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83-006 Outreach & Escort, Inc., Resolution No. 6035" .' : AGREEMENT BETWEEN THE CITY OF CUPERTINO AND OUTREACH & ESCORT, IN~. This Agreement made and entered into'this 1st day of February, 1983, by and between the City of Cupertino, a municipal corporation of the State of California, and Outreach and Escort, Inc., a private non-profit corporation of the State of California located at 186 East Gish Road, San Jose. WITNESSETH WHEREAS City Council of City of Cupertino deems it to be in the best interest of City to ensure quality door-to-door transportation services to eligible mobility limited .residents 18 years of age and over of the City of Cupertino WHEREAS Outreach & Escort, Inc.'s main function is to provide such services and expects, in their capacity as designated Consoli- dated Transportation Services Agency (C.T.S.A.) to receive a grant from the Metropolitan Tr.ansportation Conunission in order to offset the cost of providing such services. Now, therefore, it is hereby agreed by the parties hereto as follows: 1. Conunencing on the effective date of this agreement and from July 1, 1983, until terminated, Outreach and Escort, Inc., agrees to provide prescheduled door-to-door trans- portation services to qualified residents of the City of Cupertino and it·s unincorporated areas of Monta Vista, Garden Gate and Rancho Rinconada. These services shall include a taxi subsidy program by a taxi company licensed by the City of .Cupertino and an accessible van service. 2. The criteria for eligibility is the "Minimum Client Clear- ance Guidelines for Transportation Programs Serving Elderly and Handicapped Persons" adopted by the Paratransit Coor- dinating Council, Executive Conunittee on February 24, 1982. 3. Outreach and Escort, Inc., will make available a minimum of 3,500 passeng.er trips to 300 residents upon request. The amount of services are contingent on necessary funds being received from the Metropolitan Transportation Conunission. A passenger trip is defined as a one, one-way trip • . , 4. Cost to client shall be maintained at 50¢ per ticket in increments of five miles as long as the required 10% farebox is recouped. Outreach and Escort, Inc., shall also provide a Management Inforrnatio~ System which shall include the following data which is to be provided on a monthly basis and is to cover a calendar month of service activity: (1) Number of residents using service (2) Number of passenger trips taken (3) Length of such trips in increments of 5 miles (4) Trip Purpose (5) Number of Shared Trips 6. Outreach and Escort, Inc., shall establish and staff a "Cities' Paratransit Advisory Committee" as follows: (al This committee shall have oversight responsibilities of the City's door-to-door transportation system which shall include review and approval of a monthly Finan- cial Statement of Expenditures and Balance Sheet and the Management Information System on a per City basis. The sphere of influence of this committee shall also extend to review and feed back to staff, and final decisions on client complaints; service problems; and operational changes. (bl The City of Cupertino shall appoint a City staff per- son as representative on the "Cities' Paratransit Advisory Committee" who shall attend the monthly meetings and actively participate in the work of this Committee. This appointee shall, whenever possible, be the same individual from month-to-month in order to provide continuity and cohesiveness in the work of said Committee. (c) The City's representative on this Committee shall hold veto power on ,matters affecting that City's residents. (d) The City of Cupertino shall be reimbursed for the time and travel of their appointed staff representative by Outreach and Escort,. Inc., for travel at this monthly meeting at the rate of $16.00 per hour. This includes meeting and travel time from City offices. (e) The City of Cupertino shall continue to provide support as needed by Outreach and Escort, Inc., through their appointee to the Cities' Paratransit Advisory Committee in such matters a.s: advice and assistance in continued funding -funding applications and improvement of gov- erning regulations pertaining to this service. Time spent on such matters shall be reimbursed by Outreach and Escort, Inc., at the rate of $16.00 per hour. .' , -3- (f) The City of Cupertino shall· cooperate through their representative so that the Paratransit System improves its efficiency and cost effectiveness to better serve the qualified clients. 7. The City of Cupertino agrees to and hereby designates Outreach and Escort, Inc., as the City's C.T.S.A., empowering Outreach and Escort, Inc., to apply for and receive any and all 4.5 funds for which city of Cupertino would be or is eligible dur- ing duration of Agreement and City of Cupertino further agrees not to apply for 4.5 funds during term of Agreement. 8. If Outreach and Escort, Inc., does not provide satisfactory service within the bounds of this Agreement, the City shall have the following options: (.a) Provide to Outreach and Escort, Inc., in writing and by certified mail, detail of problems with a 30, 60 or 90 day notice for correcting said problems; (b) Hold a problem solving session with Outreach and Escort,· Inc., to explore and correct said problems with a mutually agreed upon timeline·; 9. Termination of this Agreement shall be by written notice via certified mail by either party, and shall take effect 30 days from receipt of said notice. 10. Outreach and Escort, Inc., agrees to idemnify and save harmless CITY, its officers and employees from any and all costs, ex- penses, claims, liabilities or damages, known or unknown, to persons or property heretofore or hereafter arising out of or in any way connected with the act, omission or negligence of Outreach and Escort, Inc., its officers, employees, agents, contractors, subcontractors or any officer, agent or employee thereof. 11. Outreach and Escort, Inc., agrees to maintain and pay for a public liability policy naming CITY, its officers, and em- ployees as an additional insured and insuring them against liability or financial loss resulting from injuries· occurring to persons or property in or about or in connection with said work to be performed under this Agreement .. Each policy of insurance shall provide primary coverage on an occurrence basis in a company satisfactory to CITY in the following min- imal amounts: personal injury, $300,000 for each person and $300,000 per occurrence; property damage, $50,000 per occur- rence. Each policy shall provide that it shall not be can- celled or reduced in coverage without 30 days prior written notice to CITY. The public liability policy shall provide: (a) if CITY, its officers or employees have other insurance against loss covered by said policy, said other insurance shall be excess insurance only, (b) that CITY, its officers and employees are not precluded from claim under said policy against other insured parties. ,--4- • outreach and Escort, Inc., shall fi·le Certificate of Insurance with CITY in form satisfactory to City Attorney upon execution of this Agreement, evidencing said coverage and the require- ments of this paragraph. Outreach and Escort, Inc., agrees to comply with all state requirements relating to Workers Compensation Insurance and to provide the same for its employees. 12. Nothing in this agreement shall make Outreach and Escort, Inc., an agent of the City of Cupertino. It is an independent contractor. 13. The obligations of the parties as set forth herein arise only upon approval of the grant request of Outreach and Escort to the Metropolitan Transportation Commission and appropriation of funds by Outreach and Escort, Inc. 14. Both parties shall comply with all applicable Federal, State, Regional and local statutes and regulations relating to the ' use of Transportation Development Act, Article 4.5 monies. To the extent that said statutes 'and regulations are in con- flict with this agreement the laws and regulations governing the Transportation Development.Act., Article 4.5 monies shall prevail. Cupertino ATTE~ FOrZ£i.dfftj~~C~~# Af~4f? For-CitYQerk =y- o ~ ~ :-?~lc,,- For: ~hairperson, Governing Board Outreach and Escort, Inc. LAI INSURANCE AGENTS & BROKERS P.O. BOX 21 BERKELEY, CA 94701 TEl: (415) 841.1111 Outreach and Escort, Inc. 186 E. Gish Road San Jose, CA 95112 COMPANY TYPE OF INSURANCE POLICY NUMBER LETTER COMPREHENSIVE FORM PREMISES-oPERAflONS EXPLOSION AND COLLAPSE HAZARD UNDERGROUND HAZARD PRODUCTSICOMPLETED OPERATIONS HAZARD CONTRACTUAL INSURANCE BRQAD fORM PROPERTY B DAMAGE BP2687574 INDEP£NOENT PERSONAL INJURY AUTOMOBI~E LIABILITY o COMPREHENSIVE FORM DOWNED ~H"'tD B o NON.QWNEI) BP2687574 o UMBRELlA FORM o OTHER THAN UMBREllA FORM BP2687574 ,- COMPANIES AfFORDING COVERAGES COMPANY A LETTER COMPANY B LETTER COMPANY C l£TTER COMPAHV D LETIER COMPANY E LEn'" POwey EXPIRATION DATE. 7/1/84 7/1/84 7/1/84 BODILY INJURY $ PROPERTY DAMAGE $ BODILY INJURY ANO PROPERTY OAMAGE $1 000 COMBINED , PERSONAL INJURY' BOOII.. Y INJURY I (EACH PERSON) BOOILYlNJURY , (EACH ACCIDENT) BODILY INJURY AND PROPERTY DAMAGE $1,000 BOOILY INJURY AND PROPERTY DAMAGE $ COMBlNEn • I '1,000 at San Jose, CA. This is an occurrence policy and coverage is primary as to any other coverage available to the City as regards this insured. The City I s policy would be excess. The City is not precluded from making any claim under this policy against other insured parties. Cancellation: Should any of the above des'3e'ed policies be cancelled betore the expiration date thereot, the issuing com- pany will ~ mail __ days written ,:otice to the below named certificate holder,~ NAM,.NOAOOR'SSQFCERTIFrCATEHOLD'R' & A itiona1 Insured City of Cupertino, its Officers, Agents, and Fmployees 10300 Torre Avenue Cupertino, CA 95014 Attn: Dorothy Cornelius Granted by Authority of American National Fire Insurance Company OATE ISS"'O: ................ ~~=Q,,'-_________ _ "NOV f) e: 1985 •• " ~ Q ~!a Mr. Robert W. Quinlan City Manager Ci ty Hall 10300 Torre Ave. Cupertino, CA 95014 Dear Mr. Quinlan: November 22, 1985 It is with great pleasure that we wish to share with you the enclosed agency Fiscal Audit and Annual Report for FY 1984-85. Once again we have maintained quality and increased our overall services by 6%. The Senior Outreach Program that is funded essentially with county funds subsidized with United Way and private donations has had another good year. Two thousand and sixty five (2,065) frail seniors and at risk adults received 21,539 services through our dedicated staff of 5.5 (F.T.E) at a total audited cost of $134,539. The value of benefits received by clients served in this program was $270,548 or a value of $1:$2 for every public dollar spent. This indeed is a valuable program! Our Transportation Program serving the frail elderly and mobility limited young adults has had another banner year. It served 5,437 separate individuals and experienced a 12% overall growth in the number of rides it provided. Passenger rides for the City of San Jose residents increased by 27%; City of Santa Clara, 7%; City of Milpitas, 9%; City of Campbell, 19%; and City of Cupertino, 15%. The 192,046 passenger rides provided annualize to an average of 745 passenger rides per day. The average audited cost per one way passenger ride is $8.48. This cost includes all administrative, overhead, capital (no depreciation) and operational costs incurred during FY 1984-85. This, too, is an outstanding program! By analyzing page 9 of our fiscal audit, our FY 1984-85 costs breakout as follows: Direct Service 82% Administration 10% Overhead 8% 100% ~ A UniledWay Agenev , I •• • We feel these audited figures speak for a well run agency that provides cost effective services without sacrificing quality. We hope that together we can continue to provide for our mutual constituency and that FY 1985-86 will prove to be a constructive and fulfilling year. Sincerely, ~- President Encl: 3 1.1 RMG:vpd ' .. COMPARATIVE ANALYSIS CITIES PARATRANSIT TRANSPORTAllON 700 ...,----------------, 600 500 I ~ 400 -, -, 0 .. l_ .. [ l . , • C) lL '" -,nt'! I .~ ~ CLIENTS 200 100 STAFF . COST I o~~-~----~---~----~--~ 1979 -80 1980-81 1981-82 1982-83 . 1:;oj-04 1984-85 . OUTREACH AND ESCORT o CLIENTS + UNITS ~ COST A STAFF COMPARATIVE ANALYSIS CITIES PARA TRANSIT TRANSPORTATION SERVICES 1979-1985 SUMMARY GROWTH IN NEW CLIENTS (1979-19BS} •••• , .•••••• " •••. 227% GROWTH IN UNITS OF SERVICE (1979-198S} ..•••••••.• 604% GROWTH OF COST/UNIT (1979-1985) ••••••.••••••• : .•. , 2S%·~ GROI~TH IN SCHEDULING STAFF (1979-19B5} ., ................ .. 86% GROWTH OF UNITS/STAFF (1979-198S} 279% ." "" .. 1. OUTREACH & ESCORT, INC. ANNUAL REPORT July 1, 1984 June 30, 1985 THE J\GENCY HAS THREE, PRCGRAMS: a. SENIOR OUTREACH This program locates seniors in Santa Clara County through door to door canvassing, especially the isolated and needy, and assists them to obtain services and income benefits. b. CITIES' CONSOLIDATED PARATRANSIT SERVICES This project provides taxi and accessible van transportation to. the residents of the cities of San Jose, Santa Clara, Milpitas, Campbell, Cupertino, M::lrgan Hill and Gilroy who are unable to use other transportation. 'c. CONSOLIDATED ESCORT SERVICES EXPENDIWRES $ 134,539 $1,453,088* $ 176,238** This project provides personalized escort to frail elderly. These trips are primarily for medical, social service & shopping. *Includes fares and local match **Includes in kind of $30,947 SUB 'IDTAL $1,763,865 _ II. Fund raising activities underwritten by united way 3,844 Funding Sources Include: Santa Clara County General Revenue Sharing: $120,266; ~ United Way: $8,156; Unrestricted Donations: $6117. Title III & V of the older 1lmericans Act ........ __ _ $1,767,709 Develop!ffll1t Act 4.5 direct funding of $269,253 to areas of Cupertino, Camp bell, Milpitas, Gilroy & Morgan Hill & contracts with cities of San Jose & Sta. Clara for $1,183,835. GENERAL DONATIONS lIND CONTRIBUTIONS San Jose Mercury News Christmas Wish Book Stevens Creek ~N Dealership ESL ,Other Donations In kind Contributions 1 ~ A un~ed Way Agency TOTAL DONATIONS $ 3,360 614 500 554 $12,028 $30,947 $42,975 GRAND TOTAL PERSONS SERVED AND UNITS OF SERVICE PROVIDED BY TOTAL AGENCY PRCGRlIM Unduplicated Clients 1983 84 1984 85 7476 7084 I. SENIOR 00TREl\CH PROOru\M A. Number of Individual Persons Served Number of Follow up Contacts Total Number of Service Contacts units of Service 1983 84 1984 85 205,198 217,840 Expenditure: $134,539 1983 84 1984 85 2,098 2,716 4,814 2,065 3,419 5,484 B. Demographic Profile of Persons Served, 1984 85 Age 60 or older 83% Spanish Descent 44% Filipino 4% Male 30% White 46% Anerican Indian 1% Female 70% Black 4% Asian/Pac. Islanderl% C. Services Provided, 1984 85 1-Door to door canvassing Hares Seniors Help Given Contacted Contacted or Planned Total Canvassing 1,131 190 90 2. Types of Supportive Services Units of Service 19113 84 19114 85 'lUl2\L 25,270 21,539 a. IncClre Benefits 6,'277 5,747 b. Money Management 448 100 c. Food/DSS Nutrition 1,430 1,513 d. Housing 749 929 e. Homemaker 395 323 f. Legal Referrals 231 133 g. Health Services 1,530 1,491 h. Transportation 2,082 1,316 i. Information and Referral 4,383 3,495 j. Medical Benefits 591 119 k. Translation Services 2,001 1,523 1-Forms and Regulations 4,145 3,625 In. Administrative Legal Hearings 75 110 n. Other 933 1,115 2 ,. ·. . .. D. Value of Benefits Obtained: Type 'JurAL Social Security Supplemental Security Incoae Food Stamps Tax Assistance Rent Rebates Medical Payments Over payment of Supplemental Security Incorre (SSI) Other (Energy Assistance, AFDC, & Miscellaneous) Rent Saved II. CITIES CONSOLJDA'lE) PARA'IRANSIT SERVICES Services Provided by Taxi, Accessible Van & Escort Modes of Transportation 'lOTAL .... Contract: City of San Jose City of santa Clara CTSA: City of Milpitas Cities of Gilroy & Morgan Hill City of Campbell City of CUpertino Rancho Laguna Seca III. OJNSOLIOA'lE) ESCORT SERVICES a. Escort Services by CESP Consortium Total unduplicated persons served Total number of one way rides provides IlBenefits llm::lunt 1983 84 1984 85 1983 84 1984 85 1,247 1,437 $ 233,260 $ 270,548 19 26 21,351 49,436 35 55 42,711 50,411 2 2 775 947 28. 53 3,099 9,046 980 914 101,244 96,081 31 105 6,596 19,498 i. 4 7 14,882 4,153 133 268 24,098 37,138 15 7 18,504 3,838 Expenditures: $1,453,088 Unduplicated Units.of Count of Persons Service Provided 1983 84 1984 85 1983 84 1984 85 4,148 4,207 160,014 179,502 • 2,648 2,937 91,310 115,856 600 514 22,916 24,483 146 181 12,477 13,618 217 212 6,157 5,986 308 275 13,720 16,311 111 88 2,833 3,248 118 N/A 10,601 N/A Expenditures; $176,238 1983 84 1984 85 1,230 23,645 795 12,544 b. Clients' share of cost and/or local match for one way rides purchased through Cities Paratransit Program Total duplicated persons served Total duplicated one way rides provided 3 N/A N/A 664 17,990 Total undllplicated persons served Total one way rides provided 4 N/A N/A '"' .. ' 17 524 , ' .... . ' " ,: -, , , ' , . OUTREACH & ESCORT.'INC. AUDITED FINANCIAL STATEMENTS AND REPORT TO MANAGEMENT * * * FOR THE YEAR ENDED JUNE 30, 1985 1--( ( " , OUTREACH & ESCORT, INC. AUDITED FINANCIAL STATEMENTS AND REPORT TO MANAGEMMENT FOR l'HE YEAR ENDED JUNE 30, 1985 TABLE OF CONTENTS Audited Financial Statements Opinion of the Certified Public Accountants Balance Sheet Statement of Revenue and Expenditures Statement of Changes in Fund Balance 11 U I,. t!;) to. tJ fill a III... ~ (l I . 0.1 ... U "~u.,,, " .. ,kJ • Supplementary Information Report to Management Page 1 3 4 r 8 10 /-(1/ ·' ) '-.) . , .' Board of Directors Outreach & Escort, Inc. San Jose, California We have examined the balance sheet of Outreach & Escort, Inc., at June 30, 1985 and the rel ated statement of revenue and expenditures and statement of changes in fund balances for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circuffi'S·t·alfce'S:·· .. In our opinion, the aforementioned financial statements present fairly the financial pOSition of Outreach & Escort, Inc •• at June 3D, 1985 and the results of operations and changes in fund I.' .~. -1:_ .... Ll-................ h·~ ... ..., •............ "',..1 ;'" r ....... 4="Y'm';+\f wit.-h opnpri\llv accepted' accounting prinCiples applied on a baS1S conS1Stent with the preceding year. San Francisco, California September 13, 1985 . .. " '; OUTREACH & ESCORT, INC. BALANCE SHEE T JUNE 30, 1985 General Fixed Asset Total General Revenue Account (Memorandum Fund Fund Group ____ O~~ Assets Cash Accounts receivable Prepaid expenses Contract receivable (Note 0) Fixed assets (Note A) $44,574 131 14,653 -0- $27,161 720 57,214 -0- $ -0- -0- -0- -0- 152,214 $ 71,735 851 14,653 57,214 152,214 Total Assets $59,358 $85,095 $illdli $29&,&67 Liabilities and Fund Balance Contract payable (Note E) Accrued liabilities (Note B) Other liabilities Unapplied Program Income (Note F) 8,770 -0- 9,384 35,753 3,170 15,647 _1\_ -0- -0- -0- -0- Total Liabilities 14,180 79,277 -0- Fund Balance 45,178 5,818 152,214 Total Liabilities and Fund Balance $59,358 $85,095 $152,214 9,384 35,753 11,940 15,647 93,457 203,210 $296,667 See accompanying notes to financial statements -2- : .. ~ . , ~ OUTREACH & ESCORT, INC. STATEMENT OF REVENUE AND EXPENDITURES JUNE 30, 1985 Revenue Contract revenue Progr am income Contributions: San Jose Mercury News Stevens Creek BMW ESL Other Interest income . Ot her Local share Allocation from general fund Allocation from United Way Expenditures Salaries Payroll taxes Fringe benefits Contractual services Travel Transportation Rent Supplies Equipment Administration Ot her Allocation to revenue sharing In-kind expenditures (Note C) Total Expenditures •• 'Z'" ., "'0'\.., I" /l t'" .......... '-.,'"'1,..-.-.. . .... . .. .. ., fund expensed Excess of revenue over expenditures General Fund $ -0- -0- $ 3,360 614 500 7,554 8,695 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- 12,557 -0- 95 6,117 -0- 18,769 -0- 1,954 Spec; al Revenue Fund $1,560,149 $ 115,236 -0- -0- -0- 3,047 -0- 265 75,325 6,117 8,156 1 7t:;Q ?ot:; 391,850 41,554 35,823 21,357 26,803 945,316 31,090 22,148 18,996 171,377 30,448 8,156 30,947 1,775,865 \/,570) -0- Tota 1 (Memorand um Only) $1,560,149 115,236 $ 3,360 614 500 10,601 8,695 265 75,325 6,117 8,156 1 7RQ 01!'! 391,850 41,554 35,823 21,357 26,803 945,316 31,090 22,148 31,553 171,377 30, 543 14,273 30,947 1,794,634 (7,';111)) 1,954 See accompanying notes to financial statements -3- , -, OUTREACH & ESCORT, INC. STATEMENT OF CHANGES IN FUND SALA'NCE FOR THE YEAR ENDED JUNE 30, 1985 General Special Fixed Asset General Revenue Account Fund Fund 'Grou ~ Beginning Fund Sal ance $43,224 $13,388 $ 55,385 Excess of revenue over expenditures ' ss 1983/84 carryover 1.954 -0--0- fund expensed -0-(7,570) -0- Net additions to fixed asset fund -0--0-96 2 829 , Ending Fund Bal ance $45 2178 $ 52818 $152 2214 Tota 1 (Memorandum Onl::.) $111,997 1,954 (7,570) 96 2 829 $203,210 See accompanying notes to financial statements -4- , " " ,-) OUTREACH & ESCORT, INC. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 3D, 1985 Note A: Summary of Significant Accounting Policies 1. Backqround Outreach & Escort, Inc., is a non-profit organiza- tion pursuant to the General Nonprofit Corporation Law of the State of California. Accordingly, no provlslon for income taxes is included i~ the accompanying financial statements. Since its incorporation in 1979, Outreach & Excort, Inc., has administered, coordinated and promoted services for the aged and the handicapped of Santa Clara County. To this end, Outreach & Escort, Inc .• obtained funding from the Council on Aging'of Santa Cl ara County, Ci ty of San Jose, Ci ty of Santa:.C:tar.a, Metropolitan Transportation Commission, the County of Santa Clara, United Way and private donations. t"" •• _..J i'lL'> _ ...... ' ... ~.; "" ... The accounts of Outreach & Escort, Inc., are organi- zed on the basi s of funds and account groups, each of which are considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise of assets, 1 iabil ities, fund equity, revenue and expenditures. Resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into two fund types as follows: General Fund The General Fund is the general operating fund of the agency. It is used to account for financial resources such as contributions and interest income, not required to be accounted for in ?inoi;h9:r f"n::!. Special Revenue Fund -The Special Revenue Fund is used to account for the proceeds of special revenue sources that are legally restricted to expenditures for specified purposes. -5-1-(1 ,-, ) -1.. : 3. Fixed Assets Nonexpendable property and equipment is expensed in the period of acquisition. Property acquired by Outreach & Escort, Inc., is considered to be owned by Outreach & Escort, Inc.. while used in the program for which it was purchased, but may revert to the grant source if the intended program purpose is no longer benefitted. Fixed Assets used in agency operations are accounted for in the general fixed asset account group. All fixed assets are valued at historical cost or estimated historical cost, if actual historical cost is not available. Donated fixed '.assets are valued at their estimated fair value at the date donated. No depreCiation expenses are charged. (See 4 below -Schedule of General Fixed Assets). 4. Schedule of General Fixed Assets General Fixed Assets: Van ...... ,--: ........... 'lC"'-4-'m jl~A ~el '+~l')tI i'lf"'.,; 1l00e_nt Office furniture and equipment Total General Fixed Assets 5. Basis of Accounting $ 23,000 R5.393 43,1:l2! $152,214 The books and records of Outreach 8. Escort, Inc., are maintained on a cash basis. Provisions have been made at the end of the accounting period to recognize the accrual basis of accounting under which revenues are recognized when services have been rendered and expenses are recognized when incurred. 6. Accrued leave Time It is the pol icy of Outreach 8. Escort, Inc., to pay accrued vacation prior to the fi scal year end when n'l.t t a V,'2 n., 5; r: k 1 " '1" pis 0 aid as use d tot h e maximum allowable; however, not pald upon termina- tion. -6- Note B: Accrued Liabilities Accrued liabIlities represent fares received, which have not yet been earned in fiscal year ended June 30, 1985. Note C: In-Kind -. -- In-Kind expenditures are related to amounts charged to operations for time and services donated to the agency by volunteers and subcontracting agencies. A corresponding increase in income is entered for the estimated value of services performed. , Note D: Contract Receivable Contract Receivabl e represents the excess of contract expenditures over contract r~ceipts for the year ended June 30, 1985. Note E: Contract Payable Co n tr act P ayab 1 e represent s cont rac t rece i pt.s-. in~:~~'ee-s s of contract expendi tures for the year ended June 30, 1984 • .......... "7. I' .... ~~_. n ••• , ., __ T ......... _ .... Program income in excess of the 10% required local match by T .D.A. 4.5 Funds not expended during the contract period aggregating to $15,647, has been deferred to the 1985/1986 contract year. -7- ,". ~ Board of Directors Outreach & Escort, Inc. San Jose, California The audited financial statements of Outreach & Escort., Inc •• and our report thereon are presented in the preceding section of this report. The information presented hereinafter is for purposes of additional analysis and is not required for a fair presentation of the financial position, revenue, and expendi- tures, and changes in fund bal ances of Outreach & Escort, Inc • . Such information has been subjected to the auditing p·tocedures appl ied in our examination of the financial statements and, in our opinion, is fairly stated in all materiaT respects in relation to the financial statements taken as a .whole. San Francisco, California September 13, 1985 -8- .. OUTREACH & ESCORT, INC. STATEMENT Of REVENUE ANO EXPENOITURES BY SPECIAL REVENUE FUND FOR THE YEAR ENOEO JUNE 30, 198r ; ... ~ ..... ,'" .~ ~:,,' . .' • ".!' ;"; Council Kttropo\1tan Total Revenue United on Transportatio City of City of (Memorandum Shar1n9 -.!!.!..L _1!.!l!!!L Commi s10n San Jose Santa Cj o!lra O.l~l Revenue Contract revenue $120,266 $12,000 1144,293 5236,879 5 923,676 $123,035 51,560,149 Progr am hcome -0· -0-U 8,512 93,879 12,119 115,236 Contributions -0--0-825 2,201 21 -0-3t 047 Other -0--0--0--0 -265 -0-265 local share -0--0-31,054 21,661 15,530 7,080 75,325 Al1ocatton (rom ge. ra1 fund 6,117 -0--0--0--0--0-6,117 AllocatIon frOm Unl •• Way 8,156 -=..!1..::... -0--0--0--0-8,156 Tota 1 Revenue 134,539 12,000 176,238 269,253 1,033,371 142,894 1,768,295 ExpendHures , i Salaries 93,363 -0-63,631 79,39B 125,679 29,779 391,B50 Payroll taxes B,968 -0-7.532 10,503 11,686 2,765 41,554 fringe benefits 8.364 -0-4,909 6,258 12,852 3,440 35,823 Contractua 1 ser'l1c[ -; 1,226 2,000 1,869 4,359 10,374 1,529 21.351 Tr ave 1 4,176 -0-13,246 8.103 1,106 172 26,803 TrlHlspot"tat ion -0--0-34,501 110,782 710,453 89,574· 945,316 Rent . 2,166 -0-3,095 4.952 18,419 2,458 31,090 Supplles. 1,497 254 2.154 4,325 12,202 1.716 22,148 Equipment -0--0-52 3,491 15,412 41 18,996 Adm1n1strat\on 12 ta88 1,440 10,865 29,429 100,000 16.755 171,377 Other 1.891 150 3.331 7,653 15,18B 2,235 30,448 Al1o,!tfon to rever.ve Sharin9 -0-8,156 -0--0--0--0-8,156 In-I< fnd expend1tur"¥s -0-......:.l1.::.. 30.947 -0--0--0-30,947 Total Expenditures Less 1983/1984 carro~er 134.539 12,000 176,238 269,253 1,033,371 150,464 1,775,865 ftmd expensed -0--=..!1..::... -0--0--0-P,570) P ,570) Excess of reVenue over -O~ expend1 tures $ -0-$-=..!1..::... $ -o-S -0-5 5 -0 5 -0-.:' ' . .. ; Se~ lcc&mpany1ng notes to ftnllnctal st tements \' '\"l _0 • ........... • > Board of Directors Outreach & Escort, Inc. San Jose, California We have examined the balance sheet of Outreach & Escort, Inc., at June 30, 1985 and the reI ated statement of revenue and expenditures and statement of changes in fund ,balance for the year then ended, and have issued our report thereon dated September 13, 1985. As part of our examination we made a study and evaluation of 'those internal accounting and administrative control pr::.o..c.e:tluX:,e,s of Outreach & Escort, Inc., we considered necessary to evaluate the system as required by generally accepted auditing standards. The ourpo.se .of our study an~ evaluation was to determine the "nature, t'lffiing, anu e;(t~lIt v,'-"'1I'~·"'uutc,.li'~· y,')Cd~·:",'e:,;., n::czs!';<~";'J' for expressing an opinion on the above mentioned financial statements. Our study and evaluation was more I imited than would be necessary to express an oplnlon on the system of internal accounting control taken as a whole. The management of Outreach & Escort, Inc., is responsible for establishing and maintaining a system' of internal accounting control. In fulfilling this resporislbllity,' estimates and judgements by management are required to assess the expected benefits and reI ated costs of control procedures. The ob- jectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial state- ments in accordance with generally accepted accounting principles. Because of inherent limitations in any system ,of internal account'in~ COd\.,'v'" '-" U. J ~. : •• ·;..gular;::·:~:;"'·may n2vertheles~. occur and not be detected. Al so, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in condi- tions or that the degree of campI iance with the procedures -10- ! . may deteriorate. Our study and evaluation made for the limited purpose described in the. first. paragraph would not necessarily discldse all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of Outreach & Escort, Inc., taken as a whol e. Our study and evaluation disclosed no condition that we bel ieved to be a material weakness. San Francisco, California September 13, 1985 -11-