ORDER NO. 31092 CONTRACTS WITH VOLUNTEER FIRE DEPARTMENTS AND KERR COUNTY SPONSORED ENTITIES Came to be heard this the 10th day of November, 2008, with a motion made by Commissioner Williams, seconded by Commissioner Baldwin, the Court unanimously approved by a vote of 4-0-0 to: Approve Contracts with Kerr County Sponsored Entities and Volunteer Fire Departments, and authorize County Judge to sign same: K' Star Dill Country CASH Hunt Volunteer Fire; Department Ingram Volunteer Fire Department Mountain Home Volunteer Fire Department Tierra Linda Volunteer Fire Department COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN (10) COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: Judge Tinley OFFICE: County Judge MEETING DATE: November 10, 2008 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action to approve the contracts with K'Star, Hill Country CASA, Hunt Volunteer Fire Department, Ingram Volunteer Fire Department, Mountain Home Volunteer Fire Department and Tierra Linda Volunteer Fire Department, and allow the County Judge to sign same. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Judge Tinley ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: All Agenda Requests will be screened information has been prepared for the Meetings. Your cooperation will be addressed at the earliest opportunity. Court. @ .M. by the County Judge's Office to determine if adequate Court's formal consideration and action at time of Court appreciated and contribute towards your request being See Agenda Request Rules Adopted by Commissioners' 5:00 PM previous Tuesday #31092 HILL COUNTRY COURT-APPOINTED SPECIAL ADVOCATES "CASA" CONTRACT STATE OF TEXAS § COUNTY OF KERR § WHEREAS, Kerr County, Texas, a political subdivision of the State of Texas, hereinafter referred to as "COUNTY," has determined that the expenditure of county funds proposed herein is one which serves a public purpose and has further determined that the State of Texas, by its Constitution or by its state statutes, either implicitly or explicitly, has conferred upon COUNTY the authority, the power and the jurisdiction to accomplish the uses for said funds as proposed below. Having found the above elements fully satisfied, COUNTY has determined that it may contract with HILL COUNTRY COURT-APPOINTED SPECIAL ADVOCATES, hereinafter "CASA," a Texas non- profit corporation, may use said public funds for the purposes contemplated herein, but only if the expenditure is to accomplish "county business" (which encompasses matters of general concern to county residents) and only if COUNTY assures itself that the funds to be transferred by this contract are subject to adequate contractual or other controls to ensure that expenditure of said county funds for the public purpose stated herein will be accomplished and so long as COUNTY receives adequate consideration for the county funds to be provided by this contract; and IT IS THEREFORE AGREED THAT: 1. Consideration. In consideration for the services described below to the COUNTY, CASA shall be entitled to a lump sum not to exceed $1,000.00. Such amount shall be disbursed by the COUNTY to CASA on or after January 1, 2009, upon written request from CASA. 2. Insurance. CASA shall at all times maintain a policy of liability insurance for premises liability for personal injury. Said policy shall be in the minimum amount of $ 1,000,000.00. 3. Services. CASA will provide services to the COUNTY and the residents of Kerr County as follows: 1 a. Provide Friends of the Court for use in the COUNTY in appropriate cases relating to children as ordered by the presiding judges of Kerr County courts, and b. Perform such other information gathering services as requested by the COURT. 4. IRS classification. CASA'S Internal Revenue Service, non-profit classification is 501©(3) and its IRS EIN is 74-2551029. S. Most recent financial and performance reports. CASA shall submit to COUNTY a copy of CASA'S most current independent financial audit or end-of- year financial report of all expenditures and income for the period of CASA'S fiscal year ending in calendar year 2008, within 30 days of the approval of this contract. CASA shall provide to COUNTY a performance review by which CASA gives details of services provided and clients served for the previous fiscal year ending on September 30, 2008, not later than 30 days after the approval of this contract. Said performance review shall also include the total number, listed by court served, of children served, of family studies initiated and completed, of times appointed and served as guardian ad litem, and the number and types of other services performed by CASA along with the name of the department requesting the service. 6. Prospective financial and performance reports. CASA shall submit to COUNTY a copy of CASA'S independent financial audit or end-of--year financial report of all expenditures and income for the period of CASA' S fiscal year ending in calendar year 2009, by the earlier of thirty (30) days following its receipt by CASA or by September 30, 2009. CASA shall provide to COUNTY a performance review by which CASA gives details of services provided and clients served for the CASA'S fiscal year ending in calendar year 2009, by September 30, 2009. Said performance review shall also include the total number, listed by court served, of children served, of family studies initiated and completed, of times appointed and served as guardian ad litem, and the number and types of other services performed by CASA along. with the name of the department requesting the service. 7. Term. The Term of this agreement is one year beginning on October 1, 2008, and ending on September 30, 2009, unless earlier terminated by either party on thirty (30) days written notice. The date of the commencement of the term of said agreement may be modified by agreement of the parties. 8. Use of funds. No moneys paid to CASA shall be expended for any purpose other than for the providing of the aforementioned services to the courts, 2 the juvenile probation department, other Kerr County departments engaged in the providing of services related to children, and to residents of Kerr County; provided, however, that no moneys may be expended for the provision of salaries to any person. 9. Books and records. All books and records of CASA shall be open for inspection during normal business hours to any member of the public, the Kerr County Auditor, and such persons as may be given that authority, in writing, by the COUNTY, provided, however, that this clause shall in no way be construed to override the provisions of the Federal Privacy Act or other state of federal law or regulation concerning. the disclosure of confidential or privacy matters. 10. Non-exclusion. This contract is not exclusive and COUNTY reserves the right to contract with additional parties for the provision of the aforementioned services to the courts, the juvenile probation department, other Kerr County departments engaged in the providing of services related to children, and to residents of Kerr County. 1 l . Effective date. This agreement is effective upon approval by Order of the Kerr County Commissioners Court. 12. Non-discrimination. CASA agrees to operate under a policy of non- discrimination with regard to the provision of said services. Such policy shall prohibit discrimination by CASA'S employees or principals on the basis of race, sex, age, religion, color, handicap,. disability, national origin, language, political affiliation, political belief or other non-merit factor. Any act of discrimination shall constitute a material breach of this contract. 13. Sexual harassment prohibited. CASA further agrees to adopt and maintain a policy that prohibits sexual harassment. Any act of sexual harassment by CASA'S employees or principals constitutes a material breach of this contract. 14. Applicable laws. CASA agrees to comply with any and all applicable laws, local, state, and federal, regarding work hours, safety, wages, social security benefits, discrimination and/or workers compensation. This clause places a duty to meet the requirements of such laws only if the law itself places such a duty on CASA. Any act in violation of any of those laws or ordinances shall constitute a material breach of this contract. 15. Default. a. In the event either party shall fail to keep, observe or perform any covenant, agreement, term or provision of this contract to be kept, observed or performed by such party, respectively, and such default shall 3 continue for a period of ten (10) days after notice thereof by the non- defaulting party to the other, then in any such event the non-defaulting parry shall be entitled to terminate this contract. b. No delay on the part of either party in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege constitute such a waiver nor exhaust the same, which shall be continuing. No notice to or demand on either party in any case shall entitle such party to any other or further notice or demand in similar or other circumstances, or constitute a waiver of the rights of either party to any other or further action in any circumstances without notice or demand. 16. Successors and assigns. This contract shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, legal representatives, successors and assigns; provided that CASA may not assign this contract without COUNTY'S prior written consent. 17. Governing law. This contract shall be governed by and construed and interpreted in accordance with the laws of the State of Texas. This contract shall be enforceable in Kerr County, Texas and venue shall also lie in Kerr County, Texas. 18. Notices. Any notice or communication hereunder must be in writing, and may be given by registered or certified mail; if given by registered or certified mail, same shall be deemed to have been given and received when a registered or certified letter containing such notice, properly addressed, with postage prepaid,. is deposited in the United States mail; and if given otherwise than by registered mail, it shall be deemed to have been given when delivered to and received by the party to whom it is addressed. Such notices or communications shall be given to the parties hereto at the addresses set forth below. Any party hereto may at any time by giving ten (10) days written notice to the other party hereto designate any other address in substitution of the foregoing address to which such notice or communication shall be given. 19. Severability. If any term, covenant or condition of this contract or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this contract or the application of such term, covenant or condition to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term, covenant or condition of this contract shall be valid and shall be enforced to the fullest extent permitted by law. 4 20. Relationship. The parties hereby agree that this contract is for the provision of the services described herein and hereby renounce the existence of any other relationship. In no event shall COUNTY have any obligation or liability whatsoever with respect to any debts, obligations or liabilities of CASA, and CASA shall have no authority to bind COUNTY to any contract, matter or obligation. No duties of COUNTY are-delegated to CASA by this contract and any provision which is or may be held to be such a delegation shall be of no force or effort. 21. Modification and termination. This contract may be amended, modified, terminated or released only by written instrument executed by COUNTY and CASA, except as herein otherwise provided. 22. Total agreement. This contract is a total and complete integration of any and all undertakings existing between the parties hereto and supersedes any prior oral or written agreements, promises or representations between them. The headings of the various paragraphs of this contract are for convenience only, and shall not define, interpret, affect or prescribe the meaning and interpretation of the provisions of this contract. KERB COUNTY CASA ~~, f BY: BY: l ~(1.~QQ~~ 1, lfn/.L i ey President, of the CASA Kerr County Judge Date: ~ ~ '"~ ~ ~~ Date: ID'a0~0 ~ NOTICES COUNTY: HILL COUNTRY CASA: Kerr County Executive Director, CASA 700 Main Street P.O. Box 290965 Kerrville, Texas 78028 Kerrville, Texas 78029 CLERK'S CERTIFICATION I, JANNETT PIEPER, County Clerk of Kerr County, Texas, certify that the above agreement was accepted, approved and agreed to by the Commissioners' Court of Kerr County, Texas on November 10 , 2008, in Order No. 31o92recorded and filed in the Minutes of the Commissioners' Court of Kerr County,. Texas. ~.~ ,. •,,=F~ ,. ~ p~~ ti ~~~ ~~~ ~~'`' _ '°o~~~~ JA ET PIEPER ~ `'° ~. County Clerk o a v~ ~~a ~; Kerr County, Texas rr"' X03 ~C1N`~3 Date: November 10, 2008 6 CASH Court Appointed Special Advocates FOR CHILDREN HILL COUNTRY CASA P.O. Box 290965 Kerrville, TX 78029-0965 830.896.2272. 830.896.2309 F • hccasa@ktc.com October 28, 2008 Kerr County Commissioners Court Kerr County Courthouse Kerrville, Texas 78028 Judge Tinley and Members of the Court: As per our contract with Kerr County; enclosed please find Massey, Itschner and Company's independent audit for Hill Country CASA's fiscal year 2007-08 ending June 30, 2008. This audit, like all previous ones, was without finding or recommendation. Also included please find the contract that you submitted to our organization for the current fiscal year. On October 20`~ the Board of Directors of Hill Country CASA approved this contract which grants $1,000 for the provision of volunteer advocates for children from Kerr County who are in state conservatorship because of abuse and neglect. Currently Hill Country CASA is providing advocates for 128 Kerr County children in 68 lawsuits. In Kerr County's last fiscal year our 72 active volunteers acted as advocates for over 300 children. Of that number, 180 children (60°~ were from Kerr County. Your funding demonstrates the Court's concern for and commitment to those children. If you have questions or need further information; please do not hesitate to contact me. Yours truly, ~~~ _ ~-~~ Diane L. Oehler Executive Director Hill Country CASA ATTACHMENTS 1. Hill Country CASA Audit FY 2007-2008 2. Kerr County statistics October 2007-September 2008 3. Hill Country CASA current statistics Serving Kerr, Bandera, Kendall and Gillespie Counties HCCASA IS A MEMBER OF TEXAS AND NATIONAL CASA ASSOCIATIONS Hill Country CASA's Statistical Report to Kerr County October 1, 2007 to September 30, 2008 Between Qctober 2007 and September 2008, Hill Country CASA was ordered by the Courts to serve 302 children in 153 cases. 60°l0 of the children served were from Kerr County Breakdown of Hill Country CASA's services for the Courts: 1. TDFPS Cases - 299 children in 150 cases Kerr Co. -178 children Bandera Co. - 58 children Gillespie Co. - 36 children Kendall Co. - 25 children Courtesy other CASA programs - 2 children 2. Adoption Cases - 2 children in 2 cases Kerr Co. - 1 child 1198u' District. Court) Bandera Co. - 1 child (216m District Court) 3. Custody Cases (with outcry of abuse) -1 child 6n 1 case Kerr Co. - 1 child in 1 case (Kerr Co. Court at Law) PROCEDURE/REPORTS: 1. In TDFPS cases Hill Country CASA files report for each hearings that is held. As directed in the Texas Family Code, advocates maintain regular and cons[stent contact with children in state care, conduct home visits and/or monitor foster placements. Advocates attend all hearings, staffings, conferences and mediations scheduled in the case and facilitate necessary services so that the children receive maximum benefits. ~. In Adept:~z Cases l~li[[ Count; y CASA ~[es Soc[a[ Study Reports prepared by one of our volunteers who meets the qualifications described in the Texas Family Code. Most of our adoptions cases are adoptions within an existing family and only one report is necessary. 3. In *Custody Cases Hill Country CASA fifes an initial Home Study Report and then, depending on the duration of the case, any supplemental or updated reports. that. are necessary or requested. 4. In *7uvenite Court Cases, H[If Country CASA files and initial Home Study Report and any updated reports that are necessary or requested. *Due to an increase in TDFPS casework, Hill Country CASA is no longer accepting Custody or Juvenile Court appointments unless the judiaary feels children are at risk. HILL COUNTRY CASA STATISTICS October 28, 2008 CHILDREN IN CPS CUSTODY 229 children in 119 CPS cases Kerr County - 131 children/68 cases Bandera County - 47 children/25 cases Gillespie County - 31 children/16 cases Kendall County - 19 children/9 cases Courtesy Case for other courts - 1 child /1 case CUSTODY: None ADOPTIONS: None HILL COUNTRY CASA FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION June 30, 2008 and 2007 CONTENTS Pages Independent Auditors' Report Statement of Financial Position 4 Statement of Activities Statements of Functional Expenses 6 - 7 Statement of Cash Flows 8 Notes to Financial Statements 9 - 11 Supplementary Information Schedule of Texas CASA, Inc. Grant Awards 13 Schedule of VOCA Grant Awards 13 Schedule of OVA Grant Award 13 Schedule of Findings or Exceptions 14 Massey • Itschner & Company, P.C. CERTIFIED PUBLIC ACCO UN"PANTS Independent Auditor's Report September 29, 2008 Board of Directors Hill Country CASA Kerrville, Texas We have audited the accompanying statements of financial position of Hill Country CASA (a non-profit organization) as of June 30, 2008 and 2007 and the related statements of activities, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility 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. Those standards require that we 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 significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hill Country CASA as of June 30, 2008 and 2007, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The Schedule of Texas CASA, Inc. Grant Awards, Schedule of VOCA Grant Awards, Schedule of OVA Grant Award, and Schedule of Findings or Exceptions on page 13 and 14 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ~~ !~1 2~ ~~.,p~ CERTIFIED PUBLIC ACCOUNTANTS 707 Hill Country Drive #118 • Kerrville, Texas 78028 • (830) 257-5330 • Fax (830) 257-4775 Email: micoQmicocpa.com Members ofAmerican Institute of Certified Public Accountants HILL COUNTRY CASA STATEMENT OF FINANCIAL POSITION ASSETS Current assets: Cash and cash equivalents Grants receivables Promises to give Total current assets Property and equipment, net For the Years ended June 30, 2008 2007 $ 79,088 $ 78,688 15,371 10,062 39,500 13,000 133,959 101,750 6,903 4,805 $ 140,862 $ 106,555 LIABILITIES AND NET ASSETS Current liabilities: Payroll taxes payalble Net assets: Unrestricted Investment in property and equipment Undesignated Total unrestricted Temporarily restricted Total net assets $ 2,242 $ 2,090 6,903 96, 717 103,620 35,000 138,620 $ 140,862 4,805 90,640 95,445 9, 000 104,445 $ 106,535 See independent auditors' report and accompanying notes to the financial statements. -4- HILL COUNTRY CASA STATEMENT OF ACTIVITIES UNRESTRICTED NET ASSETS Support and revenues: General contributions Local government assistance Texas CASA Victims of Crime Act Other Victims of Crime Act Foundations Interest Income Net assets released from restrictions Expenses: Victims of Crime Act Texas CASA Other Victims of Crime Management and general Fundraising Excess (deficiency) of operating revenues over operating expenses Unrestricted Net Assets -Beginning of the Year Unrestricted Net Assets -End of the Year TEMPORARILY RESTRICTED NET ASSETS Support and revenues: United Way Foundations Net assets released from restrictions Total change in Temporarily Restricted Net Assets Temporarily Restricted Net Assets -Beginning of the Year Temporarily Restricted Net Assets -End of the Year Total change in Net Assets Net Assets -Beginning of the Year Net Assets -End of the Year For the Years ended June 30, 2008 2007 $ 19,169 $ 14,957 2,500 5,500 32,283 38,033 39, 744 37, 682 21,166 - 56,320 55,000 2,366 2,472 9,000 43,000 182,548 196,644 71,576 70,155 58,142 70, 806 21,166 21,187 22,094 2,302 2,302 174,373 165,357 8,175 31,287 95,445 64,158 103,620 95,445 10, 000 9,000 25, 000 - (9,000) (43,000) 26,000 (34,000) 9,000 43,000 35,000 9,000 34,175 104,445 $ 138,620 (2,713) 107,158 $ 104,445 See independent auditors' report and accompanying notes to financial statements. -5- HILL COUNTRY CASA STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2008 Program Services Victims of Other Victims Crime Act Texas CASA of Crime Compensation $ 33,169 $ 26,943 $ 21,166 Employee benefits 7,764 6,307 - Payroll taxes 3,342 2,714 - Conferences and training 2,451 1,991 - Depreciation - - _ Insurance 1,079 877 - Contract services - - - Maintenance - - _ Occupancy 5,214 4,236 - Postage 511 415 - Dues 135 110 - Supplies 6,670 5,418 - Telephone 2,050 1,665 - Travel 9,191 7,466 - $ 71,576 ~~s $ 58,142 $ 21,166 See independent auditors' report and accompanying. notes to the financial statements. Supporting Services Management & General Fundraising Total $ 6,883 $ 1,839 $ 90,000 1,599 322 15,992 689 141 6,886 494 - 4,935 1,950 - 1,950 217 - 2,173 3,900 - 3,900 668 - 668 1,050 - 10,500 103 - 1,029 27 - 272 1,343 - 13,432 413 - 4,128 1,851 - 18,508 $® $® -6- HILL COUNTRY CASA STATEMENT OF FUNCTIONAL EXPENSES For the Year Ended June 30, 2007 Compensation Employee benefits Payroll taxes Conferences and training Depreciation Insurance Contract services Maintenance Occupancy Postage Dues Supplies Telephone Travel Prooram Services Victims of Crime Act Texas CASA $ 37,952 $ 38,305 6,651 6,713 2,904 2,931 2,049 2,068 964 973 4,367 4,408 460 464 234 236 4,459 4,500 1, 887 1, 904 8,228 8,304 $ 70,155 $ 70,806 Suooortino Services Management & General Fundraising $ 8,677 $ 1,839 1, 521 322 664 141 457 - 1, 665 - 215 - 3,650 - 862 - 975 - 103 - 52 - 995 - 421 - 1, 837 - $ 22,094 $ 2,302 Total $ 86,773 15,207 6,640 4, 574 1,665 2,152 3, 650 862 9, 750 1,027 522 9, 954 4,212 18, 369 $ 165,357 See independent auditors' report and accompanying notes to the financial statements. -7- HILL COUNTRY CASH STATEMENT OF CASH FLOWS For the Years Ended June 30, 2008 2007 Cash flows from operating activities: Change in net assets $ 34,175 $ (2,713) Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities: Depreciation 1,950 1,665 Non-cash contributions - (1,781) (Increase) decrease in current asset items: Grant receivables (5,309) 1,802 Promises to give (26,500) 34,313 Increase (decrease) in current liability items: Payroll taxes payable 152 305 Net cash provided (used) by operating activities 4,468 33,591 Cash flows from investing activities: Purchase of property and equipment (4,048) - Sale of property and equipment _ _ Net cash provided (used) by investing activities (4,048) - Net increase (decrease) in cash and cash equivalents 420 33,591 Cash and cash equivalents at beginning of year 78,668 45,077 Cash and cash equivalents at end of year $ 79,088 $ 78,668 See independent auditors' report and accompanying notes to financial statements. -8- HILL COUNTRY CASA NOTES TO FINANCIAL STATEMENTS June 30, 2008 and 2007 Note 1 -Nature of Activities Hill Country CASA is anon-profit organization which provides trained, court-appointed volunteers to serve as advocates for children who come before the courts as victims of abuse and neglect in Kerr, Bandera, Gillespie and Kendall counties. These community volunteers work to facilitate necessary services and timely, safe, permanent homes for the children they serve. Funding for these services is from government grants, United Way and foundation grants. Note 2 - Summary of Significant Accounting Policies Basis of Accounting -The financial statements of Hill Country CASA have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables and other liabilities. Basis of Presentation -Under SFAS No. 117, Hill Country CASA 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 The net assets of Hill Country CASA consist of the following: Unrestricted Net Assets -represents the part of net assets that is neither permanently restricted nor temporarily restricted by donor-imposed stipulations. Temporarily Restricted Net Assets -the part of the net assets resulting from contributions and other inflows of assets whose use is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the organization pursuant to those stipulations. Contributions and Restrictions -Hill Country CASA accounts for contributions in accordance with the recommendations of the Financial Accounting Standards Board in SFAS No. 116, Accounting for Contributions Received and Contributions Made. In accordance with SFAS No. 116, contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or nature of any donor restrictions. When restrictions are satisfied, revenues are reclassified and reported as net assets released from restrictions. If the restriction is satisfied in the same period the contribution is received, the contribution is reported as unrestricted. 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. All unconditional promises to give are receivable within one year. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promises become unconditional. Grant Receivables -Grant receivables consists of amounts due for amounts expended under state grants. Management believes that these amounts are fully collectible; therefore, no allowances for doubtful accounts have been provided. Management is not aware of any significant concentrations -9- HILL COUNTRY CASA NOTES TO FINANCIAL STATEMENTS June 30, 2008 and 2007 Note 2 - Summary of Sianificant Accountina POliriPc (continued) Grant Rece_ i_ 'vables (continued) - of credit or market risks related to receivables or other financial instruments reported in these financial statements. Contributed Services -Unpaid volunteers have made contributions of their time to Hill Country CASA during the years ended June 30, 2008 and 2007. The value of these contributed services did not meet the requirements for recognition under SFAS No. 116 and therefore have not been recorded. Estimates -The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Property and Equipment -Property and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation. Gifts of long-lived assets without restrictions are recorded as unrestricted support. Depreciation is computed using the straight-line method with fives of five to ten years. Depreciation expense for the years ended June 30, 2008 and 2007 totaled $1,950 and $1,665, respectively. Federal Income Tax - Hilf Country CASA is classified as anon-profit corporation and is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code as an organization other than a private foundation. Expense Allocation -The costs of providing various programs and other activities have been summarized on a functional basis in the Statements of Activities and in the Statements of Functional Expenses. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Cash and Cash Equivalents -For purposes of the Statements of Cash Flows, Hill Country CASA considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents. Note 3 -Property and Equipment The following is a summary of property and equipment as of June 30, 2008 and 2007: Equipment 2_ 0_ 08 2_ 007 Less accumulated depreciation $ 21,162 $ 17,113 ~-~~) $ ) Maintenance and repairs, as well as minor betterments, are charged to expense as incurred. Major betterments are capitalized. The cost and related accumulated depreciation for property disposals are removed from the accounts and any gains or losses are included in income. -10- HILL COUNTRY CASA NOTES TO FINANCIAL STATEMENTS June 30, 2008 and 2007 Note 4 -Leases Effective August 31, 2008, Hill Country CASA terminated their building tease and entered into a new lease for a building for larger program and office facility space until August 31, 2011. Rental expense for the terminated lease consisted of $10,500 and $9,750 for the years ended June 30, 2008 and 2007. Future minimum lease payments under the new lease in excess of one year as of September 1, 2008 are: Years ended June 30: 2009 $ 15,600 2010 16,380 2011 17.196 $ 49.176 Note 5 -Promises to Give Promises to give as of June 30, 2008 and 2007 consist of the following: Kronkosky Foundation United Way Note 6 -Restrictions on Net Assets 2008 2007 $ 25,000 $ - 14, 500 13.000 $ 39.500 $ 13.000 Temporarily restricted net assets as of June 30, 2008 and 2007 consist of the following: 2008 2007 United Way Award for the 2007-2008 Campaign $ - $ 9,000 United Way Award for the 2008-2009 Campaign 10,000 - Kronkosky Foundation -for year ended June 30, 2009 25.000 - $ 35.000 $ 9.QQQQ Note 7 -Retirement Plan Beginning the year ended June 30, 2007, the Organization provides its employees with a 403(b) employer contributory plan which covers all employees who work twenty hours or more per week. The Organization will provide a discretionary employer contribution to all employees participating in the plan and employed at least six months with the Organization. Employer contributions to the Plan were $2,850 and $1,853 for the years ended June 30, 2008 and 2007. -11- SUPPLEMENTARY INFORMATION HILL COUNTRY CASA SUPPLEMENTARY INFORMATION For the year ended June 30, 2008 SCHEDULE OF TEXAS CASA, INC. GRANT AWARDS Accrued Accrued Grantor/ Program or Revenue at Revenue at Program Title CFDA No. Award Amount 7/1/07 Receipts Disbursements 6/30/08 2007 Program CVC-0733-MC $ 5,992 $ 271 $ 796 $ 525 $ - 2007 Program CVC-07-33 $ 32,041 $ 2,443 $ 7,204 $ 4,761 $ - 2008 Program CVC-08-33 $ 38,563 $ - $ 26,004 $ 32,284 $ 6,280 SCHEDULE OF VOCA GRANT AWARDS Accrued Accrued Grantor/ Program or Revenue at Revenue at Program Title CFDA No. Award Amount 7/1/07 Receipts Disbursements 6/30/08 2007 Program V14028-08 $ 37,682 $ 2,062 $ 2,062 $ - $ - 2008 Program V14028-09 $ 39,743 $ - $ 37,567 $ 39,743 $ 2,176 SCHEDULE OF OVAG GRANT AWARDS Accrued Accrued Grantor/ Program or Revenue at Revenue at Program Title CFDA No. Award Amount 7/1/07 Receipts Disbursements 6/30/08 2008 Program OVAL-08-16 $ 21,166 $ - $ 14,251 $ 21,166 $ 6,915 -13- HILL COUNTRY CASA SUPPLEMENTARY INFORMATION For the year ended June 30, 2008 1 J 7 J 1 SCHEDULE OF FINDINGS OR EXCEPTIONS Were there any findings or exceptions? No -14-