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Quigley & Miron

Audited Combined Financial Statements

and Other Information

and related entity

June 30, 2018

YWCA Silicon Valley and Related Entity Audited Combined Financial Statements and Other Information Table of Contents June 30, 2018 Page Number Independent Auditor’s Report ........................................................................................................... 1 Audited Combined Financial Statements

Combined Statement of Financial Position .................................................................................. 3

Combined Statement of Activities ................................................................................................. 4

Combined Statement of Functional Expenses.............................................................................. 5

Combined Statement of Cash Flows ............................................................................................. 6

Notes to Combined Financial Statements .................................................................................... 7

Other Information

Schedule of Expenditures of Federal Awards ............................................................................. 24

Notes to Schedule of Expenditures of Federal Awards .............................................................. 27

Schedule of Expenditures of State and Local Awards ................................................................ 28

Supplementary Information Required by the California Emergency Management Agency .................................................................................................................. 29

Combining Statement of Activities.................................................................................................. 32

Schedule of Expenditures by State Categories............................................................................. 34

Reconciliation of CDE and GAAP Expense Reporting ............................................................... 35

Schedule of Reimbursable Equipment Expenditures ................................................................. 36

Schedule of Reimbursable Administrative Costs ........................................................................ 37

Schedule of Reimbursable Start‐Up Expenses ............................................................................. 38

Audited Attendance and Fiscal Report for California State Preschool Programs .................. 39

Summary Schedule of Prior Audit Findings ................................................................................ 49

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................... 50

Independent Auditorʹs Report on Compliance for Each Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance ................ 52

Schedule of Findings and Questioned Costs ............................................................................... 54

Corrective Action Plan .................................................................................................................... 55

Quigley & Miron Certified Public Accountants

Suite 1660 Suite 700 3550 Wilshire Boulevard 1999 South Bascom Avenue Los Angeles, California 90010 Campbell, California 95008

Telephone: (213) 639-3550 Telephone: (408) 614-0100 Facsimile: (213) 639-3555 Facsimile: (213) 639-3555

Independent Auditor’s Report Board of Directors YWCA Silicon Valley and Related Entity

San Jose, California

Report on the Financial Statements

We have audited the accompanying combined financial statements of YWCA Silicon Valley (Organization), a nonprofit organization, and its related entity, YWCA Third Street, Inc., which comprise the combined statement of financial position as of June 30, 2018, and the related combined statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the combined financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America, including the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these combined financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the combined 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 combined 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 also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Board of Directors YWCA Silicon Valley and Related Entity

Page 2

Opinion

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of YWCA Silicon Valley and its related entity as of June 30, 2018, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Summarized Comparative Information

We have previously audited YWCA Silicon Valleyʹs June 30, 2017 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 11, 2017. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2017 is consistent, in all material respects, with the audited financial statements from which it has been derived.

Other Information

Our audit was conducted for the purpose of forming an opinion on the combined financial statements as a whole. The accompanying schedules of expenditures of federal, state, and local awards, and the supplementary information required by the California Emergency Management Agency (CAL EMA), and the supplementary information required by the California Department of Education (CDE) are presented for purposes of additional analysis as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), CAL EMA, and the CDE, and are also not a required part of the combined 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 combined financial statements. The information has been subjected to the auditing procedures applied in the audit of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the combined financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued reports dated November 30, 2018, on our consideration of YWCA Silicon Valleyʹs internal control over financial reporting, and our 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 our 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 in considering YWCA Silicon Valley’s internal control over financial reporting and compliance. Campbell, California November 30, 2018

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YWCA Silicon Valley and Related EntityCombined Statement of Financial PositionJune 30, 2018(with comparative totals for 2017)

2018 2017Assets

Current Assets Cash and cash equivalents 878,080$ 948,031$ Investments—Note 2 6,040,011 6,032,447 Accounts receivable, net—Note 4 80,134 135,653 Grants receivable 749,819 825,272 Advances to SBWR LP—Note 16 59,944 Pledges receivable 474,123 158,427 Prepaid expenses and other assets 95,907 190,438

Total Current Assets 8,378,018 8,290,268

Noncurrent Assets Fixed assets, net Land, buildings and equipment 5,457,445 5,442,679 Accumulated depreciation (2,940,527) (2,822,517)

Total Fixed Assets, Net 2,516,918 2,620,162

Deposits 12,179 3,120 Permanently restricted endowment cash—Note 10 92,679 92,679

Total Noncurrent Assets 104,858 95,799

Total Assets 10,999,794$ 11,006,229$

Liabilities and Net Assets

Current Liabilities Accounts payable 73,929$ 125,146$ Accrued compensation and related liabilities 322,323 290,081 Grant payable 4,437 2,958 YWCA Third Street, Inc. loan payable, current portion—Note 5 66,660 35,000

Total Current Liabilities 467,349 453,185

Noncurrent Liabilities YWCA Third Street, Inc. loan payable—Note 5 459,266 545,713

Total Noncurrent Liabilities 459,266 545,713

Total Liabilities 926,615 998,898

Net Assets Unrestricted Undesignated 1,256,461 1,813,836 Board‐designated—Note 7 596,965 596,965

Total Unrestricted 1,853,426 2,410,801

Temporarily restricted—Note 8 8,127,074 7,503,851 Permanently restricted—Note 9 92,679 92,679

Total Net Assets 10,073,179 10,007,331

Total Liabilities and Net Assets 10,999,794$ 11,006,229$

See notes to combined financial statements.

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YWCA Silicon Valley and Related EntityCombined Statement of ActivitiesYear Ended June 30, 2018(with comparative totals for 2017)

Temporarily Permanently 2018 2017Unrestricted Restricted Restricted Total Total

Public Support and Revenue Contributions Individuals 359,160$ 321,814$ $ 680,974$ 2,030,328$ Government contributions 81,566 81,566 120,729

Foundation/ corporate grants 71,859 977,701 1,049,560 664,542

In‐kind contributions 271,967 271,967 882,622 Special events, net —Note 11 621,429 621,429 475,922

Government grants 3,689,654 3,689,654 3,072,889

Total Support 5,095,635 1,299,515 6,395,150 7,247,032

Program service fees 969,602 969,602 1,064,644 Interest and dividend income 69,990 88,453 158,443 151,746

Realized and unrealized investment gain 16,990 254,209 271,199 433,415

Income from investment in SBW LLC 222 222

Ground lease income 54,787 54,787 128,738 Miscellaneous income (67,524) (67,524) 435

Total Revenue 1,044,067 342,662 1,386,729 1,778,978

Net assets released from restrictions 1,018,954 (1,018,954)

Total Public Support,Revenue, and Releases

from Restrictions 7,158,656 623,223 7,781,879 9,026,010

Expenses Program services 6,596,200 6,596,200 5,725,612 Management and general 432,252 432,252 620,985

Fund development 687,579 687,579 600,409

Total Expenses 7,716,031 7,716,031 6,947,006

Change in Net Assets (557,375) 623,223 65,848 2,079,004

Net Assets at Beginning of Year 2,410,801 7,503,851 92,679 10,007,331 7,928,327

Net Assets atEnd of Year 1,853,426$ 8,127,074$ 92,679$ 10,073,179$ 10,007,331$


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Combined Statement of Functional ExpensesYear Ended June 30, 2018(with comparative totals for 2017)

Linda

Youth Curated Haskell Domestic YWCA Total Total

Child Care Services/ Pathways Endowment Violence Housing Third Counseling Program Management Fund Supporting 2018 2017

Services TechGYRLS to Innovation Fund Services Services Street Services Services and General Development Services Totals Totals

Salaries 945,679$ 54,242$ 130,470$ 49,264$ 1,812,195$ 324,332$ $ 462,358$ 3,778,540$ 157,873$ 376,804$ 534,677$ 4,313,217$ 3,329,931$ Employee benefits 154,757 4,830 6,358 4,103 190,226 20,144 31,960 412,378 14,190 25,838 40,028 452,406 323,283Payroll taxes 75,766 4,132 11,462 3,871 143,773 25,250 36,259 300,513 10,484 30,083 40,567 341,080 264,943

Total Payroll‐RelatedExpense 1,176,202 63,204 148,290 57,238 2,146,194 369,726 530,577 4,491,431 182,547 432,725 615,272 5,106,703 3,918,157

Professional fees and contract services 44,960 2,076 179,660 6,780 121,306 13,776 53,387 33,385 455,330 117,523 160,140 277,663 732,993 742,225

Occupancy 136,217 913 844 145,451 10,108 27,721 321,254 13,230 7,819 21,049 342,303 287,134 In‐kind services and supplies 225,582 1,360 226,942 2,025 2,025 228,967 882,622 Supplies 134,282 636 1,588 58,672 6,714 4,947 206,839 4,640 1,482 6,122 212,961 114,399 Depreciation 40,368 846 480 62,790 2,510 16,278 123,272 6,776 6,575 13,351 136,623 133,695 Housing and rental assistance 8,515 127,572 136,087 136,087 89,805Telephone 22,080 607 1,361 79,111 3,597 8,372 115,128 6,577 4,860 11,437 126,565 139,777 Equipment rental and maintenance 25,208 620 583 36,654 1,886 14,804 8,649 88,404 5,045 4,108 9,153 97,557 97,678

Publicity and promotion 4,114 1,033 26,384 30,635 1,649 1,257 65,072 13,942 9,635 23,577 88,649 69,626 Local transportation 5,004 293 20,462 32,614 7,335 8,458 74,166 9,551 1,411 10,962 85,128 91,553 Investment management fees 73,499 73,499 11,282 11,282 84,781 83,403Insurance 11,395 236 187 12,393 926 4,474 29,611 36,681 2,044 38,725 68,336 58,800 Miscellaneous 10,362 286 766 230 12,689 7,968 40 2,335 34,676 8,059 22,480 30,539 65,215 51,301 Conferences, conventions, and meetings 3,720 32,802 1,138 160 2,901 40,721 13,038 549 13,587 54,308 45,214

Emergency and basic assistance 50,512 50 50,562 1,608 1,608 52,170 47,405

Dues and subscriptions 5,882 693 361 16,400 3,445 3,072 29,853 194 4,470 4,664 34,517 50,222 Minor equipment 5,555 466 8,553 3,103 3,339 21,016 5,167 948 6,115 27,131 14,885 Outside printing and artwork 209 81 107 2,473 351 195 3,416 1,952 10,748 12,700 16,116 11,737 Taxes and licenses 4,757 19 2,555 111 140 7,582 4,709 4,709 12,291 10,758 Postage 133 177 941 1 30 57 1,339 1,013 4,278 5,291 6,630 6,610

2018 Totals 1,630,448$ 71,524$ 381,735$ 137,747$ 3,086,842$ 563,276$ 68,421$ 656,207$ 6,596,200$ 432,252$ 687,579$ 1,119,831$ 7,716,031$ 6,947,006$

2017 Totals 1,230,727$ 146,206$ 224,006$ 115,253$ 2,946,651$ 278,524$ 50,609$ 733,636$ 5,725,612$ 620,985$ 600,409$ 1,221,394$ 6,947,006$


Program Services Supporting Services

YWCA Silicon Valley and Related Entity

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Combined Statement of Cash FlowsYear Ended June 30, 2018(with comparative totals for 2017)

2018 2017Cash Flows from Operating Activities Change in net assets 65,848$ 2,079,004$ Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Depreciation 136,623 133,695 In‐kind contribution of fixed assets (43,000) Loss on disposal of fixed assets 12,536 Net realized and unrealized investment gain (271,199) (433,415) Loss on sale of ʺHousing Parcelʺ 68,145 Change in operating assets and liabilities: Accounts receivable, net 55,519 (106,029) Grants receivable 75,453 (296,406) Pledges receivable (315,696) (136,427) Advances to SBWR LP (59,944) Prepaid expenses 94,531 (112,269) Deposits (9,059) Accounts payable (51,217) 60,193 Accrued compensation and related liabilities 32,242 42,643 Grant payable 1,479 1,553 Deferred revenue (7,425)

Net Cash Provided by (Used in)Operating Activities (207,739) 1,225,117

Cash Flows from Investing Activities Purchases of investments (1,657,554) (2,099,569) Proceeds from sale of investments 1,921,189 1,257,084 Purchase of ʺHousing Parcelʺ (2,939,971) Proceeds from sale of ʺHousing Parcelʺ 2,871,826 Purchases of fixed assets (2,915) (36,475)

Net Cash Provided by (Used in)Investing Activities 192,575 (878,960)

Cash Flows from Financing Activities Repayment of notes payable (54,787) (128,738)

Net Cash Used inFinancing Activities (54,787) (128,738)

Increase (Decrease) inCash and Cash Equivalents (69,951) 217,419

Cash and Cash Equivalents at Beginning of Year 948,031 730,612

Cash and Cash Equivalentsat End of Year 878,080$ 948,031$

Supplementary Disclosures Income taxes paid $ $

Interest paid $ $


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YWCA Silicon Valley and Related Entity Notes to Combined Financial Statements June 30, 2018

Note 1—Organization and Summary of Significant Accounting Policies Organization—Young Women’s Christian Association of Silicon Valley, dba YWCA Silicon Valley (YWCA‐SV), is a nonprofit California corporation formed in May 1914, whose mission is to empower women, children, and families, and to eliminate racism, hatred, and prejudice. YWCA‐SV is affiliated with the National YWCA USA organization, that assesses dues annually based on certain criteria. YWCA‐SV’s board of directors also controls a related organization, YWCA Third Street, Inc. (YTS), which was formed in 1990 to manage air rights for a parcel of land located in San Jose, California. YWCA‐SV offers a broad range of services to a diverse constituency. Through staff and volunteers, collaboration with other agencies, government grants, and with the assistance of public and private contributions, YWCA‐SV is able to provide services throughout Silicon Valley in the following major program areas: Child Care Services Department Providing families with affordable, quality child care is crucial to achieving YWCA‐SV’s mission; access to child care is central to women’s empowerment, and access to education for children is key to achieving equality. YWCA‐SV’s early learning curriculum is rooted in the agency’s values, and centers on building a community that promotes peace and justice. Serving families for more than 60 years, YWCA‐SV operates child care centers for almost 300 children each year, ranging in age from 6 weeks to 12 years. Each of YWCA‐SV’s licensed centers is staffed with enthusiastic individuals trained in cultural diversity and responsiveness. Support Services Department YWCA‐SV’s Support Services department provides an integrated continuum of crisis response and prevention services for sexual assault, domestic violence and human trafficking survivors, with 24‐hour crisis lines and crisis intervention, shelter, transitional, and supportive housing programming, counseling, advocacy, legal services, and community education. YWCA‐SV believes that gender inequality, racism, and violence are mutually compounding and fueled by untreated trauma, unconscious beliefs, and systemic inequality. The mission framework of YWCA‐SV allows for the adoption of capacity building and systems change approaches to eliminate racism and empower women, as well as provide needed crisis intervention services. To ensure systems change, YWCA‐SV provides prevention and community education to change societal and cultural norms; advocates with policy makers and influencers; and engages with community partners to ensure collective impact. The provision of a quality, integrated multi‐service offers a safe, welcoming environment where individuals and survivors can receive critical services that provide the tools to establish violence‐free relationships and safe living environments. Services include: a 24‐hour toll‐free bilingual (English/Spanish) crisis hotline and crisis intervention services; counseling and therapy; legal advocacy services; emergency shelter; rapid re‐housing services; services for children; case management; and community education and training. These vital services reduce the number of Santa Clara County women and children living in danger of domestic violence, sexual assault, and human trafficking.


Notes to Combined Financial Statements—Continued

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Note 1—Organization and Summary of Significant Accounting Policies—Continued Healing Center/Clinical Services and Training Program YWCA‐SV’s Clinical Services provide trauma‐informed therapy services for individuals, couples, and families in need of support and healing from trauma caused by domestic violence, sexual assault, child abuse, gang violence, grief and loss, and other challenges our communities experience. These services are provided at the Linda Haskell Empowerment Center in San Jose and at our satellite office in Sunnyvale. By using an income‐based sliding scale for fees, therapy services are available for all income levels. During the year ended June 30, 2018, 214 clients received 1,913 counseling sessions providing healing and hope for a better future. Our school‐based counseling program provided 2,792 sessions to 387 students in 9 schools in the San Jose School District. These services are free to students and provide immediate support/crisis management on school campuses. The ARISE Program offers free therapy services to clients in our community that feel safer receiving services in areas where they live, work, or attend school. In or first year of this program, we provided 191 clients with therapy at 3 different locations. Our diversion programs for first time individuals arrested for prostitution (VALOR) provided workshops/support groups for 44 women. Our program for men arrested for the purchase of sex (FOPP Men’s Class) provided 77 men with psychoeducation on sex trafficking and objectification of women and girls. All of these services are provided by Marriage and Family Therapist (MFT) associates and trainees from local universities. Twenty‐eight MFT associates/trainees received trauma‐informed training and high‐quality supervision as they gain hours toward licensure and continue to provide trauma‐informed, client‐driven, and empowerment‐based clinical services for our communities. TechGYRLS The purpose of TechGYRLS is to provide STEM and computer science education to girls in underserved areas, from elementary through high school. Throughout the 2017‐2018 school year, TechGYRLS engaged 81 participants in the Alum Rock Union School District, East Side Union High School District, and San Jose Unified School District who might not otherwise have had an opportunity to participate in STEM and computer science programs. Through instruction lead by San Jose State University, San Francisco State, and West Valley College students majoring in STEM fields, the girls receive facilitation focused on critical thinking, teamwork, problem‐solving, and presentation skills. Through this facilitation, participants created projects over the school year to present at the Bay Area Maker Faire. Of our 81 participants, 24 participants presented projects at the 2018 Bay Area Maker Faire. Through a partnership with Big Brothers Big Sisters of the Bay Area, 15 female students were paired with a female employee at Google and participated in mentorship twice a month during the school year. TechGYRLS hopes to spark the interest of these girls to pursue higher education and careers in STEM and computer science fields. Curated PathwaysTM to Innovation Curated PathwaysTM to Innovation is a game‐changing model driving a collect impact approach to engaging young women and underrepresented minorities in science, technology, engineering, mathematics, and computer science, in Silicon Valley and beyond. Through the use of a web‐based application, student success is guided and incentivized through gamification, analytics, and a recommendation algorithm: a “virtual coach.” Curated PathwaysTM to Innovation was piloted during



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Note 1—Organization and Summary of Significant Accounting Policies—Continued the 2017‐2018 academic year at Ocala STEAM Academy in Alum Rock Union Elementary School District and Overfelt High School in East Side Union High School District. A total of 957 students were engaged to start their personal education and career pathway through the online application. Financial Statement Presentation—The combined financial statements include the accounts of YWCA‐SV and YTS (together referred to as YWCA‐SV). Significant intercompany accounts and transactions were eliminated upon consolidation. YWCA‐SV recognizes contributions, including unconditional promises to give, as revenue in the period received. Net assets, revenues, expenses, gains and losses are classified based on the existence or absence of donor‐imposed restrictions. The net assets of YWCA‐SV and changes therein are classified and reported as follows:

Unrestricted net assets—Net assets that are not subject to donor‐imposed stipulations and that may be expendable for any purpose in performing the primary objectives of YWCA‐SV.

Temporarily restricted net assets—Net assets subject to donor‐imposed stipulations that may or will be met either by actions of YWCA‐SV and/or the passage of time. Included in temporarily restricted net assets are gifts given for a particular purpose and investment income to be used for a particular purpose. As the restrictions are satisfied, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the accompanying combined financial statements as net assets released from restrictions.

Permanently restricted net assets—Net assets for which the donor has stipulated that the principal be maintained into perpetuity. Generally, the donors of these assets permit YWCA‐SV to use all or part of the income earned on related investments for general or specific purposes.

Income Taxes—YWCA‐SV is exempt from federal income taxes under Internal Revenue Code Section 501(c)(3) and from California income taxes under Section 23701(d) of the California Bank and Corporation Tax Law, and has been determined to be an organization that is not a private foundation. Effective November 15, 2011, YTSʹs exempt organization status was revoked, however management believes the impact of this revocation on the combined financial statements is immaterial. Accounting standards require an organization to evaluate its tax positions and provide for a liability for any positions that would not be considered ‘more likely than not’ to be upheld under a tax authority examination. Management has evaluated its tax positions and has concluded that a provision for a tax liability is not necessary at June 30, 2018 or 2017. Generally, YWCA‐SV‘s information returns remain open for examination for a period of three (federal) or four (state of California) years from the date of filing. Recently Adopted Accounting Principle—In May 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015‐07 (ASU 2015‐07), Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent). The amendment removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value (NAV) per share as a practical expedient. ASU 2015‐07 has been adopted for the year ended June 30, 2018, however, the retrospective approach requires that an investment for which fair value is measured using NAV as a practical expedient be removed from the fair value hierarchy in all periods presented in the financial statements.



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Note 1—Organization and Summary of Significant Accounting Policies—Continued Cash and Cash Equivalents—For purposes of the combined statement of cash flows, YWCA‐SV considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. The carrying amounts reported in the combined statement of financial position approximate fair values because of the short maturities of these instruments. Included in cash for both years ended June 30, 2018 and 2017 is $246,965 designated by YWCA‐SV’s board of directors for Domestic Violence shelter renovations and operations. Also included in cash for both years ended June 30, 2018 and 2017 is $400,000 to be used as an operating reserve, of which $350,000 is board‐designated and $50,000 is temporarily restricted. Accounts, Grants, and Pledges Receivable—Accounts receivable are shown net of an allowance of $2,300 and $1,500, respectively, as of June 30, 2018 and 2017. Bad debts charged to operations during the years ended June 30, 2018 and 2017 totaled $3,364 and $493, respectively. Write‐off of accounts receivable totaled $2,564 and $3,881 for the years ended June 30, 2018 and 2017, respectively. The carrying amounts for grants and pledges receivable reported in the combined statement of financial position approximate fair values, as all amounts are expected to be received or paid within one year, and management has determined that no allowance for potential losses due to uncollectible grants and pledges receivable is necessary. Depreciation—Fixed assets are reported at cost or donated value and are depreciated using the straight‐line method over the estimated useful life of the asset, ranging from three to forty‐five years. YWCA‐SVʹs policy is to capitalize items greater than $1,000. At June 30, 2018 and 2017, the cost and related accumulated depreciation for fixed asset components are as follows:

2018 2017

Land and buildings 4,274,951$ 4,274,951$ Building improvements 904,937 904,937Furniture, equipment, and improvements 150,658 123,356 Vehicles 126,899 126,899 Construction in progress 12,536

5,457,445 5,442,679 Less accumulated depreciation (2,940,527) (2,822,517)

Net 2,516,918$ 2,620,162$

Depreciation expense charged to operations for the years ended June 30, 2018 and 2017 totaled $136,623

and $133,695, respectively. The California Department of Education (CDE) retains a reversionary interest in certain assets purchased with CDE funds. Title to such assets vests with YWCA‐SV only for the period of time during which YWCA‐SV has a contract with the CDE. In June 2016, YWCA‐SV purchased and capitalized curriculum software totaling $3,749 as furniture, equipment, and improvements, using CDE funds. Related depreciation expense totaled $750 for the each of the years ended June 30, 2018 and 2017, respectively.



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Note 1—Organization and Summary of Significant Accounting Policies—Continued Accrued Compensation—Full‐time employees annually accrue 80 to 160 hours of vacation, depending on length of employment, up to a maximum accrual of 200 to 280 hours. Exceptions to this policy may be granted by YWCA‐SV’s board of directors. Upon termination, employees are compensated for unused vacation hours. In addition, employees receive one day of sick leave for each month of employment, up to a maximum accrual of 120 days. Employees are not compensated for unused sick leave upon termination. Benefited part‐time employees receive the vacation and sick leave accruals on a prorated basis. Legacies and Bequests—Legacies and bequests may be received by YWCA‐SV under various wills and trust agreements. The amounts are recorded upon legal validation. Revenue Recognition, Grants Receivable and Grants Payable—YWCA‐SV receives cost reimbursement contract revenue as well as fixed rate contract revenue. Revenue is recognized when the corresponding service has been provided according to the agreement, subject to the contract limit, if any. Under fixed rate contracts, YWCA‐SV agrees to provide certain services in specified quantities at a prescribed rate per unit of service provided. Certain contracts have provisions for annual settlements to provide for recovery of costs for service capacity required to be provided, but not utilized, and for repayment of amounts billed in excess of contract limits. Estimated settlements are accrued by YWCA‐SV as a grant receivable or grant payable for contracts for which cost reports have not been finalized. The carrying amounts for grants payable reported in the combined statement of financial position approximate fair values as all amounts are expected to be received or paid within one year. Revenue from program service fees is recognized when services are provided. In‐Kind—In‐kind contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Donated professional services and supplies are reflected as contributions in the accompanying statements at their estimated fair market value at date of notification. For the years ended June 30, 2018 and 2017, in‐kind services and supplies totaled $271,967 and $882,622, respectively. Included in special event revenue and expenses for the years ended June 30, 2018 and 2017 is $22,045 and $8,930, respectively, of donated materials and services. Expenses—YWCA‐SV has in place a cost allocation plan employed to allocate indirect expenses to each program on a basis proportionate to the direct staff time or other cost driver used for each program. Advertising—YWCA‐SVʹs policy is to expense advertising costs to operations as incurred. Comparative Totals for 2017—The accompanying combined financial statements include certain prior‐year summarized comparative financial information in total, but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with YWCA‐SV’s combined audited financial statements for the year ended June 30, 2017, from which the summarized information was derived.



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Note 1—Organization and Summary of Significant Accounting Policies—Continued Reclassifications—Certain accounts in the prior year combined financial statements have been reclassified for comparative purposes to conform to the presentation in the current year combined financial statements. Reconciliation of CDE and GAAP Expense Reporting—The supplementary Combining Statement of Activities and basic financial statements present financial data in conformity with GAAP. The other supplementary financial data presented in the audit, including data in the Schedule of Expenditures by State Categories, present expenditures according to CDE reporting requirements. However, reporting differences arise because CDE contract funds must be expended during the contract period (usually one year). For example, program amounts that are capitalized and depreciated over multiple years under GAAP are expensed in the contract period under CDE requirements. To address such reporting differences, the audit report includes a Reconciliation of CDE and GAAP Expense Reporting. Note 2—Investments Investments are carried at fair value, as based on quoted market prices for these instruments. Donated investments are recorded at the estimated fair value at the donation date. Unrealized gains and losses are reported on the combined statement of activities. Marketable securities consist of the following at June 30, 2018 and 2017:

2018 2017

Equity securities 4,451,136$ 4,378,292$ Mutual funds 720,582 747,273 Corporate debt securities 258,221 255,935 Government securities 610,072 650,947

Totals 6,040,011$ 6,032,447$

Investment returns are reported gross of investment management fees totaling $4 and $6,747, respectively, for the years ended June 30, 2018 and 2017. Note 3—Fair Value Measurements In determining the fair value of assets and liabilities, YWCA‐SV utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. YWCA‐SV determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are characterized in one of the following levels:

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities accessible to YWCA‐SV at the measurement date.



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Note 3—Fair Value Measurements—Continued

Level 2—Valuations based on observable inputs (other than Level 1), such as quoted prices for similar assets at the measurement date, quoted prices in markets that are not active, or other inputs that are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement and involve management judgment.

YWCA‐SV may utilize a practical expedient for the estimation of the fair value of investments in investment companies for which the investment does not have a readily determinable fair value. The practical expedient used by YWCA‐SV to value private investments is the Net Asset Value (NAV) per share, or its equivalent. In some instances, the NAV may not equal the fair value that would be calculated under fair value accounting standards. YWCA‐SV had no assets or liabilities classified at NAV as a practical expedient during the years ended June 30, 2018 and 2017. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at June 30, 2018 and 2017.

Equity Securities: Valued at the closing price reported on the active market in which the individual securities are traded. Government Securities: 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.

Assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and 2017 consist of the following:

Fair Value Level 1 Level 2 Level 3

2018: Equity securities 4,451,136$ 4,451,136$ $ $ Mutual funds 720,582 720,582 Corporate debt securities 258,221 258,221 Government securities 610,072 610,072

Totals 6,040,011$ 5,171,718$ 868,293$ $

2017: Equity securities 4,378,292$ 4,378,292$ $ $ Mutual funds 747,273 747,273 Corporate debt securities 255,935 255,935 Government securities 650,947 650,947

Totals 6,032,447$ 5,125,565$ 906,882$ $



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Note 4—Accounts Receivable, Net The carrying amounts for accounts receivable reported in the combined statement of financial position approximate fair values as all amounts are expected to be received within one year. The following amounts are reported as receivable as of June 30, 2018 and 2017:

2018 2017

Accounts receivable: Program fees and other accounts receivable 82,434$ 137,153$ Less allowance for doubtful accounts (2,300) (1,500)

Accounts Receivable, Net 80,134$ 135,653$

Note 5—Long‐Term Debt On August 26, 1993, to facilitate its purchase of property, YTS secured a loan for $1,144,000 from the city of San Jose, bearing no interest and secured by the underlying property. In 1996, YTS assigned all rights under a ground lease to the City of San Jose, with all payments received under this lease to be remitted directly to the City of San Jose and applied against the principal balance, which is estimated to be $66,660 annually. Actual principal reductions during the years ended June 30, 2018 and 2017 were $54,787 and $128,738, respectively. The principal balance on the note was $525,926 at June 30, 2018, and $580,713 at June 30, 2017. The balance remaining on the note, if any, is due and payable in full on August 26, 2023. The future annual maturities for the notes payable, assuming an estimated $66,660 is applied each year from the ground lease, are as follows:

Year Ending June 30,

2019 66,660$ 2020 66,660 2021 66,660 2022 66,660 2023 75,000

Thereafter 184,286

Total 525,926$

Note 6—Concentrations and Contingencies At times during the years ended June 30, 2018 and 2017, YWCA‐SV maintained cash balances in excess of insured levels at various financial institutions. In addition, approximately 15% of YWCA‐SVʹs operating revenue base is derived from its largest government contracting source. YWCA‐SV’s management believes that any potential disallowance of previously funded program costs is immeasurable and immaterial.



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Note 6—Concentrations and Contingencies—Continued YWCA‐SV, during the normal course of operating its business, may be subject to various lawsuits, licensing reviews, and government audits. Management believes that losses resulting from these matters, if any, would either be covered under YWCA‐SVʹs insurance policy or are immeasurable. Management further believes the losses, if any, would not have a material effect on the financial position of YWCA‐SV. Note 7—Board‐Designated Funds During the years ended June 30, 2018 and 2017, YWCA‐SV’s board of directors designated net assets totaling $596,965, comprising a board‐designated operating reserve of $350,000 and a domestic violence shelter reserve of $246,965 designated to finance shelter renovations and operations. Note 8—Temporarily Restricted Net Assets As of June 30, 2018 and 2017, YWCA‐SVʹs temporarily restricted net assets consisted of the following:

2018 2017

Linda Haskell Empowerment fund 6,579,183$ 6,315,269$ Curated Pathways program 676,994 355,597 Support services 503,119 447,424 Counseling and clinical servcies 117,228 120,901 General programs 101,924 106,787 Fundraising 100,139 Housing 24,900 25,000 TechGYRLS after‐school enrichment 19,327 8,614 Interest on permanently restricted endowment for scholarships 4,260 4,259

Other donations restricted by use 120,000

Totals 8,127,074$ 7,503,851$

Note 9—Permanently Restricted Net Assets As of June 30, 2018 and 2017, YWCA‐SVʹs permanently restricted net assets consisted of the following:

2018 2017

Women A.H.E.A.D. Scholarship 56,467$ 56,467$ Susie Wilson Scholarship 33,760 33,760 Endowment fund 2,452 2,452

Totals 92,679$ 92,679$



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Note 10—Endowment Funds YWCA‐SVʹs endowments consist of donor‐restricted endowment funds which are classified within permanently restricted net assets and board‐designated endowment funds which are classified within unrestricted net assets. In accordance with generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor‐imposed restrictions. Interpretation of Relevant Law—The board of directorsʹ interpretation of the law that underlies YWCA‐SVʹs net asset classification of donor restricted endowment funds requires the preservation of the fair value of the original gift. As a result of this interpretation, YWCA‐SV classifies as permanently restricted net assets (i) the original value of gifts donated to the permanent endowment, (ii) the original value of subsequent gifts to the permanent endowment, and (iii) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument. Absent explicit direction from the donor regarding the classification of investment income from the permanently restricted endowments, investment income is recorded in temporarily restricted activities until appropriated for spending. Return Objects and Risk Parameters—YWCA‐SV has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Under this policy, as approved by the board of directors, the endowment assets are invested in a manner that is intended to produce results that achieve constant growth of the distribution amount and the corpus, with a target rate of 8% annual return over a five‐year time horizon. Actual returns in any given year may vary from this amount. Management is always evaluating the composition of its investment portfolio based on recommendations from an outside investment advisor. Funds are currently invested in government securities and money markets until this process is complete. Strategies Employed for Achieving Objectives—To satisfy its long‐term objectives, YWCA‐SV relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends. YWCA‐SV targets a diversified asset allocation that places more emphasis on fixed income securities than equity securities to achieve its long‐term return objectives within prudent risk constraints. Spending Policy and How Investment Objectives Relate to Spending Policy—YWCA‐SV has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by the endowment funds while seeking to maintain the purchasing power of the endowment assets. The spending policy authorizes an annual distribution equal to 5% of the market value of the portfolio as of the preceding four quarters. Management has elected not to appropriate funds during the year ended June 30, 2018 due to the re‐evaluation of its investment portfolio composition.



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Note 10—Endowment Funds—Continued Endowment net asset composition consists of the following at June 30, 2017:

Temporarily PermanentlyRestricted Restricted Totals

Donor‐restricted endowment funds 4,259$ 92,679$ 96,938$

Endowment Net Assetsat June 30, 2017 4,259$ 92,679$ 96,938$

Endowment net asset composition consists of the following at June 30, 2018:


Donor‐restricted endowment funds 4,259$ 92,679$ 96,938$


The changes in endowment net assets for the year ended June 30, 2017 are as follows:


Endowment net assets at June 30, 2016 4,256$ 92,679$ 96,935$

Interest income 3 3


The changes in endowment net assets for the year ended June 30, 2018 are as follows:


Endowment net assets at June 30, 2017 4,259$ 92,679$ 96,938$




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Note 11—Special Events Special events are held to raise funds for YWCA‐SV’s operations and programs. Revenue from special events is presented on the combined statement of activities. Revenues and expenses by special event for the years ended June 30, 2018 and 2017are as follows:

Tribute to Annual Lunch Women Walk a Mile Totals

2018:

Income 404,690$ 316,901$ 183,820$ 905,411$ Expense (163,136) (93,700) (27,146) (283,982)

Net 241,554$ 223,201$ 156,674$ 621,429$

2017: Income 347,973$ 240,456$ 154,315$ 742,744$ Expense (148,071) (92,502) (26,249) (266,822)

Net 199,902$ 147,954$ 128,066$ 475,922$

Included in special events revenue and expenses for the years ended June 30, 2018 and 2017, are in‐kind contributions of $22,045 and $8,930, respectively. Total fund development expenses for the years ended June 30, 2018 and 2017 consist of the following:

2018 2017Fund development expenses per statement of functional expenses 687,579$ 600,409$

Special event expenses 283,982 266,822

Totals 971,561$ 867,231$

Functional expenses, including special events expenses, totaled $8,000,013 and $7,213,828 for the years ended June 30, 2018 and 2017, respectively. Note 12—Retirement Plan YWCA‐SV maintains a 401(a) employer‐sponsored cash balance defined benefit pension plan. The Plan covers all employees of YWCA‐SV on the first of the month following completion of 1,000 hours of service in two 12‐month periods commencing on the date of employment or anniversary thereof. The two 12‐month periods need not be consecutive. YWCA‐SV contributed $147,354 and $112,182 during the years ended June 30, 2018 and 2017, respectively.



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Note 13—Commitments and Contingencies YWCA‐SV is obligated under a long‐term lease which expired on August 31, 2017 and is now renewed on an annual basis. YWCA‐SV also has various month‐to‐month facility leases for program facilities. The total expense incurred under these leases for the years ended June 30, 2018 and 2017 was $206,554 and $110,896, respectively. The future annual minimum lease commitments for these facility leases are as follows:

Year Ending June 30,

2019 68,064$

Total 68,064$

Note 14—Nutrition Program YWCA‐SV has a nutrition agreement with the CDE for Child and Adult Care Food Programs (CACPP), as reported in the Schedule of Expenditures of Federal Awards. The CDE for CACPP performed an audit for the program months October 2017 through March 2018 in the state program fiscal year ended June 30, 2018. YWCA‐SV is awaiting a disposition of the report on activity from the CDE. No nutrition audit report schedules are included in the audit because: (1) the audit disclosed no nutrition overpayments, underpayments, or program findings; (2) the contractor did not request reimbursement of audit costs; and (3) the audit is not a program‐specific nutrition audit. Note 15—Cost Allocation Plan YWCA‐SV updates its cost allocation plan annually and obtains approval from its board of directors. Its indirect cost allocation plan is on file in the organization’s main accounting office. YWCA‐SV allocates its costs based on the relative benefits received by the programs or activities. Accordingly, YWCA‐SV applies several methods for allocating costs:

Direct‐shared: Direct‐shared costs are calculated and allocated using the following method to reasonable and proportionally charge the expense:

Service recipients (demand utilization): A percentage is derived based on the number of clients served across service programs. This allows for direct‐shared expenses to be reasonably apportioned to our programs.

Indirect: YWCA‐SV consistently applies a reasonable approach to indirect costs calculations and applying those charges to their programs. All indirect expenses are “coded” to an account code, so an allocation can be calculated. Building square footage used by departments is re‐evaluated annually during the budget process. This square footage allocation generates the percentage amount applied to overhead or indirect agency expenses. Indirect expenses are then charged to each grant based on and in compliance with the terms and conditions of that agreement.

YWCA Silicon Valley and Related Entity Notes to Combined Financial Statements—Continued

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Note 16—YWCA Third Street. Inc. YWCA Third Street, Inc. (YTS) is a nonprofit which was formed in 1990 to manage the land and air rights for property located in San Jose, California. YTS is controlled by YWCA‐SV whose directors and officers oversee its operations. Three parcels were created at this property: YWCA‐SV currently owns the parcel of land, “Land Parcel,” and two air rights parcels were created: Floors 1‐2 “Services Parcel,” currently owned by YWCA‐SV, and another for the air rights of floors 3‐5 “Housing Parcel.” In February 2016, YTS and Charities Housing (CH) entered into a memorandum of understanding to acquire, rehabilitate, and refinance the “Housing Parcel.” On December 7, 2017, YTS purchased the “Housing Parcel” for $2,293,971. On December 11, 2017, YTS sold the housing project to the Susie B. Wilson Residence Limited Partnership (SBWR LP) for $2,871,826. The $68,145 loss on sale ‐ resulting, in part, from agreed‐upon property management fees ‐ is included in miscellaneous income in the statement of activities for the year ended June 30, 2018. SBWR LP was formed with the Susie B. Wilson LLC (SBW LLC) as general partner and CH as current limited partner. SBW LLC is owned in equal percentage by YTS and CH. SBW LLC currently has a .01% interest in SBWR LP and CH has a 99.99% limited partnership interest. The limited partnership interest of 99.99% will be syndicated to a tax credit investor when the project is resyndicated, removing CH as the current limited partner. SBWR LP was formed to acquire the leasehold interest in the air rights “Housing Parcel” owned by YTS and a fee interest in the improvements constituting the “Housing Parcel,” in order to undertake the rehabilitation, refinancing, and operation of the project. The limited partners will grant YWCA‐SV an option to purchase and first right of refusal. CH will have a backup option and right of first refusal if YWCA‐SV does not exercise such rights. Following is condensed financial information for YTS as of and for the years ended June 30, 2018 and 2017:

2018 2017Assets Cash and cash equivalents 115,756$ 139,326$ Prepaid expenses and other current assets 7,059 Advances to SBWR LP 59,944 Investment in SBW LLC 222 Property and equipment, net 201,000 201,000

Total Assets 383,981$ 340,326$

Liabilities Accounts payable $ 26,250$ Interfund payable 371,022 164,795 YWCA Third Street, Inc. loan payable 525,926 580,713

Total Liabilities 896,948 771,758

Net Assets Unrestricted undesignated (512,967) (431,432)

Total Net Assets (512,967) (431,432)

Total Liabilities and Net Assets 383,981$ 340,326$



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Note 16—YWCA Third Street. Inc.—Continued

2018 2017

Revenue Investment income 348$ 106$ Ground lease income 54,787 128,738 Loss on sale of ʺHousing Parcelʺ (68,145)

Total Revenue (13,010) 128,844

Expenses Professional fees 53,387 49,087 Equipment rent and maintenance 14,804 525 Miscellaneous 334 1,365

Total Expenses 68,525 50,977

Change in Net Assets (81,535)$ 77,867$

YTS’s investment in SBW LLC is accounted for using the equity method of accounting. At June 30, 2018, the investment balance of $222 is recorded in other assets on the combined statement of financial position at June 30, 2018. It represents the surplus from the partnership management fees which was recorded as other income in the combined statement of activities for the year ended June 30, 2018. During the year ended June 30, 2018, YTS provided an advance of $59,944 to SBWR LP for building rehabilitation related costs. Note 17—Recent Accounting Pronouncements Leases—In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016‐02, Leases (Topic 842), which requires organizations that lease assets (lessees) to recognize the assets and related liabilities for the rights and obligations created by the leases on the statement of financial position for leases with terms exceeding 12 months. ASU No. 2016‐02 defines a lease as a contract or part of a contract that conveys the right to control the use of identified assets for a period of time in exchange for consideration. The lessee in a lease will be required to initially measure the right‐of‐use asset and the lease liability at the present value of the remaining lease payments, as well as capitalize initial direct costs as part of the right‐of‐use asset. ASU No. 2016‐02 is effective for nonprofit organizations with fiscal years beginning after December 15, 2019, with early adoption permitted. YWCA‐SV is currently evaluating the impact that the adoption of ASU 2016‐02 will have on its financial statements. Net Assets Presentation—In August 2016, FASB issued ASU No. 2016‐14, Presentation of Financial Statements of Not‐for‐Profit Entities, which is intended to improve how a not‐for‐profit entity classifies its net assets, as well as the information it presents in its financial statements about its liquidity and availability of resources, expenses and investment returns, and cash flows. The guidance replaces the three classes of net assets currently presented on the statement of financial position with two new classes of net assets, which are based on the existence or absence of donor‐imposed restrictions. ASU No. 2016‐14 includes specific disclosure requirements intended to improve a financial statement user’s


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Note 17—Recent Accounting Pronouncements—Continued lease will be required to initially measure the right‐of‐use asset and the lease liability at the present value of the remaining lease payments, as well as capitalize initial direct costs as part of the right‐of‐use asset. ASU No. 2016‐02 is effective for nonprofit organizations with fiscal years beginning after December 15, 2019, with early adoption permitted. YWCA‐SV is currently evaluating the impact that the adoption of ASU 2016‐02 will have on its financial statements. Net Assets Presentation—In August 2016, FASB issued ASU No. 2016‐14, Presentation of Financial Statements of Not‐for‐Profit Entities, which is intended to improve how a not‐for‐profit entity classifies its net assets, as well as the information it presents in its financial statements about its liquidity and availability of resources, expenses and investment returns, and cash flows. The guidance replaces the three classes of net assets currently presented on the statement of financial position with two new classes of net assets, which are based on the existence or absence of donor‐imposed restrictions. ASU No. 2016‐14 includes specific disclosure requirements intended to improve a financial statement user’s ability to assess an entity’s available financial resources, along with its management of liquidity and liquidity risk. The guidance requires all not‐for‐profit entities to present expenses by both their natural and functional classification in a single location in the financial statements. ASU No. 2016‐14 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. YWCA‐SV is currently evaluating the impact that the adoption of ASU 2016‐14 will have on its financial statements. Restricted Cash—In November 2016, FASB issued ASU No. 2016‐18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016‐18 clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires entities to present the change in restricted cash and restricted cash equivalents with cash and cash equivalents to reconcile amounts on the balance sheet to the statement of cash flows. Entities will be required to disclose the nature of the restrictions, as well as reconcile the totals in the statement of cash flows to cash, cash equivalents, restricted cash, and restricted cash equivalents on the balance sheet when these are shown in more than one line item. ASU 2016‐15 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. YWCA‐SV is currently evaluating the impact that the adoption of ASU 2016‐15 will have on its financial statements. Contributions—In June 2018, FASB issued ASU No. 2018‐08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. ASU 2018‐08 clarifies the definition of an exchange transaction. As a result, not‐for‐profit entities (NFPs) will account for most federal grants as donor‐restricted conditional contributions rather than as exchange transactions (the prevalent practice today). An accommodation (“simultaneous release” option) is provided which, if elected, would allow grants received and used within the same period to be reported in net assets without donor restrictions, consistent with where the grant revenue is reported today. Donors will use the same criteria as recipients (i.e., a barrier or hurdle coupled with a right of return/right of release) to determine whether gifts or grants are conditional or unconditional. Expense recognition is deferred for conditional arrangements and is immediate for unconditional arrangements. No new disclosures are required. ASU 2018‐08 is effective for resource recipients with fiscal years beginning after December 15, 2018, and for resource providers with fiscal years beginning after December 15, 2019; early adoption is permitted. The YWCA‐SV is currently evaluating the impact that the adoption of ASU 2018‐08 will have on its financial statements.


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Note 18—Subsequent Events

Subsequent events were evaluated through November 30, 2018, which is the date the combined financial statements were available to be issued, and it was concluded that no material subsequent events have occurred that would require adjustment to the combined financial statements or disclosure in the notes to the combined financial statements.

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YWCA Silicon Valley and Related EntitySchedule of Expenditures of Federal AwardsYear Ended June 30, 2018

Federal Department/ Federal Federal Federal Program Title/ CFDA Grantorʹs Grant GrantPass‐Through Agency Number Number Amount Period Expenditures

Department of Housing and UrbanDevelopment

CDBG‐Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants Passed through local government agencies: City of Milpitas 14.218 B‐17‐MC‐06‐0055 7,581$ 7/1/17‐6/30/18 6,115$

City of Palo Alto 14.218 C18169995 10,000 7/1/17‐6/30/18 9,058

City of Santa Clara 14.218 B‐17‐MC‐06‐0022 9,612 7/1/17‐6/30/18 9,612

City of Sunnyvale 14.218 1718‐827550 25,000 7/1/17‐6/30/18 19,600

Santa Clara County 14.218 PS‐18‐15 11,165 7/1/17‐6/30/18 11,165

Total CDBG‐Entitlement Grants Cluster,CFDA Nos. 14.218 and 14.225 55,550

Congressionally RecommendedAwards Direct award: Continuum of Care Program 14.267 CA1292L9T001501 499,904 11/1/16‐10/31/17 60,334

14.267 CA1292L9T001602 499,904 11/1/17‐10/31/18 127,564 14.267 CA1382L9T001500 365,406 5/1/17‐4/30/18 104,513 14.267 CA1382L9T001702 390,006 5/1/18‐4/30/19 26,920

Total CFDA 14.267 319,331

Total Department of Housing and Urban Development 374,881

Department of Justice

Crime Victim Assistance Passed through California Office of Emergency Services: Valley Rape Crisis Center‐ Central 16.575 RC16‐36‐1024 512,995 9/1/16‐9/30/17 168,504

16.575 RC17‐37‐1024 493,459 10/1/17‐9/30/18 302,158

Valley Rape Crisis Center‐ North 16.575 RC16‐14‐1024 281,195 9/1/16‐9/30/17 67,946

16.575 RC17‐15‐1024 269,291 10/1/17‐9/30/18 165,436

Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services 16.575 DV16‐30‐1024 395,270 7/1/16‐9/30/17 110,779

16.575 DV17‐31‐1024 280,256 10/1/17‐9/30/18 219,002

Sexual Assault Response Team 16.575 XS16‐01‐1024 306,117 7/1/16‐12/31/19 115,475

Unserved/Underserved Victim Advocacy & Outreach 16.575 XV15‐01‐1024 656,251 4/1/16‐12/31/19 222,819

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YWCA Silicon Valley and Related EntitySchedule of Expenditures of Federal Awards—Continued

Year Ended June 30, 2018


Department of Justice (contʹd)

Crime Victim Assistance (contʹd)

Passed through California Office of Emergency Services: Criminal Justice/Emergency Management & Victim Services Branch for the County Victim Services Program 16.575 XC16‐01‐0430 156,000$ 7/1/16‐12/31/19 65,073$

Total CFDA 16.575 1,437,192

Services for Trafficking Victims Passed through Santa Clara Universityʹs Katharine & George Alexander Community Law Center 16.320 DOJ006 105,124 10/1/15‐9/30/18 18,692

Total CFDA 16.320 18,692

Grants to Encourage Arrest Policiesand Enforcement of ProtectionOrders Program Passed through City of San Jose Police Department Grants Unit, FCA 16.590 OVW‐2016‐9206 180,342 10/1/16‐9/30/17 43,217

Total CFDA 16.590 43,217

Transitional Housing Assistance forVictims of Domestic Violence, Dating, Violence, Stalking, orSexual Assault Direct award:

OVW ‐ Transitional Housing 16.736 2015‐WH‐AX‐0015 348,445 10/1/15 ‐ 9/30/18 107,128

Total CFDA 16.736 107,128

Total Department of Justice 1,606,229

Department of Health and HumanServices

Injury Prevention and ControlResearch and State andCommunity Based Programs Passed through California Department of Public Health: Rape Prevention & Education 93.136 14‐10705 355,250 11/1/14‐1/31/19 72,083

Total CFDA 93.136 72,083

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YWCA Silicon Valley and Related EntitySchedule of Expenditures of Federal Awards—Continued



Department of Health and HumanServices—(contʹd)

CCDF‐Child Care and Development Fund Cluster Child Care and Development Block Grant Passed through California Department of Education: California State Preschool Program 93.575 CSPP 7580 7,899$ 7/1/17‐6/30/18 7,899$

Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through California Department of Education: California State Preschool Program 93.596 CSPP 7580 17,201 7/1/17‐6/30/18 17,201

Total CCDF‐Child Care and Development Fund Cluster,CFDA Nos. 93.575 and 93.596 25,100

Total Department of Health and Human Services 97,183

Department of Agriculture

Child and Adult Care Food Program Passed through California Department of Education 10.558 06170‐CACFP‐43‐NP‐CS 8,462 10/1/16‐9/30/17 8,462

10.558 06170‐CACFP‐43‐NP‐CS 42,254 10/1/17‐9/30/18 42,254

Total CFDA 10.558 50,716

Total Department of Agriculture 50,716

Total Federal Awards 2,129,009$

See accompanying notes to schedule of expenditures of federal awards.

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YWCA Silicon Valley and Related Entity Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2018 Note A—Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of YWCA Silicon Valley and its related entity under programs of the federal government for the year ended June 30, 2018. The information in this schedule is presented in accordance with 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). Because the schedule presents only a selected portion of the operations of YWCA Silicon Valley and its related entity, it is not intended to and does not present the financial position, changes in net assets, or cash flows of YWCA Silicon Valley and its related entity. Note B—Summary of Significant Accounting Policies Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. YWCA Silicon Valley and its related entity has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Any negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass‐through entity identifying numbers are presented where available.

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YWCA Silicon Valley and Related EntitySchedule of Expenditures of State and Local AwardsYear Ended June 30, 2018

Program Receipts/ Disbursements/State or Local Grantor/Pass‐Through Grantor or Award Revenue Expenditures

Program Title Amount Recognized Incurred

City of Mountain View, Domestic Violence Services 37,000$ 31,080$ 31,080$ County of Santa Clara Social Services, Domestic Violence Advocacy, 4300008456 73,965 57,606 57,606 County of Santa Clara Social Services, Support Services Dept, 4300012085 70,070 23,233 23,233 County of Santa Clara Social Services, Support Services Dept, 4300012085 70,070 29,458 29,458 County of Santa Clara, Lead agency is Santa Clara University Community Law Center 115,255 103,333 103,333 County of Santa Clara, Lead agency is Community Solutions 628,000 210,045 210,045 County of Santa Clara, Lead agency is Community Solutions 130,000 4,487 4,487 County of Santa Clara, PREA, 4400006479 30,588 27,755 27,755 County of Santa Clara, PREA, 4400006703 68,186 67,768 67,768 County of Santa Clara, Womanʹs Policy, TF 0231, TF00378, LA 2220510 100,000 81,565 81,565 San Jose State University, Campus Survivor Advocate, 3000024589 49,999 11,216 11,216 City of San Jose, Police Department Grants Unit, FVC, GF 2017 YWCA 113,395 70,539 70,539

California Department of Ed, CSPP‐7580 112,167 112,167 112,167 California Department of Ed, CSPP‐7694 454,373 128,539 128,539 Office of Supportive Housing, County of Santa Clara/COC Subrecipient 152,500 94,893 94,893 School Contracts: San Jose Unified School District, Counseling Interns, 18101071 180,000 180,000 180,000 Evergreen School District, Child Abuse Prevention and Teen Empowerment 88,500 80,450 80,450 State of California, CAL OES, Domestic Violence Assistance Program, DV16 30 1024 201,980 29,521 29,521 State of California, CAL OES, Domestic Violence Assistance Program, DV17 31 1024 203,124 155,277 155,277 State of California, CAL OES, Valley Rape Crisis Center ‐ Central, RC16 36 1024 68,037 19,628 19,628 State of California, CAL OES, Valley Rape Crisis Center ‐ Central, RC17 37 1024 42,901 42,901 42,901 State of California, CAL OES, Valley Rape Crisis Center ‐ North, RC16 14 1024 38,233 7,231 7,231 State of California, CAL OES, Valley Rape Crisis Center ‐ North, RC17 15 1024 24,336 24,336 24,336 State of California, CAL OES, Human Trafficking Program, HV 16 01 1043 130,000 49,185 49,185

Total State and Local Government Assistance 3,182,679$ 1,642,211$ 1,642,211$

29

YWCA Silicon Valley and Related EntitySupplementary Information Required by California Emergency Management AgencyYear Ended June 30, 2018

Project Title Domestic Violence Assistance ProgramGrant award number DV16‐30‐1024Grant period 07/01/16‐09/30/17

Federal State In‐Kind TotalBudget VOCA DVPO Match State Expenditures

Personal services 447,218$ 86,750$ 5,988$ 194$ 92,932$ Operating expenses 150,032 24,029 23,533 47,562

Totals 597,250$ 110,779$ 29,521$ 194$ 140,494$

Project Title Domestic Violence Assistance ProgramGrant award number DV16‐30‐1024Grant period 10/01/17‐09/30/18

Federal State In‐Kind TotalBudget VOCA DVPO Match State Expenditures

Personal services 404,454$ 219,002$ 83,322$ 20,198$ 322,522$ Operating expenses 78,926 71,955 71,955

Totals 483,380$ 219,002$ 155,277$ 20,198$ 394,477$

Project Title Valley Rape Crisis Center—CentralGrant award number RC17‐37‐1024Grant period 09/01/17‐08/31/18

Federal State State In‐Kind TotalBudget VOCA RCP‐5 SASP Match Federal Expenditures

Personal services 435,954$ 270,398$ $ 2,462$ 41,327$ 314,187$ Operating expenses 98,844 31,760 1,878 38,561 72,199

Totals 534,798$ 302,158$ 1,878$ 41,023$ 41,327$ 386,386$

Project Title Valley Rape Crisis Center—CentralGrant award number RC16‐36‐1024Grant period 09/01/16‐09/30/17

Federal Federal State In‐Kind TotalBudget VOCA 16 VOCA 15 RCP‐5 Match Federal Expenditures

Personal services 406,691$ 41,069$ 84,149$ $ 34,049$ 159,267$ Operating expenses 174,341 22,822 20,464 19,628 62,914

Totals 581,032$ 63,891$ 104,613$ 19,628$ 34,049$ 222,181$

Project Title Valley Rape Crisis Center—NorthGrant award number RC17‐15‐1024Grant period 10/1/17‐9/30/18

Federal State State In‐Kind TotalBudget VOCA RCP‐5 SASP Match Federal Expenditures

Personal services 223,145$ 137,624$ 1,349$ $ 31,776$ 170,749$ Operating expenses 70,170 27,812 529 22,458 50,799

Totals 293,315$ 165,436$ 1,878$ 22,458$ 31,776$ 221,548$

Expenditures by Revenue Source





30

YWCA Silicon Valley and Related EntitySupplementary Information Required by California Emergency Management Agency—ContinuedYear Ended June 30, 2018

Project Title Valley Rape Crisis Center—NorthGrant award number RC16‐14‐1024Grant period 09/01/16‐09/30/17

Federal Federal State In‐Kind TotalBudget VOCA 16 VOCA 15 RCP‐5 Match Federal Expenditures

Personal services 214,613$ 27,473$ 27,903$ $ 15,270$ 70,646$ Operating expenses 104,815 12,132 438 7,231 19,801

Totals 319,428$ 39,605$ 28,341$ 7,231$ 15,270$ 90,447$

Project Title Unserved/Underserved Victim Advocacy & Outreach ProgramGrant award number XV15‐01‐1024Grant period 04/01/16‐12/31/19

Federal In‐Kind TotalBudget VOCA Match Federal Expenditures

Personal services 512,810$ 171,458$ 43,774$ 215,232$ Operating expenses 143,441 51,361 51,361

Totals 656,251$ 222,819$ 43,774$ 266,593$

Project Title Sexual Assault Response TeamGrant award number XS16‐011‐1024Grant period 7/1/16‐12/31/19

Federal Federal In‐Kind TotalBudget VOCA 15 VOCA 17 Match Federal Expenditures

Personal services 258,180$ 86,279$ 4,397$ 29,167$ 119,843$ Operating expenses 47,934 20,209 4,590 24,799

Totals 306,114$ 106,488$ 8,987$ 29,167$ 144,642$

Project Title County Victim Services ProgramGrant award number ZC16‐01‐0430Grant period 7/1/16‐12/31/19

Federal In‐Kind TotalBudget VOCA Match Federal Expenditures

Personal services 141,874$ 59,157$ $ 59,157$ Operating expenses 14,126 5,916 5,916

Totals 156,000$ 65,073$ $ 65,073$

Expenditures byRevenue Source



Revenue SourceExpenditures by

31

YWCA Silicon Valley and Related EntitySupplementary Information Required by California Emergency Management Agency—ContinuedYear Ended June 30, 2018

Project Title Human Trafficking ProgramGrant award number HV16‐01‐1043Grant period 4/1/16‐3/31/19

In‐Kind TotalBudget State Match Federal Expenditures

Personal services 108,276$ 45,469$ $ 45,469$ Operating expenses 21,724 3,716 3,716

Totals 130,000$ 49,185$ $ 49,185$


32


Combining Statement of Activities


Non‐CDECSPP 7580 CSPP 7694 Programs Total

Public Support and Revenue Contributions Individuals $ $ 680,974$ 680,974$ Government contributions 81,566 81,566 Foundation/corporate grants 1,049,560 1,049,560 Board commitment In‐kind 271,967 271,967 Special events, net—Note 12 621,429 621,429

Government grants Other government grants 3,373,132 3,373,132 Child care and development programs 137,267 128,539 265,806

Child care food program 13,518 8,453 28,745 50,716

Total Support 150,785 136,992 6,107,373 6,395,150

Program service fees 9,030 8,523 952,049 969,602 Interest and dividend income 158,443 158,443 Realized and unrealized investment gain 271,199 271,199

Income from investmentin SBW 222 222

Ground lease income 54,787 54,787 Miscellaneous income (67,524) (67,524)

Total Revenue 9,030 8,523 1,369,176 1,386,729

Net assets released from restrictions

Total Public Support, Revenue, andReleases from Restrictions 159,815 145,515 7,476,549 7,781,879

Expenses Salaries 142,637 101,982 4,068,598 4,313,217 Payroll taxes 11,291 8,091 321,698 341,080 Employee benefits 21,630 16,905 413,871 452,406

Total Payroll‐Related Expense 175,558 126,978 4,804,167 5,106,703

In‐kind services and supplies 228,967 228,967 Professional fees and contract services 11,813 3,709 717,471 732,993 Occupancy 8,402 43,769 290,132 342,303 Housing and rental assistance 136,087 136,087 Emergency and basic assistance 52,170 52,170 Depreciation 2,293 134,330 136,623 Telephone 6,090 779 119,696 126,565 Equipment rental and maintenance 7,189 306 90,062 97,557 Supplies 3,810 51,220 157,931 212,961 Miscellaneous 680 577 63,958 65,215 Insurance 1,391 1,912 65,033 68,336 Investment management fees 84,781 84,781 Local transportation 85,128 85,128 Minor equipment 2,113 25,018 27,131

33


Combining Statement of Activities—Continued


Non‐CDECSPP 7580 CSPP 7694 Programs Total

Expenses—Continued

Dues and subscriptions $ $ 34,517$ 34,517$ Publicity and promotion 88,649 88,649 Conferences, conventions, and meetings 530 53,778 54,308 Taxes and licenses 706 544 11,041 12,291 Postage 11 6,619 6,630 Outside printing and artwork 18 16,098 16,116

Total Expenses 217,932 232,466 7,265,633 7,716,031

Change in Net Assets (58,117)$ (86,951)$ 210,916$ 65,848$

See accompanying auditorʹs reports and notes to combined financial statements.

34

YWCA Silicon Valley and Related EntitySchedule of Expenditures by State CategoriesYear Ended June 30, 2018

Expenditures CSPP 7580 CSPP 7694 Total

1000 Certificated salaries 123,799$ 51,778$ 175,577$ 2000 Classified salaries 22,337 12,656 34,993 3000 Employee benefits 22,337 17,431 39,768 5000 Services and other operating expenses 32,195 65,608 97,803 Depreciation on assets on purchased with public funds 750 750 Start‐up expenses 51,423 51,423 Indirect costs (a) 7,886 12,686 20,572

Total Expenses Claimed

for Reimbursement (b) 209,304 211,582 420,886 Total supplemental expenses

Total Expenditures 209,304$ 211,582$ 420,886$

(a) file in the main accounting office of the YWCA of Silicon Valley.

(b) Any food expenses have been allocated to the appropriate contacts.


supported, according to governing laws, regulations, and contract provisions.

We have examined the claims filed for reimbursement and the original records supporting the transactionsrecorded under the contract listed above to an extent considered necessary to assure ourselves that theamounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately

A written indirect cost allocation plan for the current fiscal year, approved by the Board of Directors, is on file in

35

YWCA Silicon Valley and Related EntityReconciliation of CDE and GAAP Expense ReportingYear Ended June 30, 2018

Expenses CSPP 7580 CSPP 7694 Total

Schedule of Expenditures by State Categories (CDE) 209,304$ 211,582$ 420,886$

Adjustments to reconcile differences in reporting: Depreciation on assets purchased with CDE funds 1,543 1,543 Other expenses not expensed on AUD forms 7,085 20,884 27,969

Subtotal 8,628 20,884 29,512

Combining Statement of Activities (GAAP) 217,932$ 232,466$ 450,398$


36

YWCA Silicon Valley and Related EntitySchedule of Reimbursable Equipment ExpendituresYear Ended June 30, 2018

Reimbursable Equipment Expenditures CSPP 7580 CSPP 7694 Total

Unit Cost Under $7,500 Per Purchase

None $ $ $

Subtotal

Unit Cost Over $7,500 per Purchase With Prior Written Approval

None $ $ $

Subtotal

Unit Cost Over $7,500 per Purchase Without Prior Written Approval

None $ $ $

Subtotal

Total Expenditures $ $ $


37

YWCA Silicon Valley and Related EntitySchedule of Reimbursable Administrative CostsYear Ended June 30, 2018

Reimbursable Administrative Costs CSPP 7580 CSPP 7694 Total

Indirect costs 7,686$ 12,686$ 20,372$

Total Expenditures 7,686$ 12,686$ 20,372$


38

YWCA Silicon Valley and Related EntitySchedule of Reimbursable Start‐Up ExpensesYear Ended June 30, 2018

Reimbursable Start‐Up Expenses CSPP 7580 CSPP 7694 Total

1000 Certificated salaries $ 38,954$ 38,954$ 2000 Classified salaries 3000 Employee benefits 4,555 4,555 4000 Books and supplies 7,914 7,914 5000 Services and other operating expenses

Subtotal 51,423 51,423

6100/6200 Other approved capital outlay

Total Expenditures $ 51,423$ 51,423$


CALIFORNIA DEPARTMENT OF EDUCATION AUDITED ATTENDANCE AND FISCAL REPORT FOR CALIFORNIA STATE PRESCHOOL PROGRAMS SANTA CLARA PILOT A U D 8501 - SC Page 1 of 9 (11/18)

Fiscal Year Ending

Contract Number

Vendor Code

Full Name of Contractor

Section 1 - Days of Enrollment Certified ChildrenColumn A

Cumulative CDNFS 8501-SC

Column B Audit

Adjustments

Column C Cumulative Per Audit

Column D Adjustment

Factor

Column E Adjusted Days

Per Audit

Three and Four Year Olds Full-time-plus 1.1800

Three and Four Year Olds Full-time 1.0000

Three and Four Year Olds Three-quarters-time 0.7500

Three and Four Year Olds One-half-time 0.6752

Exceptional Needs Full-time-plus 1.4160

Exceptional Needs Full-time 1.2000

Exceptional Needs Three-quarters-time 0.9000

Exceptional Needs One-half-time 0.6752

Limited and Non-English Proficient Full-time-plus 1.2980

Limited and Non-English Proficient Full-time 1.1000

Limited and Non-English Proficient Three-quarters-time 0.8250

Limited and Non-English Proficient One-half-time 0.6752

Page

June 30, 2018

CSPP-7580

T26700

YWCA Silicon Valley

15 15 17.7

2,095 2,095 2,095

83 83 62.25

0

0

0

0

0

0

821 821 903.1

279 279 230.175

0

39


Fiscal Year Ending

Contract Number

Vendor Code



Column B Audit

Adjustments


Column D Adjustment

Factor


Per Audit

At Risk of Abuse or Neglect Full-time-plus 1.2980

At Risk of Abuse or Neglect Full-time 1.1000

At Risk of Abuse or Neglect Three-quarters-time 0.8250

At Risk of Abuse or Neglect One-half-time 0.6752

Severely Disabled Full-time-plus 1.7700

Severely Disabled Full-time 1.5000

Severely Disabled Three-quarters-time 1.1250

Severely Disabled One-half-time 0.6752

TOTAL DAYS OF ENROLLMENT N/A

DAYS OF OPERATION N/A N/A

DAYS OF ATTENDANCE N/A N/A


NO NON-CERTIFIED CHILDREN Check this box (omit pages 3-5) and continue to Revenue Section on page 6.

Page

June 30, 2018

CSPP-7580

T26700

0

0

0

0

0

0

0

0

3,293 3,293 3,308.225

246 246

3,276 3,276

YWCA Silicon Valley

40

Fiscal Year Ending

Contract Number

Vendor Code



Section 3 - Revenue Column A


Column B Audit

Adjustments


Restricted Income - Child Nutrition Programs

Restricted Income - County Maintenance of Effort (EC Section 8279)

Restricted Income - Other:

Restricted Income - Subtotal

Transfer from Reserve - General

Transfer from Reserve - Professional Development

Transfer from Reserve Total

Family Fees for Certified Children

Interest Earned on Child Development Apportionment Payments

Unrestricted Income: Fees for Non-Certified Children

Unrestricted Income: Head Start

Unrestricted Income - Other:

Total Revenue

Page

June 30, 2018

CSPP-7580

T26700

YWCA Silicon Valley

12,456 12,456

12,456 12,456

7,601 7,601

20,057 20,057

41


Fiscal Year Ending

Contract Number

Vendor Code

Section 4 - Reimbursable ExpensesColumn A


Column B Audit

Adjustments


Direct Payments to Providers (FCCH only)1000 Certificated Salaries2000 Classified Salaries3000 Employee Benefits4000 Books and Supplies5000 Services and Other Operating Expenses6100/6200 Other Approved Capital Outlay6400 New Equipment (program-related)6500 Equipment Replacement (program-related)Depreciation or Use AllowanceStart-up Expenses (service level exemption)Budget Impasse CreditIndirect Costs (Include in Administrative Cost)Non-Reimbursable (State Use Only)

Total Reimbursable ExpensesTotal Administrative Cost (included in section 4 above)

Approved Indirect Cost Rate:

Comments:

No Supplemental Revenue check this box and omit Page 8.


Page

June 30, 2018

CSPP-7580

T26700

123,799 123,79922,337 22,33722,337 22,337

39,059 -6,864 32,195

1,719 -969 750

7,886 7,886

217,137 -7,833 209,3047,886 7,886

10%

Up to 10% maximum indirect cost rate.

YWCA Silicon Valley

42

Fiscal Year Ending

Contract Number

Vendor Code


Section 7 - SummaryColumn A


Column B Audit

Adjustments


Total Certified Days of EnrollmentDays of OperationDays of AttendanceTotal Non-Certified Days of EnrollmentRestricted Program IncomeTransfer from ReserveFamily Fees for Certified ChildrenInterest Earned on Apportionment PaymentsDirect Payments to ProvidersStart-up Expenses (service level exemption)Total Reimbursable ExpensesTotal Administrative Cost

Total Certified Adjusted Days of Enrollment

Total Non-Certified Adjusted

Days of Enrollment

Independent Auditor's Assurances on Agency's Compliance with the Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Learning and Care Division (formerly Early Education and Support Division):

Eligibility, enrollment and attendance records are being maintained as required (check YES or NO): YesNoYesNo

Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):

Include any comments in the Comments box on page 7. If necessary, attach additional sheets to explain adjustments.


Page

June 30, 2018

CSPP-7580

T26700

3,293 3,293246 246

3,276 3,276

12,456 12,456

7,601 7,601

217,137 -7,833 209,3047,886 7,886

3,308.225

0

YWCA Silicon Valley

43

CALIFORNIA DEPARTMENT OF EDUCATION AUDITED ATTENDANCE AND FISCAL REPORT FOR CALIFORNIA STATE PRESCHOOL PROGRAMS A U D 8501 Page 1 of 9 (09/18)

Fiscal Year Ending

Contract Number

Vendor Code



Cumulative CDNFS 8501

Column B Audit

Adjustments


Column D Adjustment

Factor


Per Audit

Three and Four Year Olds Full-time-plus 1.1800

Three and Four Year Olds Full-time 1.0000

Three and Four Year Olds Three-quarters-time 0.7500

Three and Four Year Olds One-half-time 0.6193

Exceptional Needs Full-time-plus 1.4160

Exceptional Needs Full-time 1.2000

Exceptional Needs Three-quarters-time 0.9000

Exceptional Needs One-half-time 0.6193

Limited and Non-English Proficient Full-time-plus 1.2980

Limited and Non-English Proficient Full-time 1.1000

Limited and Non-English Proficient Three-quarters-time 0.8250

Limited and Non-English Proficient One-half-time 0.6193

Page

June 30, 2018

CSPP-7694

C425

San Jose Conservation Corp and Charter School (Subcontractor: YWCA Silicon Valley)

39 39 46.02

1,376 -4 1,372 1,372

39 4 43 32.25

0

0

0

0

0

200 200 259.6

137 137 150.7

0

0

44


Fiscal Year Ending

Contract Number

Vendor Code



Column B Audit

Adjustments


Column D Adjustment

Factor


Per Audit

At Risk of Abuse or Neglect Full-time-plus 1.2980

At Risk of Abuse or Neglect Full-time 1.1000

At Risk of Abuse or Neglect Three-quarters-time 0.8250

At Risk of Abuse or Neglect One-half-time 0.6193

Severely Disabled Full-time-plus 1.7700

Severely Disabled Full-time 1.5000

Severely Disabled Three-quarters-time 1.1250

Severely Disabled One-half-time 0.6193

TOTAL DAYS OF ENROLLMENT N/A

DAYS OF OPERATION N/A N/A

DAYS OF ATTENDANCE N/A N/A


NO NON-CERTIFIED CHILDREN Check this box (omit pages 3-5) and continue to Revenue Section on page 6.

Page

June 30, 2018

CSPP-7694

C425

0

0

0

0

0

0

0

0

1,791 0 1,791 1,860.57

202 202

1,784 1,784


45

Fiscal Year Ending

Contract Number

Vendor Code



Section 3 - Revenue Column A


Column B Audit

Adjustments


Restricted Income - Child Nutrition Programs

Restricted Income - County Maintenance of Effort (EC Section 8279)

Restricted Income - Other:

Restricted Income - Subtotal

Transfer from Reserve - General

Transfer from Reserve - Professional Development

Transfer from Reserve Total


Interest Earned on Child Development Apportionment Payments

Unrestricted Income: Fees for Non-Certified Children

Unrestricted Income: Head Start

Unrestricted Income - Other:

Total Revenue

Page

June 30, 2018

CSPP-7694

C425


6,453 6,453

6,453 6,453

8,014 8,014

14,467 14,467

46


Fiscal Year Ending

Contract Number

Vendor Code

Section 4 - Reimbursable ExpensesColumn A


Column B Audit

Adjustments


Direct Payments to Providers (FCCH only)1000 Certificated Salaries2000 Classified Salaries3000 Employee Benefits4000 Books and Supplies5000 Services and Other Operating Expenses6100/6200 Other Approved Capital Outlay6400 New Equipment (program-related)6500 Equipment Replacement (program-related)Depreciation or Use AllowanceStart-up Expenses (service level exemption)Budget Impasse CreditIndirect Costs (Include in Administrative Cost)Non-Reimbursable (State Use Only)

Total Reimbursable ExpensesTotal Administrative Cost (included in section 4 above)

Approved Indirect Cost Rate:

Comments:

No Supplemental Revenue check this box and omit Page 8.


Page

June 30, 2018

CSPP-7694

C425

51,778 51,77812,656 12,65617,431 17,431

65,608 65,608

51,423 51,423

12,686 12,686

211,582 211,58212,686 -5,313 7,373

10%

Up to 10% Max. YWCA completing this form as a subcontractor to SJCC which is an LEA


47

Fiscal Year Ending

Contract Number

Vendor CodeFull Name of Contractor


Section 7 - SummaryColumn A


Column B Audit

Adjustments


Total Certified Days of Enrollment

Days of Operation

Days of Attendance

Total Non-Certified Days of Enrollment

Restricted Program Income

Transfer from Reserve


Interest Earned on Apportionment Payments

Direct Payments to Providers

Start-up Expenses (service level exemption)

Total Reimbursable Expenses

Total Administrative Cost

Total Certified Adjusted Days of Enrollment

Total Non-Certified Adjusted

Days of Enrollment

Independent Auditor's Assurances on Agency's Compliance with the Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Learning and Care Division (formerly Early Education and Support Division):

Eligibility, enrollment and attendance records are being maintained as required (check YES or NO): YesNoYesNo

Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):

Include any comments in the Comments box on page 7. If necessary, attach additional sheets to explain adjustments.

June 30, 2018

CSPP-7694

C425San Jose Conservation Corp and Charter School (Subcontractor: YWCA

1,791 0 1,791

202 202

1,784 1,784

6,453 6,453

8,014 8,014

51,423 51,423

211,582 211,582

12,686 -5,313 7,373

1,860.57

0

Page 48

49

YWCA Silicon Valley and Related Entity Summary Schedule of Prior Audit Findings Year Ended June 30, 2018 There were no prior year audit findings.




50

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial

Statements Performed in Accordance with Government Auditing Standards Board of Directors YWCA Silicon Valley and Related Entity San Jose, California

We have audited in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the combined financial statements of YWCA Silicon Valley and its related entity, YWCA Third Street, Inc. (together referred to as YWCA‐SV), which comprise the combined statement of financial position as of June 30, 2018, and the related combined statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the combined financial statements and have issued our report thereon dated November 30, 2018.

Internal Control over Financial Reporting

In planning and performing our audit of the combined financial statements, we considered the Organizationʹs internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the combined financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect 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 combined financial 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.

51

Board of Directors YWCA Silicon Valley and Related Entity Page 2

Compliance and Other Matters

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

Purpose of This Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the Organization’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization’s internal control and compliance. Accordingly, this report is not suitable for any other purpose. Campbell, California November 30, 2018




52

Independent Auditor’s Report for Each Major Federal Program and Report on Internal Control over Compliance in Accordance with the Uniform Guidance

Board of Directors YWCA Silicon Valley and Related Entity San Jose, California Report on Compliance for Each Major Federal Program

We have audited the compliance of YWCA Silicon Valley and its related entity, YWCA Third Street, Inc. (together referred to as “the Organization”) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on its major federal programs for the year ended June 30, 2018. The Organizationʹs 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 requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the Organizationʹs major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our compliance audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organizationʹs 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 the Organization’s compliance.

53

Board of Directors YWCA Silicon Valley and Related Entity Page 2

Opinion on Each Major Federal Program

In our opinion, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal award programs for the year ended June 30, 2018.

Report on Internal Control over Compliance

The Organization’s management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Organizationʹs internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organizationʹs internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses may exist that have not been identified.

Purpose of This Report

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance, and the result of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Campbell, California November 30, 2018

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YWCA Silicon Valley and Related Entity Schedule of Findings and Questioned Costs Year Ended June 30, 2018 A. Summary of Audit Results

1. The auditorʹs report expresses an unmodified opinion on whether the financial statements

of YWCA Silicon Valley and its related entity were prepared in accordance with accounting

principles generally accepted in the United States of America.

2. No material weaknesses or significant deficiencies were identified during the audit.

3. No instances of noncompliance material to the financial statements of YWCA Silicon Valley

and its related entity were disclosed during the audit.

4. No material weaknesses or significant deficiencies were identified during the audit of the

major federal award program.

5. The auditorʹs report on compliance for the major federal award program of YWCA Silicon

Valley and its related entity expresses an unmodified opinion.

6. There were no audit findings that required reporting in this schedule in accordance with

Title 2 U.S. Code of Federal Regulations section 200.516(a).

7. The program tested as a major program was the Department of Justice, Crime Victim Assistance, CFDA No. 16.575.

8. The threshold for distinguishing Types A and B programs was $750,000. 9. YWCA Silicon Valley and its related entity were determined to be a low‐risk auditee.

B. Findings—Financial Statements Audit None

C. Findings and Questioned Costs—Major Federal Award Program None

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YWCA Silicon Valley and Related Entity Corrective Active Plan Year Ended June 30, 2018 As there were no audit findings or questioned costs for the year ended June 30, 2018, a corrective action plan is not required.

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