EARLY LEARNING COALITION .JUNE 30, 2015 rpts/2015... · 2019. 11. 3. · 2015, on our consideration of Early Learning Coalition of Lake County, Inc. internal control over financial

EARLY LEARNING COALITION OF LAKE COUNTY, INC. LEESBURG, FLORIDA

.JUNE 30, 2015

EARLY LEARNING COALITION OF LAKE COUNTY, INC. JUNE 30, 2015

TABLE OF CONTENTS

Independent Auditor's Report on the Financial Statements

Page Number

and the Schedule of Awards ....................................................................................................... I

Statement of Financial Position ...................................................................................................... 3

Statement of Activities and Changes in Net Assets for the Year Ended June 30, 2015 .............................................................................................. 4

Statement of Functional Expenses for the Year Ended June 30, 2015 ........................................... 5

Statement of Cash Flows for the Year Ended June 30, 2015 .......................................................... 6

Notes to the Financial Statements ................................................................................................... 7

Schedule of Federal and State Awards .......................................................................................... 11

Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................... 12

Independent Auditor's Report on Compliance For Each Major Federal and State Program Internal Control over Compliance Required by OMB Circular A-133 and Chapter I 0.650Rules of and on the Auditor General ......................................................... 14

Schedule of Findings and Questioned Costs .................................................................................. 17

Independent Auditor's Report on Examination of Management's Assertion about Compliance with Specified Requirements ...................................................... 18

State of Florida Management Letter ............................................................................................. 19

John S. Rice, CPA C. L. (Chip) Garner, CPA David A. Donofrio, CPA

Patricia A. Sykes-Amos, CPA Ke/re Rice Hosley, CPA

GREENLEE KUR RAS RICE BROWN GARNER & DONOFRIO

CERTIFIED PUBLIC ACCOUNTANTS

Herbert John Greenlee, Jr. CPA (Retired) Dorothy A. Kurras, CPA (1937-2010) Jerry D. Brown, CPA (1950-2013)

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INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS AND THE SCHEDULE OF AW ARDS

To the Board of Directors Early Learning Coalition of Lake County, Inc. Leesburg, Florida 34748

Report on the Financial Statements

We have audited the accompanying financial statements of Early Learning Coalition of Lake County, Inc. (a nonprofit organization) which comprise the statements of financial position as of June 30, 2015, and the related statements of activities, changes in net 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 the 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 the financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn 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 io 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 accounti'ng policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

SERVING CLIENTS WITH PERSONAL ATTENTION SINCE 1933

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

627 N. Donnelly Street. P.O. Box 8 • Mount Dora, FL 32756-0008

(352) 383-6300 • FAX (352) 383-6356

www.gkrb.com

FLORIDA INSTITUTE OF . CERTIFIED PUBLIC ACCOUNTANTS

I

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Early Learning Coalition of Lake County, Inc. as of June 30, 2015, and the changes in its net assets and its cash nows 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 as a whole. The accompanying schedule of expenditures of federal awards, as required by the Office of Management and Budget Circular A-133, Audits of States, Local Governme!lts, and Non-Profit Organizations, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Govemment Auditing Sta!ldards, we have also issued our report dated December 4, 2015, on our consideration of Early Learning Coalition of Lake County, Inc. 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 Governmellt Auditing Standards in considering Early Learning Coalition of Lake County, lnc.'s internal control over financial reporting and compliance.

Mount Dora, Florida December4, 2015

2

EARLY LEARNING COALITION OF LAKE COUNTY, INC. STATEMENT OF FINANCIAL POSITION

JUNE 30, 2015

Current Assets Cash and cash equivalents Grants and contracts receivable Prepaid expenses and other assets

Total Current Assets

ASSETS

Property and equipment, net of accumulated depreciation

Other Assets Refundable deposits

Total Assets

Current Liabilities

LIABILITIES AND NET ASSETS

Accounts payable and accrued expenses Accrued leave Accrued salaries and related expenses

Total Current Liabilities

Net Assets Unrestricted

Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

$ 722,990 71,854 20,321

$ 685,460 40,285 34,590

$ 139,473

See accompanying auditor's report and notes to the financial statements.

$ 815,165

71,351

13,292

$ 899,808

$ 760,335

139,473

$ 899,808

3

EARLY LEARNING COALITION OF LAKE COUNTY, INC. STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS

FOR THE YEAR ENDED JUNE 30, 2015

CHANGES IN UNRESTRICTED NET ASSETS Revenues:

Grants: School readiness Voluntary pre-kindergarten Performance funding pilot project Other local grants

Donations Interest income

Total unrestricted revenues

EXPENSES Program Services:

School readiness Voluntary pre-kindergarten Enhancement programs

Total program services

DECREASE IN NET ASSETS

NET ASSETS AT BEGINNING OF YEAR

NET ASSETS AT END OF YEAR


$ 6,669,273 5,416,302

I 03,543 54,905

100,274 105

12,344,402

6,894,919 5,419,581

43,622 12,358,122

(13,720)

153,193

$ 139,473

4

Personnel Services Salaries and benefits s Taxes

Advertising and outreach Assessment and resource 1naterials Professional services Care provider education Program and provider services Insurance IT /Network Mobile resource unit Office supplies Other

Postage Facility expense Seminars and meeting Small capital outlay Telecommunications Travel

Expenses Before Depreciation and Administration Allocation

Depreciation Allocate administration costs

Total Functional Expenses $

.RL\--.RNI--:OAl--)NO _ KEC ___ !TY,

STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2015

Program Services

School Voluntary Enhancement Readiness Pre-Kindergarten Programs

612,846 s 63,517 $ ... s 44,193 4,283 ...

657,039 67,800 ...

5,856 494 ... 18,475 4,298 258 4,203 137 ...

62,995 1,033 9,606 5,589,328 5,186,709 . . .

... . .. 2,265 16,761 1,871 ... 3, 101 . . . 29,926 3,287 33 ...

695 48 305 2,308 ... 19

118,433 12,712 ... 1,966 ... . ..

38,910 6.872 ... 10,378 l.167 91 12,851 259 ...

5,889,547 5,215,633 42,470

6,546,586 5,283,433 42,470

23,098 2,667 1,152 325,235 133,481 ...

6,894,919 $ 5,419,581 $ 43,622 $

Total Program Services

676,363 48,476

724,839

6,350 23,031

4,340 73,634

10,776,037 2,265

18,632 33,027

3,320 1,048 2,327

131,145 l,966

45,782 11,636 13,110

l l,147,650

11,872,489

26,917 458,716

12,358,122

5 See accompanying auditor's report and notes to the financial statements.

Supporting Services

Total Ad1ninistration Expenses

s 286,708 s 963,071 21,032 69,508

307,740 I,032,579

6,225 12,575 932 23,963

33,231 37,571 183 73,817 ... 10,776,037

9,246 11,511 14.093 32,725

... 33,027 6,480 9,800 5,331 6,379 1,647 3,974

42,365 173,510 4,832 6,798

10,496 56,278 4,084 15,720 4,692 17,802

143,837 11,291,487

451,577 12,324,066

7,139 34,056 (458,716)

$ ... $ 12,358, 122

EARLY LEARNING COALITION OF LAKE COUNTY, INC. STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2015

Cash Flows From Operating Activities: · Cash received from contributors and programs

Interest received Cash paid to suppliers and employees Interest paid

Net Cash Used by Operating Activities

Cash Flows From Investing Activities: · Purchase of property and equipment

Net Cash Used by Investing Activities

Net Decrease In Cash

Cash at Beginning of Year

Cash at End of Year

Reconciliation of increase in net assets to net cash used by operating activities:

Decrease in net assets

Adjustments to reconcile decrease in net assets to net cash used by operating activities:

Depreciation Increase in accounts receivable Decrease in prepaid expenses and other assets Increase in accounts payable Increase in accrued leave Increase in accrued expenses

Total adjustments

Net Cash Used by Operating Activities


$ 12,317,709

$

$

$

471 (12,364,766)

(366)

(46,952)

(3,222)

(3,222)

(50, 174)

773, 164

722,990

(13,720)

34,055 (26,588)

(27) (51,345)

6,0!0 4,663

(33,232)

(46,952)

6

EARLY LEARNING COALITION OF LAKE COUNTY, INC. NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

1. Summary Of Significant Accounting Policies:

Early Learning Coalition of Lake County, Inc. (the Coalition) is a non-profit organization, which is organized for the purpose of ensuring delivery of comprehensive, accessible, affordable and high quality early education and child care services in Lake County, Florida, for children ages 0-5 as mandated by the State of Florida School Readiness Act of 1999. The Coalition adopted a name change in March 2005 and was formerly known as Lake County School Readiness Coalition, Inc. The Coalition's primary sources of revenue are Federal and State grants.

A. Basis of Presentation - The accompanying financial statements have been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America. The financial statements are presented in accordance with the provisions of Accounting Standards Codification (ASC) 958-205.

Under the provisions of ASC 958-205, net assets and revenues, expenses, gains and losses are classified based on the existence or absences of donor-imposed restrictions. Accordingly, the net assets of the Foundation and changes therein are classified and reported as follows:

Unrestricted Net Assets - Net assets that are not subject to donor-imposed stipulations.

Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Foundation and/or the passage of time.

Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Foundation. Generally, the donors of these assets permit the Foundation to use all or part of the income earned on related investments for general or specific purposes.

Revenues are rep01ted as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets (i.e., the donorstipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as net assets released from restrictions.

7


JUNE 30, 2015

B. Cash and Cash Equivalents - For purposes of the statement of cash flows, the Coalition considers all bank deposits with an original maturity date of three months or less to be cash equivalents.

C. Equipment and Depreciation - The Coalition's policy is to capitalize fixed assets having an acquisition cost or donated fair market value of $1,000 or more. Ordinary maintenance and repair expenses are charged to expense as incurred.

Depreciation is computed on the straight line basis over the expected life of the asset. Furniture and equipment are depreciated over five to seven years and software over three years.

Fixed assets acquired with federal grants are subject to regulations that require grantor agency approval to transfer, sale or otherwise dispose of the assets.

D. Revenue Recognition - The revenues from grants (or pmtion of grants) and other agreements, which require the Coalition to perform certain obligations, are recognized only to the extent they have been expended in accordance with the obligations. Restricted grants under which no program period is specified are recognized when received or receivable from the grantor agency.

E. In-Kind Revenue and Expenses - Revenues and expenses from in-kind contributions are recognized as received based on their fair market value. Volunteers have donated time to the Coalition's programs. No amounts have been included in the financial statements for donated program services since no objective basis is available to measure the value of such services.

F. Functional Expense - The cost of providing various programs and other activities have been summarized on a functional basis on the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefitted. The Coalition's State of Florida approved cost allocation plan allows administrative costs to be allocated to program expenses.

G. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the rep01ting period. Actual results could differ from those estimates.

1-1. Schedule of Federal and State Awards - The schedule is prepared on the accrual basis of accounting. Type A program threshold is the larger of $300,000 or three percent of total federal awards expended. All other programs are Type B.

8

I

I


JUNE 30, 2015

I. Compensated Absences - The Coalition offers paid-time-off to eligible employees after ninety days of employment. Employees accrue between 6.769 hours to 9.846 hours per pay period depending upon years of service. Up to 120 hours of unused paid-time-off can be carried over to the following year. Upon termination of employment, up to. 160 hours of unused paid-time-off will be paid.

J. Subsequent Events - The Coalition has evaluated subsequent events through December 4, 2015 and considers that date is when the financial statements were available to be issued.

2. Federal and State Income Taxes:

Early Learning Coalition of Lake County, Inc. is a non-profit organization exempt from Federal and State income taxes under Section 501(c)(3) of the Internal Revenue Code. The Coalition follows the reporting and disclosure guidance for unce1tainty in income taxes as defined in FASB ASC 740. The financial statement effects ofa tax position taken or expected to be taken are recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. As of June 30, 2014, the Plan had no uncertain tax positions that qualify for recognition or disclosure in the financial statements. Generally, the IRS may review the returns for the past three years.

3. Grants and Contracts Receivable:

Amounts awarded but not received at June 30, 2015 under grants or contracts are as follows:

Florida Office of Early Learning

4. Property and Equipment:

A summary of property and equipment as of June 30, 2015 is a follows:

Furniture and equipment

Transportation equipment

Computer software

Less: accumulated depreciation

Net fixed assets

$

$

$

71,854

215,513

66,375

59,459

(269,996)

11,351

9


JUNE 30, 2015

5. Concentration of Credit Risk:

The Coalition maintains three accounts at one financial institution in Lake County. The aggregate amount of the accounts insured by the Federal Deposit Insurance Corporate (FDIC) is $250,000. As of June 30, 2015, each individual account was below the FDIC limit but the aggregate amount exceeded the federally insured limit by $63,603.

6. Concentration of Support:

Approximately 98% of the Coalition's total support for the year ended June 30, 2015 was provided by the Florida Office of Early Learning, a state agency. Future revenue remains dependent on continued budgetary allocations by the State of Florida.

7. Leases:

The Coalition has entered into operating leases for office space and copier rental. The future minimum rental paymt<nts are as follows:

Year

2016

Total Expense

Amount

$ 179,416

$ 179.416

10

~:AllLY LEAR)'/ING COALITION OF LAKE COUNTY, INC. SCHEDULE OF FEDERAL AND STATE AWARDS

FOil THE YEAR ENDED ,JUNE 30, 2015

11

John S. Rice, CPA C. L. (Chip) Garner, CPA David A. Donofrio, CPA

Patricia A. Sykes-Amos, CPA Ke/re Rice Hosley, c PA




INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MA TI'ERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Early Learning Coalition of Lake County, Inc. (a nonprofit organization) (the Coalition), which comprise the statements of financial position as of June 30, 2015, and the related statements of activities, changes in net assets, and cash flows for the years then ended, and the related notes to the financial statements, and have issued our report thereon dated December 4, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, 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 our opinion on the financial statements, but not 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.

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.

12

-- ---- ------ - - - - -

SERVING CLIENTS WITH PERSONAL ATTENTION SINCE 1933 ____________ _



(352) 383-6300 • FAX (352) 383-6356

www.gkrb.com

FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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

Compliance and Other Matters

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

Purpose of this Report

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

Mount Dora, Florida December 4, 2015

13

John S. Rice, CPA C. L. (Chip) Garner, CPA David A. Donofrio, c PA

Potrlcla A. Sykes-Amos, CPA Ke/re Rice Hosley, CPA


CERTIFIED PUBLIC ACCOUNTANTS ---------- ----

Herbert John Greenlee, Jr. CPA (Retired) Dorothy A. Kurros, CPA (1937-2010) Jerry D. Brown, CPA (1950-2013)

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL AND STATE PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 AND CHAPTER I 0.650 RULES OF THE AUDITOR GENERAL


Report on Compliance for Each Major Federal Program

We have audited Early Learning Coalition of Lake County, Inc. (the Coalition) compliance 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 each of the Coalition's major federal programs and state projects for the year ended June 30, 2015. The Coalition's major federal programs and state projects 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 and state projects.

Auditor's Responsibility

Our responsibility .is to express an opinion on compliance for each of the Coalition's major federal programs and state projects 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.650, Rules of the Auditor General. Those standards, OMB Circular A-133, and Chapter 10.650, Rules of the Auditor General, require that 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 a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the Coalition's compliance with those requirements and performing such other

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------ -- --- ----- ---- ---- ---SERVING CLIENTS WITH PERSONAL ATTENTION SINCE 1933


627 N. Donnelly Street. P.O. Box 8 •Mount Dora, FL 32756-0008

(352) 383-6300 • FAX (352) 383-6356

www.gkrb.com


procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Coalition's compliance.

Opinion on Each Major Federal Program

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 each of its major federal programs and state projects for the year ended June 30, 2015.

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 each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.650, 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 federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in intemal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the 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.

15

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. Accordingly, this report is not suitable for any other purpose.

Mount Dora, Florida December 4, 201. 5

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SUMMARY OF AUDIT RESULTS:

I. The auditor's report expresses an unqualified opinion on the financial statements of Early Learning Coalition of Lake County, Inc.

2. An audit was performed in accordance with Chapter I 0.650, Rules of the Auditor General. 3. No significant deficiencies were disclosed during the audit of the financial statements. 4. No instances of noncompliance material to the financial statements of Early Learning

Coalition of Lake County, Inc. were disclosed during the audit. 5. The auditor's report on compliance for the major federal award programs for Early

Learning Coalition of Lake County, Inc. expresses an unqualified opinion. 6. There are no audit findings relative to the major federal award programs for Early Learning

Coalition of Lake County, Inc. 7. The programs tested as major programs included:

Temporary Assistance for Needy Families Child Care and Development Block Grant Child Care Development Fund Voluntary Pre-Kindergarten

CFDA 93.558 CFDA 93.575 CFDA 93.596 CFSA 48.108

8. The threshold for distinguishing Types A and B programs was.$300,000. 9. Early Learning Coalition of Lake County, Inc. was determined to be a low-risk auditee.

I 0. The Coalition's reconciliation of their financial records to the statewide School Readiness data and reporting system was performed on a monthly basis and in a satisfactory manner.

PRIOR YEAR FINDINGS

There were no prior year findings.

CURRENT YEAR FINDINGS

There are no current year findings.

17

John S. Rice, CPA C. L. (Chip) Garner, CPA David A. Donofrio, c PA





INDEPENDENT AUDITOR'S REPORT ON EXAMINATION OF MANAGEMENT'S ASSERTION ABOUT COMPLIANCE

WITH SPECIFIED REQUIREMENTS

The Board of Directors Early Learning Coalition of Lake County, Inc. Leesburg, Florida 34 748

We have examined management's assertion, included in its representation letter dated December 4, 2015, that Early Learning Coalition of Lake County, Inc. complied with the allowable cost requirements established in the grant agreements applicable to the State grant and aids appropriations identified on the Schedule of Federal and State Awards for the year ended June 30, 2015. As discussed in that representation letter, management is responsible for Early Learning Coalition of Lake County, Inc.'s compliance with those requirements. Our responsibility is to express an opinion on management's assertion about Early Learning Coalition of Lake County, lnc.'s compliance based on our examination.

Our examination was made in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Early Learning Coalition of Lake County, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Early Learning Coalition of Lake County, lnc.'s compliance with specified requirements.

In our opinion, management's assertion that Early Learning Coalition of Lake County, Inc. complied with the aforementioned requirements during the fiscal year ended June 30, 2015 is fairly stated, in all material respects.

This report is intended for the information of the Board of Directors, management, federal and state awarding agencies, and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.


18 ---------- --- ----------------- ___________ ,, ______ _

SERVING CLIENTS WITH PERSONALATTENi!ON SINCE1933- -----------



(352) 383-6300 • FAX (352) 383-6356

www.gkrb.com


John S, Rice, CPA C, L (Chip) Garner, CPA David A. Donofrio, CPA


GREENLEE KURRAS RICE BROWN GARNER & DONOFRIO


Herbert John Greenlee, Jr. CPA (Retired) Dorothy A. Kurras, CPA (1937-2010) Jerry D, Brown, CPA (1950-2013)

------------- --------·----------~-·-·-·--·~--------------

MANAGEMENT LETTER

The Board of Directors Early Learning Coalition of Lake County, Inc. Leesburg, Florida 34748

We have audited the financial statements of the Early Learning Coalition of Lake County, Inc. (The Coalition) as of and for the fiscal year ended June 30, 2015 and have issued our report thereon dated December 4, 2015.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits cont.ained 'in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, We have issued our Independent Auditor's Report over Financial Reporting and on Compliance and Other Matters, Independent Auditor's Report on Compliance with Requirements Applicable to each Major Federal Program and State Prnject and Internal Control over Compliance, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated December 4, 2015, should be considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with Chapter 10.650, Rules of the Auditor General, which requires disclosure in the management letter of violations of provisions of contracts or grant agreements, or abuse, that have an effect on the financial statements or State project amounts that is less than material but more than inconsequential. In addition, for matters that have an inconsequential effect on the financial statements or State project amounts, considering both quantitative and qualitative factors, the following may be reported based on professional judgment: (1) violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse, that have occurred or are likely to have occurred, (2) Deficiencies in internal control that are not significant deficiencies. We noted no matters involving the internal control over compliance and its operation that require disclosure.

Pursuant to Chapter 119, Florida Stat11tes, this management letter is public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely of the information and use of management and the Florida

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sERVING cL1ENrs wJTH PERsotifl.i ATiE.iir1otis1Nciri-gj3 AMERICAN INSTITUTE OF



(352) 383-6300 • FAX (352) 383-6356

www.gkrb.com


Auditor General, and is not intended to be and should not be used by anyone other than these specified parties.


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Documents

EARLY LEARNING COALITION .JUNE 30, 2015 rpts/2015... · 2019. 11. 3. · 2015, on our consideration of Early Learning Coalition of Lake County, Inc. internal control over financial