Title

Subtitle

NOTES TO FINANCIAL STATEMENTS
JUNE 30. 2013

1.        Summary of Significant Accounting Policies

The accounting policies of the Organization conform to generally accepted accounting principles as applicable to governmental units. The following is a summary of the more significant policies:

  1. Basis of Accounting

The financial statements arc prepared on an accrual basis of accounting, as interpreted for nonprofit organizations,

  1. Capital Expenditures

Under the terms of the grant agreement and in accordance with Non-profit Generally Accepted Accounting Principles, purchases of equipment, furniture, leasehold improvements and other capital items are charged as expenditures as incurred and not capitalized and depreciated over the useful life of the asset.

  1. Income Taxes:

The Organization is exempt from Federal income taxes under Section 501 (c) (3) of the Internal Revenue Code. In addition, the Organization has been determined by the Internal Revenue Service not to be "a private foundation" within the meaning of Section 509 (a) of the code.

  1. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Accordingly, actual results could differ from those estimates.

  1. Vacation and Sick Leave

Employees are granted vacation leave at the rate of one and two-third days each month and sick pay at the rate of one day each month and/or as designated by collective bargaining. The employees arc paid at their salary rate at the time taken. Accrued Vacation amount must be included in the financial statements as of the year end date .Funds must exist to support accrued vacation liabilities. If the funds do not exist, it is the responsibility of the Board of Directors to assume the liability.

At June 30, 2013, there were no unrecorded and unfunded liability for vacation and sick leave.


COMMUNITY LIFE CENTER, INC.

NOTES TO FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2013

  1. Cash

At June 30, 2013, cash consisted of:

Cash in Bank

J. P. Morgan Chase                              A/C #0130670210                                                         $ 2,005

55 West 125 Street                               A/C #914038336                                                            12,265

New York, NY 10027                                                                                                                   14,270

A/C#059-0736442-65 CACFP                                        3,651

Day Care CACFP                                                           121,421

Total                                                           $.139,342

The bank accounts are not interest bearing, there were no outstanding checks over six months. There were no bank charges..

  1. Receivable

At June 30, 2013, the amounts consisted of:

[[PASTING TABLES IS NOT SUPPORTED]]

 

Less: Total Expenditures                                                                2,585,994

Ending Balance                                                                                                               $(41,571)

Prior years:

Beginning Balance                                                                              105,825

Cash received from ACS                                                                     (99,030)

Adjustment

6,795

Ending Balance                                                                                                              $134,776)

[[PASTING TABLES IS NOT SUPPORTED]]

COMMUNITY LIFE CENTER, INC.

NOTES TO FINANCIAL STATEMENTS
NINE MONTHS ENDED JUNE 30, 2013

[[PASTING TABLES IS NOT SUPPORTED]]

 

  1. Security Deposit:

At June 30, 2013 the amount consists of Deposit for telephone                                                                             $1,224


COMMUNITY LIFE CENTER, INC.

NOTES TO FINANCIAL STATEMENTS
NINE MONTHS ENDED JUNE 30, 2013

6. Government Grants

[[PASTING TABLES IS NOT SUPPORTED]]

 


[[PASTING TABLES IS NOT SUPPORTED]]

 

  1. Lease Commitments

The Agrncy rents premises at two locations:

Site 1: 15 Mt. Mon-is Park West, New York, rented from Mt. Morris Ascension Presbyterian Church at an annual rent of $189,750, payable equal monthly installments of $15,812, for 18,750 Sq. ft. of space or $10.12 per sq. ft. The lease will expire on August 30, 2038. However, lease terms allows the organization to terminate the lease by assigning the remaining term of the lease to other Sponsors of similar programs, in the vent the Organization loses contracts with funding sources, or otherwise decides to cease.

Site 2: 221 East 122 Street, New York, rented from East Harlem Pilot Block H.D.F.C. Inc at a monthly rent of $13,500 for 10,000 Sq. ft. of space or $16.20 per Sq. ft. The lease expired on July 31, 2012, currently on month-month basis and negations are going on for a new lease.

The total rent expense, for the nine months ended 06/30/13 amounted to $311,062.

  1. Centrally Paid Costs

The NYC/ACS pays insurance costs towards the Organization's insurance requirements through its Central Insurance Program. ACS currently pays $3,400 per classroom for the following coverage: Workers' Compensation, Disability, Commercial General Liability and Fidelity/Crime Insurance. Details of breakdown of costs are not available.

  1. Cost Allocation:

The Agency has adopted a Cost Allocation Plan to allocate joint costs among all programs,

which is reasonable. Costs were also allocated between Administrative and Programmatic expenses on the basis of the allocation plan. During the period, no costs were allocated to programs by the Sponsors.


COMMUNITY LIFE CENTER, INC.

NOTES TO FINANCIAL STATEMENTS
NINE MONTHS ENDED JUNE 30, 2013

  1. Related Parties:

There were no related parties.

  1. Non-Federal Match

The Agency's matching in-kind contribution of $1,327,060, including UPK, met the required 25% of Head Start expenditure, including centrally paid insurance cost.


COMMUNITY LIFE CENTER INC                                                                                                                                                                Schedule I

STATEMENT OF REVENUES AND EXPENDITURES BUDGETED AND ACTUAL
CONSOLIDATED

FOR NINE moNtriis ENDED II      70_ 2013

[[PASTING TABLES IS NOT SUPPORTED]]

. COMMUNITY LIFE CENTER INC                                                                                                               Schedule 2

STATEMENT OF REVENUES AND EXPENDITURES - BUDGETED AND AC JAL
SITE SPECIFIC - SITE 1

FOR NINE MONTHS ENDED JUNE 39, 2913

[[PASTING TABLES IS NOT SUPPORTED]]

CommuNrrY LIFE UN. MR INC                                                                                                                 Schedule 2

STATEMENT OF REVENUES AN]) EXPENDTruREs - BUDGETED AND ACTUAL
SITE SPECIFIC - SITE 2

MK NINE MONTHS ENDED IC,5193 50, 2013

[[PASTING TABLES IS NOT SUPPORTED]]

 

[[PASTING TABLES IS NOT SUPPORTED]]

commuNrry LIFE (TINTER INC                                                                                                                                                                        SCHEDULE 3

STATEMENT OF HEM) START REVENUES AND F.XPENDITURES - BUDGETED AND ACTUAL

HEAD START PROGRAMS - CONSOLIDATED FOR NINE MONTHS ENDED 31574F 10, 2013

[[PASTING TABLES IS NOT SUPPORTED]]

 

[[PASTING TABLES IS NOT SUPPORTED]]

Excess (deficiency) or Kt....a, aver (0111100

Expertaiturc                                                                                                                                                                                                                                                                      8.952


COMMU !4WD' 1.11E CON rut iNI:                                                           Schedule 4

STATEH EVE OF FIEAO START REVENUES AND EX 9E26 2111.19E9 -134.11601,71E3 AND ACEUAL

SPOCIFEC . SITE 1

1q2R NINE 5313621115 ENDED 1116114 30, 2613

[[PASTING TABLES IS NOT SUPPORTED]]

COSISIGN11 LIPS: CENTER INC                                                                                                       Schedule 4

S (ALIMENT OF 1121ALI START REVE6,1111S AND EXPENDITURES • 01.11.R1ETED AND ACTUAL
SUL SPECIFIC •- SITE. 2

FOR SINE. MONTFIS ENDED UNE 30. 2011

[[PASTING TABLES IS NOT SUPPORTED]]

Schedule 5

COMMUNITY LIFE CENTER INC

SCHEDULE OF CONSULTANTS
FOR NINE MONTHS ENDED 6-30-13

[[PASTING TABLES IS NOT SUPPORTED]]

SCHEDULE 6

COMMUNITY LIFE CENTER INC

BUDGET I.D.NO. 1579401

SCHEDULE OF FIXED ASSETS INVENTORY
JUNE 30, 2013

Date                                                                                           Date

Unit                      Description                  Acquired         Cost              Unit            Description              Acquired         Cost

Current Year:                                                                                              Prior Years :

I         Desk/Credenza with drawers 06/15/13 $         1,614                          None

4 Rooms Lakeshore Furniture                     06/15/13     38,707

$ 40.321


SCHEDULE 7

COMMUNITY LIFE CENTER INC

BUDGET ID NO. 1579401

SCHEDULE OF QUANTITATIVE PROGRAM RESULT

NINE MONTHS ENDED JUNE 30, 2013

ENROLLMENT

1 Contracted Slots per site.

  1. Community Life Center 1                                                           160
  2. Community Life Center 2                                                           119

Total                                                                                        279

2 Number of Classrooms per site.

  1. Community Life Center 1                                                               8
  2. Community Life Center 2                                                               7

Total                                                                                          15

3 Number of Children enrolled by site.

  1. Community Life Center 1                                                           153
  2. Community Life Center 2                                                           119

Total                                                                                        272

4 Number of children who actually attend by site,

  1. Community Life Center 1                                                           150
  2. Community Life Center 2                                                           120

Total                                                                                        270

5 The average attendance by site. (no.4/no.3)

  1. Community Life Center 1                                                          98%
  2. Community Life Center 2                                                        100%

Total                                                                                       99%

COST

1      Total Expense for the contract.                                                     $ 2.585,994

2      Total Expense site 1                                                        $ 1,359,468

3      Total Expense site 2                                                        $ 1,226,524

4      Average cost per slots (Total Exp/Ave Attendance).            $     9,578

5      Average cost site 1                                                            $     9,063

6      Average cost site 2                                                            $   10,296


Schedule 8

COMMUNITY LIFE CENTER INC

BUDGET I.D. NO 1579401

SHEDULE OF OTHER COSTS

FOR NINE MONTHS ENDED JUNE 30, 2013

[[PASTING TABLES IS NOT SUPPORTED]]

SCHEDULE 9


COMMUNITY LIFE CENTER, INC
BUDGET I.D. NO. 1597401

DETAILED EXPLANATION OF QUESTIONED COSTS NINE MONTHS ENDED JUNE 30, 2013

None


SCHEDULE

COMMUNITY LIFE CENTER INC

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR NINE MONTHS ENDED JUNE 30, 2013

[[PASTING TABLES IS NOT SUPPORTED]]

 

Major Programs:

[[PASTING TABLES IS NOT SUPPORTED]]

COMMUNITY LIFE CENTER, INC. BUDGET I.D. #1579401 JUNE 30, 2013

INTRODUCTION

Community Life Center, Inc contracted by the City of New York, Administration for Children's Services (ACS) agreed to provide the following services under the contract:

To conduct EarlyLearn and UPK Programs in New York City for preschool Community children. The Eligibility of the persons for the Program is determined by the ACS.

The grant was received for the nine months ended June 30, 2013, and totals $2,875,848 for the period. This grant is being matched by in-kind contributions olvolunteer services, contributed space etc. which amounted to $886,838 for the period.

EXIT CONFERENCE

An exit conference was held on May 13, 2014 in Agency's office at 15 Mt. Morris Park West, New York, NY. In attendance were:

For the Delegate Agency:                   Leslie H. Hanson, Board Chairman

Don Williams, Deputy Director

Gwendolyn Peterson, Chief Fiscal Officer

For the Audit firm:                             Arun C. Sarkar, CPA - Principal


9 Rebecca Court, Dayton, NJ 08810

Tel: (732) 329-6740; Fax: (732) 274-2067

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Board of Directors Community Life Center Inc 15 Mt. Morris Park West New York, New York 10027

We have audited the financial statements of Community Life Center Inc (the Organization) as of June 30, 2013, and have issued our report thereon dated April 27, 2014. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control over Financial Reporting

In planning and performing our audit, we considered the Organization's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting.

A contra/ deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weakness, as defined above.


Compliance and other Matters:

As part of obtaining reasonable assurance about whether the Organization's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

This report is intended solely for the information and use of the Board of Directors and management of the Organization, NYC Comptroller's Office, and pass-through entities. However, this report is a matter of public record and its distribution is not limited.

Cja/(4

April 27, 2014                                                                                            CERTIFIED PUBLIC ACCOUNTANT


9 Rebecca Court, Dayton, NJ 08810

Tel: (732) 329-6740; Fax: (732) 274-2067

INDEPENDENT AUDITIO'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

The Board of Directors Community Life Center Inc 15 Mt. Morris Park West New York, New York 10027

Compliance

We have audited the compliance of Community Life Center Inc (the Organization) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the nine months ended June 30, 2013. The Organization's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the Organization's management. Our responsibility is to express an opinion on the Organization's compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Agency's compliance with those requirements and performing other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Organization's compliance with those requirements.

In our opinion, the Organization complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the nine months ended June 30, 2013. However, the results of our auditing procedures disclosed no instances of noncompliance with those requirements that are required to be reported in accordance with 0M13 Circular A-133.

Internal Control over Compliance

The management of the Agency is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the Organization's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.


Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.

This report is intended for the information of the audit committee, management, and federal awarding agencies and pass-through entities. However, this report is a matter of public record and its distribution is not limited.

April 27, 27, 2014                                                                                      CERTIFIED PUBLIC ACCOUNTANT


CUMMUNITY LIFE CENTER INC

[[PASTING TABLES IS NOT SUPPORTED]]

 

[[PASTING TABLES IS NOT SUPPORTED]]

 

Dollar threshold used to distinguish between

Type A and Type B programs:                                                                              $300,000

Auditee qualified as low-risk auditee?                                                                       Yes


CUMMUNITY LIFE CENTER INC

SCHEDULE OF FINDINGS AND QUESTIONED COSTS NINE MONTHS ENDED JUNE 30, 2013 (CONTINUED)

Section II — Financial Statement Findings

Current Period:

Finding None

Prior Period Follow-up:

None

Section III — Federal Award Findings and Questioned Costs

Current Period:

Finding: None

Prior Period Follow-up:

Finding: None