Hill Country Crisis Council, Inc. Background Information FY 2006 Auditor's Report and Financial Statements, As of August 31, 2006 December 2006 Monthly Income and Expense Statement With Year to Date Summary and Annual Budget HCCC Board of Director's List Key HCCC Staff List Hill Country Crisis Council, Inc. Financial Statements With Auditor's Report August 31, 2006 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT FINANCIAL STATEMENTS Statement of Financial Position Statement of Activities Statement of Cash Flows Notes to Financial Statements SUPPLEMENTARY INFORMATION Statement of Functional Expenses 5-7 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 313 EARL GARRETT KERRVILLE, TEXAS 78028 E MAIL - medcpa~madcpa com MICHAEL A. DOUVILLE CERTIFIED PUBLIC ACCOUNTANT INDEPENDENT AUDITOR'S REPORT Board of Directors Hill Country Crisis Council, Inc. P. O. Box 1817 Kerrville, Texas 78029 18 3 01 2 5 7-3112 FAX (8301257 3116 TOLL FREE 877-387-14 37 Members of the Board: I have audited the accompanying statement of financial position of Hill Country Crisis Council, Inc. (a nonprofit organization) as of August 31, 2006, and the related statement of activities, functional expenses, and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my 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 I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred To above present fairly, in all material respects, the financial position of Hill Country Crisis Council, Inc. as of August 31, 2006, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, I have also issued my report dated October 30, 2006, on my consideration of Hill Country Crisis Council, Inc.'s internal control over financial reporting and my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of my audit. My audit was conducted for the purpose of forming an opinion on the basic financial statements of Hill Country Crisis Council, Inc. taken as a whole. The schedule of functional expenses on page 8 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the bask financial statements and, in our opinion, is fairly stated in all material respects in //.,,frl~elation to the basic financial statements taken as a whole ' Mich. Douvill~~`~ Certified Public Accountant October 30, 2006 MEMBER TEXAS SOCIETY AND AMERIC 4N INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS i i HILL COUNTRY CRISIS COUNCIL, INC. STATEMENT OF FINANCIAL POSITION AUGUST 37.2006 ASSETS CURRENT ASSETS Cash and cash equivalents Government grants receivable Promises to give Accounts receivable Prepaid expense TOTAL CURRENT ASSETS Property and equipment (Net) TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Accounts payable Payroll taxes payable TOTAL CURRENT LIABILITIES NET ASSETS Unrestricted Temporarily restricted TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS See accompanying notes and auditor's report. -2 2006 $ 64,783 42,102 10,000 4,850 200 121.935 112.197 $ 234 132 $ 9,656 84 $ 9.740 $ 214,392 10.000 $ 224 392 $ 234 132 i I I i 1 HILL COUNTRY CRISIS COUNCIL, INC. STATEMENT OF ACTIVITIES YEAR ENDED AUGUST 31, 2006 REVENUE, GAINS, AND OTHER SUPPORT Contributions United Way Local government assistance Interest income Inkind support Federal Financial assistance State assistance Foundations and bequests Fees Fundraiser Net assets released from restrictions TOTAL REVENUES, GAINS, AND OTHER SUPPORT 2006 TEMPORARILY UNRESTRICTED RESTRICTED TOTAL $ 69,922 10,000 9,223 473 85,820 179,022 221,728 26,913 7,993 60,456 2.817 $ - $ 69,922 - 10,000 - 9,223 - 473 - 85,820 - 179,022 221,728 - 26,913 - 7,993 - 60,456 12817) - EXPENSES AND LOSSES Program services Fundraising Management and general TOTAL EXPENSES AND LOSSES CHANGES IN NET ASSETS NET ASSETS AT BEGINNING OP PERIOD NET ASSETS AT END OF PERIOD 674.367 f 2 817) 671,550 522,933 - 522,933 27,276 - 27,276 86,607 - 86.607 636 816 636.816 37,551 (2,817) 34,734 176 841 12,817 189 658 $ 214 392 ~ 10 000 ~ 224 392 See accompanying notes and auditor's report. 3- HILL COUNTRY CRISIS COUNCIL, INC. STATEMENT OF CASH FLOWS YEAR ENDED AUGUST 31, 2006 2006 i CASH FLOWS FROM OPERATING ACTIVITIES Increase (decrease) in net assets $ 34,734 Adjustments to reconcile change in net assets to net cash provided (used) by operating activities: Depreciation 14,915 (Increase] decrease in operating assets Government grants receivable (11,038) Accounts receivable (1.975) Increase (decrease) in operating liabilities: Accounts payable 757 Payroll taxes 16 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 37,409 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 37,409 BEGINNING CASH AND CASH EQUIVALENTS 27,374 ENDING CASH AND CASH EQUIVALENTS ~ 64 783 INTEREST EXPENSE See accompanying notes and auditor's report. -4- a HILL COUNTRY CRISIS COUNCIL, INC. NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2006 NOTE A -NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF ACTIVITIES ' Hill Country Crisis Council, Inc. (the Organization) provides temporary housing and other services to victims of family violence and sexual assault. Women and children stay in facilities owned by the Organization. The program includes a 24-hour hotline, counseling, legal advocacy, temporary shelter ' and emotional support. BASIS OF ACCOUNTING The financial statements of the Organization have been prepared on the accrual basis of accounting t and accordingly reflect all significant receivables, payables, and other liabilities. BASIS OF PRESENTATION Financial statement presentation follows the recommendations of the Financial Accounting Standards ' Board in its Statement of Financial Accounting Standards (SEAS) No. 117, Financial Statements of Not- for-Profit Organizations. Under SFAS No. 117, 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 net assets. RECOGNITION OF DONOR RESTRICTIONS 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-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. ESTIMATES Management uses estimates and assumptions in preparing financial statements. Those estimates and ' assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. ' PROPERTY AND EQUIPMENT The Organization capitalizes all expenditures for property and equipment with a cost of $2,000 or more. Purchased property and equipment are carried at cost. Donations of property and equipment are ' recorded as support at their estimated fair value. Such donations are reported as unrestricted support 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 t equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Organization reclassifies temporarily restricted net assets to unrestricted net assets at that time. Property and equipment is depreciated using the straight-line method, buildings 30 years, and equipment 5 to 10 years. INCOME TAXES The Organization is a not for-profit organization that is exempt from income taxes under Section 501 (c) (3) of the Internal Revenue Code, as an organization other than a private foundation. t -5- HILL COUNTRY CRISIS COUNCIL, INC. NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2006 NOTE A -NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF ACTIVITIES Hill Country Crisis Council, Inc. (the Organizations provides temporary housing and other services to victims of family violence and sexual assault. Women and children stay in facilities owned by the Organization. The program includes a 24-hour hotline, counseling, legal advocacy, temporary shelter ' and emotional support. BASIS OF ACCOUNTING The financial statements of the Organization have been prepared on the accrual basis of accounting ' and accordingly reflect all significant receivables, payables, and other liabilities. BASIS OF PRESENTATION ' Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SEAS) No. 117, Financial Statements of Not- for-Profit Organizations. Under SFAS No. 117, 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 net assets. RECOGNITION OF DONOR RESTRICTIONS 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-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified ' to unrestricted net assets. ESTIMATES ' Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. ' PROPERTY AND EQUIPMENT The Organization capitalizes all expenditures for property and equipment with a cost of $2,000 or more. Purchased property and equipment are carried at cost. Donations of property and equipment are t recorded as support at their estimated fair value. Such donations are reported as unrestricted support 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 t equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Organization reclassifies temporarily restricted net assets to unrestricted net assets at that time. Property and e equipment is depreciated using the straight-line method, buildings 30 years, and equipment 5 to 10 years. INCOME TAXES The Organization is a not-for-profit organization that is exempt from income taxes under Section 501 (c) (3) of the Internal Revenue Code, as an organization other than a private foundation. -5- HILL COUNTRY CRISIS COUNCIL, INC. NOTES TO FINANCIAL STATEMENTS AUGUST 3T, 2006 NOTE D - IN-KIND CONTRIBUTIONS AND EXPENSES In-kind contributions of direct operation expenses are recorded as both income and expenses at the time the expenses are contributed. ContribuTions of direct operating expenses are valued at cost or fair market value. NOTE E -CONTINGENT LIABILITY Hill Country Crisis Council has subcontracted services to Hill Country Community Needs Council part of the Victims Assistance Program. The contract covers the period July 1, 2005 to June 30, 2006 in the amount of $8,575. Anew contract hds not been signed as of August 31, 2006. NOTE F -EMPLOYEE BENEFIT PLANS Tax-deferred Annuiiv Plan The Organization has atax-deferred annuity plan qualified under Section 403~b) of the Internal Revenue Code. The plan covers full-time employees of the Organization, and is strictly voluntary as a salary reduction. Employees make contributions to the plan up to the maximum amount allowed by the Internal Revenue Code if they wish. The Organization does not contribute to the plan. ' NOTE G -PROMISES TO GIVE The Organization has only one promise to give from United Way. This promise is due within one year. 1 i ,_ 1 HILL COUNTRY CRISIS COUNCIL, INC. NOTES TO FINANCIAL STATEMENTS AUGUST 3T, 2006 NOTE D - IN-KIND CONTRIBUTIONS AND EXPENSES In-kind contributions of direct operation expenses are recorded as both income and expenses at the time the expenses are contributed. Contributions of direct operating expenses are valued at cost or fair market value. NOTE E -CONTINGENT LIABILITY Hill Country Crisis Council has subcontracted services to Hill Country Community Needs Council part of the Victims Assistance Program. The contract covers the period July 1, 2005 to June 30, 2006 in the amount of $8,575. Anew contract hds not been signed as of August 31, 2006. NOTE F -EMPLOYEE BENEFIT PLANS Tax-deferred Annuity Plan The Organization has atax-deferred annuity plan qualified under Section 40316) of the Internal Revenue Code. The plan covers full-time employees of the Organization, and is strictly voluntary as a salary reduction. Employees make contributions to the plan up to the maximum amount allowed by the Internal Revenue Code if they wish. The Organization does not contribute to the plan. NOTE G -PROMISES TO GIVE The Organization has only one promise to give from United Way. This promise is due within one year. 7- 1 313 EARL GARRETT K E'R f{VILLE, TEXAS 78028 E-MAIL - rnadq~a~^7madepacorn MICHAEL A. DOUVILLE 18 3 01 2 5 7-3112 FAX 18 3 01 2 5 7-3116 TOLL FREE 877-387-1437 CERTIFIED PUBLIC ACCOUNTANT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMEMAUDITING STANDARDS Board of Directors Hill Country Crisis Council, Inc. Kerrville, Texas 78028 I have audited the financial siatemenh of Hill Country Crisis Council, Inc., (a nonprofit organization) as of and for the year ended August 31, 2006, and have issued my report thereon dated October 30, 2006. I conducted my 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 my audit, I considered Hill Country Crisis Council, Inc.'s internal control over financial reporting in order to determine my auditing procedures for the purpose of expressing my opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. My consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable 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 misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I noted no ' matters involving the internal control over financial reporting and its operations that I consider to be material weaknesses. ' Comoliance As part of obtaining reasonable assurance about whether Hill Country Crisis Council, Inc.'s financial statements are free of material misstatement, I performed tests of its compliance with certain ' provisions of laws, regulations, contracts, and grants, 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 my audit, and accordingly, I do not express such an opinion. The results of my 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 audit committee, management, Board of Directors and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. i"6~2C~IGa.c.~- / Michael A. Douville ' Certified Public Accountant October 30, 2006 ' 9- t MEMBER TEXAS SOCIETY AND AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS HILL COUNTRY CRISIS COUNCIL, INC. STATEMENT OF INCOME & EXPENSE FY07 YEAR-TO-DATE AS OF: 31-Dec-06 LATEST FY07 FY07 BUDGET OF YEAR: 33% MONTH YTD TOTAL BUDGET % USED INCOME CONTRIBUTIONS Direct 12,174.00 27,386.00 70,000.00 39% Donated Goods, Services, Labor 24,426.55 72,864.81 Indirect 2,500.00 2,500.00 9,000.00 283'° Foundations 2,700.00 54,200.00 89,000.00 61% Governments 38,020.41 138,781.79 405,000.00 34% REVENUE Program Service 495.00 2,490.00 18,000.00 14% Interest 104.37 973.71 500.00 195% Accounting Adjustment 0.00 0.00 FUNDRAISERS 750.58 19,678.13 52,000.00 38% FndRSr Donated Goods 0.00 4,041.72 INCOME SUB-TOTAL 81,170.91 322,916.16 643,500.00 39% 1 EXPENSE COMPENSATION & RELATED EXPENSES Compensation 34,709.07 133,258.62 399,391.00 33°h Employee Benefits 2,843.98 10,926.18 43,532.00 25% Payroll Taxes 2,655.17 10,194.26 31,283.00 33% COMPENSATION SUB-TOTAL 40,208.22 154,379.06 474,206.00 33% Assistance to Others 574.91 574.91 700.00 82% Accounting Fees 0.00 3,900.00 3,900.00 100% Legal Fees 0.00 0.00 Supplies 441.35 1,929.55 13,500.00 14% Educational Supplies (Videos, Books..) 22.20 2220 2,000.00 1% Donated Supplies, Food 12,096.74 28,568.52 Telephone/Communications 1,284.53 4,970.79 13,000.00 38% Postage & Shipping 112.58 706.78 2,800.00 25% Occupancy 1,751.41 7,311.88 20,830.00 35% Equipment Rental 8 Maintenance 323.00 1,292.00 6,400.00 20% Printing & Publications 625.18 2,371.53 2,400.00 99% Travel 1,427.11 6,038.70 20,125.00 30% Conferences, Meetings, Training -166.68 2,341.97 6,000.00 39% Interest 182.74 182.74 Depreciation 0.00 0.00 OTHER Contrail Labor/Consultants 6,271.00 6,271.00 17,000.00 37% HCCC_Monthly Inc-Exp Summary.xls Page 1 of 2 Prepared On: 1/22!2007 HILL COUNTRY CRISIS COUNCIL, INC. STATEMENT OF INCOME & EXPENSE FY07 YEAR-TO-DATE AS OF: 31-Dec-06 LATEST FY07 FY07 BUDGET OF YEAR: 33% MONTH YTD TOTAL BUDGET % USED Marketing/Publicity 0.00 50.00 200.00 25% Equipment Purchases 0.00 1,104.99 2,500.00 44~° Equipment8 Facilities Maintenance 200.70 1,392.50 10,000.00 14% Insurances 0.00 2,195.00 10,000.00 22% Dues, Fees, Subscriptions 660.06 1,092.06 2,500.00 44% Licenses & Professional Fees 0.00 0.00 Volunteer & Board Labor Value 9,816.06 41, f 05.15 Donated Services 2,513.75 3,191.14 Board Expenses 91.30 126.17 500.00 25% FundraisinglEvent Expenses 94.35 9,627.98 22,000.00 44% Donated FR Goods Expense 0.00 4,041.72 Employee Relations 178.22 178.22 700.00 25°~ INFO ONLY-Reserve Fund Savings YT 0.00 2 -36,000.00 2 2 (Not Included in Budget Totals) EXPENSE SUB-TOTAL 78,708.73 284,966.56 631,261.00 34% t NETY-T-D= 2,462.18 37,949.60 12,239.00 312°h t 1 Percentages calculated include only budgeted income and expense lines. 2 Transfers of funds to the Money Market Account are not a Budget item. This line is not included in Budget totals. HCCC_Monthly Ino-Exp Summary.xls Page 2 of 2 Prepared On: 1/2212007 Board of Directors 2006 Hill Country Crisis Council With 2007 Officers and New Members Board of Years of Committee Directors Services Officers A ointments Address Telephone Executive Comm.- Chair 600 Overhill, Carl Brownin 9 ears President Kerrville 78028 257-3122 0 President-Elect, Executive, Finance Acting PO Box 191, Center Brian Cowen 1 ear Treasurer Point 78010 895-2265 0 Execitive Committee, Secretary/Incom 1303 Vesper Lane, Michael Walker 4 ears in Secrets ' Buildin O erations-Chair Kerrville 78028 895-2724 0 Nominating 2106 Vista Ridge Kate Allen 1 ear Dr., Kerrville 78028 792-4651 h Personnel, Finance 819 Water St., Suite Brenda Bea 5 ears 320, Kerrville 78028 257-7241 0 2 Nominating, Fundraising years/Reti PO Box 165, res Mountain Home Care Bond 1/23107 78055 895-1555 0 Buildling Operations Incoming 247 Four Bears Ken Bruner 1 ear President-Elect' Trail, Kerrville 78028 367-4564 h Incoming Building Operations, 604 Cardinal Drive, Geor e E chner 1 ear Treasurer' Fundraisin Kerrville 78028 370-1663 0 Personnel, Buildling PO Box 293243, Paul Gonzales 2 ears O erations Kerrville 78029 257-7209 0 Nominating PO Box 29004, Theresa Sherman 1 ear Kerrville 78029 895-8028 0 Fundraising-Chair, 315 Hummingbird Ma Ga Wa ner 1 ear Nominatin Ln, Kerrville 78028 895-5687 h Fundraising PO Box 946, Ingram Susan Clark 6 months 78028 896-1185 h 212 Sidney Baker Begins 1- South, Kerrville Keri Kro 23-07 78028 257-1280 (o 3100 Memorial Begins 1- Blvd., Kerrville Kent Bond 23-07 78028 257-8233 0 Begins 1- 819 Water St., Suite Mike Russell, LPC 23-07 300, Kerrville 78028 792-3300 0 This information is provided for grant application evaluation purposes only. 1/07 Hill Country Crisis Council Key Staff Sheryl Howazd, Executive Director Hilton Fazris, Director of Prevention and Intervention Patsy Lackey, Director of Victim's Services, Legal Advocate Patrice Doerries, Senior CARES Coordinator Wayne Marrs, LMSWI, Counselor Pam Hansen, LPCI, Counselor Sue Hankins, Victim's Advocate (Kerrville campus) Glennda Wilke, Victim's Advocate (Bandera and Boerne) Beth Johnson, Volunteer and Events Coordinator Marcia Sullivan, Shelter Coordinator Ivan Arrendell, Prevention Specialist-Offenders Lefty Turkett, Prevention Specialist-Schools Patti Sirmans, Administrative Coordinator Roger McCormick, Financial Coordinator Roxanne Spindler, Donations Coordinator Vacant, Facilities Manager Vacant, Rural Outreach Specialist 1-22-07