1 Agenda Board Meeting March 25, 2014 - elcbigbend.org · Advocacy and Resource Development Committee Report Dr. Rachel Pienta f. Audit Committee Report..... Jim McShane Audit Presentation

The Coalition's Mission is to provide leadership and advocacy that builds a community

where ALL children are prepared for success in school

Agenda

Board Meeting Tuesday, March 25, 2014

11:30am to 1:00pm Northwood Centre, 1940 North Monroe Street, Suite 70, Tallahassee, FL 32303

1. Welcome and Roll Call .................................................................. Monesia Brown 2. Approval of Agenda ....................................................................... Monesia Brown 3. Approval of Minutes for December 17, 2013 ............................... Monesia Brown

4. Public Comment............................................................................. Monesia Brown

5. Special Presentation ....................................................................... Natasha Lafaille

School Readiness Parent 6. Reports

a. Board Chair’s Report ......................................................... Monesia Brown b. Chief Executive Officer’s Report ...................................... Matt Guse c. Treasurer’s Report ............................................................. Jeremy Cohen d. Program Policy and Strategy Committee Report ............... Tara Orlowski e. Advocacy and Resource Development Committee Report Dr. Rachel Pienta f. Audit Committee Report .................................................... Jim McShane

Audit Presentation .............................................................. Allison Harrell Thomas Howell Ferguson P.A.

7. Action Items ................................................................................... Matt Guse a. Action Item #2013-17 Approval of Draft Financial Statements and Management Letter b. Action Item #2013-14 Approval of Bylaws c. Action Item #2014-3 Approval of Signature Authority for Jeremy Cohen

Next Meeting: Tuesday, June 17, 2014 11:30am to 1:00pm

Conference Call Information:

Please call 1 (888) 670-3525 and enter the conference code 7540518312

The Coalition’s Mission is to provide leadership and advocacy that builds a community where all children are prepared for success in school

Board Meeting

Tuesday, December 17, 2013 11:30am to 1:00pm

Early Learning Coalition of the Big Bend Region, Inc. Northwood Centre, 1940 North Monroe Street, Suite 70, Tallahassee, FL 32303

Board Members Present: Staff Present: Monesia Brown, Chair Matt Guse, Chief Executive Officer Josh Aubuchon Kathy Hayes, Quality Assurance and Kim Barnhill Accountability Director Jeremy Cohen Molly Lord, Community Partnerships Director Stacey Duggar Shannon Martin, Program Services Director Kim Kelling Engstrom Liz Murphy, Human Resources Director Eduardo Loumiet Travis Gordon, Finance Director Jeanne Martin Kristine Parker, Program Services Dr. Luisa Martin-Humes Manager, Family Services Jim McShane Linda Nelson Jeanna Olson Tara Orlowski Dr. Rachel Pienta Maria Pouncey Carrie Rubenstein Janice Sumner Board Members Not Present: Guests Present: Paula Arnold N/A Bryan Desloge Superintendent Paul Dyal Sharon Gaskin Angel Trejo

1. Welcome and Roll Call Monesia Brown, Chair, welcomed board members and staff. Roll call was taken and quorum was established at 11:35am.

2. Approval of Agenda The motion to approve the agenda for this meeting was made by Bryan Desloge. This motion was seconded by Jim McShane. This motion was approved.

3. Approval of Minutes The motion to approve the minutes for the board meeting of September 19, 2013 was made by Kim Kelling Engstrom. This motion was seconded by Linda Nelson. This motion was approved.

4. Public Comment There was no public comment.

5. Reports a. Board Chair’s Report

Chair Brown presented her Board Chair’s Report. She informed the board that Larry DiPietro resigned from his position on the Board of Directors. She thanked him for his service as both a board member and past Board Chair. Chair Brown personally thanked board members that contributed during the Early Learning Coalition of the Big Bend Region’s (ELC) recent Match Day. Matt also thanked the board and informed them on how happy he was with the response received on Match Day. The board was then informed that because of a few recent departures from the Board of Directors, there was a need to create a nominating committee to identify individuals that were interested in serving in these open positions. The Nominating Committee recently met and had two recommendations for the board’s consideration. Chair Brown then turned the floor over to Carrie Rubenstein to share the Nominating Committee’s recommendations. Based on the committee’s recommendations, Carrie R. asked that the board consider Kim Kelling Engstrom for the position of Vice Chair on the Board of Directors. The motion to approve Kim K. as the new Vice Chair, effective immediately, was made by Carrie R. on behalf of the Nominating Committee. This motion was seconded by Bryan Desloge. This motion was approved. Chair Brown thanked Kim K. for her willingness to serve. Kim K. thanked Chair Brown for the opportunity. The Nominating Committee also had another recommendation to bring forth to the board. Carrie R. asked that the board consider Jeremy Cohen for the position of Treasurer on the Board of Directors. The motion to approve Jeremy Cohen as the new Treasurer, effective immediately, was made by Carrie R. on behalf of the Nominating Committee. This motion was seconded by Bryan Desloge. This motion was approved. Chair Brown also thanked Jeremy C. for his willingness to serve.

b. Chief Executive Officer’s Report Matt Guse provided his Chief Executive Officer’s Report to the board. He informed the board that on the legislative front, things have been fairly quiet in terms of meetings and committee meetings. While the Senate met in December, the House did not. The Senate Education Committee had staff from the Office of Early Learning (OEL) come and provide them with an update on where they are

with implementing House Bill 7165, which is now law. OEL informed the Senate Education Committee that they were in a good place with implementing the changes and are in the process of development rules to align with these changes. Matt G. confirmed that the ELC will definitely be participating in any rule promulgation that takes place. Staff will keep the board apprised on this. Legislatively, the next big thing staff are waiting on is the release of the Governor’s budget. Based on the information provided to date, things look positive for the ELC in terms of budget for the 2014-2015 fiscal year, however, staff won’t know for sure until the Governor releases his budget. Matt G. also informed the board that he met with Allyce Heflin, the Staff Director in House Appropriations on December 6, 2013. He provided her with a tour of our office, an overview of early learning and discussed future technology opportunities as well as opportunities to recreate or redefine our School Readiness waiting list with her. Matt G. discussed the statewide standardized School Readiness contract with the board. It has been sent out to coalitions and stakeholders for their review and comments. and it is expected that OEL will undertake a workshop in the next thirty days to further discuss the contract. The board was provided with some history and background on both the School Readiness and Voluntary Pre-Kindergarten contracts. While the state has always had a standardized Voluntary Pre-Kindergarten contract for providers, coalitions have always been able to create their own School Readiness contracts. In the past this has provided coalitions with an opportunity to have more flexibility and control over their contract and enabled them to customize it based on their local needs. From a consistency standpoint, having thirty different School Readiness contracts around the state has also had its obstacles. The majority of coalitions and providers are in favor of having a standardized statewide contract. This process has taken sometime and is still in progress, but hopefully will go into effect soon. Matt G. informed the board that he met with Representative Mark Danish from Hillsborough County and took him to Dr. Luisa Martin-Hume’s center, Bright Stars Child Development, to provide him with an opportunity to meet one of the ELC’s local providers and board members and to tour her center. Matt G. thanked the board for meeting with him one on one over the summer. When he met with Stacey D. and Dr. Luisa M. they expressed that they wanted to be more involved on the board and wanted to be provided with more opportunities to advocate and be a voice for the ELC’s child care providers. In speaking with both of them, a Provider Advisory Group was created to provide child care providers with new opportunities to come together in a solution oriented way to let staff know how the ELC can help them, and how they can help the ELC. This group has already met once. Going forward, Dr. Martin-Humes or Stacey D. will provide the board with an update on these meetings. Matt G. reviewed the Fiscal Year 2013-2014 Child Care Services Utilization Plan as of November 30, 2013. He discussed the ELC’s increased enrollment of School Readiness children. The goal is to be constantly enrolling children, and staff have spent a considerable amount of time cleaning up the waitlist to ensure that the

ELC is more efficiently and effectively able to enroll families. Staff were complimented on their hard work and dedication during this period in which 726 priority three, birth to five income eligible families were contacted. At the time staff started contacting families there were 1,151 priority three children on the waitlist. Because of their efforts, staff were able to reduce this number down to 593, and as a result, the ELC’s enrollment numbers went from 3,846 to 4,262. Matt G. asked Kristine Parker, Family Service Program Services Manager, to provide an overview on enrollment for the board. She informed the board that staff are monitoring the waitlist and enrollment numbers on a weekly cycle much more closely. When there is available funds to enroll families staff look to the prioritized waitlist, as provided by the state, to enroll families. Based on the information collected by staff, the ELC is typically able to enroll approximately forty percent of the children that are contacted off the waitlist based on the family’s eligibility. Kristine P. then explained how this is different to what staff have done in the past. Staff are now able to be more responsive and can more effectively enroll children when an opening and funds exist. Kristine P. then answered a number of the board members questions regarding this. The following charts found in the board meeting packet were then reviewed by the board:

Historical Comparison - Total School Readiness Children Served by Month Relative to Prior Years as of October 31, 2013

Unified Waitlist as of December 1, 2013 Matt G. highlighted that there is currently no waitlist in Wakulla, Jefferson and Liberty counties. In relation to the other counties with waitlists, staff will continue to focus on reducing and/or eliminating these waitlists. Matt G. informed the board that the Audit Committee met on December 16, 2013. The ELC has had three audits happening at once, the OEL Programmatic Audit, the OEL Financial Audit and an Independent Audit. The findings were consistent among the three auditors in that the ELC’s policies and procedures need to be tightened up and further developed. Staff plan on working on this over the next year. One of the three audits, the OEL Programmatic Audit, the auditors had their exit interview on December 16, 2013, which went very well. The OEL Financial Audit, went very well as well with only four findings as opposed to the seven findings last year. The independent audit was also very successful, with Jim M. briefly reviewing the findings from this audit. The board will be presented with each of the audit findings at the board’s next meeting on March 25, 2014.

c. Treasurer’s Report Kim Kelling Engstrom provided her Treasurer’s Report to the board. Kim K. highlighted key items in the budget, in particular items that were over and under budget including, training, development and recruitment; dues and subscriptions; supplies and office furniture and equipment. She then went through the analysis of the School Readiness and Voluntary Pre-Kindergarten Budget. Kim K. also informed the board that administration costs are down for both School Readiness and Voluntary Pre-Kindergarten and that overall the budget is where it should be at this point of the fiscal year.

d. Advocacy and Resource Development Committee Dr. Rachel Pienta provided her Chair’s report for the Advocacy and Resource Development Committee. She discussed match with the board. In the past the ELC has usually met match requirements in Leon County and has waived match in the outlying counties. Molly Lord, Community Partnerships Director, reported that for this fiscal year the ELC is on target to meet its match requirements in Leon County. As part of the ELC’s outreach efforts to raise necessary match funds, this year staff created a Match Day. Molly L. thanked the board for their contributions and report that the ELC raised a little under $2,000 in one day towards match. Dr. Rachel P. provided the board with an update on provider outreach efforts, including the newly established Provider Outreach Program. Staff in conjunction with the Advocacy and Resource Development Committee, are going to be working with the Wakulla County Chamber of Commerce and the Wakulla Economic Development Council to put on a luncheon to give sixteen local Wakulla County child care providers with the opportunity to connect with local business leaders. This is the first time that a meeting like this has taken place, and is initially being piloted in Wakulla County before potentially being organized in some of the ELC’s other counties. Currently none of these sixteen providers are members of the Wakulla County Chamber of Commerce so hopefully this luncheon will provide our child care providers with valuable opportunities to get connected to services and support within their community and to enable them to flourish as a small businesses. It will also provide opportunities for the business community to learn more about the necessary services provided by the ELC and the child care providers in their community. Staff are currently working on an agenda for this meeting and hope to schedule a date to have this luncheon sometime in January 2014. It was also shared that the Wakulla County Chamber of Commerce and the Wakulla Economic Development Council will be sharing the cost of this luncheon. Dr. Rachel P. encouraged board members to attend this meeting if their schedule permitted. Dr. Rachel P. discussed social media as an outreach tool with the board. She encouraged staff to ‘like’ the ELC’s Facebook and Twitter pages and to share them with their friends and family to help to raise the ELC’s profile within the community. Social media is such a great tool that is easy and free to use and provides such great public relations for the ELC. One of the board members highlighted that the more people that know about the ELC, our mission and services, the more they are likely to designate their United Way contributions to us. Dr. Rachel P said that she is also going to discuss the use of social media with providers as well. Chair Brown thanked Dr. Rachel P. for everything she has done on the advocacy committee. Kim K. discussed a recent news article highlighting Leon County’s graduation rate increase and some of the surrounding counties graduation rate decreases. Jefferson County had a significant graduation rate decrease, with a graduation rate of 37%. Kim K. spoke to the board and staff on how she feels that this is something that the community needs to be aware of and that the ELC needs to see if there is anything they could be doing as a Coalition and community partner to

work to increase this. Matt G. said that he would work with Kim K. and Dr. Rachel P. to spearhead these efforts. Matt G. highlighted the Summer Camp Splash which is happening on March 8, 2014. Board members were provided with sponsorship information. Molly L. reported that the ELC is $500 short of their $3,000 goal for the Summer Camp Splash. Chair Brown thanked Angel Trejo for his sponsorship contribution. Dr. Rachel P. encouraged other board members to contribute or provide a sponsorship for this upcoming event. A number of board members then offered to contribute. Molly L. also highlighted the upcoming Barnes and Noble book drive, in which they will be donating books to the ELC.

e. Program Policy and Strategy Committee Tara Orlowski provided her Chair’s report for the Program Policy and Strategy Committee. She thanked the committee for their recent review of the ELC’s Bylaws. She informed the board that the majority of the updates to the Bylaws are just statutory reference updates. The committee also included a definition of regular attendance for the purpose of committee and board meetings, a quarterly committee meeting requirement, and added the Advocacy and Resource Development Committee and the Program Policy and Strategy Committee to the list of standing committees. Matt G. informed the board that staff should have more policies for the board’s review by their next meeting on March 25, 2014.

6. Action Items a. Action Item-#2013-15, Approval of Gadsden County Lease

Per the ELC’s procurement policies, the ELC’s Board of Directors is required to approve service and commodity contracts in excess of $24,999. In addition, the Bylaws require board authorization for the Chief Executive Officer to enter into any lease on behalf of the ELC. The ELC’s Gadsden County Service Center is currently located at 233 East Jefferson Street in Quincy, Florida. The current lease with Spindrift-Gadsden Properties, LLC expires on December 31, 2013. The ELC has been a tenant at the above-mentioned location since January 19, 2006. The ELC has found the above-mentioned location to be conducive to the needs of Gadsden County customers and staff. On December 11, 2013, the Finance Committee recommended that the Board approve the Gadsden County Lease. The Board was asked to approve the rental lease. The motion to approve the Gadsden County Lease was made by Jim M. This motion was seconded by Bryan D. This motion was approved.

b. Action Item-#2013-16, Approval of Madison County Lease Per the ELC’s procurement policies, the ELC’s Board of Directors is required to approve service and commodity contracts in excess of $24,999. In addition, the Bylaws require board authorization for Chief Executive Officer to enter into any lease on behalf of the ELC. The ELC’s Madison County Service Center is currently located at 309 SW Range Ave, Madison, Florida. The current lease with Holt L. and Betty Jo Ragans expires on December 31, 2013. The ELC has been a tenant at the above-mentioned location since July 1, 2009. The ELC has found the above-mentioned location to be conducive to the needs of Madison County customers and staff. On December 11, 2013, the Finance Committee

recommended that the Board approve the Madison County Lease. The Board was asked to approve the rental lease. The motion to approve the Madison County Lease was made by Kim K. This motion was seconded by Bryan D. This motion was approved.

Chair Brown thanked Matt G. and staff for everything they have done this past year.

She asked board members to please let us know that if they have any suggestions as we move forward on how can we more effectively serve our children and families and how we can better engage them as board members.

Monesia B. asked if anyone else had any discussion items. No additional items were presented. Monesia B. adjourned the meeting at 12:55pm. Minutes recorded by: Megan Gocs, Executive Coordinator Board Approval Date: _____________________________________ Board Chair’s Initials: _____________________________________ Board Secretary Initials:___________________________________ A digital recording of this meeting is available at the office of the Early Learning Coalition of the Big Bend Region, Inc.

Legislative Link A legislative update provided by the United Way of Florida

HHoouussee EEdduuccaattiioonn CCoommmmiitttteeee PPaasssseess EEaarrllyy LLeeaarrnniinngg BBiillll On February 20, after work-shopping the bill twice and improving it substantially based on input from all interested parties, the House Education Committee chaired by Representative Maureen O’Toole passed HB 7069. The comprehensive early learning health and safety legislation addresses myriad issues intended to ensure that children in state-funded care are in safe and healthy environments. The 75-page bill addresses numerous issues. Among others, it:

Changes the name of the “School Readiness Program” to the "Child Care and Development Program";

Changes the term "family day care home" to "family child care home";

Provides that children birth to school entry in the child welfare system must attend early education or child care programs five days a week if required in their case plans;

Provides that non-public schools delivering early learning programs must substantially comply with minimum child care health and safety standards, and authorizes the state or local licensing agency to inspect and enforce those standards through administrative or judicial action;

Prohibits the owner of a child care facility, family day care home, or large family child care home from transferring ownership to a relative if the operator has had his or her license suspended or revoked by the Department of Children and Families (DCF);

Requires DCF to adopt rules establishing criteria and procedures for abbreviated inspections and inspection schedules which provide for both announced and unannounced inspections of child care facilities, family day care homes, and large family child care homes;

Requires licensed or registered family day care homes to conspicuously display their licenses or registrations in an area viewable by all parents during hours of operation;

Requires family day care homes to maintain proof of a written plan to identify a competent adult who has met the screening and training requirements of DCF to serve as a designated substitute;

Requires any individual serving as a substitute for the operator to successfully complete an approved 30-clock-hour introductory course in child care;

Provides that licensed large family child care homes be charged utility rates accorded to a residential home, and may not be charged commercial utility rates;

Allows early learning coalitions to authorize private kindergarten providers to determine student eligibility and enrollment for the VPK program, and spells out requirements for the provider in doing so;

Requires early learning coalitions to cooperate with the Office of Early Learning (OEL) and the Child Care Services Program Office of DCF to reduce paperwork and to avoid duplicating interagency activities, health and safety monitoring, and acquiring and composing data pertaining to child care training and credentialing;

Requires that, beginning January 1, 2016, child care personnel employed by private prekindergarten and school readiness providers must be at least 18 years of age and have a high school diploma or

http://www.myfloridahouse.gov/Sections/Bills/billsdetail.aspx?BillId=52409&SessionId=75

Legislative Link A legislative update provided by the United Way of Florida

equivalent, unless the personnel are not responsible for supervising children or are under direct supervision and are not counted for the purposes of computing personnel-to-child ratios;

Provides that charter schools providing the prekindergarten program are considered part of the school district’s overall prekindergarten program and must meet all health and safety requirements applicable to prekindergarten programs delivered by public schools;

Requires private prekindergarten providers and school readiness providers to notify the parent or guardian of each child in care if it is cited for a class I violation;

Provides that the purpose of the Early Learning Advisory Council (ELAC) is to provide written input to the executive director of the OEL on early learning best practices, effective program administration, effective and efficient use of local, state, and federal funds, professional development training programs and coalition plans;

Provides that ELAC shall meet at least quarterly at the call of the executive director;

Provides that OEL shall provide staff and administrative support for ELAC as determined by the executive director;

Requires OEL, by July 1, 2015, to develop and implement an online training course on the performance standards for school readiness provider child care personnel;

Specifies that siblings of children in the school readiness program from working families that are economically disadvantaged are eligible until the beginning of the school year in which the sibling enters the 6th grade;

Clarifies a child who has special needs is a priority for receiving school readiness services if the child is birth to 3 years of age with an Individualized Family Support Plan receiving early intervention services;

Provides that when a child who is in the school readiness program no longer meets school readiness eligibility requirements, the early learning coalition must give the parents a two week notice of impending disenrollment;

Specifies that a school readiness provider that would otherwise be ineligible to provide services for 12 months after being cited for a class I violation may remain eligible to deliver the program if the OEL determines that the violation was reported by the provider and the employee responsible for the violation was terminated;

Requires OEL to develop and implement best practices for providing parental notifications in a parent’s native language to a parent whose native language is a language other than English;

Requires OEL to conduct a two-year pilot project to study the impact of assessing early literacy skills of Voluntary Prekindergarten Education Program participants who are English Language Learners, in both English and Spanish; and

Requires OEL to hire a general counsel and an inspector general, who will report directly to the executive director of OEL.

For additional information, please contact the United Way of Florida at: (850) 488-8276.

EARLY LEARNING COALITION OF THE BIG BEND REGION, INCTOTAL SR CHILDREN SERVED BY MONTH RELATIVE TO PRIOR YEARS AS OF FEBRUARY 28, 2014

Age Gadsden Jefferson Leon Liberty Madison Taylor Wakulla

Current

Week Prior Week

0 7 1 105 0 2 1 3 119 114

1 4 0 105 0 3 1 1 114 117

2 3 1 74 0 2 1 1 82 85

3 2 1 67 0 0 2 1 73 73

4 6 0 55 0 2 0 2 65 70

5 2 0 81 0 0 4 1 88 88

6 2 0 69 0 2 0 0 73 73

7 3 0 61 0 3 1 1 69 64

8 2 0 50 0 2 1 0 55 61

Total 0‐8 31 3 667 0 16 11 10 738 745

9 0 0 59 0 1 0 1 61 60

10 1 0 38 0 3 0 0 42 38

11 0 0 31 0 1 0 0 32 36

12+ 0 0 12 0 0 0 0 12 12

Total 9‐12+ 1 0 140 0 5 0 1 147 146

Total All 32 3 807 0 21 11 11 885 891

7. WAITLIST AS OF 03/09/2014

0

1000

2000

3000

4000

5000

6000

July

Au

g

Sep

t

Oct

No

v

Dec

Jan

Feb

Mar

ch

Ap

ril

May

Jun

e

Historical Comparison - Children Served by Month

FY 11/12

FY 12/13

FY 13/14

Early Learning Coalition of the Big Bend Region, Inc.FY 2013‐14 Budget to Actual Schedule of Functional Expenses

NOTES

BudgetJuly 1, 2013

Actual Expenses July 2013 - Jan 2014

BudgetJuly 1, 2013

Actual Expenses July 2013 - Jan 2014

% of Year % of BudgetOver/Under

001 School Readiness Direct Care Slots $ 12,455,744 $ 6,970,199 58% 55.96% On Target

002 VPK Direct Care Slots $ 6,963,900 $ 3,857,256 58% 55.39% On Target

003 Salaries/Benefits/401K/Taxes 2,295,967$ 1,431,558$ 191,893$ 60,797$ 58% 59.99% On Target

004 Training/Development/Recruitment 8,197$ 2,502$ 303$ 76$ 58% 30.33% UnderUtilization of Free recruitment services from WFP. Pending Staff training costs.

005 Professional Services 64,133$ 30,527$ 2,367$ 1,138$ 58% 47.62% On TargetTiming of Audit Firm invoices

006 Contracted Services 65,000$ 16,769$ 0.00 0.00 58% 25.80% UnderPending Taylor County School Board Invoices

007 Quality Initiatives 108,054$ 29,209$ 0.00 0.00 58% 27.03% UnderPending Provider Conference held March 2014

008 Occupancy 455,789$ 269,697$ 38,094$ 12,044$ 58% 57.05% On Target

009 Insurance 36,915$ 14,401$ 3,085$ 646$ 58% 37.62% UnderTiming of Policy Renewal

010 Advertising and Public Outreach 20,000$ 3,009$ 0.00 350$ 58% 16.79% UnderTiming of VPK ads and publications. Pending online VPK launch materials.

011 Dues/Subscriptions and Meeting Exp 6,922$ 6,704$ 578$ 714$ 58% 98.91% OverTiming of payment on AELC Membership

012 Supplies and Materials 27,686$ 11,477$ 2,314$ 805$ 58% 40.94% UnderShareFile Implementation reduced paper, envelopes, labels, etc.

013 Technology Maintenance 137,507$ 67,720$ 11,493$ 2,401$ 58% 47.06% On Target

014 Equipment Rental and Maintenance 62,755$ 27,150$ 5,245$ 1,209$ 58% 41.70% On Target

015 Office Furniture and Equipment 41,529$ 32,476$ 3,471$ 2,123$ 58% 76.89% Over Initial equip. needed for ShareFile Implementation and TSG Trainings

016 Travel 49,835$ 14,780$ 4,165$ 958$ 58% 29.14% UnderTiming of conferences and workshops

017 Printing and Postage 4,614$ 2,382$ 386$ 268$ 58% 53.00% UnderImplementation of ShareFile (Provider Portal)

TOTAL 15,840,647$ 8,930,561$ 7,227,295$ 3,940,785$ 58% 55.80% UnderScheduling of conferences, workshops and events

YTD ANALYSISSCHOOL READINESS VOLUNTARY PREKINDERGARTEN

CATEGORY OF SPENDING FY 13 ‐ 14 Award (per Notice of Award)

Actual Thru

01/31/14

Current

Earmark

Earmarks/

Restrictions

AWARD AMOUNT 15,840,647$

DIRECT SERVICE COST (1) 12,455,744$ 6,970,199$ 78.05% Minimum 78%

NON SLOT DOLLARS:

Admin Cost 769,223$ 382,566$ 4.28% Maximum 5%

Non Direct Cost 1,311,608 885,056 9.91%

Quality Cost 879,464 466,654 5.23% Minimum 4%

Childcare Resource & Referral Cost 424,607 226,086 2.53%

TOTAL NON SLOT DOLLARS 3,384,902$ 1,960,362$ 21.95% Maximum 22%

(1) There are no CCEP dollars for FY 2013‐2014.

ANALYSIS OF SCHOOL READINESS BUDGET

For the Fiscal Year Ending June 30, 2014

78%

4%

10%

5% 3%School Readiness Earmarks as of January 31, 2014

DIRECT SERVICE COST(1)

Admin Cost

Non Direct Cost

Quality Cost

Childcare Resource &Referral Cost

ANALYSIS OF SCHOOL READINESS DIRECT SERVICE COST

AS OF JANUARY 31, 2014

CATEGORY GADSDEN JEFFERSON LEON LIBERTY MADISON TAYLOR WAKULLA TOTAL

DIRECT SERVICE COST

Working ‐ Low Income 839,747 226,291 2,650,463 31,146 296,669 214,024 217,041 4,475,381

TANF Assistance 4,624 1,935 21,098 ‐ 674 377 563 29,271

Transitional Care 267,523 50,182 1,032,884 2,829 41,087 39,086 51,705 1,485,296

Protective Services 75,975 34,508 605,271 9,036 12,868 29,093 57,769 824,520

Gold Seal 15,204 2,079 125,385 1,785 2,177 6,514 2,587 155,731 CCEP ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

TOTAL DIRECT SERVICE COST 1,203,073 314,995 4,435,101 44,796 353,475 289,094 329,665 6,970,199

# of Children Paid Served 704 164 2,529 24 195 179 217 4,012

64%

1%

21%

12%

2%

Direct Service Allocation by Eligibility

Category

Working ‐Low Income

TANFAssistance

TransitionalCare

ProtectiveServices

Gold Seal

CCEP

17%4%

64%

1% 5%4% 5%

Direct Service Allocation by County

Gadsden

Jefferson

Leon

Liberty

Madison

Taylor

Wakulla

CATEGORY OF SPENDING FY 13 ‐ 14 Award

(per Notice of Award)

Actual Thru

1/31/14

Current

Earmark

Earmarks/

Restrictions

AWARD AMOUNT 7,227,295$

DIRECT SERVICE COST 6,963,900$ 3,857,256$

NON SLOT DOLLARS:

Admin Cost 96,533$ 20,204$

Enrollment Cost 105,869 43,481

Monitoring Cost 60,993 18,720

TOTAL NON SLOT DOLLARS 263,395$ 82,405$ 2.14% Maximum 4%

VPK OUTREACH AND AWARENESS 21,492$ 1,124$

ANALYSIS OF VOLUNTARY PREKINDERGARTEN BUDGET

For the Fiscal Year Ending June 30, 2014

Voluntary Prekindergarten Spending Allocation as of January 31, 2014

DIRECT SERVICE COST

Admin Cost

Enrollment Cost

Monitoring Cost

2.14% combined

93.40%

ANALYSIS OF VOLUNTARY PREKINDERGARTEN DIRECT SERVICE COST

AS OF JANUARY 31, 2014


DIRECT SERVICE COST 572,867 65,692 2,569,679 86,544 160,536 146,735 255,203 3,857,256

# of Children Paid Served 453 50 1,936 71 112 113 135 2,870

15% 2%

67%

2%

4% 4%

6%

VPK Direct Service Cost by County

Gadsden

Jefferson

Leon

Liberty

Madison

Taylor

Wakulla

Bylaws of the Early Learning Coalition of the Big Bend Region, Inc.

KEY: COMMITTEE RECOMMENDATIONS ATTORNEY RECOMMENDATIONS

BYLAWS OF THE EARLY LEARNING COALITION

OF THE BIG BEND REGION, INC.

Article I IDENTITY AND PRINCIPAL OFFICE

1.1 IDENTITY

These are the Bylaws for the Early Learning Coalition of the Big Bend Region, Inc. (“Early Learning Coalition” or “ELC”), a Florida not-for-profit corporation organized under the laws of the State of Florida.

1.2 PRINCIPAL OFFICE

The Principal Office of the Early Learning Coalition shall be at 1940 North Monroe Street, Suite 70, Tallahassee, Florida 32303, or at such other place as may be subsequently designated by the Board of Directors.

Article II PURPOSE

2.1 PURPOSE

The Early Learning Coalition was created for the purpose of implementing, coordinating, and administering the provisions of Part V (Voluntary Prekindergarten Education Program) and Part VI (School Readiness Program) of Chapter 1002, Florida Statutes (“Fla. Stat.”), in Gadsden, Jefferson, Leon, Liberty, Madison, Taylor and Wakulla Counties (“ELC Service Area”). The ELC further serves as the community child care coordinating agency for the ELC Service Area.

Article III MEMBERSHIP

3.1 NUMBER OF MEMBERS

The Board of Directors of the Early Learning Coalition (“Coalition Board” or “ELC Board”) shall have at least fifteen (15) but not more than thirty (30) members, or such other range of minimum and maximum members established by Florida law.

3.2 STATUTORY MANDATED MEMBERS

Membership on the ELC Board shall include the chair and two other members appointed by the Governor who each must meet the same qualifications as private sector members appointed by the ELC Board. Membership on the ELC Board must also include members required to be appointed pursuant to Florida Statute 1002.83(4) and Florida Statute 1002.83(5) (“Statutory Mandated Members”). In the event that a Statutory Mandated Member is removed by the Governor (applicable to those members appointed by the Governor), or ceases to represent the entity by whom they were appointed or ceases to hold a position eligible for membership, the member shall provide written notification to the chair of the ELC Board and the seat shall remain vacant until a new designee is appointed.

3.3 OPTIONAL MEMBERS

The ELC Board may, but are not required, to appoint up to two (2) optional members per county in the ELC Service Area subject to the following:

a. Member must reside in or represent a legal entity located in the county from which the member is appointed;

b. Member and their relatives must not have a substantial financial interest in the design or delivery of any Voluntary Prekindergarten Education Program (“VPK Program”) or School Readiness Program;


c. Member appointment must not represent a legal entity already represented by another member of the ELC Board;

d. A member may be appointed from a Family Child Care Home as long as they are not already represented on the ELC Board;

e. A member may be appointed from a non-profit child care provider. Notwithstanding Section 112.3134, Fla. Stat. this member may have a substantial interest in the design or delivery of the VPK Program or the coalition’s School Readiness Program; and

f. The ELC Board may choose to appoint a parent of a child enrolled in the VPK or School Readiness Program.

3.4 PRIVATE SECTOR APPOINTEES/DISCRETIONARY MEMBERS

More than one-third (1/3) of the ELC Board members, including the members appointed by the Governor, must be private-sector business members who do not have, and none of whose relatives as defined in Section 112.3134, Fla. Stat., has a substantial financial interest in the design or delivery of the VPK Program or the School Readiness Program. To meet this requirement, the Board must appoint non-Governor appointed members based on criteria defined by the Office of Early Learning (see Chapter 1002.83(5), Fla. Stat.).

3.5 CONFLICT OF INTEREST Each voting member of the ELC Board is a local public officer who must abstain from voting when a voting conflict exists. It is the duty of each member to make known through verbal and written communication to the Chair when a conflict exists and to refrain from voting and/or participating in actions to be taken on the item for which they have a conflict of interest. For the purpose of this subsection, the term participate means any attempt to influence the decision by oral or written communication.

3.6 MEMBERSHIP TERMS

Subject to the limitations set forth in Section 1002.83(11) Fla. Stat., private sector members appointed by the Governor shall serve for the term specified by the Governor. Other board member terms must be staggered and of uniform length that does not exceed four (4) years per term. The board has the option to renew the member’s term for four additional years for a maximum of two consecutive terms. After a Statutory Mandated Member from one (1) county has served the maximum of two (2) consecutive terms, the ELC may provide for the rotation of the membership position among the other counties served by the ELC.

3.7 MEMBERSHIP a. ELC Board membership requires a commitment of time including, but not limited to, regular attendance at all

ELC Board meetings. Regular attendance is defined as no more than one unnotified absence. (See Section 3.7(c) of By Laws).

b. ELC Board membership requires that each member serve on at least one (1) committee. This commitment would require that the member educate themselves on the issues to be addressed by the committee appointed to.

c. ELC Board members are expected to notify the Chief Executive Officer prior to any Committee or Board meeting that the member is unable to attend.

d. The member’s term of service will begin upon approval by the ELC Board. e. An ELC Board member may terminate his/her service by submitting a written resignation to the Chair. The

resignation will be deemed effective upon receipt. When a member’s term of service has not been completed, every attempt will be made for the replacement to be from the county of the original appointment.

f. Change of employment or status may serve as reason for membership termination. g. If a member is going to be absent, they may send a representative to ELC meetings, but that representative does

not have voting privileges. However, when a district administrator for the Department of Children and Family Services appoints a designee to the ELC Board, the designee becomes the voting member of the ELC Board, and any individual attending in the designee’s place, including the district administrator, does not have voting privileges.

Article IV

MANAGEMENT 4.1 POWERS AND DUTIES

a. Part V (Voluntary Prekindergarten Education Program) and Part VI (School Readiness Program) of Chapter 1002, Fla. Stat., outline the powers, management, and control of the ELC Board.

b. Members of the ELC Board will conduct themselves in an ethical and professional manner and are subject to Sections 112.313, 112.3135, and 112.3143, Fla. Stat.


c. The ELC Board may develop and establish policies and procedures, as needed, to support these Bylaws and to clarify any ambiguity as to their implementation.

4.2 VOTING

a. All members shall have equal voting rights and privileges. b. The act of a majority of the voting members present at a meeting at which a quorum has been established

shall be the act of the full ELC Board. c. The continuous presence of a majority of the voting membership of the ELC Board shall constitute a

quorum required to conduct the business of the ELC. d. All members participating by teleconference will be included in the majority of voting members necessary

to constitute a quorum for the transaction of business.

4.3 MEETINGS Early Learning Coalition Staff will post notice of all ELC Board and Committee Meetings in the manner prescribed in Section 286.011, Fla. Stat. The Chair shall determine the agenda and the order of business at all ELC Board meetings but shall, at a minimum, include a designated time for public comment. The ELC Board Meetings will be scheduled as needed in order to conduct the ELC’s business but will be held at least once per quarter. Additional, reasonable notification of meeting dates and time will be made in a form and manner considered to be the most effective. An annual meeting of the ELC Board will be held each year. The primary function of this meeting will be the election of and the installation of new officers; however, regular business items may be discussed as well. The Chair may call a special or emergency meeting at his/her discretion. Advance notice will be given, but not less than twenty-four (24) hours. Notice of special or emergency meetings shall be provided in a form and manner considered to be the most effective. Minutes of all ELC Board and Committee meetings shall be recorded and filed for future reference.

4.4 PARLIAMENTARY AUTHORITY Robert’s Rules of Order, newly revised (Robert’s Rules”), shall govern the ELC Board in all cases where applicable. When Robert’s Rules are in conflict with these Bylaws or any special rules of order the ELC Board may then adopt, the ELC’s Bylaws or special rules of order will supersede. ELC Board and Committee meetings will be open and accessible to the public and held in accordance with Section 286.011, Fla. Stat.

Article V OFFICERS

5.1 ELECTION AND TERM OF OFFICE

a. ELC Board members in good standing shall be eligible for nomination and election to offices of the ELC Board not appointed by the Governor.

b. Election of officers not appointed by the Governor will be held at the annual meeting. Election is by majority vote of attending members.

c. The Chair shall appoint a Nominating Committee for the purpose of preparing an official slate of nominees for submission to the ELC Board. Nominations may be made from the floor with prior consent of the nominee.

d. Each elected officer shall be installed at the end of the annual meeting where they shall serve for a term of one (1) year or until a successor is duly elected. Officers may serve in the same position for a maximum of three (3) consecutive years excluding appointments made by the Governor.

e. If an office is vacated prior to the completion of a one (1) year term, a member in good standing may be appointed, with their consent, by the Chair to fill the vacancy until the term ends.

5.2 DUTIES OF THE OFFICERS The officers of the ELC Board shall consist of the following:

a. Chair: The Chair, appointed by the Governor, shall preside at all ELC Board and Executive Committee meetings. The Chair, or his/her designee, shall represent the ELC Board in all official business with the Florida Department of Education (the “Funding Agency”) and performing other duties as assigned by the ELC Board. The Chair shall appoint, with the approval of the ELC Board, chairpersons of all committees. The Chair has the responsibility to lead the ELC Board in effectively and efficiently accomplishing its vision and mission, and the requirements of Part V and Part VI, Chapter 1002, Fla. Stat.

b. Vice-Chair: The Vice-Chair shall perform the duties of the Chair when the Chair is absent or the position is vacated and have such other responsibilities as may be designated by the Chair. The Vice-Chair has the responsibility to support the Chair in leading the ELC Board.


c. Secretary: The Secretary shall keep, or cause to be kept, appropriate signed minutes of ELC Board and Committee meetings. The Secretary shall act for the Chair in the event that both Chair and Vice-Chair are absent. The Secretary has the responsibility to ensure that all key issues and decisions are documented in a manner that facilitates communication and follow-through.

d. Treasurer: The Treasurer shall review the financial records of the ELC, including all funds received and disbursed. The Treasurer will serve as the Chair of the Finance Committee and perform other assigned financial duties, as necessary. The Treasurer has the responsibility in ensuring ELC financial accountability and compliance.

Article VI

COMMITTEES 6.1 STANDING COMMITTEES

a. Staff of the ELC will post notice of all committee meetings pursuant to Section 286.011, Fla. Stat. b. Standing Committees may be established by the ELC Board Chair to assist in its functions. The powers and

authority of any such committees will be determined by the full ELC Board. c. The ELC Board Chair shall appoint a committee Chair to serve for one (1) year.

d. Each committee shall consist of the appointed Chair and a minimum of three (3) additional members of the ELC Board. Additionally, the Committee Chair may appoint community representatives making up no more than twenty-five percent (25%) of committee membership, who, subject to Section 6.1e. of these Bylaws, shall be voting members of the committee.

e. In the event that the ELC Board delegates to a committee its authority to take final action on a particular matter, only members of the committee that are members of the ELC Board may vote on the action.

f. Each committee shall schedule a meeting no less than quarterly, and in the event of additional meetings, will notify all ELC Board members of the date, time and location.

g. Every effort will be made to ensure that all counties have representation on each committee. h. Minutes of all committee meetings shall be recorded and kept on file for review. 6.2 EXECUTIVE COMMITTEE

The Executive Committee will be comprised of the ELC Board Officers and the Standing Committee Chairs. This Committee will be responsible for the oversight and administrative functions of the ELC Board as well as responsible for any and all issues affecting the ELC in between regular ELC Board meetings. The Executive Committee is empowered to take action on behalf of the ELC Board. The ELC Board shall be notified of any and all actions taken by the Executive Committee and the ELC Board shall have the discretion to review actions taken by the Executive Committee on the ELC Board’s behalf at the next ELC Board meeting.

The Executive Committee will hear and decide any appeals and make administrative decisions related to client compliance issues and provide a full report to the ELC Board. The Committee will also have the responsibility of reviewing client grievances and make reports on provider non-compliance issues who have signed the ELC’s Provider Agreement and bringing recommendations to the full ELC Board.

The Executive Committee will be responsible for personnel issues related to the Chief Executive Officer, including but not limited to: recruitment, salary and benefit package, yearly evaluation, and compliance with any needed improvement plan. Authority to hire and terminate the Chief Executive Officer is retained by the ELC Board.

6.3 FINANCE COMMITTEE

The ELC Board Chair shall appoint the Finance Committee each year which shall consist of a Chair plus at least three (3) Coalition Board members. This Committee will provide regular monitoring of financial and utilization reports. The Finance Committee shall also provide budgetary and fiscal policy oversight and support the Treasurer in ensuring ELC’s financial accountability and transparency.

6.4 AUDIT COMMITTEE

The ELC Board Chair shall appoint the Audit Committee each year which shall consist of a Chair and at least three (3) ELC Board members. This Committee will work to procure and engage an auditor for the annual audit. The Audit Committee will also receive the audit report, evaluate the performance of the auditor and submit the report to the full ELC Board for approval.

6.5 PROGRAM, POLICY AND STRATEGY COMMITTEE The ELC Board Chair shall appoint the Program, Policy and Strategy Committee each year which shall consist of a Chair and at least three (3) ELC Board members. This Committee will develop and review program policies to ensure compliance with regulatory requirements.


6.6 ADVOCACY AND RESOURCE DEVELOPMENT COMMITTEE The ELC Board Chair shall appoint the Advocacy and Resource Development Committee each year which shall consist of a Chair and at least three (3) ELC Board members. This Committee will develop an advocacy plan, approve resource development strategies and recommend fund development policies.

6.7 AD HOC COMMITTEES An ad hoc committee may be established by the ELC Board or the ELC Board Chair to address specific, short-term ELC Board issues. All ad hoc committees will be comprised of members of the ELC Board and may include members of the community. Ad hoc committees must include at least three (3) members of the ELC Board. The duties of each ad hoc committee will be determined at the time of establishment. The committees will be responsible for bringing recommendations to the ELC Board for approval.

Article VII BOOKS AND RECORDS

7.1 BOOKS AND RECORDS The ELC Board acts as its own Fiscal Agent; however, ELC staff shall assist the ELC Board by maintaining all

financial records in a manner consistent with best management practices and applicable state and federal law. The ELC staff will make records available for inspection to any member of the ELC Board or the public at a reasonable time and under reasonable conditions as provided in Section 119.07, Fla. Stat.

Article VIII

FINANCIAL MANAGEMENT 8.1 FISCAL YEAR

The fiscal year of the organization shall begin July 1 and end on June 30.

8.2 ANNUAL AUDIT An audit of the books and records of the ELC Board, serving as its own fiscal agent, shall be conducted annually by a certified public accountant. The audit report shall be presented to the ELC Board members and the Funding Agency within thirty (30) days of its completion.

8.3 CONTRACTS

The ELC Board Chair or Chief Executive Officer may enter into any contract or execute and deliver any instrument in the name of and on behalf of the ELC Board, as authorized by the ELC Board.

Article IX IMPLEMENTATION AND AMENDMENTS

9.1 IMPLEMENTATION

These Bylaws shall become effective immediately upon adoption by majority vote of the ELC Board. The ELC Board’s interpretation of the Bylaws shall be considered the correct interpretation when reached by majority vote.

9.2 AMENDMENTS These Bylaws may be altered, amended or repealed by the affirmative vote of a majority of the ELC Board. After review by the Executive Committee, the proposed amendments shall be distributed to the ELC Board members at least seven (7) days prior to the ELC Board meeting at which the proposed amendments are to be presented for adoption. These Bylaws are a part of the ELC Board’s work plan dated June 2006 and any amendments to them constitute an amendment to the plan.


Article X INDEMNIFICATION OF MEMBERS

10.1 INDEMNIFICATION

All persons who were, now are, or shall be directors, officers, employees, volunteers or committee members of the Early Learning Coalition including, but not limited to, those persons serving on the Board of Directors (hereinafter “Indemnified Party”) shall be indemnified, supported, defended and held harmless from any and all civil actions arising from a complaint for damages or injuries suffered as a result of any act or omission of action of ELC or any Indemnified Party, present or former, arising out of and in the scope of his or her employment or function. Further, for purposes of tort liability, the ELC Board members, individually and collectively, shall be governed by Section 768.28, Fla. Stat. ELC’s indemnification set forth herein shall be the subject of a resolution adopted by the ELC Board setting forth any limits or conditions to said indemnification.

ANALYSIS OF MATCH DEVELOPMENT

AS OF JANUARY 2014


Required Match 94,011.42 25,408.74 226,452.00 13,669.62 43,379.40 30,497.10 23,658.42 457,076.70

Waived 81,847.17 22,538.82 0.00 11,664.46 36,496.00 18,330.41 17,828.42 188,705.28

Received 12,164.25 2,869.92 157,971.97 2,005.16 6,883.40 12,166.69 5,830.00 199,891.39

TOTAL $94,011.42 $25,408.74 $157,971.97 $13,669.62 $43,379.40 $30,497.10 $23,658.42 $388,596.67

54%

22%

24%

Direct Amount by Category

Required

Waived

Received

32%

68%

Leon County Match Received

Required

Received

Projected Match Requirement 226,452.00$ Match Waived ‐$ Total Match Requirement 226,452.00$

Projected Actual

Cash Match SourcesCHSP County of Leon* 67,500.00$ 40,000.00$ United Way ‐ Leon* 22,499.97$ 12,072.29$ Direct SR Slot Cash 40,000.00$ 7,052.23$ Indirect SR Cash Match 2,500.00$ 628.83$

TOTAL 132,499.97$ 59,753.35$

In‐Kind Match SourcesMy First Books 45,000.00$ 36,138.00$ Volunteers ‐$ 12,255.61$ Donated Space 81,568.00$ 49,825.01$

TOTAL 126,568.00$ 98,218.62$

GRAND TOTAL 259,067.97$ 157,971.97$

Projected Match Requirement 94,011.42$ Projected Match Requirement 25,408.74$ Match Waived 81,847.17$ Match Waived 22,538.82$ Total Match Requirement 175,858.59$ Total Match Requirement 47,947.56$

Projected Actual Projected Actual

Cash Match Sources Cash Match Sources United Way ‐ Gadsden* 20,499.33$ 12,164.25$ United Way ‐ Jefferson* 4,925.73$ 2,869.92$ Indirect SR Cash Match 5,000.00$

TOTAL 25,499.33$ 12,164.25$ TOTAL 4,925.73$ 2,869.92$

GRAND TOTAL 25,499.33$ 12,164.25$ GRAND TOTAL 4,925.73$ 2,869.92$



Cash Match Sources Cash Match Sources United Way ‐ Liberty* 3,350.04$ 2,005.16$ United Way ‐ Madison* 11,799.96$ 6,883.40$

TOTAL 3,350.04$ 2,005.16$ TOTAL 11,799.96$ 6,883.40$




Cash Match Sources Cash Match Sources United Way ‐ Taylor * 20,000.04$ 11,666.69$ United Way ‐ Wakulla* 9,999.96$ 5,830.00$ County of Taylor* 2,000.00$ 500.00$ TOTAL 22,000.04$ 12,166.69$ TOTAL 9,999.96$ 5,830.00$


LEON COUNTY

GADSDEN COUNTY

MATCH DEVELOPMENT REPORT

*Denotes grant funds disbursed on Federal Gov't Calendar Year Schedule (October through September)

LIBERTY COUNTY

TAYLOR COUNTY

JEFFERSON COUNTY

MADISON COUNTY

WAKULLA COUNTY

Financial Statementsand Supplementary Information

Early Learning Coalition of the Big Bend Region, Inc.

Years ended June 30, 2013 and 2012with Report of Independent Auditors


Financial Statementsand Supplementary Information

Years ended June 30, 2013 and 2012

Contents

Report of Independent Auditors................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1

Financial Statements

Statements of Financial Position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................4Statements of Activities and Changes in Net (Liabilities) Assets................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................5Statements of Cash Flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................6Notes to Financial Statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................7

Other Financial Information

Schedule of Functional Expenses................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................13

Other Reports

Report of Independent Auditors on Internal Control Over FinancialReporting and on Compliance and Other Matters Based on anAudit of Financial Statements Performed in Accordance withGovernment Auditing Standards................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................14

Report of Independent Auditors on Compliance for Each MajorProgram and on Internal Control Over Compliance Required byOMB Circular A-133 and Chapter 10.650, Rules of the AuditorGeneral................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................16

Schedule of Expenditures of State Financial Assistance and FederalAwards................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................18

Schedule of Findings and Questioned Costs Relating to StateFinancial Assistance and Federal Awards................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................19

1

Report of Independent Auditors The Board of Directors of Early Learning Coalition of the Big Bend Region, Inc. Report on the Financial Statements We have audited the accompanying financial statements of Early Learning Coalition of the Big Bend Region, Inc. (the Coalition) which comprise the statements of financial position as of June 30, 2013 and 2012, and the related statements of activities and changes in net (liabilities) assets, and cash flows for the years then ended and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Page Two

2

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of Early Learning Coalition of the Big Bend Region, Inc., as of June 30, 2013 and 2012, and the respective changes in its net assets and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Coalition’s basic financial statements. The schedule of functional expenses is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Coalition. The accompanying schedule of expenditures of state financial assistance and federal awards and schedule of findings and questioned costs relating to state financial assistance and federal awards are presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter 10.650, Rules of the Auditor General, State of Florida are not a required part of the basic financial statements. The information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Page Three

3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2013 on our consideration of the Coalition’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 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 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 Coalition’s internal control over financial reporting and compliance.

Tallahassee, Florida December 20, 2013


Statements of Financial Position

June 30,2013 2012

AssetsCurrent assets:

Cash $ 682,679 $ 765,094Accounts receivable 613,549 558,026Prepaid expenses 13,461 11,045

Total current assets 1,309,689 1,334,165Property and equipment, net 116,755 131,987Total assets $ 1,426,444 $ 1,466,152

Liabilities and net (liabilities) assetsCurrent liabilities:

Direct child care services payable $ 1,064,530 $ 1,073,837Accounts payable and accrued expenses 354,883 347,485Unearned revenue 20,016 -

Total liabilities 1,439,429 1,421,322

Net (liabilities) assets:Unrestricted (12,985) 44,830

Total liabilities and net assets $ 1,426,444 $ 1,466,152

See accompanying notes.

4


Statements of Activities and Changes in Net (Liabilities) Assets

Years ended June 30,2013 2012

Revenues:Program revenue $ 21,077,544 $ 24,080,251Local match revenue 179,828 162,893In-kind contributions 139,629 183,305Miscellaneous 24,095 45,739

Total revenues 21,421,096 24,472,188

Expenses:Program 20,601,633 23,905,114General and administrative expenses 877,278 662,353

Total expenses 21,478,911 24,567,467

Change in unrestricted net (liabilities) assets (57,815) (95,279)

Net assets at beginning of year 44,830 140,109

Net (liabilities) assets at end of year $ (12,985) $ 44,830


5


Statements of Cash Flows

Years ended June 30,2013 2012

Operating activitiesChange in unrestricted net (liabilities) assets $ (57,815) $ (95,279)Adjustments to reconcile to net cash (used in) provided

by operating activities:Depreciation 62,988 82,614Loss on disposal of assets - 4,941Changes in operating assets and liabilities

Accounts receivable (55,523) 1,214,706Prepaid expenses (2,416) 2,070Direct child care services payable (9,307) (600,718)Accounts payable and accrued expenses 7,398 (322,514)Unearned revenue 20,016 -

Net cash (used in) provided by operating activities (34,659) 285,820

Investing activitiesPurchases of equipment (47,756) (23,545)Net cash used in investing activities (47,756) (23,545)

Net (decrease) increase in cash (82,415) 262,275

Cash at beginning of year 765,094 502,819

Cash at end of year $ 682,679 $ 765,094


6


Notes to Financial Statements

Years ended June 30, 2013 and 2012

1. Summary of Significant Accounting Policies

Nature of Business

The Early Learning Coalition of the Big Bend Region, Inc. (the Coalition) was established toprepare preschool children to enter kindergarten ready to learn, as measured by criteriaestablished by the state of Florida. Under Florida Statute, Section 411.01, the Coalition isrequired to develop and implement a plan for comprehensive, accessible, affordable, and high-quality early education and child care services for children, birth to age five, in Leon, Gadsden,Jefferson, Liberty, Madison, Taylor, and Wakulla counties in the state of Florida. The Coalitionis primarily supported by grants from the state of Florida passed through from the Department ofHealth and Human Services.

The Coalition is governed by its twenty-five member Board of Directors, of which nine areappointed under criteria established in Florida Statutes, Section 411.01.

Basis of Presentation

The Coalition uses the accrual basis of accounting. The financial statements have been preparedin accordance with accounting principles generally accepted in the United States of America. Thesignificant accounting policies are described below.

Cash

Cash consists of demand deposits with a financial institution. The financial instruments exposedto concentrations of credit risk consist primarily of its cash. Deposits with financial institutionsare insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.Bank deposits at times may exceed federally insured limits. The Coalition has not experiencedany losses in such accounts.

The Coalition has entered into a sweep agreement with the financial institution in which itsdemand deposit accounts are maintained. Under the terms of the agreement, balances in excessof $250,000 in the operating account are swept daily into a money market account. Interestearned on funds swept into the money market account was .30% at June 30, 2013.

Grants Receivable

Receivables are recorded by the Coalition for funds to be received from various federal and stategrants as revenues are earned. An allowance for uncollectible grant receivables has not beenrecorded as all amounts are deemed by management to be collectible.

7



1. Summary of Significant Accounting Policies (continued)

Property and Equipment

Property and equipment is recorded at cost less accumulated depreciation. Depreciation iscomputed on the straight-line method over the estimated useful lives of the related assets. Theestimated useful lives are as follows:

Useful LivesSoftware and licenses 3 yearsEquipment 3 - 5 yearsFurniture 5 - 7 years

The Coalition's policy is to capitalize asset acquisitions or items donated with a value greaterthan $1,000 and an estimated useful life of at least one year.

Revenue Recognition

The Coalition performs various services under cost reimbursement contracts. Revenues arerecognized on the basis of expenses incurred for cost reimbursement contracts. Amounts earnedbut not received are reported as grants receivable.

All contributions are considered to be available for unrestricted use unless specifically restrictedby the donor. Amounts received that are designated for future periods or restricted by the donorfor specific purposes are reported as temporarily restricted or permanently restricted support thatincreases these net asset classes. However, if a restriction is fulfilled in the same time period inwhich the contribution is received, the Coalition reports the support as unrestricted.

During the fiscal years ended June 30, 2013 and 2012, the Coalition operated the followingprograms:

School Readiness and Related Child Care Services: This program provides financial assistancefor child care costs to families who meet the qualifying guidelines in order to assist children tobecome better prepared for the education experience or to provide child care services foreconomically disadvantaged children or children requiring specific assistance as determined bythe state of Florida.

Voluntary Pre-kindergarten Services (VPK): The VPK program is designed to promote in aclassroom environment the development of each four-year-old child's physical, social, andemotional maturation. The program outcomes should result in children better prepared to besuccessful in the formal education process.

Other Child Care Research and Support Programs: These program services include: LeonCounty childcare tuition assistance program, family literacy programs for low-income families,and technical assistance programs to low performing providers.

8



1. Summary of Significant Accounting Policies (continued)

Revenue Recognition (continued)

Donated facilities, equipment, and other non-cash donations are recorded at either estimatedrental values or fair value at the date of donation. In the absence of donor-imposed stipulationsregarding how long the contributed assets must be used, the Coalition has adopted a policy of notimplying a time restriction on contributions of such assets.

Some members of the community have donated significant amounts of time to the Coalition infurthering the Coalition’s program and objectives. No amounts have been included in thefinancial statements for donated member or volunteer services since they did not meet the criteriafor recognition.

Functional Allocation of Expenses

The costs of providing the various programs and other activities have been summarized on afunctional basis in the statements of activities and changes in net (liabilities) assets. Accordingly,certain costs have been allocated among programs and the supporting services benefited.

Income Taxes

Pursuant to a determination letter received from the Internal Revenue Service, the Coalition isexempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, and assuch, is liable for tax only on business income unrelated to the purpose for which it is exempt.

No provision for income taxes has been recorded in the accompanying financial statements. Withfew exceptions, the Coalition is no longer subject to examinations by major tax jurisdictions foryears ended June 30, 2009 and prior.

Subsequent Events

The Coalition has evaluated subsequent events through December 20, 2013, the date the financialstatements were available to be issued. During the period from June 30, 2013 to December 20,2013, the Coalition did not have any material recognizable subsequent events.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generallyaccepted in the United States of America requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amounts of revenuesand expenses during the reporting period. Accordingly, actual results could differ from thoseestimates.

9



2. Property and Equipment

The major components of property and equipment are as follows:

June 30,2013 2012

Office furniture $ 184,833 $ 184,833Office and computer equipment 281,102 233,347Software and licenses 123,278 123,278

589,213 541,458Less accumulated depreciation (472,458) (409,471)

$ 116,755 $ 131,987

Depreciation and amortization expense totaled $62,988 and $82,614 for the years ended June 30,2013 and 2012, respectively.

3. Retirement Plan

The Coalition participates in a voluntary deferred profit sharing plan 401(k) for its employees.Employees are eligible for participation in the plan three months following their date ofemployment. Employees become eligible for employer contributions to the plan after one year(designated in the plan as 800 hours) of employment. Contributions by the Coalition to the planare based on a percentage of employee salaries and vest 100% to employees after two years ofplan participation. During the years ended June 30, 2013 and 2012, expenses under this planwere $86,912 and $82,491, respectively.

4. Donated Services

Many individuals volunteer their time and perform a variety of tasks that assist the Coalition withspecific child care service programs. The Coalition tracks their time and then estimates the valueof these donated services, which are not reflected in the financial statements, as they do not meetthe recognition criteria pursuant to professional standards.

The Coalition has estimated that dedicated volunteers have donated hours of child care servicesin the amount of 3,056 and 1,583 for the years ended June 30, 2013, and 2012, respectively.Management has estimated these donated services to be a costs savings of approximately$23,722 and $11,868 for the years ended June 30, 2013 and 2012, respectively.

10



5. Direct Child Care Services Program Matching Requirements

The Coalition's funding grant from the state of Florida includes a provision requiring a localmatch for the direct child care service program operated in its seven county region. Except forLeon County, Florida, the Coalition can request annual waivers of the match requirement for theremaining six rural counties served that demonstrate significant hardship in meeting the matchrequirement.

6. Concentrations

The Coalition receives a substantial amount of its support from federal and state grants. Asignificant reduction in this level of support would have a material effect on the Coalition'sprograms and activities.

7. Commitments and Contingencies

In the normal course of operations, the Coalition participates in a number of federal and stateassisted grant programs. These programs are subject to audit by the grantors or theirrepresentatives. Such audits could lead to request for reimbursement to the grantor agency forexpenditures disallowed under the terms of the grant. Presently, the Coalition has no suchrequest pending, and in the opinion of management, any such amounts would not be consideredmaterial.

The Coalition has entered into various operating leases for office space and equipment. Thefollowing is a schedule of future minimum lease payments required under these leaseagreements:

Year endingJune 30,

2014 $ 423,4622015 421,2612016 418,6552017 393,8622018 403,922

$ 2,061,162

11



8. Prior Period Adjustments

Prior to June 30, 2012, the Coalition had not recorded funds received from the City ofTallahassee Community Human Service Partnership, in conjunction with the United Way of theBig Bend and Leon County Community Human Service Partnership, in accordance with theaward letter period. Additionally, there were unrecorded differences between the Coalition’sfixed asset schedules and the recorded accumulated depreciation, as well as lease inducementsthat were erroneously fully expensed or not recorded by the Coalition. Effective July 1, 2011,prior period adjustments were recorded to reflect these errors. The effects of the adjustments wasto reduce unrestricted net assets at July 1, 2011 by $8,376 and to simultaneously increaseaccounts receivable and accrued expenses at July 1, 2011 by $11,955 and $83,504, respectively,and decrease accumulated depreciation by $63,173.

12

Other Financial Information

Sch

ool

Oth

er C

hil

dR

ead

ines

s &

Vol

un

tary

Car

eR

elat

edP

re-

Res

earc

h &

Tot

alC

hil

d C

are

Kin

der

gart

enS

up

por

tP

rogr

amG

ener

al &

T

otal

S

ervi

ces

Ser

vice

sP

rogr

ams

Ser

vice

sA

dm

inis

trat

ive

Exp

ense

sS

alar

ies

and

bene

fits

1,72

4,05

5$

92,5

06$

3$

1,

816,

564

$

63

7,60

0$

2,

454,

164

$

T

rain

ing

and

deve

lopm

ent

8,23

7

211

683

9,13

1

9,95

0

19,0

81

Pro

fess

iona

l ser

vice

s-

-

-

-

38

,989

38

,989

C

ontr

acte

d se

rvic

es11

,110

,523

6,66

6,84

2

1,54

8

17,7

78,9

13

1,

283

17

,780

,196

Con

sult

ants

8,60

3

5,98

0

198

14,7

81

8,01

6

22,7

97

Occ

upan

cy39

4,50

9

20

,446

13

2

41

5,08

7

53

,611

46

8,69

8

A

dver

tisi

ng a

nd p

ubli

c ou

trea

ch10

,796

10

,226

24

21

,046

1,

500

22

,546

S

uppl

ies

and

mat

eria

ls87

,944

1,

772

34

,913

12

4,62

9

5,

354

12

9,98

3

T

echn

olog

y m

aint

enan

ce95

,402

5,

040

-

100,

442

24,0

72

124,

514

Off

ice

furn

itur

e an

d eq

uipm

ent

146,

277

4,39

2

-

15

0,66

9

22

,308

17

2,97

7

T

rave

l22

,455

87

7

30

5

23

,637

9,

626

33

,263

D

epre

ciat

ion

-

-

-

-

62,9

88

62,9

88

In-k

ind

expe

nses

:P

rogr

am m

ater

ials

59,7

71

-

-

59,7

71

-

59

,771

O

ffic

e sp

ace

79,8

58

-

-

79,8

58

-

79

,858

P

rint

ing

and

post

age

6,43

2

574

-

7,

006

1,

400

8,

406

O

ther

mis

cell

aneo

us-

-

99

99

58

1

68

0

13

,754

,862

$

6,80

8,86

6$

37,9

05$

20,6

01,6

33$

87

7,27

8$

21

,478

,911

$

See

repo

rt o

f ind

epen

dent

aud

itor

s.

Pro

gram

Ser

vice

s

13

Sch

edul

e of

Fun

ctio

nal E

xpen

ses

Ear

ly L

earn

ing

Coa

liti

on o

f th

e B

ig B

end

Reg

ion,

Inc

.

Yea

r en

ded

June

30,

201

3

Other Reports

14

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 To the Board of Directors Early Learning Coalition of the Big Bend Region, Inc. We have audited, 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, the financial statements of the Early Learning Coalition of the Big Bend Region, Inc. (the Coalition), which comprise the statement of financial position as of June 30, 2013, and the related statements of revenues, expenses, and changes in net assets, and cash flows for the year then ended, and the related notes to the financial statement, and have issued our report thereon dated December 20, 2013. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Coalition’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing an opinion on the effectiveness of the Coalition’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Coalition’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given the limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

Page Two

15

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Coalition’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report This 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


16

Report of Independent Auditors on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133

and Chapter 10.650, Rules of the Auditor General To the Board of Directors Early Learning Coalition of the Big Bend Region, Inc. Report on Compliance for Each Major Federal and State Program We have audited the compliance of the Early Learning Coalition of the Big Bend Region, Inc. (the Coalition) with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the requirements described in the Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on the Coalition’s major programs for the year ended June 30, 2013. The Coalition’s major programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for the Coalition’s major federal and state programs based on our audit of the types of compliance requirements referred to above. 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 Chapter 10.650, Rules of the Auditor General. Those standards and Chapter 10.650, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the major federal programs occurred. An audit includes examining, on a test basis, evidence about the Coalition’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the Coalition’s major federal and state programs. However, our audit does not provide a legal determination of the Coalition’s compliance. Opinion on the Major Programs In our opinion, the Coalition complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal and state programs for the year ended June 30, 2013.

Page Two

17

Report on Internal Control Over Compliance Management of the Coalition is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Coalition’s internal control over compliance with the types of requirements that could have a direct and material effect on its major federal and state programs to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for its major federal and state programs and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.650, Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Coalition’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a major federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a major federal or state 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 major federal or state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133 and Chapter 10.650, Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose.


CFDA/ Pass-through Transfers toGrantor and Program Title CSFA Number Expenditures Subrecipients

Federal GrantorU.S. Department of Health and Human Services Passed through the Florida Department of Education Child Care and Development Block Grant - (CCDBG)

Child Care Discretionary Fund 93.575 SR043 3,761,214$ 29,335$ Child Care Mandatory and Matching Funds of the Child Care Development Fund 93.596 SR043 5,314,292 14,723 Temporary Assistance for Needy Families 93.558 SR043 5,147,881 12,648 Social Services Block Grant 93.667 SR043 15,625 -

Total Federal Awards 14,239,012 56,706

State GrantorFlorida Department of Education Office of Early Learning

Voluntary Pre-Kindergarten Education Program 48.108 SV043 6,951,368 -

Total State Awards 6,951,368 -

Total Awards 21,190,380$ 56,706$

See report of independent auditors.

18


Schedule of Expenditures of State Financial Assistance and Federal Awards

Year ended June 30, 2013

Note 1 - This schedule of expenditures of state financial assistance and federal awards includes the grant activity of the EarlyLearning Coalition of the Big Bend Region, Inc. and is presented on the accrual basis of accounting. The information in thisschedule is presented in accordance with the requirements of OMB's Circular A-133, Auditor State, Local Government, and Non-Profit Organization.

Note 2 - Amounts included on this schedule include only the expenditures of state financial assistance and federal awardsreceived directly from an awarding agency. Because the schedule presents only a selected portion of the operations of theCoalition, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Coalition. Theamounts on the statements of activities and changes in net assets include additional expenditures associated with in-kindcontributions and other resources committed by the Coalition for purposes of fulfilling the grant program.

Section I -- Summary of Auditor's Results

Financial Statements

Type of auditors' report issued: Unmodified

Internal control over financial reporting: Material weakness(es) identified? No Significant deficiency(ies) identified not considered to be material weaknesses? None reported

Noncompliance material to financial statements noted? No

Federal and State Projects

Internal control over major federal projects: Material weakness(es) identified? No Significant deficiency(ies) identified that are not considered to be material weaknesses? None reported

Type of auditor's report issued on compliance for major federal projects? Unmodified

Any audit findings disclosed that are required to be reported in accordance withsection .510(a) of Circular A-133? No

Identification of major programs:

CFDA/CSFA Number Name of Federal or State Program93.575, 93.596, 93.558 U.S. Department of Health and Human Services

Child Care Development Block Grant Cluster48.108 Florida Office of Early Learning Voluntary

Pre-Kindergarten Services

Dollar threshold used to distinguish between Type A and Type B programs: Federal $427,170State $300,000

Auditee qualified as low-risk auditee? Yes

Section II -- Financial Statement Findings

Section III -- Federal and State Project Findings and Questioned Costs

Section IV -- Other Matters

Prior Audit Findings were resolved.

See report of independent auditors.

19

No matters were reported.


Schedule of Findings and Questioned Costs

Year ended June 30, 2013

Relating to State Financial Assistance and Federal Awards

No matters were reported.

No exceptions were found in testing the Coalition's monthly reconciliation of its financial records to the statewide school readiness dataand reporting system. Monthly reconciliations were performed by the Coalition in a timely and statisfactory manner.

To the Audit Committee Early Learning Coalition of the Big Bend Region, Inc. We are pleased to present this report related to our audit of the financial statements of Early Learning Coalition of the Big Bend Region, Inc. (the Coalition) for the year ended June 30, 2013. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the Coalition’s financial reporting process. Generally accepted auditing standards (AU-C 260, The Auditor’s Communication with Those Charged with Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process.

Area Comments

Our Responsibilities With Regard to the Financial Statement Audit

Our responsibilities under auditing standards generally accepted in the United States of America have been described to you in our arrangement letter dated July 13, 2012, and subsequent addendum dated July 23, 2013.

Overview of the Planned Scope and Timing of the Financial Statement Audit

We discussed with members of the Audit Committee and the Coalition’s management various matters about which generally accepted auditing standards require communication. These include matters concerning two-way communication, our independence, the audit planning process, the concept of materiality in planning and executing the audit, our approach to internal control relevant to the audit, and the timing of the audit.

Accounting Policies and Practices Adoption of, or Change in, Accounting Policies

Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Coalition. The Coalition did not adopt any significant new accounting policies, nor have there been any changes in existing significant accounting policies during the current period.

Page Two

Area Comments

Accounting Policies and Practices (continued)

Significant or Unusual Transactions

We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Management’s Judgments and Accounting Estimates

Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events and certain assumptions about future events. Management has informed us that they used all the relevant facts available to them at the time to make the best judgments about accounting estimates, and we considered this information in the scope of our audit. Estimates significant to the financial statements include the allocation of indirect costs to the grant programs and the estimated useful lives of property and equipment to calculate depreciation.

The Audit Committee may wish to monitor throughout the year the process used to compute and record these accounting estimates.

Financial Statement Disclosures The notes to Coalition’s financial statements include significant explanatory information which should be evaluated in conjunction with the basic financial statements.

Page Three

Area Comments

Audit Adjustments There were various audit adjustments made to the original trial balance presented to us to begin our audit The total effect of these adjustments was a decrease in net assets by $140,192. See Exhibit A.

Uncorrected Misstatements There were no uncorrected misstatements that management determined to be immaterial to the original trial balance presented to us to begin our audit.

Disagreements With Management We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financial statements.

Consultations With Other Accountants

We are not aware of any consultations management had with other accountants about accounting or auditing matters.

Significant Issues Discussed With Management

No significant issues arising from the audit were discussed with or the subject of correspondence with management.

Significant Difficulties Encountered in Performing the Audit

We were unable to start fieldwork as scheduled due to delays in receiving the initial trial balance. This compressed the timeline for the audit and impaired our ability to complete fieldwork timely, which also impacted our ability to deliver audit reports in a timely manner. As in the prior year, we incurred additional time and inefficiencies as a result of the delay, for which additional billing will be submitted. For future years, we would appreciate the opportunity to work with management and the audit committee prior to the start of the audit to develop a plan that will permit more timely and efficient reporting.

Page Four

Area Comments

Letters Communicating Significant Deficiencies and Material Weaknesses in Internal Control Over Financial Reporting

We did not identify any such matters requiring communication to the Audit Committee during our audit of the financial statements. We have issued a management letter dated December 20, 2013, that is attached as Exhibit B.

Significant Written Communications Between Management and Our Firm

See Exhibit C for a copy of the representation letter we obtained from the Coalition’s management.

This letter is intended solely for the information and use of the Audit Committee, Board of Directors, and management of the Coalition and is not intended to be and should not be used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have regarding this letter. We appreciate the opportunity to continue to be of service to the Early Learning Coalition of the Big Bend Region, Inc.


Action Item #2014-3 Action Item: Approval of Signature Authority for Jeremy Cohen Background: On December 17, 2013, Jeremy Cohen was appointed to the position of

Treasurer by the Board of Directors for the Early Learning Coalition of the Big Bend Region, Inc. (ELC). In order to maintain operations and remain in compliance with the ELC’s Bylaws that require two signatures on checks over $5,000, staff have identified the need for an additional board member besides the Board Chair to have the authority to sign checks on behalf of the ELC.

The Finance Committee approved this item on March 11, 2014. The Board is

now asked to approve Jeremy Cohen as Treasurer to sign checks on behalf of the ELC. The Board is also asked to remove Kim Kelling Engstrom’s signature authority as she is no longer the Treasurer.

If this Action Item is approved, this change will allow for the following persons

to be signatories on behalf of the ELC, effective March 25, 2014.

• Monesia Brown, Board Chair • Jeremy Cohen, Treasurer • Matt Guse, Chief Executive Officer • Travis Gordon, Finance Director

Attachments: N/A

Action Item #2013-14 Action Item: Approval of Bylaws of the Early Learning Coalition of the Big Bend Region, Inc. Background: Florida law requires that corporations operating in the state of Florida create and

maintain bylaws. Bylaws are the rules and procedures for how a corporation will operate and be governed. In order to alter, amend or replace the Bylaws of Early Learning Coalition of the Big Bend Region, Inc. (ELC), they must be reviewed and approved by an affirmative vote by the majority of the ELC’s Board of Directors. The Program Policy and Strategy Committee was asked to review these Bylaws and provided input for their amendment. After providing input, the committee asked that the Board attorney review the amendments as recommended by the Program Policy and Strategy Committee. It can now be confirmed that the Board attorney has reviewed the Bylaws. It can also be confirmed that the Program Policy and Strategy Committee approved these Bylaws on March 6, 2014, and the Executive Committee approved them on March 13, 2014.

Attached is a copy of the most up to date version of the Bylaws.

The Board is now asked to review and approve the Bylaws as presented. Attachments: Draft Bylaws of the Early Learning Coalition of the Big Bend Region, Inc.

Action Item #2013-17 Action Item: Approval of Draft Financial Statements and Management Letter Background: In compliance with the School Readiness and Voluntary PreKindergarten Grant

Agreements with the Office of Early Learning (OEL), the Early Learning Coalition of the Big Bend Region, Inc. is required to provide OEL with an annual single audit in accordance with the single audit requirements contained in Section 215.97, Florida Statutes, and the Federal Single Audit Act.

The Audit Committee was presented with the draft financial statements and

draft management letter for review, approval and recommendation for Board acceptance on March 3, 2014. The Board is now asked to approve this item.

Attachments: Draft Financial Statements Draft Management Letter

Documents

1 Agenda Board Meeting March 25, 2014 - elcbigbend.org · Advocacy and Resource Development Committee Report Dr. Rachel Pienta f. Audit Committee Report..... Jim McShane Audit Presentation