,125 99,356 108,062 Dues and subscriptions 17,595 1,610 4,995 119 24,319 6,718 8,672 39,709 27,392 Employee benefits 498,191 97,192 36,281 59,885 691,549 147,194 39,101 877,844 838,329 Equipment rental, repairs,
and maintenance 274,472 94,341 11,018 19,831 399,662 38,016 44,388 482,066 526,996 Food 69,457 395 - 140 69,992 251 1,148 71,391 121,674
Insurance 56,406 6,349 1,589 2,261 66,605 36,053 1,038 103,696 73,587 Interest - - - - - 14 - 14 316
Miscellaneous 190 - - 675 865 1,608 229 2,702 4,136
Office expense 14,430 3,667 650 919 19,666 29,972 5,395 55,033 59,038 Printing 7,186 7,159 270 8,385 23,000 2,410 35,694 61,104 61,296 Professional fees 255,844 7,816 25,000 26,701 315,361 84,698 136,460 536,519 395,607 Program supplies 373,536 507,362 542 48,168 929,608 13,349 44,293 987,250 1,425,797 Rent 119,240 16,021 1,122 22,997 159,380 36 82,215 241,631 177,434 Salaries 2,551,065 532,263 259,257 315,162 3,657,747 608,953 272,763 4,539,463 3,941,852 Security 145,580 1,630 - 27 147,237 279 3,759 151,275 106,694 Taxes and licenses 11,163 - - - 11,163 (485) - 10,678 23,963 Utilities 259,356 39,903 6,735 4,869 310,863 24,011 4,722 339,596 256,238 $ 4,925,560 $ 1,395,749 $ 434,206 $ 599,666 $ 7,355,181 $ 1,077,174 $ 819,657 $ 9,252,012 $ 8,583,295 Total
Program Services
Marjaree Mason Center, Inc.
8 See accompanying notes to financial statements.
Statements of Cash Flows
Years Ended September 30, 2023 and 2022
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in net assets $ 6,730,762 $ 73,485
Adjustment to reconcile changes in net assets to net cash from operating activities:
Depreciation 178,256 183,057
Bad debt expense 15,000 2,500
Net realized and unrealized (gain) loss on investments
and perpetual trusts (169,144) 640,498
Dividend income, reinvested (7,637) (12,850)
Changes in operating assets and liabilities:
Grants receivable (125,778) 379,788
Pledges receivable (4,640,904) (11,485)
Other receivables 4,473 (4,763)
Prepaid expenses (19,903) (52,166)
Deposits 89,384 (96,227)
Accounts payable and accrued expenses 183,605 83,379
Accrued salaries and benefits 11,098 61,694
Deferred revenue (32,287) 60,250
Refundable advances 92,647 (327,888)
Net cash from operating activities 2,309,572 979,272
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for construction in progress (252,671) -
Purchase of property and equipment (4,718,780) (42,639) Proceeds from distribution of beneficial interest in perpetual trust - 551,781 Purchases of investments (1,829,036) (2,350,847)
Proceeds from sale of investments 1,753,147 585,829
Net cash from investing activities (5,047,340) (1,255,876)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on note payable 2,000,000 -
NET CHANGES IN CASH AND CASH EQUIVALENTS (737,768) (276,604) CASH AND CASH EQUIVALENTS, beginning of year 2,579,744 2,856,348 CASH AND CASH EQUIVALENTS, end of year $ 1,841,976 $ 2,579,744
SUPPLEMENTAL DISCLOSURE OF NONCASH
INVESTING AND FINANCING ACTIVITIES
In-kind contributions $ 2,396,260 $ 101,521
Marjaree Mason Center, Inc.
9 Notes to Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of activities – Marjaree Mason Center, Inc. (the “Organization”), a California nonprofit corporation, operates shelters for victims of domestic violence and their children, and provides counseling, education, and other related services in Fresno County and surrounding areas. The Organization receives funding for its programs and operations from a variety of governmental and community sources, including, but not limited to, the City of Fresno, the County of Fresno, U.S. Department of Housing & Urban Development, and the California Office of Emergency Services.
Method of accounting – The Organization uses the accrual basis method of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Use of estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Accounting pronouncements recently adopted – Effective October 1, 2022, the Organization changed its method of accounting for leases as a result of the Organization’s adoption of the Financial Accounting Standards Boards Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), under the modified retrospective approach, applying the standard to the beginning of the period of adoption. Results for reporting periods beginning on or after October 1, 2022 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 840. The cumulative-effect adjustment recognized within equity was zero. The Company elected to adopt the following practical expedients in connection with its adoption of ASC 842:
• Package of practical expedients, which must be elected as a package, to leases that commenced before October 1, 2022, which permit an entity to (1) not reassess whether any expired or existing contracts are or contain leases (2) not reassess the lease classification and (3) reassess initial direct costs. • Practical expedient to use hindsight in determining the lease term.
Marjaree Mason Center, Inc.
Notes to Financial Statements
10 Leases – The Organization determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and reassesses that conclusion, if the arrangement is modified. When the Organization determines the arrangement is a lease, or contains a lease, at lease inception, a determination is made as to whether the lease is an operating lease or a finance lease. Operating leases result in the Organization recording a right-of-use (ROU) asset and lease liability on its balance sheet. ROU assets represent the Organization’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are initially recognized based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Organization uses the implicit interest rate in the lease, if readily determinable, or when the implicit interest rate is not readily determinable, the Organization has made an accounting policy election to use of a risk-free discount rate, determined using a period comparable with that of the lease term. Rent expense from operating leases is recognized on a straight-line basis over the term of the leases. The Organization has elected the short-term lease recognition exemption for all applicable classes of underlying assets. Leases with an internal term of 12 months or less, that do not include an option to purchase the underlying asset that the Organization is reasonably certain to exercise, are not recorded on the statement of financial position. The Organization elected to treat lease and nonlease components as a single lease component.
Revenue recognition – Contributions, legacies and bequests, and unconditional grants are recognized as support and revenues when they are received or unconditionally pledged. These contributions are shown as restricted support and revenues if they are subject to time or donor restrictions. Net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities and changes in net assets as net assets released from restrictions when a stipulated time restriction ends, purpose restriction is accomplished, or both; however, contributions and grants with donor restrictions are reported as support and revenues without donor restrictions if the restriction is met in the same year that the gift is received.
Conditional contributions are not recorded as support and revenues until the conditions are met. Payments classified as exchange transactions (reciprocal transfers between two entities in which goods and services of equal value is exchanged) are not recorded as other support and revenue until allowable expenditures are incurred.
Special events revenue is recognized at a point in time when the event takes place. Amounts collected in advance of the event are deferred until the event is conducted.
Program fees revenue is recognized at a point in time when the service takes place and consists of amounts collected for education and training program services provided to program participants.
Grant arrangements have been evaluated and determined to be nonreciprocal, meaning the granting entity has not received a direct benefit in exchange for the resources provided. Instead, revenue is recognized as a conditional contribution—when the barrier to entitlement is overcome. The barrier to entitlement is considered overcome when expenditures associated with the grant are determined to be allowable and all other significant conditions of the grant are met. The largest of these grants supports the Organization’s emergency services and rehousing services programs to operate their shelters for victims of domestic violence and their children, and to provide counseling and educational services.
Marjaree Mason Center, Inc.
Notes to Financial Statements
11 Conditional grant revenue recognition – In accordance with Accounting Standards Codification (“ASC”) 958- 605, Not-for-Profit Entities—Revenue Recognition (“ASC 958-605”), for conditional grants, the Organization accounts for these grants initially as refundable advances until the conditions of the grant are substantially met.
Classification of net assets – Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions as follows:
Without donor restriction – Net assets not subject to use or time restrictions. A portion of these net assets may be designated by the Board of Directors for specific purposes. At September 30, 2023 and 2022, there were no board-designated net assets.
With donor restriction – Defined as that portion of net assets that consist of a restriction on the specific use or the occurrence of a certain future event. Net assets with donor restriction represent amounts collected by the Organization to be spent on specific purposes or activities. Restrictions on net assets are usually met within a year of receiving the amount restricted.
Cash and cash equivalents – For purposes of reporting the statements of cash flows, the Organization considers cash accounts, money market accounts, and certificates of deposits with original maturities of three months or less to be cash equivalents. Accounts at each financial institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At September 30, 2023 and 2022, the Organization had approximately $1,591,976 and $1,943,000 of uninsured cash balances, respectively. The Organization has not experienced any losses on those deposits and believes it is not exposed to any significant credit risk.
Investments in marketable securities – Investments in marketable securities consist primarily of publicly traded mutual funds and common stock and are recorded at fair value. These investments are covered by the Securities Investor Protection Corporation up to $500,000 (including $250,000 of cash). Investment income and unrealized gains and losses, net of investment expenses, are reported in the statement of activities and changes in net assets.
Grants receivable – The Organization utilizes the allowance method of accounting for and reporting uncollectible or doubtful accounts. Management determines the allowance for doubtful accounts based on an analysis of specific customers, taking into consideration the age of the past due accounts and an assessment of the customer’s ability to pay. At September 30, 2023 and 2022, management considered all grants receivable balances to be fully collectible and, therefore, no allowance for doubtful accounts has been recorded. Grants receivable are written off when deemed uncollectible. Recoveries of grants receivable previously written off are recorded as income when received.
The Organization grants credit to its customers, substantially all of which are government agencies (federal, state, and local) and generally requires no collateral from its customers.
Contributions and pledges receivable – Unconditional contributions, including pledges to give at estimated net realizable value, are recognized as revenue in the period received. The Organization reports conditional contributions as with donor restriction support if they are received with donor stipulations that limit the use of the donated assets. No discount to net the net present value of pledges was considered necessary by the Organization as it was not material to the financial statements as a whole. Pledges receivable at September 30, 2023 and 2022, amounted to $4,825,856 and $184,952, respectively.
Marjaree Mason Center, Inc.
Notes to Financial Statements
12 Property and equipment – According to the Organization’s policy, property and equipment acquisitions over $2,500 are capitalized. Purchased property and equipment is capitalized at cost, donated property and equipment is recorded at fair value. The Organization does not imply restrictions on the use of contributed property and equipment received without donor stipulations. Expenditures that increase the life of the related assets are capitalized. Repairs and maintenance, including planned major maintenance activities, are charged to operations when incurred. Leasehold improvements are depreciated over the lesser of the remaining lease agreement or the estimated useful life.
Depreciation is computed using the straight-line method over the following estimated useful lives:
Buildings and land improvements 5–40 years
Furnishings, equipment, and vehicles 5–10 years
Property and equipment purchased with federal funds is subject to various usage, maintenance, and disposition provisions of the Uniform Guidance, as well as any additional provisions established by the funding agency.
Deferred revenue – Deferred revenue represents special event revenues received by the Organization in advance of the event’s occurrence and grant monies billed but not yet received or earned.
In-kind contributions – Contributions of noncash assets are utilized by the Organization in providing services and are recorded at their fair values in the period received. Contributions of noncash assets received for fundraising events (such as catering, entertainment, etc.) are not recorded in the accompanying financial statements. In addition, contributions of noncash assets to be sold at fundraising events by the Organization are recorded at the time of sale. Contributions of donated services that create or enhance nonfinancial assets or require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair values in the period received.
A number of unpaid volunteers have made significant contributions of their time to the Organization. However, the value of these services is not reflected in the accompanying financial statements because U.S. GAAP does not allow for the recognition of nonspecialized services. The values of professional services provided by trained volunteers are recorded in the accompanying financial statements (see Note 13).
Advertising costs – Advertising costs, except for costs associated with direct-response advertising, are charged to operations when incurred. The costs of direct-response advertising are capitalized and amortized over the period during which future benefits are expected to be received. For the years ended September 30, 2023 and 2022, advertising costs expensed amounted to $174,548 and $17,141, respectively; no costs were capitalized.
Allocation of expenses – The costs of providing various programs and activities have been summarized on a functional basis in the statements of activities and changes in net assets and functional expenses. During the year, such costs are accumulated into separate groupings as either “direct” or “indirect.” Indirect or shared costs are allocated among program and support services by a method that best measures the relative degree of benefit, such as square footage, hours worked, and employee headcount. Accordingly, certain costs have been allocated among the programs and supporting services benefited.
Fundraising expenses – Costs of acquiring or applying for a contract or grant are categorized as indirect expenses and not separately stated as fundraising expenses. Fundraising expenses are expensed as incurred.
Marjaree Mason Center, Inc.
Notes to Financial Statements
13 Income taxes – The Organization is a tax-exempt corporation under Section 501(c)(3) of the Internal Revenue Code and section 23701(d) of the State of California Corporate Code. The Organization is subject to taxation on any unrelated business income.
Uncertain tax positions – The Organization recognizes the effect of income tax provisions only if those positions are more likely than not of being sustained. The Organization does not believe its financial statements include any uncertain tax positions.
Summarized comparative information – The accompanying financial statements include certain prior-year comparative information in summarized form without net asset class detail or functional expense allocation detail.
Such information does not include sufficient detail to constitute a presentation in conformity with U.S. GAAP.
Accordingly, such information should be read in conjunction with the Organization’s financial statements for the prior year ended September 30, 2022, from which the summarized information was derived.
Marjaree Mason Center, Inc.
Notes to Financial Statements
14 NOTE 2 – INVESTMENTS IN MARKETABLE SECURITIES
Investments in marketable securities consisted of the following at September 30:
2023 2022
Mutual funds:
CVCF Social Impact Pooled Investment $ 238,866 $ 208,165 JP Morgan Equity Income CLI 177,241 165,952
Fidelity Advisor Strategic Income CLI 155,040 104,686
MFS Total Return Bond CLI 149,365 117,483
Federated Hermes Strategic Value 146,487 52,439
Columbia Strategic Income CLZ 125,346 114,580
PGIM Floating Rate Income CL Z 123,158 120,284
AB High Income Advisor CL 111,201 107,985
Western Asset Core Plus Bond CLI 105,359 73,814
PGIM High Yield CLZ 100,727 -
Columbia Disciplined Cor Instl Cl 99,846 124,546
Mainstay CBRE Global Infra CLI 97,990 98,696
Brandywineglobal Global Opptys Bond CL I 89,663 91,280
Columbia Select Global Equity 89,119 74,734
Transamerica Intl Equity CLI 73,617 39,858
BNY Mellon International Bond CLI 60,864 58,639
Columbia Seligman Global Technology CLZ 56,843 42,715
Blackstone Alt Multi Strategy CLI 54,989 75,766
BNY Mellon Global Real Return CLI 44,573 75,784
Delaware Small Cap Core CLI 43,002 40,210
AB Sustainable Global Thematic Advisor CL 41,411 36,055 Janus Henderson Global Real Estate CLI 30,869 52,335
Columbia Ultra Short Term Bond CLA - 248,700
Pioneer Multi Asset Ultrashort Income CLA - 247,538
Fidelity Advisor Short Term Bond CLA - 237,168
Janus Henderson High Yield CLI - 85,366
Invesco Balanced Risk Alloc CLY - 40,230
Janus Henderson Global Life Sciences CLI - 27,385
Columbia Strategic Income CLZ - 10,951
Total mutual funds 2,215,576 2,773,344
Certificates of Deposit:
Zions Bancorp NA Salt Lake City UT CD 250,000 -
Amalgamated Bank New York NY CD 249,000 -
Bank of America NA Charlotte NC CD 250,000 -
Total certificate of deposits 749,000 -
Exchange-traded funds:
SPDR S&P 500 ETF 124,175 102,133
Money market fund:
Ameriprise Insured Money Market 10,265 7,344
Total investments in marketable securities $ 3,099,016 $ 2,882,821 Marjaree Mason Center, Inc.
Notes to Financial Statements
15 During the years ended September 30, 2023 and 2022, dividend income reinvested into mutual funds was approximately $7,600 and $12,850, respectively. During the years ended September 30, 2023 and 2022, net realized and unrealized gain/(loss) was $132,669 and $(550,060), respectively. During the years ended September 30, 2023 and 2022, proceeds from the sales of investments were $1,753,147 and $585,829, respectively.
NOTE 3 – FAIR VALUE MEASUREMENTS
The Organization’s investments are reported at fair value in the accompanying statements of financial position.
The methods used to measure fair value may produce an amount that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Organization believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The fair value measurement accounting literature establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Organization uses appropriate valuation techniques based on the available inputs to measure the fair value of its investments. When available, the Organization measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair value.
The three levels of the fair value of hierarchy are described below:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access.
Level 2 – Inputs to the valuation methodology include:
• Quoted market prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Level 1 fair value measurements – The fair value of mutual funds and exchange traded funds are based on quoted prices in active markets for identical assets.
Marjaree Mason Center, Inc.
Notes to Financial Statements
16 Level 2 fair value measurements – The fair value of certificate of deposits are based on pricing models maximizing the use of observable inputs for similar securities, which includes basing value on yields current available on comparable securities.
Level 3 fair value measurements – The fair value of interest in perpetual trusts are based on unobservable models.
The following table sets forth by level, within the fair value hierarchy, the Organization’s assets measured at fair value on a recurring basis as of September 30, 2023:
Level 1 Level 2 Level 3 Total
Mutual funds:
Blended Bond $ 198,045 $ - $ - $ 198,045
Domestic Stock 601,795 - - 601,795
International Bond 352,696 - - 352,696
Blended Asset 443,482 - - 443,482
Blended Stock 372,062 - - 372,062
Domestic Bond 247,496 - - 247,496
Total mutual funds 2,215,576 - - 2,215,576
Exchange-traded funds 124,175 - - 124,175
Money market funds 10,265 - - 10,265
Certificates of deposit - 749,000 - 749,000
Beneficial interest in perpetual trusts - - 220,975 220,975 Total assets at fair value $ 2,350,016 $ 749,000 $ 220,975 $ 3,319,991 Fair Value Measurements
The following table sets forth by level, within the fair value hierarchy, the Organization’s assets measured at fair value on a recurring basis as of September 30, 2022:
Level 1 Level 2 Level 3 Total
Mutual funds:
Blended Bond $ 1,379,081 $ - $ - $ 1,379,081
Domestic Stock 538,873 - - 538,873
International Bond 225,684 - - 225,684
Blended Asset 116,013 - - 116,013
Blended Stock 388,162 - - 388,162
Domestic Bond 125,531 - - 125,531
Total mutual funds 2,773,344 - - 2,773,344
Exchange-traded funds 102,133 - - 102,133
Money market funds 7,344 - - 7,344
Beneficial interest in perpetual trusts - - 184,500 184,500 Total assets at fair value $ 2,882,821 $ - $ 184,500 $ 3,067,321 Fair Value Measurements
Marjaree Mason Center, Inc.
Notes to Financial Statements
17 The Organization’s policy is to recognize transfers into and out of Levels 2 and 3 inputs as of the date of the event or change in circumstances that caused the transfer. The following table summarizes certain changes in the fair value of the Organization’s Level 3 investments for the years ended September 30:
2023 2022
Beneficial interest in perpetual trusts, beginning of year $ 184,500 $ 829,755 Increase/(decrease) in value of investments 36,475 (93,473) Transfers out - (551,782)
Beneficial interest in perpetual trusts, end of year $ 220,975 $ 184,500 NOTE 4 – GRANTS RECEIVABLE
Grants receivable consisted of the following at September 30:
2023 2022
California Office of Emergency Services $ 285,157 $ 259,984 U.S. Department of Housing and Urban Development 151,293 129,623 County of Fresno 144,633 137,336
The California Partnership to End Domestic Violence (CPEDV) 67,350 - City of Fresno 46,414 38,237
FEMA 31,850 44,916
First 5 of Fresno County 13,948 -
Westcare 9,838 18,019
Madera County 985 4,230
Fresno Unified - 8,345
$ 751,468 $ 640,690
NOTE 5 – PLEDGES RECEIVABLE
Pledges receivable consisted of the following at September 30:
2023 2022
Pledges receivable in less than one year $ 2,363,856 $ 159,952 Pledges receivable in one to five years 2,462,000 25,000 $ 4,825,856 $ 184,952
Marjaree Mason Center, Inc.
Notes to Financial Statements
18 NOTE 6 – PROPERTY AND EQUIPMENT
Property and equipment consisted of the following at September 30:
2023 2022
Building and land improvements $ 4,990,873 $ 4,990,873
Leasehold improvements 94,546 94,546
Equipment 112,726 93,946
Buildings 5,987,110 660,387
Furniture and fixtures 46,495 47,748
Vehicles 247,470 247,470
Land 1,702,341 29,064
13,181,561 6,164,034
Less: accumulated depreciation (3,883,238) (3,581,624)
$ 9,298,323 $ 2,582,410
The Organization incurred depreciation expense, including grant funded assets, of $302,867 and $301,296 for the years ended September 30, 2023 and 2022, respectively.
Construction in progress of $252,671 as of September 30, 2023 consists of improvements to a new office and program facilities building purchased during the year ended September 30, 2023.
NOTE 7 – BENEFICIAL INTEREST IN PERPETUAL TRUSTS
Beneficial interest in perpetual trusts consisted of the Organization’s percentage interest in three separate perpetual trusts accounted for as split-interest agreements. The Organization values its interest in these trusts based on the fair value of each trust’s underlying assets. Balances consisted of the following at September 30:
2023 2022
Burks’ Trust (5% interest) $ 211,715 $ 175,598
Nine Trust (5% interest) 9,260 8,902
Rea's Trust (10% interest) 70,276 70,276
291,251 254,776
Less: allowance for beneficial interest in perpetual trusts (70,276) (70,276) $ 220,975 $ 184,500
Marjaree Mason Center, Inc.
Notes to Financial Statements
19 During the years ended September 30, 2023 and 2022, the Organization’s portion of unrealized gain and (loss) were $36,475 and $(85,438), respectively. No distributions were received during the year ended September 30, 2023. During the year ended September 30, 2022, the Organization received a distribution from the Rea’s Trust in the amount of $551,781. At September 30, 2023 and 2022, beneficial interest in perpetual trusts was shown net of an allowance of $70,276.
NOTE 8 – REFUNDABLE ADVANCES
The Organization was awarded a grant from the City of Fresno in the amount of $1,067,297 for emergency shelter needs for domestic survivors related to the novel coronavirus (“COVID-19”) pandemic, with half of the amount distributed upon execution of the contact and the other half distributed after completion of a successful performance review. In accordance with ASC 958-605 for conditional grants, the Organization is accounting for this grant as a refundable advance until the conditions of the grant are substantially met. At September 30, 2023, $92,647 of the refundable advance was remaining.
NOTE 9 – NOTE PAYABLE
The Organization obtained a note payable from the Trust of Janell Boldt, in the amount of $2,000,000 in November 2022. The note bears interest at a rate of 4.10%. The outstanding balance on this note payable as of September 30, 2023 was $2,000,000. Subsequent to year-end, the note was paid in full in December 2023.
NOTE 10 – NET ASSETS WITH DONOR RESTRICTION
Amounts received from various donors for specific purposes are reported as net assets with donor restriction.
Once the net assets are expended for their specified purposes, the assets are released from restriction. Net assets with donor restriction consisted of the following at September 30:
2023 2022
Bullard site $ 5,285,594 $ 1,178,296
Shelter, food, and supplies for clients and children 421,637 493,801 Beneficial trusts 220,975 184,500
Clovis shelter 102,204 137,457
Programs and counseling 85,579 114,151
Auto and facilities maintenance 6,754 6,905
Education and outreach 9,374 4,360
$ 6,132,117 $ 2,119,470
Net assets released from restriction during the years ended September 30, 2023 and 2022, totaled $4,200,776 and $1,526,120, respectively.
Marjaree Mason Center, Inc.
Notes to Financial Statements
20 NOTE 11 – RETIREMENT PLAN
The Organization established a 401(k) Retirement Plan covering all active, full-time employees aged 21 or older.
Matching contributions of $44,800 and $46,939 were made during the years ended September 30, 2023 and 2022, respectively.
NOTE 12 – IN-KIND DONATIONS
In-kind donations consisted of the following for the years ended September 30:
2023 2022
Trained volunteers $ 58,060 $ 57,951
Fresno, Clovis, and Reedley shelters 7,200 12,120
Fresno office building 2,300,000 -
Meathead Movers 31,000 31,000
Donated meals - 450
$ 2,396,260 $ 101,521
The Organization’s policy related to in-kind donations is to utilize the assets given to carry out the mission of the Organization. If an asset is provided that does not allow the Organization to utilize it in its normal course of business, the asset will be sold at its fair market value as determined by appraisal or specialist depending on the type of asset.
The Organization was provided professional clinical services at no cost to service the individuals in their shelters and other programs. Based on current market rates for these services, the Organization would have paid $65,260 and $70,071 for the years ended September 30, 2023 and 2022, respectively.
As part of the Organization’s purchase of a building for administrative and program activities, the Organization was provided an in-kind donation via a reduction of the purchase price from the seller of $2,300,000.
The Organization was provided discretionary moving services from Meathead Movers to support victims of domestic violence in Fresno County. Based on current market rates for these services, the Organization would have paid $31,000 for each of the years ended September 30, 2023 and 2022.
All in-kind donations received by the Organization for the years ended September 30, 2023 and 2022, were considered without donor restrictions and able to be used by the Organization as determined by the board of directors and management.
NOTE 13 – CONTINGENCIES AND CONCENTRATIONS
Federal, state, and local grants – Amounts received from grant agencies are subject to audit and adjustment by grantor agencies, principally the state and federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the Organization. There are currently no pending audits or proposed adjustments.
Marjaree Mason Center, Inc.
Notes to Financial Statements
21 Economic dependency – The Organization receives a majority of its funding through various programs and contracts with federal, state, local, and private agencies. Grants and contracts for the years ended September 30, 2023 and 2022, comprise approximately 55% and 76%, respectively, of total revenue without donor restriction.
The following is a summary of total grants and contracts received by granting and contracting agency for the year ended September 30, 2023:
Granting and Contracting Agency Amount Percentage
Department of Housing and Urban Development $ 1,828,463 33.17% California Office of Emergency Services 1,406,018 25.50% City of Fresno 729,841 13.24%
County of Fresno 873,810 15.85%
Other contracts 226,701 4.11%
Federal Emergency Management Agency 68,784 1.25%
Fresno Unified School District 124,991 2.27%
Madera District 22,112 0.40%
Westcare 41,342 0.75%
First 5 of Fresno County 13,948 0.25%
Family Stabilization 109,660 1.99%
The California Partnership to End Domestic Violence 67,350 1.22% $ 5,513,020 100.00
The following is a summary of total grants and contracts received by granting and contracting agency for the year ended September 30, 2022:
Granting and Contracting Agency Amount Percentage
Department of Housing and Urban Development $ 1,625,075 30.02% California Office of Emergency Services 1,449,206 26.77% City of Fresno 959,955 17.73%
County of Fresno 821,887 15.18%
Other contracts 296,731 5.48%
Federal Emergency Management Agency 94,916 1.75%
Fresno Unified School District 85,345 1.58%
Madera District 28,908 0.53%
Westcare 27,062 0.50%
Saint Agnes Hospital 24,855 0.46%
$ 5,413,940 100.00
Marjaree Mason Center, Inc.
Notes to Financial Statements
22 NOTE 14 – LIQUIDITY AND FUNDS AVAILABLE
Financial assets available to meet cash needs for general expenditures within one year as of September 30, 2023, are as follows:
Financial assets:
Cash and cash equivalents $ 1,841,976
Investments in marketable securities 3,099,016
Grants receivable 751,468
Other receivables 290
Pledges receivable 4,825,856
Financial assets at September 30, 2023 10,518,606
Less those unavailable for general expenditure within one year, due to:
Noncurrent portion of pledges receivable (2,462,000)
Financial assets available to meet cash needs for general expenditures within one year $ 8,056,606
The Organization’s spending policy is to structure its financial assets to be available for operations, capital assets, and opportunities to enhance the Organization’s mission. The Organization has certain donor-restricted net assets that are available for general expenditures within one year of September 30, 2023, because the restrictions on the net assets are expected to be met by conducting the normal activities of the programs in the coming year.
NOTE 15 – SUBSEQUENT EVENTS
Subsequent events are events or transactions that occur after the statement of financial position date, but before financial statements are available to be issued. The Organization recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of financial position, including the estimates inherent in the process of preparing the financial statements. The Organization’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the statement of financial position, but arose after the statement of financial position date and before financial statements are available to be issued.
The Organization has evaluated subsequent events through January 30, 2024, which is the date the financial statements were available to be issued, and determined the following event required disclosure:
The Organization obtained a line of credit through Fresno First Bank effective December 18, 2023 for the amount of $7,000,000. The Organization used funds from the line to pay off the short term note payable in December 2023. The Organization paid off the line of credit in January 2024.
Supplementary Information
Marjaree Mason Center, Inc.
24 See notes to schedule of expenditures of federal awards.
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2023
Federal Grantor/Pass-through Grantor/Program Title
Federal Assistance Listing
Number
Pass-through Entity
Identifying Number Federal Expenditures
Community Development Block Grants - Entitlement Grants Cluster U.S. Department of Housing and Urban Development
Passed through the County of Fresno
Community Development Block Grant 14.218 A-21-313 $ 35,214 Community Development Block Grant 14.218 A-21-313 $ 2,495 Passed through the City of Fresno
Community Development Block Grant 14.218 N/A 32,170
Total Community Development Block Grants - Entitlement Grants Cluster 69,879 Continuum of Care Program
U.S. Department of Housing and Urban Development
Direct award
HUD Clovis - Supportive Housing 14.267 CA0974L9T142007 132,705 HUD Clovis - Supportive Housing 14.267 CA0974L9T142108 52,547 HUD Welcome Home 14.267 CA1480L9T141904 25,022
HUD Welcome Home 14.267 CA1185L9T142108 147,519
HUD Welcome Home 2 14.267 CA1410L9T142005 174,549
HUD Welcome Home 2 14.267 CA1410L9T142106 31,262
HUD Welcome Home 3 14.267 CA1480L9T142005 226,218
HUD Welcome Home 3 14.267 CA1480L9T142106 49,056
HUD Coordinated Entry 14.267 CA1762D9T142002 478,617
HUD Coordinated Entry 14.267 CA1762D9T1142103 35,169
HUD Coordinated Entry 2 14.267 CA1854L9141900 44,724
HUD Coordinated Entry 2 14.267 CA1854L9T142102 361,196
Total Continuum of Care Program 1,758,584
Total U.S. Department of Housing and Urban Development 1,828,463 Crime Victim Assistance
U.S. Department of Justice
Passed through the California Office of Emergency Services Domestic Violence Assistance Program 16.575 VA22011257 76,637 Domestic Violence Assistance Program 16.575 DV22361257 255,710 Unserved/Underserved Victim Advocacy 16.575 UV21041257 39,815 Unserved/Underserved Victim Advocacy 16.575 UV22011257 114,886 Housing First 16.575 XD2031257 55,167
Housing First 16.575 XD22011257 290,612
Transitional Housing - FSP 16.575 XH21041257 18,486
Transitional Housing - FSP 16.575 XH22011257 201,407
Total Crime Victim Assistance and U.S. Department of Justice 1,052,720 Emergency Food and Shelter National Board
U.S. Department of Homeland Security
Passed through Federal Emergency Management Agency
Emergency Food and Shelter National Board Program 97.024 39 5,084 Direct Award
Emergency Food and Shelter National Board Program 97.024 40 63,700 Total U.S. Department of Homeland Security 68,784
Family Violence Prevention & Services
U.S. Department of Health and Human Services
Passed through the California Office of Emergency Services Domestic Violence Assistance Program 93.671 DV22361257 79,897 Total U.S. Department of Health and Human Services 79,897 Coronavirus Relief Fund
U.S. Department of Treasury
Passed through the City of Fresno
COVID 19 - City ARPA 21.019 N/A 441,002
Total Coronavirus Relief Fund and U.S. Department of Treasury 441,002 Total Expenditures of Federal Awards $ 3,470,866
Marjaree Mason Center, Inc.
25 Notes to Schedule of Expenditures of Federal Awards
Year Ended September 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation – The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Marjaree Mason Center, Inc. (the “Organization”), under programs of the federal government for the year ended September 30, 2023. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Relationship to financial reports – Information included in the accompanying Schedule is in substantial agreement with the information reported in the related financial reports for major programs.
Program costs – 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Subrecipients – The Organization does not pass through funds to subrecipients.
NOTE 2 – INDIRECT COSTS
The Organization has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance as described in 2 CFR 200.414.
Single Audit Reports
27 Report of Independent Auditors 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
The Board of Directors
Marjaree Mason Center, Inc.
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 Marjaree Mason Center, Inc., which comprise the statement of financial position for the year ended September 30, 2023, the related statements of activities and changes in net assets, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated January 30, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Marjaree Mason Center, Inc.’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 Marjaree Mason Center, Inc.’s internal control. Accordingly, we do not express an opinion on the effectiveness of Marjaree Mason Center, Inc.’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 Marjaree Mason Center, Inc.’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. 28 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Marjaree Mason Center, 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 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 Marjaree Mason Center, Inc.’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Marjaree Mason Center, Inc.’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Fresno, California
January 30, 2024
29 Report of Independent Auditors on Compliance for the Major Federal Program and Report on Internal Control over
Compliance Required by the Uniform Guidance
The Board of Directors
Marjaree Mason Center, Inc.
Report on Compliance for the Major Federal Program
Opinion on the Major Federal Program
We have audited Marjaree Mason Center, Inc.’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on Marjaree Mason Center Inc.’s major federal program for the year ended September 30, 2023.
Marjaree Mason Center, Inc.’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, Marjaree Mason Center, Inc. complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended September 30, 2023.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Marjaree Mason Center, Inc. and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of Marjaree Mason Center, Inc.’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Marjaree Mason Center, Inc.’s federal programs.
30 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Marjaree Mason Center, Inc.’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Marjaree Mason Center, Inc.’s compliance with the requirements of the major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, 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 Marjaree Mason Center, Inc.’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of Marjaree Mason Center, Inc.’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 Marjaree Mason Center, Inc.’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed two instances of noncompliance which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2023-001. Our opinion on the major federal program is not modified with respect to this matter.
Government Auditing Standards requires the auditor to perform limited procedures on Marjaree Mason Center, Inc.’s response to the noncompliance finding identified in our compliance audit described in the accompanying schedule of findings and questioned costs. Marjaree Mason Center, Inc.’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
31 Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a deficiency in internal control over compliance that we consider to be a significant deficiency.
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 a 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 a 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. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2023-001, to be a significant deficiency.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on Marjaree Mason Center, Inc.’s response to the internal control over compliance finding identified in our compliance audit described in the accompanying schedule of findings and questioned costs. Marjaree Mason Center, Inc.’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
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 the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Fresno, California
January 30, 2024
Marjaree Mason Center, Inc.
32 Schedule of Findings and Questioned Costs
Year Ended September 30, 2023
FINANCIAL STATEMENTS
Type of auditor's report issued on whether the financial statements audited were prepared in accordance with GAAP:
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No
FEDERAL AWARDS
Internal control over major federal programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? X Yes None reported Any audit findings disclosed that are required to be reported in accordance with section 2 CFR 200.516(a)? X Yes No
Identification of Major Federal Program and Type of Auditor's Report Issued on Compliance for the Major Federal Program
Name of Federal Program/Cluster
Continuum of Care Program Unmodified
Dollar threshold used to distinguish between Type A and Type B programs:
Auditee qualified as low-risk auditee? X Yes No
None reported.
Section I – Summary of Auditor's Results
Section II –– Financial Statement Findings
$750,000
Unmodified
Type of Auditor's Report
Issued on Compliance for the
Major Federal Program
14.267
Federal Assistance Listing
Number
Marjaree Mason Center, Inc.
Schedule of Findings and Questioned Costs (Continued)
Year Ended September 30, 2023
33 Section III – Federal Award Findings and Questioned Costs Finding 2023-001: Department of Housing and Urban Development - Continuum of Care Program - Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2023.
Criteria – In accordance with 2 CFR 200.320(a)(2)(i), participants are required to perform an appropriate form of competition in their procurement process if purchases are within the small purchase threshold.
Condition – Management did not perform an appropriate form of competition for two purchases made within the small purchase threshold.
Questioned costs – There are known questioned costs of $36,666 representing the reimbursements claimed for the vendors during the audit period. No likely questioned costs are noted.
Context – Inspection of procurement documentation showed two out of two vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed in accordance with the small purchase threshold in the Code of Federal Regulations; 2 CFR 200.320(a)(2)(i). Price or rate quotations were not obtained timely, nor formally documented and a formal assessment was not performed. Of the $1,758,584 of total Continuum of Care reimbursements claimed during the year, $60,956 of reimbursements are subject to this procurement requirement, including the known questioned costs of $36,666.
Effect – By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs.
Cause – Management did not obtain rate quotations from an adequate number of vendors, and did not retain sufficient documentation nor perform a formal assessment to proceed with the contracted services.
Repeat finding – This is a repeat finding as there was a procurement finding in the prior year.
Recommendation – We recommend management implement a control to ensure sufficient quotes are obtained and documentation is retained during the procurement of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards.
Management's response – Management has implemented a new procurement policy effective January 2024 for all vendors where the vendors will have their own procurement documents. The chosen vendors can be the Organizaton's selected vendor from 1 to 3 years depending on type of service. All quotes and bids will be maintained on the Organization's server.
Marjaree Mason Center, Inc.
Summary Schedule of Prior Audit Findings
Year Ended September 30, 2023
34 Status - Two instances of an inappropriate form of procurement were noted during the year. Management did perform the required procurement process but failed to maintain the documentation as they did not implement the corrective action on all vendors by the end of the fiscal year. Management has implemented a new procurement policy for all vendors where the vendors will have their own procurement documents. The chosen vendors can be the Organizaton's selected vendor from 1 to 3 years depending on type of service. All quotes and bids will be maintained on the Organization's server.
Finding 2022-001: Department of Housing and Urban Development - Continuum of Care Program - Assistance Listing No. 14.267; Grant period: Year Ended December 31, 2022.
Criteria – In accordance with 2 CFR 200.320(a)(2)(i), participants are required to perform an appropriate form of competition in their procurement process if purchases are within the small purchase threshold.
Condition – Management did not perform an appropriate form of competition for a purchase made within the small purchase threshold.
CFDA
Number Program Name Federal Agency/Pass-through Entity Federal Award Number Award
Year
14.267 Continuum of Care
Program Department of Housing and Urban Development CA1854L9141900 CA1854L9T142102 2022
Other Information
Marjaree Mason Center, Inc.
36 Combining Schedule of Revenue, Support, and Expenses – Unaudited Year Ended September 30, 2023
(with Summarized Comparative Information for Year Ended September 30, 2022) California Contributions,
Housing and Office of Capital Program
County of Urban Emergency City of Campaign Fees, and Total Fresno Development Services Fresno Bullard Other 2023 2022
REVENUES, GAINS, AND OTHER SUPPORT
Grants and contracts $ 1,010,515 $ 1,758,584 $ 1,507,012 $ 620,782 $ - $ 616,127 $ 5,513,020 $ 5,413,940 Contributions - - - - 6,676,188 2,303,457 8,979,645 2,945,544 In-kind donations - - - - - 2,396,260 2,396,260 101,521 Special events - - - - - 571,542 571,542 521,886
Program fees - - - - - 219,428 219,428 145,948
Other income - - - - - 12,922 12,922 14,700
Legacies and bequests - - - - - 333,610 333,610 100,000 Net realized and unrealized loss (gain) in
fair value of perpetual trusts - - - - - 36,475 36,475 (85,438) Interest and dividend income - - - - - 87,203 87,203 53,739 Net realized and unrealized (loss) gain in
fair value of investments - - - - - 132,669 132,669 (555,060) Total revenues, gains, and other support 1,010,515 1,758,584 1,507,012 620,782 6,676,188 6,709,693 18,282,774 8,656,780
EXPENSES
Accounting and legal 4,000 13,500 3,500 - 9,291 51,590 81,881 76,229 Advertising - - 64,705 - 25,890 83,953 174,548 17,141
Bad debt expense - - - - - 15,000 15,000 2,500
Bank charges - - - - - 804 804 88
Computer services 11,397 3,795 1,807 - - 14,444 31,443 38,463 Conferences, conventions, and meetings 6,108 9,071 4,943 - 5,328 145,303 170,753 117,406 Depreciation - - - - - 178,256 178,256 183,057
Donated services and supplies - - - - 19,125 80,231 99,356 108,062 Dues and subscriptions 6,809 - 3,784 - - 29,116 39,709 27,392 Employee benefits 111,498 194,693 139,388 57,041 280 374,944 877,844 838,329 Equipment rental, repairs, and maintenance 79,303 65,484 94,178 18,706 11,169 213,226 482,066 526,996 Food 756 187 3,618 13,603 - 53,227 71,391 121,674
Insurance 42,735 7,410 9,770 - 18,686 25,095 103,696 73,587 Interest - - - - - 14 14 316
Miscellaneous - - - - - 2,702 2,702 4,136
Office expense 4,576 607 1,897 136 79 47,738 55,033 59,038 Printing 471 2,060 2,861 - 8,749 46,963 61,104 61,296
Professional fees 71,430 9,482 41,932 13,596 34,420 365,659 536,519 395,607 Program supplies 6,408 377,137 286,609 94,506 - 222,590 987,250 1,425,797 Rent 75,671 18,546 14,015 - - 133,399 241,631 177,434
Salaries 584,449 1,019,619 739,317 335,702 2,440 1,857,936 4,539,463 3,941,852 Security 1,631 1,705 6,493 44,312 22,642 74,492 151,275 106,694 Taxes and licenses 11,164 - - - 21,864 (22,350) 10,678 23,963 Utilities 45,785 35,288 88,195 43,180 18,489 108,659 339,596 256,238 Total expenses 1,064,191 1,758,584 1,507,012 620,782 198,452 4,102,991 9,252,012 8,583,295 CHANGES IN NET ASSETS $ (53,676) $ - $ - $ - $ 6,477,736 $ 2,606,702 $ 9,030,762 $ 73,485
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Exhibit E
Community Services
Poverello House
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:
Believing in the dignity of every person, at Poverello House we work to enrich the lives and spirits of all who pass our way by stewarding the resources made available to us through Providential and community support.
Part A, Section 3: Organizational Capacity and Management Please provide key personnel information for HUD-funded projects:
Staff Name Title
Years of
Experience
1) Zachary D. Darrah Chief Executive Officer 16
2) Paul Stack Chief Operations Officer 22
3) Sara Mirhadi Chief Programs Officer 13
4) Linda Bowman Chief Financial Officer 30
5)
Board of Directors
How often does your Board of Directors regularly meet?
Once a month
List current Board of Directors below:
1) Charles Farnsworth 6) Nick Amendola
2) Dr. Tushar Patel 7) Marc' Bady
3) Heidi Michael 8) Hank Bennett
4) Curtis Davies 9) Sharif Elkhaldy
5) Prashant Patel 10)
Cate Ervin, Rebecca GarthNelson, Constance Jones, Adam Mendes, Yellow-Feather
Noriega, David Olmas, Ken
Ramos, Dr. Mickey Sachdeva,
PY23-24 City of Fresno Consolidated NOFA Part A
Non-Profit Organization
Dr. Manavjeet Sidhu, Andrew
Slater, Victor Thao
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 Page & Company
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
4) Provide the name of staff responsible for your agency’s accounting system Name: Linda Bowman
Title: Chief Financial Officer
Phone/Email: 559-498-6988/ [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)
2)
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).
PY23-24 City of Fresno Consolidated NOFA Part A
Non-Profit Organization
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
2 $ 508,514.00
➢ Owner-Occupied Home Repair
Number of Applications Total Dollar Amount Requested
0 $ 0.00
➢ Public and Community Services
Number of Applications
1 Total Dollar Amount Requested
$ 240,826.27
➢ Fair Housing
Number of Applications Total Dollar Amount Requested
0 $ 0.00
=
GRAND TOTAL
Number of Applications
3 Total Dollar Amount Requested
$749,340.27
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 5 PM, March 1, 2024) Part A, Exhibit 1
Part A. Exhibit 1
Organization’s U.S. Internal Revenue Service
501(c)(3) Determination of Exemption Letter
Part A, Exhibit 2
Part A. Exhibit 2
Organization’s Articles of Incorporation
Part A, Exhibit 3
Part A. Exhibit 3
Bylaws of the Organization
1518585v1 / 18809.0001 1
BYLAWS
OF
POVERELLO HOUSE
a California Nonprofit Public Benefit Corporation
1518585v1 / 18809.0001 i
ARTICLE I ORGANIZATION.......................................................................................................1
1.01 Name ........................................................................................................................1
1.02 Purpose and Limitations ..........................................................................................1 (a) Purpose.........................................................................................................1 (b) Limitations...................................................................................................1
1.03 Dedication of Assets................................................................................................1
1.04 Nonpartisan Activities .............................................................................................1 ARTICLE II OFFICES....................................................................................................................2
2.01 Principal Office........................................................................................................2
2.02 Other Offices............................................................................................................2 ARTICLE III MEMBERSHIP.........................................................................................................2
3.01 Members ..................................................................................................................2
3.02 Affiliated Persons.....................................................................................................2 ARTICLE IV DIRECTORS ............................................................................................................2
4.01 Powers......................................................................................................................2
4.02 Number of Directors................................................................................................3
4.03 Restriction on Interested Persons as Directors.........................................................3
4.04 Election, Designation, and Term of Office of Directors..........................................4
4.05 Vacancies, Removal, and Resignation of Directors.................................................4 (a) Vacancy........................................................................................................4 (b) Removal .......................................................................................................4 (c) Resignation ..................................................................................................5
4.06 Annual Meeting of the Board ..................................................................................5
4.07 Other Regular Meetings...........................................................................................5
4.08 Special Meetings......................................................................................................5
4.09 Place of Meetings; Meetings By Telephone ............................................................6
4.10 Waiver of Notice......................................................................................................6
4.11 Quorum ....................................................................................................................6
4.12 Adjournment ............................................................................................................6
4.13 Notice of Adjourned Meeting ..................................................................................6
4.14 Action Without a Meeting .......................................................................................6
4.15 Compensation and Reimbursement of Directors.....................................................7
4.16 Voting ......................................................................................................................7
4.17 Management of Meetings ........................................................................................7
4.18 Rules of Order..........................................................................................................7
4.19 Appointment of Emeritus and Advisory Members..................................................7 ARTICLE V OFFICERS .................................................................................................................7
5.01 Officers ....................................................................................................................7 1518585v1 / 18809.0001 ii
5.02 Election, Designation, and Term of Office of Officers ...........................................7
5.03 Additional Officers ..................................................................................................8
5.04 Removal and Resignation of Officers......................................................................8 (a) Removal .......................................................................................................8 (b) Resignation ..................................................................................................8
5.05 Vacancies in Offices................................................................................................8
5.06 Chair.........................................................................................................................8
5.07 Vice Chair................................................................................................................9
5.08 Immediate Past Chair...............................................................................................9
5.09 Secretary ..................................................................................................................9
5.10 Treasurer ..................................................................................................................9
5.11 Executive Director ...................................................................................................9 ARTICLE VI COMMITTEES ......................................................................................................10
6.01 Committees of the Board .......................................................................................10
6.02 Identified Committees............................................................................................11 (a) The Executive Committee..........................................................................11 (b) The Finance and Strategic Planning Committee........................................11 (c) The Nominating Committee. .....................................................................12 (d) Fundraising and Development Committee. ...............................................12
6.03 Meetings and Actions of Committees....................................................................12
ARTICLE VII INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND OTHER AGENTS....................................................................................................12
7.01 Agents, Proceedings, and Expenses.......................................................................12
7.02 Actions Other Than By the Corporation................................................................13
7.03 Actions By the Corporation ...................................................................................13
7.04 Successful Defense By Agent................................................................................13
7.05 Required Approval.................................................................................................14
7.06 Advance of Expenses.............................................................................................14
7.07 Other Contractual Rights .......................................................................................14
7.08 Limitations.............................................................................................................14
7.09 Insurance ................................................................................................................14 ARTICLE VIII EXECUTIVE DIRECTOR ..................................................................................15
8.01 Employment...........................................................................................................15
8.02 Duties.....................................................................................................................15 ARTICLE IX RECORDS AND REPORTS..................................................................................15
9.01 Records and Reports..............................................................................................15
9.02 Maintenance and Inspection of Articles and Bylaws.............................................15
9.03 Inspection by Directors..........................................................................................16
9.04 Annual Report........................................................................................................16
9.05 Annual Statement of Certain Transactions and Indemnifications .........................16 1518585v1 / 18809.0001 iii
ARTICLE X CONFLICTS OF INTERESTS................................................................................17
10.01 Disqualifying Financial Interest.............................................................................17
10.02 Board of Directors’ Prior Approval .......................................................................17
10.03 Board of Directors’ Ratification ............................................................................17
10.04 Disqualifying Non-Financial Interest ....................................................................18
10.05 Procedure of Disqualification ................................................................................18
10.06 No Invalidation of Action ......................................................................................18 ARTICLE XI GENERAL CORPORATE MATTERS .................................................................18
11.01 Construction and Definitions.................................................................................18
11.02 Amendment by Directors.......................................................................................18
11.03 Authority to Bind Corporation...............................................................................18
11.04 Fiscal Year .............................................................................................................18 1518585v1 / 18809.0001 1
BYLAWS
OF
POVERELLO HOUSE
a California Nonprofit Public Benefit Corporation
ARTICLE I
ORGANIZATION
1.01 Name. The name of this Corporation isPoverello House.
1.02 Purpose and Limitations.
(a) Purposes. ThisCorporationis a California nonprofit public benefit corporation organized under the Nonprofit Public Benefit Corporation Law. This Corporation is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the corresponding provision of any future United States Internal Revenue Law (herein, the "Code"). The specific and primary charitable purposes of this Corporation is to provide relief, including food, clothing, shelter and medical attention, to the needy, poor, distressed or underprivileged. This Corporation is also authorized to receive contributions and to make donations to, and otherwise aid and support, legally permissible undertakings consistent with the above-stated purpose.
(b) Limitations. Notwithstanding any of the above statements of purposes and powers, this Corporation shall not, except to an insubstantial degree, engage in any activities, or exercise any powers that are not in furtherance of the specific and primary purpose of this Corporation and this Corporation shall not carry on any other activities not permitted to be carried on by (i) a corporation exempt from Federal income tax under Section 501(c)(3) of the Code, or (ii) a corporation contributions to which are deductible under Section 170(c)(2) of the Code.
1.03 Dedication of Assets. The property of this Corporation is irrevocably dedicated to charitable purposes and no part of the net income or assets of this Corporation shall ever inure to the benefit of any director, officer, or member thereof or to the benefit of any private person. Upon the dissolution or winding up of this Corporation, its assets remaining after payment, or provision for payment, of all debts and liabilities of this Corporation shall be distributed to a nonprofit fund, foundation, or corporation which is organized and operated exclusively for charitable purposes and which has established its tax exempt status under Section 501(c)(3) of the Code, and which is qualified for exemption from taxation under Section 23701d of the California Revenue and Taxation Code.
1.04 Nonpartisan Activities. The Corporation shall be nonpartisan. No substantial part of the activities of this Corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and the Corporation shall not participate or intervene in any political campaign (including the publishing or distribution of statements) on behalf of any candidate for public office. The Corporation shall not, except in an insubstantial degree, engage 1518585v1 / 18809.0001 2
in any activities or exercise any powers that are not in furtherance of the purposes and objectives described herein.
ARTICLE II
OFFICES
2.01 Principal Office. The principal office for the transaction of the activities and affairs of the Corporation (“principal executive office”) is located at 412 "F" Street, Fresno, California 93706. The Board of Directors (the “Board”) may change the principal executive office from one location to another. Any change of this location shall be noted by the Secretary of the Corporation on these Bylaws opposite this Section, or this Section may be amended to state the new location.
2.02 Other Offices. The Board may at any time establish branch or subordinate offices at any place or places, within or without the State of California, where the Corporation is qualified to conduct its activities.
ARTICLE III
MEMBERSHIP
3.01 Members. This Corporation shall have no members within the meaning of Section 5056 of the California Corporations Code. Any action which would otherwise require approval by a majority of all members or approval by the members shall require only approval of the Board. All rights which would otherwise vest in the members shall vest in the Board.
3.02 Affiliated Persons. This Corporation may refer to contributors, advisors, or other persons or entities associated with it as “members” even though those contributors, advisors, or other persons or entities are not members, and no reference shall constitute anyone a member, within the meaning of Section 5056 of the California Corporations Code. The Corporation may confer by amendment of its Articles of Incorporation or of these Bylaws some or all of the rights of a member, as set forth in the California Nonprofit Corporation Law, upon any person or persons who do not have the right to vote for the election of directors or on a disposition of substantially all of the assets of the Corporation or on a merger or on a dissolution or on changes to the Corporation’s Articles of Incorporation or Bylaws, but no such person shall be a member within the meaning of Section 5056 of the California Corporations Code.
ARTICLE IV
DIRECTORS
4.01 Powers. Subject to the provisions and limitations of the California Nonprofit Public Benefit Corporation Law and any other applicable laws, and subject to any limitations in the Articles of Incorporation or these Bylaws, the activities and affairs of the Corporation shall be managed and all corporate powers shall be exercised by, or under the direction of, the Board. The Board may delegate the management of the activities of the Corporation to any person(s), a management company, or management committees however composed, provided that the activities and affairs of the Corporation shall be managed, and all corporate powers shall be exercised, by, or under the ultimate direction of, the Board. Without prejudice to these general 1518585v1 / 18809.0001 3
powers and subject to the same limitations, the Board, in addition to the other powers enumerated in these Bylaws, shall have the power to:
(a) Appoint and remove, subject to any employment agreement and, at the pleasure of the Board, all officers, agents, and employees of the Corporation; prescribe powers and duties for them that are consistent with law, with the Articles of Incorporation, and with these Bylaws; fix their compensation (if any); and require from them security for faithful service.
(b) Change the principal executive office in the State of California from one location to another; cause the Corporation to conduct its activities within or without the State of California; and designate any place within or without the State of California for holding any meeting of directors.
(c) Adopt and use a corporate seal and to alter the form of such seal from time to time, as in their judgment they may deem best, provided such seal shall at all times comply with the provisions of law.
(d) Approve an annual operating budget and capital expenditure budget, to borrow money and incur indebtedness on behalf of the Corporation and cause to be executed and delivered for the Corporation’s purposes, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations, and other evidences of debt and securities.
(e) Conduct, manage and control the affairs and activities of the Corporation and to make such rules and regulations therefor not inconsistent with applicable federal and California law, the Articles of Incorporation or the Bylaws as they may deem best.
(f) Pursuant to authority hereinafter granted, appoint committees and to delegate to such committees powers and authority of the Board in the management of the activities and affairs of the Corporation, except the power to adopt, amend or repeal Bylaws or Articles, and except as otherwise set forth herein.
(g) Approve any action which, under the California Corporations Code, would require the approval by a majority of statutory members or approval by statutory members.
4.02 Number of Directors. The authorized number of directors shall be between ten (10) and twenty-five (25) directors.
4.03 Restriction on Interested Persons as Directors. No more than forty-nine percent (49%) of the persons serving on the Board may be interested persons. For purposes of this Section 4.03, an “interested person” is any person who (a) has been compensated by the Corporation for services rendered to it within the previous twelve (12) months, whether as a fulltime or part-time employee, independent contractor, or otherwise, excluding any reasonable compensation paid to a director for such person's services as a director, or (b) a brother, sister, ancestor, descendant, spouse, brother-in-law, sister-in-law, son-in-law, daughter-in-law, mother- 1518585v1 / 18809.0001 4
in-law, or father-in-law of such a person. In the event that a board member is an "interested person", that board member shall disclose his or her interest and completely recuse himself or herself from all matters pertaining to the item in which they have an interest. However, any violation of the provisions of this Section 4.03 shall not affect the validity or enforceability of any transaction entered into by the Corporation.
4.04 Election, Designation, and Term of Office of Directors. Directors of the Corporation shall be elected at the annual meeting of the Boardin accordance with these Bylaws.
Directors shall be selected from a slate of nominees proposed by the Board, the Corporation’s nominating committee, if any, and any nomination(s) made by any director(s) at the annual meeting.At the annual meeting of the Board to be conducted in 2015, five (5) to nine (9) directors shall be elected for an initial one (1) year term, five (5) to nine (9) directors shall be elected for an initial two (2) year term, and the remaining number of directors to be elected shall be elected for an initial three (3) year term.Thereafter, directors shall serve staggered three (3) year terms. Except as stated in this Section 4.04, no person shall serve as a director for more than three (3) consecutive three (3) year terms. After serving three (3) consecutive three (3) year terms, a director must wait one (1) year before that director is eligible to serve again. If any directors are not elected at the annual meeting of the Board, they may be elected at any special meeting of the Board held for that purpose.Directors, including a director elected to fill a vacancy, shall hold office until expiration of the term for which elected and until a successor director has been elected. If any such successor directors are not elected at an annual meeting, they may be elected at any special meeting of the Board held for that purpose or by the unanimous written consent of the directors. In no event, shall any incumbent director be permitted to cast a vote for his or her reelection.Additionally, the following individuals shall serve as ex officio members of the Board: (i) the head of the Holy Cross Center for Women; (ii) the guild president of the Amici del Poverello Guild; and (iii) a client of the Poverello House, (whose term shall be for a period of three (3) years, with a limit of one (1) term).
4.05 Vacancies, Removal, and Resignation of Directors.
(a) Vacancy. A vacancy on the Board shall be deemed to exist on the occurrence of any of the following: (i) the death or resignation of any director; (ii) the removal of a director in accordance with these Bylaws; (iii) the declaration by resolution of the Board of a vacancy in the office of a director who has been declared of unsound mind by an order of court, convicted of a felony, or found by final order or judgment of any court to have breached a duty under Article 3 of Chapter 2 of the California Nonprofit Public Benefit Corporation Law; or (iv) if the actual number of directors is less than the authorized number for any other reason, such as an increase of the authorized number of directors.Vacancies shall be filled by the Board in accordance with Section 4.04.No reduction of the authorized number of directors shall have the effect of removing any director from office before that director’s term of office has expired. (b) Removal. A director may be removedwith or without cause by a two-thirds (2/3) majority vote of all other directors at the time in office at any regular meeting or special meeting of the Board. A director may also be removed if he or she fails to meet any of the following board requirements (excluding ex-officio directors):
(i)attendance at eight (8) or more regular meetings of the Board (excluding excused 1518585v1 / 18809.0001 5
absences); (ii)an annual charitable donationto the Corporation in the amount of $500.00 or more;and (iii) completion of five (5) or more hours annually of volunteer service for the benefit of the Corporation. A 30 day written notice prior to the one (1) year deadline will be sent to any director failing to meet these requirements thus allowing time to cure such failure.
(c) Resignation. Except as provided below, any director may resign by giving written notice to the Chair, Secretary, or the Board. The resignation shall be effective when the notice is given unless it specifies a later time for the resignation to become effective. If a director’s resignation is effective at a future time, the Board may, subject to Section 4.04, appoint a successor to take office as of the date when the resignation becomes effective. Except on notice to the Attorney General of State of California, no director may resign if the Corporation would be left without a duly elected director or directors.
4.06 Annual Meeting of the Board. The Board shall hold an annual meeting during January of each year, or on such other date as determined by the Board. Each such annual meeting shall be held for purposes of organization, the election of directors and officers, and the transaction of other business. Notice of the annual meeting shall state the matters that the Board, at the time notice is given, intends to present for action.
4.07 Other Regular Meetings. Other regular meetings of the Board may be held at such time and place as the Board may fix from time to time. Notices of regular meetings of the Board shall state the time of the meeting, and the place if the place is other than the principal executive office of the Corporation. The notice and schedule of meetings need not specify the purpose of the meeting.
4.08 Special Meetings. Special meetings of the Board for any purpose may be called at any time by theChair, any Vice Chair, or a majority ofdirectors.Additionally, notice of the time and place of special meetings shall be given to each director by one of the following methods: (a) by personal delivery of written notice; (b) by first-class mail postage prepaid, (c) by telephone, either directly to the director or to a person at such director’s office who would reasonably be expected to communicate that notice promptly to such director; (d) by e-mail, either directly to the director or to a person at such director’s office who would reasonably be expected to communicate that notice promptly to such director; or (e) by facsimile, either directly to the director or to a person at such director’s office who would reasonably be expected to communicate that notice promptly to such director. All such notices shall be given or sent to the director’s address or telephone number as shown on the records of the Corporation.Notice sent by first-class mail shall be deposited in the United States mail at least four (4) days before the time set for the meeting. Notices given by personal delivery, telephone, e-mail or fax shall be delivered, telephoned, e-mailed or faxed at least forty-eight (48) hours before the time set for the meeting.The notice shall state the time of the meeting, the purpose of the meeting, that no other business may be transacted, and the place if the place is other than the principal executive office of the Corporation. No business, other than the business that was set forth in the notice of the meeting, may be transacted at a special meeting.
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4.09 Place of Meetings; Meetings By Telephone. Meetings of the Board shall be held at any place, within or without the State of California, that has been designated by resolution of the Board or in the notice of the meeting or, if not so designated, at the principal executive office of the Corporation. Any meeting may be held by conference telephone, as long as all directors participating in the meeting can hear one another. All such directors shall be deemed to be present in person at such a meeting.
4.10 Waiver of Notice. Notice of a meeting need not be given to any director who, either before or after the meeting, signs a waiver of notice, a written consent to the holding of the meeting, or an approval of the minutes of the meeting. The waiver of notice or consent need not specify the purpose of the meeting. All such waivers, consents, and approvals shall be filed with the corporate records or made a part of the minutes of the meetings. Notice of a meeting need not be given to any director who attends the meeting and does not protest, before or at the commencement of the meeting, the lack of notice to that director.
4.11 Quorum. A majority of the directorsshall constitute a quorum for the transaction of any business, except to adjourn, providedthat the number of directors elected at such time is within the numbers specified in Section 4.02. Every action taken or decision made by a majority of the directors present at a duly held meeting at which a quorum is present shall be the act of the Board, subject to the provisions of the California Nonprofit Public Benefit Corporation Law, including, without limitation, those provisions relating to (a) approval of contracts or transactions in which a director has a direct or indirect material financial interest; (b) approval of certain transactions between corporations having common directorships; (c) creation of, and appointments to, committees of the Board, and (d) indemnification of directors. A meeting at which a quorum is initially present may continue to transact business, despite the withdrawal of directors, if any action taken or decision made is approved by at least a majority of the required quorum for that meeting.
4.12 Adjournment. A majority of the directors present, whether or not a quorum is present, may adjourn any meeting to another time and place.
4.13 Notice of Adjourned Meeting. Notice of the time and place of holding an adjourned meeting need not be given unless the original meeting is adjourned for more than twenty-four (24) hours. If the original meeting is adjourned for more than twenty-four (24) hours, notice of any adjournment to another time and place shall be given, before the time of the adjourned meeting and in the same manner as provided in Sections 4.09 and 4.10, to the directors who were not present at the time of the adjournment.
4.14 Action Without a Meeting. Any action required or permitted to be taken by the Board may be taken without a meeting if all of the directors consent in writing to the action; provided, however, that the consent of any director who has a material financial interest in a transaction to which the Corporation is a party and who is an “interested director”, as defined in Section 5233 of the California Corporations Code, shall not be required for approval of that transaction. Such action by written consent shall have the same force and effect as any other validly approved action of the Board. All such consents shall be filed with the minutes of the proceedings of the Board.
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4.15 Compensation and Reimbursement of Directors. Directors and members serving on committees approved by the Board may not be compensated by the Corporation for their services. However, directors and members of committees may receive advancement or reimbursement of expenses, as may be fixed or determined by resolution of the Board to be just and reasonable as to the Corporation at the time that such resolution is adopted.
4.16 Voting. Each director is entitled to one (1) vote on each matter submitted to a vote of the directors. Voting may be by voice or by ballot, except that any director shall have a right to have a roll call vote on request, in which case the clerk shall call the roll and record each vote and report the final tally to the Chair.
4.17 Management of Meetings. Meetings of the Board shall be presided over by the Chair, or in the Chair’s absence, by the First ViceChair, or in the First Vice Chair’s absence, by the Second Vice Chair, or in the absence of all three, by an acting Chair chosen by a majority of the directors. The Secretary of the Corporation shall act as secretary of all meetings of the Board, provided that in his or her absence, the presiding officer shall appoint another person to act as secretary of the meeting.
4.18 Rules of Order. Meetings shall be governed by Robert’s Rules of Order, to the extent that such rules are not inconsistent or in conflict with these Bylaws, with the Articles of Incorporation of the Corporation, or with applicable law.
4.19 Appointment of Emeritus Members. The Board may select additional persons to serve as“Emeritus” members. Thesepositionsshall be honorary positionsand persons elected to these positionsmay be asked to attend meetings of the Board. A person filling an Emeritusposition will be requested to do so because of his or her experience with and contributions to the Corporation. “Emeritus” members shall enjoy no voting privileges on the Board, unless such a member concurrently serves as a director on the Board. No person filling an Emeritus position shall be a member within the meaning of Section 5056 of the California Corporations Code.
ARTICLE V
OFFICERS
5.01 Officers. The officers of the Corporation shall be a Chair, a First Vice Chair, a Second Vice Chair, a Secretary,and a Treasurer, Immediate Past Chair and Executive Director.The Executive Director and Treasurer and shall be staff members. The Corporation may also have, at the discretion of the Board, such other officers as may be appointed in accordance with the Section 5.03. Any number of offices may be held by the same person, except that neither the Secretary nor the Treasurer may serve concurrently as the Chair.
5.02 Election, Designation, and Term of Office of Officers. The officers of the Corporation, except those appointed underSection 5.03, shall be chosen annually by the Boardat the annual meeting of the Board in accordance with these Bylaws. Officers shall servefor a two (2) year termor until a successor is chosen, or until such officer resigns or is removed from office.
When the term of an officer expires, he or she may bereelected to serve as an officer in any 1518585v1 / 18809.0001 8
officenot previously held by such officer. Officers shall serve at the pleasure of the Board, subject to the rights, if any, of an officer under any contract of employment.
5.03 Additional Officers. The Board may appoint, and may authorize the Chair or another officer to appoint, any other officers that the business of the Corporation may require.
Each officer so appointed shall have the title, hold office for the period, have the authority, and perform the duties specified in these Bylaws or determined from time to time by the Board.
5.04 Removal and Resignation of Officers.
(a) Removal. Subject to the rights, if any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by the Board, at any regular or special meeting of the Board or by unanimous written consent of the Board, or, except in case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board.
(b) Resignation. Any officer may resign at any time by giving written notice to the Chair, Secretary, or the Board. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Corporation under any contract to which the officer is a party.
5.05 Vacancies in Offices. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to that office.
5.06 Chair. Subject to the control of the Board, the Chair shall direct, and control the activities and affairs of the Board and its officers. The Chair shall have such other powers and duties as the Board or these Bylaws may prescribe. In the absence of an executive director, retained either as an employee of the Corporation or as an administrative services contractor of the Corporation, the Chair shall serve as the chief executive officer and direct and control the Corporation’s activities and affairs. The Chair shall be given the necessary authority and held responsible for the administration of the Corporation in all its activities and subject only to such policies as may be adopted and such orders as may be issued by the Board or by any of its committees to which it has delegated power for such action. The Chair shall act as the “duly authorized representative” of the Board in all matters in which the Board has not formally designated some other person for that specific purpose. Without prejudice to such general powers as above described, the authority and duties of the Chair are hereby expressly declared to be:
(a) To carry out all policies established by the Board, and to advise on the formation of those policies;
(b) To attend meetings of the Board and its committees; (c) To prepare plans for the achievement of the Corporation’s longrange objectives and goals as adopted by the Board; 1518585v1 / 18809.0001 9
(d) To promote effective and economical working relationships with other organizations;
(e) To represent the Corporation to the public; and
(f) To perform any other duty that may be necessary in the best interest of the Corporation.
5.07 Vice Chairs.If the Chair is absent or disabled, the Vice Chair, if any, in order of their rank as fixed by the Board or, if not ranked, a Vice Chair designated by the Board, shall perform all the duties of the Chair, and when so acting shall have all the powers of, and be subject to all the restrictions upon, the Chair. The Vice Chairshall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board, these Bylaws, or the Chair.
5.08 Immediate Past Chair. The Immediate Past Chair shall perform, under the direction of the Chair, special assignments in the management of the Corporation.
5.09 Secretary. The Secretary shall:
(a) Certify and keep at the principal corporate office or such other place that the Board may order, the original, or a copy, of these Bylaws as amended or otherwise altered to date;
(b) Keep at the principal corporate office or such other place the Board may order, a book of minutes of all meetings of the directors and of all meetings of committees, recording therein the time and place of holding said meeting, whether regular or special, and, if special, how authorized, the notice given, the names of those present, the number of directors present, and the proceedings thereof; (c) Be the custodian of records of the Corporation;
(d) Exhibit at all reasonable times to any director of the Corporation, the Bylaws and any requested minutes;
(e) Exhibit at all reasonable times to any member of the public any documents or records that by law the public has a right to see; and (f) Perform all duties incident to the office of Secretary and such other duties as may be required by law, by the Articles of Incorporation of this Corporation, or by these Bylaws, or that may be assigned from time to time by the Chair or the Board.
5.10 Treasurer. The Treasurer, who shall be the Chief Financial Officer or Director of Finance (or such equivalent position), shall keep and maintain, or cause to be kept and maintained, adequate and correct books and accounts of the Corporation’s properties and transactions. The Treasurer shall send or cause to be given to the directors such financial statements and reports as are required to be given by law, by these Bylaws, or by the Board. The books of account shall be open to inspection by any director at all reasonable times. 1518585v1 / 18809.0001 10
The Treasurer shall also: (i) deposit, or cause to be deposited, all money and other valuables in the name of, and to the credit of, the Corporation with such depositories as the Board may designate; (ii) disburse the Corporation’s funds as the Board may order; (iii) render to the Chair, and the Board, when requested, an account of all transactions as Treasurer and of the financial condition of the Corporation; and (iv) have such other powers and perform such other duties as the Board or these Bylaws may prescribe.
The Board may elect to secure in the name of the Corporation and the Treasurer a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the Corporation of all of its books, papers, vouchers, money, and other property of every kind in the possession or under the control of, the Treasurer upon such officer’s death, resignation, retirement, or removal from office.
In the event that the Corporation hires a bookkeeper, accountant, accounting firm, or other financial professional, the Treasurermay delegate to such financial professional the daily operational tasks but at all times shall be responsible for supervising their activities.
5.11 Executive Director. The Executive Director shall be the Chief Executive Officer of the Corporation and shall, subject to the control of the Board of Directors, have general supervision, direction and control of the business of the Corporation and of the administrative officers of the Corporation. The Executive Director, or the person designated by the Executive Director in his or her absence, shall be an ex-officio, non-voting member of the Board of Directors and all of the standing committees, and shall have the general powers and duties of management usually vested in the office of and Executive Director of a corporation and shall have such other powers and duties as may be prescribed by the Board of Directors or these Bylaws, and specifically Section 8. The Executive Director shall be given the necessary authority and be held responsible for the administration of the Corporation in all its activities and departments, subject only to such polices as may be adopted and such orders as may be issued by the Board of Directors or by any of its committees to which it has delegated power for such action. The Executive Director shall act as the duly authorized representative of the Board of Directors in all matters in which the Board of Directors has not formally designated some other person for that specific purpose.
ARTICLE VI
COMMITTEES
6.01 Committees of the Board. The Board, by resolution adopted by a majority of the directors then in office, provided a quorum is present, may create one or more committees, each consisting of two (2) or more directors, and other persons that the directors may appoint to serve at the pleasure of the Board. Appointments to committees of the Board shall be by majority vote of the directors then in office. The Board may appoint one or more directors as alternate members of any such committee, who may replace any absent member at any meeting. Any such committee, to the extent provided in the Board resolution, shall only have the authority delegated by the Board, except that no committee, regardless of Board resolution, may:
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(a) Fill vacancies on the Board or on any committee that has the authority of the Board;
(b) Amend or repeal bylaws or adopt new bylaws;
(c) Amend or repeal any resolution of the Board that by its express terms is not so amendable or repealable;
(d) Create any other committees of the Board or appoint the members of committees of the Board;
(e) Approve any contract or transaction to which the Corporation is a party; or
(f) Take any final action in violation of the California Nonprofit Public Benefit Corporation Law.
6.02 Identified Committees. The following committees shall be formed pursuant to these Bylaws:
(a) The Executive Committee.
(i) The Executive Committee shall consist of the Board officers of the Corporation. The Chair shall serve as chair of the Executive Committee. (ii) The Executive Committee, unless limited by a resolution of the Board, shall have and may exercise all the authority of the Board in the management of the business and affairs of the Corporation between meetings of the Board; provided, however, that the Executive Committee shall not have the authority of the Board in reference to those matters enumerated in Section 6.01 (a) through (h).
(b) The Finance and Strategic Planning Committee.
(i) The Finance and Strategic Planning Committee shall consist of the First ViceChair and other Board members appointed in accordance with Section 6.01. The First ViceChair shall serve as chair of the Finance and Strategic Planning Committee.
(ii) The Finance and Strategic Planning Committee shall meet periodically to prepare advice and recommendations for the Board on all financial, tax and budgetary items involving the Corporation, including (i) monitoring the Corporation’s financial performance through the review of monthly and annual statements; (ii) evaluating all budgets for the Corporation, (iii) reporting to the Board concerning the current financial status of the Corporation; (iv) making recommendations concerning the Corporation’s lenders, bankers, accountants and tax professionals; (v) overseeing all financial audits; (vii) reviewing the 1518585v1 / 18809.0001 12
effectiveness of all programs of the Corporation; and (viii) setting goals for the growth of the Corporation.
(c) The Nominating Committee.
(i) The Nominating Committee shall consist of the Immediate Past Chair and other Board members appointed in accordance with Section 6.01.
The Immediate PastChair shall serve as chair of the Nominating Committee. (ii) The Nominating Committee shall present a slate of proposed directors and officers to the Board prior to the annual meeting of the Board. The proposed slate will be considered and voted on by the Board at the annual meeting of the Board.
(d) Fundraising and Development Committee.
(i) The Fundraising and Development Committee shall consist of the Second Vice Chair and other Board members appointed in accordance with Section 6.01. The Second Vice Chair shall serve as the chair of the Fundraising and Development Committee.
(ii) The Fundraising and Development Committee shall be responsible for fundraising for the Corporation.
6.03 Meetings and Actions of Committees. Meetings and actions of committees of the Board shall be governed by, held, and taken in accordance with, the provisions of these Bylaws concerning meetings and other Board actions, except that the time for regular meetings of such committees and the calling of special meetings of such committees may be determined either by Board resolution or, if there is none, by resolution of the committee of the Board. Minutes of each meeting of any committee of the Board shall be kept and shall be filed with the corporate records. The Board may adopt rules for the government of any committee, provided they are consistent with these Bylaws or, in the absence of rules adopted by the Board, the committee may adopt such rules.
ARTICLE VII
INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES
AND OTHER AGENTS
7.01 Agents, Proceedings, and Expenses. For the purposes of this Article, “agent” means any person who is or was a director, officer, employee, or other agent of this Corporation, or is or was serving at the request of this Corporation as a director, officer, employee or agent of another foreign or domestic corporation, partnership, joint venture, trust or other enterprise, or was a director, officer, employee, or agent of a foreign or domestic corporation which was a predecessor corporation of this Corporation or of another enterprise at the request of such predecessor corporation; “proceeding” means any threatened, pending or completed action or proceeding, whether civil, criminal, administrative, or investigative; and “expense” includes, without limitation, attorneys’ fees and any expenses of establishing a right to indemnification under Sections 7.04 or 7.05(b).
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7.02 Actions Other Than By the Corporation. This Corporation shall have the power to indemnify any person who was or is a party, or is threatened to be made a party, to any proceeding (other than an action by, or in the right of, this Corporation to procure a judgment in its favor, an action brought under Section 5233 of the California Corporations Code, or an action brought by the Attorney General or a person granted relator status by the Attorney General for any breach of duty relating to assets held in charitable trust) by reason of the fact that such person is or was an agent of this Corporation, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding if that person acted in good faith and in a manner that person reasonably believed to be in the best interests of this Corporation and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of that person was unlawful. The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in the best interests of this Corporation or that the person had reasonable cause to believe that the person’s conduct was unlawful.
7.03 Actions By the Corporation. This Corporation shall have the power to indemnify any person who was or is a party, or is threatened to be made a party, to any threatened, pending or completed action by, or in the right of, this Corporation, or brought under Section 5233 of the California Corporations Code, or brought by the Attorney General or a person granted relator status by the Attorney General for breach of duty relating to assets held in charitable trust, to procure a judgment in its favor by reason of the fact that person is or was an agent of this Corporation, against expenses actually and reasonably incurred by that person in connection with the defense or settlement of that action if that person acted in good faith, in a manner that person believed to be in the best interests of this Corporation, and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.
No indemnification shall be made under this Section 7.03 for any of the following reasons:
(a) In respect of any claim, issue or matter as to which that person shall have been adjudged to be liable to this Corporation in the performance of that person’s duty to this Corporation, unless, and only to the extent that, the court in which such proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case, that person is fairly and reasonably entitled to indemnity for the expenses and then only to the extent that the court shall determine; (b) Of amounts paid in settling or otherwise disposing of a threatened or pending action, with or without court approval; or
(c) Of expenses incurred in defending a threatened or pending action which is settled or otherwise disposed of without court approval unless it is settled with the approval of the Attorney General.
7.04 Successful Defense By Agent. To the extent that an agent of this Corporation has been successful on the merits in defense of any proceeding referred to in Sections
7.02 or 7.03, or in defense of any claim, issue, or matter therein, the agent shall be indemnified against expenses actually and reasonably incurred by the agent in connection therewith. 1518585v1 / 18809.0001 14
7.05 Required Approval. Except as provided in Section 7.04, any indemnification under this Article VII shall be made by this Corporation only if authorized in the specific case upon a determination that indemnification of the agent is proper in the circumstances because the agent has met the applicable standard of conduct set forth in Section 7.02 or 7.03, by any of the following:
(a) A majority vote of a quorum consisting of directors who are not parties to the proceeding; or
(b) The court in which the proceeding is or was pending, upon application made by this Corporation or the agent or the attorney or other person rendering services in connection with the defense, whether or not such application by the agent, attorney, or other person is opposed by this Corporation.
7.06 Advance of Expenses. Expenses incurred in defending any proceeding may be advanced by this Corporation before the final disposition of the proceeding upon receipt of an undertaking by, or on behalf of, the agent to repay the amount of the advance unless it shall be determined ultimately that the agent is entitled to be indemnified as authorized in this Article VII.
7.07 Other Contractual Rights. No provision made by a corporation to indemnify its directors or officers for the defense of any proceeding, whether contained in the Corporation’s Articles of Incorporation or Bylaws, a resolution of the Board, an agreement or otherwise, shall be valid unless consistent with this Article VII. Nothing contained in this Article VII shall affect any right to indemnification to which persons other than directors and officers of this Corporation may be entitled by contract or otherwise.
7.08 Limitations. No indemnification or advance shall be made under this Article VII, except as provided in Sections 7.04 or 7.05(b), in any circumstances where it appears:
(a) That it would be inconsistent with a provision of the Articles of Incorporation, Bylaws, or an agreement in effect at the time of the accrual of the alleged cause of action asserted in the proceeding in which the expenses were incurred or other amounts were paid, which prohibits or otherwise limits indemnification; or (b) That it would be inconsistent with any condition expressly imposed by a court in approving a settlement.
7.09 Insurance. The Corporation shall have the right to purchase and maintain insurance to the fullest extent permitted by law on behalf of its agents,against any liability asserted against or incurred by any agent in such capacity or arising out of the agent’s status as such,regardless of whetherthe Corporation would have the power to indemnify the agent against the liability under the provisions of this Article VII; provided, however, that the Corporation shall have no power to purchase and maintain such insurance to indemnify any agent of the Corporation for a violation of Section 5233 of the California Corporations Code. 1518585v1 / 18809.0001 15
ARTICLE VIII
EXECUTIVE DIRECTOR
8.01 Employment. The Board may employ an Executive Director who shall be the Chief Executive Officer of the Corporation. The Executive Director shall attend all meetings of the board and all committee meetings of the board.
8.02 Duties. The Executive Director shall be responsible to the Board. The Executive Director shall be given the authority to carry out the policies established by the Board.
The Executive Director shall have, but not be limited to, the following duties:
(a) Serve as the administrator of all aspects of the day-to-day operations of the Corporation, including operating policies and procedures; (b) Make recommendations to the Board for its consideration regarding broad policies of the Corporation;
(c) Develop the overall program and services to be provided by the Corporation;
(d) Be present either personally or through an appointed representative at all Board meetings and be an ex-officio member of committees that shall not have the power to exercise the authority of the Board;
(e) Make recommendations to the Board for additional employment positions; and
(f) Designate, appoint, supervise and remove employees in accordance with established policies and procedures of the Corporation.
ARTICLE IX
RECORDS AND REPORTS
9.01 Records and Reports. The Corporation shall keep:
(a) Adequate and correct books and records of account;
(b) A book of minutes of all meetings of directors and all meetings of committees, recording therein the time and place of holding said meetings, whether regular or special, and if special, how authorized, the notice given, the names of those directors present, the number of directors present, and the proceedings thereof; and (c) A copy of the Articles of Incorporation and Bylaws, as amended, to date.
9.02 Maintenance and Inspection of Articles and Bylaws. The Corporation shall keep at its principal executive office the original or a copy of the Articles of Incorporation and 1518585v1 / 18809.0001 16
Bylaws, as amended to date, which shall be open to inspection by the members of the Board at all reasonable times during office hours.
9.03 Inspection by Directors. Every director shall have the absolute right at any reasonable time to inspect the Corporation’s books, records, documents of every kind, physical properties, and the records of each of its subsidiaries. The inspection may be made in person or by the director’s agent or attorney. The right of inspection includes the right to copy and make extracts of documents.
9.04 Annual Report. The Board shall cause an annual report to be sent to the directors within one hundred twenty (120) days after the end of the Corporation’s fiscal year. That report shall contain the following information, in appropriate detail, for the fiscal year:
(a) The assets and liabilities, including the trust funds, of the Corporation as of the end of the fiscal year.
(b) The principal changes in assets and liabilities, including trust funds. (c) The revenue or receipts of the Corporation, both unrestricted and restricted to particular purposes.
(d) The expenses or disbursements of the Corporation for both general and restricted purposes.
(e) Any information required by Section 9.05.
The annual report shall be accompanied by any report on it of independent accountants or, if there is no such report, by the certificate of an authorized officer of the Corporation that such statements were prepared without audit from the Corporation’s books and records. The requirement of an annual report shall not apply if the Corporation receives less than Twenty-Five Thousand and No/100 Dollars ($25,000.00) in gross receipts during the fiscal year, provided, however, that the information specified above for inclusion in an annual report must be furnished annually to all directors who request it in writing.
9.05 Annual Statement of Certain Transactions and Indemnifications. As part of the annual report to the Board, or as a separate document if no annual report is issued, the Corporation shall annually furnish to each director a statement of any transaction or indemnification of the following kind within one hundred twenty (120) days after the end of the Corporation’s fiscal year:
(a) Any transaction (i) which the Corporation, its parent, or its subsidiary was a party; (ii) in which an “interested person” had a direct or indirect material financial interest; and (iii) which involved more than Twenty-Five Thousand and No/100 Dollars ($25,000.00), or was one of a number of transactions with the same interested person involving, in the aggregate, more than Twenty-Five Thousand and No/100 Dollars ($25,000.00). For this purpose, an “interested person” is either of the following: (i) anydirector or officer of the Corporation, its parent, or subsidiary (but mere common directorship shall not be considered such an interest); or (ii) any holder of more than ten 1518585v1 / 18809.0001 17
percent (10%) of the voting power of the Corporation, its parent, or its subsidiary. The statement shall include a brief description of the transaction, the names of interested persons involved, their relationship to the Corporation, the nature of their interest in the transaction and, if practicable, the amount of that interest, provided that if the transaction was with a partnership in which the interested person is a partner, only the interest of the partnership need be stated.
(b) Any indemnifications or advances aggregating more than Ten Thousand and No/100 Dollars ($10,000.00) paid during the fiscal year to any officer or director of the Corporation under Sections 7.01 through 7.03, unless that indemnification has already been approved by the directors under Section 5238(e)(2) of the California Corporations Code.
ARTICLE X
CONFLICTS OF INTERESTS
10.01 Disqualifying Financial Interest. Any member of the Board must obtain the Board’s approval pursuant to Sections 10.02 and 10.03 below and disqualify himself or herself from making, participating in the making of, or attempting to influence any decisions of the Board or a committee of the Board if it is reasonably foreseeable that the decision is one in which the director has a material financial interest.
10.02 Board of Directors’Prior Approval. The Board may approve a proposed transaction in which a director or directors may have a material financial interest if after reasonable investigation and prior to consummating the transaction or any part thereof, with knowledge of the material facts concerning the transaction and the director’s or directors’interest in transaction, the Board determines in good faith by vote of a majority of directors then in office without counting the vote of the interested director or directors, that:
(a) The proposed transaction is for the Corporation’s own benefit; (b) The proposed transaction is fair and reasonable as to the Corporation; and
(c) The Corporation cannot obtain a more advantageous arrangement with reasonable efforts under the circumstances.
10.03 Board of Directors’Ratification. The Board may ratify a transaction entered into between the Corporation and a director or directors in which the director or directors had a material financial interest if at the next meeting of the Board, the Board determines in good faith by vote of a majority of directors then in office without counting the vote of the interested director or directors, that:
(a) A committee or person authorized by the Board approved the transaction;
(b) The Corporation entered into the transaction for its own benefit; 1518585v1 / 18809.0001 18
(c) The transaction was fair and reasonable as to the Corporation at the time the Corporation entered into the transaction; and
(d) It was not reasonably practicable to obtain approval of the Board prior to entering into the transaction.
10.04 Disqualifying Non-Financial Interest. Any member of the Board must likewise disqualify himself or herself when there exists a personal non-financial interest which will prevent the member for applying disinterested skill and undivided loyalty to the Corporation in making or participating in the making of decisions.
10.05 Procedure of Disqualification. A director required to disqualify himself or herself pursuant to Sections 10.01 or 10.04, above, shall (a) immediately disclose the interest, (b) recuse himself or herself from any participation in the matter, (c) refrain from attempting to influence any other director, and (d) leave the room during any proceedings on the matter in question. The director may be counted in determining whether a quorum is present.
10.06 No Invalidation of Action. No action or decision of the Board or committee of the Board shall be invalid because of the participation therein by a director or directors in violation of this policy.
ARTICLE XI
GENERAL CORPORATE MATTERS
11.01 Construction and Definitions. Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the California Nonprofit Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of the preceding sentence, the masculine gender includes the feminine and neuter, the singular includes the plural, the plural includes the singular, and the term “person” includes both a legal entity and a natural person.
11.02 Amendment by Directors. These Bylaws or Articles of Incorporation of this Corporation may be amended or repealed, or new Bylaws or Articles adopted, by the affirmative vote of a majority of the authorized number of directors. No amendment may extend the term of a director beyond that for which such director was elected.
11.03 Authority to Bind Corporation. The Board, except as in these Bylaws otherwise provided, may authorize any officer or other agent, to enter into any contract or execute any instrument in the name of and on behalf of the Corporation, and such authority may be general or confined to specific instances; and unless so authorized by the Board, no officer, agent, or employee shall have any power or authority to bind the Corporation by any contract or engagement, or to pledge its credit, or to render it liable for any purpose in any amount.
11.04 Fiscal Year. The Corporation’s fiscal year shall begin on the first day of October and end on the last day of September in each year. 1518585v1 / 18809.0001 19
CERTIFICATE OF ADOPTION
I certify that I am the duly appointed and authorized Secretary of POVERELLO HOUSE,a California nonprofit public benefit corporation, that the above Bylaws, consisting of eighteen(19)pages, are the Bylaws of this Corporation as approved and ratified by Board of Directors of this Corporation on _______________, 2015and that said Bylaws have not been amended or modified since the date thereof.
Executed on ____________________, 20____, at Fresno, California. ____________________________
Name:
Title: Secretary
Part A. Exhibit 4
Statement and Designation by Foreign Corporation
N/A
Part A, Exhibit 5
Part A. Exhibit 5
List of Directors and Officers
CHARLES FARNSWORTH Board Chair C: 559.281.2577
2819 E Magill Ave Finance Committee
Dec. 2018 ‐ Dec. 2024
[email protected]
Fresno, CA 93710 Nom & Bylaws Committee
Max: Dec. 2027
C.P.A.
DR. TUSHAR PATEL 1st VP C: 559.349.9092
9715 N Willey Court Finance Committee
Mar. 2022 ‐ Mar. 2025
[email protected]
Fresno, CA 93720 Fundraising Committee
Max: Mar. 2031
MEDICAL Comm Partner Devel. Committee
HEIDI MICHAEL 2nd VP Mar. 2023 ‐ Mar. 2026 C: 209.769.6778 7572 N Charles Ave Unit A Fundraising Committee Max: June 2032 [email protected] Fresno, CA 93711
AGRICULTURE
LINDA BOWMAN Treasurer C: 559.274.8570
1154 E Menlo Ave Finance Committee [email protected] Fresno, CA 93710
Chief Financial Officer
Poverello House
NONPROFIT FINANCE
CURTIS DAVIES Secretary C: 559.978.2331
5755 E Kings Cyn Rd #110 Finance Committee
Jan. 2018 ‐ Jan. 2023
[email protected]
Fresno, CA 93727 Nom & Bylaws Committee
Max: Jan. 2026
GENERAL CONTRACTOR Captial Projects
PRASHANT PATEL Past Chair C: 559.493.0597
4770 E Kings Cyn Rd Finance Committee
Aug. 2018 ‐ Dec. 2024
[email protected]
Fresno, CA 93702 Fundraising Committee
Max: Aug. 2027
BANKING Capital Projects
PAULA CAPOZZI Fundraising Committee C: 559.307.4749
3753 W Birch Ave
Dec. 2015 ‐ Dec. 2024
[email protected]
Fresno, CA 93711
Max: Dec. 2024
PUBLIC RELATIONS
CONSTANCE JONES Nom & Bylaws Committee Jan. 2017 ‐ Jan. 2023 C: 559.477.7814 1329 E Austin Way Max: Jan. 2026 [email protected]
Fresno, CA 93704
PSYCHOLOGY & EDUCATION
ADAM MENDES Jan. 2018 ‐ Jan. 2023 C: 559.960.6518
2182 W San Ramon Max: Dec. 2026 [email protected]
Fresno, CA 93711
AGRICULTURE
ANDREW SLATER July 2019 ‐ July 2025 C: 559.418.0333
205 E River Park Circle, Suite 110 Max: July 2028 [email protected] Fresno, CA 93720
LEGAL
KEN RAMOS Fundraising Committee Dec. 2021 ‐ Dec. 2024 C: 559.681.7790 7450 N Gilroy Ave Max: Dec. 2030 [email protected]
Fresno, CA 93722
BANKING
REBECCA GARTH‐NELSON Fundraising Committee Dec. 2021 ‐ Dec. 2024 C: 559.355.9663 5403 E Bellaire Way Max: Dec. 2030 rgln‐[email protected]
Frenso, CA 93727
COUNSELING
POVERELLO HOUSE BOARD MEMBERS 2024‐25
EXECUTIVE BOARD MEMBERS
Finance Committee Dec. 2021 ‐ Dec. 2024 C: 901.569.0703 Max: Dec. 2030 [email protected]
Finance Committee Mar. 2022 ‐ Mar. 2025 C: 559.355.7294 Fundraising Committee Max: Mar. 2031 [email protected] Comm Partner Devel. Committee
Fundraising Committee Dec. 2022 ‐ Dec. 2025 C: 559.261.8650 Max: Mar. 2031 [email protected]
Feb. 2023 ‐ Feb. 2026 C: 559.508.7450
Max: May 2032 [email protected]
Mar. 2023 ‐ Mar. 2026
Max: June 2032
Aug. 2023 ‐ Aug. 2026
Max: Aug. 2032
Aug. 2023 ‐ Aug. 2026
Max: Aug. 2032
Nov. 2023 ‐ Nov. 2026
Max: Nov. 2032
Nov. 2023 ‐ Nov. 2026
Max: Nov. 2032
Finance Committee
Finance Committee
Finance Committee
C: 559.304.2880
[email protected]
C: 559.907.0045
[email protected]
[email protected]
C: 760.668.8414
[email protected]
C: 559.667.8482
[email protected]
C: 559.708.0586
[email protected]:
559.974.1530
C: 559.974.1530
[email protected]
C: 559.351.0121
[email protected]
C: 559.226.4700
[email protected]
MARC' BADY
336 N Amendo Ln
Clovis, CA 93611
DIVERSITY & INCLUSION
VICTOR THAO
1837 N Megan Ave
Clovis, CA 93619
BANKING
SHARIF ELKHALDY
423 E Balfour Ave
Fresno, CA 93702
BANKING
YELLOWFEATHER NORIEGA
3254 E. Olive Ave
Fresno, CA 93702
LIVED EXPERIENCE
DAVID OLMOS
8866 N Fuller
Fresno, CA 93720
LEGAL
JIM CONNELL
1361 E Fairmont Ave
Fresno, CA 93704
EMERITUS BOARD MEMBER
CATE ERVIN
1618 Alluvial Ave, Apt 109
Clovis, CA 93611
NON‐PROFIT DEVELOPMENT
HEATHER BROWN
1260 Fulton St #200
Fresno, CA 93721
NON‐PROFIT OPERATIONS
ROMAN CASTRO
8736 N Winery Ave
Fresno, CA 93720
FOOD DISTRIBUTOR
JOHN FRYE
Ex‐Board Member
RETIRED/HEALTH CARE
JIM DEVANY
Ex‐Board Member
REAL ESTATE/PROPERTY MGNT.
PAT BRADLEY
Ex‐Board Member INSURANCE
updated 1.31.24
POVERELLO HOUSE FINANCE COMMITTEE NON‐BOARD MEMBERS
POVERELLO HOUSE OFFICERS 2024‐25
EXECUTIVE STAFF MEMBERS
C: 559.283.1006
[email protected]
C: 559.960.4429
[email protected]
C: 559.907.0046
[email protected]
C: 559.274.8570
[email protected]
ZACHARY DARRAH
412 F Street Fresno
Fresno, CA 93706
SARA MIRHADI
412 F Street Fresno
Fresno, CA 93706
PAUL STACK
412 F Street Fresno
Fresno, CA 93706
LINDA BOWMAN
412 F Street Fresno
Fresno, CA 93706
Chief Executive Officer
Chief Programs Officer
Chief Operations Officer
Chief Financial Officer
Part A, Exhibit 6
Part A. Exhibit 6
2022 Audited Financial Statement
FINANCIAL STATEMENTS
FOR THE YEARS ENDED
SEPTEMBER 30, 2022 AND 2021
POVERELLO HOUSE
FRESNO, CALIFORNIA
SEPTEMBER 30, 2022 AND 2021
TABLE OF CONTENTS
Page
Independent Auditor’s Report..................................................................................................................... 1 Financial Statements
Statements of Financial Position ............................................................................................................. 4 Statement of Activities ............................................................................................................................. 5 Statement of Functional Expenses .......................................................................................................... 6 Statements of Cash Flows ....................................................................................................................... 7 Notes to the Financial Statements ........................................................................................................... 8 Supplementary Information
Schedule of Expenditures of Federal Awards ........................................................................................ 20 Notes to the Schedule of Expenditures of Federal Awards .................................................................... 21 Other Independent Auditor’s Reports
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........................................................................................................... 24 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ...................................................................................................................... 26 Findings and Questioned Costs
Schedule of Findings and Questioned Costs ......................................................................................... 30 Summary Schedule of Prior Audit Findings ............................................................................................ 32 Corrective Action Plan ............................................................................................................................ 33 1 INDEPENDENT AUDITOR’S REPORT
To the Board of Directors of
Poverello House
Fresno, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Poverello House (a nonprofit organization), which comprise the statement of financial position as of September 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.
In our opinion, the financial statements present fairly, in all material respects, the financial position of Poverello House as of September 30, 2022, and the changes 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.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Poverello House and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Poverello House’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 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. 2 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Poverello House’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 Poverello House’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule 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 schedule of expenditures of federal awards 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 March 21, 2023, on our consideration of Poverello House’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 Poverello House’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 Poverello House’s internal control over financial reporting and compliance.
Report on Summarized Comparative Information
We have previously audited Poverello House’s 2021 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated May 26, 2022. In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2021, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Clovis, California
March 21, 2023
3 FINANCIAL STATEMENTS
See Independent Auditor’s Report and Notes to the Financial Statements. 4 POVERELLO HOUSE
STATEMENTS OF FINANCIAL POSITION
SEPTEMBER 30, 2022 AND 2021
2022 2021
ASSETS
Current assets:
Cash and cash equivalents $ 1,167,271 $ 2,182,010
Grants receivable 1,284,800 868,599
Pledges receivable 616,319 616,319
Contracts receivable 177,419 158,290
Prepaid expenses 22,210 7,050
Total current assets 3,268,019 3,832,268
Long-term assets:
Investments 3,272,501 4,469,559
Property and equipment, net 7,557,018 5,644,581
Rehabilitation resident deposits 11,700 13,680
Total long-term assets 10,841,219 10,127,820
Total assets $ 14,109,238 $ 13,960,088
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable $ 172,362 $ 229,565
Accrued expenses 9,712 12,638
Accrued payroll and related 326,595 209,418
Security deposits 9,230 -
Deferred revenue 82,381 -
Loan payable, current portion 76,759 73,388
Total current liabilities 677,039 525,009
Long-term liabilities:
Rehabilitation resident deposits 11,700 13,680
Loan payable, net of current portion 244,227 320,694
Total long-term liabilities 255,927 334,374
Total liabilities 932,966 859,383
Net assets:
Without donor restrictions 11,056,201 9,792,172
With donor restrictions 2,120,071 3,308,533
Total net assets 13,176,272 13,100,705
Total liabilities and net assets $ 14,109,238 $ 13,960,088 See Independent Auditor’s Report and Notes to the Financial Statements. 5 POVERELLO HOUSE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(With Summarized Financial Information for 2021)
Without Donor With Donor 2022 2021
Restrictions Restrictions Total Total
Revenue and support
Contributions:
Cash and other financial assets $ 2,418,027 $ 365,762 $ 2,783,789 $ 3,053,656 Nonfinancial assets (Note 10) 322,801 322,801 - 1,733,141 Contracts and grants:
Contracts 1,581,369 1,581,369 - 1,074,487
Grants 3,504,140 95,000 3,599,140 5,245,623
Special events, net of $81,917 expenses 122,331 122,331 - 31 Investment income (loss), net (Note 5) (459,887) (459,887) - 563,430 Miscellaneous income - 101,654 101,654 58,964
Total revenues and support before
net assets released from restriction 7,590,435 460,762 8,051,197 11,729,332 Net assets released from restriction (Note 9) 1,649,224 - (1,649,224) - Total revenues and support after
reclassification of net assets
released from restrictions 9,239,659 (1,188,462) 8,051,197 11,729,332 Costs and expenses:
Program services 5,871,200 5,871,200 - 6,850,973
Management and general 1,854,630 1,854,630 - 603,511
Fundraising - 249,800 249,800 42,452
Total costs and expenses - 7,975,630 7,975,630 7,496,936 Changes in net assets 1,264,029 (1,188,462) 75,567 4,232,396 Net assets, beginning of year 9,792,172 3,308,533 13,100,705 8,868,309 Net assets, end of year $ 11,056,201 $ 2,120,071 $ 13,176,272 $ 13,100,705 See Independent Auditor’s Report and Notes to the Financial Statements. 6 POVERELLO HOUSE
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED SEPTEMBER 30, 2022
(With Summarized Financial Information for 2021)
Social Solar Management 2022 Total 2021 Total
Food Shelter Services Cleaning and General Fundraising Expenses Expenses Costs and expenses:
Personnel costs:
Salaries 171,163 $ $ 1,073,945 $ 1,504,440 $ 17,636 $ 767,762 $ 47,873 $ 3,582,819 $ 2,572,324 Employee benefits 40,406 193,791 292,035 122,142 806 9,074 658,254 419,282Payroll taxes 14,541 89,862 119,647 1,526 69,014 3,898 298,488 217,959 Total personnel costs 226,110 1,357,598 1,916,122 19,968 958,918 60,845 4,539,561 3,209,565 Other costs and expenses:
Advertising and promotion - - 17 8,232 16,895 105,326 130,470 67,151 Bank fees - 594 13,760 13 4,620 18,987 - 17,054
Communications 484 13,484 33,102 314 10,250 316 57,950 42,461 Depreciation 15,675 96,700 92,385 6,609 60,024 1,693 273,086 231,492 Equipment lease 4,747 - 3,620 1,583 178 10,128 - 7,127
Food/kitchen supplies 629,527 23,909 64,961 48 11,142 729,628 41 566,575Furniture/small office equipment 5,173 - 27,548 11,434 - 44,155 - 34,548Homeless/client services 331 467,391 118,733 - - 586,455 - 426,538 Hygiene/laundry/clothing - 312 2,935 - 866 4,113 - 2,102 In-kind materials and services 259,598 - - 63,203 - 322,801 - 1,733,141 Insurance - 2,915 - 4,874 54,052 61,841 - 64,095
Miscellaneous 22,930 - 23,920 - - 46,850 - 69,086
Newsletter - - - - 36,293 - 36,293 19,003Office expenses 336 6,789 16,876 1,127 118,235 6,415 149,778 93,960Professional fees 5,865 - 6,991 178,324 - 37,500 228,680 207,126Rent 11,813 - 29,578 3,560 - 44,951 - 24,662 Repairs and maintenance 6,023 50,034 16,683 12,307 173,988 259,035 - 244,632 Staff training - - 72 9,178 - 9,250 - 135
Stipends - 17,180 - - 90 17,270 - 29,420
Taxes and licenses 2,323 - - 9,509 - 11,832 - 27,502
Testing/education/life skills - 115 36,796 - 364 37,275 - 29,808 Travel - 14,130 58 16,640 - 30,828 - 2,266
Utilities 7,480 44,521 94,882 38,442 - 1,371 186,696 244,324 Vehicle fuel and maintenance 15,890 - 6,969 114,718 140 - 137,717 103,163 Total costs and expenses $ 1,145,564 $ 2,130,246 $ 2,540,175 $ 55,215 $ 1,854,630 $ 249,800 $ 7,975,630 $ 7,496,936 Program Services Supporting Services
See Independent Auditor’s Report and Notes to the Financial Statements. 7 POVERELLO HOUSE
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets $ 75,567 $ 4,232,396
Adjustments to reconcile change in net assets to
net cash provided from operating activities:
Depreciation 273,086 231,492
Loss on disposition of assets 1,555 -
Unrealized (gain) / loss on sale of investments 603,658 (263,926) Changes in:
Grants receivable (416,201) (613,707)
Pledges receivable (572,000) -
Contracts receivable (19,129) 22,880
Prepaid expenses (15,160) (7,050)
Accounts payable (57,203) 194,528
Accrued expenses (2,926) (5,833)
Accrued payroll and related 117,177 64,882
Security deposits 9,230 -
Deferred revenue - 82,381
Net cash provided by (used in) operating activities 652,035 3,283,662
CASH FLOWS INVESTING ACTIVITIES
Purchase of property and equipment (2,187,078) (1,073,824) Purchase of investments (662,962) (2,775,359)
Proceeds from sale of investments 1,256,362 472,994
Net cash provided by (used in) investing activities (1,593,678) (3,376,189)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans payable 400,000 -
Principal payments on loans payable (73,096) (5,918)
Net cash provided by (used in) financing activities (73,096) 394,082 Net increase (decrease) in cash (1,014,739) 301,555
Cash and cash equivalents, beginning of year 2,182,010 1,880,455 Cash and cash equivalents, end of year $ 1,167,271 $ 2,182,010
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
8 NOTE 1 – ORGANIZATION AND OPERATIONS
Poverello House (the Organization) is a not-for-profit public benefit corporation in Fresno, California, whose mission is to feed the hungry, offer focused rehabilitation programs, temporary shelter, medical, dental, and other basic services to the poor, the homeless, and the disadvantaged, unconditionally, without regard to race, color, religion, national origin, age, sex or disability. Support is provided primarily by donor contributions.
Poverello House is also a safe haven through its Naomi’s House program for single, homeless women in Fresno County. Naomi’s House is a 24-bed overnight shelter located on the Poverello House campus. In addition to overnight shelter, the women also receive food, clothing, and medical and psychosocial assessment and care.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Adoption of New Accounting Standard
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 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. The Organization adopted ASU 2020-07 with a date of initial application of October 1, 2021.
Basis of Presentation
The financial statements of the Organization have been prepared on the accrual basis of accounting and in accordance with U.S. generally accepted accounting principles (U.S. GAAP), which require the Organization 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 the Organization. These net assets may be used at the discretion of the Organization’s 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 action 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.
The Statement of Activities and Functional Expenses include certain prior year summarized comparative information in total. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization’s financial statements for the year ended September 30, 2021, from which the summarized information was derived.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents.
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
9 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Investments
Investments are stated at their estimated fair value based on quoted closing prices. Investments that are managed on a long-term basis or which are not expected to be used in the Organization’s operations within the year following the balance sheet date are classified as noncurrent.
Allowance for Doubtful Accounts
Receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to receivable. At September 30, 2022 and 2021, the Organization considers all amounts to be fully collectible; therefore, no allowance for doubtful accounts is reflected.
Pledges Receivable
Unconditional pledges receivable from donors that are expected to be collected within one year are recorded at net realizable value. Long-term pledges receivable that are expected to be collected in a period beyond one year are recorded at a discount using the present value of their estimated future cash flows. The discounts on long-term pledges receivable are computed using risk-free interest rates applicable to the period in which the pledges are received.
Contracts Receivable
Contracts receivable consist of amounts owed by various organizations for prepared meals, as defined in the memorandums of understanding, that have not been received by the Organization. The carrying amount of contracts receivable approximates net present value.
Fair Value of Financial Instruments
The Organization considers its cash, grants and pledges receivable, prepaid expenses, accounts payable and accrued expenses to be short-term in nature, and therefore their fair values approximate their carrying values.
Property and Equipment
Property and equipment are stated at cost or, if donated and placed into service, at their estimated fair value at the date donated. The Organization’s policy is to capitalize assets with an individual value of $5,000 or greater.
Routine repairs and maintenance, including planned major maintenance activities are expensed when incurred.
Depreciation is computed using the straight-line method over the estimated useful lives of the assets.
Donations of property and equipment are recorded without donor restriction unless the donor restricts the donated asset to a specific purpose. Assets donated with explicit restriction regarding their use, and contributions of cash that must be used to acquire property and equipment, are reported with donor restriction.
Rehabilitation Resident Deposits
The Organization at times holds outside cash deposits for residents in its Rehabilitation Program. This cash is maintained in a separate bank account until such time as the residents request withdrawal of their funds.
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
10 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition
The Organization recognizes revenue when services are rendered. A receivable is recorded to the extent the amount earned exceeds cash advances. Conversely, a liability is recorded when cash advances exceed amounts earned.
Funding sources may, at their discretion, request reimbursement for expenses or return of funds, or both, as a result of noncompliance by the Organization with the terms of the grants or contracts. Additionally, if the Organization terminates its activities, all unearned amounts are to be returned to the funding sources.
Contributions
All contributions received are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or are restricted by the donor for specific purposes are reported as increases in net assets with donor restriction. Unconditional promises to give that are silent as to the due date are presumed to be time restricted by the donor until received and are reported as net assets with donor restriction.
All donor-restricted support is reported as an increase in net assets with donor restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), net assets with donor restriction are reclassified to net assets without donor restriction and reported in the statement of activities as net assets released from restriction.
Contributed Nonfinancial Assets
The Organization receives various donated materials and services. The estimated fair value of the donation is recorded as support and expense in the period received.
Donated food is valued at the approximate average wholesale value of one pound of donated product at the national level, which was determined to be $1.92 and $1.79, respectively, during 2022 and 2021. The average wholesale value was based upon a cost study conducted by Feeding America. The Organization also applies a spoilage factor to food donations received to properly account for perishable food that is not used. For the years ended September 30, 2022 and 2021 the Organization received $5,191,968 and $5,764,093 in donated food, applied a 95% and 75% spoilage factor, and recognized $259,598 and $1,729,228, respectively, in donated food.
Donated services are recognized as contributions if they significantly enhance non-financial assets or involve a professional service that would otherwise have been purchased. Contributed services recognized comprise of professional services such as website design and IT consulting used in management and general functions.
Contributed services can be objectively measured and are valued at their estimated fair value based on current rates for similar services.
Advertising and Promotion
The Organization expenses all advertising and promotion costs as incurred. Total advertising and promotion expenses at September 30, 2022 and 2021 were $130,470 and $67,151, respectively.
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
11 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The costs of providing the Organization’s programs and supporting services have been summarized on a functional basis in the Statement of Functional Expenses. Certain overhead and indirect costs have been allocated to program services and fundraising based on management’s estimate of the actual personnel and facilities utilized in such activities. Management and general include those expenses that are not directly identifiable with any specific program but provide for the overall support and direction of the Organization.
The expenses allocated consist of the following:
Expense Method of Allocation
Salaries Time and effort
Employee benefits Time and effort
Payroll taxes Time and effort
Communications Time and effort
Depreciation Time and effort
Equipment lease Time and effort
Miscellaneous Time and effort
Office expenses Time and effort
Repairs/maintenance Time and effort
Utilities Time and effort
Taxes
Poverello House has qualified as a not-for-profit organization and has been granted tax-exempt status pursuant to Internal Revenue Code Section 501(c)(3) and California Revenue and Taxation Code Section 23701(d) and is exempt from Federal and State of California income taxes.
Generally accepted accounting principles provide accounting and disclosures guidance about positions taken by an entity in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken in its federal and state exempt organization tax returns are more likely than not to be sustained upon examination. The Organization’s returns are subject to examination by federal and state taxing authorities, generally for three years and four years, respectively, after they are filed. Unrelated business income tax, if any, is insignificant and no provision for income taxes has been made.
Use of Estimates
The preparation of financial statement in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on previously reported net assets or cash flows at September 30, 2021.
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
12 NOTE 3 – AVAILABILITY AND LIQUIDITY
The following represents the Organization’s financial assets at September 30:
2022 2021
Financial assets at year end:
Cash and cash equivalents 1,167,271 $ $ 2,182,010
Grants receivable 1,284,800 868,599
Pledges receivable 616,319 616,319
Contracts receivable 177,419 158,290
Investments 3,272,501 4,469,559
Total financial assets 6,518,310 8,294,777
Less amounts not available to be used within one year:
Donor-restricted with liquidity horizons greater than one year (2,120,071) (3,308,533) Financial assets available to meet general expenditures over the next twelve months $ 4,398,239 $ 4,986,244
The Organization has not adopted an official liquidity management plan or cash maintenance policy. However, cash, cash equivalents, and short/long-term investments are reviewed regularly. These are adjusted, as needed, to account for immediate cash needs, assess risk, and maximize return. Consistent with previous years, the Organization conservatively maintains sufficient liquidity to meet its operating requirements and perform its mission. The Executive staff of the Organization and the Board of Directors may consider adopting formalized plans/policies as the need arises.
NOTE 4 – PROPERTY AND EQUIPMENT, NET
Property and equipment consist of the following at September 30:
2022 2021
Land and buildings $ 6,224,344 $ 4,485,251
Building improvements 1,321,525 656,457
Building expansion 1,357,688 1,357,688
Resident Housing 215,502 215,502
Furniture, fixtures and equipment 688,253 547,499
Vehicles 471,930 402,816
Construction in progress 68,894 520,364
10,348,136 8,185,577
Accumulated depreciation (2,791,118) (2,540,996)
Property and equipment, net $ 7,557,018 $ 5,644,581
Total depreciation expense was $273,086 and $231,492 at September 30, 2022 and 2021, respectively.
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
13 NOTE 5 – INVESTMENT SECURITIES
Investment securities consist of the following at September 30:
2022 2021
Fixed income $ 1,592,477 $ 2,443,057
Equity securities 1,680,024 2,026,502
Total investments $ 3,272,501 $ 4,469,559
Fair Value
The following schedule summarizes the investment return in the statement of activities at September 30:
Without Donor
Restrictions
With Donor
Restrictions Total
Interest and dividends $ 76,865 $ 76,865 - $
Realized gains (losses) 99,030 99,030 -
Unrealized gains (losses) (603,658) (603,658) -
Investment fees - (32,124) (32,124)
Total investment income, net $ - (459,887) $ (459,887) $ Without Donor
Restrictions
With Donor
Restrictions Total
Interest and dividends $ 60,786 $ 60,787 1 $
Realized gains (losses) 266,003 266,003 -
Unrealized gains (losses) 260,804 3,122 263,926
Investment fees - (27,286) (27,286)
Total investment income, net $ 560,307 $ 3,123 $ 563,430 2022
2021
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
14 NOTE 6 – FAIR VALUE MEASUREMENTS
In accordance with generally accepted accounting principles, fair value is defined as the price that the entity would receive upon selling an asset or pay to transfer a liability at the reporting date. Generally accepted accounting principles establishes a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs, and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the asset or liability developed based on the best information available.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities.
Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly, and fair value is determined through the use of other valuation methodologies.
Level 3 – Valuations based on inputs that are not observable and significant to the overall fair value measurement, including the entity’s own assumptions in determining the fair value of assets or liabilities.
The table below presents the level within the fair value hierarchy at which investments are measured at September 30:
Total Level 1 Level 2 Level 3
Fixed income $ 1,592,477 $ 1,592,477 $ - $ -
Equity securities 1,680,024 - 1,680,024 -
Total investments at fair value $ 3,272,501 $ - 3,272,501 $ - $ Total Level 1 Level 2 Level 3
Fixed income $ 2,443,057 $ 2,443,057 $ - $ -
Equity securities 2,026,502 - 2,026,502 -
Total investments at fair value $ 4,469,559 $ - 4,469,559 $ - $ 2021
2022
Description
NOTE 7 – RETIREMENT PLAN
The Organization maintains a Simple IRA plan and provides a match of up to 3% of employee elective deferrals.
Amounts paid for retirement were $46,494 and $33,103 in the years ended September 30, 2022, and 2021, respectively.
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
15 NOTE 8 – COMMITMENTS
The Organization leases various office equipment under operating lease agreements. The operating leases have term expiration dates through 2027.
The Organization’s future minimum lease commitments are as follows for September 30:
Year Ending
2023 $ 48,690
2024 48,690
2025 41,606
2026 25,732
2027 15,010
Total $ 179,728
Total rent expenses were $55,079 and $31,789 for the years ended September 30, 2022 and 2021, respectively. In the normal course of business, operating leases are generally renewed or replaced by other leases.
NOTE 9 – NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions consisted of the following at September 30:
2022 2021
Time restrictions:
Estate distributions receivable 16,323 $ $ 16,323
Charitable trust promise to give 600,000 600,000
Purpose restrictions:
McMurray Family Medical Fund 10,480 -
Kaiser 95,000 19,760
Amazon Day 1 Family Fund 1,401,995 2,501,995
Other various 6,753 159,975
Total net assets with donor restrictions $ 2,120,071 $ 3,308,533 Net assets released from donor restriction by incurring expenses satisfying the restricted purpose or by occurrence of the passage of time or other events specified by the donors are as follows for the years ended September 30:
2022 2021
Time restriction expired:
Passage of specified time $ 32,123 - $
Purpose restriction accomplished:
Capital projects 1,100,000 115,774
Program expenses 549,224 304,625
Total net assets released from restrictions $ 1,649,224 $ 452,522
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
16 NOTE 10 – CONTRIBUTED NONFINANCIAL ASSETS
Contributed nonfinancial assets recognized within the statement of activities consist of the following for the years ended September 30:
2022 2021
Food $ 259,598 $ 1,729,228
Services and discounts 63,203 3,913
Total $ 322,801 $ 1,733,141
NOTE 11 – CREDIT RISK
The Organization maintains cash balances in bank accounts with financial institutions insured by the Federal Deposit Insurance Corporation. At September 30, 2022 and 2021, the Organization had uninsured cash balances of $909,461 and $1,332,745, respectively.
NOTE 12 – LOAN PAYABLE
On April 28, 2021, the Organization entered into a loan agreement with Central Valley Community Bank in the amount of $400,000 with an interest rate of 4%. The loan calls for four consecutive interest only monthly payments commencing May 27, 2021, and principal and interest monthly payments of $7,468 commencing September 27, 2021. The loan matures on August 27, 2026, and is secured by solar panels. The remaining balance on the loan at September 30, 2022 is $320,694.
The future minimum principal payments under the Organization’s loan payable for the years ending September 30 are as follows:
2023 $ 76,759
2024 80,285
2025 83,974
2026 79,676
Total $ 320,694
POVERELLO HOUSE
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2022 AND 2021
See Independent Auditor’s Report.
17 NOTE 13 – CONTRACTS WITH CUSTOMERS
Revenue from performance obligations satisfied at a point in time consists of the following at September 30:
2022 2021
Laundry Services $ 6,195 $ -
Lease Revenue 72,000 -
Meals Reimbursement 1,268,466 1,059,520
Mental Health Services 174,708 14,967
Security Services - 60,000
Total contracts $ 1,581,369 $ 1,074,487
Contract assets include meals reimbursement from various organizations. Contract assets are as follows:
9/30/2022 9/30/2021 9/30/2020
Closing Balance Closing Balance Opening Balance
Contract assets:
Contracts receivable 177,419 $ $ 158,290 $ 181,170
NOTE 14 – GRANTS REVENUE
The Organization recognized the following grant revenues for the year ended September 30:
2022 2021
Amazon Day 1 Family Fund $ 2,501,995 - $
California Community Reinvestment Grant 151,824 47,419
City of Fresno Emergency Shelter Grant 863,664 483,969
Community of Hope 622,032 -
Continuum of Care Program 27,573 -
Coordinated Entry System 144,939 -
County of Fresno MAP Point 399,362 379,303
Emergency Food and Shelter Program 240,939 326,926
Grant Village Cares 169,896 -
HERO Grant 252,440 -
Homeless Family Services 67,944 64,612
Kaiser 120,000 150,000
Kings View 27,623 -
Map Point CARES 54,826 -
Recidivism Grant 50,000 50,000
Triage Center 472,792 367,022
Village of Hope - 807,663
Total grants $ 3,599,140 $ 5,245,623
NOTE 15 – SUBSEQUENT EVENTS
Management has evaluated and concluded that there are no subsequent events that have occurred from September 30, 2022 through the date the financial statements were available to be issued on March 21, 2023, that would require additional disclosure or adjustment. 18 THIS PAGE IS LEFT BLANK INTENTIONALLY
19 SUPPLEMENTARY INFORMATION
See Independent Auditor’s Report and Notes to the Schedule of Expenditures of Federal Awards. 20 POVERELLO HOUSE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
Assistance Pass-Through
Listing Grantor's Total
Number Number Expenditures
U.S. Department of Housing and Urban Development
Direct Program
Continuum of Care Program 14.267 $ 172,512
Pass-Through Program from City of Fresno:
Emergency Solutions Grant 14.231 * E-19-MC-06-0001 42,423 Emergency Solutions Grant 14.231 * E-20-MC-06-0001 61,366 Emergency Solutions Grant 14.231 * E-20-MW-06-0001 548,436 Emergency Solutions Grant 14.231 * E-21-MC-06-001 167,078 Emergency Solutions Grant 14.231 * E-22-MC-06-0001 44,319 Pass-Through Program from County of Fresno:
Emergency Solutions Grant 14.231 * E-20-UW-06-003 253,814 Total Emergency Solutions Grant 1,117,436
Total U.S. Department of Housing and Urban Development 1,289,948 U.S. Department of Homeland Security
Pass-Through Program from United Way
Emergency Food and Shelter National Board Program 97.024 EFSP Phase 39 240,939 Total U.S. Department of Homeland Security 240,939
Total Expenditures of Federal Awards $ 1,530,887
*Denotes a major program per Uniform Guidance.
Federal Grantor/Program or Cluster Title
21 POVERELLO HOUSE
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2022
NOTE 1 – GENERAL
The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs of Poverello House (the Organization). Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included in the schedule. The information in this SEFA 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).
NOTE 2 – BASIS OF ACCOUNTING
The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 2 of the Organizations financial statements.
NOTE 3 – RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Federal award expenditures agree or can be reconciled with the amounts reported in the Organization’s financial statements.
NOTE 4 – INDIRECT COST RATE
The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
22 THIS PAGE IS LEFT BLANK INTENTIONALLY.
23 OTHER INDEPENDENT AUDITOR’S REPORTS
24 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
Poverello House
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 Poverello House (a nonprofit organization), which comprise the statement of financial position as of September 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 March 21, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Poverello House’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 Poverello House’s internal control. Accordingly, we do not express an opinion on the effectiveness of Poverello House’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 the 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as item 2022-001 that we consider to be a material weakness.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Poverello House’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 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. 25 Poverello House’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on Poverello House’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. Poverello House’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
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.
Clovis, California
March 21, 2023
26 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Directors of
Poverello House
Fresno, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Poverello House’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of Poverello House’s major federal programs for the year ended September 30, 2022. Poverello House’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
In our opinion, Poverello House 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 September 30, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Poverello House and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Poverello House’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Poverello House’s federal programs.
27 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Poverello House’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Poverello House’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, 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 Poverello House’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of Poverello House’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 Poverello House’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on 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 a 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 a 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 Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
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 the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Clovis, California
March 21, 2023
28 THIS PAGE IS LEFT BLANK INTENTIONALLY.
29 FINDINGS AND QUESTIONED COSTS
POVERELLO HOUSE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
30 SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified? X Yes No
Significant deficiencies identified that are not
considered to be material weaknesses? Yes X None reported Noncompliance material to financial
statement noted? Yes X No
Federal Awards
Internal control over major programs:
Material weaknesses identified? Yes X No
Significant deficiencies identified that are not
considered to be material weaknesses? Yes X None reported Type of auditor's report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200, Section 200.516(a)? Yes X No
Identification of Major Programs
Name of Federal Program or Cluster
Emergency Solutions Grant
Dollar threshold used to distinguish between
Type A and Type B programs:
Auditee qualified as a low-risk auditee? X Yes No
$750,000
Assistance Listing Number
14.231
POVERELLO HOUSE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
31 SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2022-001 Schedule of Expenditures of Federal Awards (Material Weakness) Condition: The Schedule of Expenditures of Federal Awards (SEFA) initially provided by the Organization was materially incomplete. There were federal grants for which the Organization made expenditures that were not included on the SEFA.
Criteria: A strong system of internal controls and management review requires that expenditures for all federal grants are accumulated and included on the SEFA in compliance with applicable standards.
Cause: The Organization was unable to identify federal funding sources during review of grant agreements, accordingly, not all expenditures were captured in the Organization’s SEFA.
Effect: As a result of this condition, federal grant expenditures were understated by $268,540.
The final SEFA was corrected and is properly presented.
Recommendation: We recommend that the Organization create a system of control whereby all grants are reviewed in detail and a listing created that identifies the funding source for each. The Organization should ensure applicable expenditures for grants identified as having federal funding are included in the SEFA.
SECTION III – FEDERAL AWARD FINDINGS
None reported.
POVERELLO HOUSE
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2022
32 FINANCIAL STATEMENT FINDINGS
None reported.
FEDERAL AWARD FINDINGS
None reported.
33 Part A. Exhibit 7
Indirect Cost Rate Agreement
N/A
Part A, Exhibit 8
Part A. Exhibit 8
Resolution of the Board of the Directors
Part B
Application
Workforce
Development
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
PY 2024-2025 APPLICATION
Public and Community Service Programs
NOTE: This application is not for public services to benefit primarily homeless and individuals at risk of homelessness or for Fair Housing programs. If you are a homeless service provider, please use the Homeless and Homelessness Prevention Application. If you are an organization applying for Fair Housing programs, please use the Fair Housing Application.
1. Project Summary Information – please complete the below summary information for the project/program.
Project Name (10 words or less): Poverello House's Rehabilitation-Aftercare Program
Amount Requested: $ 240,826.00
To utilize CDBG funds for a public service, the service must be either a new service or a quantifiable increase in the level of an existing service.
This project 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).
Poverello House will enhance the workforce development program for those exiting substance abuse treatment. The proposal seeks to incorporate an in-house work readiness program to prepare participants for careers in culinary services.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
If this is an existing project/program that has not received CDBG funding from the City previously, please briefly explain how CDBG funds will be used to increase the level of service.
The Rehabilitation-Aftercare Program at Poverello House (PH) will utilize CDBG funding to increase the level of service in the following areas:
Job Placement Assistance: The proposed project would generate 6,000 hours of work experience for those with low-to-moderate income. PH's drug/alcohol rehabilitation program offers job placement assistance once participants complete the first six-month phase of Substance-Use Disorder treatment.
Participants will move into another transitional six-month period to seek fulltime employment. The proposal will create three (3) full-time equivalent (FTE) positions in PH's culinary services for program participants entering aftercare.
Participants in this program will earn a food manager ServSafe (or other) certificate, internal culinary training program certificate, and forklift certification.
Participants will participate in the program in a state-of-the art culinary services facility in a fully operational culinary services program that provides over 3,500 meals daily in the community. Although not required, Culinary Service Specialist will be compensated at $20/hour to match exisiting staffing position wages and surpass California's wage increases for fast food workers.
Job Developer: PH will leverage an exisiting job developer position to provide comprehensive job placement support, including soft skill training, resume development, and securing opportunities with "second chance" employers.
The Job Developer will focus exclusively on job placement services in the culinary field or other opportunities, resume building, and expanding the organization's capacity to secure employment opportunities for program participants. 36 resume-building and mock-interviewing sessions will occur with participants near the completion of the program; at least one session per month.
Culinary Training: Poverello House will leverage an exisiting Executive Chef's time to professional training program participants. The Executive Chef will work directly with program participants in PH's full-service culinary program to assist them with developing skills for the food services industry. The proposed program will help contribute to the preparation of approximately 400,000 hot meals for anyone in need in the community in 12 months. On-site meals are prepared in a newly renovated kitchen and served in an innovative restaurantstyle daily. The Executive Chef will help program participants in culinary services to ensure employment opportunities in the community's food industry.
The organization will collaborate with local businesses, workforce development agencies, and other community partners to enhance job placement opportunities for participants.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
2. Organizational Capacity
a. Briefly describe how your organization’s prior activities have resulted in meaningful impact:
Since 1990, Poverello House (PH) has operated a formal in-patient drug and alcohol rehabilitation program for men. There have been many successes over the 30-year history of the program. However, during the last 24 months of the rehabilitation program, here are a few examples:
Job Placement: The success of job placement is evident in program participants securing full-time employment. Staff conducted 238 resume-building and interview sessions, exceeding expected outcomes by 75%. Since 2020, PH has employed 43 individuals from the program. 84 graduates have successfully entered fields where they gained experience during their work therapy component of the program.
Mental Health Treatment: PH assessments, individual/group counseling, meditation sessions, and participation in multi-step facilitation therapy such as AA/NA. The program enrolled 174 individuals in mental health services. Of these, 95 (54%) reported attending group therapy for the first time. Clinicians established a plan of care for 111 individuals seeking mental health services, outpacing the planned deliverable by 130%. Since implementation, 59 voluntary post-surveys substantiated improved mental health and 100% positive responses.
SUD Treatment: The program offers two levels of care over 12 months, emphasizing substance use disorder (SUD) therapy. PH placed 316 program participants in SUD group therapy sessions for the first time. For 26 weeks, participants collaborate in AA/NA classes, accounting for 5 hours weekly. The intake specialist performed 346 assessments, with a high acceptance rate (92%).
System Navigation Services: PH actively collaborates with various stakeholders (see letters of support). The multifaceted approach maximizes resources as program staff performed 244 linkages to services, surpassing the current deliverable rate by 79%.
System navigation provided 323 points of service access. Navigators also provided 345 coaching sessions on financial literacy and budgeting services. Coaching sessions prompted participants' ability to attain independent living and means of banking.
Legal Services: The program supported 142 workshops related to DUI, domestic violence, and parenting. These courses are accompanied by efforts to reduce/remove past tickets, citations, infractions, and other legal barriers. The team assisted 158 individuals in removing at least one legal barrier, exceeding deliverable expectations by 195%. The successful reinstatement of immigration status for a program participant highlights just one example of the program's commitment to addressing diverse legal needs. Overall, the program removed 281 legal barriers.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
Linkage to Medical Care: PH facilitated 1,416 counts of transportation to various appointments, which signifies crucial and equitable support offered to participants during the pandemic. Most, if not all, program participants accounted for the 321 individuals who received medical, dental, and optometry care. Case managers successfully enrolled 189 individuals in medical insurance. Collaboration with partners, such as UCSF Fresno, Family Healthcare Network, Clinica Sierra Vista, Eye Glassworld, and All Smiles Dental Clinic.
The current year of the program is showing the same or even greater outcomes.
These successes have been achieved with far less funding compared to the proposed budget. It is anticipated that the additional funding in this cycle will yield far greater results with a focus on workforce development and aftercare services. b. Describe the organization’s experience with administering federally funded programs of this nature.
Poverello House has substantial experience successfully administrating federally funded, reimbursement-based grants and contracts of a similar size and scope to this proposal. The first federally funded program was awarded in 2001 by the US Department of Housing and Urban Development. The organization has progressively secured more grants over the decades.
Currently, of the 22 grant programs that are operating, 18 of them are reimbursement-based grants or contracts. Examples include the following:
1. City of Fresno Emergency Shelter Grant (ESG): In 2022, Poverello House received $367,587 to fund a portion of the City-wide street outtreach program that the organization operates. The ESG program requires a dollarfor-dollar match, so the total size of the operational budget was $735,174, with the additional funding coming from other sources. Poverello House operated this grant in full compliance with grant requirements. The organization maintained good standing, and the City of Fresno was also awarded the following year’s funding. Poverello House exceeded all outcomes during the performance period. Outcomes were exceeded by as high as 125%.
2. US Department of Housing and Urban Development, Coordinated Entry System: In 2022, Poverello House was awarded $619,103 to manage the Coordinate Entry System for the County. During the 12-month performance period, Poverello House complied with the grant requirements and ended the performance period in good standing. The organization met or exceeded all outcomes of the grant. The contract has been renewed until 2025.
3. US Department of Housing and Urban Development, Rapid ReHousing: In 2022, Poverello House was awarded $311,866 to provide rental support through the Rapid Re-Housing Program. During the 12-month PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
performance period, Poverello House was compliant with the grant requirements and ended the performance period in good standing. The organization met or exceeded all outcomes of the grant. The contract has been renewed until 2025.
4. Federal Emergency Management Agency, Emergency Food and Shelter Program (EFSP): In 2022, Poverello House was awarded $606,640 for a one-year performance period. A portion of these funds provided vital funding for the culinary services program that offers prepared meals for anyone in need in the community. The secondary component of the funding source contributed to program support for various emergency shelter programs.
Outcomes related to these funds are directly linked to the number of meals and nights of shelter provided. The organization finished the performance period in full compliance with the grant requirements and was in good standing. Poverello House met all grant outcomes. FEMA awarded new funding to the organization following the performance period.
During Poverello House’s more than two decades of administering grants and contracts with federally funded programs, the organization has never had the early termination of a grant due to non-compliance or any other issue. Upon request, the organization can provide references from funders. c. For how many years has the organization administered activities of the type described in this application?
30 Years
d. 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
e. Please describe the cultural competency training staff will be required to complete during the term of this program.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
Poverello House is committed to cultivating cultural competence among staff by providing cultural competenacy training for staff. The training will include recognzing and accepting cultural norms of the clients being provided outreach services. The training aims to prepare employees with the knowledge, skills, and attitudes essential for engagement with individuals from diverse cultural backgrounds. Training components include:
1) Foundational Understanding: Employees will increase their understanding of various cultures by identifying differences in patterns of thinking, feeling, and problem-solving, as well as learned beliefs, values, language, and communication styles.
2) Cultural Intelligence: Staff will develop cultural intelligence to interpret behaviors in alignment with diverse perspectives, emphasizing the impact of cultural awareness on trust and teamwork.
3) Cultural Competence in Context: Training will explore culture within historical, social, political, and economic contexts, emphasizing sensitivity to differences, adaptability, and reflective awareness of cultural influences. 4) Legal and Ethical Considerations: Employees will be educated on legal and ethical standards related to cultural competence, ensuring adherence to antidiscrimination laws and organizational policies.
The training underscores the significance of cultural competence in facilitating communication between individuals of different cultures, acknowledging the role of personal history and personality. Employees will cultivate cross-cultural attitudes—openness, flexibility, humility, and sensitivity — paired with skills for respectful communication, recognizing others' values, and embracing positive change. Poverello House will encourage employees to engage in continuous learning and self-assessment. The organization will conduct training sessions for both new and existing employees.
3. Proposed Scope of Work
a. Briefly describe the needs this proposal addresses, and how existing resources are insufficient to meet this need:
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
The proposal aims to provide employment opportunities, career readiness skills, and professional certifications to community members enrolled in Poverello House's Rehabilitation-Aftercare Program. The vast majority of program participants have little to no income upon admission into the program, with all of them needing assistance in managing Substance Use Disorder (SUD). After completing the first six-month in-patient treatment, program participants move into a transitional component where they seek permanent employment. Participants encounter barriers due to not possessing employment history. The program will work to help those re-entering society from incarceration, representing 90% of participants. The program enrolls more than 120 individuals annually with 5% having employment prior to program admission. There are currently workforce development programs in Fresno, but there are insufficient resources and opportunities for those with Substance Use Disorder looking to re-enter into productive lives. This program also focuses on culinary training and career readiness for a field that are traditionally second chance employers. The program overcomes many barriers to employment for this population. Participants will also experience gainful employment, leadership training, and a fulfilling experience of serving others in need in the community. This would be a unique and innovative program in the City of Fresno.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
b. Briefly describe the target population and how the project will meet the specific needs of the target population and how the project will be marketed to the target population.
The target population is men participating in an in-patient SUD program. The participants are predominantly formerly incarcerated, have formerly experienced homelessness, and are unemployed with many barriers to employment.
The proposed project has a priority population in an area identified by the City of Fresno as Racially/Ethnically Concentrated Areas of Poverty (RECAP). According to an article by The Atlantic entitled The Bias in Fresno's Justice System, "from 2017 to 2020, more people were booked into county jail from the Southwest side of Fresno (93706) than from any other area in the City." This area of Fresno has the largest population of people of color in all of Fresno County. Poverello House is located in 93706 and allows the rehabilitation program to serve those affected by systemic inequities. Data also shows that a majority of drug use, crime, and arrests happen in Southwest Fresno. The impacts of the War on Drugs continue to plague Fresno today. In fact, "Among California cities, Fresno is the least racially and economically inclusive, ranking 59th of 59, according to a 2019 report by the Urban Institute, a Washington, D.C.-based think tank. Across the U.S., Fresno ranked 253rd out of 274 cities in the U.S. on overall inclusion, 263rd on economic inclusion, and 182nd on racial inclusion" (Urban Institute, www.urban.org).
There is a need to expand career readiness services that directly serve RECAP communities by leveraging an established community program, such as Poverello House's Rehabilitation Program. The proposed project will employ three (3) program participants as Culinary Service Specialists during their transition into permanent employment. The project will seek out individuals from RECAP communities by providing them with an employment opportunity that enhances workplace competencies, document readiness, and placement into affordable housing. An indirect benefit of these positions will be elevating the capacity of Poverello House's culinary services to provide outgoing meals to affordable housing complexes and emergency shelters throughout the City of Fresno.
Without an increase in available job assistance programs, the likelihood of people relapsing and criminal behavior will increase dramatically. c. Describe consultation efforts made with the target population in the development of the proposed activity.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
Poverello House developed the Rehabilitation Program by incorporating feedback from conversations, case management notes, and surveys gathered between program participants and staff. Poverello House has gathered data from 316 unduplicated individuals since 2022 who participated in the program. A vast majority (90%) are formerly incarcerated with little to no income. Of these individuals, 65% identified as people of color. In 2023, a limited number (33%) of admitted participants entered full-time permanent jobs soon after completing the program's treatment plan. Feedback gathered from participants indicated a need for second-chance employers willing to provide full-time employment.
Additionally, Poverello House employs a thorough intake process that collects crucial information, including race, ethnicity, incarceration history, education, employment, family dynamics, and mental health. This data-driven approach ensures a comprehensive and measurable understanding of the individual's background. Weekly meetings led by the program participant involving mental health clinicians, job developers, and case managers demonstrate a collaborative approach to case planning. Since 2020, PH has employed 43 individuals from the program. 40% of rehabilitation staff are graduates of same program they serve, including a Senior Director managing the program. The staff has developed a strong working relationship based on rapport and empathy. Every participant has an individualized plan developed in a case management software. Reporting allows leadership to analyze data and make timely adjustments to program design.
The data-driven approach revealed a greater need for support services targeting job assistance, workplace skills, and income stability. Every case management plan includes employment as a pursuit for all program participants. However, program participants overwhelmingly communicate that employment barriers such as a lack of training, visible tattoos, and criminal background make it challenging to secure gainful employment.
d. Describe the marketing plan for the proposed activity and how the organization will ensure it reaches the target population.
Poverello House (PH) will work with Fresno County Department of Probation and directly with the courts to reach people with Substance Use Disorder and their families negatively affected by the War on Drugs with little to no income. PH will provide workshops and brochures regarding the program to community partners.
Clients can enter the program through referral or as a voluntary walk-in. For those completing the six-month in-patient program at Poverello House, their Case Manager will share about the program should there be available space.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
e. The City’s Analysis of Impediments to Fair Housing Choice recommends that the City prioritize investments in areas identified as Racially/Ethnically Concentrated Areas of Poverty (RECAPs – see NOFA Handbook). Will this program be:
Offered Citywide
Offered Citywide with an emphasis and affirmative marketing toward RECAPs
Offered exclusively to residents of RECAPs
f. Describe the service area:
Note: Strong applications will include specifically defined services areas such as ‘residents within ½ mile radius of [facility address]’ or ‘residents within the boundaries defined on the attached map.’ A map may be attached in lieu of a service area description.
City of Fresno and 412 F. Street, Fresno, CA 93706. See map attached as Exhibit E.
g. Estimate the number of unduplicated people expected to benefit from the project:
25 unduplicated people or businesses will receive a direct benefit from this project.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
h. Income Documentation
CDBG-eligible programs primarily benefit persons who earn less than 80% of the area median income. A chart containing the income limits effective as of July 1, 2023, is included as a reference below. Applicants must select one of the three options for documenting how their activity will satisfy the income eligibility requirement. Please note, these income limits are subject to change. For the most current income limits please reference the link below:
https://www.hudexchange.info/resource/5334/cdbg-income-limits/ Household Size 30% AMI 50% AMI 80% AMI
1 17,350 28,900 46,200
2 19,800 33,000 52,800
3 22,300 37,150 59,400
4 24,750 41,250 65,950
5 26,750 44,550 71,250
OPTION 1: Low-Income Clientele – Presumed Benefit
Select this option only if the program will exclusively serve one of the following clienteles (select all that apply)
Older Adults (62 and older)
Severely Disabled Adults
Abused Children
Illiterate Adults
Migrant Farm Workers
OPTION 2: Low-Income Clientele – Other
Select this option if the program will serve a specific clientele not listed under the first option. The organization must document income eligibility for each program participant. Indicate below the types of documentation the organization will collect to verify income eligibility (select all that apply):
Pay Stubs / Wage Statements
W-2s
Income Tax Returns
Social Security Documentation
Bank Statements
Signed Certifications from
Beneficiaries
Other:
Other:
Other:
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
OPTION 3: Low-Income Area
Select this option if the program will benefit all residents in an area where at least 51% of its residents are low- or moderate-income. This is the least likely option for Public Service programs.
i. Detailed Narrative Description of Project/Program
Describe the project/program in detail in the space below. Limit description to the space provided on this and the next page.
Program Design/Quality of Proposal: Poverello House (PH) will provide job assistance to individuals with little to no income transitioning from an in-patient substance use disorder (SUD) program. The Rehab Program has been the cornerstone of Poverello House's programming for over thirty years; emphasizing sobriety and career readiness. The proposed project will provide employment opportunities in Poverello House's culinary services for those working on building workplace skills, employment history, and income stability.
The project will create three (3) additional positions as Culinary Services Specialists. CDBG will fund these three positions entirely (100%). PH will allocate time from exisiting Job Developer (0.2 FTE) and Case Manager (0.2 FTE) positions through existing funding. PH also employs an Executive Chef who will provide direct support, knowledge, and experience for the success of the program. The proposed positions will collaborate together to enhance program participants entering the aftercare quality of care. The Executive Chef will collectively provide Culinary Specialists an estimated 6,000 hours of supervised training and help them become ServSafe (or other) food manager certified. Participants will also become forklift and first-aid certified. Poverello House will also create an internal certification for basic culinary skills such as, knife skills, equipment operation, food safety, food preparation, menu design, spice utilization, and other applicable skills as determined by the Executive Chef. The proposal will give participants extensive training experiences to work in any modern restaurant and/or commercial kitchen, while producing 3,500 hot meals daily. Components of the proposed service expansion: 1. Job placement immediately after completion of rehabiliation treatment plan who meet eligibility and the desire to be placed in future gainful employment in the culinary services industry 2. The ServSafe (or other) food manager, forklift, and first aid certifications within six months of starting the position. 3. Upon completion of the program, all participants will receive the internal certification of culinary services as they complete the program. 4. Job Developer assists each individual with creating a long-term career pathway in culinary services and facilitates placement.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
Detailed Narrative Description of Project/Program (Continued from previous page) Job Developer will establish relationships with local restaurants and other culinarybased entities to develop pipeline relationships for graduates of this program. 5. The Executive Chef and Director of Culinary Services increases specific learning activities, workplace skills, and oversees certification processes. They will also provide daily training and oversight of program participants. 6. An existing Case Manager will work directly with program participants to assist with support services.
Support services will include, financial literacy support (budgeting, credit, banking, etc.), housing placement, securing a driver's license, health care needs, and other services as needed based on the needs of each individual. 7. Dramatically increase the workforce development potential for the culinary services program at Poverello House.
The program's supportive services will continue to follow those transitioning out the program to ensure sobriety and prevent them from falling back into a harmful cycle.
Participants will leverage these services during their employment in PH's culinary service program. The employment opportunity will give participants a structured learning environment where self-actualization can continue to occur.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
j. Collaboration
Briefly describe any collaboration efforts with other organizations for this project/program or related initiatives.
Collaborating Organization Description of Collaboration Fresno County Department of
Behavioral Health and
Department of Probation.
Case managers and services navigators work
closely with county staff throughout the referral
process to link participants to available resources.
PRIDESTAFF Employment agency assisting in placing participants in job opportunities.
Local Restaurants Provide long-term, gainful employment for program graduates.
Fresno County's District
Attorney's Office
Referrals for rehabilitation program.
4. Project/Program Budget
a. The City is interested in applicants that can deploy activities in a timely manner (12 months) while balancing the need to maintain high standards of program delivery. Please propose how you will address this need.
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services
Poverello House (PH) utilizes a robust financial and administrative staff in both size and capacity. Over the last four years, the organization has successful administered well over $20,000,000 in grant funds.
Administration of grant funds is completed by a collaboration of finance, administrative, and program staff.
The Finance Department is headed by the CFO, Linda Bowman. Ms.
Bowman has over three decades of non-profit accounting experience.
She has administered grant funds from government and private sources into the tens of millions of dollars. She has led PH through four consecutive, clean, independent audits. Ms. Bowman manages the Finance Department, which includes five full time equivalent staff. The Finance Department is comprised of an experienced Controller, Payroll Specialist, Accounts Payable Specialist, Accounts Receivable Specialist, and Administrative Assistant. This team has shown their capacity to administer grant funds as they currently manage 22 grants.
The Administrative Department is headed by the CEO, Zachary Darrah. Mr.
Darrah has over 15 years of experience in the non-profit sector. He has a unique understanding of the administration of grant funds as he has extensive experience in grant writing and leading organizations that utilize grant funding from many sources. Mr. Darrah will be intimately involved in the proper administration of grant funds in this program.
Poverello House has much experience in launching new programs in a timely.
The organization will begin the program immediately upon being awarded. The organization also has the ability to cash flow the ramp up needs of the program and is well-versed in the reimbursement-based grant model. Each department needed to launch the program will begin working together immediately to identify staff, program participants, and implement the robust program design. The organization anticipates no problems in deploying activities quickly and maintaining high standards of program implementation. b. List of Funding Sources
Provide all planned funding anticipated/ committedfor this activity for PY 2024- 2025. 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
PY24-25 Consolidated NOFA Part B
Application – Public and Community Services