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INC.
REPORT ON AUDIT OF FINANCIAL STATEMENTS AND
SINGLE AUDIT SUPPLEMENT
DECEMBER 31, 2014
CHILD, INC.
TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS
Statements of Financial Position
Statement of Activities
Statement of Functional Expenses
Statements of Cash Flows
Notes to Financial Statements
SINGLE AUDIT SUPPLEMENT
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
Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133
Schedule of Expenditures of Federal Awards and Certain State Grants
Notes to Schedule of Expenditures of Federal Awards and Certain State Grants
Schedule of Findings and Recommendations
1 - 2
3
4-5
6-7
8
9- 15
16- 17
18- 19
20-22
23
24-25
April 22, 2015
To the Board of Directors Child, Inc. Wilmington, Delaware
Report on the Financial Statements
INDEPENDENT AUDITOR'S REPORT
Barbacane, Thornton & Company LLP 200 Springer Building 3411 Silverside Road
Wilmington, Delaware 1981 0
T 302.4 78.8940 F 302.468.4001 www.btcpa.com
We have audited the accompanying financial statements of Child, Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31 , 2014, and the related statements of activities, functional expenses, and cash flows for the year 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 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 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 d isclosures 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 Organization'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 Organization'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.
- 1 -
BARBAO\NE TI-IORNION &COMPANY CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors Child, Inc.
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 Child, Inc. as of December 31 , 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited Child, Inc.'s 2013 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated April 28, 2014. In our opinion, the summarized comparative information presented herein as of and the for the year ended December 31 , 2013 is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Matters
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 and certain state grants, as required by Office of Management and Budget Circular A-133, "Audits of States, local Governments, 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 Government Auditing Standards, we have also issued our report dated April22, 2015, on our consideration of Child, Inc.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 Child, Inc.'s internal control over financial reporting and compliance.
/J~~~~ LLP BARBACANE, THO;NTON & COMPANY LLP?
- 2 -
CHILD, INC. STATEMENTS OF FINANCIAL POSITION
DECEMBER 31,2014 AND 2013
ASSETS CURRENT ASSETS: Cash and cash equivalents Investments Contracts receivable Accrued interest Prepaid expense
Total Current Assets
PROPERTY AND EQUIPMENT: Land Buildings Building improvements Furniture and fixtures
Less: accumulated depreciation Property and Equipment, Net
Investments
TOTAL ASSETS
LIABILITIES AND NET ASSETS LIABILITIES
NET ASSETS: Unrestricted:
Undesignated Board-designated:
Victims of Domestic Violence Operating Reserve
Total Unrestricted Temporarily restricted TOTAL NET ASSETS
TOTAL LIABILIT IES AND NET ASSETS
2014
$ 727,258 225,874 367,872
3,249 897
1,325,150
491,015 480,500
1,730,082 1 '136,602 3,838,199
(2,454,667) 1,383,532
6,493,551
$ 9,202,233
$
2,600,703
200,313 5,403,090 8,204,106
998,127 9,202,233
$ 9,202,233
The accompanying notes are an integral part of these financial statements.
- 3-
2013
$ 563,719 357,984 398,250
3,028 614
1,323,595
491 ,015 480,500
1,726,587 1,103,345 3,801,447
(2,337,575) 1,463,872
6,465,703
$ 9,253,170
$
2,772,463
200,421 5,499,237 8,472,121
781,049 9,253,170
$ 9,253,170
PU
BL
IC S
UP
PO
RT
, R
EV
EN
UE
, A
ND
GA
INS
P
UB
LIC
SU
PP
OR
T:
Con
trib
utio
ns To
tal P
ub
lic S
up
po
rt
Fe
es
and
gra
nts
F
eder
al:
U.S
. D
ep
art
me
nt o
f H
ealth
and
Hu
ma
n S
erv
ice
s S
tate
of
De
law
are
: C
rim
inal
Ju
stic
e C
ounc
il
CH
ILD
, IN
C.
ST
AT
EM
EN
T O
F A
CT
IVIT
IES
F
OR
TH
E Y
EA
R E
ND
ED
DE
CE
MB
ER
31
,20
14
(W
ith
Su
mm
ariz
ed T
ota
ls f
or
2013
) Tem
pora
rily
U
nres
tric
ted
Res
tric
ted
$ 56
,181
$
56,8
65
56,1
81
56,8
65
-50
,342
-94
4,63
2 D
ep
art
me
nt o
f Se
rvic
es
for
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ldre
n, Y
outh
. an
d T
he
ir F
amili
es:
Div
isio
n o
f Fa
mily
Ser
vice
s -
1,1
89
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3 D
ep
art
me
nt o
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alth
and
So
cial
Se
rvic
es
-2
68
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0
Gra
nt-
in-A
id
13
5,00
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De
pa
rtm
en
t of J
ust
ice
99
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ew
Ca
stle
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un
ty D
ep
art
me
nt
of C
om
mu
nity
Ser
vice
s -
5,00
2 C
om
mu
nity
Leg
al A
id S
ocie
ty,
Inc.
-
9,20
6 D
ela
wa
re C
oalit
ion
Ag
ain
st D
om
est
ic V
iole
nce
-
97,4
00
Un
iver
sity
of D
ela
wa
re
-31
,535
M
ary
Ka
y A
sh F
ound
atio
n -
-B
ran
dyw
ine
Sch
oo
l Dis
tric
t -
Ch
rist
ma
s S
ho
p F
ound
atio
n -
Del
awar
e V
alle
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eve
lop
me
nt
Cor
pora
tion
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ilmin
gto
n F
low
er
Ma
rke
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-C
ity o
f Wilm
ing
ton
-
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llsta
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ound
atio
n -
64
4
Tot
al F
ees
and
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nts
13
5,0
00
3,
628
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RE
VE
NU
E A
ND
GA
INS
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tere
st a
nd d
ivid
en
ds
59,3
95
-P
rog
ram
inco
me
: F
amily
Re
sou
rce/
Pa
ren
t Edu
catio
n 28
,621
-
Do
me
stic
Vio
lenc
e:
Cou
nsel
ing
52,8
97
-V
isita
tion
Cen
ters
33
,93
9
-H
elpi
ng C
hild
ren
He
al
34,9
27
-V
ictim
Th
era
py
17,4
76
-
Co
nti
nu
ed
on
ne
xt p
ag
e.
-4
-
Tot
als
20
14
20
13
$ 11
3,04
6 $
136,
491
113,
046
136,
491
50,3
42
59,0
16
944,
632
991
,170
1,1
89,6
93
1,34
4,46
5 26
8,3
90
267
,974
13
5,0
00
95
,835
9
97
,12
5
797
,700
5
,002
6,
463
9,2
06
13,6
04
97
,40
0
69,4
98
31,5
35
29,5
02
-2
0,0
00
-
14,
251
-60
0 25
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25
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-
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00
9,90
6 3
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6
44
3,
763,
875
3,73
9,4
18
59,3
95
57,4
78
28
,621
34
,15
1
52,8
97
44,
398
33,9
39
31,0
21
34,
927
33,6
76
17
,47
6
14,
356
RE
VE
NU
E A
ND
GA
INS
(co
nt'd
):
Pro
gra
m in
com
e (c
an
t' d):
A
ng
er
Ma
na
ge
me
nt f
or
Yo
uth
S
peci
al e
ven
ts
Mis
cella
neou
s re
ven
ue
R
ealiz
ed g
ain
on
inve
stm
en
ts
Unr
ealiz
ed g
ain
(lo
ss)
on
inve
stm
en
ts
To
tal R
eve
nu
e a
nd
Ga
ins
Ne
t ass
ets
rel
ease
d fr
om
res
tric
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atis
fact
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of
prog
ram
res
tric
tions
T
OT
AL
PU
BL
IC S
UP
PO
RT
, R
EV
EN
UE
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ND
GA
INS
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PE
NS
ES
: P
rog
ram
se
rvic
es:
E
me
rge
ncy
Ho
me
for
Chi
ldre
n/Y
outh
F
amily
Su
pp
ort
/Pa
ren
t Edu
catio
n D
om
est
ic V
iole
nce
S
peci
aliz
ed F
ost
er C
are
Y
outh
De
velo
pm
en
t Pro
gra
m
To
tal P
rog
ram
Se
rvic
es
Su
pp
ort
ser
vice
s:
Ma
na
ge
me
nt a
nd g
en
era
l F
und
rais
ing
Tot
al S
up
po
rt S
erv
ice
s T
OT
AL
EX
PE
NS
ES
CH
AN
GE
IN N
ET
AS
SE
TS
NE
T A
SS
ET
S, B
EG
INN
ING
OF
YE
AR
NE
T A
SS
ET
S,
EN
D O
F Y
EA
R
CH
ILD
, IN
C.
ST
AT
EM
EN
T O
F A
CT
IVIT
IES
F
OR
TH
E Y
EA
R E
ND
ED
DE
CE
MB
ER
31
,20
14
(W
ith
Su
mm
ariz
ed T
ota
ls f
or
2013
) Tem
pora
rily
U
nres
tric
ted
Res
tric
ted
2,5
50
-3
,896
-
29
,733
-
60
5,9
18
-(7
55
,98
7}
-11
3,36
5 -
3,46
8,6
62
(3,4
68
,662
) ~773
,208
217
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53
8,9
49
-
48
5,6
62
-1,
894
,502
-
341
,377
-
143,
898
-3,
404,
388
-63
6,7
14
-
121
-63
6,8
35
-4,
041,
223
-
(26
8,0
15
) 21
7,0
78
8,47
2,1
21
781
,04
9
$8
,20
4,1
06
$
99
8,1
27
The
acc
ompa
nyin
g no
tes
are
an
inte
gral
pa
rt o
f the
se f
inan
cial
sta
tem
ents
.
-5
-
Tot
als
2014
20
13
2,5
50
98
5 3,
896
48
,397
29
,733
3
,711
60
5,9
18
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7,1
07
(7
55
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) 75
0,8
85
113,
36
5
1,4
36,
165
3,99
0,28
6 5,
312
,074
538
,94
9
543,
936
485
,662
43
3,4
68
1
,894
,502
1
,90
4,78
9 34
1,37
7 41
7,0
49
143,
898
14
7,27
2 3,
404
,388
3,
446
,514
636
,71
4
643
,745
12
1 26
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63
6,8
35
669
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4
,041
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4.
116.
493
(50
,937
) 1,
195,
581
9,2
53
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0
8,05
7,58
9
$9
,20
2,2
33
$
9,2
53,1
70
Sal
arie
s E
mpl
oyee
ben
efits
and
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em
plo
yme
nt c
ompe
nsat
ion
Pay
roll
taxe
s T
otal
Per
sonn
el E
xpen
ses
Adv
ertis
ing
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wan
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and
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hing
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an
k fe
es
Em
erg
ency
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f F
ost
er c
are
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el o
il G
as
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elec
tric
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ouse
hold
sup
plie
s an
d fo
od
Insu
ranc
e Ja
nito
rial
Mem
bers
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du
es/
sub
scri
ptio
ns
Mis
cella
neou
s O
ffic
e re
nt
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ice/
prog
ram
sup
plie
s O
utsi
de p
rintin
g P
ost
ag
e
Pro
fess
iona
l fe
es
Re
crea
tiona
l/cul
tura
l sup
plie
s R
epai
rs a
nd m
ain
ten
an
ce
Sem
inar
s an
d tr
aini
ng
Te
lep
ho
ne
/co
mp
ute
r T
rash
re
mo
val
Tra
vel a
nd a
uto
W
ate
r an
d se
we
r S
ubto
tal b
efo
re d
epre
ciat
ion
Dep
reci
atio
n
TO
TA
L E
XP
EN
SE
S
Co
nti
nu
ed
on
ne
xt
pa
ge
.
CH
ILD
, IN
C.
ST
AT
EM
EN
T O
F F
UN
CT
ION
AL
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PE
NS
ES
F
OR
TH
E Y
EA
R E
ND
ED
DE
CE
MB
ER
31
,20
14
(W
ith
Su
mm
ariz
ed T
ota
ls f
or
2013
)
Pro
2ram
Se
rvic
es
Em
erge
ncy
F
amily
S
peci
aliz
ed
Ho
me
for
Sup
port
JPar
ent
Dom
estic
F
oste
r C
hild
ren/
You
th
Edu
catio
n V
iole
nce
C
are
$ 32
9,28
8 $
292,
727
$ 1,
171,
502
$ 11
3,8
74
10
1,7
29
69
,038
32
3,00
5 38
,564
24
,521
21
,645
87
,20
4
8,3
21
45
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38
38
3,41
0 1,
581,
711
160,
759
538
80
312
200
1,90
7 -
--
-1
,04
8
85
6
-5
0
40
8,
635
--
-14
5,15
7 4
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-
--
5,4
34
4
,019
22
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-
13,3
41
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16,7
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7
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-
-1
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0 39
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3
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19,1
10
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12
3,4
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2
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29
3
4,7
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2,
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-15
9 -
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00
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7
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6 1
4,8
25
-
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0
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15
,417
37
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8
,705
1
,15
9
2,31
8 -
5,5
94
8,
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21,7
28
9,61
0 1
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9
517
5,71
1 -
523,
961
484,
491
1,81
8,74
3 33
7,04
5 14
,988
1,
171
75,7
59
4,3
32
$ 53
8.94
9 $
485
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$
1,89
4,50
2 $
341,
377
-6
-
You
th
Tot
al
Dev
elop
men
t P
rogr
am
Pro
gram
S
ervi
ces
-
$ 85
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2,5
38
16
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54
9,0
36
6,
514
148,
20
5
108,
361
2,68
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79
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904
-8
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-
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157
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861
31
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4
43
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8
600
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-
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,50
7
2,78
5 8
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1,
400
21,3
62
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8 77
,182
-
159
100
4,7
87
300
19,4
15
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19,7
99
-2
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38
8,26
7 18
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7,
034
73,2
83
-3,
477
5,59
3 51
' 151
-
8,15
7 14
2,72
7 3,
306,
967
1,17
1 97
,421
$ 1
43
.89
8
$ 3.
404.
388
Sal
arie
s E
mpl
oyee
ben
efits
and
un
em
plo
yme
nt c
ompe
nsat
ion
Pay
roll
taxe
s T
otal
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sonn
el E
xpen
ses
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ertis
ing
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wan
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and
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hing
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ank
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s E
mer
genc
y re
lief
Fos
ter c
are
F
uel o
il G
as
and
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tric
H
ouse
hold
sup
plie
s an
d fo
od
Insu
ranc
e Ja
nito
rial
Me
mb
ers
hip
due
s/su
bscr
iptio
ns
Mis
cella
ne
ou
s O
ffic
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en
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ffic
e/pr
ogra
m s
uppl
ies
Ou
tsid
e p
rint
ing
Pos
tage
P
rofe
ssio
nal f
ees
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reat
iona
l/cul
tura
l sup
plie
s R
epai
rs a
nd m
aint
enan
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Sem
inar
s an
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aini
ng
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lep
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mp
ute
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rave
l and
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o W
ate
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se
we
r S
ubto
tal b
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ep
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atio
n
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reci
atio
n
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L E
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EN
SE
S
CH
ILD
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C.
ST
AT
EM
EN
T O
F F
UN
CT
ION
AL
EX
PE
NS
ES
F
OR
TH
E Y
EA
R E
ND
ED
DE
CE
MB
ER
31
,20
14
(W
ith
Su
mm
ariz
ed T
ota
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CHILD, INC. STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31,2014 AND 2013
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ (50,937) $1 '195,581 Adjustments to reconcile change in net assets to
net cash provided by operating activities:
Depreciation 117,092 109,849
Net realized gain on investments (605,918} (417,107}
Net unrealized (gain) loss on investments 755,987 (750,885) Decrease in contracts receivable 30,378 16,036 (Increase) Decrease in accrued interest (221} 453 (Increase) in prepaid expense (283} (443)
NET CASH PROVIDED BY OPERATING ACTIVITIES 246,098 153,484
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments 357,984 321,791
Purchase of investments (403,791) (152,007) Purchase of property and equipment (36,752) (130, 735)
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES (82,559) 39,049
NET CHANGE IN CASH AND CASH EQUIVALENTS 163,539 192,533
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 563,719 371,186
CASH AND CASH EQUIVALENTS, END OF YEAR $ 727,258 $ 563,719
The accompanying notes are an integral part of these financial statements.
-8-
NOTE A
NOTE B
CHILD, INC.
NOTES TO FINANCIAL STATEMENTS
PURPOSE OF CHILD. INC.
Child, Inc. is a private nonprofit organization providing a variety of social services to children and their families. Programs include: emergency shelter for abused, neglected, and dependent children; shelter, counseling, and 24-hour hotline for runaway and homeless youth; family support and parent education services; shelters for women and their children who are victims of domestic violence; 24-hour hotline for victims of domestic violence; counseling for the victims and perpetrators of domestic violence and their children; supervised visitation services; specialized foster care; home visiting; community development; prevention services; and advocacy.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements of Child, Inc. have been prepared on the accrual basis of accounting.
Financial Statement Presentation
In accordance with the Financial Accounting Standards Board's Accounting Standards Codification ("FASB ASC"), Child, Inc. is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, Child,lnc. is required to present a statement of cash flows.
Cash and Cash Equivalents
For purposes of the statement of cash flows, Child, Inc. considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.
Contributions
In accordance with the FASB ASC, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions.
Recognition of Donor Restrictions
Support that is restricted by the donor is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction . When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.
- 9-
NOTE B
CHILD, INC.
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)
Investments
In accordance with the FASB ASC, investments are reported at market value. Donated securities also are reported at fair market value as of the date of receipt. All realized and unrealized gains and losses arising from fluctuations in market values, sales, or other disposition of assets are accounted for in the class of net assets that owns the assets.
Contract Receivables
Contract receivables are stated at net realizable value. Receivables are considered impaired if full principal payments are not received in accordance with the contractual terms.
Management's estimate of the allowance for uncollectible contract receivables is based on historical collection rates and an analysis of the collectability of individual receivables. The allowance for uncollectible accounts was $0 as of December 31, 2014 and 2013.
Income Taxes
Child, Inc. is exempt from federal income tax under Section 501 (c)(3) of the Internal Revenue Code. However, income from certain activities not directly related to Child, Inc.'s tax-exempt purpose may be subject to taxation as unrelated business income.
Generally accepted accounting principles prescribe rules for the recognition, measurement, classification, and disclosure in the financial statements of uncertain tax positions taken or expected to be taken in Child, Inc.'s tax returns. Management has determined that Child, Inc. does not have any uncertain tax positions or associated unrecognized benefits that materially impact the financial statements or related disclosures. Since tax matters are subject to some degree of uncertainty, there can be no assurance that Child, Inc.'s tax returns will not be challenged by the taxing authorities and that Child, Inc. will not be subject to additional tax, penalties, and interest as a result of such challenge. Income tax returns of Child, Inc. for 2012, 2013, and 2014 are subject to examination by tax authorities, generally for three years after they were filed.
Donated Materials and Services
Donated materials and equipment are recorded as contributions at their fair market value at the date of receipt. Child, Inc. received $0 in donated assets in 2014 and 2013. In addition, a number of volunteers have donated significant amounts of their time to Child, Inc.'s program services. Total contributed hours for 2014 and 2013 were approximately 5,000 for each year. The contributed hours have not been recognized in the financial statements since they do not meet the requirements for recognition as contributed services in accordance with the FASB ASC.
- 10-
NOTE B
NOTEC
CHILD, INC.
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)
Property and Equipment and Depreciation
Property and equipment are stated at cost if purchased. Donated facilities and equipment are recorded at their fair market values at the date of receipt. When such assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from their respective accounts, and any gains or losses on such disposition are recognized in the statement of activities.
Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. The following is a schedule of the estimated useful lives:
Buildings Building improvements Furniture and fixtures
33 years 33 years
5-10 years
Use of Estimates in the Preparation of Financial Statements
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 reporting period. Actual results could differ from those estimates.
Prior Year Financial Statements
The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with Child, Inc.'s financial statements for the year ended December 31 , 2013, from which the summarized information was derived.
CONTRACTS AND GRANTS FROM GOVERNMENTAL AGENCIES
Child, Inc., in the normal course of business, receives grants and enters into contracts for the performance of specific activities within certain budgetary constraints. Such projects are subject to various stipulations as to operating compliance and financial reporting. For substantially all of these programs, the expenditures are subject to review, audit, and final approval by the contracting agency.
- 11 -
NOTED
CHILD, INC.
NOTES TO FINANCIAL STATEMENTS
INVESTMENTS
Fair values of assets measured on a recurring basis at December 31, 2014 and 2013 are as follows:
Fair Value Measurements at Reporting Date Using:
December 31, 2014 Equity mutual fund - small
cap stocks Equity mutual funds - mid cap
and large cap stocks U.S. Treasury notes U.S. Agency bonds Corporate bonds and notes Certificates of deposit
Total
Fair Value
$2,747,973
2,655,093 414,536 285,030 515,745 101,048
$6,719,425
Fair Value Measurements at Reporting Date Using:
December 31, 2013 Equity mutual fund - small
cap stocks Equity mutual funds - mid cap
and large cap stocks Bond mutual fund U.S. Treasury notes U.S. Agency bonds Corporate bonds and notes Certificates of deposit
Total
Fair Value
$2,881,211
736,284 1,881,678
279,897 295,760 394,614 354,243
$6,823,687
Level 1
$2,747,973
2,655,093 414,536 285,030 515,745
$6,618,377
Levell
$2,881,211
736,284 1,881,678
279,897 295,760 394,614
$6,469,444
level2
$
101,048
$ 101,048
Level2
$
354,243
$ 354,243
Level 1 - Valuations based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2 - Valuations based on quoted prices of similar products in active markets or identical products in markets that are not active or for which all significant inputs are observable, directly or indirectly.
Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
- 12-
NOTE E
NOTE F
NOTEG
CHILD, INC.
NOTES TO FINANCIAl STATEMENTS
TEMPORARilY RESTRICTED NET ASSETS
As of December 31, 2014 and 2013, temporarily restricted net assets are available for the following purposes:
2014 2013
Sarah's House - Shelter for Women $ 169,924 $ 177,652 Domestic Violence 389,325 177,635 Parent Education 86,680 91,406 Sparrow Run Resource Center 38,214 29,237 Runaway and Homeless Youth 23,223 25,401 Governor Terry Home 3,577 163 Project PRIDE 47,495 48,542 Project Connect 5,303 Helping Children Heal 33,396 33,396 Specialized Foster Care 21 21 Specialized Foster Care - Toys for
Domestic Violence Shelters 1,000 Victims Advocacy 79,243 87,545 Domestic Violence Shelters 20,000 20,000 Services to lexington Green 12,077 13,336 Capital needs 53,900 75,000 Emergency Shelter Services 600 Youth Development Program 749 115 Kid's Place at Sparrow Run 35,000
$ 998,127 $ 781,049
ADVERTISING EXPENSE
Child, Inc. expenses the production costs of advertising when incurred. For the years ended December 31, 2014 and 2013, $1,130 and $16,178, respectively, were reported as advertising expense.
Operating leases
Child, Inc. leases office space primarily for the Family Support/Parent Education program. One lease is paid by Child, Inc. on a month-by-month basis with no further commitment, and the other lease is for a one-year period expiring on July 31, 2015. Rent expense totaled $21 ,362 and $12,628 for the years ended December 31, 2014 and 2013, respectively. The future obligations under this lease are as follows:
Year Ending December 31 ,
2015 $ 8,750
- 13-
NOTEG
NOTE H
NOTE I
NOTEJ
CHILD, INC.
NOTES TO FINANCIAL STATEMENTS
LEASES (cont'd)
In April 2011, Child, Inc. entered into a lease agreement for a copier. The lease is for 60 months ending in April 2016. Monthly payments on this lease are $716. The total future obligations under this lease are as follows:
Year Ending December 31,
2015 2016
Total
$ 8,598 2,866
$ 11,464
Copier lease expense totaled $8,598 for both 2014 and 2013.
PENSION PLAN
Child, Inc. has a defined contribution pension plan which covers those employees working at least 1,000 hours. are age 21 and older, and have completed 12 months of continuous employment. Each year, Child, Inc. decides on the amount of money to be contributed to the plan. Contributions for 2014 and 2013 were 10 percent of annual salary plus 4.3 percent on the excess over $30,000 annual salary. Pension expense for 2014 and 2013 was $206,182 and $174,943, respectively.
CONCENTRATION OF CREDIT RISK
Child, Inc. maintains its cash in bank deposit accounts which, at times. may exceed the federally insured limit of $250,000 as of December 31, 2014 and 2013. Child, Inc. has not experienced any losses in such accounts. At December 31, 2014, $384,223 of the Organization's $669,714 bank balance was subject to custodial credit risk. At December 31 , 2013, $195,274 of the Organization's $480,730 bank balance was subject to custodial credit risk.
LINE OF CREDIT
In 2010, Child, Inc. obtained a $100,000 unsecured line of credit with M&T Bank. The line of credit bears interest at the floating national commercial rate plus two percent (six percent at December 31, 2014 and 2013). Child, Inc. did not have an outstanding balance as of December 2014 and 2013.
- 14-
NOTE K
CHILD, INC.
NOTES TO FINANCIAL STATEMENTS
SUBSEQUENT EVENTS
Child, Inc. has evaluated all subsequent events through April22, 2015, the date the financial statements were available to be issued.
- 15-
CHILD, INC.
SINGLE AUDIT SUPPLEMENT
April 22, 2015
To the Board of Directors Child, Inc. Wilmington, Delaware
Barbacane, Thornton & Company LLP 200 Springer Build ing
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATIERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
341 1 Silversidc Road Wilmington, Delaware 19810
T 302.4;8.8940 F 302.468.4001 www.btcpa.com
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 Child , Inc. (a nonprofit organization), which comprise the statement of financial position as of December 31, 2014, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated April 22, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Child, Inc.'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 Child, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of Child, Inc.'s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Organization'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 identity all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identity any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
- 16-
BARBAO\NE 1HORNTON &C.DMPANY CERTIFIED PUBLIC ACCOUNTANTS
To the Boord of Directors Child, Inc.
Compliance and Other Matters
As port of obtaining reasonable assurance about whether Child, Inc.'s financial statements ore free from material misstatement, we performed tests of its compliance with certain provisions of lows, regulations, contracts, and grant agreements, noncompliance with which could hove a direct and material effect on the determination of financial statement amounts. However, providing on opinion on compliance with those provisions was not on objective of our audit, and accordingly, we do not express such on opinion. The results of our tests disclosed no instances of noncompliance or other matters that ore 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 on opinion on the effectiveness of the Organization's internal control or on compliance. This report is on integral port 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.
;$~~~~~ LLP BARBACANE, THO~NTON & COMPANY LLP?
- 17-
April 22, 2015
To the Board of Directors Child, Inc. Wilmington. Delaware
INDEPENDENT AUDITOR'S
Barbacane, Thornton & Company LLP ZOO Springer Building 341 J Silverside Road
Wilmington, Delaware 1981 0
REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY
T 302.478.8940 F 302.468.4001 www.btcpa.com
OMB CIRCULAR A-133
Report on Compliance for Each Major Federal Program
We have audited Child, Inc.'s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on Child, Inc.'s major federal program for the year ended December 31, 2014. Child, Inc.'s major federal program is identified in the summary of auditor's results section of the accompanying schedule of findings and recommendations.
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 Child, Inc.'s major federal program 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." Those standards and OMB Circular A-133 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 occurred. An audit includes examining, on a test basis, evidence about Child, Inc.'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 major federal program. However, our audit does not provide a legal determination of Child, Inc.'s compliance.
- 18 -
BARBAO\NE lHORNIDN &CDMP/-\NY LERTIF!ED PUBLIC ACCOUNTANTS
To the Board of Directors Child, Inc.
Opinion on Each Major Federal Program
In our opinion, Child, Inc. 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 program for the year ended December 31 • 2014.
Report on Internal Control Over Compliance
Management of Child, Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Child, Inc.'s internal control over compliance with the types of requirements that could have a direct and material effect on its major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for its major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Child, Inc.'s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions. to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in infernal 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 identity 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. Accordingly, this report is not suitable for any other purpose.
J$~~1C7 LLP BARBACANE, THO~NTON & COMPANY LLP?
- 19-
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0
Com
mun
ity B
ased
Out
reac
h S
ervi
ces
for
Vic
tims
of
Do
me
stic
Vio
len
ce
I 93
.671
1
0/0
1/1
3-0
9/30
/14
65
,76
4
65,
764
18,
024
47,7
40
C
omm
unity
Bas
ed O
utre
ach
Ser
vice
s fo
r V
ictim
s of
D
omes
tic V
iole
nce
I
93.6
71
10/0
1/1
4-0
9/3
0/1
5
65,7
64
18,1
19
Com
mun
ity B
ase
d B
iling
ual
Lega
l Adv
ocat
e I
93.
671
10/0
1113
-09
/30/
14
19,8
05
19
,80
5
6,0
55
13
,750
C
omm
unity
Bas
ed B
iling
ual
Lega
l Adv
ocat
e I
93.6
71
10/0
1/14
-09
/30/
15
19,8
05
--
4,5
39
Div
isio
n o
f Fa
mily
Ser
vice
s Li
ason
-B
eech
Str
eet
I 93
.671
1 0
/01/
13 -
09/3
0/14
56
,579
56
,579
12
,712
43
,867
D
ivis
ion
of F
amily
Ser
vice
s Li
ason
-B
eech
Str
eet
I 93
.671
1 0
/01/
14 -
09/3
0/15
64
,162
17
,333
C
ore
Sh
elte
r S
ervi
ces
for
Dom
estic
Vio
lenc
e V
ictim
s I
93.6
71
1 0/0
1/1
3 -
09/3
0/14
21
3,83
4 2
13,
83
4
53,0
74
160,
760
Cor
e S
he
lter
Ser
vice
s fo
r D
omes
tic V
iole
nce
Vic
tims
I 9
3.67
1 10
/01
/14
-09
/30/
15
217,
912
47,6
37
Tot
al C
FD
A #
93.6
71
355,
982
89,8
65
353,
745
Con
tinue
d o
n n
ext
pa
ge
.
-20
-
AC
CR
UE
D
(TE
MP
OR
AR
ILY
R
ES
TR
ICT
ED
) R
EV
EN
UE
AT
E
XP
EN
DIT
UR
ES
1
2/31
/14
$ 50
,342
$
6,13
4 50
,342
_
_
6,13
4
177,
236
38,0
43
38,0
43
67,2
65
22,2
88
22
,288
35,8
88
13,8
30
13,8
30
354,
550
~161
69,
14
9
51,1
81
33,4
70
120,
330
33.4
70
47,7
40
18,1
19
18,1
19
13,7
50
4,53
9 4,
539
43,8
67
17,3
33
17,
333
160,
760
47,
637
47,6
37
353,
745
87,6
28
CH
ILD
, IN
C.
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AW
AR
DS
AN
D C
ER
TA
IN S
TA
TE
GR
AN
TS
F
OR
TH
E Y
EA
R E
ND
ED
DE
CE
MB
ER
31
,20
14
AC
CR
UE
D
(TE
MP
OR
AR
ILY
F
ED
ER
AL
GR
AN
T P
ER
IOD
T
OT
AL
R
ES
TR
ICT
ED
) S
OU
RC
E
CF
DA
B
EG
INN
ING
/ G
RA
NT
R
EC
EIV
ED
R
EV
EN
UE
AT
R
EV
EN
UE
F
ED
ER
AL
GR
AN
TO
R I
PR
OJE
CT
TIT
LE
C
OD
E
NU
MB
ER
E
ND
ING
DA
TE
S
AM
OU
NT
F
OR
YE
AR
01
/01/
14
RE
CO
GN
IZE
D
RIS~S P
rogr
am
-s-
N/A
08
/01
/13
-05
/31/
14
64,5
00
58,5
81
22,4
73
36,1
08
RIS
ES
Pro
gram
s
N/A
0
6/0
1/1
4-0
7/31
/14
25,5
00
25,5
00
25,5
00
RIS
ES
Pro
gram
s
N/A
09
101/
14-
08/3
1/15
90
,000
6,
854
-29
,353
C
omm
unity
Cri
sis
Ass
ista
nce
for
Do
me
stic
Vio
lenc
e V
ictim
s s
N/A
05
/01/
13-
04/3
0114
68
,941
42
,426
17
,380
25
,046
T
ota
l Sta
te o
f Del
awar
e C
rim
ina
l Ju
stic
e C
ounc
il 97
7,2
54
250,
380
944,
632
Sta
te o
f Del
awar
e D
ep
art
me
nt o
f Se
rvic
es
for
Chi
ldre
n,
You
th,
and
the
ir F
am
ilie
s: D
ivis
ion
of Famil~ S
erv
ice
s S
tate
wid
e P
aren
t Edu
catio
n P
rogr
am
s N
/A
0710
1/1
3-06
/30/
14
126,
870
-(6
2,34
0)
-S
tate
wid
e P
aren
t Edu
catio
n P
rogr
am
s N
/A
07/0
1/14
-06
/30/
15
126,
870
126,
870
126,
870
Sp
arr
ow
Run
Res
ourc
e C
ente
r s
N/A
07
/01/
13-
06/3
0/14
53
,830
-
(29,
160
) -
Sp
arr
ow
Run
Res
ourc
e C
en
ter
s N
/A
07/0
1/1
4-0
6/3
0115
53
,830
53
,830
53
,830
S
pa
rro
w R
un
Res
ourc
e C
en
ter G
arde
n s
N/A
07
/01/
12 -
06/3
0/14
5,
000
-(7
7)
Spa
rrow
Ru
n R
esou
rce
Kid
s P
lace
s
N/A
0
7/0
1/1
4-0
6130
/15
14
,000
14
,000
14
,000
G
ove
rno
r Ter
ry C
hild
ren
's C
en
ter
s N
/A
07
/01
/13
-06/
30/1
4 63
0,49
9 40
4,63
4 64
,266
34
0,36
8 G
ove
rno
r T
erry
Chi
ldre
n's
Ce
nte
r s
N/A
07
/01/
14-0
6/30
/15
63
0,49
9 21
8,15
5 -
276,
311
Spe
cial
ized
Fo
ste
r Car
e s
NIA
07
/01/
13-
06/3
0/14
52
9,68
4 23
4,42
2 35
,721
19
8,70
1 S
peci
aliz
ed F
ost
er C
are
s N
IA
0710
1/14
-06/
30/1
5
529,
684
155,
390
179
613
Tot
al S
tate
of D
elaw
are
Dep
artm
ent o
f Se
rvic
es
for
Chi
ldre
n, Y
outh
, an
d th
eir
Fam
ilie
s 1
,207
,301
8,
410
1,18
9,69
3
Sta
te o
f Del
awar
e D
epar
tmen
t of H
ealth
an
d S
oci
al S
ervi
ces
Se
rvic
es
to L
exin
gton
Gre
en
Com
mun
ity
s N
/A
07
/01
/13
-06/
30/1
4 23
,300
(1
3,33
6)
-S
erv
ice
s to
Lex
ingt
on G
reen
Com
mun
ity
s N
IA
07/0
1/14
-06
/30/
15
23,5
33
23,5
00
23,5
00
Em
erge
ncy
Hou
sing
s
N/A
07
/01
/13
-06
/30/
14
49,4
50
31,3
80
5,77
9 25
,601
E
mer
genc
y H
ousi
ng
s N
/A
07
/01
/14
-09/
3011
5 49
,945
19
,210
24
,760
F
amily
Vis
itatio
n C
ente
rs
s N
/A
07
/01
/13
-06/
30/1
4 19
0,79
1 11
4,99
2 17
,405
97
,587
F
amily
Vis
itatio
n C
ente
rs
s N
/A
07
/01
/14
-06/
30/1
5 19
2,69
9 78
419
-
96 9
42
Tot
al S
tate
of D
elaw
are
De
pa
rtm
en
t of
Hea
lth a
nd S
ocia
l Ser
vice
s 26
7,50
1 9,
848
268
,390
Sta
te o
f Del
awar
e G
rant
-in-
Aid
F
amily
Sup
port
and
Pa
ren
t E
duca
tion
s N
/A
07/0
1/13
-06
/30/
14
132,
000
66,0
00
66,0
00
Fam
ily S
uppo
rt a
nd P
aren
t E
duca
tion
s N
/A
07/0
1/14
-06/
30/1
5 13
8,00
0 69
,000
-
69 0
00
Tot
al S
tate
of D
elaw
are
Gra
nt-i
n-A
id
135,
000
-13
5,00
0
Sta
te o
f Del
awar
e D
epar
tmen
t of J
ustic
e D
omes
tic V
iole
nce
Pro
gram
s
N/A
07
/01/
13-0
6/30
/14
79
7,70
0 39
8,85
0 (5
,063
) 39
8,85
0 D
omes
tic V
iole
nce
Pro
gram
s
NIA
07
/01/
14-0
6/30
/15
79
7,70
0 59
8,27
5 59
8,27
5 T
otal
Sta
te o
f Del
awar
e D
ep
art
me
nt o
f Ju
stic
e
997,
125
(5,0
63)
997,
125
Con
tinue
d on
ne
xt p
ag
e ..
-21
-
AC
CR
UE
D
(TE
MP
OR
AR
ILY
R
ES
TR
ICT
ED
) R
EV
EN
UE
AT
E
XP
EN
DIT
UR
ES
12
/31
/14
36,1
08
25,5
00
29,3
53
22,4
99
25,0
46
944,
632
---~
..!1
758
62,3
40
63,9
40
(62
,930
) 29
,160
-
22,1
85
(31
,645
) 8
(69
) 7,
500
(6,5
00)
340,
368
276,
311
58,1
56
198,
701
179
613
24,2
23
1 '18
0, 1
26
{18,
765)
13,3
36
11,4
23
(12,
077)
25
,601
24
,760
5,
550
97,5
87
96 9
42
18,5
23
269,
649
__
1_1,9
96
66,0
00
69 0
00
135,
000
403,
913
383,
912
787,
825
(214
,363
) (2
14,3
63)
CH
ILD
, IN
C.
SC
HE
DU
LE
OF
EX
PE
ND
ITU
RE
S O
F F
ED
ER
AL
AW
AR
DS
AN
D C
ER
TA
IN S
TA
TE
GR
AN
TS
F
OR
TH
E Y
EA
R E
ND
ED
DE
CE
MB
ER
31,
20
14
FE
DE
RA
L G
RA
NT
OR
I P
RO
JEC
T T
ITL
E
Pas
sed
thro
ugh
Ne
w C
astle
Cou
nty
De
pa
rtm
en
t of
Co
mm
un
ity S
erv
ice
s S
parr
ow R
un F
amily
Res
ourc
e C
en
ter-
CD
BG
Gra
nt
Spa
rrow
Run
Fam
ily R
esou
rce
Ce
nte
r-C
DB
G G
rant
T
otal
CF
DA
#1
4.2
18
FE
DE
RA
L S
OU
RC
E
CF
DA
C
OD
E
NU
MB
ER
14
.218
1
4.2
18
GR
AN
T P
ER
IOD
B
EG
INN
ING
/ E
ND
ING
DA
TE
S
07
/01
/13
-06/
30/1
4 07
/01
/14
-06
/30
/15
GR
AN
T
AM
OU
NT
5,00
0 5,
000
AC
CR
UE
D
(TE
MP
OR
AR
ILY
T
OT
AL
R
ES
TR
ICT
ED
) R
EC
EIV
ED
R
EV
EN
UE
AT
R
EV
EN
UE
F
OR
YE
AR
3,08
0 1,
52
5
4,60
5
01/0
1/14
60
4
60
4
RE
CO
GN
IZE
D
2,47
6 2,
526
5,00
2
TO
TA
L F
ED
ER
AL
AW
AR
DS
AN
D C
ER
TA
IN S
TA
TE
GR
AN
TS
$
3,6
32
,99
4
$2
64
,17
9
$ 3,
590
,184
Sou
rce
Cod
es:
D -
Dir
ect
Fun
din
g
I -
Ind
ire
ct F
und
ing
S -
Sta
te S
ha
re
Tot
al U
.S.
Dep
artm
ent o
f Hea
lth a
nd
Hum
an S
ervi
ces
(CF
DA
#93
.623
and
#93
.671
)
To
tal U
.S. D
epar
tmen
t of J
ustic
e (C
FD
A #
16.5
75
an
d #
16.5
88)
Tot
al U
.S. D
epar
tmen
t o
f H
ousi
ng a
nd U
rban
Dev
elop
men
t (C
FD
A #
14.2
18)
-22
-
Fed
eral
exp
endi
ture
s S
tate
exp
end
iture
s T
otal
EX
PE
ND
ITU
RE
S
2,47
6 2,
526
5,0
02
$ 3,
372,
576
$ 88
3,96
9 $
2,4
88,6
07
$
3,37
2,57
6 =
$ 40
4,08
7
$ 47
4,88
0
$ 5,
002
AC
CR
UE
D
(TE
MP
OR
AR
ILY
R
ES
TR
ICT
ED
) R
EV
EN
UE
AT
12
/31/
14
1,00
1 _
_
1,0
01
$ 3,
761
=
NOTE A
NOTE B
NOTE C
CHILD, INC.
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND CERTAIN STATE GRANTS
BASIS OF ACCOUNTING
All expenditures included in the schedule of expenditures of federal awards and certain state grants are presented on the basis that expenditures are reported to the respective federal grantor agencies. Accordingly, expenditures are recorded when the federal obligation is determined.
FEDERAL EXPENDITURES
The schedule of expenditures of federal awards and certain state grants reflects federal and state expenditures for all individual grants which were active during the fiscal year.
ACCRUED (TEMPORARILY RESTRICTED) REVENUE
The net balance of accrued (temporarily restricted) revenue is reflected in the financial statements of Child, Inc. as follows:
Contracts receivable Less nongrant contracts receivable
Contracts receivable
Temporarily restricted net assets: Grant-related restrictions
Total Accrued Revenue
-23-
$ 367,872 (36,527)
$ 331 ,345
$
(327,584)
3,761
CHILD, INC.
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
CHILD, INC.
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
PART A· SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued [unmodified, qualified, adverse, or disclaimer]:
Unmodified
Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified? • Noncompliance material to financial
statements noted?
Federal Awards
Internal control over major programs: • Material weakness(es) identified? • Significant deficiency(ies) identified?
Yes Yes
Yes
Yes Yes
_X_No _X_ None reported
_X_No
_X_No _X_ None reported
Type of auditor's report issued on compliance for major programs [unmodified, qualified, adverse, or disclaimer]:
Unmodified
Any audit findings disclosed that are required to be reported in accordance with Section 51 O(a) of OMB Circular A-133?
Identification of major program:
CFDA Number
16.575
Dollar threshold used to distinguish between Type A and Type B programs:
Auditee qualified as low-risk auditee?
Yes _X_No
Name of Federal Program or Cluster
Victims of Crime Assistance NOCAl
$ 300.000
_X_ Yes No
-24-
CHILD, INC.
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
PART B- FINDINGS RELATED TO FINANCIAL STATEMENTS
STATUS OF PRIOR YEAR FINDINGS
None.
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
None.
PART C - FINDINGS RELATED TO FEDERAL AWARDS
STATUS OF PRIOR YEAR FINDINGS
None.
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
None.
-25-