Fiscal Year 1980 & 1981 MONROE ASSOCIATION FOR RETARDED CITIZENS, INC.
FINANCIAL STATEMENTS
JUNE 30, 1980 AND 1981
AND OPINION OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
KEMP G ROSASCO
CERTIFIED PUBLIC ACCOUNTANTS
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MONROE ASSOCIATION FOR RETARDED CITIZENS, INC.
FINANCIAL STATEMENTS
JUNE 30, 1980 AND 1981
AND OPINION OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
KEMP S. ROSASCO
CERTIFIED PUBLIC ACCOUNTANTS
CONTENTS Page
Opinion of Certified Public Accountants 1
2
Balance Sheets
Statement of Receipts, Expenditures and changes in Fund Balances 3
4-5
Notes to Financial Statements
KEMP & ROSASCO
Certified Public Accountants
ORV615-A UNITED ST. • P.O.BOX 309 PALM BEACH COUNTY
WM.0.S KEM MP,C.P.A.,C C.P.A. KEY WEST,FL 33040 P.O.BOX 3756
PETER O.K PE L.ROSASCO 1R.,C.P.A. LANTANA,FL 33462PH.(305)586-3552
•
Board of Directors
Monroe Association for Retarded Citizens, Inc.
We have examined the accompanying balance
June 0 1980 and 1 Ass
sheetsc of Monroe Association
and efor
rl related
Retarded Citizens, Inc. c'MARC") , as
statements of receipts, expenditures and changes In fund balance for the years
then ended. Our examinations were made In accordance with generally accepted
auditing standards and, accordingly, Included such tests of the accounting
records and such other auditing procedures as we considered necessary In the
circumstances.
We did not examine the Associations' financial statements for the year ending
June 30, 1979. These statements were examined by other auditors, who disclaimed
an opinion, on such statements due to "....major Inadequacies in the Associations'
accounting records and system of internal control."
As discussed in Note 5, among other things, the Association Is in the process of
negotiating with the Internal Revenue Service to settle unpaid employment taxes
and
returnshfordthespastuseverare, the years. AThecoutcome of these filed
negotiations i ismnoottax
presently determinable.
In our opinion, subject to the effects of such adjustments, if any, as might
have been required had the outcome of the matters referred to In the second
and third paragraphs hereof been determinable, the financial statements referred
to above present fairly the as ofnJuneal 3�1980 and 1981, athe nnd theroe nsociati resultsoofn for its'
Retarded Citizens, Inc. ,.
n fund
years
nded, in conformity
ations and changes ge rally accepted)accounting principles thence for
principlesappliedtonnae
with econsistent basis.
%tar: (212f10-
Kemp & Rosasco
Certified Public Accounts
September 15, 1981
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MONROE ASSOCIATION FOR RETARDED CITIZENS, INC,
BALANCE SHEETS
JUNE 30, 1980 AND 1981
ASSETS 1980 1981
•
Cash (Note 2) $ 1 yyp $ (368)
General account (Overdraft) 2,96
9 18
Title XX account 6,434 8
County account34 8
1 1 ,369
Transportation account 10
Savings - MARC369 100
Savings - Pendleton House
Total Cash (Overdraft) 12,895 (224)
Property and Equipment (Note 3) 5,3 6
9 7.3 27
Furniture, fixtures and equipment 5,329
Transportation equipment _10 7,37 5,6106
Household Improvements
Total 9,439 16,776
Deposits on Pendleton House (Note 4) -0- 14,800
-- ---Total Assets _$ 22,334 $ 31 ,352
LIABILITIES AND FUND BALANCE
Liabilities 1 ,545
2,891
$
Accrued matching payment $ 45
Accrued payroll taxes (Note 5) ,
Total Liabilities •
2,891 4,000
Commitments and Contingencies
Fund Balance
19,443 27,352
Total Liabilities and Fund Balance $ 22,334 $ 31 ,352
See notes to financial statements.
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~ MONROE ASSOCIATION FOR RETARDED CITIZENS, INC,
STATEMENT OFOR RECEIPTS.
YEARSEXPENDITURES
JUNE 30, 1980 CHANGES
AND1N FUND BALANCE
1981
1980 1981
ow
Receipts '
Department of Health and Rehabilitative Services: 54,597 $ 74,096
t Developmental training program $ 29,835 74,096
Long term residential care2 835 30,784
784
Transportation 4.600 8,403
Educational training and therapy 91,332 136,89
Sub-total6
Clients social security and other support 31 ,074 35,064
a Association income and reimbursements 19,611 20,969
Monroe County 10,000 8,154
United Way.contribution -0- 1 .800
Total Receipts $ 152,017 $ 196,163
Expenditures 88,230 $ 105,363
Salaries and wages (Including taxes) $
:q On behalf of clients: 11 ,952
0
,21
Food and drink 1
- ---Living expenses - other 12 1 ,2 0 1
,832 0,92
Utilities and phone 1 ,4608 11 ,218, 528
. Housekeeping and educational supplies755 795
Travel and entertainment Repairs and maintenance 2,226 5,556
685 637
Other 4.6 Rent 6,388 16,000
Matching of developmental training funds •
,262
(12.5% 6,625 9 of receipts) ,625 1 ,262
Other administrative
Total Expenditures 146,951 188,254
Excess of Receipts over Expenditures 15,066 7 19,443
7,909
I Fund Balance, Beginning of Period 19,443 27,352
Fund Balance, End of Period $ ..$
[.
See notes to financial statements '
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MONROE ASSOCIATION FOR RETARDED CITIZENS. INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1980 AND 1981
Note 1 - General
•
Purpose and Organization
The Monroe Association for Retarded Citizens, Inc. ("MARC") Is organized under
the laws of the State of Florida, to order to promulgate and operate programs
for the handicapped. MARC was originally incorporated on a non-profit basis,
and filed tax returns accordingly. Furthermore, according to MARC bylaws the
corporation is a membership organization, wherein eligibility Is determined as
involvement or interest in accomplishing the objectives of MARC. Such members
are to be subject to annual dues in an amount to be determined by the Board of
Directors. During the course of our engagement, it was noted, that MARC had
experienced certain organizational difficulties in recent years which resulted
In, among other things:
(1) Significant deterioration in the system of accounting and
recordkeeping.
(2) Loss of tax exempt status for income tax purposes.
(3) Failure to file income tax returns for certain years (Note 5) .
(4) Significant arrearages in payment of FICA and withheld taxes
(resulted tax levy of one of
n(5) Unauditablefl financial statements L MARChe forc k ertainy arsupriornts n �0)to
July 1 , 1979.
(6) Overall deterioration of the Marc general membership.
As a result of the above, MARC underwent, substantial reorganization during fiscal
year 1981 , which Included replacing substantially all key administrative personnel,
including the executive director. Since the reorganization, Management has taken
steps to correct deficiencies such as those noted above, in order to conduct
business according to legal and contractual requirements.
Note 2 - Bank Accounts
Prior to reorganization, Management maintained various MARC bank accounts. Such
bank accounts may have been mandated by contractual agreement with funding
agencies, etc. However, at present no reason can be found for maintaining
various bank accounts. Management has therefore condensed all such accounts
into a single operating account, subsequent to year end.
Note 9 - Property and Equipment
MARC activities are confined to social work In which depreciation Is not a factor.
Accordingly, no depreciation is provided for in the financial statements. Property
is carried at cost, until such time as It becomes useless or is disposed of.
Note 4 - Deposit of Pendleton House
During 1981 , MARC entered Into a lease agreement for property to be used as a
new group home for clients. Pursuant to such lease, MARC was required to place
monies in escrow for security, damage deposits, etc.
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Note 5 - Commitments and Contingencies
At present, there are negotiations in progress with the Internal Revenue
Service to settle unpaid employee withholdings. Also, according to internal
Revenue Service notices, MARC has not flied several years corporate income
tax returns and other required documents for which liability cannot be deter-
mined at_ this time.
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