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					     CATHOLIC CHARITIES OF THE
     ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT
              TRUST

CONSOLIDATED FINANCIAL STATEMENTS,
  SUPPLEMENTARY INFORMATION AND
   INDEPENDENT AUDITORS’ REPORT

       JUNE 30, 2012 AND 2011
TABLE OF CONTENTS

   INDEPENDENT AUDITORS’ REPORT. . . . . . . . . . . . . . . . . . . . . . . .                                   1-2

   FINANCIAL STATEMENTS
     Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . . .                       3
     Consolidated Statement of Activities and Changes in Net Assets for
      the Year Ended June 30, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 4
     Consolidated Statement of Activities and Changes in Net Assets for
      the Year Ended June 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 5
     Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . .                     6
     Consolidated Statement of Functional Expenses for the Year Ended
      June 30, 2012 ………………………………………………………. .                                                                     7
     Consolidated Statement of Functional Expenses for the Year Ended
      June 30, 2011. ………………………………………………………..                                                                     8
     Notes to Consolidated Financial Statements. . . . . . . . . . . . . . . . . . . . . .                       9-19

   SUPPLEMENTARY INFORMATION
    Consolidating Statements of Financial Position for June 30, 2012…….                                          20
    Consolidating Statement of Activities and Changes in Net Assets for
      the Year Ended June 30, 2012………………………………………...                                                             21
    Consolidating Statement of Cash Flows for the Year Ended
      June 30, 2012…………………………………………………………                                                                        22
    Consolidating Statements of Financial Position for June 30, 2011…….                                          23
    Consolidating Statement of Activities and Changes in Net Assets for
      the Year Ended June 30, 2011………………………………………..                                                              24
    Consolidating Statement of Cash Flows for the Year Ended
      June 30, 2011…………………………………………………………                                                                        25
    United Way Allocations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            26
    Schedule of Expenditures of Federal Awards and State Financial
      Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   27-28
    Schedule of Cost Center Actual Expenses and Revenues - Substance
      Abuse and Mental Health Services – Part I . . . . . . . . . . . . . . . . . . . . .                        29
    Schedule of Cost Center Actual Expenses and Revenues - Substance
      Abuse and Mental Health Services – Part II. . . . . . . . . . . . . . . . . . . . .                        30
    Schedule of State Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            31
    Note to the Schedule of State Earnings, Cost Center Actual Expenses
      and Revenues and Schedule of Expenditures of Federal Awards and
      State Financial Assistance . . . ………………………………………..                                                         32
    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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   33-34
    Independent Auditor’s Report on Compliance with Requirements that
      Could Have a Direct and Material Effect on each Major Federal
      Program and State Project and on Internal Control Over Compliance
      in Accordance with OMB Circular A-133 and Chapter 10.650, Rules
      of the Auditor General………………………………………………..                                                                 35-36
    Schedule of Findings and Questioned Costs – Federal Awards
      Programs and State Financial Assistance…………………………….                                                        37-38
                        INDEPENDENT AUDITORS’ REPORT


To the Board of Directors of
Catholic Charities of the Archdiocese of Miami, Inc.
and Catholic Charities Endowment Trust
Wilton Manors, Florida


We have audited the accompanying consolidated statements of financial position of
Catholic Charities of the Archdiocese of Miami, Inc. and Catholic Charities Endowment
Trust (collectively referred to as “Catholic Charities”), a nonprofit organization, as of
June 30, 2012 and 2011, and the related consolidated statements of activities, cash flows,
and functional expenses for the years then ended. These consolidated financial statements
are the responsibility of Catholic Charities’ management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We conducted our audits 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 audits to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and the significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in
all material respects, the financial position of Catholic Charities as of June 30, 2012 and
2011, and the changes in its net assets and its cash flows for the years then ended in
conformity with accounting principles generally accepted in the United States of
America.

In accordance with Government Auditing Standards, we have also issued our report dated
October 1, 2012, on our consideration of Catholic Charities’ internal control over
financial reporting and on 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 and should be
considered in assessing the results of our audit.
Our audits were conducted for the purpose of forming an opinion on the basic
consolidated financial statements of Catholic Charities taken as a whole. The
accompanying supplementary schedule of expenditures of federal awards and state
financial assistance as required by U.S. Office of Management and Budget Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter
10.650 Rules of the Auditor General of the State of Florida, the schedules of state
earnings, cost center actual expenses and revenues as required by the Florida Department
of Children and Families (the “Department”), Guide to Performance Contracting for
Alcohol, Drug Abuse and Mental Health Services, and the consolidating statements of
financial position and the related consolidating statements of activities and cash flows for
the years then ended June 30, 2012 and 2011 on pages 20-25 and the schedule of United
Way Allocations on page 26 are presented for purposes of additional analysis and are not
a required part of the financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and
other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with 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
financial statements as a whole.




                                                 CERTIFIED PUBLIC ACCOUNTANTS


Coral Gables, Florida
October 1, 2012
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


                                                                             June 30,
                                                                     2012               2011
                                                ASSETS

Cash and cash equivalents                                        $    5,386,680    $     4,197,414
Restricted and designated cash                                        1,287,939          1,022,324
Accounts receivable, net of allowance of $109,673 and $119,650
  Grants                                                              3,203,881          3,471,154
  Other                                                                  71,783             91,665
Prepaid expenses and other assets                                        64,381             66,435
Contribution receivable from trust, restricted                          465,000            465,000
Investments, including endowments                                     4,586,104          4,572,771
Property and equipment, net of accumulated
  depreciation of $8,959,660 and $10,091,848                          9,223,282         11,388,669
          TOTAL ASSETS                                           $   24,289,050    $    25,275,432


                                   LIABILITIES AND NET ASSETS

LIABILITIES
 Accounts payable and accrued expenses                           $      752,996    $       671,124
 Deferred revenue                                                       353,427            309,295
 Refundable advance                                                     175,000            175,000
 Note payable                                                         2,692,655          3,466,867
         TOTAL LIABILITIES                                            3,974,078          4,622,286

NET ASSETS
 Unrestricted                                                        15,211,205         15,504,576
 Temporarily restricted                                                 628,081            700,776
 Permanently restricted                                               4,475,686          4,447,794
         TOTAL NET ASSETS                                            20,314,972         20,653,146

         TOTAL LIABILITIES AND NET ASSETS                        $   24,289,050    $    25,275,432




The accompanying notes are an integral
 part of these financial statements.
                                                    3
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2012

                                                                     Temporarily     Permanently
                                                   Unrestricted       Restricted      Restricted          Total
REVENUE AND SUPPORT
 Contributions, foundations, trusts and bequests   $    1,414,977    $     5,045     $     27,892    $    1,447,914
 United Way                                               796,450            -                -             796,450
 Contributed facilities, goods and services             4,233,458            -                -           4,233,458
 Grants from government agencies                       21,827,229            -                -          21,827,229
 Program service fees                                     450,787            -                -             450,787
 Other income                                               9,907            -                -               9,907
 Investment income, net of fees                               -          115,017              -             115,017
 Net assets released from restrictions:                                                       -
   Satisfaction of program restrictions                   192,757        (192,757)            -                 -
          TOTAL REVENUE AND SUPPORT                    28,925,565         (72,695)         27,892        28,880,762

EXPENSES
 Program Services:
  Child care                                           12,759,896             -                -         12,759,896
  Community                                             8,167,140             -                -          8,167,140
  Preventative                                          4,311,059             -                -          4,311,059
 Supporting Activities:
  Administrative and fundraising                        2,988,499             -                -          2,988,499
        TOTAL EXPENSES                                 28,226,594             -                -         28,226,594

CHANGE IN NET ASSETS, before loss on disposal              698,971        (72,695)         27,892          654,168

Loss on disposal of property                             (992,342)            -                -           (992,342)

CHANGE IN NET ASSETS                                     (293,371)        (72,695)         27,892          (338,174)

NET ASSETS - Beginning of year                         15,504,576        700,776         4,447,794       20,653,146

NET ASSETS - End of year                           $ 15,211,205      $   628,081     $   4,475,686   $ 20,314,972




The accompanying notes are an integral
 part of these financial statements.
                                                       4
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2011

                                                                     Temporarily     Permanently
                                                   Unrestricted       Restricted      Restricted          Total
REVENUE AND SUPPORT
 Contributions, foundations, trusts and bequests   $      819,968    $    31,042     $     36,237    $      887,247
 United Way                                               969,872            -                -             969,872
 Contributed facilities, goods and services             4,642,117            -                -           4,642,117
 Grants from government agencies                       23,366,583            -                -          23,366,583
 Program service fees                                     498,167            -                -             498,167
 Other income                                              19,248            -                -              19,248
 Investment income, net of fees                               -          110,232              -             110,232
 Net assets released from restrictions:
   Satisfaction of program restrictions                   311,327        (311,327)            -                 -
          TOTAL REVENUE AND SUPPORT                    30,627,282        (170,053)         36,237        30,493,466

EXPENSES
 Program Services:
  Child care                                           13,827,887             -                -         13,827,887
  Community                                             8,336,033             -                -          8,336,033
  Preventative                                          4,745,246             -                -          4,745,246
 Supporting Activities:
  Administrative and fundraising                        3,322,668             -                -          3,322,668
        TOTAL EXPENSES                                 30,231,834             -                -         30,231,834

CHANGE IN NET ASSETS                                       395,448       (170,053)         36,237          261,632

NET ASSETS - Beginning of year                         15,109,128        870,829         4,411,557       20,391,514

NET ASSETS - End of year                           $ 15,504,576      $   700,776     $   4,447,794   $ 20,653,146




The accompanying notes are an integral
 part of these financial statements.
                                                       5
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                          June 30,
                                                                   2012               2011
CASH FLOWS FROM OPERATING ACTIVITIES
 Change in net assets                                         $ (338,174)       $     261,632
 Adjustment to reconcile change in net cash
  provided by operating activities:
    Depreciation expense                                          1,204,168          1,068,222
    Loss on disposal of fixed assets                                992,342             13,161
    Unrealized/realized loss (gain) on investments                    9,646            (43,529)
    Gain on fair value of contribution trust receivable                   -            (15,000)
    Increase (reduction) of allowance for doubtful accounts          (9,977)            26,914
    (Increase) Decrease in assets:
      Accounts receivable                                          297,132           1,135,738
      Prepaid expenses and other assets                              2,054               1,420
    (Decrease) Increase in liabilities:
      Accounts payable and accrued expenses                          81,872           (142,519)
      Deferred revenue                                               44,132           (152,688)
         Total adjustments                                        2,621,369          1,891,719
         NET CASH PROVIDED BY OPERATING ACTIVITIES                2,283,195          2,153,351

CASH FLOWS FROM INVESTING ACTIVITIES
 Proceeds from sale of assets                                      545,277                  -
 Net (purchases) proceeds of investments                           (22,979)           (37,519)
 Purchase of property and equipment                               (576,400)          (836,487)
         NET CASH USED IN INVESTING ACTIVITIES                     (54,102)          (874,006)

CASH FLOWS FROM FINANCING ACTIVITIES
 Payments on borrowings                                           (774,212)          (296,716)
       NET CASH USED IN FINANCING ACTIVITIES                      (774,212)          (296,716)

NET INCREASE IN CASH AND CASH EQUIVALENTS                         1,454,881           982,629

CASH AND CASH EQUIVALENTS - Beginning of year                     5,219,738          4,237,109

CASH AND CASH EQUIVALENTS - End of year                       $ 6,674,619       $ 5,219,738


         Cash and cash equivalents                            $ 5,386,680       $ 4,197,414
         Restricted and designated cash                         1,287,939         1,022,324
                                                              $ 6,674,619       $ 5,219,738

Supplemental disclosures of cash flow information:
 Cash payments for interest                                   $    191,775      $     208,771

The accompanying notes are an integral
 part of these financial statements.
                                                     6
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2012

                                                                                                   Total       Administrative
                                                  Child Care    Community       Preventative      Program          and
                                                   Services      Services         Services        Services      Fundraising        Total
Personnel Expenses:
 Salaries and payroll taxes                   $     6,192,424   $   2,562,614   $   1,493,255   $ 10,248,293   $   1,590,788    $ 11,839,081
 Pension and health insurance benefits              1,416,490         535,619         265,269      2,217,378         258,884       2,476,262
          Total Personnel Expenses                  7,608,914       3,098,233       1,758,524     12,465,671       1,849,672      14,315,343

Specific assistance                                   897,022       1,629,552       1,478,871      4,005,445        128,623        4,134,068
Conferences, meetings and dues                         18,725          36,816          42,796         98,337          7,137          105,474
Insurance                                             203,630         155,057          75,328        434,015         27,641          461,656
Professional fees                                      46,734         488,439          95,249        630,422         99,778          730,200
Rent and utilities                                    461,749         353,283         272,985      1,088,017         24,663        1,112,680
Inkind expenses                                     2,464,828       1,328,050         338,100      4,130,978        102,480        4,233,458
Repairs and maintenance                               397,181         332,954          84,784        814,919         59,534          874,453
Supplies                                               94,409         108,869          20,560        223,838         29,513          253,351
Telephone                                              49,886          73,681          24,410        147,977         49,260          197,237
Transportation                                         26,696          63,684          25,356        115,736         33,767          149,503
Interest and fees                                         721           2,290             308          3,319        193,086          196,405
Miscellaneous                                          44,263          14,937           6,095         65,295        193,303          258,598

         Total expenses before depreciation        12,314,758       7,685,845       4,223,366     24,223,969       2,798,457      27,022,426

Depreciation                                         445,138         481,295          87,693       1,014,126        190,042        1,204,168

         Total expenses                       $ 12,759,896      $   8,167,140   $   4,311,059   $ 25,238,095   $   2,988,499    $ 28,226,594




The accompanying notes are an integral
 part of these financial statements.
                                                                      7
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2011

                                                                                                   Total       Administrative
                                                  Child Care    Community       Preventative      Program          and
                                                   Services      Services         Services        Services      Fundraising        Total
Personnel Expenses:
 Salaries and payroll taxes                   $     6,469,948   $   3,047,211   $   1,582,071   $ 11,099,230   $   1,681,160    $ 12,780,390
 Pension and health insurance benefits              1,505,074         649,077         298,677      2,452,828         249,645       2,702,473
          Total Personnel Expenses                  7,975,022       3,696,288       1,880,748     13,552,058       1,930,805      15,482,863

Specific assistance                                   988,513       1,512,331       1,723,728      4,224,572        172,426        4,396,998
Conferences, meetings and dues                         14,524          22,560           6,559         43,643         17,190           60,833
Insurance                                             222,458         176,822          89,055        488,335         18,040          506,375
Professional fees                                      67,445         177,524         122,522        367,491        201,315          568,806
Rent and utilities                                    387,796         386,214         304,563      1,078,573         37,784        1,116,357
In-kind expenses                                    2,873,487       1,328,050         338,100      4,539,637        102,480        4,642,117
Repairs and maintenance                               571,538         322,103          90,251        983,892         77,586        1,061,478
Supplies                                              163,970          95,689          25,440        285,099         29,695          314,794
Telephone                                              46,522          81,639          29,270        157,431         44,540          201,971
Transportation                                         39,118          76,805          31,871        147,794         42,279          190,073
Interest and fees                                       1,724           5,420             473          7,617        208,771          216,388
Miscellaneous                                         100,235          39,810           7,290        147,335        257,224          404,559

         Total expenses before depreciation        13,452,352       7,921,255       4,649,870     26,023,477       3,140,135      29,163,612

Depreciation                                         375,535         414,778          95,376         885,689        182,533        1,068,222

         Total expenses                       $ 13,827,887      $   8,336,033   $   4,745,246   $ 26,909,166   $   3,322,668    $ 30,231,834




The accompanying notes are an integral
 part of these financial statements.
                                                                      8
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Operations
Catholic Charities of the Archdiocese of Miami, Inc. was organized under the laws of the state of Florida on
October 31, 1967, as a nonprofit corporation with the purpose of meeting the ever changing needs of the
communities of Broward, Miami-Dade and Monroe counties, of Florida. Catholic Charities operates under the
sponsorship of Archbishop of the Archdiocese of Miami (the “Archdiocese”). These consolidated financial
statements also include the assets, liabilities, net assets and operations of Catholic Charities Endowment Trust.
(See Note 12) Collectively, these financial statements are referred to as “Catholic Charities”.

Catholic Charities provides the following services in three counties and in 25 separate locations:

Child Care – Provides quality and comprehensive education and social services to economically disadvantaged
children and their families. Social services, referrals and information are also offered to parents.

Community Services – Provides a variety of community based social services, such as refugee resettlement, job
development, elderly services and emergency assistance.

Preventative Services – Provides housing/shelter and mental health services such as substance abuse
rehabilitation, family and individual counseling, in addition to HIV/AIDS and substance abuse education and
prevention workshops.

As of February 2008, Catholic Charities obtained control of the Catholic Charities Endowment Trust (the
“Trust”) through its control of the governing board of the Trust. As a result of this control, in addition to
Catholic Charities’ economic interest in the Trust, these consolidated financial statements include the balances
and financial activities of Catholic Charities and the Trust and all inter-entity accounts and transactions have
been eliminated.

Basis of Presentation
The consolidated financial statements have been prepared on the accrual basis of accounting and in accordance
with generally accepted accounting principles in the United States of America (“U.S. GAAP”). In September
2009, the Financial Accounting Standards Board (“FASB”) implemented the Accounting Standards
Codification (“ASC”) which establishes FASB ASC as the source of authoritative U.S. accounting and
reporting standards for nongovernmental entities. Presented below is a summary of significant accounting
principles followed in the preparation of the accompanying financial statements.

Basis of Accounting
These consolidated financial statements are presented in accordance with FASB ASC. Under this interpretation,
Catholic Charities is required to report information regarding its financial position and activities according to
three classes of net assets as follows:




                                                        9
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Unrestricted Net Assets – includes those net assets whose use is not restricted by donors, even though their use
may be limited in other respects, such as by contract or by board designation. Changes in net assets arising
from exchange transactions (except income and gains on assets that are restricted by donors or by law) are
included in the unrestricted class.

Temporarily Restricted Net Assets – includes those net assets whose use by Catholic Charities has been limited
by donors to either later periods of time or after specified dates or specified purposes. At June 30, 2012 and
2011, there were temporarily restricted net assets of $628,081 and $700,776, respectively.

Permanently Restricted Net Assets – are those net assets that must be maintained by Catholic Charities in
perpetuity. Permanently restricted net assets increase when the organization receives contributions for which
donor-imposed restrictions limiting the organization’s use of an asset or its economic benefits neither expire
with the passage of time nor can be removed by the organization meeting certain requirements. At June 30,
2012 and 2011, there were permanently restricted net assets of $4,475,686 and $4,447,794, respectively.

Cash and Cash Equivalents
Cash equivalents consist of cash in banks and highly liquid investments with original maturities of three
months. Catholic Charities maintains its cash and cash equivalents with high credit quality financial institutions,
which at times may exceed federally insured limits. Catholic Charities has not experienced any losses on such
accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Restricted and Designated Cash
Restricted and designated cash is primarily composed of amounts held with respect to a capital expansion
program and other restricted purposes. Restricted and designated cash at June 30, 2012 and 2011, were
$1,287,939 and $1,022,324, respectively.

Investments
Investments in equity securities with readily determinable fair values and all debt securities are recorded at fair
value with gains and losses reported in the consolidated statement of activities. Donated investments are
recorded at fair value at the date of donation and thereafter carried in conformity with the stated policy.

Accounts Receivable
Accounts receivable consist primarily of amounts due from grantors under Catholic Charities’ grant agreements.
Accounts receivable are stated at estimated net realizable value. The allowance for doubtful accounts was
$109,673 and $119,650 for the years ended June 30, 2012 and 2011, respectively.

Property and Equipment
Property, equipment and leasehold improvements are stated at cost, net of accumulated depreciation.
Depreciation is provided on the straight-line method over the estimated useful lives of the assets. Depreciation
is computed based on useful lives ranging from three to twenty years. Catholic Charities capitalized all
expenditures for property, equipment and leasehold improvements of $500 or greater for the years ended June
30, 2012 and 2011. Property, equipment and leasehold improvements are recorded at cost or, if donated, at the
approximate fair market value at the date of donation. Maintenance and repairs which do not extend the lives of
the respective assets are charged to expense when incurred. Additions and major improvements are capitalized.




                                                        10
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Contributed Facilities, Goods and Services
Property and Equipment – Donations of property, equipment or leasehold improvements are recorded as
contributions at their estimated value at the date of the donation. Such donations are reported as increases in
unrestricted net assets unless the donor has restricted the donated asset to a specific purpose. Absent donor
stipulations Catholic Charities reports the assets as unrestricted. Catholic Charities recorded $3,260,647 and
$3,260,645, for each of the years ended June 30, 2012 and 2011, in contributed facilities. See Note 6 Related
Parties for further information regarding in-kind facilities contributed.

Services – Donated services are recognized as contributions in accordance with FASB ASC Accounting for
Contributions Received and Made, if the services (a) create or enhance non financial assets or (b) require
specialized skills, are performed by people with those skills, and would otherwise be purchased. Catholic
Charities recorded $972,811 and $1,381,472 for the years ended June 30, 2012 and 2011, respectively.

Grants from Government Agencies
Grants from government agencies are recognized as revenue when the grant funds have been expended in
accordance with the grant provisions.

Concentrations
Catholic Charities received approximately 76% and 77% of total revenues from federal, state and local
government grants for each of the years ended June 30, 2012 and 2011, respectively.

Estimates
The preparation of the consolidated financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that affect the reported
amounts and disclosures at the date of the consolidated financial statements. Actual results could differ from
those estimates.

Expenses Allocation
The costs of providing various programs and other activities have been summarized on a functional basis in the
Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been
allocated among the programs and supporting services benefited.

Income Tax Status
Catholic Charities is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.
However, income from certain activities not directly related to Catholic Charities’ tax-exempt purpose is subject
to taxation as unrelated business income. In addition, Catholic Charities qualified for the charitable
contribution deduction under Section 170(b)(1)(A) and has been classified as an organization other than a
private foundation member under Section 509(a)(2).




                                                       11
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subsequent Events
Catholic Charities has evaluated subsequent events through October 1, 2012, which is the date the financial
statements were available to be issued.

Accounting for Uncertainty in Income Taxes
The FASB ASC interpretation prescribes a recognition threshold and measurement attribute for the financial
statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This
interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition.

This interpretation must be applied to all existing tax positions. The cumulative effect, if any, is to be reported
as an adjustment to opening net assets. This interpretation will require management of Catholic Charities to
analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes
federal and certain states. Open tax years are those that are open for examination by taxing authorities (i.e.,
generally the last four tax year ends and the interim tax period since then). Catholic Charities has no
examinations in progress. Management believes that this does not have an effect on its financial statements.

NOTE 2 - INVESTMENTS
Investments reported at fair value consist of the following at June 30, 2012:

                                                                  2012              2011
                               Certificates of deposit        $   1,197,105     $     709,028
                               U.S. government bonds              2,373,953         2,102,625
                               Equities                             433,904               -
                               Corporate fixed income               486,857           931,002
                               Cash and money market                 94,285           830,116
                                                              $   4,586,104     $   4,572,771


Investment income is reported in the statement of activities as follows:
                                                                 2012               2011
                             Interest and dividends, net $          124,663     $    153,761
                             Unrealized/realized
                             gains (losses)                          (9,646)          (43,529)
                                                           $        115,017     $     110,232




                                                         12
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 3 – CONTRIBUTION RECEIVABLE FROM TRUST
Boystown of Florida, a program of Catholic Charities, is the beneficiary of the John A Shubert Charitable Trust,
(the “Trust”), an irrevocable trust. The irrevocable trust is administered by a trustee according to the terms of
the Indenture of Trust. The terms of the agreement provides that the beneficiary receive the net income of the
Trust annually through termination of the Trust in the year 2021. The agreement also provides that the trustee
shall be reimbursed for reasonable expenses incurred in the management and protection of the Trust. Upon the
termination of the agreement, based on the above provisions, the beneficiary will receive the assets remaining in
the Trust.

The trust receivable is valued at the net present value of the estimated future benefit to be received discounted at
4%. The net present value of the irrevocable trust is as follows:

                                                                     2012               2011
                   Contributions Receivable from
                   Irrevocable trust                          $        465,000     $      465,000


NOTE 4 – PROPERTY AND EQUIPMENT
The major classifications of property and equipment consist of the following:

                                                                   2012              2011
                Leasehold improvements                   $         5,961,074     $   9,348,954
                Building and improvements                          7,690,843         7,803,756
                Furntiure, computers and equipment                 3,669,512         3,482,229
                Vehicles                                             143,899           127,964
                Construction in progress                             717,614           717,614
                                                                  18,182,942        21,480,517
                Less: Accumulated depreciation                    (8,959,660)      (10,091,848)
                 Property and equipment, net             $         9,223,282     $ 11,388,669


A substantial portion of Catholic Charities’ buildings and improvements are located on properties owned by the
Archdiocese. Therefore, Catholic Charities’ investment in such buildings and improvements may be adversely
effected should the Archdiocese decide to change the use of these properties. The Archdiocese has a long-term
commitment for the continuance of Catholic Charities’ activities. During the year, the Archdiocese sold certain
property being used by Catholic Charities. From this sale, Catholic Charities received a portion of the proceeds
in the amount of $545,277. Previously capitalized fixed assets were disposed of and Catholic Charities
recognized a loss on disposal of property of $992,342 after the receipt of the proceeds.

A portion of Catholic Charities’ property and equipment has been acquired with grant funds. Although many
grantor agencies reserve the right to request the assets be returned, Catholic Charities has capitalized the assets
since it is probable that it will be allowed to keep them or most likely will use the assets until fully depreciated.

For the years ended June 30, 2012 and 2011, depreciation expense was $1,204,168 and $1,068,222,
respectively.



                                                         13
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 5 – NOTES PAYABLE
Catholic Charities has a loan payable with a financial institution. For the year ended June 30, 2012 and 2011,
the total outstanding balance on this loan was $2,692,655 and $3,466,867, respectively.

The terms of the loan payable agreement consist of 59 monthly payments of principal and interest of $38,916
beginning August 15, 2009 and a final payment equal to the unpaid principal balance plus any accrued and
unpaid interest on July 15, 2014. The note bears interest at a fixed rate of 5.67% and is guaranteed by the
Archdiocese of Miami.

Notes payable repayments are due as follows:
                                     June 30,
                                       2013   $ 288,485
                                       2014       305,274
                                       2015     2,098,896
                                       Total  $ 2,692,655

NOTE 6 – RELATED PARTIES
Archdiocese of Miami – Catholic Charities receives its charter and by-laws via the Archbishop and the
Archdiocese of Miami. Catholic Charities and the Archdiocese have some mutual board members, including
certain managers of the Archbishop that also serve on the board. Catholic Charities participates in certain
benefit plans of the Archdiocese (see Note 7 Employee Benefits Plan). During the years ended June 30, 2012
and 2011, Catholic Charities received in-kind rent of $3,260,647 and $3,260,645, respectively.

NOTE 7 – EMPLOYEE BENEFIT PLANS
Catholic Charities participates in the health and welfare plan and the defined-benefit plan (the “Plan”)
sponsored by the Archdiocese. Employees must meet certain eligibility requirements to participate in the plans.
Since the computed value of vested benefits and plan assets for employees of Catholic Charities cannot be
segregated from those of other entities participating in the Plan, it is not possible to determine that portion of the
excess or deficit, if any, which may be attributable to Catholic Charities.

Payments to the Plan and the health and welfare plan for the years ended June 30, 2012 and 2011 were as
follows:
                                                         2012             2011
              Pension plan                         $       942,751 $         960,331
              Health and welfare plan and other    $     1,533,511 $       1,742,142

NOTE 8 – COMMITMENTS AND CONTINGENCIES
Operating Leases
Catholic Charities conducts certain operations in leased facilities or uses equipment under operating leases
expiring at various times with varying renewal options. The total rent expense pursuant to these leases
amounted to $547,357 and $548,174 for the years ended June 30, 2012 and 2011, respectively.




                                                         14
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 8 – COMMITMENTS AND CONTINGENCIES (Continued)
Future minimum payments under operating leases at June 30, 2012 are as follows:
                                  June 30,
                                    2013     $ 570,443
                                    2014          520,382
                                    2015          474,761
                                    2016          194,019
                                    2017          199,840

Support from Outside Agencies
Financial awards from federal, state and local governmental entities in the form of grants are subject to special
audit. Such audits could result in claims against Catholic Charities for disallowed costs or noncompliance with
grantor restrictions. No provision has been made for any liabilities that may arise from such audits since the
amounts, if any, cannot be determined. However, management is of the opinion that no material liability will
result from such audits.

NOTE 9 – TEMPORARILY AND PERMANENTLY RESTRICTED NET ASSETS
Temporarily restricted net assets, which are held in cash contribution receivables and investments, are available
for the following program services at June 30, 2012 and 2011:

                                                             2012               2011
               Boystown of Florida-Contribution
               receivable from trust                    $      465,000    $       465,000
               Disaster response, restricted cash               38,308             46,486
               Haiti disaster relief, restricted cash           32,273            117,787
               Other, investments                               92,500             71,503
                                                        $      628,081    $       700,776


Permanently restricted net assets of $4,475,686 and $4,447,794 as of June 30, 2012 and 2011, respectively, are
held in investments. (See Note 12)

NOTE 10 – CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject Catholic Charities to concentrations of credit risk consist
principally of cash and cash equivalent accounts in financial institutions. Cash and cash equivalents did not
exceed federally insured limits of $250,000 at June 30, 2012.

NOTE 11– FAIR VALUE MEASUREMENTS
Catholic Charities classified its investments as of June 30, 2012 and 2011, based upon an established fair value
hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists
of three broad levels:




                                                        15
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 11– FAIR VALUE MEASUREMENTS (Continued)

Level 1 – asset value is based on actual quoted prices in active markets for identical securities (mark-to-market).

Level 2 – other significant observable inputs are used to arrive at fair value (including yield, quality, coupon
rate, maturity, issue type, quoted prices for similar securities, prepayment speeds, trading characteristics, etc.).

Level 3 – significant unobservable inputs (including management’s own assumptions in determining the fair
value of investments).

Catholic Charities uses appropriate valuation techniques based on the available inputs to measure the fair value
of its investments. When available, Catholic Charities measures fair value using Level 1 inputs because they
generally provide the most reliable evidence of fair value. Level 3 inputs were used only when Level 1 or Level
2 inputs were not available.

The fair values of Catholic Charities’ assets measured on a recurring basis at June 30, 2012 are as follows:

                                                             Fair Value Measurements Using:

                                                Quoted Prices in
                                                Active Markets      Significant Other        Significant
                                                  for Identical     Observable Inputs       Unobservable
Assets                         Fair Value       Assets (Level 1)        (Level 2)         Inputs (Level 3)
Cash and money market        $       94,285     $        94,285     $             -       $            -
Certificates of deposit           1,197,105           1,197,105                   -                    -
Equities                            433,904             433,904                   -                    -
U.S. government bonds             2,373,953           2,373,953                   -                    -
Corporate fixed income              486,857             486,857                   -                    -
Contribution receivable
from irrevocable trust               465,000                -                     -                465,000
                             $     5,051,104     $    4,586,104     $             -       $        465,000




                                                        16
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 11– FAIR VALUE MEASUREMENTS (Continued)
The fair values of Catholic Charities’ assets measured on a recurring basis at June 30, 2011 are as follows:

                                                             Fair Value Measurements Using:

                                                Quoted Prices in
                                                Active Markets      Significant Other         Significant
                                                  for Identical     Observable Inputs        Unobservable
Assets                      Fair Value          Assets (Level 1)        (Level 2)          Inputs (Level 3)
Cash and money market        $      830,116     $       830,116     $             -        $            -
Certificates of deposit             709,028             709,028                   -                     -
U.S. government bonds             2,102,625           2,102,625                   -                     -
Corporate fixed income              931,002             931,002                   -                     -
Contribution receivable
from irrevocable trust               465,000                -                      -               465,000
                             $     5,037,771     $    4,572,771      $             -       $       465,000

Fair value for investments are determined by reference to quoted market prices and other relevant information
generated by market transactions. The fair value of the charitable remainder annuity trust is estimated as the
present value of expected future cash inflows.

Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

     Contribution receivable-charitable remainder trust             2012                           2011
     Beginning Balance                                       $        465,000               $        450,000
     Change in value of split-interest agreement                          -                           15,000
     Ending Balance                                          $        465,000               $        465,000

The change in value of the split-interest agreement of $0 and $15,000 for the years ended 2012 and 2011,
respectively, are attributed to the revaluation of the contribution receivable-charitable remainder trust based on
applicable mortality tables and current market condition and is included in the change in temporarily restricted
net assets.

NOTE 12 – ENDOWMENT TRUST
Catholic Charities’ endowment consists of individual funds established for a variety of purposes. Its endowment
includes both donor-restricted endowment funds and funds designated by the Board to function as endowments.
As required by GAAP, net assets associated with endowment funds, including funds designated by the Board to
function as endowments, are classified and reported based on the existence or absence of donor-imposed
restrictions.

The Board has interpreted the Uniform Prudent Management of Institutional Funds Ad (UPMIFA) as requiring
the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds
absent explicit donor stipulations to the contrary. As a result of this interpretation, Catholic Charities classifies
as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the
original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent
endowment made in accordance with the direction of the applicable donor gift instrument at the time the
accumulation is added to the fund.
                                                          17
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 12 – ENDOWMENT TRUST (Continued)
The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted
net assets is classified as temporarily restricted net assets and maintained as such for appropriation for
expenditure by Catholic Charities in a manner consistent with the standard of prudence prescribed by UPMIFA
and donors’ restrictions on use. In accordance with UPMIFA, the Foundation considers the following factors in
making a determination to appropriate or accumulate donor-restricted endowment funds:

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

Endowment net assets at June 30, 2012 and 2011 consisted of the following:

                                                                      June 30, 2012
                                                                Temporarily Permanently
                                                Unrestricted     Restricted     Restricted       Total
Donor-restricted endowment funds               $          -     $ 92,500 $ 4,475,686          $ 4,568,186
Board designated endowment funds                          -             -               -              -
                                               $          -     $ 92,500 $ 4,475,686          $ 4,568,186


                                                                      June 30, 2011
                                                                Temporarily Permanently
                                                Unrestricted     Restricted     Restricted       Total
Donor-restricted endowment funds               $          -     $ 71,503 $ 4,447,794          $ 4,519,297
Board designated endowment funds                          -             -               -              -
                                               $          -     $ 71,503 $ 4,447,794          $ 4,519,297




                                                      18
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2012 AND 2011

NOTE 12 – ENDOWMENT TRUST (Continued)
Changes in endowment net assets for the year ended June 30, 2012 and 2011 were as follows:

                                                                       June 30, 2012
                                                                 Temporarily Permanently
                                                Unrestricted      Restricted     Restricted        Total
Endowment net assets, beginning of year        $          -      $ 71,503 $ 4,447,794           $ 4,519,297

Investment income, net of fees                             -         124,663             -          124,663
Net appreciation (realized and unrealized)                 -          (9,646)            -           (9,646)
Total investment return                                    -         115,017             -          115,017

Contributions                                              -              -          27,892           27,892
Distributions                                              -          (94,020)          -            (94,020)

Endowment net assets, end of year              $           -     $    92,500     $ 4,475,686    $ 4,568,186


                                                                       June 30, 2011
                                                                 Temporarily Permanently
                                                Unrestricted      Restricted     Restricted         Total
Endowment net assets, beginning of year        $          -      $ 92,885 $ 4,411,557            $ 4,504,442

Investment income, net of fees                             -         153,761             -           153,761
Net appreciation (realized and unrealized)                 -         (43,529)            -           (43,529)
Total investment return                                    -         110,232             -           110,232

Contributions                                              -              -           36,237          36,237
Distributions                                              -         (131,614)           -          (131,614)

Endowment net assets, end of year              $           -     $    71,503     $ 4,447,794     $ 4,519,297

Funds with Deficiencies
From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall
below the level that the donor or UPMIFA requires Catholic Charities to retain as a fund of perpetual duration.
In accordance with GAAP, deficiencies of this nature are reported in unrestricted net assets. There were no
such deficiencies as of June 30, 2012 and 2011.




                                                      19
SUPPLEMENTARY INFORMATION
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2012

                                                              ASSETS
                                                             Catholic Charities         Catholic Charities        Consolidating
                                                              of the ADOM               Endowment Trust             Entries             Totals

  Cash and cash equivalents                              $              5,386,680   $                   -     $              -      $     5,386,680
  Restricted and designated cash                                        1,287,939                       -                    -            1,287,939
  Accounts receivable, net
     Grants                                                             3,203,881                       -                    -            3,203,881
     Other                                                                 89,701                       -                (17,918)            71,783
  Prepaid expenses and other assets                                        64,381                       -                    -               64,381
  Contribution receivable from trust, restricted                          465,000                       -                    -              465,000
  Investments, including Endowments                                           -                   4,586,104                  -            4,586,104
  Property and equipment, net                                           9,223,282                       -                    -            9,223,282
            TOTAL ASSETS                                 $             19,720,864   $             4,586,104   $          (17,918)   $    24,289,050

                                                   LIABILITIES AND NET ASSETS
LIABILITIES
  Accounts payable and accrued expenses                  $                752,996   $                17,918   $          (17,918)   $       752,996
  Deferred revenue                                                        353,427                       -                    -              353,427
  Refundable advance                                                      175,000                       -                    -              175,000
  Note payable                                                          2,692,655                       -                    -            2,692,655
           TOTAL LIABILITIES                                            3,974,078                    17,918              (17,918)         3,974,078

NET ASSETS

  Unrestricted                                                         15,211,205                       -                    -           15,211,205
  Temporarily restricted                                                  535,581                    92,500                  -              628,081
  Permanently restricted                                                      -                   4,475,686                  -            4,475,686
            TOTAL NET ASSETS                                           15,746,786                 4,568,186                  -           20,314,972
            TOTAL LIABILITIES AND NET ASSETS             $             19,720,864   $             4,586,104   $          (17,918)   $    24,289,050




                                                                 20
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2012

                                                   Catholic Charities        Catholic Charities       Consolidating
                                                    of the ADOM              Endowment Trust            Entries             Totals
REVENUES AND SUPPORT
 Contributions, foundations, trusts and bequests    $     1,514,042      $               27,892   $          (94,020)   $    1,447,914
 United Way                                                 796,450                         -                    -             796,450
 Contributed facilities, goods and services               4,233,458                         -                    -           4,233,458
 Grants from government agencies                         21,827,229                         -                    -          21,827,229
 Program service fees                                       450,787                         -                    -             450,787
 Other income                                                 9,907                         -                    -               9,907
 Investment income, net of fees                                 -                       115,017                  -             115,017
            TOTAL REVENUE AND SUPPORT                    28,831,873                     142,909              (94,020)       28,880,762

EXPENSES
 Program Services:
  Child care                                             12,759,896                         -                    -          12,759,896
  Community                                               8,167,140                      94,020              (94,020)        8,167,140
  Preventative                                            4,311,059                         -                    -           4,311,059
 Supporting Activites:
  Administrative and fundraising                          2,988,499                         -                    -           2,988,499
           TOTAL EXPENSES                                28,226,594                      94,020              (94,020)       28,226,594

CHANGE IN NET ASSETS, before loss on disposal                605,279                     48,889                  -             654,168

Loss on disposal of property                                 (992,342)                       -                   -            (992,342)

CHANGE IN NET ASSETS                                         (387,063)                   48,889                  -            (338,174)

NET ASSETS - beginning of year                           16,133,849                   4,519,297                  -          20,653,146

NET ASSETS - end of year                            $    15,746,786      $            4,568,186   $              -      $   20,314,972




                                                        21
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2012

                                                                                  Catholic
                                                                 Catholic         Charities
                                                              Charities of the   Endowment          Consolidating
                                                                 ADOM              Trust              Entries             Totals
CASH FLOWS FROM OPERATING EXPENSES
 Change in net assets                                         $     (387,063)    $    48,889    $              -      $    (338,174)
 Adjustments to reconcile change in net cash
  provided by operating activities:
   Depreciation expense                                            1,204,168             -                     -          1,204,168
   Loss on disposal of property                                      992,342             -                     -            992,342
   Unrealized and realized losses on investments                         -             9,646                   -              9,646
   Gain on fair value of contribution trust receivable                   -               -                     -                -
   Reduction of allowance for doubtful accounts                       (9,977)            -                     -             (9,977)
 (Increases) Decreases in operating assets:
   Accounts receivable                                              332,688              -                 (35,556)         297,132
   Prepaid expenses and other assets                                  2,054              -                     -              2,054
 Increases (Decreases) in operating liabilities:
   Accounts payable and accrued expenses                              81,872         (35,556)              35,556            81,872
   Deferred revenue                                                   44,132             -                    -              44,132
            NET CASH PROVIDED BY OPERATING ACTIVITIES              2,260,216          22,979                  -           2,283,195

CASH FLOWS FROM INVESTING ACTIVITIES
 Proceeds from sale of assets                                        545,277             -                     -            545,277
 Net purchases of investments                                            -           (22,979)                  -            (22,979)
 Acquisition of property and equipment                              (576,400)            -                     -           (576,400)
           NET CASH USED IN INVESTING ACTIVITIES                     (31,123)        (22,979)                  -            (54,102)

CASH FLOWS FROM FINANCING ACTIVITIES
 Payments on borrowings                                             (774,212)            -                     -           (774,212)
          NET CASH USED IN FINANCING ACTIVITIES                     (774,212)            -                     -           (774,212)

NET INCREASE IN CASH                                               1,454,881             -                     -          1,454,881

CASH AT BEGINNING OF YEAR                                          5,219,738             -                     -          5,219,738

CASH AT END OF YEAR                                            $   6,674,619     $       -      $              -      $   6,674,619




                                                         22
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2011

                                                             ASSETS



                                                         Catholic Charities of the       Catholic Charities        Consolidating
                                                                 ADOM                    Endowment Trust             Entries             Totals

  Cash and cash equivalents                              $              4,197,414    $                   -     $              -      $    4,197,414
  Restricted and designated cash                                        1,022,324                        -                    -           1,022,324
  Accounts receivable, net
     Grants                                                            3,471,154                        -                     -           3,471,154
     Other                                                               145,139                        -                 (53,474)           91,665
  Prepaid expenses and other assets                                       66,435                        -                     -              66,435
  Contribution receivable from trust, restricted                         465,000                        -                     -             465,000
  Investments, including endowments                                          -                    4,572,771                   -           4,572,771
  Property and equipment, net                                         11,388,669                        -                     -          11,388,669
            TOTAL ASSETS                                 $            20,756,135     $            4,572,771    $          (53,474)   $   25,275,432

                                                   LIABILITIES AND NET ASSETS
LIABILITIES
  Accounts payable and accrued expenses                  $                671,124    $                53,474   $          (53,474)   $      671,124
  Deferred revenue                                                        309,295                        -                    -             309,295
  Refundable advance                                                      175,000                        -                    -             175,000
  Note payable                                                          3,466,867                        -                    -           3,466,867
           TOTAL LIABILITIES                                            4,622,286                     53,474              (53,474)        4,622,286

NET ASSETS
 Unrestricted                                                         15,504,576                        -                     -          15,504,576
 Temporarily restricted                                                  629,273                     71,503                   -             700,776
  Permanently restricted                                                     -                    4,447,794                   -           4,447,794
           TOTAL NET ASSETS                                           16,133,849                  4,519,297                   -          20,653,146
            TOTAL LIABILITIES AND NET ASSETS             $            20,756,135     $            4,572,771    $          (53,474)   $   25,275,432




                                                                 23
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2011




                                                   Catholic Charities       Catholic Charities       Consolidating
                                                    of the ADOM             Endowment Trust            Entries             Totals
REVENUES AND SUPPORT
 Contributions, foundations, trusts and bequests   $        982,624     $               36,237   $         (131,614)   $      887,247
 United Way                                                 969,872                        -                    -             969,872
 Contributed facilities, goods and services               4,642,117                        -                    -           4,642,117
 Grants from government agencies                         23,366,583                        -                    -          23,366,583
 Program service fees                                       498,167                        -                    -             498,167
 Other income                                                19,248                        -                    -              19,248
 Investment income, net of fees                                 -                      110,232                  -             110,232
            TOTAL REVENUE AND SUPPORT                    30,478,611                    146,469             (131,614)       30,493,466

EXPENSES
 Program Services:
  Child care                                             13,827,887                        -                    -          13,827,887
  Community                                               8,336,033                    131,614             (131,614)        8,336,033
  Preventative                                            4,745,246                        -                    -           4,745,246
 Supporting Activites:
  Administrative and fundraising                          3,322,668                        -                    -           3,322,668
           TOTAL EXPENSES                                30,231,834                    131,614             (131,614)       30,231,834

CHANGE IN NET ASSETS                                        246,777                     14,855                  -             261,632

NET ASSETS - beginning of year                           15,887,072                  4,504,442                  -          20,391,514

NET ASSETS - end of year                           $     16,133,849     $            4,519,297   $              -      $   20,653,146




                                                       24
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
AND CATHOLIC CHARITIES ENDOWMENT TRUST
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2011

                                                                                  Catholic
                                                                 Catholic         Charities
                                                              Charities of the   Endowment            Consolidating
                                                                 ADOM              Trust                Entries               Totals
CASH FLOWS FROM OPERATING EXPENSES
 Change in net assets                                         $     246,777      $    14,855      $              -        $     261,632
 Adjustments to reconcile change in net cash
  provided by operating activities:
   Depreciation expense                                            1,068,222               -                          -       1,068,222
   Loss on disposal of fixed assets                                   13,161               -                          -          13,161
   Unrealized and realized gains on investments                            -         (43,529)                         -         (43,529)
   Gain on fair value of contribution trust receivable               (15,000)              -                          -         (15,000)
   Increase of allowance for doubtful accounts                        26,914               -                          -          26,914
 (Increases) Decreases in operating assets:
   Accounts receivable                                             1,069,545          32,859                 33,334           1,135,738
   Prepaid expenses and other assets                                   1,420               -                      -               1,420
 Increases (Decreases) in operating liabilities:
   Accounts payable and accrued expenses                            (142,519)         33,334                 (33,334)          (142,519)
   Deferred revenue                                                 (152,688)              -                       -           (152,688)
            NET CASH PROVIDED BY OPERATING ACTIVITIES              2,115,832          37,519                       -          2,153,351

CASH FLOWS FROM INVESTING ACTIVITIES
 Net purchases of investments                                              -         (37,519)                         -         (37,519)
 Acquisition of property and equipment                              (836,487)              -                          -        (836,487)
           NET CASH USED IN INVESTING ACTIVITIES                    (836,487)        (37,519)                         -        (874,006)

CASH FLOWS FROM FINANCING ACTIVITIES
 Payments on borrowings                                             (296,716)                 -                       -        (296,716)
          NET CASH USED IN FINANCING ACTIVITIES                     (296,716)                 -                       -        (296,716)

NET INCREASE IN CASH                                                982,629                   -                       -         982,629

CASH AT BEGINNING OF YEAR                                          4,237,109                  -                       -       4,237,109

CASH AT END OF YEAR                                            $   5,219,738     $            -   $                   -   $   5,219,738




                                                         25
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
UNITED WAY ALLOCATIONS
FOR THE YEAR ENDED JUNE 30, 2012


UNITED WAY OF BROWARD COUNTY
 Broward area programs:
  Central Office Administration                                     $    55,518
  Wilton Manors Adult Day Care                                           55,000
        Total Broward Area Programs                                     110,518

UNITED WAY OF MIAMI-DADE COUNTY
Miami-Dade Area Programs:
 Good Shepherd Child Care Center                                              -
 Centro Hispano Catholic Child Care Center                               45,594
 Notre Dame Child Care Center                                           113,000
 Sagrada Familia Child Care Center                                       76,551
 Services for the Elderly/Congregate Meals                               60,000
 Pierre Toussaint-Haitian Family Stabilization Emergency Services       129,858
 St. Luke's Addiction Recovery Center                                    76,090
 New Life Family Center - Emergency Assistance                           28,000
 New Life Family Center - Transitional Shelter                           48,423
         Total Miami-Dade Area Programs                                 577,516

UNITED WAY - OTHER                                                      108,416

         TOTAL UNITED WAY SUPPORT                                   $   796,450




                                                   26
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2012

Grantor/Pass-through                                                     CFDA/CSFA         Grant / Contract
Grantor/Program Title                                                      Number             Number              State           Federal

U.S. Department of Agriculture
Pass-through Florida Department of Health:
 Child and Adult Care Food Program                                          10.558             S-552          $           -   $ 1,009,126
 Child and Adult Care Food Program                                          10.558             H-1536                     -        49,344

Pass-through Florida Department Elder Affairs:
 Child and Adult Care Food Program                                          10.558         Y1028, Y2028                   -          37,038

Pass-through Alliance for Aging, Inc.:
 Team Nutrition Grant                                                       10.570             US1148                     -        38,265
        Total U.S. Department of Agriculture                                                                  $           -   $ 1,133,773

U.S. Department of Health and Human Services
Pass-through Miami-Dade County:
 Head Start FY 2011-12                                                      93.600              N/A                       -   $ 8,185,667
 Head Start FY 2010-11                                                      93.600              N/A                       -       465,382
 Early Head Start - ARRA FY 2010                                            93.709              N/A                       -        50,277

Pass-through Broward Council On Aging:
 Special Programs for the Aging, Title III, Part B                          93.044       JA012-39-2012-ATT                -          41,178
 Special Programs for the Aging, Title III, Part B                          93.044       JA111-39-2011-ATT                -          34,704
 Special Programs for the Aging, Title III, Part B                          93.052       JA012-39-2012ATT                 -          19,932
 Special Programs for the Aging, Title III, Part B                          93.052       JA111-39-2011ATT                 -           6,720
 Special Programs for the Aging, Title III, Part B                          93.052       JA111-39-2011-CW                 -         100,218
 Special Programs for the Aging, Title III, Part B                          93.052       JA012-39-2012-CW                 -         115,004

Pass-through Alliance for Aging, Inc.:
 Special Programs for the Aging, Title III, C-1                          93.045;93.052        AA1202                      -         242,479
 Special Programs for the Aging, Title III, C-1                          93.045;93.052        AA1102                      -         249,419
 Nutrition Services Incentive Program                                        93.053           US1248                      -          75,887

Pass-through Florida Department of Children and Families:
 Block Grants for Prevention and Treatment of Substance Abuse               93.959           KH-225.06                    -         514,817
 Block Grants for Prevention and Treatment of Substance Abuse               93.958           KH-225.06                    -           4,704
 Block Grants for Prevention and Treatment of Substance Abuse               93.558           KH-225.06                    -         267,965
 Subtance Abuse and Mental Health Services                                  93.243            LD933                       -          39,056

 Refugee and Entrant Assistance_State Administered Programs                 93.566             XK006                      -       1,428,136

Pass-thru Child Development Services
 Child Care and Development Block Grant                                     93.575              N/A                       -         204,298

Pass-through Subtance Abuse and Mental Health Services Administration:
 Subtance Abuse and Mental Health Services                                  93.243       5H79TIO19872-02                  -         109,031
 Subtance Abuse and Mental Health Services                                  93.243       5H79TIO19872-03                  -         328,553

Pass-through U.S. Conference of Catholic Bishops:
 Refugee and Entrant Assistance_Voluntary Agency Programs                   93.567              N/A                       -         850,309
 Refugee and Entrant Assistance_Voluntary Agency Programs                   93.567              N/A                       -         342,416

 Unaccompanied Alien Children Program                                       93.676          90ZU006601                    -        799,497
 Unaccompanied Alien Children Program                                       93.676          90ZU006602                    -      2,131,527
      Total U.S. Department of Health and Human Services                                                      $           -   $ 16,607,177

U.S. Department of State
Pass-through U.S. Conference of Catholic Bishops:
 U.S. Refugee Admissions Program                                            19.510              N/A           $           -   $     194,503
 U.S. Refugee Admissions Program                                            19.510              N/A                       -           1,642
        Total U.S. Department of State                                                                        $           -   $     196,145



See accompanying note to the schedule of state earnings, cost center actual expenses and revenues,
and schedule of expenditures of federal awards and state financial assistance.

                                                                         27
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2012
Grantor/Pass-through                                            CFDA/CSFA        Grant / Contract
Grantor/Program Title                                             Number            Number                  State           Federal


U.S. Department of Homeland Security
Pass-through U.S. Conference of Catholic Bishops:
 Cuban/Haitian Entrant Program                                    97.009              N/A               $           -   $     131,339

 Emergency Food and Shelter National Board Program                97.024    157000-005,159400-002&054               -         292,206
      Total U.S. Department of Homeland Security                                                        $           -   $     423,545

U.S. Department of Housing and Urban Development
Pass-through City of Miami:
 Community Block Development Grant                                14.218              N/A               $           -   $      15,506
 Community Block Development Grant                                14.218              N/A                           -          25,949

Pass-through Broward County:
 Supportive Housing Program                                       14.235        FL0246B4D011003                     -         272,907

 Emergency Shelter Grants Program                                 14.231             KFZ25                          -          30,608

 Supportive Housing Program                                       14.235        FL0273B4D041003                     -          91,230
 Supportive Housing Program                                       14.235        FL0273B4D041104                     -          32,478
       Total U.S. Department of Housing and Urban Development                                                       -         468,678

        Total Federal Funds and State Pass-throughs                                                     $           -   $ 18,829,318

Florida Department of Elder Affairs
  Local Services Program (CCDA)                                   65.009              N/A               $    23,084     $         -
  Adult Dade Care - Unisys                                         N//A               N/A                   149,860               -

Pass-through Florida Department of Children and Families:
 Acholol, Drug Abuse and Mental Health Services - SFBHN           60.033       KH-225.06,KH-228.06          335,536               -
 Acholol, Drug Abuse and Mental Health Services - SFBHN           60.053       KH-225.06,KH-228.06           56,843               -

Pass-through Broward County
 Community Care for the Elderly                                   65.010    09&12-EVSD-3411-ADC-02          263,851               -

Florida Department of Education
Pass-thru Department of Children and Families
  Voluntary Pre-Kindergarten Education Program                    75.007              N/A                 1,062,346               -
        Total State Funds                                                                                 1,891,520                -
        TOTAL STATE AND FEDERAL PROJECTS                                                                $ 1,891,520     $ 18,829,318




See accompanying note to the schedule of state earnings, cost center actual expenses and revenues,
and schedule of expenditures of federal awards and state financial assistance.

                                                                28
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC
SCHEDULE OF COST CENTER ACTUAL EXPENSES AND REVENUES-SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES - PART I
FOR THE YEAR ENDED JUNE 30, 2012




Part I: Actual Funding Sources and Revenues


Cost Centers                                  Residential Outpatient Day / Night Residential Recovery           Assessment      HIV    Outpatient Children's Substance Adult Mental Adult Substance       TANF              TANF
                                               Level II   Individual              Level IV   Support                         Prevention Group            Abuse          Health-MS     Abuse-MS      Adult Mental Health Adult Substance
                                                                                                                                                                                                                            Abuse
                                                                                                                                                                                                                                                            Total for      Total for
                                                                                                                                                                                                                                             Total for      Non-State      All-State
                                                                                                                                                                                                                                           State Funded      Funded       Designated
                                                                                                                                                                                                                                          Funded SAMH        SAMH           SAMH               Non-SAMH               Total
                                                                                                                                                                                                                                           Cost Centers    Cost Centers   Cost Centers         Cost Center           Funding
Funding Sources/Revenues
IA. State SAMH Funding
DEPT. CHILDREN & FAMILIES                     $         -   $        -   $        -   $         -   $       -   $        -   $        -   $       -   $             -   $         -   $           -   $              -   $           -    $            -   $          -   $           -    $                 -   $            -
SOUTH FLA. PROVIDER COALITION                     501,078       48,091       21,577       179,937       7,895        5,921       34,187       3,246                 -        61,547          44,553            136,681         135,152         1,179,865              -       1,179,865                      -        1,179,865
     Total State SAMH Funding                     501,078       48,091       21,577       179,937       7,895        5,921       34,187       3,246                 -        61,547          44,553            136,681         135,152         1,179,865              -       1,179,865                      -        1,179,865

IB. Other Government Funding
  Local Government                                      -            -            -             -           -            -            -           -                 -             -               -                  -               -                 -              -            -                      -                   -
  Other State Agency Funding                            -            -            -             -           -            -            -           -                 -             -               -                  -               -                 -              -            -                      -                   -
  Other Grants and Contracts                            -            -            -             -           -            -            -           -                 -             -               -                  -               -                 -              -            -             20,647,363          20,647,363
  In-Kind from Local Government                         -            -            -             -           -            -            -           -                 -             -               -                  -               -                 -              -            -                      -                   -
     Total Other Government Funding
                                  g                     -            -            -             -           -            -            -           -                 -             -               -                  -               -                 -              -                -         20,647,363          20,647,363

IC. All Other Revenues
  First and Third Party Payments                   34,308        3,293        1,477        12,320         541          405        2,341         222                 -         4,214           3,050              9,358           9,254           80,783               -         80,783              400,837             481,620
 Contributions                                          -            -            -             -           -            -            -           -                 -             -               -                  -               -                -               -            -              2,279,660           2,279,660
 Other                                                  -            -            -             -           -            -            -           -                 -             -               -                  -               -                -               -            -                  9,907               9,907
 In-Kind                                          147,163       14,124        6,337        52,846       2,319        1,739       10,041         953                 -        18,076          13,085             40,142          39,693          346,518               -        346,518            3,886,940           4,233,458
     Total All Other Revenues                     181,471       17,417        7,814        65,166       2,860        2,144       12,382       1,175                 -        22,290          16,135             49,500          48,947          427,301               -        427,301            6,577,344           7,004,645

    Total Funding and Revenues                $ 682,549 $       65,508   $   29,391   $ 245,103     $ 10,755    $    8,065   $ 46,569 $       4,421 $               -   $    83,837   $      60,688 $          186,181 $       184,099 $       1,607,166   $          -   $   1,607,166    $     27,224,707      $ 28,831,873




See accompanying note to the schedule of state earnings, cost center actual expenses and revenues,
and schedule of expenditures of federal awards.                                                                                                                                  29
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC
SCHEDULE OF COST CENTER ACTUAL EXPENSES AND REVENUES-SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES - PART II
FOR THE YEAR ENDED JUNE 30, 2012




Part II: Actual Expenses



Expense Categories                         Residential Outpatient Day / Night Residential         Adult Substance              HIV                 Outpatient       Children's Substance Adult Mental Adult Substance       TANF              TANF
                                            Level II Individual                Level IV               Abuse       Assessment Prevention             Group                  Abuse          Health-MS     Abuse-MS      Adult Mental Health Adult Substance
                                                                                                                                                                                                                                              Abuse
                                                                                                                                                                                                                                                                               Total for        Total for
                                                                                                                                                                                                                                                              Total for        Non-State        All-State
                                                                                                                                                                                                                                                            State Funded        Funded         Designated
                                                                                                                                                                                                                                                               SAMH             SAMH             SAMH                Non-SAMH                                       Total
                                                                                                                                                                                                                                                            Cost Centers      Cost Centers     Cost Centers          Cost Centers           Administration         Expenses
IIA. Personnel Expenses
  Salaries                                 $   200,296 $ 12,247 $          3,915 $       44,349 $          2,623 $      1,921 $       9,195 $              566 $                 31,471 $     21,301 $           22,570 $         30,042 $        51,991    $    432,487      $            -   $    432,487      $       9,815,806      $        1,590,788     $   11,839,081
  Fringe benefits and fees                      64,056    3,917            1,252         14,183              839          614         2,941                181 $                 10,065        6,812              7,218            9,608          16,627         138,313                   -        138,313              2,079,065                 258,884          2,476,262
     Total Personnel Expenses                  264,352   16,164            5,167         58,532            3,462        2,535        12,136                747                   41,536       28,113             29,788           39,650          68,618         570,800                   -        570,800             11,894,871               1,849,672         14,315,343

IIB. Other Expenses
  Professional services                            -            -            -              -                -            -             -                  -                        -            -                  -                -               -                 -                   -              -                630,422                  99,778            730,200
  Food services                                 58,008        3,547        1,134         12,844              760          556         2,663                164                    9,114        6,169              6,537            8,700          15,057         125,253                   -        125,253              1,396,189                     126          1,521,568
  Travel                                         2,076          127            41           460                27           20            95                  6                     326          221                234              311             539           4,483                   -          4,483                111,252                  33,767            149,502
  Repairs and maintenance                       21,332        1,304          417          4,723              279          205           979                  60                   3,352        2,269              2,404            3,200           5,537          46,061                   -         46,061                768,858                  59,534            874,453
  Insurance                                      7,651          468          150          1,694              100            73          351                  22                   1,202          814                862            1,148           1,986          16,521                   -         16,521                417,495                  27,641            461,657
  Operating supplies and expenses                6,960          426          136          1,541                91           67          320                  20                   1,094          740                784            1,044           1,807          15,030                   -         15,030                208,809                  29,515            253,354
  Interest                                         -            -            -              -                -            -             -                  -                        -            -                  -                -               -                 -                   -              -                  3,319                 193,086            196,405
  Other                                         85,477        5,226        1,671         18,926            1,119          820         3,924                241                   13,430        9,090              9,632           12,820          22,187         184,563                   -        184,563              3,699,064                 402,859          4,286,486
  Depreciation                                     -            -            -              -                -            -             -                  -                        -            -                  -                -               -                 -                   -              -              1,014,126                 190,042          1,204,168
  In-kind                                      160,482        9,813        3,137         35,534            2,102        1,539         7,367                453                   25,215       17,067             18,084           24,070          41,655         346,518                   -        346,518              3,784,460                 102,480          4,233,458
     Total Other Expenses                      341,986       20,911        6,686         75,722            4,478        3,280        15,699                966                   53,733       36,370             38,537           51,293          88,768         738,429                   -        738,429             12,033,994               1,138,828         13,911,251

IIC. Distributed Indirect Costs
  Administration                                74,062        4,528        1,448         16,399             970          710          3,400                209                   11,637        7,876              8,346           11,108          19,224         159,917                   -        159,917              1,652,499              (1,812,416)                   -
     Total Distributed Indirect Costs           74,062        4,528        1,448         16,399             970          710          3,400                209                   11,637        7,876              8,346           11,108          19,224         159,917                   -        159,917              1,652,499              (1,812,416)                   -

     Total Actual Operating Expenses           680,400       41,603       13,301        150,653            8,910        6,525        31,235               1,922                 106,906       72,359             76,671          102,051         176,610        1,469,146                  -       1,469,146            25,581,364               1,176,084         28,226,594

IID. Unallowable Costs
  Donated services                                   -            -             -             -                 -            -             -                    -                     -            -                  -                -               -                  -                -                 -                      -                      -                  -
  State excluded costs                               -            -             -             -                 -            -             -                    -                     -            -                  -                -               -                  -                -                 -                      -                      -                  -
     Total Unallowable Costs                         -            -             -             -                 -            -             -                    -                     -            -                  -                -               -                  -                -                 -                      -                      -                  -

     Total Allowable Operating Expenses    $   680,400 $ 41,603       $   13,301    $   150,653   $        8,910    $   6,525    $   31,235    $          1,922     $           106,906   $   72,359 $           76,671   $      102,051   $     176,610    $   1,469,146     $        -       $   1,469,146     $      25,581,364      $        1,176,084     $   28,226,594

IIE. Capital Expenditures                  $         -   $        -   $         -   $         -   $             -   $        -   $         -   $                -   $                 -   $        -   $              -   $            -   $           -    $         -       $        -       $         -       $             -        $              -       $          -




See accompanying note to the schedule of state earnings, cost center actual expenses and revenues,
and schedule of expenditures of federal awards.
                                                                                                                                                                                                            30
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
SCHEDULE OF STATE EARNINGS
FOR THE YEAR ENDED JUNE 30, 2012



1. Total Expenditures                                                                        $   28,226,594

2.      Less other State and Federal Funds                                                       (20,647,363)

3.      Less Non-Match SAMH Funds                                                                    (483,526)

4.      Less Unallowable Costs, per 65E-14, F.A.C.                                                           -

5. Total Allowable Expenditures                                                                      7,095,705
   (Sum of lines 1,2,3 and 4)

6. Maximum Available Earnings                                                                        5,321,779
   (Line 5 times 75%)

7. Amount of Funds Requiring Local Match                                                              213,493

8. Amount Due to Department, if negative                                                         NONE
   (Subtract line 7 from line 6)




See accompanying note to the schedule of state earnings, cost center actual expenses and revenues,
and schedule of expenditures of federal awards.

                                                     31
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
NOTE TO THE SCHEDULE OF STATE EARNINGS, COST CENTER ACTUAL EXPENSES AND
REVENUES AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE
FINANCIAL ASSISTANCE
JUNE 30, 2012

General
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the
“Schedule”) presents the activity of all federal awards and state projects of Catholic Charities of the
Archdiocese of Miami, Inc. for the year ended June 30, 2012 on the accrual basis of accounting. All federal and
state awards received directly from federal and state agencies, as well as federal and state awards received from
other government agencies are included in the Schedule. The information in this schedule is in accordance with
U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations and with State of Florida Rules of the Auditor General Chapter 10.650, State Single Audits of
Non-Profit and For-Profit Organizations. Therefore, some amounts presented in this Schedule may differ from
amounts presented in, or used in the preparation of, the general-purpose financial statements.

In addition, the Schedules of State Earnings, Cost Center Actual Expenses and Revenues were prepared in
accordance with the requirements in the State of Florida Department of Children and Families Contract KH-
225.06 and KH-228.06 for Substance Abuse and Mental Health Services.




                                                       32
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


To the Board of Directors of
Catholic Charities of the Archdiocese of Miami, Inc.
Wilton Manors, Florida


We have audited the financial statements of Catholic Charities of the Archdiocese of
Miami, Inc. (“Catholic Charities”), a nonprofit organization, as of and for the year ended
June 30, 2012, and have issued our report thereon dated October 1, 2012. 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.

Internal Control Over Financial Reporting
Management of Catholic Charities is responsible for establishing and maintaining
effective internal control over financial reporting. In planning and performing our audit,
we considered Catholic Charities’ internal control over financial reporting as a basis for
designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness
of Catholic Charities’ internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of Catholic Charities’ internal control over
financial reporting.

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 financial
statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in the internal control over financial reporting that might be deficiencies,
significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as
defined above.
                                            33
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Catholic Charities’ 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.

This report is intended solely for the information and use of the Board of Directors of
Catholic Charities, audit committee, management, federal and state awarding agencies,
and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.




                                                CERTIFIED PUBLIC ACCOUNTANTS


Coral Gables, Florida
October 1, 2012




                                           34
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE
WITH REQUIREMENTS THAT COULD HAVE A DIRECT
AND MATERIAL EFFECT ON EACH MAJOR FEDERAL PROGRAM
AND STATE PROJECT AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
AND CHAPTER 10.650, RULES OF THE AUDITOR GENERAL


To the Board of Directors of
Catholic Charities of the Archdiocese of Miami, Inc.
Wilton Manors, Florida

Compliance
We have audited Catholic Charities of the Archdiocese of Miami, Inc.’s (“Catholic
Charities”), a nonprofit organization, compliance with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular
A-133 Compliance Supplement, and the requirements described in the Department of
Financial Services’ State Projects Compliance Supplement, that could have a direct and
material effect on each of Catholic Charities’ major federal programs and state projects
for the year ended June 30, 2012. Catholic Charities’ major federal programs and state
projects are identified in the summary of auditors’ results section of the accompanying
schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal programs and
state projects is the responsibility of Catholic Charities’ management. Our responsibility
is to express an opinion on Catholic Charities’ compliance based on our audit.

We conducted our audit of compliance 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; OMB Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations, and Chapter 10.650, Rules of the Auditor General. Those
standards, OMB Circular A-133, and Chapter 10.650, Rules of the Auditor General,
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 or state project occurred. An
audit includes examining, on a test basis, evidence about Catholic Charities’ 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. Our audit does not provide a legal determination of Catholic Charities’
compliance with those requirements.



                                           35
In our opinion, Catholic Charities complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its
major federal programs and state projects for the year ended June 30, 2012.

Internal Control Over Compliance
Management of Catholic Charities is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations,
contracts, and grants applicable to federal programs and state projects. In planning and
performing our audit, we considered Catholic Charities’ internal control over compliance
with the requirements that could have a direct and material effect on a major federal
program or state project in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with OMB Circular A-133 and Chapter 10.650 Rules of the
Auditor General, 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 Catholic Charities’ 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 or state project 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 or state project will not be prevented, or detected and
corrected, on a timely basis.

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 deficiencies, significant
deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of the Board of Directors of
Catholic Charities, audit committee, management, federal and state awarding agencies,
and pass-through entities, and is not intended to be and should not be used by anyone
other than these specified parties.




                                                CERTIFIED PUBLIC ACCOUNTANTS


Coral Gables, Florida
October 1, 2012




                                           36
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS – FEDERAL AWARDS PROGRAMS AND
STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2012

SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements

Type of auditor's report issued:                                         Unqualified

Internal control over financial reporting:

   Material weakness (es) identified?                                   XXX yes       XXX no

   Significant deficiency (ies) identified that are not considered
    to be material weaknesses?                                           XXX yes       XXX none reported

Noncompliance material to financial statements noted?                    XXX yes       XXX no

Federal Awards and State Projects

Type of auditor’s report issued on compliance for major federal
programs and state projects:                                             Unqualified

Internal control over major federal programs and state projects:

   Material weakness (es) identified?                                   XXX yes       XXX no

   Significant deficiency (ies) identified that are not considered
    to be material weaknesses?                                           XXX yes       XXX none reported


Any audit findings disclosed that are required to be reported in
accordance with Section 510(a) of OMB Circular A-133 or
Chapter 10.650, Rules of the Auditor General?                            _____ yes     XXX no

Identification of major federal programs and state projects:

          Federal Program/State Project or Cluster                    CFDA/CSFA Number          Expenditures

U.S. Department of Health and Human Services
 Block Grants for Prevention & Treatment of Substance Abuse                93.959               $ 514,817
 Block Grants for Prevention & Treatment of Substance Abuse                93.558               $ 267,965
 Refugee & Entrant Assistance - Voluntary Agency Programs                  93.567               $ 1,192,725
 Unaccompanied Alien Children Program                                      93.676               $ 2,931,024
Florida Department of Children and Families
  Adult Community Mental Health – Community Support
  Services                                                                 60.053               $    56,843
  Substance Abuse Treatment and Aftercare Services for Adults              60.033               $   335,536
Florida Department of Education
  Voluntary Pre-Kindergarten Education Program                             75.007               $ 1,062,346

                                                          37
CATHOLIC CHARITIES OF THE ARCHDIOCESE OF MIAMI, INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS – FEDERAL AWARDS PROGRAMS AND
STATE FINANCIAL ASSISTANCE
FOR THE YEAR ENDED JUNE 30, 2012

SECTION I - SUMMARY OF AUDITOR'S RESULTS (Continued)

Dollar threshold used to distinguish between type A and
type B federal programs:                                             $ 564,880

Auditee qualified as low-risk auditee pursuant to OMB
Circular A-133?                                                      XXX yes     XXX no

Dollar threshold used to distinguished between type A and
type B state projects:                                               $ 300,000

SECTION II – FINANCIAL STATEMENT FINDINGS

  The audit disclosed no matters that are reportable for the current year.


SECTION III – FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARDS PROGRAMS
             AND STATE PROJECTS

  The audit disclosed no matters that are reportable for the current year.


SECTION IV – OTHER ISSUES

  1. No management letter was issued for the year ended June 30, 2012.

  2. No Summary Schedule of Prior Audit Findings is required because there were no prior audit findings
     relating to Federal Award Programs or state financial assistance projects.

  3. No corrective action plan is required because there were no findings required to be reported under the
     Federal OMB Circular A-133 Compliance Supplement or the Department of Financial Services’ State
     Project Compliance Supplement.




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