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Backup Documents 05/23/2017 Item #16I1B1 'tao. 'kkee 14NP ttmo Nws' *400. 'two ***, Legal Aid Service of Broward County, Inc. Financial Statements and Additional Information For the Year Ended December 31,2016 ‘0, kwe taw 'hof tfte *.ite %.0 %we %we 04400 'tto, k4.0 v*,0 4Noe Ihro ittur '+loof Vr.W 4,4* t%.0 Legal Aid Service of Broward County,Inc Table of Contents %.0 Independent Auditor's Report 1-2 Financial Statements Statement of Financial Position 3 44. Statement of Activities 4 Statement of Functional Expenses 5 Statement of Cash Flows 6 Notes to Financial Statements 7-20 * Supplemental Information Schedule of Expenditures of Federal Awards 21-22 Notes to the Schedule of Expenditures of Federal Awards 23 .410 Schedule of Support, Revenues and Expenses by Fund 24-25 Internal Controls and Compliance Independent Auditor's Report on Internal Control Over Financial Rert| and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 26-27 Independent Auditor's Report on Compliance for Each Major Program and on Nue Internal Control Over Compliance Required by the Uniform Guidance 28-29 i*.ge Schedule of Findings and Questioned Costs 30 Independent Auditor's Report on Compliance with Reqirements Ap |icabke *os to the Broward County Filing Fees Contract Under Article V. Paragraph Si. 31 **, ‘00 *=, �# '%We **SW ' FO` 1‘0 kltro Noe *w, 4„,0 Keefe ��~~�� U �� U'�� '� N0�� ~~~°=� tow CPA's+Trusted Advlsors N.0 ‘,40, INDEPENDENT AVUIT � AUDITOR'S REPORT To the Board of Directors Legal Aid Service of Broward County, Inc. wee Plantation, Florida Report on the Financial Statements We have audited the accomyin#0nanmia]statemnentsofLegdAid5erviceof8poowardCqunty, |nc' (a nonpmo0torganization) (the "8 iation") wvhichmornpriseteataternentmfGnancialpmsitionasf December 31, 2016, and the related statements of activities, functional expenses and cash flows for theyearthenand ended, statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial s1atemnentsthat are free from material misstatement,misstatement, whether due to fraud or error . Auditor's Responsibility Our resibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. � An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The proceduresse|ecteddeoendontheauditm�sjud@rnen� inc|udingthe assessment of the risks of material misstatement u[the '| nancia| statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the fii | statements in rde to design wdit procedures that m�r effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. %so, Opinion In our opinion, the financial statements referredt bu t fai | in U material respects, the financial position of the Organization as of December 31,2016and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. KMCcpa.com I 6550 N Federal Hwy,4th Floor Fort Lauderdale, FL 33308 Phone. 9o4zr108e6 Fax.954 938 9353 1 �ok0 Now Legal Aid SeMce of Broward County, Inc. �� AdjustmentsWmPr�mPer� Financial Statements TheO ndal statements of the Organization as of December 31, 2015,were audited by other auditors whose report, dated Aril 19, 2016, expresses an unmodified opinion on those financial As discussed in Note 14,the Organization has restated its 2015 financial statements during the current other auditors reported on the 2015 financial statements before the restatement. As rt of our auditf th2016 fii | statements, we alsoaudited 14 that were applied to restate the 2015 financial statements. In our opinio ' are h appnm ateand have been properly applied. We were not engagedhw audiaudit, review, wrapply any procedures to the 2015 financial statements of the Organization other than with respect to the ‘0' adjustments and, accordingly, we do not express an opinion or any other formof assurance on the 2015 financial statements as a whole. Report on Summarized Comparative Information '1/44.v The summarized comparative information presented herein as of and for the year ended December 31, 2015, is consistent, except for the matter described above, with the audited financial statements from which it has been derived. Other Matters Other Information Our audit was conducted for the purpose of foi i | the financial statets as a whole. The accompanying Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of %ow Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of FederalAwards, is presented for purposes of additional analysis and is not a required part of the financial statements. Further, the accompanying Schedule of Support, Revenues and Expenses by Fund is also presentedfmrpurposesmfadditiuna| anakmisand |snotenequinedpavtofthe financialstatemnents Suchn6orrnat�onistheresponsibUb�ofmanagementandyxasdehvedfnomnand . responsibility ne|ates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing proceduresapp|iedintheauditofthe 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 ‘0, information is fairly stated, in all material respects, in relation to the financial statements taken as a whole. . *440, Other Reporting Required by Government Auditing Standards In cc da with Government Auditing Standards, we have also issued p rt dated April 18, 2017, on our consideration of the Organization's internal control over financial reporting and on our tests ofit U with certain provisionsf laws, regulations, and grant agreements and -- other matters. The purpose othat report is to describe the scope of our testing of internal control over financial reporting and compliance and the resultsof that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's vis ,_nal control over financial repo "~ and comp KEEFE McCULLOUGH Fort Lauderdale, Florida April 18,2017 2 14W 44.# ikwo Noe N40, %we FINANCIAL STATEMENTS *44o, **/*/ 4*, 440, 44,0,0 two *ipwe %.• Legal Aid Service of Broward County,Inc. Statement of Financial Position December 31,2016 (with comparative totals for December 31,2015) 2016 2015 *0` Assets: Cash and cash equivalents $ 1,606,623 $ 2,235,098 ~- Investments 46025 29,219 4.0 Contract and grant receivables 746,412 498,996 Promises to8ive 633,995 675,041 Prepaid expenses 47,500 56,141 Property and equipment, net 3,675,514 3,784'011 Client escrow funds I5'329 18,938 Deposits and other assets 1,436 5,500 m�' Loan costsnet of accumulated amortization 440,0 of$40,101 and $ 37,119 at December 31, 2016 andrespectively 22,366 25,348 2015, wo,' Total assets $ 6,795'200 $ 7,328,292 *�� Liabilities: Accounts payable 114,934 90,841 fte Accrued expenses 431,690 346810 Deferred revenue 357,473 838,843 Client trust deposits 15'329 18,938 Debt 2,530,389 I'593,845 Total liabilities 3,449,815 3'839,277 Net Assets: Unrestricted 25�S �S7 2619434' ' ' ' Temporarily restricted 809,828 819,581 $� Total net assets 3,345,385 �4�9O15 *we ' ' Total liabilities and net assets $ 6,795,200 $ 7,328,292 1.4.0 4410, ‘40, *0,0 �., The accompanying notes to financial statements are an integral part of these statements. 3 . ~�" Naso Legal Aid Service of Broward County, Inc. ...,,, Statement of Activities For the Year Ended December 31,2016 ,,,..., (with comparative totals for December 31,2015) %so Temporarily Total Total Unrestricted Restricted 2016 2015 ,...., Change in Net Assets: ,,,...., Revenues and public support: ..., Contracts and grants $ 4,718,038 $ 910,482 $ 5,628,520 $ 5,127,897 Donated services 1,198,000 - 1,198,000 884,000 -,,...0 Contributions 326,030 - 326,030 175,923 ,....., Investment income (loss) 16,693 - 16,693 (152) ==...., Special event revenue 158,498 - 158,498 296,557 Expense recovery from CCLA 392,615 - 392,615 394,485 Other income 206,813 - 206,813 184,630 .., Net assets released from restrictions 920,235 (920,235) - ,..0, .40 Total revenues and public support 7,936,922 (9,753) 7,927,169 7,063,340 %..- k6.0, Expenses: Program services 7,288,265 - 7,288,265 6,259,149 Supporting services: .... Management and general 669,044669,044 567,581 - Fundraising 63,490 - 63,490 105,907 Total expenses 8,020,799 - 8,020,799 6,932,637 Change in net assets (83,877) (9,753) (93,630) 130,703 ,..,, Net Assets,January 1, ,...0 as restated(Note 14) 2,619,434 819,581 3,439,015 3,308,312 .00 Net Assets,December 31 $ 2,535,557 $ 809,828 $ 3,345,385 $ 3,439,015 .6., ,...., 1,...,, ,..... -*WO %4A§0 44IP0 Nkite %We The accompanying notes to financial statements are an integral part of these statements. %..., ,,,....0 ,....., ...., Legal Aid Service of Broward County,Inc. %we Statement of Functional Expenses For the Year Ended December 31,2016 -..... (with comparative totals for December 31,2015) NNW *10 Supporting Services Program Management Total Total A., Services and General Fundraising 2016 2015 Nee Personnel Costs: Salaries and wages: Lawyers $ 2,314,592 $ 216,804 $ - $ 2,531,396 $ 2,272,365 I Nu. Paralegals 938,838 87,939 - 1,026,777 727,361 N., Other staff 871,550 81,637 - 953,187 1,052,425 N., Employee benefits and payroll taxes 969,128 87,044 - 1,056,172 909,340 N., N., Total personnel costs 5,094,108 473,424 - 5,567,532 4,961,491 Nu. Other Expenses: N.. Donated services 1,198,000 - 1,198,000 884,000 - N.. Space and occupancy 163,708 15,334 - 179,042 220,858 Interest expense 108,263 10,125 - 118,388 63,008 N..' Equipment rental and *A. maintenance 81,766 35,043 - 116,809 68,399 Library and subscriptions 98,512 - - 98,512 58,417 N., Grant to subrecipient 86,069 - - 86,069 41,849 N., Insurance 73,724 4,100 - 77,824 80,833 NN. Travel 27,475 6,307 - 33,782 28,159 Supplies 50,669 21,715 - 72,384 75,550 lilue Telephone 47,327 20,283 - 67,610 46,006 %we Special events - 63,490 63,490 105,907 Contract services - 55,000 - 55,000 47,899 N.., Client litigation costs 49,045 - - 49,045 38,229 N., Other operating expenses 30,792 - - 30,792 31,142 Postage 19,881 8,521 - 28,402 31,224 N.. Training and recruitment 26,827 - - 26,827 32,275 Nu. Advertising - 6,751 6,751 3,368 N.0 Total expenses before No.0 provision for depreciation 1%,ge and amortization 7,156,166 656,603 63,490 7,876,259 6,818,614 Provision for depreciation and amortization 132,099 12,441 144,540 114,023 N.. Total expenses $ 7,288,265 $ 669,044 $ 63,490 $ 8,020,799 $ 6,932,637 NN. N., ,,,... N.. The accompanying notes to financial statements are an integral part of these statements. *we 5 N., ,N.,, Legal Aid Service of Broward County, Inc. Statement of Cash Flows For the Year Ended December 31,2016 �'' (with comparative totals for December 31,2015 2016 2015 Nue Cash Flows from Operating Activities: Change in net assets $ (93,630) $ 130,703 tfto Adjustments to reconcile change in net assets to net cash provided by(used in)operating activities: Provision for depreciation and amortization 144,540 114,023 Unrealized(gains)losses on investments (16,806) 935 (Increase)decrease in assets: Contract and grant receivables (247,416) 56,252 Prepaid expenses 8,641 70,289 Promises to give 41,046 144,415 Client escrow funds 3,609 7,636 Deposits and other assets 4,064 - Increase(decrease) in liabilities: Accounts payable 24,093 55,219 Accrued expenses 84,880 (7,903) Deferred revenue (481,370) 838,843 .000 Client trust deposits (3,609) (7,636) Net cash provided by(used in)operating activities (531,958) 1,402,776 Cash Flows from Investing Activities: Purchases of property and equipment (33,061) (358,026) Net cash provided by(used in) investing activities (33,061) (358,026) Cash Flows from Financing Activities: Principal payments on debt (63,456) (30,657) Net cash provided by(used in)financing activities (63,456) (30,657) Net increase(decrease) in cash and cash equivalents (628,475) 1,014,093 Cash and Cash Equivalents,January 1 2,235,098 1,221,005 Cash and Cash Equivalents,December 31 $ 1,606,623 $ 2,235,098 Supplemental Cash Flow Information: Cash paid for interest(net of capitalized interest of$44,900 for 2015) $ 118,220 $ 63,008.00 Supplemental Disclosure: Noncash financing transaction: Acquisition of land and building $ - $ 729,256 The accompanying notes to financial statements are an integral part of these statements. i.0 6 ^-~ Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) **0 �� Note 1-Organization and Operations Legal Aid Service of Broward County, Inc. ("LAS" or the "Organization") is a nonprofit corporation organized primarily for the purpose of providing legal assistance in noncriminal proceedings or matters to persons financially unable to afford legal assistance residing in Broward and Collier Counties, Florida. LAS is funded largely through grants from Broward County,a political subdivision of the State of Florida (32% and 26% of revenues in 2016 and 2015, respecively); the Florida Bar Foundation (8%and 6%in 2016 and 2015, respectively); Legal Services Corporation (°LSO /496and 3%of revenues through a subgrant from Coast to Coast Legal Aid of South Florida, Inc. ("CCLA") in 2016 and 2015, respectively); and grants and contracts from other entities. A significant reduction in the level of supportfrmmntheaboveentities, if this were to occur,could have a material effect on the Organization's activities. Note 2-Summary of Significant Accounting Policies Basis of presentation: Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) No. 958 Not- foEntities. Under ASC No. 958,the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted assets.net Reclassifications: Certain accounts in the prior year financial statements have been reclassified to conform with the presentatimninthe current yeor�nancia|�mtemo�nt�` �° Itor' Restricted and unrestricted revenue and support: Contributions received are recorded as unrestricted,temporarily restricted,or permanently restricted support,depending on the existence and/or nature of any donor restrictions Noncash contributions are recorded at their estimated fair value on the date received. Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor- w�* mestricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and� reported in the statement of activities as net assets� released from restrictions. As of the years ended December 31, 2016 and 2015, the Organization had temporarily restricted net assets of $809,828 and $819,581, respectively, designated for cap, programservices. The Organization had nm permanently restricted net assets as of December 31, 2016 and 2015. kv.o Cash and cash equivalents: The Organization considers all highly liquid investments, for general operating purposes, with a maturity date of three months or less at date of purchase to be cash equivalents. At times during the year, the Organization maintains balances with financial institutions which may exceed the federally insured limit of$2SD,0JO. At December 31, 2016 and 2015, the Organization's uninsured cash balances were approximately $818,000 and $ 1,340,000, respectively. The Organization has not experienced any losses on such accounts and does not feel it is exposed to any significant risk with respect to cash and cash equivalents. Investments: Investments primarily consist of equity securities. Investments are stated at their fair value. Unrealized gains and losses in fair value are recognized and are included in the accompanying Statement of Activities. Nee Legal Aid Service ofBrmm�pdInc. � ^ County, Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) NWO, Note 2-Summary of Significant Accounting Policies(continued) Contract and grant receivables: Contract and grant receivables consist of amounts due fromreceivables government agencies and private donors, based on the terms of the related grant agreements. Management believes the amounts reported in the current year are collectable in the subsequent year. �� Nue Promises to give: Unconditional promises to give are recognized as revenues or gains in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditiohich they depend are substantially met and the promises become unconditional. Unconditional promises to give restricted for future operationsanoountedto - 633,995� �ndasofDecenhber2016 $696,61131, and 2015, respectively. Prepaid expenses and deposits and other Certain payments to vendors reflect costs � -- applicable to future accounting periods and are recorded as prepaid expenses. Deposits and other assets primarily include security and utility deposits. Property and equipment Property and equipment are recorded at cost if purchased or, if '‘e donated, at estimated fair value on the date of donation, less accumulated depreciation. In litee accordance with the Organization's policy, capitalization of assets is done only when the cost of a single item or aggregate purchase exceeds $ 1,000. The Organization follows the policy of providing for depreciation using the straight-line method over the estimated useful life of each type of asset which is as follows: tlosi Buildings and improvements 10-39 years Furniture and equipment 3-15 years Law library 3 years No# Property and equipment acquired with certain funds are considered to be restricted while used in the program. Therefore, contributions for these assets are reported as temporarily restricted AAio, support and expire over the useful lives of the assets. Contributions for assets without donor- imposed restrictions are reported as unrestricted support. Several of the grantees retain a reversionary interest in property and equipment purchased with their grants. 'AweClient escrow funds/Client trust deposits: Represent funds received fromor on behalf of clients and are held in a separately designated bank account These funds are not the property ofthe Organization and the cash in this account is reported as both an asset and a liability on the Statement of Financial Position. Deferred revenue: Contract and grant revenue that is not recognized because the allowable cost as defined by the individual contract or grant have not been incurred and/or the units of service have not been rendered is considered deferred revenue. t40, %**, 8 \ �+ Legal Aid Service of Broward County, Inc. [ ^ Notes to Financial Statements December 31 2016 (with comparative totals for December 31,2015) %00 Note 2-Summary of Significant Accounting Policies(continued) Donated materials and services: Donated equipment and materials are recorded as support at their estimated fair value when received. Such contributions are reported as increases in **0 unrestricted net assets unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regardinghow long those donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service I*0/ as instructed by the donor. The Organization reclassifies temporarily resthcted net assets to unrestricted net assets at that time. A substantial number of unpaid volunteers have de significant contributions of their time and services in relation to the Organization's Pro-Bono program which would have been purchased ifnot provided 6«contribution. Dur�g the years ended December 31, 2016 and 2015, the Organization recorded �danoted services of $ 1,198,000 and [ ~ �8Q��[q1res��ctive|y *40 - . Income taxes: The Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code. However, income fromcertain activities not directly related to the Organization's tax-exempt purpose may besubiecttotaxation asunrelated business |ncmmne. The subject Organization believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements. The Organization's federal Returns of Organization Exempt from Income Tax (Forms 990) for 2013 through 2016 are subject to examination by the IRS. loge Functional expenses: The Organization has a number of programs (funds) and maintains accounting records separately for each of them. Expenses incurred are charged to each pro (fund) for direct expenditures incurred. In some cases, common expenses are incurred which support the work performed under more than one program. Such expenses are allocated between *00funding sources as agreed upon by these funding organizations, or in the absence of an agreement, on a reasonable basis as determined by management 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the rerted amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Summarized prior year information: The financial statements include summarized comparative information from the prior year, which is not presented by net asset type and functional expense *00/ classification and does not include sufficient detail to conform with generally accepted accounting kl*.0 principles. This information should be read in conjunction with the Organization's financial -40.0statements for the year ended December 31, 2015, from which the comparative information was extracted. *00Date of management review: Subsequent events were evaluated by management through April 18,2017,which is the date the financial statements were available for issuance. 9 *„.0 Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) Note 3-Fair Value Measurements In accordance with the Financial Accounting Standards Board in its Accounting Standards Nee Codification (ASC) No. 820, Fair Value Measurements and Disclosures, the Organization provides eee certain required disclosures. ASC No.820 establishes a fair value hierarchy that prioritizes inputs to a.. 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 measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Nee • Level 1 inputs are quoted prices (unadjusted) in active markets for identical investments that the Organization has the ability to access at the measurement date. Nee • Level 2 inputs are other than quoted prices included within Level 1 that are observable for the investments, either directly or indirectly (e.g. quoted prices in actual markets for similar securities, securities valuations based on commonly quoted benchmarks, interest rates and yield curves, and/or securities indices). Nee Nee • Level 3 inputs that are unobservable for the investments (e.g. information about assumptions, including risk, market participants would use in pricing a security). 4r Fair value of actively traded debt and equity securities are based on quoted market prices. All of the Organization's investments consist of equities with readily determinable fair values (Level 1). Nee There were no assets subject to Level 2 or Level 3 fair value measurements at December 31, 2016 and 2015. Note 4-Property and Equipment Property and equipment consist of the following at December 31, 2016 and 2015: Nee 2016 2015 Nee Nee Building and improvements $ 3,667,217 $ 3,644,998 Furniture and equipment 837,890 827,048 Law library 7,231 7,231Nee 4,512,338 4,479,277 Less accumulated depreciation 1,636,824 1,495,266 Nee 2,875,514 2,984,011 Nee Land 800,000 800,000 Nee Total $ 3,675,514 $ 3,784,011 Nee Depreciation and amortization expense amounted to $ 144,540 and $ 114,023 for December 31, 2016 and 2015,respectively. Nee Nee 10 Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) *40 Note 5-Debt too The Organization's debt consists of borrowings in connection with the acquisition and improvement of its two operating real properties located in Broward and Collier Counties, Florida. The Broward County headquarters' indebtedness consists of a note payable to a bank, which refinanced a loan facility originated in a prior year. The borrowing consists of a loan in the amount of$ 1,200,000, payable to a bank in monthly installments of principal and interest at 4.25 percent per annum through April 20, 2022, at which time the remaining principal balance will be due. The loan is collateralized by a first mortgage on the Broward County property with a net book value of approximately $ 1,519,000. The outstanding balance of this mortgage note is $ 1,061,974 as of December 31,2016. The Collier County office indebtedness was incurred on June 18, 2014 in connection with its property acquisition on that date, plus amounts available for improvements following the purchase. The borrowing consists of a loan in the amount of $ 1,500,000, payable to a bank in which monthly installments of principal and interest at 4.75 percent per annum through June 18, koo- 2024, at which time the remaining balance will be due. The loan is collateralized by a first mortgage on the acquired property with a net book value of approximately $2,146,000, Noo assignment of rents from the property,and a second mortgage on the Organization's real estate in Broward County, Florida. The outstanding balance of this mortgage note is $1,468,415 as of December 31,2016. The following is a schedule of approximate principal payments required by year for the mortgage debt outstanding at December 31,2016: Year Ending Broward Collier December 31, County County Total low 2017 $ 34,000 $ 33,000 $ 67,000 2018 35,000 35,000 70,000 2019 37,000 37,000 74,000 Nog 2020 38,000 38,000 76,000 2021 41,000 40,000 81,000 Thereafter 877,000 1,285,000 2,162,000 Noo Total $ 1,062,000 $ 1,468,000 $ 2,530,000 Note 6-Contracts and Grants The Organization receives financial assistance from federal, state and local agencies in the form of grants and contracts.The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and may be subject to audit by the grantor agencies. As a result of such audits, the grantor may require that amounts be returned. In certain instances, the grantor may increase its grant of funds to the Organization to Now offset amounts which would otherwise be repayable based on audits. Noe vow 11 o Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 so (with comparative totals for December 31,2015) too Note 6-Contracts and Grants(continued) Contracts and grants consist of the following: Grantor,Program Title Support and Contract Number Term Amount 2016 2015 Legal Services Corporation-Pro Bono (CCLA subgrant) 01/01/15 - 12/31/15 $ 244,918 $ - $ 244,918 01/01/16 - 12/31/16 $ 261,413 261,413 261,413 244,918 N. Florida Rural Legal Services-Title III N. Collier County 01/01/14 - 12/31/14 $ 23,712 - 208 01/01/15 - 12/31/15 $ 23,712 - 22,464 01/01/16 - 12/31/16 $ 23,712 21,486 - N. 21,486 22,672 Broward County Filing Fees- N. 13-FSAD-8309-2 10/01/14 -09/30/15 $ 1,153,400 - 864,900 13-FSAD-8309-2 10/01/15 -09/30/16 $ 1,220,000 915,000 305,000 13-FSAD-8309-2 10/01/16 - 09/30/17 $ 1,220,000 305,000 - 1,220,000 1,169,900 Collier County Filing Fees 10/01/14 -09/30/15 $ 108,310 - 66,978 10/01/15 -09/30/16 $ 108,310 66,978 41,332 10/01/16 -09/30/17 $ 108,310 39,165 - 106,143 108,310 N. Florida Bar Foundation- Foreclosure Prevention Grant 01/01/16 - 12/31/16 $ 115,000 115,000 - General Support Grant 01/01/16 - 12/31/16 $ 409,945 - 409,945 General Support Grant* 01/01/17 - 12/31/17 $ 409,945 409,945 - 524,945 409,945 Broward County Homeless Initiative Partnership- N. 14-FSAD-8309-1 10/01/14 -09/30/15 $ 40,227 - 21,433 14-FSAD-8309-1 10/01/15 - 09/30/16 $ 40,227 28,876 11,351 14-FSAD-8309-1 10/01/16 -09/30/17 $ 40,227 11,280 - 14-CP-HIP-8309-01 10/01/14 - 09/30/15 $ 170,750 - 98,154 14-CP-HIP-8309-01 10/01/15 -09/30/16 $ 155,750 89,400 66,350 k,.. 14-CP-HIP-8309-01 10/01/16 -09/30/17 $ 159,644 55,545 - N. 185,101 197,288 Broward County Commission- Children's Legal Education Fund 14-CP-CSA-8309-01 10/01/14 -09/30/15 $ 480,320 - 365,525 N. 14-CP-CSA-8309-01 10/01/15 -09/30/16 $ 550,320 437,912 112,408 14-CP-CSA-8309-01 10/01/16 -09/30/17 $ 534,960 151,024 - 588,936 477,933 N 12 oo Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) Note 6-Contracts and Grants(continued) Grantor,Program Title Support and Contract Number Term Amount 2016 2015 State of Florida, Department of Health- Ryan White Title I Grant- 11-CP-HCS-8309-RW 03/01/14 -02/28/15 $ 131,426 - 26,978 11-CP-HCS-8309-RW 03/01/15 -02/28/16 $ 121,426 18,488 101,772 11-CP-HCS-8309-RW 03/01/16 02/28/17 $ 121,426 103,084 - 121,572 128,750 Broward County Commission- Fair Housing Outreach FH400G14014 02/09/15 -01/31/16 $ 22,687 - 2,626 United Way-Broward County- Foreclosure Defense Project 07/01/15 -06/30/16 $ 63,000 21,165 41,835 Veterans Pro Bono Legal Services 07/01/13 -06/30/16 $ 394,788 85,796 123,596 07/01/16 -06/30/17 $ 173,596 28,576 - Supportive Services for Veteran Families 11/01/14 -09/30/15 $ 139,202 - 110,429 10/01/15 -09/30/16 $ 155,569 116,877 37,370 v. 10/01/16 -09/30/17 $ 155,569 41,333 - TANF/LIFT Sanctions Project 07/01/16 -06/30/17 $ 58,293 38,357 - 332,104 313,230 United Way-Collier County 01/01/15 - 12/31/15 $ 100,000100,000 01/01/16 - 12/31/16 $ 120,000 120,000 - 120,000 100,000 Children's Service Council of Broward County- L.A.W.Program- 14-2808 10/01/14 -09/30/15 $ 391,560 - 284,372 14-2808 10/01/15 -09/30/16 $ 401,349 303,740 97,609 14-2808 10/01/16 -09/30/17 $ 401,349 94,521 - K.I.S.S Program 14-2800 10/01/14 -09/30/15 $ 225,000 - 191,395 v. 14-2800 10/01/15 -09/30/16 $ 230,625 173,077 57,476 14-2801 10/01/16 -09/30/17 $ 281,625 53,913 - 625,251 630,852 Child Net,Inc.- ""` LAB14LEG 07/01/14 -06/30/15 $ 41,292 - 20,646 LAB15LEG 07/01/15 -06/30/16 $ 41,292 20,646 20,646 LAB16LEG 07/01/16 -06/30/17 $ 41,292 20,646v. - 41,292 41,292 "" 13 Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) Note 6-Contracts and Grants(continued) Grantor,Program Title Support i`.w and Contract Number Term Amount 2016 2015 Financial Resources Department- Guardian Ad Litem- GA 15-045 09/01/14 -06/30/15 $ 15,000 - 6,730 4.0 Taxpayer Advocate Service- L1TC Grant Program 15LITC0058 01/01/15 - 12/31/15 $ 75,000 - 75,000 , 16-L1TCO223-01-00 01/01/16 - 12/31/16 $ 95,000 95,000 - 95,000 75,000 firCatholic Charities 07/01/14 -06/30/15 $ 14,488 - 7,244 07/01/15 -06/30/16 $ 18,000 9,000 9,000 07/01/16 06/30/17 $ 18,000 9,000 - 18,000 16,244 Community Foundation of Broward County- 20160394 01/01/16 -12/31/16 $ 10,000 - 10,000 Community Foundation of Collier County 01/01/15 - 12/31/15 $ 7,500 - 7,500 .. 01/01/16 - 12/31/16 $ 19,000 19,000 - %Iwo 19,000 7,500 Community Development Block Grant- Collier County- B-14-UC-12-0016 02/01/15 -09/30/15 $ 72,100 - 67,373 B-15-UC-12-0016 10/01/15 -09/30/16 $ 166,084 106,693 27,380 B-16-UC-12-0016 10/01/16 -09/30/17 $ 166,084 53,268 - 1 159,961 94,753 1 Florida Coalition Against Domestic Violence-Violence Against Women Act- FCADV-DCF-LEGAL- 15-2024-LCH 07/01/14 -06/30/15 $ 9,477 - 7,200 Naples Children and Education Foundation 07/01/15 -06/30/16 $ 365,400 - 365,400 07/01/16 -06/30/17 $ 365,000 365,000 - 4. 365,000 365,400 Kids In Distress-HEART Grant- Grant#KID-HHS-LAB 09/30/14-09/29/15 $ 88,470 - 62,367 Grant#KID-HHS-LAB 09/30/15 -09/29/16 $ 85,863 65,406 20,349 4.0 Grant#KID-HHS-LAB 10/01/16 - 09/30/17 $ 45,116 10,070 - "' 75,476 82,716 tittai 14 Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) Note 6-Contracts and Grants(continued) '' Grantor,Program Title Support and Contract Number Term Amount 2016 2015 Kids In Distress-Sun Sentinel 01/01/15 -12/31/15 $ 1,931 - 1,931 Women in Distress-LIFT Grant- 1516-03-38-01 07/01/14 -06/30/15 $ 35,000 17,499 07/01/15 -06/30/16 $ 35,000 17,938 11,218 17,938 28,717 State of Florida Attorney 'der General's Office- Foreclosure Settlement Grant 08/01/13 -06/30/15 $ 838,843 - 335,536 ""` 01/01/16 - 12/31/17 $ 838,843 481,370 - I 481,370 335,536 1 City of Fort Lauderdale- HOPWA Grant 10/01/14 -09/30/15 $ 220,000 - 157,635 10/01/15 -09/30/16 $ 150,000 102,673 30,219 qwe 10/01/16 -09/30/17 $ 180,000 43,909 - 146,582 187,854 vow Legal Services of Greater Miami,Inc. CITI Community Development Grant 01/01/16 - 12/31/16 $ 45,000 45,000 - Broward Partnership for the Homeless 10/01/13 -09/30/15 $ 24,000 - 7,497 10/01/15 - 09/30/16 $ 10,000 5,833 1,669 5,833 9,166 Jim Moran Foundation- LEAP Project 12/01/16 - 11/30/17 $ 121,150 10,096 - Americorp Grant-Catholic Legal Services of Miami 12/08/14 - 11/30/15 $ 19,890 18,376 Equal Justice Works- 14NDHDC003 10/16/15 - 12/31/16 $ 36,690 31,420 3,058 10/16/16 - 11/30/17 $ 76,811 9,601 - 41,021 3,058 O'Neill Foundation 12/14/15 - 09/30/16 $ 15,000 - 15,000 The Mac Aids Fund 10/25/15 - 10/24/16 $ 15,000 - 15,000 Total contracts and grants $ 5,628,520 $ 5,127,897 * Amount included in temporarily restricted net assets. 4.0 15 ,r Ns. *$.0, Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) Note 7- Related Party Transactions | ~` The Organization is related to Coast to Coast Legal Aid of South Florida, inc (CM), through commonoopdnnemnb�rsandnnenm0ennent . Th�Qr��n�abon �a�e�o�� spom�and��uhun �nt�ndorov�es�dnin��natke and��ca|services to CCLA. The terms of the agreements are for one year, renewable annually. Rent and administrative services expense recovery under these agreements for 2016 amounted to approximately; 319'000and $173'080, respectively, and for 2015 amountedto approximately " . $3l9,QOOand$ l75,000,respectively. � *�* Fundraising 'e`^''"~ a''" e°p=.== .=.p"e" o/ ./=: For the Public Good event is shared between the Organization and CCLA based onthe percentage ofemployees for each enbty The Organization's share of fundraising revenue and expenses for For the Public Good event amounted to approximately$58,000 and$23,000 for 2016 and $ 76i000 and$55,0UQfor 2O1S. CCLA'sshare of revenue and expenses for For the Public Good event amounted to approximately ��2G,OQQ and $ 10,000 for 2016 and$40,000 and $ 12,000 for 2015. Approximately$ 16,000 was due to CCLA at December 31, 2016 in conjunction with this event, and this amount is a component of accrued expenses in the accompanying Statement of Financial Position. The Organization receives funding from CCLA under the Legal Services Corporation grant for the Pro Bono program (Note 12). Grant income received by the Organization under this subgrant amountedtm approximately ' 26 $ and *me 2015, pective|y. Approximately$ 195,000 was due to LAS at December 31, 2016 in conjunction | ,~ with this program, and this amount is a component of contract and grant receivables in the accompanying Statement of Financial Position. 4.0 � - The Organization provides funding CCLA under the Ryan WhiteTitle I grant. Payments made to CCLA under this subgrant amounted to approximately $53,000 and $42,000 during the years endedDa�enber�2, 3�16 n�2G1S, respectively. w� Note 8-6eas1m�Activities The Organization leases building space to a tenant under a noncancelable lease with a term of 60 months Future rents expected to be collected under current lease arrangements are estimated to be as follows: Year Ending December 31, 2017 40,000 2018 40,000 2019 40L000 2020 40L003 2021 20,000 Total 180,000 ,%0 16 M� Legal Aid Service of Broward County, Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) Note 9-Commitments and Contingencies Nose The Organization leases office space for its Immokalee office. This office space lease expires in December of 2018. The Organization leases office equipment under various operating lease agreements expiring in July of 2017, Future minimum lease payments under office space and equipment leases that have initial or remaining terms in excess of one year are approximated as follows: Year Ending 14.0 December 31, 2017 $ 35,600 2018 16,400 Total $ 52,000 Aggregate rental expense for the years ended December 31, 2016 and 2015 was approximately $45,000 and$ 113,000 respectively. Note 10-Employee Benefit Plan The Organization sponsors a tax-deferred annuity plan for substantially all employees, under Internal Revenue Code 403(b). The Organization did not make contributions to the tax-deferred annuity plan for 2016 and 2015. Employees are allowed to voluntarily contribute to the plan, but are limited to maximum amounts computed by the plan administrator. The plan provides for 100% immediate vesting. Note 11-Matching Requirements Certain grants require matching of amounts awarded with amounts contributed by other sources. All contractual matching requirements have been met. Noo 17 Legal Aid Service of Brovvard County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) 14 .0r Note 12-LSC Pro-Bono Funds The Organization's Pro-Bono Program is designed to meet the requirements of LSC's Private Attorney Involvement program funded through a subgrant from CCLA in 2016 and 2015. The following is a summary of the Pro-Bono funds of LAS. The amounts for 2016 and 2015 have been included in the LSC Pro-Bono totals on the Supplemental Schedule of Support, Revenues and Expenses by Fund. • Total Pro-Bono Program 2016 2015 Support: Contracts and grants 261,413 244,918 Expenses: • Paralegals and other staff salaries 131,062 125,440 Lawyers salaries 52,046 46,000 Employee benefits and payroll taxes 39,017 38,400 Client litigation costs 12,220 6,120 Space and occupancy 7,456 5,333 Interest expense 6,050 6,787 Insurance 3,600 3,475 Supplies 3,400 3,248 Telephone 3,210 1,977 Equipment rental and maintenance 2,000 2,940 Postage 1,352 1,343 Contract services 1,264 Library and subscriptions 2,511 Travel 80 261,413 244,918 Change in Net Assets Expenditures for property and equipment tow, *we Noe 18 -'" Legal Aid Service of Broward County,Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) , Note 13-Collier County Activity The following is a summary of revenues and expenses for 2016 and 2015 for Collier County, which '""' have been included in the accompanying financial statements. 2016 2015 Support: Contracts and grants: Naples Children&Education foundation $ 365,000 $ 365,400 Contributions 178,019 183,003 Community Development Block Grant 159,961 94,753 Florida Bar-IOLTA 132,464 135,282 4. United Way-Collier County 120,000 100,000 Filing Fees 106,143 108,310 LSC Pro-Bono(CCLA Subgrant) 101,004 108,447 RSHM Ministry contribution 46,566 10,000 Bar Association Dues 33,400 31,250 Low income tax clinic 30,483 22,195 ,, Title IIIB 21,486 22,672 Community Foundation of Collier County 19,000 7,500 Catholic Charities 18,000 16,244 Equal Justice Works 3,200 - FL Coalition Against Domestic Violence 7,200 FL Attorney General Foreclosure grant 75,809 55,287 O'Neill Foundation - 15,000 1,410,535 1,282,543 Expenses: Lawyers salaries 448,905 440,609 Paralegals 358,282 212,646 Employee benefits and payroll taxes 233,270 215,709 Other staff salaries 189,855 217,289 Space and occupancy 82,274 125,042 Interest expense 71,748 8,612 Travel 14,047 9,364 Telephone 37,592 17,988 Other operating expenses - 21,238 Supplies 14,385 16,017 Equipment rental and maintenance 12,365 14,277 Library and subscriptions 7,277 5,850 Postage 6,977 6,180 Insurance 6,775 15,101 Client litigation costs 5,678 2,821 Training and recruitment 3,043 1,102 Contract services - 13,055 1,492,473 1,342,900 Change in Net Assets $ (81,938) $ (60,357) '' 19 11..0 Legal Aid Service of Broward County, Inc. Notes to Financial Statements December 31,2016 (with comparative totals for December 31,2015) 44,0# Note 14-Restatement of Net Assets During the current year, the Organization reevaluated certain contracts and grants revenue received in the prior year. This resulted in an increase in deferred revenue and a reduction to net 44.00 assets of the Organization of $838,843 at December 31, 2015. In addition, the Organization reevaluated donated services which resulted in an increase of donated services of$884,000 for the year ended December 31,2015. 440, 44,40, ittoo' .N400 V4a# i4S IWO %116* *iaak '4440 14400 lo**0 14100 Nwoe ‘us# ‘4w, IWO ASO %se *to %of 460, 20 *of Iwo ktftv '44.0e to4s *me N.w.f 440 *00 4400, togo. ‘400, SUPPLEMENTAL INFORMATION %.„.0 '✓ 0 r o_ 00 O C ia tU y C W VI, W r r d, M Nrj N Uf p QM e� tf1 N 7 al 0 G L/ to Noe *atiso cc 471 M O Sco S No m o (" n4 YM0 n Z A d .11 a-4 C , O 3 0 1441 0 0. °1 G. cel rn c'm8.. Q I N 0 E o ,, tz e.i I U d m 13 t TVA X VIN a r 0 C u e✓ 3 ° o 1400 — A ev o .C a E Lb e-4 a,QG Nso m a t Y ;° N � ;° coo sag cd �, d e� r ' u -O w r o Q5, ,O p kn o co 73 O ��' C H y U o O N ,Sr v d d —��, u •- u. C 0 r o u •w O S .e ,-, wer a d v ` � t°1, z c °no s W c s o c �a, y c 0C 4 , of o 'r0 o —- sa •ecY- t' 0 c til ,'7-•' O 0) Cn O! .., 0> K N V _coto N •�. N O ,_ "`.� oC0/ ° e "� d2 BOE ' .., E E3 0 Q N .a u. t Z P. w d v_ t, Q 6 .� m w A 0 ¢ uy W I' ' t4 t d O Q Z -53 Q e u O a• 7 X @ p x w- 0. 07 p 0. m O. to a1 To O N ,0 ul 2 G] "roe 0 IWO .a.'0 =N oaa E - J C w✓ \19.\ 0 i 1 44\v4) C 24 Fr 0 ' N r r GO 0' u' c, O C+ .a N kl) 60Cr N et ei th *110N S4.A. v1 G co 12. u+ 30 Y aJ at lfl d O 0 Y1. to '1 u N *tfi e N 0 a Iwo a) u NS ra N ca 0 N y N 's O IA .. O y co..1. \ cn T t/� 4 'c A C 3 E leoG 4 O BO u a 0• c to w = 1 3 c N u u a R ° Wo 0 ~ i r l0 Y. yy -2 1- N p U a O 7 c ; y to cp A rl N o 00 a omt y '0 e o 0 d rn • 0 `� o ^ o7A ‘11 � a , o 0ai '0 *c 8 15 ti � -. A C. a 7 m 7. o NG A a Q .• 0 t t l p�' A 6 A 3 w = u p /1 IS o o v ? L S O n Eo ' 'cdc . - Y moe ° µ pC ct ° GC • R v E O ° Qu� c O G d 0 E o o G .0 I Ta o °- t o io cm ° 6 G O A ✓ i' — J 'ti+ •VW d d m to . @ Z u., s ci. d d u Z0- ar/ y O dd vri G 'A a ¢ I vl a �' V_ ya C cn ..et. G To ti) l Aid Service of Broward County,Inc. Notes to Schedule of Expenditures of Federal Awards For the Year Ended December 31,2016 Note 1-Basis of Presntatiom lavo, The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Legal Aid Service of Broward County, Inc. The information in this schedule is presented in accordance with the requirements of Title 2 D.S. Code of Federal Regulations Part —Z ^ Uniform Adn�/n/s�a�veRcqu�e�7ent� Cl�tPrinciples, ondAu�f 'qu�en�entzfor Federal Awxo (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in,or used in the preparation of,the financial statements. Note 2-Contingency The contract and grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the contract/grantor agencies becomes a liability of Legal Aid Service t4s. of Broward County, Inc. In the opinion of management, all contract and grant expenditures are in compliance with the terms of the agreement and applicable federal, state, and local laws and regulations. Note 3-Indirect Cost Rate %go' The Organization did not elect to use the 10%de minimis indirect cost rate. �� ''4100 1/0. *Or **60 '480 ,44� SSW' .xooae ''‘)0 NOW %WO iroW %ape ‘vme loa 23 *W*1 u u Legal Aid Service of Broward County, Inc. ..,./ Schedule of Support, Revenues and Expenses by Fund For the Year Ended December 31,2016 Florida Bar LSC Broward Collier Foundation Florida AG Pro-Bono ✓ County County General Chase (CCLA ti./ Filing Fees Filing Fees Support Grant Subgrant) L Revenues and Other Support: Contracts and grants $ 1,220,000 $ 106,143 $ 409,945 $ 481,370 $ 261,413 Donated services - - - - _ V Contributions - - - - - Investment income(loss) - - - - - V Special event revenue - - - _ - v Expense recovery from COLA - - - _ - Other Income - - - - - S 1,220,000 106,143 409,945 481,370 261,413 Expenses: V Salaries and wages: Lawyers 160,402 - 348,063 217,458 52,046 Paralegals 72,691 23,241 161,274 105,974 43,399 .., Other staff 344,021 - 234,689 31,038 87,663 Employee benefits and payroll taxes 104,051 5,013 185,798 124,466 39,017 Donated services - - - - \„/ Space and occupancy 96,408 1,365 73,453 - 7,456 Depreciation and amortization 144,540 - - - - V Interest expense 3,327 - 108,4116,050 ',,- Equipment rental and maintenance 76,048 - 465 - 2,000 Library and subscriptions 30,448 - 67,964 100 - bid Grant to subreciplent - - - - Lrr' Insurance 67,449 - 6,775 - 3,600 Travel 3,300 - 11,206 810 - ./ Supplies 57,579 - 10,985 3,400 Telephone 29,838 - 34,382 - 3,210 Special events - - - - V Contract services 18,000 - - - - Client litigation costs 14,391 - 4,234 1,408 12,220 V Other operating expenses 5,685 - 2,312 - - V Postage 20,073 - 6,977 - 1,352 Training and recruitment 22,763 - 2,542 116 - V Advertising 4,497 - 2,254 - - v 1,275,511 29,619 1,261,784 481,370 261,413 V Change in Net Assets (55,511) 76,524 (851,839) - - V Net Assets,January 1 (97,470) (17,458) 619,429 (47,746) - V Net Assets,December 31 $ (152,981) $ 59,066 $ 232,410) $ (47,746) $ - ',✓ V V V 24 V ttr Broward Broward Children's Childrens County County Legal Services Other Other 2016 Homeless Ryan White Education Council Grants Subtotal Funds Total ftw $ 185,101 $ 121,572 $ 588,936 $ 625,251 $ 1,628,789 $ 5,628,520 $ - $ 5,628,520 - - - - - - 1498,000 1,198,000 - - - - - - 326,030 326,030 - - - - - - 16,693 16,693 - ` - - - - 158,498 158,498 - - - - - - 392,615 392,615 - - - - - - 206,813 206,813 185,101 121,572 588,936 625,251 1,628,789 5,628,520 2,298,649 7,927,169 135,001 56,488 309,832 356,010 896,096 2,531,396 - 2,531,396 vare 15,301 3,440 113,692 133,454 354,311 1,026,777 1,026,777 7,750 3,372 (862) 42,000 59,100 808,771 144,416 953,187 1 34,087 16,326 91,814 148,994 275,239 1,024,805 31,367 1,056,172 - - - - - - 1,198,000 1,198,000 - - - - 360 179,042 - 179,042 - - - - 144,540 - 144,540 - - - - 600 118,388 - 118,388 - - - - 38,296 116,809 - 116,809 - - - - - 98,512 - 98,512 - 52,070 - - 33,999 86,069 - 86,069 - - - - - 77,824 - 77,824 3,175 80 6,154 3,386 4,072 32,183 718 32,901 - - - 1,129 73,093 172 73,265 - - - 180 67,610 - 67,610 Nitof - - - - - - 63,490 63,490 - - - - 37,000 55,000 55,000 299 - - 1,321 13,538 47,411 - 47,411 4,440 - - - 17,503 25,500 5,292 30,792 - - - 28,402 28,402 324 - 660 - 1,561 27,966 495 28,461 - - - - - 6,751 - 6,751 195,937 131,776 521,290 685,165 1,732,984 6,576,849 1,443,950 8,020,799 (10,836) (10,204) 67,646 (59,914) (104,195) (948,329) 854,699 (93,630) 12,959 140,962 215,700 9,791 620,163 1,456,330 1,982,685 3,439,015 $ 2,123 $ 130,758j $ 283,346 $ (504123) $ 515,968 $ 508,001 $ 1,982,685 $ 3,345,385 25 %We **00 %WO .4,400 NI Ow %We '41100 **0 ‘40 ;GO INTERNAL CONTROLS AND COMPLIANCE • Legal Aid Service of Broward County,Inc. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization'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 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 the Government Auditing Standards. 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 Organization'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 Organization's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. 4it/tab.# KEEFE McCULLOUGH Name 'awe Fort Lauderdale, Florida April 18, 2017 eao 27 Keefe McCullough CPA's+Trusted Advisors INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors Legal Aid Service of Broward County, Inc. Plantation, Florida Report on Compliance for Each Major Federal Program We have audited Legal Aid Service of Broward County, Inc.'s (a nonprofit organization) (the "Organization") compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Organization's major federal programs for the year ended December 31, 2016. 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. %we Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. %r Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Organization's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the ,.. United States of America; the standards applicable to financial audits contained in 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). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,evidence about the Organization's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Organization's compliance. KMCcpa.com I 6550 N Federal Hwy, 4th Floor Fort Lauderdale, FL 33308 Phone: 954 771,0896 Fax: 954.938.9353 28 Legal Aid Service of Broward County, Inc. Opinion on Each Major Federal Program In our opinion, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2016. Report on Internal Control Over Compliance Management of the Organization is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance,we considered the Organization's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program 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 internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organization's 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 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 first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report 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. -� AP KEEFE McCULLOUGH Fort Lauderdale, Florida April 18, 2017 o.. 29 `I Legal Aid Service of Broward County,Inc. Schedule of Findings and Questioned Costs For the Year Ended December 31,2016 A. Summary of Auditor's Results Nor 1. The auditor's report expresses an unmodified opinion on the financial statements of Legal Aid Service of Broward County, Inc. ►�• 2. No material weaknesses relating to the audit of the financial statements are reported in the 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. 3. No instances of noncompliance material to the financial statements of Legal Aid Service of Broward County, Inc. were disclosed during the audit. 4. No material weaknesses relating to the audit of the major federal programs are reported in the Independent Auditor's Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance. 5. The auditor's report on compliance for the major federal award program for Legal Aid Service of Broward County, Inc. expresses an unmodified opinion on the major federal program. `, 6. There are no audit findings relative to the major federal programs for Legal Aid Service of Broward County, Inc. reported in Part C of this schedule. 7. The program tested as a major program was: Federal Program CFDA Number Legal Services Corporation 09.610090 8. The threshold for distinguishing Type A and B programs was$750,000. 9. Legal Aid Service of Broward County, Inc. was determined to be a low-risk auditee pursuant to the Uniform Guidance. B. Findings-Financial Statements Audit No matters were reported. C. Findings and Questioned Costs-Major Federal Award Program Audit %. No matters were reported. �. D. Other Issues 1. No management letter is required because there were no findings required to be reported in a separate management letter. 2. No schedule of prior audit findings is required because there were no prior audit findings related to federal programs. 3. No corrective action plan is required because there were no findings reported under the Uniform Guidance. 30 •� Keefe McCullough CPA's+Trusted Advisors 1rr INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE BROWARD COUNTY FILING FEES CONTRACT UNDER ARTICLE V, PARAGRAPH 5.1 100 To the Board of Directors Legal Aid Service of Broward County, Inc. Plantation, Florida We have audited, 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, the financial statements of Legal Aid Service of Broward County, Inc. (a nonprofit organization) (the "Organization") which comprise the statement of financial position as of December 31, 2016, 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 April 18,2017. Compliance As part of obtaining reasonable assurance about whether the Organization's financial statements are free of material misstatement, we performed tests of the Organization's compliance with the provision of Article, V, Paragraph 5.1 of the Broward County Filing Fees Contract. That provision requires the Organization to maintain a compilation of case statistics that are supported by case files with corresponding code numbers and that the coding system differentiates the various legal services the Organization renders to its clients. However, providing an opinion on the overall 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 indicate that, with respect to the items tested, the Organization, maintained a compilation which contains case statistics that are supported by case files with corresponding code numbers and that the code numbers differentiate the various legal services rendered to clients. With respect to items not tested, nothing came to our attention that caused us to believe that the Organization had not complied, in all material respects, with the provision. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of compliance with the cited provision of the aforementioned contract and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. This report is intended solely for the information and use of the Board of Directors, management, and the Broward County Board of County Commissioners and is not intended to be and should not be used by anyone �.. other than these specified parties. i*Aittel"9-k KEEFE McCULLOUGH Fort Lauderdale, Florida April 18,2017 KMCcpa.com I 6550 N Federal Hwy, 4th Floor Fort Lauderdale,FL 33308 Phone: 954.771.0896 Fax: 954.938.9353 ~ 31