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HomeMy WebLinkAboutDVIP Financial_RedactedDOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. FINANCIAL STATEMENTS AND SINGLE AUDIT COMPLIANCE REPORT YEARS ENDED JUNE 30, 2023 AND 2022 CPAs I CONSULTANTS I WEALTH ADVISORS CLAconnect.com DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. TABLE OF CONTENTS YEARS ENDED JUNE 30, 2023 AND 2022 INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION STATEMENTS OF ACTIVITIES STATEMENTS OF FUNCTIONAL EXPENSES STATEMENTS OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION 1 4 5 7 9 10 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 20 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 22 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 41. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 28 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 29 CU!,con amonAllen LLP OF CLRcon rsonum INDEPENDENT AUDITORS' REPORT Board of Directors Domestic Violence Intervention Program, Inc. Iowa City, Iowa Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of Domestic Violence Intervention Program, Inc. (the Agency), which comprise the statements of financial position as of June 30, 2023 and 2022, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Agency as of June 30, 2023 and 2022, 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 We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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. CLA (cnkonlarzonAnen uP) is an ledapendent retwol-K memoerof CW Global see n Adnhzl mm/tllalaimer. 0) Board of Directors Domestic Violence Intervention Program, Inc. 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 Agency's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Auditors' Responsibilities for the Audit of the Financial Statements Our 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 auditors' report that includes our 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 and Government Auditing Standards 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 judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • 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. • 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 Agency's internal control. Accordingly, no such opinion is expressed. • 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. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency's ability to continue as a going concern for a reasonable period of time. We are 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 we identified during the audit. (2) Board of Directors Domestic Violence Intervention Program, Inc. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2024, on our consideration of the Agency'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 solely 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 effectiveness of the Agency's 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 the Agency's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Cedar Rapids, Iowa March 14, 2024 (3) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. STATEMENTS OF FINANCIAL POSITION JUNE 30, 2023 AND 2022 2023 2022 ASSETS CURRENTASSETS Cash $ 23,841 $ 111,083 Investments 95,922 61,277 Grants Receivable 235,801 227,421 Contributions Receivable- United Way 75,2D0 76,500 Pledges Receivable - Capital Campaign 213,255 107,146 Prepaid Expenses 8.567 15.701 Total Current Assets 652,586 599,128 LONG-TERM PLEDGES RECEIVABLE- CAPITAL CAMPAIGN, NET 280,957 167,962 BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FOUNDATION 7,832 7,174 PROPERTY AND EQUIPMENT Land 300,146 300,146 Building and Improvements 1,428,029 1,255,718 Equipment 53,662 53,662 Vehicles 66,179 66,179 Construction in Progress 800.246 141.500 Total 2,648,462 1,817,405 Less: Accumulated Depreciation /861.3941 //7794.288) Net Property and Equipment 1,787,068 1.023.137 Total Assets $ 2.728.443 $ 1.797.401 LWBILITIESAND NETASSETS CURRENT LIABILITIES Accounts Payable $ 116,994 $ 16,315 Accrued Expenses 179,430 182,165 Current Maturities of Note Payable 7.195 6,976 Total Current Liabilities 303,619 205,456 LONG-TERM LIABILITIES Note Payable 157,425 164,635 CDBG Loan 355.018 113.895 Total Long -Term Liabilities 512.443 278.530 Total Liabilities 816,062 483,986 NET ASSETS Without Donor Restrictions 333,821 539,771 With Donor Restrictions 1.578,560 773.644 Total Net Assets 1,912,381 1.313.415 Total Liabilities and Net Assets $ 2,728.443 $ 1,797.401 See accompanying Notes to Financial Statements. (4) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2023 SUPPORT AND REVENUE Contributions Capital Campaign Contributions United Way Allocation City and County Grants Federal and Stale Grants In -Kind Contributions Payroll Protection Program Loan Forgiveness Miscellaneous Income Fundraisers, Net Investment Income, Net Change in Beneficial Interest in Assets Held by Community Foundation Loss on Disposal of Property and Equipment Net Assets Released from Restrictions, Satisfaction of Purpose and Time Restrictions Total Support and Revenue EXPENSES Program Services Supporting Activities: General and Management Fundraising Total Expenses CHANGE IN NET ASSETS Net Assets - Beginning of Year NET ASSETS - END OF YEAR iIr➢lr'. Without Donor With Donor Restrictions Restrictions Total $ 458,529 $ 2,659 $ 461,188 - 865,882 865,882 14,804 77,350 92,154 146,153 - 146,153 1,419,477 25,000 1,444,477 30,252 18,228 48,480 488 - 488 13,188 - 13,188 41,383 - 41,383 15 13,020 13,035 658 - 658 (1,672) - (1,672) 197.223 (197,223) - 2,320,498 04,916 3,125,414 1,961,016 - 1,961,016 305,249 - 305,249 260.183 - 260.183 2.526.448 - 2.526.448 (205,950) 804,916 598,966 539,771 773,644 1.313.415 $ 333.821 S t578.560 $ 1.912.381 See accompanying Notes to Financial Statements. (5) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022 2022 Without Donor With Donor Restrictions Restrictions Total SUPPORT AND REVENUE Contributions $ 499,109 $ 9,298 $ 508,407 Capital Campaign Contributions 560,448 560,448 United Way Allocation 18,781 $4,916 103,697 City and County Grants 122,339 - 122,339 Federal and State Grants 1,592,986 25,000 1,617,986 In-IOnd Contributions 62,655 25,715 88,370 Payroll Protection Program Loan Forgiveness 46,270 - 46,270 Miscellaneous Income 10,661 - 10,661 Fundraisers, Net 23,879 - 23,879 Investment Income, Net 15 11,278 11,293 Change in Beneficial Interest in Assets Held by Community Foundation (1,461) - (1,461) Net Assets Released from Restrictions, Satisfaction of Purpose and Time Restrictions 74.017 (74,017) - Total Support and Revenue 2,449,251 642,638 3,091,889 EXPENSES Program Services 1,955,701 - 1,955,701 Supporting Activities: General and Management 234,668 - 234,668 Fundraising 261,679 - 261,679 Total Expenses 2.452.048 - 2.452.048 CHANGE IN NET ASSETS (2,797) 642,638 639,841 Net Assets- Beginning of Year 542,568 131, 006 673,574 NET ASSETS - END OF YEAR S 539.771 S 773.644 $ 1.313.415 See accompanying Notes to Financial Statements. (6) Salaries Employee Benefits Payroll Taxes Insurance Professional Expense Building and Equipment Repairs Resident Assistance Occupancy Telephone Office Supplies and Postage Travel Dues and Memberships Program Supplies Staff Development Service Charges Interest Expense Depreciation Total Expenses Less: Expenses Netted Against Revenues on the Statement of Activities: Cost of Direct Benefits to Donors Total Expenses Included in the Expense Section of the Statement of Activities DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30, 2023 OZ@k*i. Program Services Supporting Activities Total Program General and Total Outreach Shelter Services Management Fundraising Expenses $ 584,104 $ 532,136 $ 1,116,240 $ 182,202 $ 131,231 $ 1,429,673 51,320 50,130 101,450 13,231 13,649 128,530 42,681 41,690 84,371 11,004 11,517 106,892 9,727 16,919 26,646 3,583 2,013 32,242 7,642 4,443 12,085 34,950 65,010 112,045 632 62,524 63,156 11 - 63,167 342,147 - 342,147 - - 342,147 10,760 24,862 35,622 4,594 2,222 42,438 20,847 9,670 30,517 24,079 3,607 58,203 2,462 2,958 5,420 6,586 14,256 26,262 38,118 163 38,281 - 5 38,286 11,255 10,255 21,510 3,510 2,529 27,549 4,454 9,451 13,905 1,718 10,945 26,568 347 189 536 6,353 704 7,593 3 11 14 2,975 2,267 5,256 - 6,119 6,119 170 - 6,289 32.964 30.033 62.997 10283 7.406 80.686 1,159,463 801,553 1,961,016 305,249 267,561 2,533,826 - - - - 7.378 7.378 $ 1,159,463 S 801.553 $ 1.961.016 $ 305.249 $ 260.183 $ 2.526.448 See accompanying Notes to Financial Statements. m Salaries Employee Benefits Payroll Taxes Insurance Professional Expense Building and Equipment Repairs Resident Assistance Occupancy Telephone Office Supplies and Postage Travel Dues and Memberships Program Supplies Staff Development Service Charges Interest Expense Depreciation Total Expenses Less: Expenses Netted Against Revenues on the Statement of Activities: Cost of Direct Benefits to Donors Total Expenses Included in the Expense Section of the Statement of Activities DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30, 2022 Program Services Total Program Outreach Shelter Services $ 646,153 $ 413,250 $ 1,059,403 66,357 46,029 112,386 46,994 32,598 79,592 10,020 14,541 24,561 4,830 1,725 6,555 1,224 45,533 46,757 343,877 55,753 399,630 11,264 23,516 34,780 20,401 10,671 31,072 5,327 14,132 19,459 47,469 121 47,590 11,829 7,567 19,396 3,499 6,122 9,621 406 299 705 31 594 625 - 5,807 5,807 35229 22.533 57.762 1,254,910 700,791 1,955,701 Supporting Activities General and Total Management Fundraising Expenses $ 139,948 $ 132,187 $ 1,331,538 15,462 16,174 144,022 10,951 11,455 101,998 2,727 1,902 29,190 27,699 74,417 108,671 - 3 46,760 - 399,630 3,820 1,708 40,308 6,798 1,100 38,970 8,936 17,992 46,387 124 5 47,719 2,561 2,420 24,377 - - 9,621 2,136 81 2,922 4,768 2,861 8,254 1,108 - 6,915 7,630 7,207 72.599 234,668 269,512 2,459,881 7.833 7.833 $ 1,254,910 $ 700,791 $ 1.955.701 $ 234.668 $ 261.679 $ 2.452.048 See accompanying Notes to Financial Statements. (8) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2023 AND 2022 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ 598,966 $ 639,841 Adjustments to Reconcile Change in Net Assets to Net Cash Used by Operating Activities: Depreciation 80,686 72,599 Unrealized (Gain) Loss on Investments (15,227) 7,006 Realized (Gain) Loss on Investments 3,335 (17,689) Donated Property and Equipment (42,028) (75,90(3) Loss on Disposal of Property and Equipment 1,672 - Payroll Protection Program Loan Forgiveness - (46,270) Capital Campaign Contributions Received (583,060) (285,340) Change in Beneficial Interest in Assets Held by Community Foundation (658) 1,461 Effects of Changes in Operating Assets and Liabilities: Grants Receivable (8,380) (8,796) Contributions Receivable 1,300 (3,500) Pledges Receivable (219,104) (275,108) Prepaid Expenses 7,134 1,947 Accounts Payable 1,897)j AccruedExpenses ((1,976)j (( Cash Used by Operating Activities (116,123J (14,751J CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Property and Equipment (705,558) (66,178) Purchase of Investments (179,137) (135,149) Proceed from Sale of Investments 156.384 84.554 Net Cash Used by Investing Activities (728,311) (116,773) CASH FLOWS FROM FINANCING ACTIVITIES Capital Campaign Pledge Payments Received 583,060 285,340 Payments on Note Payable (6,991) (6,718) Proceeds from CDBG Loan 241,123 - Repayments of Line of Credit - 46.711) Net Cash Provided by Financing Activities 817.192 131.911 NET INCREASE (DECREASE) IN CASH (87,242) 100,387 Cash - Beginning of Year 111,083 10.696 CASH - END OF YEAR $ 23.841 $ 711.083 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash Paid for Interest Expense $ 6.289 $ 6.915 SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES Donated Property and Equipment $ 42.028 $ 75.906 Property and Equipment Additions Included in Accounts Payable $ 98,703 $ See accompanying Notes to Financial Statements. (9) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities The Domestic Violence Intervention Program, Inc. (the Agency) was created to provide shelter and support services for families who are victims of domestic violence. The Agency serves Cedar, Des Moines, Henry, Iowa, Johnson, Lee, Van Buren, and Washington counties. Significant accounting policies followed by the Agency are presented below. Use of Estimates in Precarino Financial Statements 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 amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses, and other changes in net assets during the reporting period. Actual results could differ from those estimates. Investments Investments are recorded at fair market value, with gains and losses resulting from market fluctuations recognized in the period in which the fluctuations occur. Investment return consists of interest and dividend income, realized and unrealized gains and losses, less external investment expenses, and is reported in the statement of activities as an increase or decrease in net assets without donor restrictions unless the use of the assets is restricted by the donor. Prooertv and Eauioment Property and equipment which were purchased are staled at their original cost, and donated property and equipment are recorded at fair market value at the date of receipt. Expenditures for property and equipment in excess of $5,000 are capitalized. All property and equipment are depreciated over their estimated useful lives ranging from 5 years to 40 years using the straight-line method of depreciation. Net Assets Net assets are based on the existence or absence of donor -imposed restrictions. The following is a description of each class: Net Assets Without Donor Restrictions — Net assets available for use in general operations and not subject to donor -imposed restrictions. The Agency's governing board may earmark portions of its net assets without donor restrictions as board -designated for various purposes. Net Assets With Donor Restrictions — Net assets subject to donor -imposed restrictions which will be satisfied by actions of the Agency or passage of time. (10) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Grants Receivable Substantially all of the Agency's grants receivable is third -party reimbursements due from governmental units. Grants receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Grants receivable are written off when deemed uncollectible. Recoveries of grants receivable previously written off are recorded when received. No allowance and provision for doubtful accounts has been made for the years ended June 30, 2023 and 2022. Revenue Recognition Contributions are recognized when cash, other assets, an unconditional promise to give, or a notification of a beneficial interest is received. Conditional promises to give, that is, those with a measurable performance or other barrier, and a right of return, are not recognized until the conditions on which they depend have been substantially met. All contributions receivable at June 30, 2023 and 2022, are due within one year. A portion of revenue is derived from cost -reimbursable federal, state, city, and county grants, which are conditioned upon certain performance requirements and/ or the incurrence of allowable qualifying expenses. Amounts received are recognized as revenue when expenditures have been incurred in compliance with specific grant provisions. Amounts received prior to incurring qualifying expenditures are reported as refundable advances in the statement of financial position. As of June 30, 2023 and 2022, $766,964 and $593,310 of cost reimbursable grants, respectively, have not been recognized as revenue because qualifying expenditures have not yet been incurred. No amounts have been received in advance under federal, state, city, and county grants. Fundraising revenue is equal to the fair value of direct benefits to donors, and contribution revenue for the difference. The contribution portion is recognized at a point in time when received and the direct benefits to donors portion is recognized as events occur. Fundraising revenue received during the current period in exchange for services that will occur in the next fiscal period is deferred until that time. A number of volunteers have made significant contributions of their time in the furtherance of the Agency's programs. The value of this contributed time is not reflected in the accompanying statements of activities because the donated services do not create or enhance nonfinancial assets, require specialized skills, or would typically need to be purchased if not provided by donation. DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Beneficial Interest in Assets Held by Community Foundation Certain funds are held by the Community Foundation of Johnson County (the Foundation), in permanent designated agency endowment funds, for the benefit of the Agency. The transactions with the Foundation are deemed to be reciprocal and, therefore, the value of the funds held by the Foundation is recognized as an asset (beneficial interest in assets held by community foundation) by the Agency. Control over the investment or reinvestment of the funds is exercised exclusively by the Foundation. The designated fund is available at any time for distribution to the Agency. During the years ended June 30, 2023 and 2022, no funds were distributed to the Agency. Functional Expenses The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated include salaries, employee benefits, insurance, occupancy, dues and memberships, and depreciation, which are allocated on the basis of estimates of time and effort. Income Taxes The Agency is exempt from income taxes under provisions of Section 501(c)(3) of the Internal Revenue Code. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The Agency had no uncertain tax positions that are required to be recorded as of June 30, 2023 or 2022. Adoption of Accountina Princiole In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). This new standard increases transparency and comparability among organizations by requiring the recognition of right -of - use (ROU) assets and lease liabilities on the statement of financial position. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Agency adopted the requirements of the guidance effective for the year ended June 30, 2023, and has elected to apply the provisions of this standard to the beginning of the period of adoption. (12) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Adoption of Accountino Principle (Continued) The Agency has elected to adopt the package of practical expedients available in the year of adoption. The Agency has elected to adopt the available practical expedient to use hindsight in determining the lease term and in assessing impairment of the Agency's ROU assets. The Agency has no material leases subject to Topic 842 for the year ended June 30, 2023. NOTE2 LIQUIDITY AND AVAILABILITY Financial assets available for general expenditure, that is, without donor or other restrictions, limiting their use, within one year of the statement of financial position date, comprise the following as of June 30: Cash Investments Grants Receivable Contributions Receivable - United Way Total 2023 2022 $ 23,841 $ 111,083 95,922 61,277 235,801 227,421 75,200 76,500 $ 430.764 $ 476.281 The Agency receives contributions each year from donors, which are available to meet annual cash needs for general expenditures. All grant funds are paid monthly over a 12-month period. For the purposes of analyzing resources available to meet general expenditures over a 12-month period, the Agency considers all expenditures related to its ongoing activities of shelter and outreach services, as well as conduct of services undertaken to support those activities as general expenditures. In addition, to help manage unanticipated liquidity needs, the Agency has a committed line of credit in the amount of $300,000 which can be drawn upon. NOTE 3 INVESTMENTS The composition of investments is as follows at June 30 2023 2022 Cash and Cash Equivalents $ 2,892 $ 2,255 Mutual Funds: Fixed Income 25,617 16,647 Equities 67,413 42.375 Total Investments $ 95.922 $ 61.277 (13) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 3 INVESTMENTS (CONTINUED) The composition of investment return is as follows for the years ended June 30: Interest and Dividends Investment Fees Realized Gain (Loss) Unrealized Gain (Loss) Total Investment Income, Net NOTE 4 FAIR VALUE MEASUREMENT 2023 2022 $ 2,085 $ 1,012 (942) (402) (3,335) 17,689 15,227 7 006) $ 13.035 $ 4293 Accounting principles generally accepted in the United States of America establishes a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and market -corroborated inputs. Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs to minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. Mutual Funds: Securities listed on a national market or exchange and valued at the last sales price or if there is no sale and the market is still considered active, at the last transaction price before year-end. (14) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 4 FAIR VALUE MEASUREMENT (CONTINUED) The following table presents assets measured at fair value by classification within the fair value hierarchy as of June 30, 2023, Level Level Level Total Mutual Funds: Fixed Income $ 25,617 $ - $ - $ 25,617 Equities 67,413 67,413 Total Investments $ 93.030 $ $ $ 93.030 The following table presents assets measured at fair value by classification within the fair value hierarchy as of June 30, 2022, Level Level Level Total Mutual Funds Fixed Income $ 16,647 $ - $ - 16,647 Equities 42,375 42,375 Total Investments $ 59,022 $ $ $ 59,022 NOTES NET ASSETS WITH DONOR RESTRICTIONS Net assets with donor restrictions are restricted for the following purposes as of June 30: 2023 2022 Future Operations (United Way) $ 75,200 $ 76,500 Coopers House 16,018 65,886 Capital Campaign 1.487.342 631.258 Total $ 1.678.560 $ 773.644 NOTE 6 SIGNIFICANT FUNDING SOURCES During the years ended June 30, the Agency received revenue and support from the following major sources, defined as greater than 10% of total revenue and support. 2023 2022 Crime Victim Assistance Division of Iowa Department of Justice $ 937,189 $ 807,502 Percent of Revenue and Support 30% 26% Grants Receivable at Year -End $ 179,273 $ 117,475 Iowa Finance Authority - Emergency Solutions Grant Program Percent of Revenue and Support Grants Receivable at Year -End $ 242,272 $ 432,035 8% 14% $ 24,385 $ 39,485 (15) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 7 EMPLOYEE BENEFIT PLAN The Agency offers a SIMPLE IRA plan for employees who earn at least $5,000 in compensation during any two preceding years. The employer matches contributions up to 3% of salary. Employees are able to participate with increasing vesting percentages over the first five years. Retirement plan expense was $24,820 and $27,645 for the years ended June 30, 2023 and 2022, respectively. NOTE 8 OPERATING LEASE AND RENTAL EXPENSE The Agency leases office space and vehicles under cancellable and noncancellable agreements that require minimum annual rentals. Future minimum lease payments as of June 30, 2023, consist of the following: Year Ending June 30. Amount 2024 $ 22,876 2025 4.488 Total $ 27.364 Total rent expense for the years ended June 30, 2023 and 2022, was $44,603 and $93,491, respectively. NOTE 9 CONTINGENCY In consideration of Community Development Block Grant (CDBG) funds received from the City of Iowa City (the City), liens totaling $695.361 and $454,238 as of June 30, 2023 and 2022, respectively, have been established in favor of the City as lien holder upon land, buildings, personal property, and if applicable, revenues and income from this property. Repayment of grant funds received will not be required and the liens will be released if the Agency continues to comply with the terms of the grant agreements, which include continuing to own the existing property and continuing to operate as a domestic violence shaker. The liens are scheduled to expire at various times through June 2043. The Agency plans to utilize the properties for their intended purpose through the expiration date of the liens, therefore, no liability has been recorded by the Agency. NOTE 10 CDBG LOANS During the year ended June 30, 2020, the Agency entered into a CDBG conditional occupancy loan. Proceeds from this loan were to be used to install fencing, make interior alterations, and improve parking areas at the shelter. These funds were to be used by June30, 2020, and were administered on a cost reimbursement basis in the amount of $113,895. If the Agency doesn't sell, assign, transfer any interest in the property, or rent the property prior to June 30, 2032, no payments will be required on the principal amount. If the terms are not met the principal is due immediately in full. (16) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 10 CDBG LOANS (CONTINUED) During the year ended June 30, 2023, the Agency entered into a CDBG conditional occupancy loan. Proceeds from this loan were to be used for the construction of a new shelter for victims of domestic violence for an amount not to exceed $545,000. All funds for the project must be disbursed by June 15, 2024. Funds are administered on a cost reimbursement basis and the Agency received funds totaling $241,123 for the year ended June 30, 2023. If the Agency doesn't sell, assign, transfer any interest in the property, or rent the property prior to June 30, 2043, no payments will be required on the principal amount. If the terms are not met the principal is due immediately in full. NOTE 11 LINE OF CREDIT The Agency has a $300,000 revolving line of credit which expires May 2024. Monthly interest only payments are due bearing a variable rate of prime plus 1.0% (9.50% as of June 30, 2023). Any outstanding principal plus all accrued unpaid interest at May 26, 2024 is due in one final payment. This line of credit is collateralized by substantially all of the Agency's assets. As of June 30, 2023, there was no outstanding principal or interest accrued. NOTE 12 NOTE PAYABLE The Agency has a note payable due September 25, 2025, requiring monthly payments of $1,044, including interest at a rate of 3.25% per annum, and a final balloon payment at maturity for the outstanding balance. The note is secured by real property located at The outstanding balance of the note payable at June 30, 2023 is $164,620. Future maturities of the note payable as of June 30, 2023 are as follows: Year End irl June 30. Amount 204 $ 7,195 2025 7,450 2026 149,975 Total $ 164.620 This agreement contains various restrictive covenants, including a minimum net worth. Management believes they are in compliance with all covenants as of June 30, 2023. (17) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 13 CAPITAL CAMPAIGN In Fall 2021, the Agency began a capital campaign to raise $6 million over six years to undergo a building expansion project. Construction of the project commenced in June 2023. Capital campaign pledges receivable activity is as follows as of June 30: 2023 2022 Pledges $ 1,466,387 $ 600,504 Payments Received (868,400) (285,340) Discount to Present Value (103,775) (40,056) Total Pledges Receivable - Capital Campaign, Net $ 494.212 $ 275.108 Capital campaign pledges receivable as of June 30, 2023, will be paid in the following fiscal years: Year Endina June 30. Amount 2024 $ 213,255 2025 161,263 2026 144,127 2027 79,342 Total Pledges Receivable - Capital Campaign, Gross 597,987 Discount to Present Value (103,775) Total Pledges Receivable - Capital Campaign, Net $ 494.212 Capital campaign contributions activity is as follows for the years ended June 30: 2023 2022 Pledges $ 929,601 $ 600,504 Discount to Present Value f63,719) 140,056) Total Capital Campaign Contributions $ 65.882 $ 560.448 Capital campaign contributions and related pledges receivable were discounted at a rate of 9.5% and 6.5% for the years ended June 30, 2023 and 2022, respectively. The allowance for doubtful accounts is based on management's assessment of the collectability of specific pledges and the aging of pledges receivable. No allowance for doubtful accounts was recorded for the years ended June 30, 2023 and 2022, as all outstanding pledges are expected to be received. As of June 30, 2023, $800,246 was included in construction in progress on the statement of financial position related to the construction of the new shelter. As of June 30, 2023, the Agency entered into several contracts with various architectural, engineering, and construction companies for services related to the building expansion project. As of June 30, 2023, a total of $6,611,282 was yet to be paid on these contracts. (18) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 AND 2022 NOTE 14 IN -KIND CONTRIBUTIONS The Agency received $42,028 and $75,906 of donated property and equipment for the years ended June 30, 2023 and 2022, respectively. These items are recorded at the value determined by the donor which is the value the Agency would otherwise have to pay if the items were not donated. Depreciation expense related to the donated property and equipment is allocated among program and supporting services based on estimated time and effort. The Agency receives various services/supplies for general operations and programming. These items are recorded at the value determined by the donor which is the value the Agency would otherwise have to pay if the services or supplies were not donated. There were no donor -imposed restrictions related to these in -kind contributions for the years ended June 30, 2023 and 2022. The Agency received the following in -kind contributions for the year ended June 30, 2023: Program Management Services and General Fundraising Total Gift Cards $ 4,840 $ - $ - $ 4,840 Professional Fees - - 1,005 1,005 Travel 607 607 Total $ 5,447 $ $ 1,005 $ 6,452 The Agency received the following in -kind contributions for the year ended June 30, 2022: Program Management Services and General Fundraising Total Gift Cards $ 8,075 $ - $ - $ 8,075 Office Supplies - - 3,716 3,716 Professional Services 673 673 Total $ 8.075 $ $ 4.389 $ 12,464 NOTE 15 SUBSEQUENT EVENTS In October 2023, the Agency entered into an agreement with the Housing Trust Fund of Johnson County in which the Agency was granted a $250,000 forgivable loan and a $250,000 repayable 40-year interest -free loan for the construction of the new shelter facility. These funds are to be administered on a cost reimbursement basis. Management evaluated subsequent events through March 14, 2024, the date the financial statements were available to be issued. Events or transactions occurring after June 30, 2023, but prior to March 14, 2024, that provided additional evidence about conditions that existed at June 30, 2023, have been recognized in the financial statements for the year ended June 30, 2023. Events or transactions that provided evidence about conditions that did not exist at June 30, 2023, but arose before the financial statements were available to be issued, have not been recognized in the financial statements for the year ended June 30, 2023. (19) SUPPLEMENTARY INFORMATION CliRonL rsonAllen LLP CLAconnec[.wm 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 Board of Directors Domestic Violence Intervention Program, Inc. Iowa City, Iowa We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Domestic Violence Intervention Program, Inc. (the Agency) which comprise the statement of financial position as of June 30, 2023, and the related statements of activities, functional expenses, and cash Flows for the year then ended, and the related notes to the financial statements, and have Issued our report thereon dated March 14, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Agency's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as item 2023-001 that we consider to be a material weakness. CLA(alkonlnrzorAller uF)is ar rdependen[ r e.wor< Temper of CLA Global See nAdnhel am/d, aimer. (20) Board of Directors Domestic Violence Intervention Program, Inc. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Agency's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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. Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Agency's response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The Agency's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 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 entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Clifton LarsonAllen LLP Cedar Rapids, Iowa March 14, 2024 (21) CliRonL rsonAiien LLP CLAconnec[.wm INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Board of Directors Domestic Violence Intervention Program, Inc. Iowa City, Iowa Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited Domestic Violence Intervention Program, Inc. (the Agency)'s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the Agency's major federal program for the year ended June 30, 2023. The Agency's major federal program is identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. In our opinion, the Agency complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GARS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the Agency's compliance with the compliance requirements referred to above. uA(if if e rso.Auer w) erCJ�L CLYIV rorcv, aIone I see n Amehaira„dm.,aarmer. (22) Board of Directors Domestic Violence Intervention Program, Inc. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Agency's federal programs. Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Agency's compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Agency's compliance with the requirements of its major federal program as a whole. In performing an audit in accordance with GARS, Govemment Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, 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 Agency's compliance with the compliance requirements referred to above and performing other procedures as we considered necessary in the circumstances. • Obtain an understanding of internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. (23) Board of Directors Domestic Violence Intervention Program, Inc. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or 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 will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. (24) Board of Directors Domestic Violence Intervention Program, Inc. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the Agency as of and for the year ended June 30, 2023, and have issued our report thereon dated March 14, 2024, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. Clifton LarsonAllen LLP Cedar Rapids, Iowa March 14, 2024 (25) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2023 Federal Assistance Pass -Through Federal Grantor/Pass-Through Grantor/ Listing Entity Identifying Program or Cluster Title Number Number U.S. Department of Housing and Urban Development Passed through Iowa Finance Authority: Emergency Solutions Grant Program 14.231 52001-22 COVID-19 - Emergency Solutions Grant Program 14.231 CV2-52001-20 Total Federal Assistance Listing Number 14.231 Passed through City of Iowa City, Iowa: Community Development Block Grants —Entitlement Grants Loan 14.218 N/A Total U.S. Department of Housing and Urban Development U.S. Department of Justice Passed through The University of Iowa: Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus 16.525 2020-WA-AX-0013 Passed through Iowa Department of Justice: Crime Victim Assistance 16.575 DAC-2022 S H-2022 DAC-2023 SH-2023 Total U.S. Department of Justice See accompanying Notes to Schedule of Expenditures of Federal Awards. (26) Total Federal Expenditures $ 84,706 157,566 242,272 728,551 970,823 23,160 389,572 412,732 DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) YEAR ENDED JUNE 309 2023 Federal Grantor/Pass-Through Grantor/ Program or Cluster Title D.S. Department of Health & Human Services Passed through Cedar County, Iowa: American Rescue Plan Rural Distribution Passed through City of CoraNille, Iowa: American Rescue Plan Rural Distribution Passed through City of Iowa City, Iowa. American Rescue Plan Rural Distribution Total Federal Assistance Listing Number 93.498 Passed through Iowa Department of Justice: FVPSA Total U.S. Department of Health & Human Services Department of Homeland Security Federal Emergency Management Agency Total Expenditures of Federal Awards See accompanying Notes to Schedule of Expenditures of Federal Awards. (27) Federal Assistance Pass -Through Total Listing Entity Identifying Federal Number Number Expenditures 93.498 N/A $ 10,000 93.498 N/A 25,000 93.498 N/A 29.461 64,461 93.671 SH-2022 SH-2023 ARP-TVMH-2022 VS-21-73-ARP 249,335 313,796 97.024 N/A 19,000 DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS JUNE 30, 2023 NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal award activity of Domestic Violence Intervention Program, Inc. (the Agency), under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 3 SUBRECIPIENT PAYMENTS, NONCASH ASSISTANCE, INSURANCE, AND LOANS OR LOAN GUARANTEES The purpose of the schedule of expenditures of federal awards is to present a summary of the Agency's federal grant activity. The Agency did not provide any federal awards to subrecipients for the year ended June 30, 2023. NOTE 4 GRANTS WITH CONTINUING COMPLIANCE REQUIREMENTS The Agency has $454,238 of forgivable grants with continuing federal compliance requirements included in the schedule of expenditures of federal awards under federal assistance listing number 14.218 that were expended in previous fiscal years. (28) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2023 Section l— Summary of Auditors' Results Financial Statements 1. Type of auditors' report issued: 2. Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified? 3. Noncompliance material to financial statements noted? 11T•S OTO x yes no yes x none reported Federal Awards 1. Internal control over major federal programs: • Material weakness(es) identified? • Significant deficiency(ies) identified? 2. Type of auditors' report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of Major Federal Programs Assistance Listing Numbers 14.218 Dollar threshold used to distinguish between Type A and Type B programs. Auditee qualified as low -risk auditee? yes x no yes x no yes x none reported yes x no Name of Federal Program or Cluster Community Development Block Grants $ 750,000 yes x no (29) DOMESTIC VIOLENCE INTERVENTION PROGRAM, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2023 Section 11— Financial Statement Findings 2023-001: Financial statement omoaration and vear-end adiustments Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: The Agency relies on the external auditor to prepare the financial statements and make year-end adjustments. The board of directors, finance committee, and management share the ultimate responsibility of the Agency's internal control system. While it is acceptable to outsource various accounting functions, the responsibility of internal control cannot be outsourced. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: While performing audit procedures the external auditor proposed audit adjustments material to the financial statements. The effect of this condition increases the possibility that the financial statements may be misstated and not property disclosed. Cause: The Agency engages their external auditor to assist in preparing its financial statements and accompanying disclosures. However external auditors cannot be considered part of the Agency's internal control system. During the audit material journal entries were made in order to prepare the financial statements. Management has reviewed and approved the annual financial statements and related notes, as prepared by their external auditor, and has accepted responsibility for those financial statements. Repeat Finding: Yes, see 2022-001. Recommendation: The Agency should evaluate their financial reporting processes and controls to determine whether additional controls over the preparation of financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of Responsible Officials: There is no disagreement with the audit finding Section 111 — Findings and Questioned Costs— Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). (30) Global INDEPENOENT NETWORK MEMBER CLA (CliftonLarsonAllen LLP) is a network member of CLA Global. See CLAglobal.com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor.