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HomeMy WebLinkAboutArc FinancialTHE ARC OF SOUTHEAST IOWA Iowa City, Iowa FINANCIAL STATEMENTS June 30, 2022 and 2021 TABLE OF CONTENTS INDEPENDENT AUDlTOR'S REPORT FINANCIAL STATEMENTS Statements of Financial Position .................. Statements of Activities ................................ Statements of Cash Flows ............................. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTES TO FINANCIAL STATEMENTS.............................................................I SUPPLEMENTAL INFORMATION Schedule of Program Service Revenue ........................................ Schedule of Functional Expenses ................................................. 1-2 ...................... 3 ......................4 ...................... 5 MEMBER OF AMERICAN ISTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors of The Arc of Southeast Iowa JAMES B. BUXTON, C.P.A. 1811 MUSCATINE AVENUE IOWA CITY, IOWA 52240-6414 (319) 354-7262 FAX (319) 338-3090 INDEPENDENT AUDITOR'S REPORT Report on the Audit of the Financial Statements MEMBER OF IOWA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Opinion I have audited the accompanying financial statements of The Are of Southeast Iowa (The Arc), (a non-profit organization), which comprise the statements of financial position as of June 30, 2022 and 2021, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of The Arc of Southeast Iowa as of June 30, 2022 and 2021, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion I conducted my audits in accordance with auditing standards generally accepted in the United States of America (GAAS). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am required to be independent of the Arc and to meet my other ethical responsibilities, in accordance with the relevant ethical requirements relating to my audits. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Arc's ability to continue as a going concern for a reasonable period of time. Auditor's Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements. ha performing an audit in accordance with GAAS,1• a. Exercise professional judgement and maintain professional skepticism throughout the audit. b. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. c. Obtain an understanding of internal control relevant to the audit 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 Arc's internal control. Accordingly, no such opinion is expressed. INDEPENDENT AUDITOR'S REPORT (cont.) d. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. e. Conclude whether, in my judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Arc's ability to continue as a going concern for a reasonable period of time. I am required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that I identified during the audit. Other Information My audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedule of Program Service Revenue and the Schedules of Functional Expenses on pages 13-15 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In my opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole wy,ti, Ply FaliMlEoaL June 19,2023 504 THE ARC OF SOUTHEAST IOWA Statements of Financial Position June 30, 2022 and 2021 2022 2021 Assets Current Assets Cash and cash equivalents $501,440 $292,249 Accounts receivable 126,005 258,806 Contribution receivable from United Way 28,950 28,968 Grants receivable 1,223 1,510 Prepaid expenses 33,160 27,332 Total current assets 690,778 608,865 Interest in Community Found. of Johnson County 10,000 10,000 Property and Equipment Land 307,736 307,736 Office building 726,020 714,270 Land improvements 197,483 191,528 Office furniture and equipment 158,245 158,245 Vehicles 81,715 32,715 1,471,199 1,404,494 Less accumulated depreciation 596,575 546,924 874,624 857,570 Total assets $1,575,402 $1,476,435 Liabilities and Net Assets Current Liabilities Accounts payable $15,389 $22,681 Current maturities of long-term debt 121,750 279,800 Accrued expenses 56,190 60,852 Long-term debt, less current maturities 321,264 444,266 Total liabilities 514,593 807,599 Net assets Unrestricted, without donor restrictions 1,050,809 658,836 Restricted, with donor purpose restrictions 10,000 10,000 Total net assets 1,060,809 668,836 Total liabilities and net assets $1,575,402 $1,476,435 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -3- Support and Revenue Program service revenue Interest income Contributions United Way of Johnson & Wash. Cos. City of Iowa City General public Donated rent, services, and supplies Grants US Dept. of Health & Human Services Medicaid MHDS of East Central Region Gain on PPP Loan forgiveness Gain -City Iowa City Loan forgiveness City of Iowa City United States Tress. Cares Act Credits State of Iowa Other grants Fund raising events Miscellaneous income Total support and revenue Net assets released from restrictions Total support, revenue, and net assets released from restrictions Expenses Program services Respite care Supported living Consumer directed attendant care Supported employment Other grants and programs Total program services Supporting activities Fundraising General and administrative Total supporting activities Total expenses THE ARC OF SOUTHEAST IOWA Statements of Activities Years Ended June 30, 2022 and 2021 Year Ended June 30, 2022 Without With Donor Donor Restrictions Restrictions Total Year Ended June 30, 2021 Without With Donor Donor Restrictions Restrictions Total $1,018,527 $0 $1,018,527 $960,264 $0 $960,264 1,837 0 1,837 257 0 257 28,932 0 28,932 28,968 0 28,968 20,895 0 20,895 19,938 0 19,938 44,639 0 44,639 47,124 0 47,124 5,250 0 5,250 12,466 0 12,466 71,248 0 71,248 117,340 0 117,340 0 0 0 36,797 0 36,797 105,000 0 105,000 41,246 0 41,246 251,896 0 251,896 251,875 0 251,875 0 0 0 51,000 0 51,000 0 0 0 17,190 0 17,190 208,601 0 208,601 220,536 0 220,536 169,220 0 169,220 0 0 0 21,533 0 21,533 16,996 0 16,996 19,495 0 19,495 17,028 0 17,028 1,919 0 1,919 3,797 0 3,797 1,968,992 0 1,968,992 1,842,822 0 1,842,822 0 0 0 12,250 (12,250) 0 1,968,992 0 1,968,992 1,855,072 (12,250) 1,842,822 197,748 0 197,748 240,393 0 240,393 110,840 0 110,840 124,439 0 124,439 7,532 0 7,532 27,471 0 27,471 379,178 0 379,178 241,405 0 241,405 290,183 0 290,183 180,894 0 180,894 985,481 0 985,481 814,602 0 814,602 4,292 0 4,292 3,990 0 3,990 587,246 0 587,246 612,134 0 612,134 591,538 0 591,538 616,124 0 616,124 1,577,019 0 1,577,019 1,430,726 0 1,430,726 Change in net assets 391,973 0 391,973 424,346 (12,250) 412,096 Net assets, beginning of year 658,836 10,000 668,836 234,490 22,250 256,740 Net assets, end of year $1,050,809 $10,000 $1,060,809 $658,836 $10,000 $668,836 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -4- THE ARC OF SOUTHEAST IOWA Statements of Cash Flows Years Ended June 30, 2022 and 2021 2022 2021 Cash flows from operating activities Change in net assets $391,973 $412,096 Adjustments to reconcile change in net assets to net cash (used) in operating activities: Depreciation 49,651 41,425 Donated rent, services, and supplies Included in support and revenue (5,250) (12,466) Included in expenses 5,250 12,466 Decrease (increase) in operating assets Accounts receivable 133,106 (128,378) Prepaid expenses (5,828) 781 Increase (decrease) in operating liabilities Accounts payable (7,292) (9,622) Accrued expenses (4,662) (37,879) Net cash provided by operating activities 556,948 278,423 Cash flows used by investing activities Purchase of office building improvements (11,750) (34,895) Purchase of land improvements (5,955) 0 Purchase of vehicle (49,000) (18,010) Donated office building improvements 0 0 Net cash (used) by investing activities (66,705) (52,905) Cash flows from financing activities Repayment of note to City of Iowa City 0 (51,000) Loan proceeds from SBA PPP Loan 0 249,800 Repayment of SBA PPP Loan (249,800) (249,800) Repayment of long-term debt (31,252) (25,452) Net cash provided (used) by financing activs. (281,052) (76,452) Net change in cash and cash equivalents 209,191 149,066 Beginning cash and cash equivalents 292,249 143,183 Ending cash and cash equivalents $501,440 $292,249 Sunolemental disclosures of cash flow information, Interest paid on operating loans $17,343 $17,050 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -5- THE ARC OF SOUTHEAST IOWA Summary of Significant Accounting Policies June 30, 2022 and 2021 Nature of activities. In general the Are of Southeast Iowa (the Arc) is an autonomous, self- governing, not for profit agency. The Arc is a dues -paying member of the Arc of Iowa and the Are of U.S. Associations that advocate and lobby for the rights of the disabled on the state and national level. The Are is also a dues -paying member of the Iowa Association of Community Providers, which is committed to promoting healthy and secure communities for children and adults with disabilities. Since 1958 the Arc has focused on inclusion for persons with developmental disabilities in their home communities throughout their lifespan. The Arc is committed to being a leader in offering information, services, and advocacy to individuals with developmental disabilities, their families, and community: to promote informed choices and the realization of their goals relating to where and how they live, learn, work, and play. The Arc's fiscal year ends on June 30. The Arc's programs include respite care, which provides services to families to provide relief from the daily care of a family member with a disability. The supported living program provides services to assist individuals with disabilities to work toward personal, employment, and educational related goals. Other program services include advocacy and awareness, supported employment, consumer directed attendant care, services to children with a disability living at home, and site -based daycare services. Medicaid, under its waiver program, pays for a substantial portion of the services provided by the Arc. Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Certain siaiificant estimates. The accrual for accounts receivable and unbilled services and the liability for estimated third party settlements involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near -term future and that the effect could be material to the financial statements. Revenue recognition. Revenue from services is recognized as the services are performed, primarily on the basis of hours of service provided, at estimated net realizable amounts. Unbilled services represent services provided for which billings have not been processed. Revenue from certain employment and training related services are recognized upon the achievement of specified milestones. Contract and grant revenue is recognized on a cost reimbursement basis as expenditures are incurred. Medicaid services are subject to annual audits of rates that are based upon actual costs and are subject to retroactive fee adjustments as determined by the funding agencies. Such adjustments are estimated and recorded when it is probable that an adjustment will be required. Fee adjustments are reported as a reduction in revenue, if determined in the same period as the original billing is made, and adjustments determined in a subsequent year are shown as a line item on the statement of activities in the year of the adjustment determination. 0 THE ARC OF SOUTHEAST IOWA Summary of Significant Accounting Policies June 30, 2022 and 2021 Income taxes. The Are is a non-profit organization and is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code of 1954 and classified by the Internal Revenue Service as other than a private foundation. There was no unrelated business income for the years ended June 30, 2022 and 2021. Functional allocation of expenses. Directly identifiable expenses are charged to programs and supporting services. Expenses related to more than one function are charged to programs and supporting services on the basis of periodic time and expense studies. General and administrative expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization. Basis of presentation. Net assets, revenues, gains, and losses are classified based on the existence or absence of donor or grantor imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions. Net assets available for use in general operations and not subject to donor (or certain grantor) restrictions. Net Assets With Donor Restrictions. Net assets subject to donor (or certain grantor) imposed restrictions. Restricted and unrestricted revenue. The Organization recognizes contributions when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in Net Assets Without Donor Restrictions if the restrictions expire (when a stipulated time restriction ends or purpose restriction is accomplished) in the fiscal year in which the revenue is recognized. All other donor -restricted contributions are reported as increases in Net Assets With Donor Restrictions. When a restriction expires, restricted net assets are reclassified to unrestricted net assets and reported in the Statements of Activities as net assets released from restrictions. Cash and cash equivalents. For purposes of the Statement of Cash Flows, the Arc considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Accounts receivable. Accounts receivable are carried at original invoice amount. Accounts receivable are anticipated to be fully collectible and no allowance or provision for doubtful accounts has been provided. Interest in Communitv Foundation of Johnson Countv. Assets held by the Community Foundation of Johnson County are treated as an asset by the Are because the Are has specified itself as the beneficiary. The assets are carried at cost. Property and equipment. These assets are stated at cost. Depreciation is computed primarily by the straight-line method. The estimated service lives used to compute depreciation are 7 to 39 years for -7- THE ARC OF SOUTHEAST IOWA Summary of Significant Accounting Policies June 30, 2022 and 2021 Pronertv and equipment (continued). the building and components, 10 to 15 years for land improvements, 5 to 10 years for furniture, equipment, and vehicles, and 3 years for software. Land cost is not depreciated. Additions or betterments of $1,000 or more are capitalized, while maintenance and repairs that do not improve or extend the useful lives of the respective assets are charged to expense as incurred. Upon sale or retirement of fixed assets, the costs and related accumulated depreciation are eliminated from the accounts. Any resulting gains or losses are included in the determination of net income. 12 THE ARC OF SOUTHEAST IOWA Notes to Financial Statements June 30, 2022 and 2021 Note 1. Net Assets With Donor Restrictions. Net assets with donor restrictions are restricted for the following purposes as of June 30, 2022 and 2021: 2022 2021 Interest in endowment fund at Community Foundation 10 0 0 000 Net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose or by occurrence of the passage of time or other events specified by the donors as follows for the years ended June 30, 2022 and 2021: 2022 2021 Interest in endowment fund at Community Foundation $ 0 $ 0 Purchase of bus 0 12,250 Total 0 12 Note 2. Interest in Community Foundation of Johnson County. On June 29, 2004, the Arc transferred $10,000 to the Community Foundation of Johnson County (the Foundation) and designated itself as the beneficiary. The Arc designated the funds to The Are of Johnson County Endowment Fund (the Endowment Fund), which has since been renamed as The Arc of Southeast Iowa Endowment Fund. Other donors may contribute to the Endowment Fund. The Are is entitled to an annual distribution of funds from the Endowment Fund. The Arc elected distributions of $1,223 and $1,510, respectively, in July, 2022 and 2021, which was equal to 5.00% and 5.00%, respectively, of the total balance in the Endowment Fund as of June 30, 2022 and 2021. The Arc is entitled to a maximum annual distribution from the Endowment Fund in the amount of 5.00% of the total balance in the Endowment Fund as of the end of the preceding fiscal year ending June 30. The Are reports its interest in the net assets of the Endowment Fund held by the Foundation as a $10,000 asset for the principal amount invested and as a charitable contribution when received for the annual distribution of funds from the Endowment Fund. The $10,000 Endowment Fund asset is a restricted fund and as such is reported as a restricted portion of the net assets of the Arc. Note 3. Long-term debt. Long-term debt at June 30, 2022 and 2021 consists of the following: 2022 2021 Note savable to Hills Bank & Trust Comnanv of Hills. Iowa Promissory note dated April 2, 2007 in the amount of $640,000, due August 1, 2025, interest rate 4.17%, monthly payments $3,500. Secured by a building, improvements, land, and land improvements with a June 30, 2022 net book value of $812,671. Current portion at June 30, 2022 is $28,000. $ 349,264 $ 380,516 0 THE ARC OF SOUTHEAST IOWA Notes to Financial Statements June 30, 2022 and 2021 Note 3. (cont.) 2022 2021 Note savable to Citv of Iowa Citv. Iowa Note payable, dated June 4, 2015 in the amount of $93,750, due June 30, 2023, interest rate 0.00%, forgivable mortgage, entire balance forgiven when due if property is used to allow daily onsite programming for disabled children. Loan proceeds used for ADA compliant accessible playground equipment. Secured by a building, improvements, land, and land improve- ments with a June 30, 2022 net book value of $812,671. Current portion at June 30, 2022. $ 93,750 $ 93,750 Note savable to the United States Small Business Administration Note payable, unsecured, fully guaranteed by U.S.. Government. $249,800 note, dated 2/16/21, due 2/16/23, interest rate 1.01%, mo. payments $14,058, beginning 9/16/21. Loan is a Small Business Administration Loan made through the Paycheck Protection Program and the entire principal amount of the loan will be forgiven provided that the Organization utilized the loan proceeds in accordance with SBA quidelines. This loan was forgiven during the fiscal year ended June 30, 2022. Current portion at June 30, 2022. $ 0 249,800 Total notes payable $ 443,014 $ 724,066 Less current portion of long-term debt 121,750 279,800 Total notes payable, net current portion 21 264 444 266 Estimated annual maturities of the long-term debt are as follows: Year ending June 30, 2023 $ 121,750 Year ending June 30, 2024 29,118 Year ending June 30, 2025 30,391 Year ending June 30, 2026 261,755 Year ending June 30, 2027 -0- Years ending after June 30, 2027 -0- Total 443 Interest expense on notes payable to Hills Bank & Trust Company amounted to $15,144 and $16,476 for the years ended June 30, 2022 and 2021, respectively. Interest expense forgiven on the notes payable to the SBA amounted to $2,095 and $2,075 for the years ended June 30, 2022 and 2021, respectively, and is included in the expenses and income for the respective fiscal years. -10- THE ARC OF SOUTHEAST IOWA Notes to Financial Statements June 30, 2022 and 2021 Note 4. Proaram service fees. The Are receives program fees in various forms. Consumers qualify for Medicaid and various supported community living programs depending upon their individual needs. The Arc receives Medicaid funds and county funds for supported community living programs. Note 5. Business and credit concentrations. The Arc's main revenue source is program service fees. During the year ended June 30, 2022, the Arc received $1,009,054 from Medicaid funds, area counties, and site -based daycare services, which is approximately 51.25% of the Arc's revenue for the fiscal year ended June 30, 2022. The amount due the Are as of June 30, 2022 included $116,961 from Medicaid and county funds. The Arc currently assists consumers in Iowa City, Iowa and the surrounding Southeast Iowa area. Note 6. Comoensated absences. In addition to salaries and wages accrued in the normal course of business, the Arc has accrued $33,523 and $38,409 for the estimated cost of vacation pay earned, but not taken, by its employees as of June 30, 2022 and 2021, respectively. Note 7. Eouinment leases. As of June 30, 2022, the Are was obligated on equipment leases for technological equipment, including a mailing system, printer/copier/fax machines, computer systems, and a telephone system. The total rental expense for the above equipment included in the statements of activities for the years ended June 30, 2022 and 2021 is $15,853 and $18,677, respectively. Note 8. Membership fees. The Arc is a member of The Arc of the United States and The Arc of Iowa. Membership fees to the national and state organizations totaled $6,156 and $4,806 for the years ended June 30, 2022 and 2021, respectively. Note 9. Donated rent, services, and supplies. During the year ended June 30, 2022 the Are received $5,250 and $12,466 in donated rent, services, and supplies, which is respectively included in the Arc's support and revenue and expenses for the years ended June 30, 2022 and 2021. Note 10. Retirement elan. The Are maintains an employee retirement plan for employees who reach eligibility after one year of employment. Contributions to the plan are discretionary. Contributions accrued and paid by The Arc to this plan for the years ended June 30, 2022 and 2021 were $10,303 and $9,859, respectively. Note 11. Contineencv-fundina sources. Major funding sources require the Are to file cost reports that are used to determine future provider hourly reimbursement rates. Also, the funding agencies may determine that the Arc needs to reimburse the funding agencies if it is determined that the Arc has received cost reimbursements during the fiscal year in excess of the amounts calculated in the cost reports. Management estimates no additional liability. Belo THE ARC OF SOUTHEAST IOWA Notes to Financial Statements June 30, 2022 and 2021 Note 12. Liouidity and availability. Financial assets available for general expenditure, without donor or other restrictions limiting their use, within one year of the balance sheet date, comprise the following: Cash and cash equivalents Accounts receivable Total $ 501,440 156,178 $657,618 Note 13. Subsequent events. Subsequent events were evaluated through June 19, 2023, which is the date of the financial statements. Beginning in March, 2020, the Coronavirus (COVID-19) was declared a global pandemic. Most services provided by the Organization were shut down during March, 2020 and have been ramping back up since then. Future potential impacts may include continued disruptions or restrictions on the Organization's employees' ability to work and impairment of the Organization's ability to provide services. Management is carefully monitoring its options during this time. The future effects of these issues are unknown. No adjustments have been made to these financial statements as a result of this uncertainty. On June 1, 2022, the Organization entered into a $738,200 remodeling and addition contract for the expansion of the Organization's childcare center. The Organization's plan is to pay for the contract with funds provided by a $274,530 Iowa Workforce Development grant that was approved during the year ended June 30, 2022, as well as refinancing the Organization's office building mortgage. As of June 19, 2023 the contractor had completed the remodeling and addition project, the grant funds had been received, and the mortgage had been refinanced. As part of the expansion of the organization's childcare program, the administrative offices were moved to leased space effective July 1, 2022. -12- THE ARC OF SOUTHEAST IOWA Schedule of Program Service Revenue Years Ended June 30, 2022 and 2021 2022 2021 Respite services Medicaid billings $197,401 $274,324 Less estimated rate adjustments 0 0 Counties 0 0 Private 9,473 23,236 206,874 297,560 Supported living services Medicaid billings 110,175 144,215 Less estimated rate adjustments 0 0 Other counties 5,829 9,324 Private 0 574 116,004 154,113 Consumer directed attendant care, billings 7,838 33,968 Less estimated rate adjustments 0 0 Private 0 0 7,838 33,968 Supported employment 396,739 298,867 Less estimated rate adjustments 0 0 396,739 298,867 Other services Vocational rehabilitation services 6,448 25,898 Summer camp 17,494 45,374 Dayhab services 204,949 97,475 Site based services 62,181 7,009 291,072 175,756 Total program service revenue $1,018,527 $960,264 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -13- Salaries Employee benefits Payroll taxes Workers' compensation ins. Accreditation Advertising and public relations Awards and grants Background checks Depreciation Employment advertising and recruiting Equipment repairs Insurance Interest expense Miscellaneous Occupancy Organization memberships Postage Professional fees Purchase of service Scholarship awards Staff development Supplies Telephone and internet Transportation Totals THE ARC OF SOUTHEAST IOWA Schedule of Functional Expenses Year Ended June 30, 2022 Consumer Respite Supported Directed Other General Care Living Attendant Supported Grants and Fund- and Services Services Care Emolovment Programs raisin_ Administrative $124,331 $69,675 $4,743 $238,387 174,922 $0 $517,201 6,270 3,514 239 12,021 8,820 0 26,081 9,283 5,202 354 17,799 13,061 0 38,617 1,285 720 49 2,465 1,809 0 5,347 1,420 796 53 2,723 1,998 0 0 489 274 19 937 687 0 0 0 0 0 0 11,956 0 0 761 427 29 1,459 1,071 0 0 10,084 5,655 382 19,339 14,191 0 0 768 430 29 1,473 1,083 0 0 1,470 824 58 2,820 2,067 0 0 4,315 2,420 164 8,276 6,072 0 0 3,501 1,964 133 6,715 4,926 0 0 0 0 0 0 0 4,292 0 4,652 2,609 176 8,922 6,547 0 0 2,063 1,157 78 3,957 2,904 0 0 282 158 11 541 396 0 0 6,783 3,804 257 13,007 9,544 0 0 972 545 37 1,864 1,367 0 0 0 0 0 0 0 0 0 725 406 27 1,390 1,020 0 0 14,275 8,006 541 27,376 20,088 0 0 1,836 1,030 70 3,521 2,583 0 0 2,183 1,224 83 4,186 3,071 0 0 $197,748 $110,840 $7,532 $379,178 $290,183 $4,292 $587,246 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. Total $1,129,259 56,945 84,316 11,675 6,990 2,406 11,956 3,747 49,651 3,783 7,239 21,247 17,239 4,292 22,906 10,159 1,388 33,395 4,785 0 3,568 70,286 9,040 10,747 $1,577,019 -14- Salaries Employee benefits Payroll taxes Workers' compensation ins. Accreditation Advertising and public relations Awards and grants Background checks Depreciation Employment advertising and recruiting Equipment repairs Insurance Interest expense Miscellaneous Occupancy Organization memberships Postage Professional fees Purchase of service Scholarship awards Staff development Supplies Telephone and internet Transportation Totals THE ARC OF SOUTHEAST IOWA Schedule of Functional Expenses Year Ended June 30, 2021 Consumer Respite Supported Directed Other General Care Living Attendant Supported Grants and Fund- and Services Services Care Employment Proeams raising Administrative $141,392 $73,175 $16,162 $141,987 83,487 $0 $535,324 6,768 3,502 774 6,796 3,996 0 25,622 11,574 5,990 1,323 11,622 6,834 0 43,818 1,946 1,007 222 1,955 1,149 0 7,370 1,915 992 219 1,924 1,131 0 0 227 117 26 228 134 0 0 0 0 0 0 38,943 0 0 1,088 564 124 1,093 643 0 0 12,838 6,649 1,466 12,891 7,581 0 0 333 172 38 334 197 0 0 5,615 2,908 641 5,639 3,316 0 0 5,773 2,990 659 5,797 3,410 0 0 5,749 2,977 657 5,773 3,395 0 0 0 0 0 0 0 3,990 0 7,756 4,017 886 7,789 4,581 0 0 2,844 1,473 325 2,856 1,680 0 0 725 376 83 729 428 0 0 10,381 5,377 1,186 10,425 6,130 0 0 1,748 905 200 1,755 1,033 0 0 0 0 0 0 0 0 0 1,453 752 166 1,459 857 0 0 14,457 7,487 1,651 14,517 8,537 0 0 2,621 1,357 299 2,632 1,547 0 0 3,190 1,652 364 3,204 1,885 0 0 $240,393 $124,439 $27,471 $241,405 $180,894 $3,990 $612,134 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. Total $991,527 47,458 81,161 13,649 6,181 732 38,943 3,512 41,425 1,074 18,119 18,629 18,551 3,990 25,029 9,178 2,341 33,499 5,641 0 4,687 46,649 8,456 10,295 $1,430,726 -15-