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COMBINED FINANCIAL STATEMENTS - SEPTEMBER 30, 2008 AND 2007 AND REPORTS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTSYOUNG WOMEN'S CHRISTL9NASSOClATION OF TAMPA BAY, INC. AND AFFILIATE COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2008 AND 2007 AND REPORTS OF INDEPENDENT CERTIFIED P UBLIC A CCO UNTA NTS TABLE OF CONTENTS Page INDEPENDENT A UDITORS' REPORT 1 Financial Statements for the Years Ended September 30, 2008 and 2007: Combined Statements of Financial Position 2 Combined Statements of Activities and Change in Net Assets 3-4 Combined Statements of Functional Expenses 5-6 Combined Statements of Cash Flows 7 Notes to Combined Financial Statements 8-19 INDEPENDENT A UDITORS' REPORT ON SUPPLEMENTAR Y INFORMA TION 20 Combined Schedules of Revenue and Expenses by Program 21 - 22 Schedule of Expenditures of Federal Awards 23 Notes to Schedule of Expenditures of Federal Awards 24 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLL4NCEAND OTHER MATTERS BASED ON ANA UDIT OF FINANCLAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS 25 - 26 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACHMAJOR PROGRAMAND ONINTERNAL CONTROL OVER COMPLLANCE INACCORDANCE WITH OMB CIRCULAR A-133 27 - 28 Schedule of Findings and Questioned Costs 29 - 30 MUML pdr ?97 i0 U.S. Hwy. 19 North, Suito 101 Clearwater, Florida 33761 CERTIFIED 1"UBLIC cacc;otry nt:a n t s INDEPENDENT AUDITORS' REPORT To the Board of Directors Young Woolen's Christian, Association of Tampa Bay, Inc. and Affiliate St. Petersburg, Florida We have audited the accompanying combined statements of financial position of Young Women's Christian Association of Tampa Bay, Inc. and its affiliate, YWCA of 'T'ampa Bay Foundation, Iris. (Foundation), (collectively, the Organization) as of September 30, 2008 and 2007 and the related combined statements of activities and change in net assets, functional expenses, and cash tows for the years then ended. These combined financial statements are the responsibility of the Organisation's management. Our .responsibility is to express att opinion on these combined financial statein.ents based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting; the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of September 30, 2008 and 2007 and the change in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in. the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated January 27, 2009 on our consideration of the Organization's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Clearwater, Florida January 27, 2009 .1 YOUNG WOMEN'S CHR1'STIANASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE COMBINED STATEMENTS OF FINANCIAL POSITION SEPTEMBER 30, 2008 AND 2007 ASSETS Cash Grants and fees receivable Unconditional promises to give Prepaid expenses and other Investments Receivable from remainder trust Land lease receivable Property and equipment, net Beneficial interest in perpetual trust Total Assets LIABILITIES AND NET ASSETS Liabilities Accounts payable Accrued salaries and related expenses Refundable advance Notes payable Line-of-credit Total liabilities Net Assets Unrestricted Net investment in property and equipment Temporarily restricted Permanently restricted Total net assets Total Liabilities and Net Assets 2008 2007 $ 201,753 $ 21,179 614,067 560,545 4,765 14,143 24,240 35,018 314,430 435,393 59,709 56,096 263,458 592,689 2,195,488 2,433,086 123,852 145,252 $ 3,801,762 $ 4,293,401 $ 94,680 $ 29,267 221,934 276,381 59,526 66,965 443,939 451,266 53,475 69,000 873,554 892,879 343,976 230,307 2,052,233 2,281,820 2,396,209 2,512,127 327,932 662,928 204,067 225,467 2,928,208 3,400,522 $ 3,801,762 $ 4,293,401 See accompanying notes to financial statements 2 YOUNG WOMEN'S CHRISTMNASSOCIATION OF TAMPA BAY, INC. AND AFFILIATE COMBINED STATEMENT OFACTIVITIESAND CHANGE INNETASSETS YEAR ENDED SEPTEMBER 30, 2008 Temporarily Permanently Unrestricted Restricted Restricte Public Support and Revenue Public Support Contributions In-kind contributions - services and other United Way Special events, net Net assets released from restriction Total public support Revenue Grants and fees Coordinated Child Care Juvenile Welfare Board Child care revenues Change in value of split-interest agreement Investment income Miscellaneous Total revenue Total public support and revenue Expenses Program Services Adolescent Pregnancy and Parenting Family Village Community Outreach Child Care Total program services Support Services Management and general Fundraising Payments to affiliated organizations Total support services Total expenses Change in NetAssets Before Discontinued Operations Discontinued Operations Operating gain from discontinued operations Loss associated with discontinued operations, including the loss on discontinued operations during the phase-out period Change in Net Assets Net Assets at Beginning of Year, as Restated Net Assets at End of Year Total $ 93,651 $ - $ $ 93,651 252,531 - - 252,531 140,150 - 140,150 54,183 - 54,183 338,609 (338,609) - - 879,124 (338,609) 540,515 1,223,823 - - 1,223,823 458,582 - 458,582 675,346 - - 675,346 715,340 - - 715,340 - 3,613 - 3,613 (46,300) - (21,400) (67,700) 45,306 - - 45,306 3,072,097 3,613 (21,400) 3,054,310 3,951,221 (334,996) (21,400) 3,594,825 550,820 - - 550,820 1,184,545 - 1,184,545 1,430,477 - - 1,436,477 3,171,842 - - 3,171,842 540,918 - 540,918 122,779 - 122,779 30,400 - 30,400 694,097 - 694,097 3,865,939 - 3,865,939 85,282 (334,996) (21,400) (271,114) 56,499 - 56,499 (257,699) - (257,699) (115,918) (334,996) (21,400) (472,314) 2,512,127 662,928 225,467 3,400,522 $ 2,396,209 $ 327,932 $ 204,067 $ 2,928,208 See accompanying notes to financial statements 3 YOUNG WOMEN'S CHRISTL4N ASSOCIATION OF TAMPA BAY, INC. AND AFFILIATE COMBINED STATEMENT OF ACTIVITIES AND CHANCE IN NET ASSETS YEAR ENDED SEPTEMBER 30, 2007 Temporarily Permanently Unrestricted Restricted Restric ed Public Support and Revenue Public Support Contributions In-kind contributions - services and other United Way Special events, net Net assets released from restriction Total public support Revenue Grants and fees Coordinated Child Care Juvenile Welfare Board Child care revenues Change in value of split-interest agreement Investment income Miscellaneous Total revenue Total public support and revenue Expenses Program Services Adolescent Pregnancy and Parenting Family Village Community Outreach Child Care Total program services Support Services Management and general Fundraising Payments to affiliated organizations Total support services Total expenses Change in Net Assets Before Discontinued Operations Discontinued Operations Operating gain from discontinued operations Change in Net Assets Net Assets at Beginning of Year Net Assets at End of Year, as Restated Total $ 86,801 $ 1,500 $ $ 88,301 250,555 445,991 696,546 102,721 - - 102,721 53,188 - 53,188 212,737 (212,73 - 706,002 234,754 940,756 1,002,477 - 1,002,477 484,770 - - 484,770 756,158 - - 756,158 678,859 - - 678,859 206,693 - - 206,693 77,693 - 10,600 88,293 47,141 - - 47,141 3,253,791 10,600 3,264,391 3,959,793 234,754 10,600 4,205,147 616,008 - - 616,008 1,080,922 - 1,080,922 1,313,313 1,313,313 3,010,243 - - 3,010,243 734,166 - - 734,166 117,319 - 117,319 31,650 - - 31,650 883,135 - 883,135 3,893,378 - - 3,893,378 66,415 234,754 10,600 311,769 45,969 - - 45,969 112,384 234,754 10,600 357,738 2,399,743 428,174 214,867 3,042,784 $ 2,512,127 $ 662,928 $ 225,467 $ 3,400,522 See accompanying notes to financial statements 4 i F I 7 ti A `C 4 N ti M W w h A W 94 W a ry ' r O N r SC E O A M 222 4 O N N O p O h M P ?D N ? m M O a n co N e 0 C O O ? m rn ? ^t a? w ?c ? 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'?•. ? ./. V O. O H O V ? 00 M M 4 07 rv e0 MV ?D N ' M T C? ?? ? Qr w w? v T? v a M rv rW v~ r ? M ~ N v° 0o h ? e0 N eVe O ? M '"' er ? ti ' + N N v. ?c o ?c N ea n r r m N o. ? N N n rn r o m r? a oo N a .n v+ ry, r-4 a. a .?+t •a r P a ? a M vr?D. m ? `r? °o v`Di a M o? M e°o ?? M? b M? o ev ? ? ? n yr r ? r ? n r" ? N r e R 4 ? n b R ? G ? o ?tl l{ C R d m ca Q m cr. F;m) F O F z A ? M ? m M M WW 6°r O M s9 m r fA O 6'1 n N ry b V M K M M M 6`1 h r cJ v w N a O 0 H 00 0 e w Hy ysY V o ? ?' [ 4r yd .-1 y? V C Oq E 0 V 'J YOUNG WOMEN'S CHRISTIANASSOCIATION OF TAMPA BAY, INC. AND AFFILL4TE COMBINED STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2008 AND 2007 2008 2007 Cash Flows from Operating Activities: Change in net assets $ (472,314) $ 357,738 Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Loss (gain) on sale of investments 91,204 (53,692) Loss from discontinued program 265,995 - Depreciation 146,204 145,494 (Increase) decrease in operating assets: Grants and fees receivable (53,522) (185,151) Unconditional promises to give 9,378 48,607 Prepaid expenses and other 10,778 (3,916) Receivables from remainder trust (3,613) - Land lease receivable 168,179 (283,361) Increase (decrease) in operating liabilities: Accounts payable 65,412 (76,065) Accrued salaries and related expenses (54,447) 4,528 Refundable advance _ (7,439) (40,519) Net cash provided by (used in) operating activities 165,815 (86,337) Cash Flows from Investing Activities: Purchases of investments (24,249) (40,000) Proceeds from sale of investments 75,408 114,170 Proceeds from sale of property and equipment 1,414 - Purchases of property and equipment (14,962) (81,061) Net cash (used in) investing activities 37,611 (6,891) Cash Flows from Financing Activities: Proceeds (repayments) from borrowing on line-of-credit (15,525) 69,000 Payments on note payable (7,327) (11,718) Net cast: provided by (used in) financing activities (22,852)- 57,282 Increase (Decrease) in Cash 180,574 (35,946) Cash at Beginning of Year 21,179 57,125 Cash at End of Year $ 201,753 $ 21,179 Supplemental Disclosure Cash paid for interest $ 21,105 $ 15,305 See accompanying notes to financial statements 7 YOUNG WOMEN'S CHRISTL4NASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED F17VANCL4L STATEMENTS SEPTEMBER 30, 2008 AND 2007 Young Women's Christian Association of Tampa Bay, Inc. (the YWCA) and its affiliate, YWCA of Tampa Bay Foundation, Inc. (the Foundation), (collectively, the Organization) are organized for the purpose of providing charitable education and services, childcare, and housing assistance to individuals within Pinellas County, Florida. NOTEA -SUMMARY OFSIGNIFICANTACCOUNTCNG POLICIES 1. Principles of Combination The accompanying combined financial statements include the financial statements of the YWCA and the Foundation. All significant inter-organization accounts and transactions have been eliminated in combination. 2. Income Taxes The YWCA is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and state income tax under Chapter 220.13 of the Florida Statutes. The Internal Revenue Service has determined the YWCA not to be a private foundation and contributions to it qualify as charitable contribution deductions. The Foundation is a Florida not-for-profit corporation organized to support the Organization. The YWCA and Foundation are financially interrelated. The Foundation is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and has been determined not to be a private foundation. 3. Programs Adolescent Pregnancy and Parenting - Enhances self-sufficiency by providing community-wide, comprehensive services in the areas of health, education, prevention, life skills and counseling to adolescents, young adults, and their children. Family Village - Provides short-term, temporary affordable housing, counseling and support services for homeless families, and a child development center to serve the needs of the families in the housing program. Community Outreach - Assists targeted families through a comprehensive healthy families support initiative. Child Care - Provides public and teen parent childcare. 8 YOUNG WOMEN'S CHRISTL4NASSOCL4TIONOF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED F17VANCL4L STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIEs -- CONTINUED 4. Financial Statement Presentation The Organization reports information regarding its financial position and activities based on the existence or absence of donor-imposed restrictions in accordance with Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Accordingly, the Organization has classified its net assets and changes therein as unrestricted (net assets that are not subject to donor-imposed stipulations) and permanently or temporarily restricted net assets, as required. In accordance with SFAS No. 117, special event revenue is shown net of the cost of the direct benefit to donors. 5. Restricted and Unrestricted Contributions The Organization accounts for contributions in accordance with SFAS No. 116, Accounting for Contributions Received and Contributions Made. Accordingly, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Contributions that are restricted by the donor are reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the contributions are received. All other donor-restricted contributions are 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 the purpose of the restriction is accomplished), temporarily restricted contributions are reclassified and reported in the statements of activities as net assets released from restrictions. Contributions are recognized at their present value when a donor makes a contribution. In accordance with SFAS No. 116, unconditional promises to give are recognized as revenues in the period received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Federal, state, and local government and other public grants are recognized as support when performance occurs pursuant to the contract agreement. 9 YOUNG WOMEN'S CHRISTL4NASSOCL4TION OF TAMPA BAY, INC. AND AFFILL4 TE NOTES TO COMBINED FINANCL4L STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 6. Cash Accounts The Organization classifies all short-term investments with a maturity of three months or less as cash equivalents. 7. Investments The Organization adopted SFAS No. 124, Accounting for Certain Investments Held by Not-For-Profit Organizations. In accordance with SFAS No. 124, investments in equity securities with readily determinable fair values and all investments in debt securities are carried at their fair values in the Organization's statements of financial position. Unrealized gains and losses are included in the statements of activities and change in net assets. Restrictions on investment earnings are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the earnings are recognized. Investment return for the years ended September 30, 2008 and 2007 is presented in the accompanying combined statements of activities and change in net assets as either unrestricted or permanently restricted. Permanently restricted investment income represents the change in value of a beneficial interest in a perpetual trust. All other investment income includes unrestricted amounts generated from the YWCA and Foundation investment accounts. 8. Receivables Grants and fees receivable represent amounts due from various federal, state, and local agencies for purposes specified by each grant. Promises to give are recorded at net realizable value and represent amounts due from unconditional pledges to the Organization. Management considers all receivables to be collectible. As such, an allowance for doubtful accounts is not recorded in the accompanying combined financial statements. 9. Property and Equipment Property and equipment are stated at cost if purchased or at estimated fair value at date of receipt if contributed. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets, which range from 3 to 40 years. 10 YOUNG WOMEN'S CHRISTMNASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 9. Property and Eauinment -Continued Expenditures in excess of $750 with estimated useful lives in excess of one year are capitalized. Gifts of long-lived assets are reported as unrestricted support unless the donor has restricted the asset for a specific purpose. Repairs and maintenance of property and equipment are charged to operations and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, costs and accumulated depreciation are eliminated from the accounts and any resulting gain or loss is included in operations. Property acquired with grant funds is considered owned by the Organization while used in the program for which it is purchased or in future authorized programs; however, its disposition as well as the ownership of any proceeds from is subject to applicable regulations. 10. Noncash Contributions Contributions of materials and securities are recorded as support at their fair value at the date of donation. Contributions of services are recorded as support at their estimated fair value if the services received create or enhance non-financial assets or require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. 11. Expense Allocation Costs of providing services have been detailed in the statements of functional expenses and summarized on a functional basis in the statements of activities and change in net assets. Expenses that can be identified with a specific program or support service are allocated directly according to their natural expenditure classification. 12. Advertising Costs Advertising costs are expensed as incurred and were approximately $10,800 and $12,600 for the years ended September 30, 2008 and 2007, respectively. 11 YOUNG WOMEN'S CHRISTMNASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED F17VANCL4L STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE A -SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES - CONTINUED 13. Use of Estimates The preparation of combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 14. Reclassifications Certain amounts in the 2007 combined financial statements were reclassified to conform to the 2008 presentation. These reclassifications had no effect on the previously reported change in net assets. NOTE B - PROMISES TO GIVE Promises to give are due as follows at September 30: Less than one year One to three years More than three years NOTE C-INVFSTMENTS Investments consist of the following at September 30: Cash Government and agency securities Corporate bonds and bond funds Equity funds 2008 2007 $ 4,100 $ 10,193 665 3,100 - 850 ?. 4,765 4 4 2008 2007 $ 64,860 $ 105,088 24,930 24,172 19,959 19,275 204.681 286.858 $ L4,430 435 3 3 At September 30, 2008 and 2007, investment return includes interest and dividend income of $22,087 and $34,601 (net of fees of $150 each year), respectively. The net realized and unrealized loss for the year ended September 30, 2008 was $91,024. The net unrealized gain for year ended September 30, 2007 was $53,692. 12 YOUNG WOMEN'S CHRISTMNASSOCMTIONOFTAMPA BAY, INC. ANDAFFILL4TE NOTES TO COMBINED F17VANCL4L STATEMENTS SEPTEMBER 30, 2008 AND 2007 NoTE D -LAND LEASE RECEIVABLE The YWCA leases its Family Village facility land from the City of St. Petersburg, Florida under a 25-year lease agreement commencing April 1997 for a one time payment of $300. The lease requires the YWCA to use the land for certain restricted purposes or the agreement can be terminated. The YWCA leases its Hispanic Outreach Center under a three-year lease agreement commencing November 2006 for a onetime payment of $1. The lease requires the YWCA to use the property to implement the Latin Outreach program. The YWCA records these leasing transactions as land lease receivable and in-kind contribution. Amounts recorded are based on the fair value of the leased property. Due to discontinued support by the Juvenile Welfare Board of Pinellas County (JWB), the Hispanic Outreach Center was discontinued effective October 1, 2008. The remaining land lease receivable balance of $161,052 was written off at September 30, 2008. The related leasehold improvements and other fixed assets totaling $104,943 were also written off at September 30, 2008. September 30, One year or less One to five years Over five years 2008 2007 $ 19,515 $ 168,179 78,060 239,112 165,883 185,398 $ 263,45_ $ - 592.689 NOTE E - PROPERTYAND EQUIPMENT Property and equipment consist of the following at September 30: Building and improvements Leasehold improvements Furniture and equipment Vehicles Less accumulated depreciation 2008 2007 $ 3,038,201 $ 3,038,201 39,026 201,938 241,574 290,696 71,860 77,938 3,390,661 3,608,773 _ (1,195,173) 1? 75 687) $ 2.195,488 $ 2.433.086 13 YOUNG WOMEN'S CHRISTIANASSOCIATION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED FINANCIAL STATEMENTS . SEPTEMBER 30, 2008 AND 2007 NOTE F-- SPLIT INTERESTAGREEMENTs Charitahle Remainder Trust The YWCA is beneficiary of a charitable remainder trust held by a third party. The YWCA has recorded a receivable based on the present value of the estimated future benefit to be received when the trust assets are distributed, based on the life expectancy of the beneficiary named in the trust. Beneficial Interest in Perpetual Trust Held by Third Party The YWCA is an income beneficiary of a perpetual trust held by a third party that is measured based on the fair value of the trust assets. Change in the fair value of the trust assets is reported as permanently restricted gains or losses. Income distributions from the trust are reported as unrestricted investment income. NOTE G - NOTES PAYABLE Notes payable consist of the following at September 30: 2008 2007 Promissory note payable for funds received pursuant to a Community Development Block Grant from the City of St. Petersburg, Florida. Compliance with all provisions set forth in the note shall defer payment of the principal amount through January 1, 2022, and all sums due and payable shall be forgiven as of that date. Interest will not accrue while payment of the principal is deferred. The note is secured by real property. $ 300,000 $ 300,000 Promissory note payable to a bank, bearing interest at 6.95% (7.5% through September 30, 2004), principal and interest due in monthly payments of $1,480 ($1,625 through September 30, 2004), maturing in September 2023, collateralized by real property owned by the Foundation. , 143.939 151,266 44 1 2 14 YOUNG WOMEN'S CHRISTMNASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE G -No TEs PAYABLE - CONTINUED Aggregate maturities of notes payable are as follows at September 30: 2009 $ 8,032 2010 8,608 2011 9,227 2012 9,887 2013 9,887 Thereafter 398,298 443232 Interest expense for the years ending September 30, 2008 and 2007 was $21,105 and $15,305, respectively. NOTE H- LINE OF-.CREDIT The YWCA has a line-of-credit with a local bank with a limit of $200,000. The interest rate on the line-of-credit changes monthly and is equal to the bank's prime rate plus .0525% in 2008 and 2007. The interest rate at September 30, 2008 and 2007 was 5.00% and 7.75%, respectively. The balance at September 30, 2008 and 2007 was $53,475 and $69,000, respectively. NOTE I - IN KIND CONTRIBUTIONS The Pinellas County School Board provides teachers and supplies for the Adolescent Pregnancy and Parenting program. A total of $247,723 was contributed during both years ended 2008 and 2007 for salaries and related fringe benefits. NOTE J-- CONTINGENCIESAND COMMITMENTS The YWCA receives a substantial amount of support from grantor agencies for its programs. If this support were to be reduced or eliminated, it could affect the operation of the supported programs. In addition, the YWCA is subject to audit examination by the grantor agencies. In the event that reimbursed expenditures were disallowed, repayment would be required. In July 2008, it was determined by JWB Children's Services Council of Pinellas County that the Organization would no longer issue new Service Agreements with the YWCA, effective September 30, 2008. This results in _a loss of contract funding of approximately $2.8 million. This includes $1.3 million from JWS and $1.5 million through the Healthy Families Program of Pinellas County. The programs related to this funding are not in the YWCA's program services subsequent to year-end. 15 YOUNG WOMEN'S CHRISTIANASSOCIATION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE K- LEASES The YWCA leases various facilities and office equipment under operating leases. The leases expire beginning in 2007 through 2012. Future lease commitments under non-cancelable leases with terms in excess of one year are as follows: 2009 $ 48,141 2010 720 2011 720 2012 720 2013 60 Thereafter - 50'3 - Lease expense associated with the non-cancelable leases for the years ended September 30, 2008 and 2007 was $68,211 and $73,046, respectively. NOTE L -- DEFINED BENEFIT PLAN The YWCA participates in the national YWCA Retirement Fund, Inc., which is a defined benefit plan for employees who have completed two years of service and at least 1,000 hours of service during each of those two years. Participants are immediately 100% vested. The YWCA contributes 7.5% of eligible employee salaries. Contributions paid to the plan during the fiscal years 2008 and 2007 were $154,172 and $158,106, respectively. NOTE M- TEMPORARILYAND PERMANENTLYRESTRICTED NET ASSETS At September 30, net assets were temporarily restricted for the following purposes: 2008 2007 Time Restricted Promises to give $ 4,765 $ 14,143 Land leases 263,458 592,689 Remainder trust 59,709 56,096 327,932 $--A 62.928 Net assets released from time restrictions amounted to $338,609 and $212,737 for the years ended September 30, 2008 and 2007, respectively. 16 YOUNG WOMEN'S CHRISTL4NASSOCL4TION OF TAMPA SAY, INC. AND AFFILL4TE NOTES TO COMBINED FINANCL4L STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTEM- TEMPORARILYAND PERMANENTLYRESTRICTED NETASSETS- CONTINUED At September 30, permanently restricted net assets consisted of the following: Endowment Beneficial interest in perpetual trust NOTE N- CONCENTRATION OF RISK 2008 2007 $ 80,215 $ 80,215 123,852 145,252 $--204,067 $-225,467 The Organization maintains its cash balances in financial institutions and those balances are insured by the Federal Deposit Insurance Corporation up to $100,000. Cash may have exceeded the federally insured limit at various times throughout the years ended September 30, 2008 and 2007. On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009. NOTE O - RELATED PARTY TRANSACTIONS The YWCA began leasing a building from the Foundation in September 2003. The lease term is for ten years through August 31, 2013, with two options to renew for a period of five years each. Payments of $8,000 per month are recorded as rent expense for the YWCA and as rental income for the Foundation. Accordingly, rent expense and income recorded by the entities for fiscal years ending September 30, 2008 and 2007 related to this lease totaled $96,000 per year. From time to time, the Foundation receives contributions from members of the board of directors and staff of the YWCA, in addition to contributions it receives from the public at large. As of September 30, 2008 and 2007, promises to give include amounts due from the board and staff members in the amounts of $1,600 and $8,870, respectively. NOTE P- PRIOR PERIOD ADJUSTMENT During the year ended September 30, 2007, the YWCA had net earned revenue of $60,902 which was not recorded on its combined financial statements. The effect of this error increased receivables by $44,495, decreased deferred revenue by $16,407, decreased temporarily restricted net assets by $32,500 and increased unrestricted net assets $93,402 at year end September 30, 2007. 17 YOUNG WOMEN'S CHRISTI4NASSOCL4TION OF TAMPA BAY, INC. AND AFFILL47E NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE Q --DISCONTINUED OPERATIONS During the year ended September 30, 2008, Juvenile Welfare Board of Pinellas County (JWB) voted to not renew the YWCA of Tampa Bay Contract, effective October 1, 2008. Two programs, the Hispanic Outreach Center and "Y Girls", were discontinued as a result of the contract termination. Two other programs lost partial funding. In accordance with SFAS No. 144, Accounting far the Impairment or Disposal of Long-Lived Assets, the YWCA wrote-off the carrying value of the leasehold improvements and land lease receivable related to the Hispanic Outreach Center (see Note D). The date of approval to discontinue the contract was July 17, 2008. All revenues and expenses associated with this termination through June 30, 2008 (prior to this measurement date) were included on the face of the Statement of Activities and Change in Net Assets separately from the total loss on the contract termination. The loss associated with these discontinued operations includes the write-off of the leasehold improvements and land lease receivable of approximately $266,000. This write-off is presented along with the results of discontinued operations for the period July 1, 2008 through September 30, 2008 as a loss associated with discontinued operations. Both line items are reflected under the heading of Discontinued Operations on the Statement of Activities and Change in Net Assets. The results of operations for these programs for 2007 were also reclassified and presented in discontinued operations in accordance with SFAS No. 144. NOTE R -MANAGEMENTINITmTIVEs The Organization's net loss for 2008 is approximately $472,300. The Organization's net loss before discontinued operations for 2008 is approximately 271,100. Discontinuance of contract funding was discussed in Note J and Note Q. Management has summarized their operational plans for the future below. The Board of Directors and Management have completed a Strategic Visioning process that produced a new strategic plan and refocused existing resources on meeting the mission of the YWCA. In addition to continuing its child care, housing, and adolescent pregnancy and parenting services programs, the YWCA is focusing on establishing new programs which will enhance their ability to focus on women's issues and eliminating racism which will more closely mirror the mission of the YWCA National Organization. The Board and Management are enthusiastic and determined to make this shift in strategic focus a success. 18 YOUNG WOMEN'S CHRISTMNASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO COMBINED FINANCLIL STATEMENTS SEPTEMBER 30, 2008 AND 2007 NOTE R -MANAGEMENT INITIATIVES - CONTINUED Economic empowerment, health and wellness, and leadership will be three women's issues that will be at the forefront of its focus. Fee for service programming includes a partnership with the National Debt Foundation and Wachovia Foundation to provide financially focused classes for women only, which will teach financial literacy and debt management. The health and wellness programs for women will consist of nutrition and lifestyle education as well as expanded exercise programming which will improve women's overall well-being. An online leadership class in collaboration with St. Petersburg College will begin in the spring of 2009. During February 2009, the organization is opening a resale and consignment shop which will provide on the job training skills to clients as well as generate funding for the mission driven programs. Management plans to rely on existing staff and the use of volunteers as well as utilizing residents from Family Village. In addition to establishing these new programs and initiatives, management will continue with its already established fundraising events which are expected to generate $85,000 in additional revenue. Management has also trimmed expenses, downsizing payroll by eliminating positions and streamlining administration costs for the current year. In total, operating expenses have been reduced by approximately $3.4 million. Program costs are being funded with approved contracts and grants, as well as program service fees. A building committee composed of real estate, mortgage, and banking professionals has been formed to determine the best and highest use of the administration building which is valued at approximately two million dollars in today's market and to explore rental opportunities to generate additional revenue. There has been a reactivation.of an aggressive funding development strategy, which had been inactive during the past few years, to gain support from both public and private enterprises in the community. The YWCA will capitalize on their 90 year history and deep roots in the community to foster a financially supportive environment. It is clear that YWCA took aggressive positive action to cut losses associated with losing 7WB funding and refocused existing resources on meeting the mission of YWCA. This is a proactive response to the changing economic climate and, in fact, positions the YWCA to create a more independent and healthier financial foundation that has less concentration of risk with any single funding source. 19 CER11I IED PUBLIC accourltarlt 29750 U.S. Hwy. 19 North, Suite 101 Clearwater, Florida 33761 INDEPENDENT A UDITORS' REPORT ON S UP P L E ME N TA R Y I N l I O R MA T I O N To the Board of Directors Young Women's Christian Association of Tampa Bay, Inc. and Affiliate St. Petersburg, Florida Our report on our audits of the combined financial statements of Young Women's Christian Association of Tampa Bay, Inc. and Affiliate for 2008 and 2007 appears on page one. Our audits were performed for the purpose of forming an opinion on the basic combined financial statements taken as a whole. The accompanying combined schedule of revenue and expenses by program for the years ended September 30, 2008 and 2007 and the schedule of expenditures of federal awards for the year ended September 30, 2008 are presented for purposes of additional analysis or as required by U.S. Office of Management and Budget Circular A-133, Audits of Stares, Local Governments, and Non-Profit Organizations, and are not a required part of the basic combined financial statements. Such. information has been. subjected to the auditing procedures applied in. the audits of the basic combined financial statements and, in our opinion, are fairly stated, in all material respects, in relation to the basic combined financial statements taken as a whole. Clearwater, Florida January 27, 2009 20 a °rv W k7 W a-, rl - - - r? r ui rn ' ° r? "'n vein ?O ire fr ? 4r p? N V n .. Nj ? h v M r r r r r ? 1 r r 1 r r ? r a e Q Mf •v ? e m V C? 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W m rp T P '~ m N 0 N N G m M n O V vii 1^ T r , O? 1? ?p r rg rv r-,arn yn ? or d rv ? N n v r [v V N vPi ^ v. eNV - N t+ m T N v ee T^ (v ?D O N ^ O a g HAI : sad a_? _? aA Y w Chi Qa mN[i F'.7F V F217 C]2.5 v N V H 0 0 C O r e ? O O v ? _1 o W 0 ca, v N P H O n o H o c v z y ? a }? H y G o y ? a y Y ? a om w ? j t z C a e C C y? 4 b e d H Q N a W a m 1? O m n .b.?? n rNir ea?e?eii 1 O h n Nvnpi a ?[?+v rmi b w w ems" V a0 t? b? ? V Q Y? N m V Oa vNOi n N ? ? rv? O° T ^? ? .. b N?^ -- ? n Fti N b a Id M H ' ' a r ' eNn rv N ? e? N ww yop N O. 00 ry ' ? a ? ? ? r+ ? b, 9' ' b N? N a ? N r N H v' O? ?r O??? N t? ?O ? - V b o cm? h y ti ,? ? 1 ? m w a c - a rv e - a k r r r r ,., r r r r ?y r p o ? r aa} n i r? „i o -_ 0 0 •? w ?` G ? m n ? r _ b v C H v m?{orn a a o ?•- rn - ?? %v n b ? .. N rv P ? ? eN'? N a ? n~„ a - - rv ? f* vi a m ao ao - V N N N rv `:n rn°m rim ? °°? n o+n ? ? r?M1O`yy ramp aN °v a0 0 ? ?, n- ?d,??o?vv ?o vpi O n h P e~o ? , , r r ? ? N a ? n m b .. ti n N''? N ? o O? m O m ,? ? .?, q V ? M r M G ? n ? ? ^ m rv v .di. M .- vOi ,n ? ? - O 4 b rn V' v' C '; ?yy T 'O Cf b rv 1G r P ^ ry 2! z r0 `O !V .- ?D 4 ? N M w N ' C e? ?'f bep ?p ' p N u? ?v 1? a ••• p y .. m N r, yN-, m 1+ T n , fV N N vii T r P W 1? h? w N aC T ,n N m p? •? S n? N n V n O_ c4 S » r+ `c} v.e N ^o ' r Q nv?Oi e2Ka?rrv?v n ?`"' ti g rn °' e? II N h m f+ P N N N - c ? II b M 0 a e a t1 m O qq Y y n c O C a M &e e 5aCy2? +? aC y e pp y "gip ° $ $ ep o G e _? O o b p 3 V G N Y Yi @?. •? •w U gC Y{ 5- _C _LF U r? C ,'" aU ar ?] ? U U V $`z, . ?iW o. 6a ra'u.F?FOt=?'? 7z0?? ??wN d yrJ R II s rv II 0 0 d b v Y Y YOUNG WOMEN'S CHRISTIANASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED SEPTEMBER 30, 2008 Federal Agency Pass-through Entity CFDA Contract/Grant Federal Prozram/State Proiect Number Numbers Expenditures U.S. Department of Agriculture Passed through Florida Department of Health Child and Adult Care Food Program U.S. Department of Housing and Urban Development Direct Program Supportive Housing Program Passed through City of St. Petersburg Community Development Block Grant Community Development Block Grant Passed through City of Clearwater Community Development Block Grant Total U.S. Department of Housing and Urban Development U.S. Department of Justice . Passed through the City of Clearwater Byrne Formula Grant Program Victim Advocacy/World Relief U.S. Department of Health and Human Services Passed through Pinellas County Health Department Healthy Start Victim Advocacy U.S. Department of Homeland Security Passed through United Way of Pinellas County Emergency Food and Shelter National Board Program 10.558 5-0437 $ 84,928 14.235 FL29B702012 151,434 14.218 YWC-95-CDBG-29 * 300,000 14.218 B-07-MC-12-0017 78,715 14.218 N/A 12,695 16.738 205-F 1346-FL-DT BR504894/BX-K008 H94M00054 HHSP23320062928 42,971 24,421 93.926 97.024 Total Expenditures of Federal Awards 542,844 35,719 11,078 1694-007 23.127 * This represents the balance of a loan from a previous year for which the federal government imposes continuing compliance requirements. 23 YOUNG WOMEN'S CHRISTMNASSOCL4TION OF TAMPA BAY, INC. AND AFFILIATE NOTES TO SCHEDULE OFEXPENDITURES OFFEDERAL AWARDS SEPTEMBER 30, 2008 BASIS OFPRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Young Women's Christian Association of Tampa Bay, Inc. (YWCA) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with accounting principles generally accepted in the United States of America as applicable to non-profit organizations and the requirements of OMB Circular A-133, Audits of States, Local Governments, and Nan-Profit Organizations. CONTINGENCIES Expenditures incurred by the YWCA are subject to audit and possible disallowance by the grantor agency. Management believes that if audited, any adjustments for disallowed expenses would be immaterial in amount. SUPPORT REQUIRING MATCHING FUNDS The YWCA receives funding from various sources that require the YWCA to provide matching funds. During the year ended September 30, 2008, the YWCA provided matching funds equal to or in excess of the required match amounts. 24 .......................................... 29750 U.S. Hwy. 19 North, Suite 101 < I?i'1f=I .L)F'1:E31._K Clearwater, FL 33761 REPORT ON -INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLL4NCE AND OTHER MATTERS BASED ONANA UDIT OF FINANCLAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Young Women's Christian Association of Tampa Bay, Inc. and Affiliate St. Petersburg, Florida We have audited the combined financial statements of Young Women's Christian Association of Tampa Bay, Inc. and Affiliate (the Organization) as of and for the year ended September 30, 2005 and have issued our report thereon dated January 27, 2009. 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. Internal Control over Financial Re ortin In planning and performing our audit, we considered the Organization's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. We did not identify any deficiencies in internal control over financial reporting that we consider significant, as defined above. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. 25 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON ANA UDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS -CONTINUED Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. We did not identify any deficiencies over financial reporting that we consider material weaknesses, as defined above. Con_U liance and Ot/rer Matters As part of obtaining reasonable assurance about whether the Organization's combined financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government'Auditing Standards. This report is intended for the information and use of the board of directors and management, others within the Organization, and federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited. Clearwater, Florida January 27, 2009 26 ................ .......................... -- - - .................... r29750 U.S. Hwy. 19 North, Suite 101 t;E F?rii lE::[7 f'tJ['[ 1C; Clearwater, FL 33761 REPORT ON COMPLIANCE WITH REQ UIREMENTS APPLICABLE TO EACHMAJOR PROGRAMAND ONINTERIVAL CONTROL OVER COMPL1ANCEIN ACCORDANCE WITH OMB CIRCULAR A-133 To the Board of Directors Young Women's Christian Association of Tampa Bay, Inc. and Affiliate St. Petersburg, Florida Compliance We have audited the compliance of Young Women's Christian Association of Tampa Bay, Inc. and Affiliate (the Organization) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended September 30, 2008. The Organization's major federal programs are identified in the summary of audit results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal programs is the responsibility of the Organization's management. Our responsibility is to express an opinion on the Organization's compliance with those requirements based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of ,States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organization's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Organization's compliance with those requirements. In our opinion, the Organization complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended September 30, 2008. Internal Control over Compliance The Organization's management is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Organization's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing an opinion on compliance and to test and report on internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over compliance. 27 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAMAND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 - CONTINUED A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that a noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A malarial weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended for the information and use of the board of directors and management, others within the Organization, and federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited. Clearwater, Florida January 27, 2009 28 YOUNG WOMEN'S CHRISTMNASSOCL47ION OF TAMPA BAY, INC. AND AFFILIATE SCHEDULE OFFINDINGSAND QUESTIONED COSTS SEPTEMBER 30, 2008 A. Summary o Audit Results 1. The auditors' report expresses an unqualified opinion on the combined financial statements. 2. No material weakness or significant deficiencies were identified during the audit of the combined financial statements. 3. No instances of noncompliance material to the combined financial statements, which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. 4. No deficiencies relating to the audit of the major federal award programs are reported in the report on compliance with the major federal award program. 5. The auditors' report on compliance for the major federal award programs expresses an unqualified opinion. 6. There are no audit findings that are required to be reported in accordance with Section 510(a) of OMB Circular A-133. 7. The following federal program tested as major programs included: Federal Pro ram CFDA No. U.S. Department of Housing and Urban Development - Community Development Block Grant 14.218 8. The threshold used for distinguishing between Type A and Type B programs was $300,000. 9. The auditee did not qualify as a low risk auditee pursuant to OMB Circular A-133. B. Findings -Financial Statements Audit None C. Findings and Questioned Costs, Maior Federal Awards Programs Audit None 29 YOUNG WOMEN'S CHRISTMNASSOCIATION OF TAMPA BAY, INC. AND AFFILIATE SCHEDULE OF FINDINGS AND QUESTIONED COSTS SEPTEMBER 30, 2008 D. Prior Year Findings -Financial Statement Audit Si ni icant De iciencies 2007-1 Documented Processes in Accounting for Agreement Condition: Lack of documentation of procedures as it relates to personnel changes in programs within the Juvenile Welfare Board (JWB) agreement. Result: Corrective action was taken. 2007-2 Vacation and Time-off Policy Condition: Vacations are not mandatory for key accounting personnel and tasks are not performed by another individual when someone is out. Result: Corrective action was taken. Material Weakness 2007-3 Approval of Pay Changes Condition: A lack of segregation of duties in processing payroll was noted. One employee prepared and processed payroll without proper authorization and segregation of duties. Result. Corrective action was taken. E. Other Issues 1. No Corrective Action Plan is required because there were no findings required to be reported related to the federal program. 2. No summary schedule of prior audit findings is required because there were no prior audit findings related to the federal program. 30