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CHILD ADVOCATES SAN ANTONIO

Audited Financial Statements and

Single Audit Reports

June 30, 2019

AKIN, DOHERTY, KLEIN & FEUGE, P.C. Certified Public Accountants

CHJLD ADVOCATES SAN ANTONIO Table of Contents June 30, 2019

Audited Financial Statements

Independent Auditor's Report Statements of Financial Position Statements of Activities Statements of Functional Expenses Statements of Cash Flows Notes to Audited Financial Statements

Supplemental Information

Schedule ofTexas CASA Awards Schedule of Victims of Crime Act (VOCA) Awards

Single Audit Reports

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

Report on Compliance for Each Major Program and Report on Internal Control over Compliance Required by Uniform Guidance and the Texas Uniform Grant Management Standards

Schedule of Expenditures ofFederal and State Awards

Notes to Schedule of Expenditures ofFederal and State Awards

Schedule of Findings and Questioned Costs

Page

3 4 6 8 9

19 20

21

23

25

26

27

AIF Member of the AICPA and TXCPA

To the Board of Directors Child Advocates San Antonio San Antonio, Texas

Report on the Financial Statements

AKINOOHER'IYKLEIN &FEUGE, P.C.

INDEPENDENT AUDJTOR'S REPORT

Registered with Publ ic Company Accounting Oversight Board

We have aud ited the accompanying financial statements of Child Advocates San Antonio, which comprise the statements of financial position as of June 30, 2019 and 2018 , and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the 11-flancial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; thi s includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from materi a l misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statemen ts based on our audits. We conducted our audits in accordance with U .S. generally accepted auditing standa rds and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Genera l of the United States. Those standards require that we plan and perform the audi t to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain aud it evidence about the amounts and disclosures in the financial statements. The procedures se lected depend on the auditor 's judgment, including the assessment of the risk of material misstatement of the financial 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 financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity ' s internal control. Accordingly, we express no such opinion. An audit a lso includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overa ll 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.

616 East Blanco, Suite 300e Boerne, Texas 78006 Phone: 830 815-1100 Fax: 830 249-3714

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MAIN OFFICE www.adkf.com

8610 North New Braunfels, Suite 101 San Antonio, Texas 78217

Phone: 210 829-1300 Fax: 210 829-4080

672 Ridge Hill Drive, Suite B New Braunfels, Texas 78130

Phone: 830 387-4441 Fax: 830 625-3456

Opinion

In our opinion, the financial statements referred to above present fairly , in all material respects, the financial position of Child Advocates San Antonio as of June 30, 2019 and 2018, and the changes in its net assets and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of Texas CASA awards and VOCA awards, as required by the Texas Attorney General, and the schedule of expenditures of federal and state awards for the year ended June 30, 2019, as required by Texas Uniform Grant Management Standards and Title 2 U S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements f or Federal Awards (Uniform Guidance) , are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with U.S. generally accepted auditing standards. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standard, we have also issued our reports dated October 17, 2019 on our consideration of Child Advocates San Antonio's internal control over financial reporting and on our tests ofits compliance with certain provisions oflaws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 Child Advocates San Antonio 's internal control over financial reporting and compliance.

Akin, Doherty, Klein & Feuge, P.C. San Antonio, Texas October 17, 2019

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CHILD ADVOCATES SAN ANTONIO Statements of Financial Position June 30, 2019 and 2018

ASSETS

Current Assets: Cash and cash equivalents Certificates of deposit Grants receivable Pledges receivable, current portion Other receivable Prepaid expenses

Total current assets

Other Assets: Pledges receivable-net, long-term portion Deposits Furniture and equipment, net Investments:

Board designated endowment - unrestricted Term endowment - donor restricted

Total other assets

Total Assets

LIABILITIES AND NET ASSETS

Current Liabi lities: Accounts payable Accrued vacation Deferred revenue

Total current liabi lities

Net Assets: Without donor restrictions:

Undesignated Board designated

Total without donor restrictions With donor restrictions

Total net assets

Total Liabilities and Net Assets

See notes to audited financial statements.

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$

$

$

2019

996,369 250,085 280,607

88,599

64,164 1,679,824

34,705 5,689

129,109

90,356 497,272 757,131

2,436,955

40,094 60,960

10 1,054

1,624,969 90,356

1,715,325 620,576

2,335,901

$ 2,436.955

$

$

$

2018

505,076 555,561 312,560

68,341 6,3 10

53,701 1,501,549

50,635 5,689

98,330

169,405 483,289 807,348

2,308,897

9,202 52,184 20,000 81 ,386

1,455,842 169,405

1,625,247 602,264

2,227,511

$ 2,308,897

CHILD ADVOCATES SAN ANTONIO Statement of Activities Year Ended June 30, 2019

Without Donor With Donor Restrictions Restrictions Total

Support and Revenues Grant and Contribution Revenues:

United Way $ 184,199 $ $ 184,199 Foundations and grants 379,673 379,673 Capital campaign 151 ,363 30,000 181,363 General donations 363,798 33,195 396,993 Government assistance and grants:

VOCA 1,011 ,194 1,01 1,194 Texas CASA 620,469 620,469 Texas Office of the Attorney General 40,428 40,428 City of San Antonio 11 ,247 11 ,247 Bexar County 11 ,288 11,288

Special event, net of expenses of $62,960 128,287 128,287 2,901,946 63,195 2,965,141

Other Revenues : In-kind contributions 1,255,752 I,255,752 Investment earnings, net 4,901 13,983 18,884 Interest 14,024 14,024 Other income 12,471 12,471

Total support and revenues 4, 189,094 77,178 4,266,272

Expenses Program services 3,406,554 3,406,554 Supporting services 362,682 362,682 Fundraising 388,646 388,646

Total expenses 4, 157,882 4,157,882

Change in Net Assets 31,212 77,178 108,390

Net assets released from restrictions 58,866 (58,866) Net assets at beginning of year 1,625,247 602,264 2,227,511

Net Assets at Year End $ 1,715 ,325 $ 620,576 $ 2,335,901

See notes to auditedfina11cial statements.

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CHILD ADVOCATES SAN ANTONIO Statement of Activities Year Ended June 30, 2018

Without Donor With Donor Restrictions Restrictions Total

Support and Revenues Grant and Contribution Revenues:

United Way $ 168,378 $ $ 168,378 Foundations and grants 569,893 569,893 General donations 396,544 396,544 Government assistance and grants:

VOCA 831 ,511 831 ,511 Texas CASA 740,646 740,646 Texas Office of the Attorney General 43 ,026 43,026 City of San Antonio 50,680 50,680 Bexar County 6,212 6,212

Special event, net of expenses of $40,092 162,278 162,278 2,969,168 2,969,168

Other Revenues: In-kind contributions 1,566,063 1,566,063 Investment earnings, net 18,748 53 ,484 72,232 Interest 7,168 7,168 Other income 4,133 4,133

Total support and revenues 4,565,280 53 ,484 4,618,764

Expenses Program services 3,742,6 12 3,742,612 Supporting services 350,097 350,097 Fundraising 384,564 384,564

Total expenses 4,477,273 4,477,273

Change in Net Assets 88,007 53 ,484 141 ,491

Net assets released from restrictions 183,983 (183 ,983) Net assets at beginning of year 1,353,257 732,763 2,086,020

Net Assets at Year End $ 1,625,247 $ 602,264 $ 2,227,511

See notes to audited.financial statements.

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CHILD ADVOCATES SAN ANTONIO Statement of Functional Expenses Year Ended June 30, 2019

Program Supporting Services Services Fundraising Totals

Salaries, taxes and employee benefits $ 1,728,575 $ 252,039 $ 253 ,034 $ 2,233 ,648 Advertising 24,121 2,757 39,768 66,646 Bank charges 198 6,398 6,596 Board expenses 1,789 1,789 Conference and training 15,142 814 326 16,282 Dues 7,997 533 356 8,886 Employee training 8,562 1,249 1,253 11 ,064 Technology support 31 ,013 4,522 4,540 40,075 Insurance 13,154 1,918 1,925 16,997 Occupancy 133,461 19,460 19,536 172,457 Postage and delivery 2,286 333 335 2,954 Printing 6,756 985 4,644 12,385 Professional fees 31 ,952 63 ,903 31 ,951 127,806 Fundraising expense 12,349 12,349 Supplies 9,074 1,323 1,329 11 ,726 Telephone 24,089 3,512 3,526 31 ,127 Travel and mileage 23 ,230 3,387 3,400 30,017 Volunteer expense 44,416 44,416 Direct client support 19,825 19,825 Miscellaneous 196 30 30 256 Depreciation 26,953 3,930 3,946 34,829

Total direct expenses 2,150,802 362,682 388,646 2,902,130

In-kind contributions 1,255,752 1,255,752

Total expenses $ 3,406,554 $ 362,682 $ 388,646 $ 4,157,882

Special events costs not included above: Food, beverages, and facilities rental $ 45 ,573 Other direct costs 17,387

$ 62,960

See notes to audited jinancial statements.

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CHILD ADVOCATES SAN ANTONIO Statement of Functional Expenses Year Ended June 30, 2018

Program Supporting Services Services Fundraising Totals

Salaries, taxes and employee benefits $ 1,755,610 $ 215,359 $ 300,913 $ 2,271 ",882 Advertising 54,951 6,280 1,570 62,801 Bank charges 6,877 6,877 Board expenses 2,233 2,233 Conference and training 34,176 1,837 735 36,748 Discretionary funds 2,391 293 410 3,094 Dues 7,085 478 329 7,892 Employee training 6,995 858 1,199 9,052 Technology support 36,068 4,424 6,182 46,674 Insurance 14,921 1,831 2,557 19,309 Occupancy 103,888 12,744 17,806 134,438 Postage and delivery 3,645 447 625 4,717 Printing 11 ,183 1,372 1,917 14,472 Professional fees 11,332 22,664 11 ,332 45,328 Fundraising expense 20,550 20,550 Supplies 15,055 1,847 2,580 19,482 Telephone 14,477 1,776 2,481 18,734 Travel and mileage 19,336 2,372 3,314 25,022 Volunteer expense 51 ,356 51,356 Direct client support 15,483 . 15,483

Bad debt 71 ,001 71 ,001

Miscellaneous 549 67 94 710 Depreciation 18,048 2,214 3,093 23,355

Total direct expenses 2,176,549 350,097 384,564 2,911,210

In-kind contributions 1,566,063 1,566,063

Total expenses $ 3,742,612 $ 350,097 $ 384,564 $ 4,477,273

Special events costs not included above: Food, beverages, and facilities rental $ 28,989 Other direct costs I 1,103

$ 40,092


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CHILD ADVOCATES SAN ANTONIO Statements of Cash Flows Years Ended June 30, 2019 and 2018

Operating Activities Change in net assets Adjustments to reconcile change in net assets

to net cash provided (used) by operating activities: Depreciation Net (gain) on investments

Change in operating assets and liabilities: Grants receivable Pledges receivable Other receivable Prepaid expense and other assets Accounts payable and accrued expense Deferred revenue

Net cash provided by operating activities

Investing Activities Purchase of furniture and equipment Net investment activity

Net cash provided (used) by investing activities

Change in cash and cash equivalents Cash and cash equivalents at beginning of year

Cash and Cash Equiva lents at End of Yea r

Supplemental Disclosures Cash paid for interest Cash paid for income taxes


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2019 2018

$ 108,390 $ 141,491

34,829 23,355 (13,262) (69,288)

31,953 (100,182) (4 ,328) 137,884 6,3'10 (6,310)

(10,463) (59,390) 39,668 5,930

{20,0002 20,000 173,097 93,490

(65,608) (68,499) 383,804 {56,6942 318,196 (125,1932

491 ,293 (31,703) 505,076 536,779

$ 996,369 $ 505,076

$ $

CHILD ADVOCATES SAN ANTONIO Notes to Audited Financial Statements June 30, 2019 and 2018

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization: Child Advocates San Antonio (CASA or the Agency) is a not-for-profit, Texas Corporation established in March 1988. The Agency provides court-appointed volunteers to investigate, advocate for services and make recommendations for safe and permanent placement of assigned children in state protective custody in San Antonio and Bexar County, Texas. The Agency served 1,810 children in fiscal year 2019 and I, 769 children in fiscal year 2018.

Basis of Presentation: The accompanying financial statements have been prepared on the accrual basis ofaccounting in accordance with U.S. generally accepted accounting principles. Net assets, support and revenues, and expenses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of CASA and changes therein are classified and reported as follows:

Without Donor Restrictions: Net assets without donor restrictions are available for use in general operations and not subject to donor restrictions. Grants and contributions gifted for recurring programs are generally not considered "restricted" under GAAP, though for internal reporting the Agency tracks such grants and contributions to verify the disbursement matches the intent. Assets restricted solely through the action of the Board are reported as net assets without donor restrictions, board designated.

With Donor Restrictions: Net assets with donor restrictions are subject to donor-imposed restrictions that are more restrictive than CASA 's mission and purpose. Some donor imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Donor imposed restrictions are released when the restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled , or both. Other donor imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity.

Contributions: Contributions and grants are reported as without or with donor restriction, depending on the existence and/or nature of any restrictions. Support that is restricted by the donor is reported as an increase in net assets without donor restriction 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 net assets with donor restriction depending on the nature of the restriction. When a restriction expires, the net assets are reclassified to net assets without donor restriction. Non-cash contributions are recorded at their fair market value at the date of contribution.

Gifts of equipment are reported as without donor restrictions support unless explicit donor stipulations specify how the donated assets must be used. Gifts oflong-lived assets with explicit restrictions that specify how the assets are to be used, and gifts of cash or other assets that must be used to acquire long-lived assets, are reported as with donor restrictions support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long-lived assets are placed in service.

Contributions - United Way: The Agency typically receives an allocated grant on an annual basis from the United Way, covering the Agency's year July I to the following June 30. The grant confirmation is generally received from the United Way near the Agency ' s year end or shortly thereafter, and is recognized as revenue in the year to which the grant applies.

Revenue Recognition: Revenue is recognized when earned. For contract periods which differ from the fiscal year of CASA, the financial statements include those portions of each grant accrued (earned) during CASA's fiscal year. Contributions are recognized when cash, securities or other assets, an unconditional promise to give, or notification of a beneficial interest is received. Conditional promises to give are not recognized until the condition on which they depend have been substantially met.

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NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Cash and Cash Equivalents: Cash and cash equivalents consists of cash on hand, demand deposits held by financial institutions and any equivalent securities with a maturity of three months or less.

Certificate of Deposits: Certificates of deposit, having original maturities greater than three months, are stated at fair market value.

Grants Receivable: Generally, the grants awarded to the Agency are recorded on a reimbursement basis; that is when quali fy ing expenses are incurred by the Agency, both a receivable from the grantor and revenue are recorded.

Pledges Receivable: Pledges receivable are recognized when the donor makes a promise to give, generally in writing, to the Agency that is, in substance, unconditional and are reported net of an allowance for doubtful accounts.

Endowment Investments: Investments in equity securities with readily determinable fair market value and all debt securities are reported at their fair market value. Board designated endowments are considered non-current assets since such investments are not expected to be used in operations during the next year. Term endowments are donor restricted and are non-current assets under their stipulated terms. Generally, endowment investments with donorimposed restrictions are classified with donor restriction and Board designated endowment investments are classified as without donor restriction. Investment income (realized and unrealized) is reported net of investment expense in the statement of activities.

Furniture and Equipment: Furniture and equipment is valued at historical cost or estimated fair value at the date of donation. Expenditures for betterments that materially extend the useful life of an asset are capitalized. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets, which is generally three to ten years.

Special Events: Costs associated with special events are netted against the related revenue and totaled approximately $63 ,000 in 2019 and $40,000 in 2018.

Advertising: Advertising costs are expensed as incurred.

Employee Benefit Plan: The Agency has a 403(b) plan that covers substantially all employees age I 8 and over. Employees may contribute a percentage of their annual compensation up to the limit allowed by the IRS. The Agency matches a portion of employee's contribution. The Agency contributions to the Plan were approximately $16,000 in 2019 and $20,000 in 2018.

Income Taxes : CASA is a tax-exempt organization under Internal Revenue Service Code Section 50l(c)(3) therefore, no provision for income taxes has been provided in these financial statements. In addition, the Agency is not a "private foundation" within the meaning of Section 509(a) of the Internal Revenue Code. Donors of money and/or property are entitled to the maximum charitable contribution deduction allowed by law. The Agency is not subject to Texas margin tax. Management is not aware of any tax positions that would have a significant impact on its financial position. Its federal tax returns for the last four years remain subject to examination.

Subsequent Events: Subsequent events have been evaluated by management through the date of the independent auditor ' s report. Material subsequent events, if any, are disclosed in a separate footnote to these financial statements.


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Functional Allocation of Expenses: The costs of providing the services and other activities of the Agency have been summarized on a functional basis in the statement of functional expense. Accordingly, certain costs have been allocated among the programs and supporting services benefited. These expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated include salaries and benefits which are allocated on the basis of estimates of time and effort, as well as depreciation, office and occupancy, which are allocated on squarefootage or other reasonable basis.

Use of Estimates: The preparation of financial statements in conformity with U. S. 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 financial statements, and the reported amounts ofrevenues and expenses during the reporting year. Actual results could differ from those estimates.

Concentrations of Credit Risk: Financial instruments that potentially subject the Agency to concentrations of credit risk consist principally of cash and investments. The Agency places its cash and investments (including restricted assets) with financial institutions, and limits the amount of credit exposure, although it may from time to time have cash balances or investments in excess of that insured by the FDIC and SIPC. The Agency periodically assesses the financial condition of the institutions and believes the risk of loss is minimal. Investments are diversified with common stock, corporate bonds, government securities and mutual funds , so risk of loss is reduced but not eliminated.

New Accounting Pronouncements: In May 20 14, the Financial Accounting Standards Board (FASB) issued a new accounting pronouncement regarding revenue recognition effective for reporting periods beginning after December I 5, 2018. Management is currently evaluating the effect this pronouncement will have on the financial statements and related disclosures.

In February 2016, the F ASB issued a new accounting pronouncement regarding lease accounting for reporting periods beginning after December 15, 2019. Generally, leases with terms in excess of 12 months will be recognized on the balance sheet as an asset (right to use leased asset) and a liability (lease liability). The impact to operations is expected to be minimal. Management is currently evaluating the effect this pronouncement will have on the financial statements and related disclosures.

In June 2018, the F ASB issued a new accounting pronouncement clarifying the scope and guidance for contributions received, effective for periods beginning after December 15, 2018 with early adoption permitted. The update assists organizations in l) evaluating whether transactions should be accounted for as contributions or exchange transactions and 2) determine whether contributions are conditional. Management does not expect the new standard to have a significant impact to its financial position, results of operations and related disclosures.

Reclassifications: Certain reclassifications of amounts previously reported have been made to the accompanying consolidated financial statements to maintain consistency between periods presented. The reclassifications had no effect on the previously reported change in net assets.

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NOTE B - GRANTS RECEIVABLE

Grants receivable consist of the following at June 30:

Texas CASA VOCA Bexar County Texas Office of the Attorney General Other City of San Antonio

NOTE C- PLEDGES RECEIVABLE

Pledges receivable consist of the following at June 30:

Receivable in less than one year Receivable in one to five years

Total pledges receivable Less allowance for doubtful pledges

Pledges receivable, net of allowance

$

$

$

$

2019

105,186 158,637

7,500 7,284 2,000

280,607

2019

88,599 70,562

159,161 (35 ,857)

123,304

$

$

$

$

2018

117,025 181 ,697

6,2 11 3,666

3,961

312,560

2018

68,341 93,900

162,241 (43 ,265)

118,976

No discount to present value has been recorded on the pledges due to the insignificance of the discount involved.

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NOTE D - FURNITURE AND EQUIPMENT

Furniture and equipment consists of the following at June 30:

Leasehold improvements Furniture and fixtures Office equipment Computer hardware and software Construction in progress

Total furniture and equipment Less accumulated depreciation

Furniture and equipment, net

NOTE E - ENDOWMENT INVESTMENTS

$

$

2019

53,460 100,830 48,016

208,958 34,060

445,324 (316,215)

129,109

$

$

2018

45,986 100,001 47,616

186,l 13

379,716 (281 ,386)

98,330

Interpretation of Relevant Law: The Board of Directors of the Agency has interpreted the State of Texas Prudent Management oflnstitutional Funds Act (SPMIF A) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Agency classifies as with donor restriction: (a) the original value of gifts to the endowment, (b) the original value of subsequent gifts to the endowment, and (c) accumulations to the endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund . The remaining portion of the with donor restriction endowment fund remains classified as with donor restriction until those amounts are appropriated for expenditure by the Agency. The following factors, among others, are considered in making a determination to appropriate or accumulate donor-restricted endowment funds:

I) The duration and preservation of the fund 2) The purposes of the Agency and the donor-restricted endowment fund 3) General economic conditions 4) The possible effect of inflation and deflation 5) The expected total return from income and the appreciation of investments 6) Other resources of the Agency 7) The investment policies of the Agency

Funds with Deficiencies: From time-to-time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or SPMIF A requires the Agency to retain as a fund of perpetual duration. There were no such deficiencies as of June 30, 2019 and 2018. The endowment has an original investment of $200,840 at June 30, 2019 and 2018 with accumulated earnings of $296,432 and $282,449, respectively.

Return Objectives and Risk Parameters: Endowment assets are invested in a manner that is intended to produce results that equal or exceed the price and yield results of the S&P 500 index while assuming a moderate level of investment risk. The Agency expects its endowment funds , over time, to provide an average rate of return of approximately 5%. Actual returns in any given year may vary from this amount.

Strategies Employed for Achieving Objectives: To satisfy its long-term rate-of-return objectives, the Agency has invested the endowment funds in investments of various risk levels. The Agency maintains a diversified portfolio in an effort to minimize the overall risk of the investments.

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CHILD ADVOCATES SAN ANTONJO Notes to Audited Financial Statements June 30, 2019 and 2018

NOTE E - ENDOWMENT INVESTMENTS - continued

Spending Policy and How the Investment Objectives Relate to Spending Policy: On an annual basis, earnings from the donor restricted endowment investments are reported as interest income and may be used by the Agency to help fund operating expenses "for extraordinary needs for which Child Advocates San Antonio cannot identify another funding source." As gifted, the endowment corpus was restricted through June 30, 2007. Beginning July 1, 2007 and each year thereafter, the Board of Directors may elect to use up to 10% of the corpus annually. The corpus remains with donor restriction until the Board of Directors elects to uti lize the endowment. The Board ofDirectors elected to use $-0- of the donor restricted endowment funds in the years ending June 30, 2019 and 2018 therefore the corpus balance is reported as a term endowment in these financial statements.

The Board designated endowment funds ( without donor restriction) are intended for long term investment and may be released by a majority vote of the Board ofDirectors subject to prior approval of the Finance Committee. The Board of Directors elected to use $83 ,950 of the Board designated endowment funds in the year ending June 30, 2019 and $-0- in the year ending June 30, 2018.

A roll forward of earnings and losses for endowment investments is as follows for the years ended June 30, 2018 and 2019:

Endowment investments at June 30, 2017

Interest and dividends Net realized gain on sale Net unrealized gain Contributions Appropriations


Interest and dividends Net realized gain on sale Net unrealized gain Contributions Appropriations


Without Donor Restrictions

$ 150,657

764 12,186 5,798

$ 169,405

1,459 8,878

(5,436)

(83 ,950)

$ 90,356

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With Donor Restrictions Total

$ 429,805 $ 580,462

2,180 2,944 34,765 46,951 16,539 22,337

$ 483 ,289 $ 652,694

4, 163 5,622 25,328 34,206

(15,508) (20,944)

(83 ,950)

$ 497,272 $ 587,628


NOTE F - NET ASSETS WITH DONOR RESTRICTIONS

Net assets with donor restrictions consisted of the following at June 30:

Donor/Purpose

Term endowment Pledge receivable, net

Restriction

See Note E Time

NOTE G - DONATED GOODS AND SERVICES

20 19 2018

$ 497,272 $ 483,289 123,304 118,975

$ 620,576 $ 602,264

Donated goods, services and volunteer time are reported as "in-kind contributions" by CASA. The value of donated services and volunteer hours is based on an amount determined to be appropriate ifindividuals were employed by the Agency to perform such services and is recorded as in-kind contributions revenue and expense in the period the services are rendered. The value of contributed services is as follows:

Year Ended June 30, 2019:

Volunteer hours, at $20/hour Volunteer mileage, at $.58/mile Contributed goods

Total in-kind contributions

Year Ended June 30, 2018:

Volunteer hours, at $20/hour Volunteer mileage, at $.545/mile Contributed goods

Total in-kind contributions

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Hrs/Miles

43 ,646 402,307

55,629 558,570

Amounts

$ 872,926 233 ,338 149,488

$ 1,255 ,752

$1,112,580 304,421 149,062

$ 1,566,063

CHILD ADVOCATES SAN ANTON JO Notes to Audited Financial Statements June 30, 2019 and 2018

NOTE H - LEASE OBLlGATIONS

The Agency rents office space for their headquarters under a lease agreement effective through September 30, 2019. In the year ending June 30, 2018, the Agency entered a second lease for another location through December 31 , 2022, however the Agency has a termination option at 38 months. In the year ending June 30, 2019, the Agency entered a new lease to move operations as the lease for headquarters is coming to an end. The new lease is for three years from the commencement date, which is scheduled for September 9, 2019. Rental expense amounted to $145 ,236 for the year ended June 30, 2019 and $97,030 for the year ended June 30, 2018 .

Future minimum lease payments are as follows:

Year Ending June 30:

2020 2021 2022 2023

NOTE I-FAIR VALUE MEASUREMENTS

$ 227,587 212,582 180,000 30,000

In accordance with U.S. generally accepted accounting principles, the Agency utilizes a fair value hierarchy that prioritizes the inputs for the 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 I) and the lowest priority to unobservable inputs (level 3). The three levels of the fair value hierarchy are as follows :

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Agency has the ability to access.

Level 2: Inputs to the valuation methodology include: • quoted prices for similar assets or liabilities in active markets • quoted prices for identical or simi lar assets or liabilities in inactive markets • inputs other than quoted prices that are observable for the asset or liabi lity • inputs that are derived principally from or corroborated by observable market data by correlation or

other means Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset or liability' s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

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CHILD ADVOCATES SAN ANTONIO Notes to Audited Fina ncia l Statements Ju ne 30, 2019 and 2018

NOTE I - FAIR VALUE MEASUREMENTS - contin ued

The following table sets forth , by level within the fair value hierarchy, the Agency ' s investments measured at fair value as follows:

Fair Value Measu rements Using Level 1 Level 2 Level3 Total

June 30, 2019

Certificates of deposit $ $ 250,085 $ $ 250,085

Cash and MMFs 44,008 44,008 Common stocks 418,568 418,568 Corporate bonds 47,890 47,890 Government securities:

Treasury securities 71 ,222 71 ,222 Federal agencies 5,940 5,940

Total investments at fair value $ 462,576 $ 375,137 $ $ 837,713

June 30, 2018

Certificates of deposit $ $ 555,561 $ $ 555,561

Cash and MMFs 56,538 56,538 Common stocks 453 ,294 453,294 Corporate bonds 46,225 46,225 Government securities :

Treasury securities 84,919 84,919 Federal agencies 11 ,718 11 ,718

Total investments at fai r value $ 509,832 $ 698,423 $ $ 1,208,255

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NOTE I - FAIR VALUE MEASUREMENTS - continued

There have been no changes in the methodologies used to determine fair value, nor transfers between levels. Following is a description of the valuation methodologies used for assets measured at fair value.

Cash and Money Market Funds (MMFs): Valued at its carrying amount due to short-term maturity of the instrument.

Common Stocks: Valued at the closing price reported on the active market on which the individual securities are traded.

Certificates of Deposit and Corporate Bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing value on yields currently available on comparable securities of issuers with similar credit ratings.

U S. Government Securities: Valued using pricing models maximizing the use of observable inputs for similar securities.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Agency believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

NOTE J - LIQUIDITY AND AVAILABILITY OF FINANCIAL RESOURCES

Accounting standards require management to discuss its financial resources that are available as of year-end which may be utilized for operations over the next 12-month period. The Agency has approximately $1.6 million of financial assets available within one year of the balance sheet date to meet cash needs for general expenditure. This consists of cash, certificates of deposit, grants receivable, and pledges receivable. The pledges receivable are subject to implied time restrictions but are expected to be collected within one year based on normal operations. The Agency also has a board designated endowment investment in the amount of approximately $90,000 at year-end, which is available in the event of an unanticipated liquidity need. The Agency has sufficient financial assets available with normal levels of operations to meet its financial obligations for general expenditures for the next year.

CIDLD ADVOCATES SAN ANTONIO Supplemental Information

June 30, 2019

CHILD ADVOCATES SAN ANTONIO Sched ule of Texas CASA Awa rds Year Ended June 30, 2019

Program or Grantor/ Award Program Title Amount

Texas CASA, Inc.: 2018 Program CVC-2018-69 $ 78 1,701 2019 Program CVC-2019-69 617,381

Total

See independent auditor's report

(Deferred) Revenue

July 1,2018

$

$

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(Deferred) Revenue at

Receipts Disbursements June 30, 2019

$ 113,879 $ I 13,879 $ 506,590 506,590

$ 620,469 $ 620,469 $

CHILD ADVOCATES SAN ANTONIO Schedu le of Victims of Crime Act (VOCA) Awards Yea r Ended June 30, 2019

Program or (Deferred)

Grantor/ Award Revenue Program Title Amount July 1, 2018

VOCA Funds: 2018 Program VOCA-2018-69 $ 1,121 ,956 $ 2019 Program V OCA-2019-69 1,021 ,337

Total $


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(Deferred) Revenue at

Receipts Disbursements June 30, 2019

$ 245,314 $ 245,314 $ 765,880 765,880

$ 1,011 ,194 $ 1,011 ,194 $

CHILD ADVOCATES SAN ANTONIO

Single Audit Reports Federal and State Awards

June 30, 2019


AKINOOHER'IYKI.EIN &FEUGE, P.C. Registered with Publ ic Company

Accounting Oversight Board

REPORT ON I TERN AL CONTROL OVER FINANCIAL REPORTING ANO ON COMPLIANCE ANO OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


Independent Auditor's Report

We have audited, in accordance with U.S. generally accepted aud iting standards and the standards applicable to financi al audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financia l statements of Child Advocates San Antonio (the Agency), which comprise the statement of financial position ofas of June 30, 2019, and the related statement of activities and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated October 17, 20 19.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Child Advocates San Antonio 's internal control over financial reporting (internal control) to determine our auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Child Advocates San Antonio's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting.

A deficiency in internal control exists when the design or operation of control does not allow management or employees, in a nonnal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financia l statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.


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8610 North New Braunfels, Suite 101 San Antonio, Texas 78217

Phone: 210 829-1300 Fax: 210 829-4080

672 Ridge Hill Drive, Suite B New Braunfels, Texas 78130

Phone: 830 387-4441 Fax: 830 625-3456

Compliance and Other Matters

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

Purpose of this Report

The purpose of this report is so lely 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 Child Advocates San Antonio's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

~~~c~~ Akin, Doh~& Feuge, P.C. San Antonio, Texas October 17, 2019

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AKINOOHER1YKLEIN &FEUGE, P.C. Registered with Public Company

Accounting Oversight Board

REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE


Independent Auditor's Report

Report on Compliance for Each Major Federal

We have audited Child Advocates San Antonio's compliance with the types of compliance requirements described in 0MB Compliance Supplement that could have a direct and material effect on each of Child Advocates San Antonio's major federal programs for the year ended June 30, 2019. Child Advocates San Antonio's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

Management's Responsibility

Management is responsible for compliance with the federal statues, regulations, and the terms and conditions of its federa l awards applicable to its federal programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of Child Advocates San Antonio'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 U.S . generally accepted auditing 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, 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 Child Advocates San Antonio'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 of Child Advocates San Antonio's compliance.


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8610 North New Braunfels , Suite 101 San Antonio, Texas 78217

Phone: 210 829-1300 Fax: 210 829-4080

672 Ridge Hill Drive , Suite B New Braunfels, Texas 78130

Phone: 830 387-4441 Fax: 830 625-3456

Opinion on Each Major Federal and State Program

In our opinion, Child Advocates San Antonio 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 June 30, 2019.

Report on Internal Control over Compliance

Management of Child Advocates San Antonio is responsible for establishing and maintaining effective control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Child Advocates San Antonio's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal and state 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 and state program and to test and report on internal control over compliance in accordance with Uniform Guidance and Texas Uniform Grant Management Standards , 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 Child Advocates San Antonio'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 or state 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 or state 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 or state 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.

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 Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

~~~Jd,~t~ Akin, Doherty~in & Feuge, P.C. San Antonio, Texas October 17, 2019

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CHILD ADVOCATES SAN ANTONIO Schedule of Expenditures of Federal and State Awards Yea r Ended June 30, 2019

Through Federal Grantor

Federal Awards

United States Department of Justice Pass-through Program from:

Texas CASA, Inc. Texas CASA, Inc.

Total Expenditures of Federal Awards

Through State Grantor

State A wards

Office of the Attorney General: Other Victim Assistance Grant Other Victim Assistance Grant

Pass-through Program from: Texas CASA, Inc. Texas CASA, Inc.

Total Expenditures of State Awards

Federal CFDA Number

16.575 16.575

See notes to Schedule of Expenditures of Federal and State Awards See independent auditor's report

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Entity Identifying Nu mber

VOCA-2018-69 VOCA-2019-69

Entity Identifying Number

1878818 1986355

CVC-20 18-69 CVC-2019-69

Federal Expenditures

$ 245,314 765,880

$ 1,011 ,194

State Expenditures

$ 5,790 34,638

113,879 506,590

$ 660,897

CHILD ADVOCATES SAN ANTONIO Notes to Schedule of Expenditures of Federal and State Awards Year Ended June 30, 2019

NOTE A - BASIS OF PRESENTATION

The accompanying Schedule of Expenditures ofFederal and State Awards (the Schedule) includes the federal and state grant activity of Child Advocates San Antonio under programs of the federal and state government for the year ended June 30, 2019. The information in the schedule is presented in accordance with the requirements of the Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements fo r Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Child Advocates San Antonio, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Child Advocates San Antonio. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

All of Child Advocates San Antonio's federal and state awards were in the form of cash assistance. The Child Advocates San Antonio had no federal or state funded insurance programs or loan guarantees during the year ended June 30, 2019.

CASA does not have an indirect cost reimbursement rate.

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Such expenditures are recognized following the cost principles contained in 2CFR Section 200.502 wherein certain types of expenditures are not allowable or are limited as to reimbursement.

NOTE C - RECONCILIATION TO AUDITED FINANCIAL STATEMENTS

Total expenditures of federal awards Total expenditures of state awards Non-federal or state program revenue

Total revenues from government agencies per Statement of Activities

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$ 1,011 ,194 660,897

22,535

$ 1,694,626

CHILD ADVOCATES SAN ANTONIO Schedule of Findings and Questioned Costs Year Ended June 30, 2019

Section I - Summary of Auditors' Results

Financial Statements

Type of report of independent auditors

Internal control over financial reporting: Material weaknesses identified Significant deficiencies identified

Noncompliance material to financial statements noted?

Federal A wards

Internal control over major programs: Material weaknesses identified Significant deficiencies identified

Type of report of independent auditors issued on compliance for major programs

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) of Uniform Guidance?

Major Federal Programs:

Name of Federal Program or Cluster: Office for Victims of Crime Texas CASA, Inc.

Dollar threshold used to distinguish between Type A and Type B programs

Auditee qualified as low-risk auditee?

Section II - Financial Statement Findings

None

Section III - Federal Award Findings

None


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Description

Unmodified

No None reported

No

No None reported

Unmodified

No

CFDA Number

16.575 16.575

$750,000

No

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