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NEW HORIZONS OF THE TREASURE COAST INC
Financial Statements
with Independent Auditorsrsquo Report
June 30 2013
(With Comparative Totals for June 30 2012)
Table of Contents
Page
Independent Auditorsrsquo Report 2 - 3 Financial Statements Statement of Financial Position 4 Statement of Activities and Changes in Net Assets 5 Statement of Functional Expenses 6 - 9 Statement of Cash Flows 10 Notes to Financial Statements 11 - 17 Additional Information ProgramCost Center Actual Expenses and Revenues Schedule 19 - 25 Schedule of Revenues 26 Schedule of Expenditures of Federal Awards and State Financial Assistance 27 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 28 Schedule of State Earnings 29 Schedule of Bed-Day Availability Payments 30 Schedule of Related Party Transaction Adjustments 31 Schedule of Local Financial Assistance 32 Independent Auditorsrsquo 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 33 - 34 Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General 35 - 36 Schedule of Findings and Questioned Costs 37 Summary Schedule of Prior Audit Findings 38 Management Letter 39
KMETZ NUTTALL ELWELL GRAHAM PLLC C2 ficL ~ublJ( 4cuur [ufC
Independent Auditors Report
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on tbe Financial Statements
We have audited the accompanying financial statements of New Horizons of the Treasure Coast Inc (a nonprofit organization) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managements 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
Auditors 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 disclosures in the financial statements The procedures selected depend on the auditors judgment including the assessment ofthe 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 entitys 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 entitys 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
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financiaJ position of New Horizons of the Treasure Coast Inc as of June 30 2013 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
2800 Ocean Drive Vera Beach Rarida 32963 T 772231 6902 F 772 314099 wwwknegcpacom
It- 1 r 1 ~ r M 1 I 1 1 I bull
T I
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on Summarized Comparative Information
We have previously audited New Horizons of the Treasure Coast Incrsquos 2012 financial statements and our report dated December 20 2012 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of and for the year ended June 30 2012 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 state financial assistance as required by the Office of Management and Budget Circular A-133 Audits of States and Local Governments and Non-Profit Organizations and Chapter 10650 Rules of the Auditor General is presented for the purposes of additional analysis and is not a required part of the financial statements In addition the accompanying programcost center actual expenses and revenue schedule schedule of revenues schedule of state earnings schedule of bed-day availability payments schedule of related party transaction adjustments and schedule of local financial assistance are also presented for additional analysis and are not a required part of the basic 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 subject 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 Governmental Auditing Standards we have also issued our report dated October 28 2013 on our consideration of New Horizons of the Treasure Coast Incrsquos 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 New Horizons of the Treasure Coast Incrsquos internal control over financial reporting and compliance
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-4-
New Horizons of the Treasure Coast IncStatement of Financial PositionJune 30 2013(With comparative totals for 2012)
2013 2012
Total (memo only)
Assets
Current AssetsCash and cash equivalents 4448363$ 4483115$ Patient accounts receivable less allowance for
uncollectible accounts of $1198585 708180 643586 Public support receivable 2214260 969735 Pledges receivable - current portion 61684 67394 Inventory - pharmaceuticalssupplies 60904 106606 Prepaid expenses and other current assets 206842 179745
Total current assets 7700233 6450181
Other AssetsPledges receivable - less current portion - 400 Deposits 61804 61841 Loan costs net of amortization 50595 84915 Construction in progress 509491 -
Total other assets 621890 147156
Property and Equipment net 9988813 10452468
Total assets 18310936$ 17049805$
Liabilities and Unrestricted Net Assets
Current LiabilitiesAccounts payable 197279$ 232457$ Accrued expenses 710571 706716 Patient deposits and employee funds 102943 43188 Current portion of long-term debt 192859 149145
Total current liabilities 1203652 1131506
Long-Term LiabilitiesLong-term debt less current portion 3991794 4155802
Net AssetsUnrestricted Designated 495956 500000 Undesignated 12619534 11262497
Total Net Assets 13115490 11762497
Total liabilities and net assets 18310936$ 17049805$
See accompanying notes to financial statements
-5-
New Horizons of the Treasure Coast IncStatement of Activities and Changes in Net AssetsFor the year ended June 30 2013(With comparative totals for 2012)
2012
Temporarily Total Unrestricted Restricted Total (memo only)
Revenues and other supportDepartment of Children amp Families
Southeast Florida Behavioral Health Network 12393282$ -$ 12393282$ 12490015$ County and other government grants 2955461 - 2955461 2910513 Contributions and donations 360850 - 360850 257512 Patient fees (net of contractual allowances
and discounts) 6931595 - 6931595 6521546 Provision for bad debts (743754) - (743754) (660178) In-kind contributions 1533070 - 1533070 1450645 Interest 2712 - 2712 2030 Other income 49699 - 49699 25659
Total revenues and other support 23482915 - 23482915 22997742
ExpensesProgram services
Case Management 802033 - 802033 729265 Forensic Case Management 88930 - 88930 107825 Intensive Case Management 428400 - 428400 467616 Mobile Crisis 297156 - 297156 285452 Residential Level I - SRT 1598970 - 1598970 1425637 Residential IV - CSS 243450 - 243450 318657 Crisis Stabilization 2797530 - 2797530 2474817 Outpatient Treatment 617329 - 617329 410223 Crisis SupportEmergency 1269187 - 1269187 1197852 Outpatient Medical Services 3899984 - 3899984 3572505 Supported Community Services 761659 - 761659 688719 Criminal Justice St Lucie Co 454163 - 454163 422976 FACT 1171969 - 1171969 1123515 ASA Independence Recovery 322232 - 322232 311192 ASA Outpatient Treatment 11550 - 11550 36574 Detox Residential 938632 - 938632 826772 Family Intervention 212629 - 212629 202367 CMH Case Management 478710 - 478710 435690 CMH Outpatient Treatment 783356 - 783356 836150 CMH Medical Services 291271 - 291271 310885 CMH Crisis Stabilization 2059000 - 2059000 1846329 Prevention-SAP 663373 - 663373 670396 Non-State Funded SAMH Cost Centers 340236 - 340236 354126 Non-SAMH Cost Centers 2316 - 2316 2919
Total program services 20534065 - 20534065 19058459
Supporting servicesAdministration 1595857 - 1595857 2248583 Support services - - 1005414
Total supporting services 1595857 - 1595857 3253997
Total expenses 22129922 - 22129922 22312456
Increase in net assets 1352993 - 1352993 685286 Net assets beginning of year 11762497 - 11762497 11077211
Net assets end of year 13115490$ -$ 13115490$ 11762497$ See accompanying notes to financial statements
2013
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
Table of Contents
Page
Independent Auditorsrsquo Report 2 - 3 Financial Statements Statement of Financial Position 4 Statement of Activities and Changes in Net Assets 5 Statement of Functional Expenses 6 - 9 Statement of Cash Flows 10 Notes to Financial Statements 11 - 17 Additional Information ProgramCost Center Actual Expenses and Revenues Schedule 19 - 25 Schedule of Revenues 26 Schedule of Expenditures of Federal Awards and State Financial Assistance 27 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 28 Schedule of State Earnings 29 Schedule of Bed-Day Availability Payments 30 Schedule of Related Party Transaction Adjustments 31 Schedule of Local Financial Assistance 32 Independent Auditorsrsquo 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 33 - 34 Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General 35 - 36 Schedule of Findings and Questioned Costs 37 Summary Schedule of Prior Audit Findings 38 Management Letter 39
KMETZ NUTTALL ELWELL GRAHAM PLLC C2 ficL ~ublJ( 4cuur [ufC
Independent Auditors Report
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on tbe Financial Statements
We have audited the accompanying financial statements of New Horizons of the Treasure Coast Inc (a nonprofit organization) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managements 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
Auditors 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 disclosures in the financial statements The procedures selected depend on the auditors judgment including the assessment ofthe 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 entitys 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 entitys 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
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financiaJ position of New Horizons of the Treasure Coast Inc as of June 30 2013 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
2800 Ocean Drive Vera Beach Rarida 32963 T 772231 6902 F 772 314099 wwwknegcpacom
It- 1 r 1 ~ r M 1 I 1 1 I bull
T I
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on Summarized Comparative Information
We have previously audited New Horizons of the Treasure Coast Incrsquos 2012 financial statements and our report dated December 20 2012 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of and for the year ended June 30 2012 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 state financial assistance as required by the Office of Management and Budget Circular A-133 Audits of States and Local Governments and Non-Profit Organizations and Chapter 10650 Rules of the Auditor General is presented for the purposes of additional analysis and is not a required part of the financial statements In addition the accompanying programcost center actual expenses and revenue schedule schedule of revenues schedule of state earnings schedule of bed-day availability payments schedule of related party transaction adjustments and schedule of local financial assistance are also presented for additional analysis and are not a required part of the basic 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 subject 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 Governmental Auditing Standards we have also issued our report dated October 28 2013 on our consideration of New Horizons of the Treasure Coast Incrsquos 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 New Horizons of the Treasure Coast Incrsquos internal control over financial reporting and compliance
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-4-
New Horizons of the Treasure Coast IncStatement of Financial PositionJune 30 2013(With comparative totals for 2012)
2013 2012
Total (memo only)
Assets
Current AssetsCash and cash equivalents 4448363$ 4483115$ Patient accounts receivable less allowance for
uncollectible accounts of $1198585 708180 643586 Public support receivable 2214260 969735 Pledges receivable - current portion 61684 67394 Inventory - pharmaceuticalssupplies 60904 106606 Prepaid expenses and other current assets 206842 179745
Total current assets 7700233 6450181
Other AssetsPledges receivable - less current portion - 400 Deposits 61804 61841 Loan costs net of amortization 50595 84915 Construction in progress 509491 -
Total other assets 621890 147156
Property and Equipment net 9988813 10452468
Total assets 18310936$ 17049805$
Liabilities and Unrestricted Net Assets
Current LiabilitiesAccounts payable 197279$ 232457$ Accrued expenses 710571 706716 Patient deposits and employee funds 102943 43188 Current portion of long-term debt 192859 149145
Total current liabilities 1203652 1131506
Long-Term LiabilitiesLong-term debt less current portion 3991794 4155802
Net AssetsUnrestricted Designated 495956 500000 Undesignated 12619534 11262497
Total Net Assets 13115490 11762497
Total liabilities and net assets 18310936$ 17049805$
See accompanying notes to financial statements
-5-
New Horizons of the Treasure Coast IncStatement of Activities and Changes in Net AssetsFor the year ended June 30 2013(With comparative totals for 2012)
2012
Temporarily Total Unrestricted Restricted Total (memo only)
Revenues and other supportDepartment of Children amp Families
Southeast Florida Behavioral Health Network 12393282$ -$ 12393282$ 12490015$ County and other government grants 2955461 - 2955461 2910513 Contributions and donations 360850 - 360850 257512 Patient fees (net of contractual allowances
and discounts) 6931595 - 6931595 6521546 Provision for bad debts (743754) - (743754) (660178) In-kind contributions 1533070 - 1533070 1450645 Interest 2712 - 2712 2030 Other income 49699 - 49699 25659
Total revenues and other support 23482915 - 23482915 22997742
ExpensesProgram services
Case Management 802033 - 802033 729265 Forensic Case Management 88930 - 88930 107825 Intensive Case Management 428400 - 428400 467616 Mobile Crisis 297156 - 297156 285452 Residential Level I - SRT 1598970 - 1598970 1425637 Residential IV - CSS 243450 - 243450 318657 Crisis Stabilization 2797530 - 2797530 2474817 Outpatient Treatment 617329 - 617329 410223 Crisis SupportEmergency 1269187 - 1269187 1197852 Outpatient Medical Services 3899984 - 3899984 3572505 Supported Community Services 761659 - 761659 688719 Criminal Justice St Lucie Co 454163 - 454163 422976 FACT 1171969 - 1171969 1123515 ASA Independence Recovery 322232 - 322232 311192 ASA Outpatient Treatment 11550 - 11550 36574 Detox Residential 938632 - 938632 826772 Family Intervention 212629 - 212629 202367 CMH Case Management 478710 - 478710 435690 CMH Outpatient Treatment 783356 - 783356 836150 CMH Medical Services 291271 - 291271 310885 CMH Crisis Stabilization 2059000 - 2059000 1846329 Prevention-SAP 663373 - 663373 670396 Non-State Funded SAMH Cost Centers 340236 - 340236 354126 Non-SAMH Cost Centers 2316 - 2316 2919
Total program services 20534065 - 20534065 19058459
Supporting servicesAdministration 1595857 - 1595857 2248583 Support services - - 1005414
Total supporting services 1595857 - 1595857 3253997
Total expenses 22129922 - 22129922 22312456
Increase in net assets 1352993 - 1352993 685286 Net assets beginning of year 11762497 - 11762497 11077211
Net assets end of year 13115490$ -$ 13115490$ 11762497$ See accompanying notes to financial statements
2013
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
KMETZ NUTTALL ELWELL GRAHAM PLLC C2 ficL ~ublJ( 4cuur [ufC
Independent Auditors Report
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on tbe Financial Statements
We have audited the accompanying financial statements of New Horizons of the Treasure Coast Inc (a nonprofit organization) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows for the year then ended and the related notes to the financial statements
Managements 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
Auditors 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 disclosures in the financial statements The procedures selected depend on the auditors judgment including the assessment ofthe 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 entitys 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 entitys 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
Opinion
In our opinion the financial statements referred to above present fairly in all material respects the financiaJ position of New Horizons of the Treasure Coast Inc as of June 30 2013 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
2800 Ocean Drive Vera Beach Rarida 32963 T 772231 6902 F 772 314099 wwwknegcpacom
It- 1 r 1 ~ r M 1 I 1 1 I bull
T I
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on Summarized Comparative Information
We have previously audited New Horizons of the Treasure Coast Incrsquos 2012 financial statements and our report dated December 20 2012 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of and for the year ended June 30 2012 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 state financial assistance as required by the Office of Management and Budget Circular A-133 Audits of States and Local Governments and Non-Profit Organizations and Chapter 10650 Rules of the Auditor General is presented for the purposes of additional analysis and is not a required part of the financial statements In addition the accompanying programcost center actual expenses and revenue schedule schedule of revenues schedule of state earnings schedule of bed-day availability payments schedule of related party transaction adjustments and schedule of local financial assistance are also presented for additional analysis and are not a required part of the basic 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 subject 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 Governmental Auditing Standards we have also issued our report dated October 28 2013 on our consideration of New Horizons of the Treasure Coast Incrsquos 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 New Horizons of the Treasure Coast Incrsquos internal control over financial reporting and compliance
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-4-
New Horizons of the Treasure Coast IncStatement of Financial PositionJune 30 2013(With comparative totals for 2012)
2013 2012
Total (memo only)
Assets
Current AssetsCash and cash equivalents 4448363$ 4483115$ Patient accounts receivable less allowance for
uncollectible accounts of $1198585 708180 643586 Public support receivable 2214260 969735 Pledges receivable - current portion 61684 67394 Inventory - pharmaceuticalssupplies 60904 106606 Prepaid expenses and other current assets 206842 179745
Total current assets 7700233 6450181
Other AssetsPledges receivable - less current portion - 400 Deposits 61804 61841 Loan costs net of amortization 50595 84915 Construction in progress 509491 -
Total other assets 621890 147156
Property and Equipment net 9988813 10452468
Total assets 18310936$ 17049805$
Liabilities and Unrestricted Net Assets
Current LiabilitiesAccounts payable 197279$ 232457$ Accrued expenses 710571 706716 Patient deposits and employee funds 102943 43188 Current portion of long-term debt 192859 149145
Total current liabilities 1203652 1131506
Long-Term LiabilitiesLong-term debt less current portion 3991794 4155802
Net AssetsUnrestricted Designated 495956 500000 Undesignated 12619534 11262497
Total Net Assets 13115490 11762497
Total liabilities and net assets 18310936$ 17049805$
See accompanying notes to financial statements
-5-
New Horizons of the Treasure Coast IncStatement of Activities and Changes in Net AssetsFor the year ended June 30 2013(With comparative totals for 2012)
2012
Temporarily Total Unrestricted Restricted Total (memo only)
Revenues and other supportDepartment of Children amp Families
Southeast Florida Behavioral Health Network 12393282$ -$ 12393282$ 12490015$ County and other government grants 2955461 - 2955461 2910513 Contributions and donations 360850 - 360850 257512 Patient fees (net of contractual allowances
and discounts) 6931595 - 6931595 6521546 Provision for bad debts (743754) - (743754) (660178) In-kind contributions 1533070 - 1533070 1450645 Interest 2712 - 2712 2030 Other income 49699 - 49699 25659
Total revenues and other support 23482915 - 23482915 22997742
ExpensesProgram services
Case Management 802033 - 802033 729265 Forensic Case Management 88930 - 88930 107825 Intensive Case Management 428400 - 428400 467616 Mobile Crisis 297156 - 297156 285452 Residential Level I - SRT 1598970 - 1598970 1425637 Residential IV - CSS 243450 - 243450 318657 Crisis Stabilization 2797530 - 2797530 2474817 Outpatient Treatment 617329 - 617329 410223 Crisis SupportEmergency 1269187 - 1269187 1197852 Outpatient Medical Services 3899984 - 3899984 3572505 Supported Community Services 761659 - 761659 688719 Criminal Justice St Lucie Co 454163 - 454163 422976 FACT 1171969 - 1171969 1123515 ASA Independence Recovery 322232 - 322232 311192 ASA Outpatient Treatment 11550 - 11550 36574 Detox Residential 938632 - 938632 826772 Family Intervention 212629 - 212629 202367 CMH Case Management 478710 - 478710 435690 CMH Outpatient Treatment 783356 - 783356 836150 CMH Medical Services 291271 - 291271 310885 CMH Crisis Stabilization 2059000 - 2059000 1846329 Prevention-SAP 663373 - 663373 670396 Non-State Funded SAMH Cost Centers 340236 - 340236 354126 Non-SAMH Cost Centers 2316 - 2316 2919
Total program services 20534065 - 20534065 19058459
Supporting servicesAdministration 1595857 - 1595857 2248583 Support services - - 1005414
Total supporting services 1595857 - 1595857 3253997
Total expenses 22129922 - 22129922 22312456
Increase in net assets 1352993 - 1352993 685286 Net assets beginning of year 11762497 - 11762497 11077211
Net assets end of year 13115490$ -$ 13115490$ 11762497$ See accompanying notes to financial statements
2013
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
To the Board of Directors New Horizons of the Treasure Coast Inc
Report on Summarized Comparative Information
We have previously audited New Horizons of the Treasure Coast Incrsquos 2012 financial statements and our report dated December 20 2012 expressed an unmodified opinion on those audited financial statements In our opinion the summarized comparative information presented herein as of and for the year ended June 30 2012 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 state financial assistance as required by the Office of Management and Budget Circular A-133 Audits of States and Local Governments and Non-Profit Organizations and Chapter 10650 Rules of the Auditor General is presented for the purposes of additional analysis and is not a required part of the financial statements In addition the accompanying programcost center actual expenses and revenue schedule schedule of revenues schedule of state earnings schedule of bed-day availability payments schedule of related party transaction adjustments and schedule of local financial assistance are also presented for additional analysis and are not a required part of the basic 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 subject 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 Governmental Auditing Standards we have also issued our report dated October 28 2013 on our consideration of New Horizons of the Treasure Coast Incrsquos 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 New Horizons of the Treasure Coast Incrsquos internal control over financial reporting and compliance
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-4-
New Horizons of the Treasure Coast IncStatement of Financial PositionJune 30 2013(With comparative totals for 2012)
2013 2012
Total (memo only)
Assets
Current AssetsCash and cash equivalents 4448363$ 4483115$ Patient accounts receivable less allowance for
uncollectible accounts of $1198585 708180 643586 Public support receivable 2214260 969735 Pledges receivable - current portion 61684 67394 Inventory - pharmaceuticalssupplies 60904 106606 Prepaid expenses and other current assets 206842 179745
Total current assets 7700233 6450181
Other AssetsPledges receivable - less current portion - 400 Deposits 61804 61841 Loan costs net of amortization 50595 84915 Construction in progress 509491 -
Total other assets 621890 147156
Property and Equipment net 9988813 10452468
Total assets 18310936$ 17049805$
Liabilities and Unrestricted Net Assets
Current LiabilitiesAccounts payable 197279$ 232457$ Accrued expenses 710571 706716 Patient deposits and employee funds 102943 43188 Current portion of long-term debt 192859 149145
Total current liabilities 1203652 1131506
Long-Term LiabilitiesLong-term debt less current portion 3991794 4155802
Net AssetsUnrestricted Designated 495956 500000 Undesignated 12619534 11262497
Total Net Assets 13115490 11762497
Total liabilities and net assets 18310936$ 17049805$
See accompanying notes to financial statements
-5-
New Horizons of the Treasure Coast IncStatement of Activities and Changes in Net AssetsFor the year ended June 30 2013(With comparative totals for 2012)
2012
Temporarily Total Unrestricted Restricted Total (memo only)
Revenues and other supportDepartment of Children amp Families
Southeast Florida Behavioral Health Network 12393282$ -$ 12393282$ 12490015$ County and other government grants 2955461 - 2955461 2910513 Contributions and donations 360850 - 360850 257512 Patient fees (net of contractual allowances
and discounts) 6931595 - 6931595 6521546 Provision for bad debts (743754) - (743754) (660178) In-kind contributions 1533070 - 1533070 1450645 Interest 2712 - 2712 2030 Other income 49699 - 49699 25659
Total revenues and other support 23482915 - 23482915 22997742
ExpensesProgram services
Case Management 802033 - 802033 729265 Forensic Case Management 88930 - 88930 107825 Intensive Case Management 428400 - 428400 467616 Mobile Crisis 297156 - 297156 285452 Residential Level I - SRT 1598970 - 1598970 1425637 Residential IV - CSS 243450 - 243450 318657 Crisis Stabilization 2797530 - 2797530 2474817 Outpatient Treatment 617329 - 617329 410223 Crisis SupportEmergency 1269187 - 1269187 1197852 Outpatient Medical Services 3899984 - 3899984 3572505 Supported Community Services 761659 - 761659 688719 Criminal Justice St Lucie Co 454163 - 454163 422976 FACT 1171969 - 1171969 1123515 ASA Independence Recovery 322232 - 322232 311192 ASA Outpatient Treatment 11550 - 11550 36574 Detox Residential 938632 - 938632 826772 Family Intervention 212629 - 212629 202367 CMH Case Management 478710 - 478710 435690 CMH Outpatient Treatment 783356 - 783356 836150 CMH Medical Services 291271 - 291271 310885 CMH Crisis Stabilization 2059000 - 2059000 1846329 Prevention-SAP 663373 - 663373 670396 Non-State Funded SAMH Cost Centers 340236 - 340236 354126 Non-SAMH Cost Centers 2316 - 2316 2919
Total program services 20534065 - 20534065 19058459
Supporting servicesAdministration 1595857 - 1595857 2248583 Support services - - 1005414
Total supporting services 1595857 - 1595857 3253997
Total expenses 22129922 - 22129922 22312456
Increase in net assets 1352993 - 1352993 685286 Net assets beginning of year 11762497 - 11762497 11077211
Net assets end of year 13115490$ -$ 13115490$ 11762497$ See accompanying notes to financial statements
2013
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-4-
New Horizons of the Treasure Coast IncStatement of Financial PositionJune 30 2013(With comparative totals for 2012)
2013 2012
Total (memo only)
Assets
Current AssetsCash and cash equivalents 4448363$ 4483115$ Patient accounts receivable less allowance for
uncollectible accounts of $1198585 708180 643586 Public support receivable 2214260 969735 Pledges receivable - current portion 61684 67394 Inventory - pharmaceuticalssupplies 60904 106606 Prepaid expenses and other current assets 206842 179745
Total current assets 7700233 6450181
Other AssetsPledges receivable - less current portion - 400 Deposits 61804 61841 Loan costs net of amortization 50595 84915 Construction in progress 509491 -
Total other assets 621890 147156
Property and Equipment net 9988813 10452468
Total assets 18310936$ 17049805$
Liabilities and Unrestricted Net Assets
Current LiabilitiesAccounts payable 197279$ 232457$ Accrued expenses 710571 706716 Patient deposits and employee funds 102943 43188 Current portion of long-term debt 192859 149145
Total current liabilities 1203652 1131506
Long-Term LiabilitiesLong-term debt less current portion 3991794 4155802
Net AssetsUnrestricted Designated 495956 500000 Undesignated 12619534 11262497
Total Net Assets 13115490 11762497
Total liabilities and net assets 18310936$ 17049805$
See accompanying notes to financial statements
-5-
New Horizons of the Treasure Coast IncStatement of Activities and Changes in Net AssetsFor the year ended June 30 2013(With comparative totals for 2012)
2012
Temporarily Total Unrestricted Restricted Total (memo only)
Revenues and other supportDepartment of Children amp Families
Southeast Florida Behavioral Health Network 12393282$ -$ 12393282$ 12490015$ County and other government grants 2955461 - 2955461 2910513 Contributions and donations 360850 - 360850 257512 Patient fees (net of contractual allowances
and discounts) 6931595 - 6931595 6521546 Provision for bad debts (743754) - (743754) (660178) In-kind contributions 1533070 - 1533070 1450645 Interest 2712 - 2712 2030 Other income 49699 - 49699 25659
Total revenues and other support 23482915 - 23482915 22997742
ExpensesProgram services
Case Management 802033 - 802033 729265 Forensic Case Management 88930 - 88930 107825 Intensive Case Management 428400 - 428400 467616 Mobile Crisis 297156 - 297156 285452 Residential Level I - SRT 1598970 - 1598970 1425637 Residential IV - CSS 243450 - 243450 318657 Crisis Stabilization 2797530 - 2797530 2474817 Outpatient Treatment 617329 - 617329 410223 Crisis SupportEmergency 1269187 - 1269187 1197852 Outpatient Medical Services 3899984 - 3899984 3572505 Supported Community Services 761659 - 761659 688719 Criminal Justice St Lucie Co 454163 - 454163 422976 FACT 1171969 - 1171969 1123515 ASA Independence Recovery 322232 - 322232 311192 ASA Outpatient Treatment 11550 - 11550 36574 Detox Residential 938632 - 938632 826772 Family Intervention 212629 - 212629 202367 CMH Case Management 478710 - 478710 435690 CMH Outpatient Treatment 783356 - 783356 836150 CMH Medical Services 291271 - 291271 310885 CMH Crisis Stabilization 2059000 - 2059000 1846329 Prevention-SAP 663373 - 663373 670396 Non-State Funded SAMH Cost Centers 340236 - 340236 354126 Non-SAMH Cost Centers 2316 - 2316 2919
Total program services 20534065 - 20534065 19058459
Supporting servicesAdministration 1595857 - 1595857 2248583 Support services - - 1005414
Total supporting services 1595857 - 1595857 3253997
Total expenses 22129922 - 22129922 22312456
Increase in net assets 1352993 - 1352993 685286 Net assets beginning of year 11762497 - 11762497 11077211
Net assets end of year 13115490$ -$ 13115490$ 11762497$ See accompanying notes to financial statements
2013
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-5-
New Horizons of the Treasure Coast IncStatement of Activities and Changes in Net AssetsFor the year ended June 30 2013(With comparative totals for 2012)
2012
Temporarily Total Unrestricted Restricted Total (memo only)
Revenues and other supportDepartment of Children amp Families
Southeast Florida Behavioral Health Network 12393282$ -$ 12393282$ 12490015$ County and other government grants 2955461 - 2955461 2910513 Contributions and donations 360850 - 360850 257512 Patient fees (net of contractual allowances
and discounts) 6931595 - 6931595 6521546 Provision for bad debts (743754) - (743754) (660178) In-kind contributions 1533070 - 1533070 1450645 Interest 2712 - 2712 2030 Other income 49699 - 49699 25659
Total revenues and other support 23482915 - 23482915 22997742
ExpensesProgram services
Case Management 802033 - 802033 729265 Forensic Case Management 88930 - 88930 107825 Intensive Case Management 428400 - 428400 467616 Mobile Crisis 297156 - 297156 285452 Residential Level I - SRT 1598970 - 1598970 1425637 Residential IV - CSS 243450 - 243450 318657 Crisis Stabilization 2797530 - 2797530 2474817 Outpatient Treatment 617329 - 617329 410223 Crisis SupportEmergency 1269187 - 1269187 1197852 Outpatient Medical Services 3899984 - 3899984 3572505 Supported Community Services 761659 - 761659 688719 Criminal Justice St Lucie Co 454163 - 454163 422976 FACT 1171969 - 1171969 1123515 ASA Independence Recovery 322232 - 322232 311192 ASA Outpatient Treatment 11550 - 11550 36574 Detox Residential 938632 - 938632 826772 Family Intervention 212629 - 212629 202367 CMH Case Management 478710 - 478710 435690 CMH Outpatient Treatment 783356 - 783356 836150 CMH Medical Services 291271 - 291271 310885 CMH Crisis Stabilization 2059000 - 2059000 1846329 Prevention-SAP 663373 - 663373 670396 Non-State Funded SAMH Cost Centers 340236 - 340236 354126 Non-SAMH Cost Centers 2316 - 2316 2919
Total program services 20534065 - 20534065 19058459
Supporting servicesAdministration 1595857 - 1595857 2248583 Support services - - 1005414
Total supporting services 1595857 - 1595857 3253997
Total expenses 22129922 - 22129922 22312456
Increase in net assets 1352993 - 1352993 685286 Net assets beginning of year 11762497 - 11762497 11077211
Net assets end of year 13115490$ -$ 13115490$ 11762497$ See accompanying notes to financial statements
2013
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-6-
New Horizons of the Treasure Coast IncStatement of Functional ExpensesFor the year ended June 30 2013(With comparative totals for 2012)
Forensic Intensive Residential ResidentialCase Case Case Mobile Level I IV Crisis Outpatient
Management Management Management Crisis SRT CSS Stabilization Treatment
Personnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ 453$ 1663041$ 412346$ Fringe benefits 117833 11517 65961 45158 216253 101 382744 91211
Total personnel expenses 628280 53646 344181 237873 1130184 554 2045785 503557
Other Expenses
Building occupancy 42316 1547 19001 11049 43190 14 75355 33260 Professional services - - - - 54500 - 112147 - Travel 9259 4252 6304 1711 3344 - 8185 5077 Equipment costs 11093 506 3417 2092 14778 166 24788 10408 Food services 597 - 430 2 112484 - 141161 4 Medical and pharmacy 116 4 70 22 62244 - 86457 54 Subcontracted services 22620 1826 11841 8035 40105 69 77874 24307 Depreciation 19075 1958 8380 11052 32667 - 58696 8349 Insurance 14585 1335 7557 12207 41261 13 74836 13849 Interest - - - 6946 22539 - 43182 2983 Telephone 29017 2311 15182 4100 6997 4 9951 9654 Operating suppliesexpenses 5354 229 2217 1952 11067 31 26667 5021 Other expenses 19721 21316 9820 115 23610 242599 12446 806
Total other expenses 173753 35284 84219 59283 468786 242896 751745 113772
Total expenses 802033$ 88930$ 428400$ 297156$ 1598970$ 243450$ 2797530$ 617329$
Program Services
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-7-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
Crisis Outpatient Supported Criminal ASA ASASupport Medical Community Justice Independence Outpatient Detox
Emergency Services Services St Lucie Co FACT Recovery Treatment Residential
Personnel expenses
Salaries 853303$ 1367695$ 476099$ 223842$ 664985$ 176585$ 4315$ 534543$ Fringe benefits 192428 255559 111397 54000 132327 48775 1731 121073
Total personnel expenses 1045731 1623254 587496 277842 797312 225360 6046 655616
Other Expenses
Building occupancy 50037 43809 39633 1586 17293 14735 860 27167 Professional services - 385556 - - - - - 62855 Travel 2374 3884 12537 791 19227 4337 1432 1115 Equipment costs 14194 18316 6801 1748 8943 2383 173 12330 Food services 12722 13 3032 2 799 31375 - 59136 Medical and pharmacy 2844 1629598 122 24281 675 1551 1 21735 Subcontracted services 47787 70175 20503 8510 23593 7953 803 26758 Depreciation 18096 29565 23299 2745 28821 8887 547 19989 Insurance 26356 60063 23520 6593 35432 10619 419 24037 Interest 28374 3833 - - - 7757 - 13814 Telephone 7646 15494 20041 2964 22179 2169 226 3523 Operating suppliesexpenses 11225 13512 4296 1134 3453 3048 1041 7062 Other expenses 1801 2912 20379 125967 214242 2058 2 3495
Total other expenses 223456 2276730 174163 176321 374657 96872 5504 283016
Total expenses 1269187$ 3899984$ 761659$ 454163$ 1171969$ 322232$ 11550$ 938632$
Program Services
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-8-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013(With comparative totals for 2012)
CMH CMH CMH CMH Non-State Non-SAMH TotalFamily Case Outpatient Medical Crisis Prevention Funded SAMH Cost Program
Intervention Management Treatment Services Stabilization SAP Cost Centers Centers Services
Personnel expenses
Salaries 119200$ 305530$ 488936$ 212470$ 1127278$ 434012$ 225452$ -$ 11227527$ Fringe benefits 28208 63766 103100 44731 227099 108173 44894 - 2468039
Total personnel expenses 147408 369296 592036 257201 1354377 542185 270346 - 13695566
Other Expenses
Building occupancy 13349 27589 28776 4025 75833 29067 12388 - 611879 Professional services - - - - 48739 - 6588 - 670385 Travel 6105 14750 22083 1931 1273 8597 6159 - 144727 Equipment costs 1771 4176 5885 1230 21087 6300 2777 - 175362 Food services 1 62 4 1 73866 - 5763 - 441454 Medical and pharmacy 13 29 3656 48 52601 1 6 2316 1888444 Subcontracted services 19705 22350 76245 13952 93484 17672 9184 - 645351 Depreciation 3659 7866 12103 4294 149988 6907 3318 - 460261 Insurance 4175 8656 14792 4519 38445 14029 11080 - 448378 Interest - - - - 118641 - 1387 - 249456 Telephone 4874 20104 18138 2082 10865 17170 3419 - 228110 Operating suppliesexpenses 1319 3195 5675 1880 12100 5221 4840 - 131539 Other expenses 10250 637 3963 108 7701 16224 2981 - 743153
Total other expenses 65221 109414 191320 34070 704623 121188 69890 2316 6838499
Total expenses 212629$ 478710$ 783356$ 291271$ 2059000$ 663373$ 340236$ 2316$ 20534065$
Program Services
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-9-
New Horizons of the Treasure Coast IncStatement of Functional Expenses (continued)
For the year ended June 30 2013 (With comparative totals for 2012)
2013 2012
Total Total (memo only)
Support
Administration Services Total
Personnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ 12243650$ Fringe benefits 189793 55623 245416 2713455 2688287
Total personnel expenses 1090011 274618 1364629 15060195 14931937
Other Expenses
Building occupancy 3683 4898 8581 620460 631396 Professional services 102207 - 102207 772592 915853 Travel 21054 40 21094 165821 163563 Equipment costs 13136 24821 37957 213319 189576 Food services 4277 (234536) (230259) 211195 203044 Medical and pharmacy 6241 (88401) (82160) 1806284 1738495 Subcontracted services 48329 8585 56914 702265 856569 Depreciation 46242 214 46456 506717 553529 Insurance 47428 6611 54039 502417 473682 Interest - - - 249456 270798 Telephone 3731 1028 4759 232869 210482 Operating suppliesexpenses 58843 2086 60929 192468 236973 Other expenses 150675 36 150711 893864 936559
Total other expenses 505846 (274618) 231228 7069727 7380519
Total expenses 1595857$ -$ 1595857$ 22129922$ 22312456$
See accompanying notes to financial statements
Supporting Services
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-10-
New Horizons of the Treasure Coast IncStatement of Cash FlowsFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
Total(memo only)
Cash flows from operating activitiesIncrease in net assets 1352993$ 685286$
Adjustments to reconcile increase in unrestricted net assets to net cash flows provided by operating activities
Depreciation 506717 553529 Amortization 4305 4826 Loss on disposal of property and equipment 9161 21067 Loss on mortgage issue costs 81250 -
(Increase) decrease in Patient accounts receivable net (64594) 99191 Public support receivable (1244525) (377448) Pledges receivable 6110 112838 Inventory - pharmaceuticalssupplies 45702 (16712) Prepaid expenses and other current assets (27097) 14620 Deposits 37 18175
Increase (decrease) in Accounts payable (35178) (86142) Accrued expenses 3855 60255 Patient deposits and employee funds 59755 (20639)
Net cash provided by operating activities 698491 1068846
Cash flows from investing activitiesPurchase of buildings and equipment (52223) (98120) Payments for construction in progress (509491) -
Net cash used for investing activities (561714) (98120)
Cash flows from financing activitiesProceeds from long-term debt 4216000 - Payments on long-term debt (4336294) (137539) Payments for loan costs (51235) (14468)
Net cash used for financing activities (171529) (152007)
Net increase (decrease) in cash (34752) 818719
Cash and cash equivalents beginning of year 4483115 3664396
Cash and cash equivalents end of year 4448363$ 4483115$
See accompanying notes to financial statements
Supplemental disclosuresCash paid for interest 249456$ 270798$
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-11-
New Horizons of the Treasure Coast Inc Notes to Financial Statements Note 1 ndash Nature of Organization and Summary of Significant Accounting Policies
Organization New Horizons of the Treasure Coast Inc (New Horizons) is a Florida nonprofit organization incorporated in September 1958 to provide treatment counseling and prevention for mental health drug and alcohol related problems to residents of St Lucie Indian River Martin and Okeechobee Counties Florida Method of Accounting The accompanying financial statements have been prepared in accordance with generally accepted accounting principals using the accrual basis of accounting Basis of Presentation In accordance with ASC 958-205-05-6 New Horizons reports 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 New Horizons has no temporarily or permanently restricted net assets Contributions Contributions received are recorded as unrestricted temporarily restricted or permanently restricted support depending on the existence andor nature of any donor restrictions Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction When a restriction expires that is when a stipulated time restriction ends or purpose of restriction is accomplished temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions New Horizons receives contributed services including counseling instruction and other volunteer services related to each of its programs These services do not meet ASC 958-605-25-16 criteria for recognizing donated services and accordingly are not recognized as revenue in the accompanying financial statements Costs incurred for soliciting contributions and for promotional materials as well as costs of holding fundraising events are recorded as fundraising expenses and are included in general and administrative expenses in the accompanying financial statements Public Support Public support revenue from government grants is recorded based upon the terms of the grantor allotment which generally provides that revenue is earned when the allowable costs or units of service of the specific grant provisions have been incurred or provided Such revenue is subject to audit by the grantor and if the examination results in a non-allowance of units of service or expenses New Horizons will be required to reimburse any overpayments
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-12-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Public Support Revenues and Expenses For purposes of presentation all transactions are deemed by management to be ongoing major or central to the provision of health care services and accordingly are recorded as public support revenues and expenses Cash and Cash Equivalents New Horizons classifies all highly liquid investments with a maturity of 90 days or less when purchased as cash equivalents At June 30 2013 cash included patient custodial accounts of $90040 Patient Accounts Receivable Accounts receivable are reduced by an allowance for doubtful accounts In evaluating the collectability of accounts receivable New Horizons analyzes its past history and identifies trends for each of its major payor sources of revenue to estimate the appropriate allowance for doubtful accounts and provision for bad debts Management regularly reviews data about these major payor sources of revenue in evaluating the sufficiency of the allowance for doubtful accounts For receivables associated with services provided to patients who have third-party coverage New Horizons analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for bad debts if necessary For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill) New Horizons records a significant provision for bad debt in the period of service on the basis of its past experience which indicates that many patients are unable or unwilling to pay the portion of their bill for which the are financially responsible The difference between the standard rates (or the discount rates if negotiated) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts Inventories Inventories of medical office and janitorial supplies and forms are stated at the lower of cost or market with cost determined on a first-in first-out basis (FIFO) Property and Equipment Property and equipment acquisitions greater than $1000 is capitalized and is stated at cost Donated property and equipment is recorded at the fair market value at the date of the gift Depreciation is provided on a straight-line basis over the estimated useful life of the related assets Amortization of equipment under capital leases is included in depreciation expense and accumulated depreciation Estimated useful lives of property and equipment range as follows
Land and improvements 5 - 25 yearsBuilding and improvements 5 - 40 yearsFurniture and equipment 3 - 20 yearsLeasehold improvements 3 - 20 years
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-13-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 1 ndash Summary of Significant Accounting Policies (continued)
Property and Equipment (continued) Fixed assets acquired by New Horizons with state monies are considered to be owned by New Horizons Florida administrative code provides that real property purchased constructed or expanded with state funds shall be used for the originally authorized purpose for a period of twenty years If the property is not used for the originally authorized purpose for twenty years the state maintains an equitable interest in the property purchased as well as the right to determine the use of any proceeds from the sale of these assets New Horizons obtains approval from the state when the use of such property is changed The following is a schedule of fixed assets which have a twenty-year limitation
Year
2010 Childrens Crisis and Stabilization Unit 1590000$ 2001 SRT renovations 315800 2000 Land-Midway Road 550000 1997 Crisis Stabilization Unit 4350000
6805800$
Description
New Horizons has purchased certain equipment and beds with Federal and State funds in the amounts of $70173 and $491201 respectively These assets are restricted for specific purpose and the grantors maintain the right to reclaim equipment at the end of the contract period or if the contract is terminated
Concentration of Credit Risk New Horizons grants credit without collateral to its patients Credit losses are provided for in the accompanying financial statements as an allowance for uncollectible patient accounts receivable and have consistently been within managementrsquos expectations Income Tax Status New Horizons is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes on related income pursuant to section 501(a) of the internal Revenue Code and Chapter 22013 of the Florida Statutes New Horizons believes that it has appropriate support for any tax positions taken and as such does not have any uncertain tax positions that are material to the financial statements In addition New Horizons has been determined not to be a private foundation within the meaning of Section 509(a) of the Code Functional Allocation of Expenses The cost of providing the various programs and other activities has been summarized on a functional basis in the statement of functional expenses Accordingly certain costs have been allocated among the programs and supporting services benefited Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures Accordingly actual results could differ from those estimates
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-14-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Subsequent Events Management has evaluated subsequent events through October 28 2013 the date the financial statements were available to be issued
Note 2 ndash Uninsured Cash and Cash Equivalent Balances
Corporate cash accounts at banking institutions and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) up to $250000 in total per institution and regardless of deposit category Money market funds maintained with brokerage firms are insured by the Securities Investor Protection Corporation (SIPC) up to $250000 As of June 30 2013 New Horizons uninsured cash balance was approximately $2273000 Approximately $2000000 of this was collateralized at the institution level by specific Federal Home Loan Bank securities
Note 3 ndash Pledges Receivable
Pledges receivable consist of the following at June 30 2013
Due in Due in1 Year 1 - 5 Years Total
Capital campaign pledges receivable 61684$ -$ 61684$
Less Allowance for uncollectible pledges - - -
Net pledges receivable 61684$ -$ 61684$
The effect of a discount rate on the pledges receivable has been determined to be immaterial to these financial statements Uncollectible pledges are expected to be insignificant The capital campaign pledges receivable were restricted in use for construction related costs and expenses of the new facility however because the costs have already been incurred the restriction has been met
Note 4 ndash Property and Equipment net
Balance BalanceJune 30 Additions Deletions June 30
2012 2013
Land and improvements 1787348$ 6200$ -$ 1793548$ Building and improvements 12234590 26895 (15622) 12245863 Furniture and equipment 1943080 19128 (317907) 1644301 Leasehold improvements 35417 - - 35417
16000435 52223 (333529) 15719129
Accumulated depreciation (5547967) (506717) 324368 (5730316)
10452468$ (454494)$ (9161)$ 9988813$
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-15-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 5 ndash Line of Credit
New Horizons originally opened a bank line of credit on August 19 2009 for $1000000 with an initial term of one year The line of credit has been renewed and the term extended through March 1 2014 The interest rate is equal to the Wall Street Journal Prime Rate plus 1 or 45 whichever is higher Interest is payable monthly The line of credit is secured by a Security Agreement and UCC Financing Statement which encumbers personal property inventory and receivables situated in St Lucie County Florida The line of credit balance at June 30 2013 was $0
Note 6 ndash Long-Term Debt
Long-term debt consists of the following at June 30 2013
Mortgage payable secured by real estate and fixturessituated in St Lucie County Florida dueApril 2029 monthly principal and interest payments of $29825 at a fixed interest rate of 397 for the firsteight years and then adjusted to an index rate plus 300basis points with a minimum interest rate of 397 forthe remaining term of the loan 4184653$
4184653
Less amounts due within one year (192859)
3991794$
The following schedule represents aggregate maturities on long-term debt
Year EndingJune 30
2014 192859$ 2015 200774 2016 209014 2017 217592 2018 226593
Thereafter 3137821
4184653$
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-16-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued)
Note 7 ndash Net Assets
Net assets designated consist of resources that have been voluntarily set aside by the Board of Directors of New Horizons for future capital projects
Note 8 ndash Patient Fees for Services
New Horizons provides services to patients regardless of their ability to pay or access to third-party medical insurance coverage Patient fees for services are recorded from sliding fee scales and other reimbursement methods which are based on an assessment of the patientrsquos ability to pay New Horizons provides care to patients who meet certain criteria under its charity care policy at amounts less than its established rates Since New Horizons does not pursue collection of amounts determined to qualify as charity care it is not reported as revenue On the basis of historical experience a significant portion of New Horizons uninsured patients will be unable or unwilling to pay for the services provided Thus New Horizons records a significant provision for bad debts related to uninsured patients in the period the services are provided Unreimbursed charity care provided is excluded from gross patient service revenue Charity services provided were $14312921 for the year ended June 30 2013 New Horizons recognizes patient service revenue associated with services provided to patients who have third-party payor coverage on the basis of contractual rates for the services rendered For uninsured patients that do not qualify for charity care New Horizons recognizes revenue based on the basis of its standard rates for services (or on the basis of discounted rates if negotiated or provided by policy) Patient service revenue net of contractual allowance and discounts (but before the provision for bad debts) recognized in the period from these major payor sources is as follows
Third-Party TotalPayors Self-Pay All Payors
Patient Service Revenue (net of contractual allowances and discounts) 5901226 1030369 6931595$
Note 9 ndash In-Kind Contributions
New Horizons receives donated medication from pharmaceutical companies for eligible needy clients and has estimated the value to be $1533070 for the year ended June 30 2013 This amount has been recognized in the accompanying financial statements as an in-kind contribution and as medical and pharmacy expense
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-17-
New Horizons of the Treasure Coast Inc Notes to Financial Statements (continued) Note 10 ndash Retirement Plan
New Horizons participates in a defined contribution retirement plan covering substantially all eligible employees which is based on a minimum length of service New Horizonsrsquo contribution to the Plan is equal to a percentage of the compensation of participants Effective May 25 2006 contribution rates decreased from a range of 2 to 6 to the new range of 1 to 3 However participants must make contributions representing percentages of their gross salary ranging from 1 to 3 in order to obtain employer matching benefits New Horizonsrsquo contribution to the retirement plan for the year ended June 30 2013 was $196443
Note 11 ndash Operating Leases
New Horizons leases various facilities from third parties Rental expense incurred under operating leases for the year ending June 30 2013 amounted to $106154 The future minimum rental payments are as follows
June 30 2014 104766$ June 30 2015 29681
134447$
Note 12 ndash Malpractice and Professional Liability Insurance
New Horizons has an occurrence-based medical malpractice and professional liability policy The policy coverage is limited to $1000000 per occurrence and $3000000 in aggregate with no self-insured retention Management is unaware of any claim against New Horizons not covered by insurance requiring accrual in the accompanying financial statements Incurred but not reported losses cannot be estimated by management and therefore no accrual has been included in the accompanying financial statements
Note 13 ndash Dependency on Governmental Support New Horizons receives a substantial amount of support from state and local governmental agencies
for specific programs supporting poor and indigent clients A reduction in the level of future support from the state and local governmental agencies could have a substantial effect on these programs and activities
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
ADDITIONAL INFORMATION
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-19-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues ScheduleFor the year ended June 30 2013
Forensic Intensive ResidentialCase Case Case Mobile Level I
Management Management Management Crisis SRT
Funding Sources and RevenuesState SAMH Funding
District 15 472816$ 101145$ 183150$ 225293$ 1650897$
Other Govt FundingOther State Agency funding - - - - - Medicaid 183102 - 103126 - - Other government 118908 - 129828 35798 -
Total other govt funding 302010 - 232954 35798 -
All Other Revenues1st and 2nd party payments (7204) - (3670) - 14233 3rd party pymts (except Medicare) 289909 - 100870 - 37111 Medicare - - - - - Contributions and donations 1295 - 500 - 125 Other income (211) - - (318) (1205) In-kind - - - - -
Total all other revenues 283789 - 97700 (318) 50264
Total funding 1058615$ 101145$ 513804$ 260773$ 1701161$
Expense CategoriesPersonnel expenses
Salaries 510447$ 42129$ 278220$ 192715$ 913931$ Fringe benefits 117833 11517 65961 45158 216253
Total personnel expenses 628280 53646 344181 237873 1130184
Other ExpensesBuilding occupancy 42316 1547 19001 11049 43190 Professional services - - - - 54500 Travel 9259 4252 6304 1711 3344 Equipment costs 11093 506 3417 2092 14778 Food services 597 - 430 2 112484 Medical and pharmacy 116 4 70 22 62244 Subcontracted services 22620 1826 11841 8035 40105 Depreciation 19075 1958 8380 11052 32667 Insurance 14585 1335 7557 12207 41261 Interest - - - 6946 22539 Telephone 29017 2311 15182 4100 6997 Operating suppliesexpenses 5354 229 2217 1952 11067 Other expenses 19721 21316 9820 115 23610
Total other expenses 173753 35284 84219 59283 468786
Total personnel and other expenses 802033 88930 428400 297156 1598970
Distributed Indirect CostsAdministration 54899 5072 28941 22228 131878 Other support - - - - -
Total distrd indirect costs 54899 5072 28941 22228 131878
Total Actual Operating Expenses 856932 94002 457341 319384 1730848 Unallowable Costs 6357 655 2786 3690 10892
Total allowable oper expenses 850575$ 93347$ 454555$ 315694$ 1719956$
Capital expenditures 934$ -$ -$ 1216$ 14076$
Program Services
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-20-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Residential Crisis OutpatientIV Crisis Outpatient Support Medical
CSS Stabilization Treatment Emergency Services
Funding Sources and RevenuesState SAMH Funding
District 15 354567$ 2130422$ -$ 1247726$ 1507021$
Other Govt FundingOther State Agency funding - - - - - Medicaid - - 106685 - 235426 Other government - 239880 23240 158538 235356
Total other govt funding - 239880 129925 158538 470782
All Other Revenues1st and 2nd party payments 79944 (3480) 10120 (755) 24203 3rd party pymts (except Medicare) - 697344 405237 (576) 748422 Medicare - - 105681 - 188783 Contributions and donations - 150 - - - Other income - (2114) (348) (1408) (389) In-kind - - - - 1532884
Total all other revenues 79944 691900 520690 (2739) 2493903
Total funding 434511$ 3062202$ 650615$ 1403525$ 4471706$
Expense CategoriesPersonnel expenses
Salaries 453$ 1663041$ 412346$ 853303$ 1367695$ Fringe benefits 101 382744 91211 192428 255559
Total personnel expenses 554 2045785 503557 1045731 1623254
Other ExpensesBuilding occupancy 14 75355 33260 50037 43809 Professional services - 112147 - - 385556 Travel - 8185 5077 2374 3884 Equipment costs 166 24788 10408 14194 18316 Food services - 141161 4 12722 13 Medical and pharmacy - 86457 54 2844 1629598 Subcontracted services 69 77874 24307 47787 70175 Depreciation - 58696 8349 18096 29565 Insurance 13 74836 13849 26356 60063 Interest - 43182 2983 28374 3833 Telephone 4 9951 9654 7646 15494 Operating suppliesexpenses 31 26667 5021 11225 13512 Other expenses 242599 12446 806 1801 2912
Total other expenses 242896 751745 113772 223456 2276730
Total personnel and other expenses 243450 2797530 617329 1269187 3899984
Distributed Indirect CostsAdministration 44307 238843 49678 95179 194684 Other support - - - - -
Total distrd indirect costs 44307 238843 49678 95179 194684
Total Actual Operating Expenses 287757 3036373 667007 1364366 4094668 Unallowable Costs - 19607 2738 5964 9881
Total allowable oper expenses 287757$ 3016766$ 664269$ 1358402$ 4084787$
Capital expenditures -$ 15695$ 1463$ 5522$ 1639$
Program Services
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-21-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Supported Criminal ASACommunity Justice Total Independence
Services St Lucie Co FACT AMH Revenues Recovery
Funding Sources and RevenuesState SAMH Funding
District 15 431367$ 67323$ 1209024$ 9580751$ 106458$
Other Govt FundingOther State Agency funding - - - - - Medicaid 156525 3548 - 788412 - Other government 130827 415192 - 1487567 166435
Total other govt funding 287352 418740 - 2275979 166435
All Other Revenues1st and 2nd party payments (12577) (851) - 99963 115680 3rd party pymts (except Medicare) 192964 100 - 2471381 - Medicare - 80 - 294544 - Contributions and donations 260 - 300 2630 - Other income 3357 - 2944 308 (401) In-kind - - - 1532884 -
Total all other revenues 184004 (671) 3244 4401710 115279
Total funding 902723$ 485392$ 1212268$ 16258440$ 388172$
Expense CategoriesPersonnel expenses
Salaries 476099$ 223842$ 664985$ 7599206$ 176585$ Fringe benefits 111397 54000 132327 1676489 48775
Total personnel expenses 587496 277842 797312 9275695 225360
Other ExpensesBuilding occupancy 39633 1586 17293 378090 14735 Professional services - - - 552203 - Travel 12537 791 19227 76945 4337 Equipment costs 6801 1748 8943 117250 2383 Food services 3032 2 799 271246 31375 Medical and pharmacy 122 24281 675 1806487 1551 Subcontracted services 20503 8510 23593 357245 7953 Depreciation 23299 2745 28821 242703 8887 Insurance 23520 6593 35432 317607 10619 Interest - - - 107857 7757 Telephone 20041 2964 22179 145540 2169 Operating suppliesexpenses 4296 1134 3453 86158 3048 Other expenses 20379 125967 214242 695734 2058
Total other expenses 174163 176321 374657 5155065 96872
Total personnel and other expenses 761659 454163 1171969 14430760 322232
Distributed Indirect CostsAdministration 52662 25510 64447 1008328 22676 Other support - - - - -
Total distrd indirect costs 52662 25510 64447 1008328 22676
Total Actual Operating Expenses 814321 479673 1236416 15439088 344908 Unallowable Costs 7762 - - 70332 -
Total allowable oper expenses 806559$ 479673$ 1236416$ 15368756$ 344908$
Capital expenditures -$ -$ -$ 40545$ 1806$
Program Services
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-22-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
ASA CMHOutpatient Detox Family Total Case Treatment Residential Intervention ASA Revenues Management
Funding Sources and RevenuesState SAMH Funding
District 15 -$ 694625$ 255390$ 1056473$ 56373$
Other Govt FundingOther State Agency funding - - - - - Medicaid 1444 - - 1444 55902 Other government - 204321 - 370756 64366
Total other govt funding 1444 204321 - 372200 120268
All Other Revenues1st and 2nd party payments (1325) 42564 - 156919 (8310) 3rd party pymts (except Medicare) 49 114649 - 114698 313546 Medicare 23 - - 23 - Contributions and donations - 100 - 100 100 Other income - (722) - (1123) (137) In-kind - - - - -
Total all other revenues (1253) 156591 - 270617 305199
Total funding 191$ 1055537$ 255390$ 1699290$ 481840$
Expense CategoriesPersonnel expenses
Salaries 4315$ 534543$ 119200$ 834643$ 305530$ Fringe benefits 1731 121073 28208 199787 63766
Total personnel expenses 6046 655616 147408 1034430 369296
Other ExpensesBuilding occupancy 860 27167 13349 56111 27589 Professional services - 62855 - 62855 - Travel 1432 1115 6105 12989 14750 Equipment costs 173 12330 1771 16657 4176 Food services - 59136 1 90512 62 Medical and pharmacy 1 21735 13 23300 29 Subcontracted services 803 26758 19705 55219 22350 Depreciation 547 19989 3659 33082 7866 Insurance 419 24037 4175 39250 8656 Interest - 13814 - 21571 - Telephone 226 3523 4874 10792 20104 Operating suppliesexpenses 1041 7062 1319 12470 3195 Other expenses 2 3495 10250 15805 637
Total other expenses 5504 283016 65221 450613 109414
Total personnel and other expenses 11550 938632 212629 1485043 478710
Distributed Indirect CostsAdministration 1492 97864 15963 137995 32224 Other support - - - - -
Total distrd indirect costs 1492 97864 15963 137995 32224
Total Actual Operating Expenses 13042 1036496 228592 1623038 510934 Unallowable Costs 131 6655 1214 8000 2595
Total allowable oper expenses 12911$ 1029841$ 227378$ 1615038$ 508339$
Capital expenditures -$ 6526$ -$ 8332$ 607$
Program Services
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-23-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
CMH CMH CMH TotalOutpatient Medical Crisis Prevention ChildrensTreatment Services Stabilization SAP Services
Funding Sources and RevenuesState SAMH Funding
District 15 149518$ 44332$ 671593$ 334242$ 1256058$
Other Govt FundingOther State Agency funding - - - - - Medicaid 67312 15511 - - 138725 Other government 87599 44300 133434 407204 736903
Total other govt funding 154911 59811 133434 407204 875628
All Other Revenues1st and 2nd party payments 15106 3202 27091 - 37089 3rd party pymts (except Medicare) 594469 221057 951314 - 2080386 Medicare - - - - - Contributions and donations - - 355241 - 355341 Other income (211) (42) - (211) (601) In-kind - - - - -
Total all other revenues 609364 224217 1333646 (211) 2472215
Total funding 913793$ 328360$ 2138673$ 741235$ 4603901$
Expense CategoriesPersonnel expenses
Salaries 488936$ 212470$ 1127278$ 434012$ 2568226$ Fringe benefits 103100 44731 227099 108173 546869
Total personnel expenses 592036 257201 1354377 542185 3115095
Other ExpensesBuilding occupancy 28776 4025 75833 29067 165290 Professional services - - 48739 - 48739 Travel 22083 1931 1273 8597 48634 Equipment costs 5885 1230 21087 6300 38678 Food services 4 1 73866 - 73933 Medical and pharmacy 3656 48 52601 1 56335 Subcontracted services 76245 13952 93484 17672 223703 Depreciation 12103 4294 149988 6907 181158 Insurance 14792 4519 38445 14029 80441 Interest - - 118641 - 118641 Telephone 18138 2082 10865 17170 68359 Operating suppliesexpenses 5675 1880 12100 5221 28071 Other expenses 3963 108 7701 16224 28633
Total other expenses 191320 34070 704623 121188 1160615
Total personnel and other expenses 783356 291271 2059000 663373 4275710
Distributed Indirect CostsAdministration 54750 26107 147393 57286 317760 Other support - - - - -
Total distrd indirect costs 54750 26107 147393 57286 317760
Total Actual Operating Expenses 838106 317378 2206393 720659 4593470 Unallowable Costs 3990 1452 39750 1974 49761
Total allowable oper expenses 834116$ 315926$ 2166643$ 718685$ 4543709$
Capital expenditures 934$ 187$ 238$ 934$ 2900$
Program Services
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-24-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total for State Non-State Total for all State Non-SAMHSAMH Funded Funded SAMH Designated SAMH CostCost Centers Cost Centers Cost Centers Centers Total
Funding Sources and RevenuesState SAMH Funding
District 15 11893282$ -$ 11893282$ -$ 11893282$
Other Govt FundingOther State Agency funding - - - - - Medicaid 928581 - 928581 - 928581 Other government 2595226 360235 2955461 - 2955461
Total other govt funding 3523807 360235 3884042 - 3884042
All Other Revenues1st and 2nd party payments 293971 - 293971 4257 298228 3rd party pymts (except Medicare) 4666465 - 4666465 - 4666465 Medicare 294567 - 294567 - 294567 Contributions and donations 358071 - 358071 - 358071 Other income (1416) (117) (1533) - (1533) In-kind 1532884 - 1532884 - 1532884
Total all other revenues 7144542 (117) 7144425 4257 7148682
Total funding 22561631$ 360118$ 22921749$ 4257$ 22926006$
Expense CategoriesPersonnel expenses
Salaries 11002075$ 225452$ 11227527$ -$ 11227527$ Fringe benefits 2423145 44894 2468039 - 2468039
Total personnel expenses 13425220 270346 13695566 - 13695566
Other ExpensesBuilding occupancy 599491 12388 611879 - 611879 Professional services 663797 6588 670385 - 670385 Travel 138568 6159 144727 - 144727 Equipment costs 172585 2777 175362 - 175362 Food services 435691 5763 441454 - 441454 Medical and pharmacy 1886122 6 1886128 2316 1888444 Subcontracted services 636167 9184 645351 - 645351 Depreciation 456943 3318 460261 - 460261 Insurance 437298 11080 448378 - 448378 Interest 248069 1387 249456 - 249456 Telephone 224691 3419 228110 - 228110 Operating suppliesexpenses 126699 4840 131539 - 131539 Other expenses 740172 2981 743153 - 743153
Total other expenses 6766293 69890 6836183 2316 6838499
Total personnel and other expenses 20191513 340236 20531749 2316 20534065
Distributed Indirect CostsAdministration 1464083 27749 1491832 - 1491832 Other support - - - - -
Total distrd indirect costs 1464083 27749 1491832 - 1491832
Total Actual Operating Expenses 21655596 367985 22023581 2316 22025897 Unallowable Costs 128093 1090 129183 - 129183
Total allowable oper expenses 21527503$ 366895$ 21894398$ 2316$ 21896714$
Capital expenditures 51777$ 446$ 52223$ -$ 52223$
Program Services
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-25-
New Horizons of the Treasure Coast IncProgramCost Center Actual Expenses and Revenues Schedule (continued)
For the year ended June 30 2013
Total
Support
Administration Services Total
Funding Sources and RevenuesState SAMH Funding
District 15 500000$ -$ 500000$ 12393282$
Other Govt FundingOther State Agency funding - - - - Medicaid - - - 928581 Other government - - - 2955461
Total other govt funding - - - 3884042
All Other Revenues1st and 2nd party payments - - - 298228 3rd party pymts (except Medicare) - - - 4666465 Medicare - - - 294567 Contributions and donations 2779 - 2779 360850 Other income 53944 - 53944 52411 In-kind 186 - 186 1533070
Total all other revenues 56909 - 56909 7205591
Total funding 556909$ -$ 556909$ 23482915$
Expense CategoriesPersonnel expenses
Salaries 900218$ 218995$ 1119213$ 12346740$ Fringe benefits 189793 55623 245416 2713455
Total personnel expenses 1090011 274618 1364629 15060195
Other ExpensesBuilding occupancy 3683 4898 8581 620460 Professional services 102207 - 102207 772592 Travel 21054 40 21094 165821 Equipment costs 13136 24821 37957 213319 Food services 4277 (234536) (230259) 211195 Medical and pharmacy 6241 (88401) (82160) 1806284 Subcontracted services 48329 8585 56914 702265 Depreciation 46242 214 46456 506717 Insurance 47428 6611 54039 502417 Interest - - - 249456 Telephone 3731 1028 4759 232869 Operating suppliesexpenses 58843 2086 60929 192468 Other expenses 150675 36 150711 893864
Total other expenses 505846 (274618) 231228 7069727
Total personnel and other expenses 1595857 - 1595857 22129922
Distributed Indirect CostsAdministration (1491832) - (1491832) - Other support - - - -
Total distrd indirect costs (1491832) - (1491832) -
Total Actual Operating Expenses 104025 - 104025 22129922 Unallowable Costs 104025 - 104025 233208
Total allowable oper expenses -$ -$ -$ 21896714$
Capital expenditures -$ -$ -$ 52223$
Supporting Services
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-26-
New Horizons of the Treasure Coast IncSchedule of RevenuesFor the year ended June 30 2013(With comparative totals for 2012)
2013 2012
TotalTotal (memo only)
State ADM Grants
State of Florida Department of Children amp Families Alcohol Drug Abuse and Mental Health 12393282$ 12490015$
Government and Other Local Funding
Other Government funding 367094 275002 Local government grants
St Lucie County 1640100 1640558 Indian River County 512528 562478 Martin County 364534 361962 Okeechobee County 71205 70513
Total government and other local funding 2955461 2910513
All other Funding and Revenues
Medicaid 928581 813073 Medicare 294567 259684 First and third party fees 4964693 4788611 Contributions and donations 360850 257512 In-kind contributions 1533070 1450645 Interest 2712 2030 Other income 49699 25659
Total all other funding and revenues 8134172 7597214
Total revenues 23482915$ 22997742$
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-27-
New Horizons of the Treasure Coast IncSchedule of Expenditures of Federal Awards and State Financial AssistanceFor the year ended June 30 2013
CFDA GrantFederal GrantorPass-through CSFA ContractGrantorProgram Title Number Number Expenditures
US Department of Health and Human Services
Pass Through from Florida Department of Children amp Families Southeast Florida Behavioral Health
Projects for Assistance in Transition from Homelessness (PATH) 93150 ZH302 97721$ Social Services Block Grant 93667 ZH302 201336 Childrens Health Insurance Program 93767 ZH101 35623 Medical Assistance Program 93778 ZH305 371872 Block Grants for Community Mental Health Services 93958 ZH302ZH305 973432 Block Grants for Prevention and Treatment of Substance Abuse 93959 ZH302101S9 948404
Total federal expenditures 2628388$
State GrantorPass-throughGrantorProgram Title
Florida Department of Children amp Families Southeast Florida Behavioral Health
Childrens Baker Act Services 60001 ZH302 765703$ Baker Act 60006 ZH302 1132450 Adult Community Mental Health Florida Assertive 60042 ZH305 112470 Community Forensic Beds 60114 ZH302 51575
United for Families
Community Based Care Support 60094 UA-110111amp998 150413
Total state expenditures 2212611$
See accompanying notes to schedule of expenditures of federal awards and state financial assistance
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-28-
New Horizons of the Treasure Coast Inc Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Note A ndash Basis of Presentation
The accompanying schedule of expenditures of federal awards and state financial assistance was prepared to include the activity of all Federal and State awards of New Horizons and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A-133 Audits of States Local Governments and Non-Profit Organizations Therefore some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements
Note B ndash Matching Requirements
New Horizons receives a substantial portion of its support from grants passed through the Department of Children and Families Some of these grants require local match in the form of cash andor in-kind resources Current match received includes local county revenues and in-kind contributions During the year ended June 30 2013 the expenses on grants requiring a local match were as follows
Contract Number ZH302 Total
Required local match 1643338$ 1643338$ Current match received 2867356 2867356
Excess match 1224018$ 1224018$
The above match amounts are applied to the following cost centers
Cost Center
Case Management 79568$ Intensive Case Management 123549 Crisis Stabilization 240030 Mobile Crisis 35798 Outpatient Medical Services 1536959 Supported Community Services 102437 Crisis SupportEmergency 158538 Residential Level I SRT 125 FACT 300 Independence Recovery 91500 Detox Residential 204421 Childrens Case Management 64466 Childrens Outpatient Services 83420 Childrens Crisis Stabilization 133501 Childrens Medical Services 1800 Student Assistance Program 10944
2867356$
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
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Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-29-
New Horizons of the Treasure Coast IncSchedule of State EarningsFor the year ended June 30 2013
Total Expenditures 22129922$ Less
Other State and Federal funds (1590242) Non-Match SAMH funds (6889480) Unallowable costs (233208)
Net allowable expenditures 13416992
Maximum available earnings (75 of allowable expenditures) 10062744
Amount of State funds requiring match 4930014
Amount due to Department of Children and Families -$
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-30-
New Horizons of the Treasure Coast IncSchedule of Bed-Day Availability PaymentsFor the year ended June 30 2013
Total Units of Maximum Amount Service Paid of Units Maximum $ Owed to
for by 3rd Party Eligible for Amount Paid Value of DepartmentState Total Units Contracts Local Payment by for Services Units in (G-H) or $0
Contracted of Service Govt or other Department by the Column F whichever isProgram Cost Center Rate Provided State Agencies (D-E) Department (FxC) greater
A B C D E F G H I
Adult MH Crisis stabilization unit 29124$ 10950 1380 9570 2130422$ 2787119$ -$ Adult SA Substance abuse detox 19730 4380 536 3844 694625 758499 - Childrens SAMH Childrens crisis stabilization unit 29124 7300 1640 5660 671593 1648418 Adult MH Short term residential treatment 24728 7300 76 7224 1650897 1786335 -
Total amount owed to Department -$
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-31-
New Horizons of the Treasure Coast IncSchedule of Related Party Transaction AdjustmentsFor the year ended June 30 2013
Related
Party 1 2 3 TotalRevenues from Grantees
Rent -$ Services - Interest - Other income -
Total revenues from grantees -
Expenses Associated with Grantee Transactions
Personnel services - Depreciation - Interest - Other expenses -
Total associated expenses -
Related party transaction adjustment -$
This schedule is not applicable for the current year No related party transactions were identified
Allocation of Related Party Transactions AdjustmentCost Centers
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-32-
New Horizons of the Treasure Coast IncSchedule of Local Financial AssistanceFor the year ended June 30 2013
Accrued or Accrued or(Deferred) (Deferred)Revenue at Cash Reimbursable Revenue atJuly 1 2012 Received Expenditures June 30 2013
Local Grants
St Lucie County Match -$ 673606$ 673606$ -$ Martin County Match - 331445 331445 - Indian River County Match 50554 308889 281147 22812 Okeechobee County Match 7500 45291 45375 7584 Indian River County Forensic Contract 8616 106251 106007 8372 Indian River County Steps to Freedom 4937 57640 57440 4737 Indian River County Healthcare District 6428 69406 67934 4956 Martin County Steps to Recovery 2582 32856 33089 2815 St Lucie County Childrens Services Council 34415 413884 410978 31509 St Lucie County Jail Diversion 40424 459383 491060 72101 St Lucie County Mental Health Court 16250 65000 65000 16250 Okeechobee County Childrens Service Council 1458 22860 25830 4428
Total local assistance 173164$ 2586511$ 2588911$ 175564$
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
KMETZ NUTTALL ELWELL GRAHAM PLLC
Independent Auditors Report on Internal Control over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Board of Directors New Horizons of the Treasure Coast Illc
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 the Government Auditing Standards issued by the Comptroller General of the United States the financial statements of New Horizons of the Treasure Coast Inc (NHTC) (a not for profit organi zat ion) which comprise the statement of financial position as of June 30 2013 and the related statements of activities and changes in net assets functional expenses and cash flows or the year then ended and the related notes to the financial statements and have issued our report thereon dated October 28 20 I 3
Internal Control over Financial Reporting
In planning and performing our audit we considered NHTCs 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 tinancial statements but not for the purpose of expressing an opinion on the effectiveness of N HTCs internal control Accord ingly we do not express an opinion on the effectiveness of the Organizations 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 entitys financial statements wi II not be prevented or detected and corrected on a timely basis A significal7l defiCiency is a deficiency or combination of deficiencies in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of thi s section and was not designed to identify all deficiencies in intern al control that might be a material weakness or Significant deficiencies Given these limitations during our audit we did not identify any deficiencies in internal control that we cOllsider 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 NHTCs financial statements are free of material misstatement ve 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
2800 Ocean Drive Vera Beach Florida 32963 T 77223 16902 F 772231 4099 wwwknegcpacom I
l I r
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-34-
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 organizationrsquos internal control or on compliance This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organizationrsquos internal control and compliance Accordingly this communication is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ r tied Public A [nLn Ji1tS
Independent Auditors Report on Compliance for Each Major Federal Program and State Project and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter 10650 Rules of
the Auditor General
To the Board of Directors New Horizons of the Treasure Coast Jnc
Report on Compliance for Each Major Federal Program and State Project
We have audited New Horizons of the Treasure Coast Inc s (NHTC) compliance with the types of compliance requirements described in the US Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement and the requirements described in the Department ofFinancial Services State Projects Compliance Supplement that could have a direct and material effect 011 each ofNHTCs major federal programs and state projects for the year ended June 30 2013 NHTCs major federal programs and state projects are identified in the summary of auditorS results section of the accompanying schedule of findings and questioned costs
Managements Responsibility
Management is responsible for compliance with the requirements of laws regulations contracts and grants applicable to its federal programs and state financial assistance projects
Auditors Responsibility
Our responsibility is to express an opinion on compliance for each type of NHTCs major federal programs and state projects based on our audit 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 Governm ent AudiTing Standards issued by the Comptroller General of the United States OMB Circular A-133 Audits of States Local Governments and Non-Profit Organization and Chapter 10650 Rules of the Auditor General Those standards OMB Circular A-l33 and Chapter 10650 require that we plan and perfoml 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 stale tinancial assistance project occurred An audit includes examining on a test basis evidence about NHTCs 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 each major federal program and state project However our audit does not provide a legal determination ofNHTCs compliance
2800 Ocean Drive Vero Beach Florida 32963 T 772231 6902 F 77 314099 wwwknegcpacom
I i ~ f shy ft jl I J 1 ~I t ~
13 1
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-36-
Opinion on Each Major Federal Program and State Project In our opinion NHTC 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 2013 Report on Internal Control Over Compliance Management of NHTC 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 NHTCs internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10650 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 NHTCrsquos 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 or state financial assistance project on a timely basis A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state financial assistance project will not be prevented or detected and corrected on a timely basis A significant deficiency in internal control over compliance is a deficiency or combination of deficiencies in internal control over compliance with a type of compliance requirement of a federal program or state financial assistance project 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 10650 Rules of the Auditor General Accordingly this report is not suitable for any other purpose
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-37-
New Horizons of the Treasure Coast Inc Schedule of Findings and Questioned Costs
Federal Awards Programs and State Projects Year Ended June 30 2013
A Summary of Audit Results
1 The auditors report expresses an unqualified opinion on the financial statements of New Horizons of the Treasure Coast Inc
2 No significant deficiencies relating to the audit of the financial statements are reported in the
Independent Auditors Report
3 No instances of noncompliance material to the financial statements of New Horizons of the Treasure Coast Inc were disclosed during our audit
4 No significant deficiencies relating to the audit of the major federal award program andor
state projects are reported in the Independent Auditors Report on Compliance with Requirements Applicable to Each Major Federal Program and State Financial Assistance Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10650 Rules of the Auditor General
5 The auditors report on compliance for the major federal award program and state projects for
New Horizons of the Treasure Coast Inc expresses an unqualified opinion
6 Our audit disclosed no findings or questioned costs required to be reported related to federal programs under section 510(a) of OMB Circular A-133 or did our audit disclose any findings or questioned costs related to state projects required to be disclosed under Chapter 10656
7 The programprojects tested as major programprojects include
Federal Program Federal CFDA No Projects for Assistance in Transition from Homelessness (PATH) 93150 Social Services Block Grant 93667 Medical Assistance Program 93778 State Project State CSFA No Baker Act 60006 Adult Community Mental Health Florida Assertive 60042
8 The threshold for distinguishing Type A and B programs was $300000 for major federal
award programs and major state financial assistance projects
9 New Horizons of the Treasure Coast Inc was determined to be a low-risk auditee pursuant to OMB Circular A-133
B Findings - Financial Statements Audit - None
C Findings and Questioned Costs - Major Federal Award Program andor Major State Financial
Assistance Project Audits - None
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
-38-
New Horizons of the Treasure Coast Inc Summary Schedule of Prior Audit Findings
Year Ended June 30 2013
There were no instances of findings or questioned costs for major federal award programs or major state financial assistance projects in prior years
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
1 bull
1 I I
KMETZ NUTTALL ELWELL GRAHAM PLLC ~ _ ( I r e -r -Ui)II~ j - _d rJIll
Management Letter
To the Board of Directors and Senior Management
New Horizons of the Treasure Coast Inc Fort Pierce Florida
We have completed our audit of the financia l statements of New Horizons of the Treasure Coast Inc (New Horizons) tor the year ended June 3020 [3 and issued our reports thereon dated October 2820 [3
We conducted our audit in accordance with auditing standards genera[ly accepted in the United States of America the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States and OMB Circular A-133 A udits ofStates Local Governments and Non-proit Organizations and Chapter 10650 Rules of the Florida A uditor General We have issued our Independent Auditors 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 Auditors Repor1 on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-I33 and Chapter 10650 Rules of the Auditor Genera[ and Schedule of Findings and Questioned Costs Disclosures in those reports and schedule which are dated October 282013 should be considered in conjunction with this management letter
Additionally our audit was conducted in accordance with Chapter 10650 Rules of the Auditor General wh ich req uires disc losure in the management letter of violations of provisions of contracts or grant agreements fraud illegal acts or abuse that have an effect on the financial statements or State project amounts that is less than material but mOre than inconsequential In add ition 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 (I) viol ations of provisions of contracts or grant agreements fraud illegal acts or abuse that have occurred or are likely to have occllrred (2) deficiencies in internal control that are not significant deficiencies In connection with our audit there were no matters that are required to be disclosed
CURRENT YEAR FINDINGS AND RECOMMENDATIONS
No current year findings
STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS
No prior year findings
Pursuant to Chapter 119 Florida Statues this management letter is a public record and its distributi on is not limited Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Legislative Auditing Committee members of the Florida Senate and the Florida HOllse of Representatives the Florida Auditor General Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties
Kmetz Nuttall Elwell Graham PLLC Certified Public Accountants October 28 2013
2800 Ocean Dnve Vera Beach Ftorida 31963 T 7722316902 F 7722314099 wwwknegcpacom
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