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January 25, 2023
Sandy Lila - Lease Manager
Department of Real Estate and Asset Management
44l4l SW 2 Avenue, 3rd Floor
Miami, FL 33130
RE: Lease #3678
Dear Ms. Lila:
Over the past 48 years, Miami Bridge Youth and Family Services, Inc. (Miami Bridge) created a strong legacy in serving at -
risk youth and their families as the only 24/7/365 emergency temporary shelter serving Miami -Dade County. They
currently serve at -risk children in the shelter referenced in lease #3678 located at 2810, 2910, and 2916 NW South River
Drive. This lease was initially executed in August 1989. The pandemic created many challenges for them, and they needed
to stabilize their infrastructure to assure that vital services continue. Therefore, Miami Bridge is now merging their
organization and current operations with us at Lutheran Services Florida (LSF). We are one of the largest nonprofits in
Florida serving "at -risk youth" across many programs and services.
Together, we can make the greatest impact by leveraging LSF leadership and our strong local community relationships to
continue our mission well into the future. The first step in this process has been completed with the execution of a
management services agreement between Miami Bridge and Lutheran Services Florida who will manage our CINS/FINS
youth and family programming in South Florida which includes the operation of Miami Bridge's 24-hour emergency shelters
in Miami and Homestead for youth in crisis.
All other service contracts and operations are in the process of moving under LSF's children and family's service umbrella
some of which have already been transitioned. Once our acquisition is complete, we will rebrand our name to LSF Miami
Bridge.
In accordance with the current lease requirements stipulated in Section 35 of the RLAwith Miami Bridge, we are formally
requesting written consent of the City and TIIF to transfer the current lease and terms of this property to LSF or to
relinquish the current lease and execute a new lease directly with LSF. LSF Miami Bridge will continue providing critically
needed temporary shelter services to children atthissitewith no change to the current use of the property.
Please know that we are committed to make this transition for the vulnerablechildren and families weserve seamless, and
that we remain absolutely committed to continue delivering critically needed residential, counseling, and supports ervices
to at -risk youth and their families Miami. There will be no disruption in the continuity of these services and in factwe hope
to enhance servi ce del iver to fa mi I i es in the coming months.
Please let us know what our next steps would be to initiate this change. Contacts for this initiative will be David Sharfman
with Miami Bridge (305) 606-7301 and Justin Henry with LSF (813) 508-8915. Thank you for your guidance in this matter
and for your continued partnership in serving our at -risk youth in Miami -Dade.
Sincerely,
Michael Carroll
Executive Vice President Programs
Lutheran Services Florida, Inc.
13834 Backup -SUB
Central Services
3627 W. Waters Avenue • Tampa, FL 33614 • Telephone 813-875-1408 • Fax 813-875-1302 • www.LSFnet.org
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MIAMI BRIDGE
YOUTH & FAMILY SERVICE& INC.
January 26, 2023
Sandy Lila - Lease Manager
City of Miami
Department of Real Estate and Asset Management
444 SW 2 Avenue, 3rd Floor
Miami, FL 33130
RE: Revokable Lease (RLA) #3678 between City of Miami and Miami Bridge Youth & Family Services for
City owned property located at 2810, 2910, and 2916 NW South River Drive, Miami, FL.
Dear Ms. Lila:
In accordance with the lease requirements stipulated in Section 35 of RLA #3678 Miami Bridge formally requests
written consent of the City of Miami and the Board of Trustees of the Internal Improvement Trust Fund of the State
of Florida (TIIF) to transfer the current lease and terms of this property to Lutheran Services Florida (LSF) or to
relinquish the current lease and execute a new lease directly with LSF.
This lease was initially executed in August 1989 and during this time Miami Bridge has fulfilled its mission of
serving at -risk youth and their families as the only 24/7/365 emergency temporary shelter serving Miami -Dade
County. The pandemic created many challenges and to stabilize our infrastructure and assure our vital services
continue, we entered into a management services agreement July 1, 2022, with Lutheran Services Florida (LSF),
one of the largest nonprofits in Florida serving "at -risk youth" across many programs and services in Florida.
We plan to officially merge with LSF as soon as arrangements are made for the proper transfer of leases and
contracts. Our new name will be "LSF Miami Bridge" and this entity will continue to provide critically needed
temporary shelter services to children at this site with no change to the current use of the property.
All other service contracts and operations are in the process of moving under LSF's umbrella, some of which have
already been transitioned. LSF was awarded the Florida Network South Florida Children In Need of
Services/Families In Need of Services (CINS/FINS) youth and family programming contract on November 1, 2022
that includes the operation of Miami Bridge's 24-hour emergency shelters in Miami and Homestead for youth in
crisis.
LSF Miami Bridge will continue providing critically needed temporary shelter services to children at this site with
no change to the current use of the property. We are committed to make this transition for the vulnerable children
and families we serve seamless, and to continue under the new entity to deliver critically needed residential,
counseling, and support services to at -risk youth and their families Miami. There will be no disruption in the
continuity of these services and in fact we hope to enhance service delivery to families in the coming months.
Please let us know what our next steps are to initiate this change. Contacts for this initiative will be David Sharfivan
with Miami Bridge (305) 606-7301 and Justin Henry with LSF (813) 508-8915. Thank you for your guidance in
this matter and for your continued partnership in serving our at -risk youth throughout Miami -Dade County.
Sincerely,
Steve Lezman
President, Board of Directors
Family Services and Shelter for Youth
2810 NW SOUTH RIVER DR • MIAMI, FL 33125 • (305) 635-8953 • 326 NW 3RD AVE. • HOMESTEAD, FL 33030 • (305) 246-8956
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Lutheran Services Florida, Inc.
and Subsidiary
Consolidated Financial and Compliance Report
June 30, 2021
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Contents
Independent auditor's report
Financial statements
Consolidated statements of financial position
Consolidated statements of activities
Consolidated statements of functional expenses
Consolidated statements of cash flows
Notes to consolidated financial statements
1-2
3
4
5-6
7
8-25
Supplementary information
Schedule of government grants and contracts
Schedule of substance abuse and mental health services, program/cost center
actual expenses and revenues:
26
Part I: Actual funding sources and revenues 27-33
Part II: Actual expenses 34-40
Schedule of state earnings 41
Schedule of bed -day availability payments 42
Schedule of related party transaction adjustments 43
Independent auditor's report on internal control over financial reporting and on
compliance and other matters based on an audit of financial statements
performed in accordance with Government Auditing Standards
44-45
Independent auditor's report on compliance for each major federal program and state
financial assistance project and report on internal control over compliance required by
the Uniform Guidance and State of Florida Chapter 10.650, Rulos of the Auditor General 46-47
Schedule of expenditures of federal awards and state financial assistance 48-52
Notes to schedule of expenditures of federal awards and state financial assistance 53-55
Schedule of findings and questioned costs 56-59
Corrective action plan 60
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Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
RSM
RSM US LLP
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Lutheran Services Florida, Inc.
and its subsidiary, which comprise the consolidated statements of financial position as of June 30, 2021
and 2020, the related consolidated statements of activities, functional expenses and cash flows for the
years then ended, and the related notes to the consolidated financial statements (collectively, the
financial statements).
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these 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 audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Lutheran Services Florida, Inc. and its subsidiary as of June 30, 2021 and 2020, and
the changes in their net assets and their cash flows for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
THE POWER OF BEING UNDERSTOOD
AUDIT fAX CONSULT'NG
1
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Other Matters - Other Information
Our audit was conducted for the purpose of forming an opinion an the financial statements as a whole.
The accompanying schedule of expenditures of federal awards and state financial assistance, as required
by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards and State of Florida Chapter 10.650, Rules of the
Auditor General, and other supplementary information is presented for purposes of additional analysis
and is 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 10,
2022, on our consideration of Lutheran Services Florida, Inc. and its subsidiary's 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 solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of Lutheran Services Florida, Inc. and its subsidiary's internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Lutheran Services Florida, Inc. and its
subsidiary's internal control over financial reporting and compliance.
� $N as LbP
Orlando, Florida
February 10, 2022
2
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Financial Position
June 30, 2021 and 2020
2021
2020
Assets
Current assets:
Cash and cash equivalents
Accounts receivable, net (Note 3)
Current portion of gifted facilities (Note 6)
Prepaid expenses
Total current assets
Investments (Note 2)
Assets limited as to use (Note 2)
Beneficial interest in assets held by others (Notes 2 and 5)
Gifted facilities, net of current portion (Note 6)
Property and equipment, net (Note 4)
Other assets
Total assets
Liabilities and Net Assets
Current liabilities:
Accounts payable (Note 7)
Accrued salaries and payroll related expenses
Other accrued expenses
Refundable advances
Current portion of capital lease obligations (Note 10)
Current portion of note payable (Note 9)
Total current liabilities
Capital lease obligations, net of current portion (Note 10)
Note payable, net of current portion (Note 9)
Total liabilities
Commitments and contingencies (Notes 10, 14, 16 and 19)
Net assets (Notes 11 and 12):
Without donor restrictions
With donor restrictions
Total net assets
Total liabilities and net assets
See notes to consolidated financial statements.
3
$ 20,180,768
22,671,764
1,945,428
1,189,707
$ 13,643,525
21,499,115
1,901,211
1,049,757
45,987,667 38,093,608
1,246,560 1,000,392
280,812 185,994
996,448 828,291
2,925,122 4,606,887
4,990,412 4,656,233
256,424 180,318
$ 56,683,445 $ 49,551,723
$ 18,664,631
6,864,645
2,152, 541
13,410,708
417,619
239,739
$ 24,154,432
5,771,843
668,431
3,639,964
391,016
222,254
41,749,883
1,051,536
2,123,719
34,847,940
1,469,156
2,368,705
44,925,138
38,685,801
3,459,296
8,299,011
2,084,811
8,781,111
11,758,307 10, 865, 922
$ 56,683,445 $ 49,551,723
Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Activities
Years Ended June 30, 2021 and 2020
2021 2020
Without Donor With Donor
Restrictions Restrictions
Without Donor With Donor
Total Restrictions Restrictions
Total
Revenues and support:
Govemment grants and contracts $ 257,724,512 $ $ 257,724,612 $ 244,881,967 $ - $ 244,881,967
In -kind contributions (Note 15) 3,205,638 3,205,638 3,832,015 - 3,832,015
Contributions 623,614 1,840,906 2,364,619 662,707 2,043,693 2,706,400
Program service fees 1,048,301 1,048,301 1,087,134 - 1,087,134
Other income, net 264,586 - 264,586 511,834 - 511,834
Investment income, net 331,771 331,771 91,959 - 91,959
Change in value of beneficial interest in
assets held by others (62,320) 220,477 168,157 (21,727) - (21,727)
Net assets released from restrictions (Note 11) 2,643,482 (2,643,482) 3,237,656 (3,237,656)
Total revenues and support 265,689,584 (482,100) 265,107,484 254,283,545 (1,193,963) 253,089,582
Expenses:
Program services 255,867,497 255,867,497 246,560,151 - 246,560,151
Supporting services 8,347,602 8,347,602 7,512,391 - 7,512,391
Total expenses 264,215,099 264,215,099 254,072,542 254,072,542
Change in net assets 1,374,485 (482,100) 892,385 211,003 (1,193,963) (982,960)
Net assets:
Beginning 2,084,811 8,781,111 10,865,922 1,873,808 9,975,074 11,848,882
Ending $ 3,459,296 $ 8,299,011 $ 11,758,307 $ 2,084,811 $ 8,781,111 $ 10,865,922
See notes to consolidated financial statements.
4
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statement of Functional Expenses
Year Ended June 30, 2021
Program Services Supporting Services
Substance
Abuse and Youth and Total General Total
Mental Health Children Family Resettlement Adult Program and Supporting Total
Services Services Services Services Services Services Administrative Advancement Services Expenses
Salaries $ 3,429,440 $ 23,085,477 $ 17,869,949 $ 4,527,753 $ 873,740 $ 49,786,359 $ 4,526,977 $ 267,179 $ 4,794,156 $ 54,580,515
Payroll taxes and employee benefits 674,317 6,341,295 4,096,219 1,043,906 228,772 12,386,509 1,009,981 51,283 1,061,264 13,447,773
Total salaries and
related expenses 4,103,757 29,426,772 21,968,168 5,571,659 1,102,512 62,172,868 5,536,958 318,462 5,855,420 68,028,288
Professional fees and contract services 630,448 1,484,587 315,272 107,083 120,051 2,557,441 593,113 23,851 616,964 3,174,405
Subcontractor expenses 141,986,538 18,308,894 1,435,413 724,743 - 162,455,588 - 162,455,588
Office expenses and program supplies 107,228 4,072,204 438,318 762,281 51,456 5,421,487 130,315 3,554 133,869 5,555,356
Food 1,340,710 214,276 41,547 - 1,596,533 - - 1,596,533
Assistance to individuals 4,276,501 56,994 451,144 498,209 5,282,848 - - 5,282,848
Occupancy 236,173 4,077,785 785,338 1,043,864 114,248 6,257,408 571,183 15,351 586,534 6,843,942
Repairs and maintenance 434 1,786,622 249,256 167,994 6,848 2,211,154 23,313 797 24,110 2,235,264
Equipment costs 197,695 444,812 100,082 63,409 8,917 814,915 154,109 25,551 179,660 994,575
Insurance and taxes 27,521 568,822 338,666 74,862 17,596 1,027,457 92,164 1,307 93,471 1,120,928
Transportation and travel 34,617 776,465 744,454 58,009 23,385 1,636,930 84,399 10,961 95,360 1,732,290
Postage, panting and publication 67,086 78,975 49,745 28,449 10,865 235,120 36,101 10,991 47,092 282,212
interest 103,227 - 103,227 170,546 - 170,546 273,773
En -kind expenses (Note 15) 3,049,669 110,366 45,603 - 3,205,638 - - - 3,205,638
Other operating expenses 42,170 94,507 123,601 8,313 29,808 298,399 414,633 3,642 418,275 716,674
Total expenses before
depreciation and
amortization 147,333,667 69,890,662 26,929,949 9,138,950 1,983,895 255,277,013 7,806,834 414,467 8,221,301 263,498,314
Depreciation and amortization 9,361 474,163 64,821 35,977 6,162 590,484 126,301 126,301 716,785
Total expenses $147,343,028 $ 70,364,715 $ 26,994,770 $ 9,174,927 $ 1,990,057 $ 255,867,497 $ 7,933,135 $ 414,467 $ 8,347,602 $ 264.215,099
See notes to consolidated financial statements.
5
THIS DOCUMENT IS A SUBSTITUTION
Lutheran Services Florida, inc. and Subsidiary
Consolidated Statement of Functional Expenses
Year Ended June 30, 2020
Program Services Supporting Services
Substance
Abuse and Youth and Total General Total
Mental Health Children Family Resettlement Program and Supporting Total
Services Services Services Services Adult Services Services Administrative Advancement Services Expenses
Salaries $ 3,254,743 $ 23,130,271 $ 13,981,236 $ 3,462,838 $ 897,993 $ 44,727,081 $ 4,188,857 $ 186,391 $ 4,375,248 $ 49,102,329
Payroll taxes and employee benefits 626,186 6,041,194 3,165,541 806,228 287,627 10,926,776 840,573 49,358 889,931 11,816,707
Total salaries and
related expenses 3,880,929 29,171,465 17,146,777 4,269.066 1,185,620 55,653,857 5,029,430 235,749 5,265,179 60,919,036
Professional fees and contract services 611,319 1,681,489 198,529 106,383 203,457 2,801,177 521,991 19,838 541,829 3,343,006
Subcontractor expenses 143,904,470 18,206,023 387,175 702,807 580,066 163,780,541 - - - 163,780,541
Office expenses and program supplies 190,017 776,813 332,494 104,666 46,444 1,450,434 118,407 932 119,339 1,569,773
Food 1,583,561 219,306 90 - 1,802,959 - - 1,802,959
Assistance to individuals 4,031,815 73,590 550,591 313,670 4,979,666 - - 4,979,666
Occupancy 211,035 4,089,268 773,831 585,055 149,416 5,808,605 557,728 10,438 568,166 6,376,771
Repairs and maintenance 2,633 1,063,968 245,357 45,588 25,197 1,382,743 36,838 366 37,204 1,419,947
Equipment costs 29,409 218,201 109,304 28,645 8,963 394,522 139,909 26,711 166,620 561,142
Insurance and taxes 21,676 517,667 235,936 50,384 18,932 844,595 88,595 1,026 89,621 934,216
Transportation and travel 190,738 749,134 751,894 45.267 30,703 1,767,736 139,805 11,217 151,022 1.918,758
Postage, printing and publication 28,851 40,945 42,205 17,312 18,435 147,748 17,757 12,931 30,688 178,436
interest - 111,875 - - 111,875 170,299 - 170,299 282,174
In -kind expenses (Note 15) 7,600 3,683,891 8,771 131.753 3,832,015 - - - 3,832,015
Other operating expenses 54,869 1,062,969 113,936 2,552 22,648 1,256,994 146,766 4,768 151,534 1,408,528
Total expenses before
depreciation and
amortization 149,133,546 66,989,104 20,639,107 6,650.159 2,603,551 246,015,467 6,967,525 323,976 7,291,501 253.306,968
Depreciation and amortization 8,666 461,571 68,285 - 6,162 544,684 220,890 - 220,890 765,574
Total expenses $ 149,142,212 $ 67,450.675 $ 20.707.392 $ 6.650.159 $ 2,609,713 $ 246,560,151 $ 7,188,415 $ 323,976 $ 7,512,391 $ 254.072,542
See notes to consolidated financial statements.
6
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Years Ended June 30, 2021 and 2020
2021
2020
Cash flows from operating activities;
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided by operating activities:
Depreciation and amortization
Loss on sale/disposal of property and equipment
Net realized and unrealized gains on investments and assets
limited as to use
Change in value of beneficial interest in assets held by others
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Prepaid expenses
Gifted facilities
Other assets
Increase (decrease) in:
Accounts payable
Accrued salaries and payroll related expenses
Other accrued expenses
Refundable advances
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of investments and assets limited as to use
Proceeds from the sale of investments
Purchases of property and equipment
Proceeds from the sale of property and equipment
Net cash used in investing activities
Cash flows from financing activities:
Net payments on line of credit
Principal payments on capital lease obligations
Repayments of note payable
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents:
Beginning
Ending
Supplemental disclosure of cash flow information:
Cash paid during the year for interest
Supplemental schedule of noncash investing and financing activities:
Conversion of line of credit to note payable
See notes to consolidated financial statements.
7
$ 892,385 $ (982,960)
716,785
(263,958)
(168,157)
(1,172,649)
(139,950)
1,637,548
(76,106)
(5,489,801)
1,092,802
1,484,110
9,770,744
765,574
986,084
(21,050)
21,727
(355,533)
(115,207)
392,156
(587)
4,312,712
633,897
(369,705)
(5,208,123)
8,283,753
58,985
(223,659)
146,631
(1,050,964)
(553,756)
829,592
(359,409)
34,400
(1,127,992)
(49,173)
(391,017)
(227,501)
(15,842)
(366,124)
(159,041)
(618,518)
(541,007)
6,537,243
(531,195)
13,643,525 14,174,720
$ 20,180,768 $ 13,643,525
$ 273,773 $ 282,174
$ 2,750,000
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies
Nature of activities: Lutheran Services Florida, Inc. (LSF) was organized on July 1, 1982, as a nonprofit
organization to provide various social ministries throughout the State of Florida, LSF's programs are
funded by federal, state, and local governmental grants and contracts, various program service fees,
contributions, church grants and other sources.
LSF is the sole member of Lutheran Nonprofit Management Services, LLC dlbla LSF Health Systems
(LSF Health), which was organized on August 13, 2010, to govern and advise LSF's managing entity
contract over substance abuse and mental health services provided in the Northeast region of Florida
effective July 1, 2012,
The principal social services provided by Lutheran Services Florida, Inc. and Subsidiary include services
to children, troubled youth and their families, refugees, the unemployed, incapacitated adults and victims
of disasters through the following programs:
Substance Abuse and Mental Health Services: Provides substance abuse and mental health services
to adults and children in 23 counties in Northeast Florida.
Children Services: Provides preschool care for disadvantaged children in licensed facilities and meals to
children in licensed day care homes.
Youth and Family Services: Provides residential, counseling and case management services to teens
and their families.
Resettlement Services: Provides job training, counseling, financial assistance and placement to new
entrants to the United States.
Adult Services: Provides guardianship and care management programs to elderly, mentally
incapacitated and disabled persons. Also provides temporary and permanent housing for the homeless
and health care treatment to low-income HIV -infected individuals.
The following Lutheran judicatories are the founding members of the Organization: the Florida -Bahamas
Synod of the Evangelical Lutheran Church in America and the Florida -Georgia District of the Lutheran
Church -Missouri Synod.
A summary of the Organization's significant accounting policies follows:
Principles of consolidation: The consolidated financial statements include the accounts of LSF and
LSF Health (collectively, the Organization). All significant intercompany transactions have been
eliminated in consolidation.
Basis of accounting: The accompanying consolidated financial statements have been prepared on the
accrual basis of accounting.
Basis of presentation: A not -for -profit organization is required to report information regarding its financial
position and activities according to two classes of net assets: without donor restrictions and with donor
restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported
as follows:
Net assets without donor restrictions: Net assets that are not subject to donor -imposed stipulations but
may be designated for specific purposes by action of the Board of Directors.
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Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Net assets with donor restrictions: Net assets subject to donor -imposed stipulations that may or will be
met either by actions of the Organization, passage of time, or permanently maintained by the
Organization. When a restriction expires, net assets with donor restrictions are reclassified to net assets
without donor restrictions and reported in the consolidated statements of activities as net assets released
from restrictions.
Use of estimates: The preparation of consolidated financial statements in accordance with generally
accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the
date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents: Cash and cash equivalents includes all highly liquid fixed income
instruments purchased with original maturities of three months or less.
Concentrations of credit risk: The Organization's financial instruments that are exposed to
concentrations of credit risk include cash and cash equivalents and government grants and contracts and
related accounts receivable. Cash and cash equivalents include accounts placed with federally insured
financial institutions. Such accounts may at times exceed federally insured limits. The Organization has
not experienced any losses on such accounts. The Organization's operating support and revenues
includes concentrations primarily from federal and state programs. Changes in operating support and
revenues from federal and state programs could significantly impact the Organization, including a
reduction in the program services offered by the Organization; however, management does not anticipate
any such changes in the near -term.
Accounts receivable: Accounts receivable under grants and funding contracts and program service fees
are due in less than one year. Management believes accounts receivable under grants and funding
contracts are fully collectible and has not provided an allowance for doubtful accounts. Accounts
receivable for program service fees are stated at unpaid balances, less an allowance for doubtful
accounts. The Organization provides for losses on accounts receivable based on historical experience
and any other circumstances which may affect the ability of payors to meet their obligations. It is the
Organization's policy to charge off uncollectible accounts when management determines the accounts
receivable will not be collected.
Gifted facilities: The Organization accounts for gifted facilities as contributions with donor restrictions in
the period in which the right to use the asset is acquired, at the fair value of the benefit expected to be
received over the expected term of use by the Organization and is released from restrictions when used.
A gifted facilities asset is recorded for any future benefit expected to be recognized and is amortized to
rent expense as the Organization uses the facilities over the term of the applicable lease.
Investments and investment income, net: Investments are reported at fair value. Investment income,
net, reported in the accompanying consolidated statements of activities, includes realized and unrealized
gains and losses and interest and dividend income, net of investment expenses, as increases or
decreases in net assets without donor restrictions.
Assets limited as to use: Assets limited as to use include investments held by trustees to fund the
Supplemental Executive Retirement Plan (SERF) as more fully described in Note 13.
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Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Property and equipment: Property and equipment are recorded at cost, if purchased or at estimated fair
value at the date of receipt if acquired by gift, and those in excess of $5,000 are capitalized. Depreciation
expense related to property and equipment is computed using the straight-line method over the estimated
useful lives of the related assets. Leasehold improvements are amortized over the shorter of the
remaining lease term or the useful life of the asset. Maintenance and repairs are charged to operations
when incurred. Betterments and renewals are capitalized. When property and equipment are sold or
otherwise disposed of, the asset account and the related accumulated depreciation account are relieved,
and any gain or loss included in operations.
Property acquired with governmental funds is considered to be owned by the Organization while used in
the program for which it was purchased or in future authorized programs; however, its disposition as well
as the ownership of any proceeds therefrom is subject to applicable regulations.
impairment of long-lived assets: The carrying value of property and equipment is reviewed for
impairment whenever events or changes in circumstances indicate such value may not be recoverable.
Recoverability of assets or asset groups to be held and used is measured by a comparison of the carrying
amount of an asset or asset group to future net cash flows expected to be generated by the asset or
asset group. If such assets or asset groups are considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value
of the assets or asset group. Assets or asset groups to be disposed of are reported at the lower of the
carrying amount or fair value less cost to sell. No impairment of the Organization's long-lived assets or
asset groups have been recognized during the years ended June 30, 2021 and 2020.
Contributions and donor -imposed restrictions: Unconditional promises to give are recognized as
contributions in the period received at their fair value. Conditional contributions or promises to give are
not recognized until they become unconditional, that is, when the conditions on which they depend are
substantially met. Contributions other than cash are recorded at their estimated fair value on the date
received.
Unconditional contributions received are recorded as net assets without donor restrictions or net assets
with donor restrictions support depending on the existence or nature of any donor -imposed restrictions.
Contributions that are restricted by the donor are reported as increases in net assets without donor
restrictions if the restrictions expire or are otherwise satisfied in the fiscal year in which the contributions
are recognized. When a donor -imposed restriction expires, that is, when a stipulated time restriction ends
or purpose restriction is accomplished, net assets with donor restrictions are reclassified into net assets
without donor restrictions and are reported in the accompanying consolidated statements of activities as
net assets released from restrictions.
Donated materials are reflected in the accompanying consolidated financial statements at their estimated
fair value at date of receipt. Donated services are recognized and recorded at their estimated fair value
only to the extent they create or enhance nonfinancial assets or require specialized skills, are provided by
individuals possessing those skills, and would typically need to be purchased if not provided by donation.
The Organization records donated goods and services as in -kind support and expenses in the
accompanying consolidated statements of activities and consolidated statements of functional expenses.
Government grants and contracts: Government grants and contracts are considered exchange
transactions if each party receives and sacrifices commensurate value. Funds from these exchange
transactions are not considered contributions and are deemed to be earned and reported as revenue
when such funds have been expended towards the designated purpose. Funds received in advance and
not yet earned are recorded as refundable advances.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1, Nature of Activities and Significant Accounting Policies (Continued)
Government grants and contracts not considered exchange transactions are recognized as revenue when
the funds are utilized by the Organization to carry out the activity stipulated by the grant or contract. The
grants and contracts can be terminated by the grantor or refunding can be required under certain
circumstances coupled with other performance and/or control barriers. For these reasons, these grant
and contract agreements are considered conditional. Accordingly, amounts received, but not recognized
as revenue, are classified in the consolidated statements of financial position as refundable advances.
Program service fees: Revenue from program service fees is recognized as the program services are
provided.
Functional expense allocations: The costs of providing the various programs and supporting services
have been summarized on a functional basis in the consolidated statements of activities and in the
consolidated statements of functional expenses. Accordingly, certain costs have been allocated among
the various programs and supporting services benefited. Salaries and related payroll expenses are
allocated among functional categories based on the estimated proportion of time spent to each function.
All other expenses are allocated based on management's estimate of the relative functional activity.
Income taxes: The Organization is exempt from federal income taxes under Section 501(c)(3) of the
Internal Revenue Code and from state income taxes under similar provisions of the Florida Statutes. LSF
is the sole member of LSF Health, which is considered a disregarded entity for federal and state income
tax purposes. Therefore, no provision for income taxes has been included in the accompanying
consolidated financial statements.
The Organization follows accounting standards relating to accounting for uncertainty in income taxes.
Management assessed whether there were any uncertain tax positions which may give rise to income tax
liabilities and determined that there were no such matters requiring recognition in the accompanying
consolidated financial statements. Generally, the Organization is no longer subject to U.S. federal or state
income tax examinations by tax authorities for years before June 30, 2018.
Fair value measurements: The Organization measures its financial assets and liabilities at fair value
using a three-tier hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are described below:
Level 1: Valuation based on unadjusted quoted market prices in active markets for identical assets or
liabilities.
Level 2: Valuation based on observable quoted prices for similar assets and liabilities in active markets.
Level 3: Valuation based on inputs that are unobservable and are supported by little or no market
activity, therefore requiring management's best estimate of what market participants would use
as fair value.
A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is
significant to the fair value measurement.
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Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
The following methods and assumptions were used to estimate the fair value of financial instruments:
Level 1: The Organization's Level 1 investments include money market funds, fixed income and equity
securities and real asset funds.
Level 2: The Organization's Level 2 investments include the beneficial interest in assets held by others
and is valued based on information provided by the Community Foundations (see Note 5)
which is primarily derived from or corroborated by observable market data as it relates to the
Community Foundations' underlying investments.
Level 3: The Organization's Level 3 investments include the beneficial interest in the Zerbst perpetual
trust and is valued based on the value of the underlying investments held in the trust.
Reclassifications: Certain reclassifications have been made to the 2020 consolidated financial
statements in order to conform to the 2021 presentation. These reclassifications did not result in a change
in previously reported change in net assets.
Recent accounting pronouncements: Certain accounting pronouncements which have been recently
issued by the Financial Accounting Standards Board (FASB) and are relevant to the Organization are as
fol lows:
In February 2016, the FASB issued its new lease accounting guidance in Accounting Standards Update
(ASU) 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the
following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease
liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a
discounted basis; and (2) A right -of -use asset, which is an asset that represents the lessee's right to use,
or control the use of, a specified asset for the lease term. Lessees will no longer be provided with a
source of off -balance sheet financing. Lessees must apply a modified retrospective transition approach
for leases existing at, or entered into after, the beginning of the earliest comparative period presented in
the consolidated financial statements. Nonpublic entities should apply the amendments for fiscal years
beginning after December 15, 2021. The Organization is currently evaluating the impact this ASU will
have on its consolidated financial statements.
In September 2020, the FASB issued ASU 2020-07, Not -for -Profit Entities (Topic 958): Presentation and
Disclosure by Not -for -Profit Entities for Contributed Nonfinancial Assets. This ASU is intended to improve
transparency in the reporting of contributed nonfinancial assets, also known as gifts -in -kind, for not -for -
profit entities. The ASU will require a not -for -profit organization to present contributed nonfinancial assets
as a separate line item in the consolidated statements of activities, apart from contributions of cash or
other financial assets. The ASU will also require enhanced disclosure, including disaggregation of
nonfinancial assets recognized by category and qualitative information about each category. The
amendments in this ASU will be applied on a retrospective basis and are effective for annual reporting
periods beginning after June 15, 2021. The Organization is currently evaluating the impact this ASU will
have on its consolidated financial statements.
The FASB has issued certain new or modifications to, or interpretations of, existing accounting guidance
in addition to the ASU's described above. The Organization has considered the new pronouncements and
does not believe that any other new or modified guidance will have a material impact on the
Organization's reported financial position or activities in the near term.
Subsequent events: Management has evaluated events subsequent to the consolidated statements of
financial position date for potential recognition and disclosure through February 10, 2022, which is the
date these consolidated financial statements were available to be issued.
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Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments
The following table summarizes major categories of the Organization's assets measured at fair value on a
recurring basis as of June 30, 2021 and 2020:
2021
Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ 26,866 $ - $ $ 26,866
Equity securities:
Emerging market funds 72,612 - 72,612
Small/mid cap funds 56,151 56,151
Preferred stock 24,584 24,584
Index funds 23,820 - 23,820
Convertible securities 25,499 - 25,499
Large growth funds 157,125 157,125
Large cap funds 159,967 159,967
Internationally developed funds 226,688 226,688
Fixed income securities:
Index bond funds 79,361 79,361
Intermediate duration bond funds 86,002 - 86,002
Corporate bond funds 112,842 - 112,842
Government bond funds 132,442 - - 132,442
Real asset funds 62,601 - 62,601
Total investments 1,246,566 - 1,246,560
Assets limited as to use:
Money market funds 14,020 - 14,020
Equity securities:
Large blend funds 80,671 - 80,671
Emerging market funds 64,189 64,189
Index funds 17,727 17,727
Fixed income securities:
Index bond funds 15,764 15,764
Short duration funds 27,359 - 27,359
Global bond funds 31,348 31,348
Intermediate duration bond funds 29,734 29,734
Total assets limited as to use 280,812 280,812
Beneficial interest in:
Assets held by others - 178,377 178,377
Perpetual trust - 818,071 818,071
Total beneficial interest in
assets held by others - 178,377 818,071 996,448
$ 1,527,372 $ 178,377 $ 818,071 $ 2,523,820
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Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments (Continued)
2020
Level 1 Level Level 3 Total
Investments:
Money market funds $ 32,885 $ $ $ 32,885
Equity securities:
Emerging market funds 40,719 40,719
Small/mid cap funds 32,847 - 32,847
Preferred stock 19,017 19,017
Index funds 20,614 20,614
Convertible securities 21,780 21,780
Large growth funds 165,540 165,540
Large cap funds 130,575 130,575
Internationally developed funds 167,456 167,456
Fixed income securities:
High yield bond funds 6,115 6,115
Index bond funds 55,729 - 55,729
Intermediate duration bond funds 67,563 - 67,563
Corporate bond funds 83,319 - 83,319
Government bond funds 108,251 - 108,251
Real asset funds 47,982 47,982
Total investments 1,000,392 1,000,392
Assets limited as to use:
Money market funds 8,010 8,010
Equity securities:
Large blend funds 54,985 - 54,985
Emerging market funds 43,084 - 43,084
Index funds 10,177 10,177
Fixed income securities:
Index bond funds 10,495 - 10,495
Short duration funds 18,619 - 18,619
Global bond funds 20,610 - 20,610
Intermediate duration bond funds 20,014 20,014
Total assets limited as to use 185,994 185,994
Beneficial interest in:
Assets held by others 140,016 - 140,016
Perpetual trust - - 688,275 688,275
Total beneficial interest in
assets held by others - 140,016 688,275 828,291
$ 1,186,386 $ 140,016 $ 688,275 $ 2,014,677
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Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments (Continued)
The Organization's investments in equity and fixed income securities are not concentrated in a single
entity or in a few entities, nor are there any specific industry concentrations.
The Board of Directors designates a portion of the Organization's cumulative investment return for
support of current operations; the remainder is retained to support operations of future years and to offset
potential market declines. The fixed amount determined by the Board of Directors at the beginning of
each fiscal year as part of the Organization's budgeting process considers the Organization's long and
short-term needs, present and anticipated financial requirements, and expected total return on its
investments (see Note 12).
Note 3. Accounts Receivable
Accounts receivable consists of the following at June 30, 2021 and 2020:
Managing entity contract
Other grants and funding sources
Program fees and other, net of allowance for doubtful accounts
of $256,388 and $24,555 in 2021 and 2020, respectively
2021
2020
$ 11,752,101 $ 11,164,453
10,338,789 9,508,815
580,874 825,847
$ 22,671,764 $ 21,499,115
Note 4. Property and Equipment
Property and equipment consists of the following at June 30, 2021 and 2020:
Land
Buildings and improvements
Vehicles
Leasehold improvements
Computer equipment and software
Furniture and equipment
Less accumulated depreciation and
amortization
Estimated
Useful Lives
(Years)
2021 2020
N/A
35
3-5
5
3-5
2-5
$ 1,610,899
3,672,521
1,077,407
4,793,558
780,139
1,538,929
$ 1,610,899
3,355,848
1,073,960
4,181,554
774,589
1,445,640
13,473,453 12,442,490
(8,483,041) (7,786,257)
$ 4,990,412 $ 4,656,233
Depreciation and amortization expense for the years ended June 30, 2021 and 2020 was $716,785 and
$765,574, respectively.
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Notes to Consolidated Financial Statements
Note 5. Beneficial Interest in Assets Held by Others
The Organization has established endowments at Community Foundation of Broward, Inc. and
Community Foundation of Tampa Bay, Inc. (the Community Foundations) and named itself as the
beneficiary. Under the terms of the endowment agreements, the Community Foundation of Broward, Inc.
has variance power over the funds and the Community Foundation of Tampa Bay, Inc. does not have
variance power over the funds. During 2016, the Organization was notified of its interest as the sole
beneficiary of the Charles A. Zerbst Charitable Trust (Zerbst Trust), a perpetual trust established for LSF's
benefit and administrated by an independent trustee. Investment income (losses), net of distributions and
fees on beneficial interest in assets held by others are recorded as change in value of beneficial interest
in assets held by others in the accompanying consolidated statements of activities.
The fair value of the Organization's beneficial interest in assets held by others is as follows:
Beneficial interest in assets held by others:
Community Foundation of Broward, Inc.
Community Foundation of Tampa Bay, Inc.
Beneficial interest in perpetual trust:
Charles A. Zerbst Trust
2021 2020
$ 170,739 $ 133,888
7,638 6,128
178,377 140,016
818,071 688,275
$ 996,448 $ 828,291
Note 6. Gifted Facilities
Gifted facilities represents the present value of the excess of the aggregate fair rental value of building
[eases over below market rent payments due under lease agreements executed in connection with the
Organization's Head Start programs operated in Pinellas, Duval and Palm Beach counties. Gifted
facilities are recorded as contributions with donor restrictions and are released from restrictions as rent
expense is recorded. Activity of the gifted facilities during the years ended June 30, 2021 and 2020, is
summarized as follows:
Balance at June 30, 2019
Contributions
Rent expense
Balance at June 30, 2020
Contributions
Rent expense
Balance at June 30, 2021
Less current portion of gifted
facilities
Gifted facilities, less current
portion
Pinellas Duval
Properties Properties
Palm Beach
Properties
Total
$ 1,131,768 $ 211,301
640,517 741,651
(451,458) (147,057)
1,320,827 805,895
24,915 344,895
(484,606) (320,693)
861,136 830,097
(469, 046)
$ 5,557,185
(1,175,809)
4,381, 376
84,701
(1,286,760)
3,179,317
$ 6,900,254
1,382,168
(1,774,324)
6,508,098
454,511
(2,092,059)
4,870,550
(331,777) (1,144,605) (1,945,428)
$ 392,090 $ 498,320 $ 2,034,712 $ 2,925,122
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Notes to Consolidated Financial Statements
Note 7. Accounts Payable
Accounts payable consists of the following at June 30, 2021 and 2020:
Managing entity contract
Trade
2021 2020
$ 15,017,685 $ 22,172,160
3,646,946 1,982,272
$ 18,664,631 $ 24,154,432
Note B. Line of Credit
The Organization maintains a revolving line of credit with the Lutheran Church Extension Fund -Missouri
Synod, an unaffiliated nonprofit organization, with a maximum availability of $7,250,000. Interest is
payable monthly at the lenders cost of funds, which is the weighted average annual rate of interest plus
3% (4.375% at June 30, 2021). The line of credit is secured by the Organization's accounts receivable
balance and requires the Organization to meet certain covenants. At June 30, 2021, the Organization was
in compliance with these restrictive covenants. There was no outstanding balance on the line of credit at
June 30, 2021 and 2020. The line of credit matures on March 4, 2022.
Note 9. Note Payable
In September 2019, the Organization entered into a 10-year promissory note with Lutheran Church
Extension Fund -Missouri Synod in the amount of $2,750,000, with a maturity date of September 20,
2029. The proceeds from the promissory note were used to pay off the remaining balance on the line of
credit. The promissory note is secured by the Organization's accounts receivable balance and requires
the Organization to meet certain covenants. The promissory note calls for monthly principal and interest
payments of $28,902, with a fixed interest rate of 4.75% through September 30, 2024. Beginning on
October 1, 2024, the interest rate will be adjusted based on the lenders cost of funds plus 3% through
maturity. The monthly principal and interest payment will be adjusted accordingly. The outstanding
balance on the note payable at June 30, 2021 and 2020, was $2,363,458 and $2,590,959, respectively.
Maturities of the note payable at June 30, 2021, are as follows:
Years ending June 30:
2022 $ 239,739
2023 251,377
2024 263,581
2025 276,378
2026 289,795
2027 1,042,588
Less current portion
17
2,363,458
(239,739)
$ 2,123,719
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Notes to Consolidated Financial Statements
Note 10. Leases
Capital leases: The Organization is obligated under capital lease agreements for certain facilities which
expire at various dates through 2027. Upon expiration of these leases, title to the properties will
automatically transfer to LSF. At June 30, 2021, the gross amount of facilities and related accumulated
amortization recorded under capital leases was $4,005,115 and $2,535,959, respectively. At June 30,
2020, the gross amount of facilities and related accumulated amortization recorded under capital leases
was $4,005,115 and $2,144,983, respectively. Amortization of assets held under capital leases is
included in depreciation and amortization expense. Future minimum payments under capital lease
obligations at June 30, 2021, are as follows:
Years ending June 30:
2022 $ 504,862
2023 441,982
2024 173,400
2025 173,400
2026 173,400
Thereafter 260,100
Total minimum capital lease payments 1,727,144
Less amount representing interest (257,989)
Present value of capital lease payments 1,469,155
Less current portion of capital lease obligations (417,619)
Capital lease obligations, less current portion $ 1,051,536
Operating leases: The Organization leases the majority of its office space and office equipment under
operating lease agreements which expire at various dates through 2027. Security deposits related to such
leases are included in other assets in the accompanying consolidated statements of financial position.
Rental expense on operating leases was approximately $2,940,000 in fiscal 2021 and $2,533,000 in fiscal
2020, The majority of the Organization's operating leases include 30-day cancellation provisions in the
event the Organization loses its funding.
Future minimum lease payments under non -cancellable operating leases (with initial or remaining terms
in excess of one year) as of June 30, 2021, are as follows:
Years ending June 30:
2022 $ 2,492,843
2023 2,166,229
2024 1,451,021
2025 904,933
2026 784,553
2027 112,055
$ 7,911,634
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Notes to Consolidated Financial Statements
Note 11. Net Assets
Net assets without donor restrictions are available for the following purposes as of June 30, 2021 and
2020:
Undesignated
Board designated for specified purposes
2021 2020
$ 2,212,736 $ 1,084,419
1,246,560 1,000,392
$ 3,459,296 $ 2,084,811
The Board of Directors of LSF established a board designated endowment to be used to support
operations which was $1,246,560 and $1,000,392 as of June 30, 2021 and 2020, respectively (see
Note 12).
Net assets with donor restrictions are restricted for the following purposes as of June 30, 2021 and 2020:
2021 2020
Restricted for specified purposes:
Facilities and equipment subject to time restrictions $ 2,074,908 $ 1,290,824
Gifted facilities 4,870,550 6,508,098
Employee tuition reimbursement 22,668 28,893
Other 334,437 177,326
7,302,563 8,005,141
Restricted in perpetuity — endowment:
Broward County program endowment 170,739 138,526
Tampa Bay program endowment 7,638 10,000
178,377 148,526
Restricted in perpetuity — beneficial interest:
Zerbst Trust
818,071 627,444
$ 8,299,011 $ 8,781,111
Net assets with donor restrictions that were released from donor restrictions by incurring expenses
satisfying the restricted purposes or by the occurrence of other events specified by donors are as follows:
2021 2020
Facilities and equipment subject to time restrictions $ 266,879 $ 1,225,573
Rent expense from gifted facilities 2,092,058 1,945,767
Employee tuition reimbursement 6,225 10,106
Other 178,320 56,210
$ 2,543,482 $ 3,237,656
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Notes to Consolidated Financial Statements
Note 12. Endowment Funds
LSF has a board -designated endowment fund included in net assets without donor restrictions which was
established by the Board of Directors for the purpose of supporting the Organization's programs. LSF
also has two donor restricted endowment funds which are included in net assets with donor restrictions
and consist of funds established with the Community Foundation of Broward, Inc. and the Community
Foundation of Tampa Bay, Inc. The earnings on the donor restricted endowment funds are to be used to
support program operations and are recorded as net assets with donor restrictions until appropriated to
LSF.
Interpretation of relevant law: The Board of Directors has interpreted the wishes of donors and state
law as requiring the preservation of the fair value of the original gift as of the gift date of the donor -
restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this
interpretation, the Organization classifies as net assets with donor restrictions: (a) the original value of
gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the endowment,
and (c) accumulations to the endowment made in accordance with the direction of the applicable donor
gift instrument at the time the accumulation is added to the fund.
Investment return objectives, risk parameters and strategies: The Organization has adopted
investment and spending policies, approved by the Board of Directors, for endowment assets that attempt
to provide a predictable stream of funding to programs supported by its endowment funds while also
preserving the purchasing power of those endowments over the long-term. The policies stipulate that the
endowments should be managed as a long-term goal designed to maximize the returns without exposure
to undue risk, as defined herein. Whereas it is understood that fluctuating rates of return are characteristic
of the securities markets, the greatest concern should be long-term appreciation of the assets and
consistency of total portfolio returns. Recognizing that short-term market fluctuations may cause
variations in the account performance, the Organization will pursue a strategy seeking to exceed a
benchmark return of a target portfolio consisting of approximately 35% fixed income securities, 55%
equity securities and 10% real assets for the general endowment fund. Earnings only on the endowment
funds held the Community Foundations are used to support programs in those counties.
Spending policy: The Organization has a policy limiting the spending of its permanent endowment funds
to interest income that may be withdrawn for use in the county where the endowments are based.
Endowment net asset composition by type of fund are as follows at June 30, 2021 and 2020:
Board -designated endowment
Broward County program endowment
Tampa Bay program endowment
2021
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
$ 1,246,560 $
$ 1,246,560
170,739 170,739
7,638 7,638
$ 1,246,560 $ 178,377 $ 1,424,937
20
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds (Continued)
2020
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
Board -designated endowment $ 1,000,392 $ - $ 1,000,392
Broward County program endowment 138,526 138,526
Tampa Bay program endowment - 10,000 10,000
$ 1,000,392 $ 148,526 $ 1,148,918
Changes in endowment net assets for the years ended June 30, 2021 and 2020, are as follows:
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
Balances at June 30, 2019 $ 955,432 $ 148,526 $ 1,103,958
Board designations 7,288 - 7,288
Investment return, net 37,672 - 37,672
Balances at June 30, 2020 1,000,392 148,526 1,148,918
Board designations 7,670 - 7,670
Investment return, net 238,498 37,078 275,576
Appropriations - (7,227) (7,227)
Balances at June 30, 2021 $ 1,246,560 $ 178,377 $ 1,424,937
Note 13. Retirement Plans
The Organization sponsors a 403(b) multiple employer retirement plan (the 403(b) Plan) administered by
One America. Under the 403(b) Plan, employees are eligible to participate once they attain the age of 21.
The Organization may elect to make matching and non -elective contributions to the 403(b) Plan.
Participants' rights to employer contributions vest after three years of service.
The Organization also sponsors a 457(b) multiple employer plan (the 457(b) Plan) administered by One
America. Under the 457(b) Plan, eligible employees may participate upon their date of hire. The
Organization may elect to contribute matching and non -elective contributions to the 457(b) Plan.
Participants' rights to employer contributions vest after one year of service.
Employer contributions to the 403(b) and 457(b) plans for the years ended June 30, 2021 and 2020, were
approximately $1,065,000 and $705,000, respectively.
21
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 13. Retirement Plans (Continued)
The Organization also sponsors a 457(f) employee benefit plan or SERP, which provides a key executive
(the Participant) deferred compensation benefits outside of the two plans described above. Benefits under
the SERP accumulate from annual contributions and earnings thereon. Prior to June 30, 2020, the SERP
was terminated for all key executives other than the Chief Executive Officer. The remaining plan
participant's rights to employer contributions vest on February 7, 2023. For the years ended June 30,
2021 and 2020, the Organization incurred expenses under the SERP of approximately $95,000 and
$210,000, respectively. At June 30, 2021 and 2020, the Organization has $280,812 and $185,994,
respectively, of assets limited as to use for payment of its obligation under the SERP which is included in
accrued salaries and payroll related expenses in the accompanying consolidated statements of financial
position.
Note 14. Contingencies
The Organization routinely enters into grant agreements and contracts with governmental agencies that
provide for reimbursement of the eligible direct and indirect costs of providing certain of the
Organization's program services. The grants and contracts are subject to audit or review and retroactive
adjustment based on a final determination by the grantor of eligible reimbursable expenditures. The effect
of such adjustments, if any, cannot be determined at this time and no provision has been made for any
such adjustments in the accompanying consolidated financial statements.
The Organization is involved in legal actions arising during the ordinary course of its operations. The
potential loss under these claims is not determinable at this time. Management believes any potential loss
would be expected to fall within the Organization's insurance policy limits. The only anticipated financial
exposure would be payment of the insurance deductible, a nominal amount. In the opinion of
management, no material liability exists with respect to these claims.
The Organization sponsors a welfare benefit plan (the Plan) which provides medical and prescription drug
benefits to its employees. Under the terms of the Plan, the Organization is responsible and self -insured
for the first $175,000 of individual covered claims and is subject to a maximum annual aggregate stop
loss limit which was $9,000,883 for the year ended June 30, 2021. Health insurance expense is based
upon premiums paid to the insurer, estimated total cost of claims to be paid by the Organization that fall
within the deductible limits described above, and the administrative costs of the Plan. The Organization
outsources administration of claims to a third -party administrator (TPA). Under the terms of the TPA
agreement, the TPA provides management with an estimate of incurred but unreported claims (IBNR)
and the future development of covered claims using an actuarially -determined reserve methodology
based on current and historical claims development trends, which are recorded in payroll taxes and
employee benefits in the accompanying consolidated statements of functional expenses. As of June 30,
2021 and 2020, accrued estimated health insurance expense under the Plan was approximately
$1,678,000 and $1,307,000, respectively, and is included in accrued salaries and payroll related
expenses in the accompanying consolidated statements of financial position. Estimated health insurance
expense was approximately $6,353,000 and $5,901,000, respectively, for the years then ended, which is
included in payroll taxes and employee benefits in both program services and supporting services in the
accompanying consolidated statements of activities. Actual claims expense may differ from these
estimates. At June 30, 2021 and 2020, the Organization had approximately $1,799,000 and $1,322,000,
respectively, of funds included in cash and cash equivalents to pay outstanding claims.
22
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 14. Contingencies (Continued)
On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID-19) a
"Public Health Emergency of International Concern" and on March 11, 2020, declared COVID-19 a
pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include
restrictions on travel, quarantine in certain areas, forced closures and other restrictions limiting public
access for certain types of businesses.
The extent to which COVID-19 impacts the operations of the Organization in the future will depend on
future developments, which are highly uncertain and cannot be predicted with confidence. It is reasonably
possible that estimates made in the accompanying consolidated financial statements may be adversely
impacted in the near term as a result of these conditions. Management believes that cash available,
together with its available net assets, will be sufficient to fund its working capital requirements through
fiscal year 2022 and a reasonable time thereafter.
Note 15. In -Kind Contributions
In -kind contributions included in the consolidated statements of activities and functional expenses and the
corresponding expenses are as follows:
Professional services
Food, clothing and household items
2021 2020
$ 444,895 $ 376,051
2,760,743 3,455,964
$ 3,205,638 $ 3,832,015
Donated services for the years ended June 30, 2021 and 2020, with estimated fair values of
approximately $2,031,000 and $1,506,000, respectively, were not recognized in the accompanying
consolidated financial statements because they did not meet the criteria for recognition because they did
not require specialized skills and would ordinarily not be purchased if not provided by donation.
Note 16. Matching Requirements
The Organization received a substantial portion of its support from various funding sources which
required local matches. Management believes these requirements were met through program service
fees, local grants and public donations during the years ended June 30, 2021 and 2020.
23
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 17. Liquidity and Availability of Resources
As of June 30, 2021 and 2020, the following reflects the Organization's financial assets, reduced by
amounts not available for general use because of contractual or donor -imposed restrictions and board
designations, within one year of June 30, 2021 and 2020:
Financial assets, at year-end
Cash and cash equivalents
Accounts receivable, net
Investments
Gifted facilities
Less those unavailable for general expenditures within
one year, due to:
Contractual or donor -imposed restrictions:
Restricted by donors with purpose and/or time restrictions
Restricted by donors with use restrictions
Board designations:
Board designated for specified purposes
Financial assets available to meet cash needs for
general expenditures within one year
2021 2020
$ 20,180,768
22, 671, 764
1,246,560
4,870,550
(2,432,013)
(4,870,550)
(1,246,560)
$ 13,643,525
21,499,115
1,000,392
6,508,098
(1,497,043)
(6,508,098)
(1,000,392)
$ 40,420,519 $ 33,645,597
Over 95% of the Organization's annual revenue is comprised of cost reimbursement or pass through
contracts. Therefore, there is little ability to generate surplus revenue and maintain large cash balances.
As such, the Organization relies on contract advances and prompt funder reimbursements to maintain
liquidity. The Organization also maintains a $7,250,000 line of credit available to meet cash flow needs if
necessary.
Note 18. Guardianship Program
In connection with the Organization's guardianship program, the Organization manages funds for
individuals who have been declared incapacitated. The Organization is a court -appointed legal guardian
for these individuals. Assets managed by the Organization include real property valued in the table below
at their fair value on the date the Organization was appointed guardian. Cash and cash equivalents, and
investments are included in the table below at current fair value. income earned on assets managed is
applied to each individual's account balance. Assets managed by the Organization are not included in the
accompanying consolidated financial statements. The value of assets managed are as follows:
Cash and cash equivalents
Investments in fixed income and equity securities
Real property
Cash surrender value of life insurance and other annuities
Other
2021 2020
$ 5,762,900
6,854,870
2,992,999
4,366,438
170,266
$ 5,066,851
6,329,333
3,389,424
4,558,296
710,657
$ 20,147,473 $ 20,054,561
For the years ended June 30, 2021 and 2020, program service fees earned under the guardianship
program were approximately $701,000 and $742,000, respectively, and are included in program service
fees in the accompanying consolidated statements of activities.
24
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 19. Contract with Duval County Staff
The Organization's Head Start program in Duval County includes certain personnel that are employed by
the Organization under a collective bargaining agreement. The collective bargaining agreement is
effective through January 31, 2022.
Note 20. Conditional Promises to Give
The Organization has conditional promises to give from grantors of approximately $60,850,000 and
$25,580,000 as of June 30, 2021 and 2020, respectively. Future payments are contingent upon the
Organization carrying out certain activities (meeting grant -imposed barriers) stipulated by the grant or
contract.
Note 21. Paycheck Protection Program
On August 5, 2020, the Organization received a loan in the amount of $10,000,000 under the Paycheck
Protection Program (PPP). The PPP, established as part of the Coronavirus Aid, Relief and Economic
Securities Act (CARES Act), provides for loans to qualifying businesses for amounts up to 2.5 times of the
average monthly payroll expenses of the qualifying business. Under the terms of the PPP, PPP loans and
accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes,
including payroll, benefits and other qualifying expenses.
As of June 30, 2021, the Organization used $5,661,348 of the loan proceeds to fund its payroll expenses.
The Organization submitted an application to the Small Business Administration (SBA) on July 23, 2021,
requesting that these PPP funds received be forgiven. On July 30, 2021, the Organization received
notification that the $5,661,348 was forgiven. The Organization elected to account for the PPP loan as a
conditional contribution under ASC Subtopic 958-605. Management believes the revenue recognition
criteria under ASC Subtopic 958-605 have been met for $5,661,348 of the $10,000,000 PPP loan. As
such, this amount has been recognized in government grants and contracts in the accompanying
consolidated statements of activities as of June 30, 2021. The remaining principal balance of $4,338,652
is included in refundable advances in the accompanying consolidated statements of financial position as
of June 30, 2021. The remaining principal balance of $4,338,652 plus accrued interest was repaid by the
Organization on August 3, 2021.
25
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Government Grants and Contracts
Year Ended June 30, 2021
Direct federal funding:
U.S. Department of Health and Human Services $ 58,089,733
Pass -through awards of federal and state funding:
State of Florida Department of Children and Families 150,009,460
State of Florida Department of Health 6,651,944
Children's Network of Southwest Florida, LLC 5,669,115
Eckerd Connects, Community Alternatives 6,099,826
Florida Network of Youth and Family Services, Inc. 4,639,021
ChildNet, Inc. 3,106,557
Safe Children Coalition, Inc. 2,203,395
Lutheran Immigration and Refugee Services 953,076
Voluntary Pre -Kindergarten 1,207,874
South Florida Workforce Investment Board 1,435,949
Hillsborough County, State of Florida 1,661,844
State of Florida Department of Elder Affairs 809,071
Lakeview Center, Inc. 33,440
State of Florida Office of Attorney General 272,368
U.S. Committee for Refugees and Immigrants 97,927
National Children's Alliance 51,560
University of South Florida 48,117
Hillsborough County Public Schools 36,875
Northeast Florida Healthy Start Coalition, Inc. 5,800
City of Jacksonville 1,406
University of Illinois 664
184,995,289
Local and other grants and contracts:
Children's Services Council of Palm Beach County 5,798,570
Small Business Administration 5,661,348
Children's Board of Hillsborough County 1,602,954
Florida Blue Foundation 700,784
Lee County, State of Florida 311,349
Partnership for Strong Families 117,740
Florida Network of Youth and Family Services, Inc. (DV Respite) 125,935
Hernando County BOCC 66,450
Marion County 60,000
Santa Rosa County, State of Florida 50,619
Eckerd Staff Retention Funds 48,480
Sarasota County, State of Florida 29,468
Other 65,793
14,639,490
Total government grants and contracts $ 257,724,512
26
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues
Budget Period July 1, 2020 through June 30, 2021
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) En -kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Aftercare!
Follow -Up
Clay Behavioral — Community
Case Crisis Forensic Beds —
Assessment Management Prevention Adult Services
$ 338,784 $ 1,086,320 $ 4,047.785 $ 500,000 $
Crisis
Stabilization
Crisis Support)
Emergency Day Care Day Treatment
1,050,681 $ 16,114,683 $ 11,908,827 $ 153,148 $ 535,645
338,764
1,086,320 4,047,785
500,000
1,050,681 16,114,683
11,908,827
153,148
535,645
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$ 1,050,681 $ 16,114,683 $ 11,908,827 $ 153,148 $ 535,645
(Continued)
27
Lutheran Services Florida, Inc, and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AM HICM HIASAICSA
Florida
Assertive
Drop -In Community Indigent Psych
Part I: Actual Funding Sources and Revenues: Self -Help FR - CAT Treatment Incidental Medication Information In -Home!
Funding Sources and Revenues Centers Teams (FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
IA. State SAMH funding
Contract EH003 $ 738,056 $ 8,447,616 $ 7,235,607 $ 3,138,144 $ 348,999 $ 697,099 $ 134,297 $ 997,284 $ 166,699
Contract EH003 — carryover - - - - - - - -
Total state SAMH funding 738,055 8,447,615 7,235,607 3,138,144 348,999 697,099 134,297 997,284 166,699
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC, All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding $ 738,056 $ 8,447,616 $ 7,235,607 $ 3,138,144 $ 348,999 $ 697,099 $ 134,297 $ 997,284 $ 166,699
(Continued)
28
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Lutheran Services Florida, Inc, and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Part l: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICM HIASAICSA
PATH
Community
Mental Health Multi- Support
Intensive Case Medical Clubhouse Methadone Disciplinary Services
Inpatient Management Services Services Treatment Forensic Team Outreach Federal
Prevention
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
lB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local govemment only
Total other government funding
$ 691,956 $ 126,941 $ 4,679,771 $ 819,390 $ 6,045,231 $ 652,000 $ 1,963,725 $ 879,333 $ 5,731,366
691,958
126,941 4,679,771
819,390 6,045,231
652,000 1,963,725
879,333 5,731,366
IC. All other revenues
(1) First and second party payments -
(2) Third -party payments (except Medicare) -
(3) Medicare -
(4) Contributions and donations -
(5) Other -
(6) Refunds -
(7) In -kind -
Total all other revenues - - - -
Total funding $ 691,958 $ 126,941 $ 4,679,771 $ 819,390 $ 6,045,231 $ 652,000 $ 1,963,725 $ 879,333 $ 5,731,366
(Continued)
29
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Lutheran Services Florida, Inc, and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AM WCM WASAICSA
Respite
Services
Supported Supported
SA Detox Employment HousinglLiving TASC
Transitional
Beds
Residential
Intervention Outpatient Services
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Thrd-party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding
$ 330,357 $ 5,950,850 $ 397,535 $ 515,738 $ 328,396 $ 1,622,235 $ 1,586,879 $ 3,765,577 $ 14,908,283
330,357
5,950,850
397,535
515,738
328,396 1,622,235
1,586,879
3,765,577 14,908,283
$ 330,357 $ 5,950,850 $ 397,535 $ 515,738 $ 328,396 $ 1,622,235 $ 1,586,879 $ 3,765,577 $ 14,908,283
(Continued)
30
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THIS DOCUMENT IS A SUBSTITUTION
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Room and
Part I: Actual Funding Sources and Revenues: Board with Transition
Funding Sources and Revenues Supervision Vouchers
Bnet
Purchased
Residential Fixed Rate
Care Therapeutic First Episode Central Receiving Recovery Federal
Coordination Services Psychosis Facilities Support Project Grant
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -Kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare) - -
(3) Medicare - -
(4) Contributions and donations - -
(5) Other - -
(6) Refunds - -
(7) In -kind -
$ 3,727,159 $ 44,179 $ 876,281 $ 111,311 $ 189,723 $ 450,000 $ 7,182,471 $ 170,122 $ 3,479,713
3,727,159
44,179 878,281
111.311 189,723
450,000 7,182,47
170,122 3,479,713
Total all other revenues - -
Total funding 5 3,727,159 $ 44,179 $ 878,281 $ 111,311 $ 189,723 $ 450,000 $ 7,182,471 $ 170,122 $ 3,479,713
(Continued)
31
BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASA/CSA
Local
Network Provider Diversion Total for
Part I: Actual Funding Sources and Revenues: Other Bundled Cost Wraparound Evaluation & Provision Foresnic Sustainability AMHICNIHI
Funding Sources and Revenues Projects Reimbursement Projects Development Projects Project Payments ASAJCSA
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
$ 8,636.261 $ 138,742 $ 206,472 $ 334,210 $ 293,916 $ 12,333 $ 5,363,799 $ 139,853,911
8,636,261 138,742
206,472 334,210
293,916 12,333
5,363,799 139, 853,911
IB. Other government funding
{1) Other state agency funding - -
(2) Medicaid - - -
(3) Local government - - -
(4) Federal grants and contracts - - - -
{5) In -kind from local government only - -
Total other government funding - -
IC. All other revenues
(1) First and second party payments - - -
(2) Third -party payments {except Medicare) - -
(3) Medicare - -
(4) Contributions and donations - - - -
(5) Other - - -
(6) Refunds -
(7) In -kind - -
Total all other revenues - -
Total funding $ 8,636,261 $ 138,742 $ 206,472 $ 334,210 $ 263,916 $ 12,333 $ 5,363,799 $ 139,853,911
(Continued)
32
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THIS DOCUMENT IS A SUBSTITUTION
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Total for Non- Total for all
ME Total for State State -Funded State Designated
Part l: Actual Funding Sources and Revenues: Administrative SAMH-Funded SAMH Cost SAMH-Funded Non-SAMH Total
Funding Sources and Revenues Services Cost Centers Centers Cost Centers Cost Centers Funding
IA. State SAMH funding
Contract EH003 $ 4,642,698 $ 139,853,911 $ - $ 144,496,609 $ $ 144,496609
Contract EH003 — carryover - 1,038,258 - 1,038,258 1,038.258
Total state SAMH funding 4.642,698 140,892,169 145,534,867 145,534,867
113. Other government funding
(1) Other state agency funding - 7,313,139 7,313,139
(2) Medicaid - - -
(3) Local government - 14,639,490 14,639,490
(4) Federal grants and contracts - 90,237,016 90,237,016
(5) In -kind from local government only - -
Total other government funding - 112,189, 645 112,189,645
IC. All other revenues
(1) First and second party payments - 1,048,301 1,048,301
(2) Third -party payments (except Medicare) -
(3) Medicare - - -
(4) Contributions and donations - - 2,364,519 2,364,519
(5) Other - - 764,514 764,514
(6) Refunds - - - -
(7) In -kind - - 3,205,638 3,205,638
Total all other revenues - 7,382,972 7,382,972
Total funding $ 4,642.698 $ 140,892.169 $ - $ 145,534,867 $ 119,572,617 $ 265,107,484
(Continued)
33
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AM HICM HIASAICSA
Clay Community
Behavioral — Forensic
Part 11: Actual Expenses: Aftercare! Case Crisis Beds —Adult Crisis Crisis Support!
Funding Sources and Revenues Follow -Up Assessment Management Prevention Services Stabilization Emergency Day Care Day Treatment
(IA, Personnel expenses
(1) Salaries $ - $ - $ - $ $ - $ - $ $ - $ -
(2) Fringe benefits - - - -
Totai personnel expenses - - - - - - - -
IIB. Other expenses
(1) Building occupancy - - - - - -
(2) Professional services - - - - - -
(3) Travel - - - - - -
(4) Equipment - - - - - -
(5) Food services - - - - - - -
(6) Medical and pharmacy - - - - - - -
(7) Subcontracted services 338,764 1,086,320 4,047.785 500,000 1,050,681 16,114,683 11,908,827 153,148 535,645
(8) lnsurance - - - - - -
(9) Interest paid - - - - - -
(10) Operating supplies and expenses - - - -
(11) Other - - - - -
(12)Donated items - - - - -
Total other expenses 338,764 1,086,320 4,047.785 500,000 1,050,681 16,114,683 11,908,827 153,148 535,345
Total personnel and other expenses 338,764
1,086,320 4,047,785
IIC. Distributed indirect costs
(a) Other support costs (optional) - -
(b) Administration - -
Total distributed indirect costs
500,000 1,050,681
16,114,683 11,908,827
153,148 535,645
Total actual operating expenses 338,764 1,086,320 4,047,785 500,000 1,050,681 16,114,683 11,908,827 153,148 535,645
IID. Unallowable costs - - - -
Total allowable operating expenses $ 338,764 $ 1,086,320 $ 4,047,785 $ 500,000 $ 1,050,681 $ 16,114,683 $ 11,908,827 $ 153,148 $ 535,645
11E_ Capital expenditures $ $ - $ - $ $ - $ - $ - $ - $ -
(Continued)
34
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
State Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASA!CSA
Florida
Assertive
Drop -In Community Indigent Psych
Part II: Actual Expenses: Self -Help FR — CAT Treatment Incidental Medication Information In -Homo!
Funding Sources and Revenues Centers Teams (FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
ILA. Personnel Expenses
(1) Salaries $ $ - $ S $ - $ - $ - $ - $
(2) Fringe benefits - - - -
TotalpersanneL expenses - - - -
IIB- Other expenses
(1) Building occupancy - - - -
(2) Professional services - - - -
(3) Travel - - - -
(4) Equipment - - - -
(5) Food services - - - -
(6) Medical and pharmacy - - - - - -
(7) Subcontracted services 738,956 8,447,616 7,235,607 3,138,144 348,999 697,099 134,297 997,284 166,699
(8) Insurance - - - - -
(9) Interest paid - - - - -
(10) Operating supplies and expenses - - - -
(11)Other - - - - - -
(12) Donated items - - - - -
Total other expenses 739,056 8,447,616 7,235,607 3,138,144 348,999 697,999 134,297 997284 166,699
Total personnel and other expenses
I1C. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
738,056 8,447,616 7,236,607 3,138,144 348,999 697,099 134,297 997,284 166,699
Total actual operating expenses 738,056 8,447,616 7,235,607 3.138,144 348,999 697,099 134,297 997,284 166,699
IID. Unallowable costs
Total allowable operating expenses $ 738,056 $ 8,447,616 $ 7,235,697 S 3,138,144 $ 348,999 $ 697,699 $ 134,297 $ 997,284 $ 166,699
IIE. Capital expenditures $ - $ - $ - $ - $ $ $ - $ - $
(Continued)
35
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Part II: Actual Expenses:
Funding Sources and Revenues
ILA. Personnel expenses
(1) Salaries
(2) Fringe benefits
Total personnel expenses
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHlASAfCSA
Inpatient
S
PATH
Community
Mental Health Multi- Support
Intensive Case Medical Clubhouse Methadone Disciplinary Services
Management Services Services Treatment Forensic Team Outreach Federal
$
$
Prevention
118. Other expenses
(1) Building occupancy - - - -
(2) Professional services - - - -
(3) Travel
(4) Equipment
(5) Food services - - - -
(6) Medical and pharmacy - - - - -
(7) Subcontracted seances 691,958 126,941 4,679,771 819,390 6,045,231 652,009 1,963,725 879,333 5,731,366
(S) Insurance - - - - -
(9) interest paid - - -
(10) Operating supplies and expenses
(11)Other - - -
(12) Donated items - - -
Total other expenses 691,958 126,941 4,679,771 619,390 8,045,231 652,000 1,963,725 879,333 5,731,386
Total personnel and other expenses 691,958
IIC. Distributed indirect costs
(a) Other support costs (optionat)
(b) Administration
Total distributed indirect costs
126,941 4,679,771 819,390 6,045,231 652,000 1,963,725 879,333 5,731,386
Total actual operating expenses 691,958 126,941 4,679,771 819,390 5,045,231 652,000 1,963,725 379,333 5,731,366
IID. Unallowable costs
Total allowable operating expenses $ 691,958 $ 126,941 S 4,679,771 $ 819,390 $ 6,045,231 $ 652,900 $ 1,963,725 $ 379,333 $ 5,731,366
IIE. Capital expenditures $ - $ $ - $ - $ $ - $ $ - $
(Continued)
36
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH!CMH1ASAICSA
Part II: Actual Expenses: Respite Supported Supported Transitional Residential
Funding Sources and Revenues Services SA Detox Employment Housing/Living TASC Beds Intervention Outpatient Services
IIA. Personnel expenses
(1) Salaries $ - $ - $ $ $ $ - $ - $ - $
(2) Fringe benefits - - - - -
Total personnel expenses - - - -
IIB. Other expenses
(1) Building occupancy - - - -
(2) Professional services - - - - -
(3) Travel - - - - - -
(4) Equipment - - - - - -
(5) Food services - - - - - -
(6) Medical and pharmacy - - - - - -
(7) Subcontracted services 330,357 5,950,850 397,535 515,738 328,396 1,622,235 1,586,879 3,765,577 14,908,283
(8) Insurance - - - - - -
(9) Interest paid - - - - - -
(10) Operating supplies and expenses - - - - - -
(11) Other - - - - - - -
(12) Donated items - - - - - -
Total other expenses 330,357 5,950,850 397,535 515,738 328,396 1,622,235 1,566,879 3,765,577 14,908,283
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
330,357 5,950,850 397,535 515,738 328,396 1,622,235 1,586,879 3,765,577 14,998,283
Total distributed indirect costs - -
Total actual operating expenses 338,357 5,950,850 397,535 515,738 328,396 1,622,235 1,586,879 3,765,577 14,908,283
IID. Unallowable costs - - - - - -
Total allowable operating expenses $ 330,357 $ 5,956,850 $ 397,535 $ 515,738 $ 328,396 $ 1,622,235 $ 1,586,879 $ 3,765,677 $ 14,908,283
11E. Capital expenditures $ - $ - $ - $ $ - $ - $ - $ - $ -
(Continued)
37
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Part II: Actual Expenses:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH)CMH!ASAICSA
Room and
Board with Transition
Supervision Vouchers
Bnet
Purchased
Residential Fixed Rate
Care Therapeutic First Episode Central Receiving Recovery Federal
Coordination Services Psychosis Facilities Support Project Grant
IIA. Personnel expenses
(1) Salaries
(2) Fringe benefits
Total personnel expenses
$
IIB. Other expenses
(1) Building occupancy - - (2) Professional services - - -
(3) Travel
(4) Equipment - - - -
(5) Food services - - - - - -
•($) Medical and pharmacy - - - -
(7) Subcontracted services 3,727,159 44,179 878,281 111,311 159,723 450,000 7,162,471 170,122 3,479,713
(8) Insurance - - - -
(9) Interest paid - - -
(10) Operating supplies and expenses - -
(11) Other - -
(12) Donated items - - -
Total other expenses 3,727,159 44,179 878,281 111,311 189,723 450,000 7,182,471 170,122 3,479,713
Total personnel and other expenses 3,727,159 44,179 878,281 111,311 189,723 450,000 7,182,471 170,122 3,479,713
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
Total actual operating expenses 3,727,159 44,179 578,251 111,311 189,723 450,000 7,182,471 170,122 3,479,713
11D. Unallowable costs - - -
Total allowable operating expenses $ 3,727,159 $ 44179 $ 875,281 $ 111,311 $ 189,723 $ 450,000 $ 7,182,471 $ 170,122 $ 3,479,713
IIE. Capital expenditures $ - $ - $ - $ 5 -
(Continued)
38
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Part II: Actual Expenses:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH!CMHJASAICSA
Local
Other Network Provider Diversion Total for
Bundled Cost Wraparound Evaluation and Provision Foresnic Sustamability AMH!CMH
Projects Reimbursement Projects Development Projects Project Payments ASAJCSA
IIA. Personnel expenses
(1) Salaries $ - $ - $ $ $ - $ - $ - $
(2) Fringe benefits - -
Total personnel expenses
112. Other expenses
(1) Building occupancy - - -
(2) Professional services - - - -
(3) Travel - - - - -
(4) Equipment - - (5) Food services - -
(6) Medical and pharmacy - - -
(7) Subcontracted services 8,636,261 138,742 203,472 334,210 293,916 12,333 5,363,799 139,853,911
(8) Insurance - - -
(9) Interest paid - -
(10) Operating supplies and expenses -
('l1) Other - - - -
(12) Donated items - - -
Total other expenses 8,636,261 138,742 206,472 334,210 293,916 12,333 5,363,799 139,853,911
Total personnel and other expenses
8,636,261 138,742 206,472 334,210 293,916 12,333 5,363,799 139,853,911
IIC. Distributed indirect costs
(a) Other support costs (optional) - - -
(b) Administration - -
Total distributed indirect costs - -
Total actual operating expenses 8,636,261 138,742 206,472 334,210 293,916 12,333 5,363,799 139,853911
IID. Unallowable costs - - -
Total allowable operating expenses $ 8,636,261 $ 138,742 $ 205,472 $ 334,210 $ 293,916 $ 12,333 $ 5,363,799 $ 139,853,911
IIE. Capital expenditures $ - $ - $ $ - $ - $ - $ - $
(Continued)
39
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Lutheran Services Florida, inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2020 through June 30, 2021
Total for Non- Total forall
ME Total for State State -Funded State Designated
Part II: Actual Expenses: Administrative SAMH-Funded SAWN Cost SAMH-Funded Nan.SAMH Total
Funding Sources and Revenues Services Carryforward Cost Centers Centers Cost Centers Cost Centers Administration Advancement Expenses
IIA. Personnel expenses
(1) Salanes 5 2,887,386 $ $ - 2,887,386 5 $ 2,887,386 $ 46,898,973 $ 4526977 $ 267,179 $ 54,580515
(2) Fringe benefits 561,817 561,817 - 561,817 11,824,692 1,009,981 51,283 13,447,773
Total personnel expenses 3 449,203 3,449,203 3,449,203 58,723,6E5 5,536,958 318,462 68,028,288
IIB. other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
{4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Su8conlracted services
(8) Insurance
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses
204,255
101,780
26,572
203,728
23,054
92,181
78,426
729,976
1,034,557
1,634,557
204,255 - 204,255 6,053,153 571,183 15,351 6,843,942
101,780 101,730 2,455,661 593,113 23,851 3,174,405
26,572 26,572 1,610,358 84,399 10,961 1,732,290
203,726 203,728 3,412,825 303,723 26,348 3,946,624
- - 1,596,533 - 1,596,533
140,888,468 /40,888,468 21,567,120 - 162,455,588
23,054 - 23,054 1,004,403 92,164 1,307 1,120,928
- - 103,227 170,546 - 273,773
92,161 92,161 10,847,294 166,416 14,545 11,120,413
78,426 78,426 219,973 414,633 3,642 716,674
- - 3,205,638 - - 3,205,638
141,618,444 141,618,444 52,076,185 2,396,177 96,005 196,186,811
Total personnel and other expenses 4,179,179
1,034,557 145,067,647
145, 067, 647 110, 799, 85 0
IIC. Distributed indirect costs
(a) Other support costs (optional) - - - -
(b) Administration 287,312 - 287,312 287,312
Total distributed indirect costs 287,312 - 287,312 287,312
7,617,329
7,817,329
7,933,135 414,467 264,215,099
(7,933,135) 28,494
(7,933,135) 28,494
Total actual operating expenses 4.466,491 1,034,557 145,354,959 145,354,959 118,417,179 442,961 264,215,099
IID. Unallowable costs - - - 33,890 862 45 34,797
Total allowable operating expenses $ 4,466,491 S 1,034,557 $ 145,354,959 $ 5 145 354,959 $ 118,383,289 $ (862) $ 442,916 $ 264,180,302
11E. Capital expenditures $ 13,893 5 - $ 13,893 $ - $ 13,893 $ 1,067,252 $ $ - $ 1,081,145
40
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THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost
Center Actual Expenses and Revenues (Continued)
Schedule of State Earnings
Year Ended June 30, 2021
*This schedule does not apply for the year ended June 30, 2021.
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of Bed -Day Availability Payments
Year Ended June 30, 2021
*This schedule does not apply for the year ended June 30, 2021.
THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of Related Party Transaction Adjustments
Year Ended June 30, 2021
*This schedule does not apply for the year ended June 30, 2021.
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TO ORIGINAL. BACKUP ORIGINAL CAN
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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
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
RSM
RSM US LLP
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the consolidated financial statements of Lutheran
Services Florida, Inc. and Subsidiary (the Organization), which comprise the consolidated statement of
financial position as of June 30, 2021, and the related consolidated statements of activities, functional
expenses and cash flows for the year then ended, and the related notes to the consolidated financial
statements (collectively, the financial statements), and have issued our report thereon dated February 10,
2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Organization's
internal control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal
control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Organization's financial statements will not be prevented, or detected and corrected,
on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Organization's financial statements are free
from 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 financial statements. However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Organization's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Organization's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
�$Af us I21..P
Orlando, Florida
February 10, 2022
45
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RSA
RSM US LLP
Report on Compliance for Each Major Federal Program and State Financial Assistance Project
and Report on Internal Control Over Compliance Required by the Uniform Guidance
and State of Florida Chapter 10.650, Rules of the Auditor General
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
Report on Compliance for Each Major Federal Program and State Financial Assistance Project
We have audited Lutheran Services Florida, Inc. and Subsidiary's (the Organization) compliance with the
types of compliance requirements described in the OMB Compliance Supplement and in the State of
Florida's Department of Financial Services' State Projects Compliance Supplement that could have a
direct and material effect on each of the Organization's major federal programs and state financial
assistance projects for the year ended June 30, 2021. The Organization's major federal programs and
state financial assistance projects are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal and state statutes, regulations, and the terms and
conditions of its federal awards and state financial assistance applicable to its federal programs and state
financial assistance projects.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the Organization's major federal
programs and state financial assistance projects based on our audit of the types of compliance
requirements referred to above. 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; the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and the
State of Florida Chapter 10.650, Rules of the Auditor General (Chapter 10.650). Those standards, the
Uniform Guidance and Chapter 10.650, 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 financial assistance
project occurred. An audit includes examining, on a test basis, evidence about the Organization's
compliance with those requirements and performing such other procedures as we considered necessary
in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program and state financial assistance project. However, our audit does not provide a legal
determination of the Organization's compliance.
Opinion on Each Major Federal Program and State Financial Assistance Project
In our opinion, the Organization complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs and state financial assistance projects for the year ended June 30, 2021.
THE POWER OF BEING UNDERSTOOD
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Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be
reported in accordance with the Uniform Guidance and which are described in the accompanying
schedule of findings and questioned costs as items 2021-001 and 2021-002. Our opinion on each major
federal program and state financial assistance project is not modified with respect to these matters.
The Organization's response to the noncompliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs. The Organization's response was not
subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the response.
Report on Internal Control Over Compliance
Management of the Organization is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the Organization's internal control over compliance with the types
of requirements that could have a direct and material effect on each major federal program and state
financial assistance project to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal program
and state financial assistance project and to test and report on internal control over compliance in
accordance with the Uniform Guidance and Chapter 10.650, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the Organization's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program or state financial assistance project on a timely basis. A material weakness in internal
control over compliance is a deficiency, or a 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 financial assistance project will not be prevented, or
detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program or state financial assistance project that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that have not been identified. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However, we
did identify certain deficiencies in internal control over compliance, described in the accompanying
schedule of findings and questioned costs as items 2021-001 and 2021-002 that we consider to be
significant deficiencies.
The Organization's response to the internal control over compliance findings identified in our audit is
described in the accompanying schedule of findings and questioned costs. The Organization's response
was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we
express no opinion on the response.
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance and Chapter 10.650. Accordingly, this report is not suitable for any other purpose.
.50ef vs ..4P
Orlando, Florida
February 10, 2022
47
THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
Federal Grantor/Pass-Through Grantor/Program Title
U.S. Department of Agriculture:
Passed -through from Florida Department of Health:
Child and Adult Care Food Program
Subtotal - U.S. Department of Agriculture
U.S. Department of Housing and Urban Development:
Passed -through from Ronda Department of Health:
Housing Opportunities for Persons with AIDS
Subtotal - U.S. Department of Housing and
Urban Development
U.S. Department of Justice;
Passed -through from Stale of Florida Office of Attorney General:
Crime Victim Assistance
Passed -through from the City of Jacksonville:
Criminal and Juvenile Justice and Mental Health Coilaboratlon
Subtotal - U.S. Department of Justice
U.S. Department of State:
Passed -through from Lutheran immigration and Refugee Services:
U.S. Refugee Admissions Program
COVID 19, U.S. Refugee Admissions Program
U.S, Refugee Admissions Program
CCVID 19: U.S. Refugee Admissions Program
Subtotal - U.S. Department of State
U.S. Department of Treasury:
Passed -through from Florida Department of Children and Families:
COVID 19; Coronavirus Relief Fund
Subtotal - U.S. Department of Treasury
U.S. Department of Health and Human Services:
Substance Abuse and Mental Health Services Projects of
Regional and National Significance
Mental and Behavioral Health Education
and Training Grants
Services le Victims of a Severe Form of Trafficking
Basic Center Grant
COVID 19: Basic Center Grant
Basic Center Grant
COVID-19: Emergency Grants to Address Mental and Substance
Use Disorders During COVIP-19
Unaccompanied Allen Children Program
Head Start Cluster: Head Start
Head Start Cluster: Head Start Disaster Recovery
Federal
ALN
Number
10.558 D-154
10,558 5-121
10,558 H-3109
10.558 H-3110
10,558 H-3654
10,558 H-3365
14,241 CODMB
16,575
16, 575
Contract/Grant
Number
VOCA-2019-LSF-00005
VOCA-2020-LSF-00524
16,745 2018-MO-BX-0048 1 SHP 139-1901
19,510 SPRMC019CA00301 323-19-LSF-03
19,510 SPRMCO19GA00301 323-18-LSF-03 - COVID
19,510 SPRMCO21CA30071 323-21-LSF-00
19,510 SPRMCO21CA30071 323-21-LSF-00 _ COVID
21,019 EH003
93,243 14795M081465
93,732
93,732
93,598
93,623
93,623
93.623
93,865
93,676
93,676
93,600
93,600
93,600
93,600
93,600
93,600
93,600
83.600
93.600
93.600
93.600
93,600
93.600
93.600
93.356
M01HP31270
T26HP39448
90ZV0132
90CY6957
90CY6957 - COVID
90CY6962
H79F11000416
90ZU0320-D1
90ZU0320-02
04H E000622-Di C5 - CRRSA
04HE000622-01 C6 -ARP
04CH011072-02
04CH011072-03
04GH010628-03
04CH010628-04
04CH011190-02
040H011190-03
04CH4702-06-06
04CH011690-01-04
04CH011690-02-01
04HP060259-01-00
04HP000259-02-03
04HP000259-03-02
04713090155
Passed -through from Hillsborough County, State of Florida:
Head Start Cluster: Head Start 93.600 04CH011252-01 119-1169
93.600 04017011252-02119-1169
(Continued)
48
Provided to
Subrscipiente
Total
Federal
Expenditures
$ 4,883,500
1,094,762
19,087
13,447
36,033
40,212
5,887,041
723.904
723,904
55,540
216,828
272,368
1,406
273,774
37,406
6,611
44,652
2,460
91,129
303,028
322,737
303,028
322,737
42,491
223,943
1,775,227
549,725
2,109,365
646,676
(35,870)
6,242,537
2,558,174
51,800
561,377
233,990
171,979
266,294
177,064
34,054
132,188
30,999
209,089
331,435
1,209,300
1,536,001
108,242
38,800
1,496,890
307,169
12,841,807
3,386,490
9,924,327
2,683,072
427,482
15, 703, 336
5,234,631
173,572
1,159,530
433,453
10,000
446,179
1,215,865
THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
Federal Grantor/Pass-Through Grantor/Program Title
Passed -through from State of Florida Department of
Children and Famiiies:
Refugee and Entrant Assistance — State Administered
Programs
Refugee and Entrant Assistance — Targeted Assistance
Grants
Comprehensive Community Mental Health Services for
Children with Serious Emotional Disturbances (SED)
Projects for Assistance in Transition from Homelessness
(PATH)
Substance Abuse and Mental Health Services Projects
of Regional and National Significance
Temporary Assistance for Needy Families
COVID 19, Emergency Grants to Address Mental and Substance
Use Disorders During COVID-19
Children's Health Insurance Program
Medicaid Cluster: Medical Assistance Program
State Targeted Response to the Opioid Crisis Grants
Block Grants for Community Mental Health Services
Block Grants for Prevention and Treatment of Substance
Abuse
Passed -through from Lutheran immigration and
Refugee Services:
Refugee and Entrant Assistance —Voluntary Agency
Programs
Refugee and Entrant Assistance Discretionary Grants
Unaccompanied Alien Children Program
Passed -through from University of South Florida:
Healthy Marriage Promotion and Responsible Fatherhood Grants
Federal
ALN
Number
93.566 LK191
93.586 LK20B
93.566 LK205
93.584 LK191
93.584 LK20B
93.584 LK205
93.104 EH003
93.150 PH003
93.243 EH003
93.558 EH003
93,665 E11003
93.767 EH003
93.778 EH003
93.788 EH003
93.956 EH003
93.959 EH003
93.567
93.567
93.576
93.676
93,675
93,673
93.676
Contract/Grant
Number
2002MD RV MG1342-20-LS F-00
2102MD RV MG1342-21-LS F-00
90RP0113-04-02
90Z U 0318-011358-20-LS F-00
90ZU0318-021358-21-LSF-00
90ZU0172-031358-19-LSF-03
90ZU0361-011357-21-00
Provided to
Subrecipients
Total
Federal
Expenditures
$ $ 751,247
262,434
670,429 2,586,276
80,364
28,074
54,314 209,524
327,250 340,340
879,333 879,333
46,713 46,713
2,150,158 2,191,147
1501000 150,000
878,281 878,281
1,350, 765 1,373,166
12,167,118 12, 636, 536
7,546,161 7,546,161
21,308,529 21,308,529
74,071
99,764
30,440
174,208
141,874
167,095
174,495
93,086 5112-5527-00-0 - 90ZB0024 48,117
(Continued)
49
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TO ORIGINAL. BACKUP ORIGINAL CAN
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
Federal Grantor/Pass-Through Grantor/Program Title
Passed -through from Eckert! Connects, Community Alternatives:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Stephanie Tubbs Jones Child Welfare Services Program
Foster Care — Title I V-E
Adoption Assistance
Social 5ervices Block Grant
Child Abuse and Neglect State Grants
Passed -through from Children's Network of Southwest Florida, LLC:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Grants to States for Access and Visitation Programs
Stephanie Tubbs Jones Child Welfare Services Program
Foster Care — Title I V-E
Adoption Assistance
Social Services Block Grant
Passed -Through from ChildNef, lnc:
Foster Care — Title lV-E
Passed -through from Safe Children Coalition, Inc.:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Grants to States for Access and Visitation Programs
Stephanie Tubbs Jones Child Welfare Services Programs
Foster Care —Title IV-E
Adoption Assistance
John H. Chafee Foster Care Program for Successful Transition to Adulthood
Passed -Through from South Florida Workforce Investment board:
Refugee and Entrant Assistance — State Administered
Programs
Refugee and Entrant Assistance —Targeted Assistance
Grants
Passed -through from Northeast Florida Healthy Start Coalition, Inc.:
Advancing System Improvements for Key Issues In Women's Health
Passed -through from The University of Illinois:
ACL National Institute on Disability, Independent Living,
and Rehabilitation Research
Passed -through from Lakeview Center, Inc.:
Foster Care — Title IV-E
Social Services Block Grant
Passed -through from U.S, Committee For Refugees and Immigrants:
Block Grants for Community Mental Health Services
Subtotal — U.S. Department of
Health and Human Services
U.S. Department of Homeland Security:
Passed -through from Hillsborough County Public Schools:
Citizenship Education and Training
Subtotal — U.S. Department of Homeland Security
Total expenditures of federal awards
Federal
ALN
Number
93.556
93.556
93.558
93.558
93.645
93.658
93.658
93.658
93.659
93.667
93.667
93.669
93.556
93.558
93.558
93.597
93.645
93.658
93.658
93.658
93.659
93.667
93.667
Contract/Grant
Number
ECA-CB-C MO-LSF-FY22
ECA-C6-D I V-CFP-FY21
ECA-C6-CMO-LSF-FY22
ECA-C6-D I V-CFP-FY21
ECA-C6-C MO-LSF-FY22
ECA-C6-C MO-LSF-FY22
ECA-C6-D I V-CFP-FY21
N/A
ECA-C6-C MO-LSF-FY22
ECA-C6-D I V-CFP-FY21
NIA
ECA-C6-D I V-CFP-FY21
ABK01
ABK01
FBR01
ABK01
ABK01
ABK01
FBR01
WBQ01
ABK01
WBQ01
NIA
93,658 LSF2CRGC
93.658 LSF20PIL
93,65B NIA
93.556 LSFCM20
93,55E LSFCM20
93,597 LSFCM20
93.645 LSFCM20
93.658 LSFCM20
93.659 LSFCM20
93.674 LSFCM20
93.566
93.566
RET-DP-PY18-08-01
RET-DP-PY19-09-00
93.584 RET-DP-PY18-08-01
93.584 RET-DP-PY19-09-00
93.088 NIA
93,433 9DRT5038
93.658 C-010-101
93.667 C-010-101
93,958 90ZV0123
97.010 20CICET00157
(Continued)
50
Provided to
Subreclplents
$ 17,874
98,554
77,511
157,388
6,052
134,522
238,287
8,013
50
295
Total
Federal
Expenditures
$ 151,900
292,861
658,722
467,691
51,432
1,143,226
706,089
15,565
68,099
149
13,501
876
4,606
413,163
95,619
23,109
32,241
892,913
144,767
19,243
66,377
38,824
601
11735,874
341,547
27,223
14,688
316,195
9,497
24,682
518,069
30,778
8,552
330,366
949,639
40,249
115,695
5,600
460
3,031
8,557
97,927
63,227,237
121,812,373
36,875
36,875
63,530,265 129,147,833
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
State Total
CSFA Contract/Grant Provided to State
State GrantorlPass-Through Grantor/Program Title Number Number Subrecipients Expenditures
State Courts System:
Passed -through from Gulf Coast Kid's House:
Florida Network of Children Advocacy Centers 22.016 NIA $ $ 51,560
Department of Children and Families:
Forensic Services and Competency Restoration Training 60,114 EH003 823,432 823,432
Substance Abuse and Mental Health — Community Services 60.153 EH003 121,545 121,545
Substance Abuse and Mental Health — Crisis Prevention
and Stabilization Services 60.155 EH003 855,511 855,511
Centralized Receiving Systems 60.163 EH003 7,490,052 7,490,052
SAMH ME Slate Funded Federal Excluded Services 60.190 EH003 1,224,453 1,224,453
Criminal Justice, Mental Health, and Substance
Abuse Reinvestment Grant Program 60.115 LHZ76 137,679 293,376
60,115 LH796 140,214 256,415
Passed -through from Lakeview Center, Inc.:
CBC - Purchase of Therapoudic Services for Children 60.183 C-010-201 10,190
Passed -Through from Eckord Connects, Community Alternatives;
Out -Of -Home Supports
Passed -through from Children's Network of
Southwest Florida, LLC,
CBC - Purchase of Therapeudic Services for Children
Subtotal — Department of Children and Families
60.074 N/A 1,222
60.183 WBS01 3,410
10,792, 886 11,079,606
Department of Education:
Passed -through from Early Learning Coalition of Pinefias
County, Inc.:
Voluntary Pre -Kindergarten Education Program 48.108 N/A 331,742
Passed -through from Early Learning Coalition of
Palm Beach County, loc.:
Voluntary Pre -Kindergarten Education Program 48.108 N/A 561,093
Passed -through from the Early Learning Coalition of
Duval, inc..
Voluntary Pre -Kindergarten Education Program 48.108 N/A 315,039
Subtotal — Department of Education - 1,207,874
Department of Health:
Medical Services for Abused and Neglected Children
Department of Elder Affairs:
Public Guardianship
Subtotal — Department of Elder Affairs
64,006 CP1PN 41,000
65.003 X9208,A3
65.003 X9238.A3
(Continued)
51
299,982
509,056
809,070
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
State Total
CSFA Contract/Grant Provided to State
State Grantor/Pass-Through Grantor/Program Title Number Number Subrecipients Expenditures
Department of Juvenile Justico:
Passed -through from Florida Network of Youth and
Family Services, Inc.:
Children and Families in Need of Services (CINSIFINS) 80,005 Southeast $ - $ 1,167,819
80.005 Southwest 1,730,986
80.005 Northwest 1,740,216
Subtotal— Department of Juvenile Justice
Total expenditures of state financial assistance
Total expenditures of federal awards and state financial assistance
See notes to schedule of expenditures of federal awards and state financial assistance.
52
4,639, 021
10,792,886 17,828,131
74,323,151 $ 146,975,964
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
Note 1. Basis of Presentation
The accompanying consolidated schedule of expenditures of federal awards and state financial
assistance (the Schedule) includes the federal award and state financial assistance project activity of
Lutheran Services Florida, Inc. and Subsidiary, under programs of the federal government and the State
of Florida for the year ended June 30, 2021. The information in this Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the
State of Florida Chapter 10.650, Rules of the Auditor General. Because the Schedule presents only a
selected portion of the operations of Lutheran Services Florida, Inc. and Subsidiary, it is not intended to
and does not present the financial position, changes in net assets or cash flows of Lutheran Services
Florida, Inc. and Subsidiary.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance and cost
principles established by the State of Florida Department of Financial Services, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
Lutheran Services Florida, Inc. and Subsidiary has elected not to use the 10% de minimis indirect cost
rate as allowed under the Uniform Guidance.
Note 4. Other
The accompanying Schedule presents federal expenditures and state financial assistance by pass -
through agency. Expenditures of certain federal programs and state financial assistance projects were
awarded to Lutheran Services Florida, Inc, and Subsidiary by more than one pass through agency or
under more than one contract. Total expenditures by federal award program and state financial
assistance project are summarized on pages 54-55.
53
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
Federal
ALN No. Federal Program or Cluster Expenditures
10.558 Child and Adult Care Food Program $ 5,887,041
14.241 Housing Opportunities for Persons with AIDS 723,904
16.575 Crime Victim Assistance 272,368
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program 1,406
19.510 U.S. Refugee Admissions Program 82,058
19.510 COVID-19: U.S. Refugee Admissions Program 9,071
21.019 COVID-19: Coronavirus Relief Fund 322,737
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants 48,117
93.088 Advancing System Improvements for Key Issues in Women's Health 5,800
93.104 Comprehensive Community Mental Health Services for Children with Serious
Emotional Disturbances (SED) 340,340
93.150 Projects for Assistance in Transition from Homelessness (PATH) 879,333
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance 218,692
93.356 Head Start Cluster: Head Start Disaster Recovery 10,000
93.433 ACL National Institute on Disability, Independent Living, and Rehabilitation Research 480
93.556 Promoting Safe and Stable Families 464,055
93.558 Temporary Assistance for Needy Families 4,142,536
93.566 Refugee and Entrant Assistance — State Administered Programs 4,879,962
93.567 Refugee and Entrant Assistance — Voluntary Agency Programs 173,835
93.576 Refugee and Entrant Assistance Discretionary Grants 30,440
93.584 Refugee and Entrant Assistance — Targeted Assistance Grants 473,906
93.597 Grants to States for Access and Visitation Programs 32,606
93.598 Services to Victims of a Severe Form of Trafficking 34,054
93.600 Head Start Cluster: Head Start 55,593,445
93.623 Basic Center Grant 341,277
93.623 COVID-19: Basic Center Grant 30,909
93.645 Stephanie Tubbs Jones Child Welfare Services Program 108,355
93.658 Foster Care — Title IV-E 5,549,550
93.659 Adoption Assistance 165,254
93.665 COVID-19: Emergency Grants to Address Mental and Substance Use Disorders
During COVID-19 531,435
93.667 Social Services Block Grant 61,632
93.669 Child Abuse and Neglect State Grants 876
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood 8,552
93.676 Unaccompanied Alien Children Program 3,402,974
93.732 Mental and Behavioral Health Education and Training Grants 443,358
93.767 Children's Health Insurance Program 878,281
93.778 Medicaid Cluster: Medical Assistance Program 1,373,166
93.788 State Targeted Response to the Opioid Crisis Grants 12,636,536
93.958 Block Grants for Community Mental Health Services 7,644,088
93.959 Block Grants for Prevention and Treatment of Substance Abuse 21,308,529
97.010 Citizenship Education and Training 36,875
Total expenditures of federal awards $ 129,147,833
54
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
CSFA No. State Financial Assistance Project
State
Expenditures
22.016 Florida Network of Children Advocacy Centers $ 51,560
48.108 Voluntary Pre -Kindergarten Education Program 1,207,874
60.074 Out -Of -Home Supports 1,222
60.114 Forensic Services and Competency Restoration Training 823,432
60.115 Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 549,791
60.153 Substance Abuse and Mental Health — Community Services 121,545
60.155 Substance Abuse and Mental Health — Crisis Prevention and Stabilization Services 855,511
60.163 Centralized Receiving Systems 7,490,052
60.183 CBG — Purchase of Therapeudic Services for Children 13,600
60.190 SAMH ME State Funded Federal Excluded Services 1,224,453
64.006 Medical Services for Abused and Neglected Children 41,000
65,003 Public Guardianship 809,070
80.005 Children and Families in Need of Services (CINSIFINS) 4,6391021
Total expenditures of state financial assistance $ 17,828,131
55
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021
Section I — Summary of Auditor's Results
Financial Statements
Type of auditor's report issued on whether the financial
statements audited were prepared in accordance with GAAP:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes
Significant deficiency(ies) identified? X Yes
X No
None Reported
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Section 2 CFR 200.516(a)?
Identification of major federal programs:
ALN Number(s)
93.600 and 93.356
93.958
93.778
93.676
93,658
93.566
93.558
X Yes No
Name of Federal Program or Cluster:
Head Start Cluster
Block Grants for Community Mental Health Services
Medicaid Cluster
Unaccompanied Allen Children Program
Foster Care — Title IV-E
Refugee and Entrant Assistance — State Administered Programs
Temporary Assistance for Needy Families
Dollar threshold used to distinguish between type A
and type B programs: $ 3,000,000
Auditee qualified as low -risk auditee?
X Yes No
(Continued)
56
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2021
Section I — Summary of Auditor's Results (Continued)
State Financial Assistance Projects
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required to be
reported in accordance with Chapter 10.650?
Identification of major projects:
CSFA Number(s)
65.003
60.163
60.153
60.114
48.108
Dollar threshold used to distinguish between type A
and type B programs:
Yes
Yes
X No
X None Reported
Unmodified
Yes X No
Name of State Financial Assistance Project
Public Guardianship
Centralized Receiving Systems
Substance Abuse and Mental Health — Community Services
Forensic Services and Competency Restoration Training
Voluntary Pre -Kindergarten Education Program
(Continued)
57
$ 750,000
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2021
Section II — Financial Statement Findings
None reported.
Section III — Findings and Questioned Costs for Federal Awards and State Financial Assistance
Finding No. 2021-001 — Subrecipient Monitoring Risk Assessment
Agency and Award: U.S. Department of Health and Human Services
ALN Numbers:
93.658, Foster Care — Title IV-E
93.566, Refugee and Entrant Assistance — State Administered Programs
Significant Deficiency/Other Matter Compliance
Criteria: Per 2 CFR 200.332(b) and 2 CFR 200.332(e), a pass -through entity is required to evaluate each
subrecipient's risk of noncompliance with federal statutes, regulations, and the terms and conditions of
each sub -award for purposes of determining appropriate subrecipient monitoring requirements.
Depending on the risk assessment, the pass -through entity should identify monitoring procedures to be
performed in order to ensure proper accountability and compliance with program requirements and
achievements of performance goals.
Condition: During our test work, we noted that the Organization conducted an evaluation of three
subrecipients, but the Organization did not formally document the evaluation of each of these
subrecipients as it pertains to the risk of noncompliance with federal statutes, regulations, and the terms
and conditions of each sub -award for purposes of determining appropriate subrecipient monitoring. Due
to this, a conclusion was not formally reached as to the level of required monitoring for each subrecipient
to ensure proper accountability and compliance with program requirements and achievement of
performance goals.
Questioned Costs: None
Context: See "Condition" above.
Effect: This finding is limited to the subrecipient expenditures of the two programs identified above. The
effect of this finding could be that the Organization is not performing adequate monitoring procedures
over the subrecipients within these two major programs in order to ensure proper accountability and
compliance with program requirements and achievement of performance goals for their subrecipients.
This could result in federal funds being used for improper purposes.
Cause: The Organization did not have procedures and controls in place to ensure subrecipient risk
assessments were formally documented and approved.
Recommendation: We recommend the Organization document a formalized risk assessment for each
subrecipient to document its considerations whether subrecipient monitoring procedures in place are
adequate to ensure proper accountability and compliance with program requirements and achievement of
performance goals.
View of Responsible Officials and Planned Corrective Actions: Management agreements with the finding.
See Corrective Action Plan.
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2021
Finding No, 2021-002 — Federal Funding Accountability and Transparency Act (FFATA)
Agency and Award: U.S. Department of Health and Human Services
ALN Number:
Head Start Cluster:
93.600, Head Start Program
Significant Deficiency/Other Matter Compliance
Criteria: Per 2 CFR 170, direct recipients of grants or cooperative agreements who make first -tier
subawards of $30,000 or more are required to register in the Federal Funding Accountability and
Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS.
Condition: During our testwork, we noted that the Organization did not comply with FFATA reporting
requirements. The following table summarizes the results of our testing,
subaward Subaward
Subaward Not Report Not Amount Missing Key
Transactions Tested Reported Timely Incorrect Elemets
2
2 0 0 0
Subaward 5ubaward
Dollar Amount of Subaward Not Reported Not Amount Misisng Key
Tested Transactions Reported Timely Incorrect Elements
$ 3,175,201 $ 3,175,201 $ - $ - $
Questioned Costs: None
Context: This finding is isolated to the "reporting" direct and material compliance requirement.
Effect: Due to the Organization not registering their subawards within the FSRS, it is possible that the
federal agency may have misinformation about the subrecipient or the nature of the subrecipient
agreement.
Cause: The Organization did not have controls in place to identify and continually monitor this compliance
requirement.
Recommendation: We recommend the Organization identify and execute policies and control procedures
in order to ensure that all direct subawards made are properly reported in FSRS. This could include
having a process in place to ensure that new subaward agreements are evaluated for FFATA compliance
upon execution of the award as well as having processes in place to monitor existing subawards. We also
recommend control procedures be developed in order to identify the applicability of compliance
requirements to the Organization.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See
Corrective Action Plan.
59
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January 31, 2022
Lutheran Services Florida
CORRECTIVE ACTION PLAN
YEAR ENDED JUNE 30, 2021
Identifying Number: 2021-001- Subrecipient Monitoring Risk Assessment
Lif
Finding: During their test work, RSM noted that the Organization conducted an evaluation of three
subrecipients, but the Organization did not formally document the evaluation of each of these
subrecipients as it pertains to the risk of noncompliance with federal statutes, regulations, and the terms
and conditions of each sub -award for purposes of determining appropriate subrecipient monitoring. Due
to this, a conclusion was not formally reached as to the level of required monitoring for each subrecipient
to ensure proper accountability and compliance with program requirements and achievement of
performance goals.
LSF Comments: Lutheran Services Florida currently has 72 subrecipients of State and Federal funding
approximating $138 million dollars. We have met the subrecipient monitoring requirements for those
subrecipients for many years. The subrecipient agreements referenced above were agreements entered
into during fiscal year 2020 for a total of $1.1 million dollars in a different line of business than our current
subrecipients. Given the Covid pandemic and staffing constraints, we were unable to fully document the
evaluation of each of these subrecipients during fiscal year 2021.
Corrective Actions Taken or Planned: After our fiscal year ended June 30, 2021, LSF did document a
formalized risk assessment approach to be taken for these subrecipients. In January 2022, risk.
assessment checklists were sent to the subrecipients mentioned above. Those checklists have been
returned to LSF and a full risk assessment monitoring will take place in February 2022. In addition, risk
assessments will be completed annually for these subrecipients.
Identifying Number: 2021-002- Federal Funding Accountability and Transparency Act (FFATA)
Finding: Per 2 CFR 170, direct recipients of grants or cooperative agreements who make first -tier
subawards of $30,000 or more are required to register in the Federal Funding Accountability and
Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS.
LSF Comments: LSF was unaware of this requirement that has been in effect since October 2010 and
this issue was not identified in any prior audits. This requirement applies to 4 LSF subcontracts in our
Head Start program.
Corrective Actions Taken or Planned: LSF will enter the required data into the Federal Funding
Accountability and Transparency Act Subaward Reporting System (FSRS) for these 4 contracts in
February/March 2022 and will continue this practice of reporting the data when entering into a new
contract or amending/renewing a current contract per the FFATA requirements.
The responsible person for correcting both findings is the Chief Financial Officer.
Sincerely,
Robert Wydra
Chief Financial
Officer
60
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Lutheran Services Florida, Inc.
and Subsidiary
Consolidated Financial and Compliance Report
June 30, 2022
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Contents
independent auditor's report 1-3
Financial statements
Consolidated statements of financial position 4
Consolidated statements of activities 5
Consolidated statements of functional expenses 6-7
Consolidated statements of cash flows 8
Notes to consolidated financial statements 9-27
Supplementary information
Schedule of government grants and contracts 28
Schedule of substance abuse and mental health services, program/cost center
actual expenses and revenues:
Part I: Actual funding sources and revenues 29-35
Part II: Actual expenses 36-42
Schedule of state earnings 43
Schedule of bed -day availability payments 44
Schedule of related party transaction adjustments 45
Independent auditor's report on:
Internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with
Government Auditing Standards 46-47
Compliance for each major federal program and state financial assistance
project and report on internal control over compliance required by the Uniform
Guidance and State of Florida Chapter 10.650, Rules of the Auditor General 48-50
Schedule of expenditures of federal awards and state financial assistance 51-54
Notes to schedule of expenditures of federal awards and state financial assistance 55-57
Schedule of findings and questioned costs 58-60
Summary schedule of prior year audit findings 61-62
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RSM
RSM US LLP
Independent Auditor's Report
Board of Directors
Lutheran Services Florida,, Inc.
Report on the Audit of the Financial Statements
Opinion
We have audited the consolidated financial statements of Lutheran Services Florida, Inc. and its
subsidiary (the Organization), which comprise the consolidated statements of financial position as of
June 30, 2022 and 2021, the related consolidated statements of activities, functional expenses and cash
flows for the years then ended, and the related notes to the consolidated financial statements
(collectively, the financial statements).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Organization as of June 30, 2022 and 2021, and the changes in their net assets and their
cash flows for the years then ended in accordance with accounting principles generally accepted in the
United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to the financial audits contained in Government Auditing
Standards, issued by the Comptroller of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are required to be independent of the Organization
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Organization's ability to
continue as a going concern within one year after the date that the financial statements are issued or
available to be issued.
THE POWER OF BEING UNDERST000
AUDIT TAX CONSULT NG
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
* Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Organization's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Organization's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings and certain internal control -related
matters that we identified during the audit.
Other Matters
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The accompanying schedule of expenditures of federal awards and state financial assistance, as required
by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards and State of Florida Chapter 10.650, Rules of the
Auditor General, respectively, and other supplementary information is presented for purposes of
additional analysis and is 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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 22,
2022, on our consideration of the Organization's 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 solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Organization's internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the Organization's internal control over financial reporting and compliance.
51.f vs .L4P
Orlando, Florida
December 22, 2022
3
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Financial Position
June 30, 2022 and 2021
2022
2021
Assets
Current assets:
Cash and cash equivalents
Accounts receivable, net (Note 3)
Current portion of gifted facilities (Note 6)
Prepaid expenses
Total current assets
Investments (Note 2)
Assets limited as to use (Note 2 and 13)
Beneficial interest in assets held by others (Notes 2 and 5)
Gifted facilities, net of current portion (Note 6)
Property and equipment, net (Note 4)
Other assets
Total assets
Liabilities and Net Assets
Current liabilities:
Accounts payable (Note 7)
Accrued salaries and payroll related expenses
Other accrued expenses
Refundable advances
Current portion of capital lease obligations (Note 10)
Current portion of note payable (Note 9)
Total current liabilities
Capital lease obligations, net of current portion (Note 10)
Note payable, net of current portion (Note 9)
Total liabilities
Commitments and contingencies (Notes 10, 14, 16, 19 and 21)
Net assets (Notes 11 and 12):
Without donor restrictions
With donor restrictions
Total net assets
Total liabilities and net assets
See notes to consolidated financial statements.
4
$ 18,977,876
40,119,594
1,799,151
1,180,183
$ 20,180,768
22,671,764
1,945,428
1,189,707
62,076,804 45,987,667
1,088,691
285,948
878,331
2,436,944
5,921,886
322,342
1,246,560
280,812
996,448
2,925,122
4,990,412
256,424
$ 73.010,946 $ 56,683,445
$ 39,029,240
7,454,648
1,481,830
9,938,677
381,711
251,377
$ 18,664,631
6,864,645
2,152,541
13,410,708
417,619
239,739
58,537,483
669,826
1,872,343
41,749,883
1,051,536
2,123,719
61,079,652 44,925,138
3,654, 370
8,276, 924
3,459,296
8,299,011
11,931,294 11,758,307
$ 73,010,946 $ 56,683,445
Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Activities
Years Ended June 30, 2022 and 2021
2022
2021
Without Donor With Donor
Restrictions Restrictions
Total
Without Donor With Donor
Restrictions Restrictions
Total
Revenues and support:
Government grants and contracts
In -kind contributions (Note 15)
Contributions
Program service fees
Other income, net
Investment (loss) income, net
Change in value of beneficial interest in
assets held by others
Net assets released from restrictions (Note 11)
Total revenues and support
Expenses:
Program services
Supporting services
Total expenses
Change in net assets
Net assets:
Beginning
Ending
See notes to consolidated financial statements.
$ 294,846,365 $
2,869,628
747,402
1,080,468
642,929
(162,551)
2,989,316
303,013,557
$ 294,846,365
2,869,628
3,085,346 3,832,748
1,080,468
642,929
(162,551)
(118,117) (118,117)
(2,989,316)
(22,087) 302,991,470
$ 257,724,512 $
3,205,638
523,614
1,048,301
264,586
331,771
(52,320)
2,543,482
265,589,584
1,840,905
220,477
(2,543,482)
(482,100)
$ 257,724,512
3,205,638
2,364,519
1,048,301
264,586
331,771
168,157
265,107,484
294,055,776
8,762,707
302,818,483
195,074
3,459,296
(22,087)
294,055,776
8,762,707
302,818,483
172,987
8,299,011 11,758,307
255,867,497
8,347,602
264,215,099
1,374,485
2,084,811
255, 867,497
8,347,602
264,215,099
(482,100) 892,385
8,781,111 10,865,922
$ 3,654,370 $ 8,276,924 $ 11,931,294 $
3,459,296 $ 8,299,011 $ 11,758,307
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statement of Functional Expenses
Year Ended June 30, 2022
Program Services
Supporting Services
Substance
Abuse and Youth and Total General Total
Mental Health Children Family Resettlement Adult Program and Supporting Total
Services Services Services Services Services Services Administrative Advancement Services Expenses
Salaries $ 3,814,091 $ 22,164,603 $ 20,842,342 $ 7,564,685 $ 853,390 $ 55,239,111 $ 5,134,887 $ 314,875 $ 5,449,762 $ 60,688,873
Payroll taxes and employee benefits 693,597 5,848,513 4,581,387 1,655,565 209,366 12,988,428 1,045,276 52,858 1,098,134 14,086,562
Total salaries and
related expenses 4,507,688 28,013,116 25,423,729 9,220,250 1,062,756 68,227,539 6,180,163 367,733 6,547,896 74,776,435
Professional fees and contract services 690,337 1,573,230 312,919 118,122 139,305 3,033,913 626,073 9,460 535,533 3,669,446
Subcontractor expenses 168,817,435 17,583,438 852,726 614,735 - 187,868,334 - - - 187,868,334
Office expenses and program supplies 358,247 4,329,281 522,680 470,914 21,689 5,703,011 138,224 1,566 139,790 5,842,801
Food 1,750,574 258,856 207,646 197 2,217,273 - 21 21 2,217,294
Assistance to individuaIs 4,591,112 87,107 3,050,985 98,613 7,828,017 - 7,828,017
Occupancy 255,097 4,200,636 1,003,498 1,215,043 114,735 6,789,009 594,033 11,397 605,430 7,394,439
Repairs and maintenance 1,989 2,638,910 997,524 187,514 10,074 3,336,011 55,248 1,710 56,958 3,392,969
Equipment costs 260,897 333,710 115,849 130,223 24,396 855,075 178,017 15,552 193,569 1,048,644
Insurance and taxes 35,160 621,902 471,575 131,839 18,654 1,275,130 108,530 1,795 110,325 1,389,455
Transportation and travel 267,477 895,619 996,285 307,840 29,543 2,496,764 157,889 14,460 172,349 2,669,113
Postage, printing and publication 52,232 197,888 33,386 47,557 11,650 342,715 44,235 17,251 61,486 404,201
Interest 77,849 - - 77,849 120,346 - 120,345 198,194
In -kind expenses (Note 15) 2,575,700 114,816 179,112 2,869,628 - 2,869,628
Other operating expenses (17,873) 78,936 174,212 23,709 36,757 295,741 (20,927) 40,049 19,122 314,863
Total expenses before
depredation and
amortization 175,418,686 69,431,901 30,865,164 15,905,489 1,568,769 293,220,009 3,181,830 480,994 8,662,824 301,882,833
Depredation and amortization 11,445 669,105 55,144 93,911 6,162 835,767 99,883 99,883 935,650
Total expenses
S 175,430,131 5 70.131,006 $ 30,920,308 $ 15,999,400 $ 1,574,931 $ 294,055,776 S 8.281,713 $ 480,994 $ 8,762,707 S 302,818.483
See notes to consolidated fnancia[ statements.
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statement of Functional Expenses
Year Ended June 30, 2021
Program Services
Substance
Abuse and Youth and
Mental Health Children Family Resettlement
Services Services Services Services
Adult Services
Supp❑rting Services
Total General Total
Program and Supporting Total
Services Administrative Advancement Services Expenses
Salaries $ 3,429,440 5 23,085,477 5 17,369,949 5 4,527,753 $ 873,740 $ 49,786,359 $ 4,526,977 $ 267,179 $ 4794,156 3 54,580,515
Payroll taxes and employee benefits 874,317 3,341,295 4,098,219 1,043,906 228,772 12,386,509 1,009,981 51,283 1,061 264 13,447,773
Total salaries and
related expenses 4,103,757 29,426,772 21,968,168 5571,659 1,102,512 62,172,868 5,536,958 3113,462 5,855,420 68,028,288
Professional fees and contract services 530,448 1,484,587 315,272 107,083 120,051 2,557,441 593,113 23,851 516,964 3,174,405
Subcontractor expenses 141,986,538 18,308,894 1,435,413 724,743 - 162,455,588 - - - 162,455,588
Office e>senses and program supplies 107,228 4,072,204 438,318 752,281 51,456 5,421,487 130,315 3,554 133,869 5,555,356
Food 1,340,710 214,276 41,547 - 1,596,533 - - 1,596,533
Assistance to individuals 4,276.501 56,994 451,144 498,209 5,282,848 5,282,848
Occupancy 233,173 4,077,785 765,338 1,043,864 114,248 6,257,408 571,183 15,351 586,534 6,843,942
Repairs and maintenance 434 1,786,622 249,256 167,994 6,848 2,211,154 23,313 797 24,110 2,235,264
Equipment casts 197,695 444,812 100082 63,409 8,917 814,915 154,109 25,551 179,660 994,575
insurance and taxes 27,521 568,822 338,666 74,852 17,596 1,027,457 92,164 1,307 93,471 1,120,928
Transportation and travel 34,617 776,465 744,454 58,009 23,385 1,636,930 84,399 10,961 95,360 1,732,290
Postage, panting and publication 67,086 78,975 49.745 28,449 10,865 235,120 36,101 10,991 47,092 282,212
Interest 103,227 - 103,227 170,546 170,546 273,773
In -kind expenses (Note 15) - 3,049,669 110.366 45,603 - 3,205,638 - - - 3,205,638
Other operating expenses 42,170 94,507 123,601 8,313 29,808 298,399 414,633 3,642 418,275 716,674
Total expenses before
depreciation and
amortization 147,333,637 69,890,552 26,929,949 9,138,950 1,983,895 255 277,013 7,806,834 414,467 8,221 301 263 498,314
Depreciation and amortization 9,361 474,163 64,821 35,977 6,162 590,484 126,301 _ 126,301 716,785
Total expenses S 147,343,028 $ 70,364.715 $ 26,994.770 $ 9.174.927 5 1.990,057 $ 255,867,497 S 7,933,135 $ 414.467 $ 8.347,602 $ 264,215,099
See notes to consolidated financial statements.
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Years Ended June 30, 2022 and 2021
2022
2021
Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net assets to net cash
provided by operating activities:
Depreciation and amortization
Gain on sale/disposal of property and equipment
Net realized and unrealized losses (gains) on investments
and assets limited as to use
Change in value of beneficial interest in assets held by others
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable
Prepaid expenses
Gifted facilities
Other assets
Increase (decrease) in:
Accounts payable
Accrued salaries and payroll related expenses
Other accrued expenses
Refundable advances
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of investments and assets limited as to use
Proceeds from the sale of investments
Purchases of property and equipment
Proceeds from the sale of property and equipment
Net cash used in investing activities
Cash flows from financing activities:
Principal payments on capital lease obligations
Repayments of note payable
Net cash used in financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents:
Beginning
Ending
Supplemental disclosure of cash flow information:
Cash paid during the year for interest
See notes to consolidated financial statements.
8
$ 172,987 $ 892,385
935,650
(240,783)
234,500
118,117
(17,447,830)
9,524
634,455
(65, 918)
20,364,609
590,003
(670,711)
(3,472,031)
716,785
(263,958)
(168,157)
(1,172,649)
(139,950)
1,637,548
(76,106)
(5,489,801)
1,092,802
1,484,110
9,770,744
1,162,572 8,283,753
(339,689)
257,922
(2,171,685)
545,344
(223,659)
146,631
(1,050,964)
(1,708,108) (1,127,992)
(417,618)
(239,738)
(657,356)
(1,202,892)
(391,017)
(227, 501)
(618,518)
6,537,243
20,180,768 13,643,525
$ 18,977,876 $ 20,180,768
$ 198,194 $ 273,773
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies
Nature of activities: Lutheran Services Florida, Inc. (LSF) was organized on July 1, 1982, as a nonprofit
organization to provide various social ministries throughout the state of Florida. LSF's programs are
funded by federal, state and local governmental grants and contracts, various program service fees,
contributions, church grants and other sources.
LSF is the sole member of Lutheran Non-profit Management Services, LLC d/b/a LSF Health Systems
(LSF Health), which was organized on August 13, 2010, to govern and advise LSF's managing entity
contract over substance abuse and mental health services provided in the northeast region of Florida
effective July 1, 2012.
The principal social services provided by Lutheran Services Florida, Inc. and Subsidiary include services
to children, troubled youth and their families, refugees, the unemployed, incapacitated adults and victims
of disasters through the following programs:
Substance abuse and mental health services: Provides substance abuse and mental health services
to adults and children in 23 counties in northeast Florida.
Children services: Provides preschool care for disadvantaged children in licensed facilities and meals to
children in licensed day care homes.
Youth and family services: Provides residential, counseling and case management services to teens
and their families.
Resettlement services: Provides job training, counseling, financial assistance and placement to new
entrants to the United States.
Adult services: Provides guardianship and care management programs to elderly, mentally
incapacitated and disabled persons. Also provides temporary and permanent housing for the homeless
and health care treatment to low income HIV -infected individuals.
The following Lutheran judicatories are the founding members of LSF: the Florida -Bahamas Synod of the
Evangelical Lutheran Church in America and the Florida -Georgia District of the Lutheran Church -Missouri
Synod.
A summary of the Organization's significant accounting policies follows:
Principles of consolidation: The consolidated financial statements include the accounts of LSF and
LSF Health (collectively, the Organization), All significant intercompany transactions have been
eliminated in consolidation.
Basis of accounting: The accompanying consolidated financial statements have been prepared on the
accrual basis of accounting.
Basis of presentation: A nonprofit organization is required to report information regarding its financial
position and activities according to two classes of net assets: without donor restrictions and with donor
restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported
as follows:
Net assets without donor restrictions: Net assets that are not subject to donor -imposed stipulations but
may be designated for specific purposes by action of the board of directors.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Net assets with donor restrictions: Net assets subject to donor -imposed stipulations that may or will be
rnet either by actions of the Organization, passage of time, or permanently maintained by the
Organization. When a restriction expires, net assets with donor restrictions are reclassified to net assets
without donor restrictions and reported in the consolidated statements of activities as net assets released
from restrictions.
Use of estimates: The preparation of consolidated financial statements in accordance with generally
accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the
date of the consolidated financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents: Cash and cash equivalents includes all highly liquid fixed income
instruments purchased with original maturities of three months or less.
Concentrations of credit risk: The Organization's financial instruments that are exposed to
concentrations of credit risk include cash and cash equivalents and government grants and contracts and
related accounts receivable. Cash and cash equivalents include accounts placed with federally insured
financial institutions. Such accounts may at times exceed federally insured limits. The Organization has
not experienced any losses on such accounts. The Organization's operating support and revenues
includes concentrations primarily from federal and state programs. Changes in operating support and
revenues from federal and state programs could significantly impact the Organization, including a
reduction in the program services offered by the Organization; however, management does not anticipate
any such changes in the near term.
Accounts receivable: Accounts receivable under grants and funding contracts and program service fees
are due in less than one year. Management believes accounts receivable under grants and funding
contracts are fully collectible and has not provided an allowance for doubtful accounts. Accounts
receivable for program service fees are stated at unpaid balances, less an allowance for doubtful
accounts. The Organization provides for losses on accounts receivable based on historical experience
and any other circumstances which may affect the ability of payors to meet their obligations. It is the
Organization's policy to charge off uncollectible accounts when management determines the accounts
receivable will not be collected.
Gifted facilities: The Organization accounts for gifted facilities as contributions with donor restrictions in
the period in which the right to use the asset is acquired, at the fair value of the benefit expected to be
received over the expected term of use by the Organization and is released from restrictions when used.
A gifted facilities asset is recorded for any future benefit expected to be recognized and is amortized to
rent expense as the Organization uses the facilities over the term of the applicable lease.
Investments and investment (loss) income, net: Investments are reported at fair value. Investment
(loss) income, net, reported in the accompanying consolidated statements of activities, includes realized
and unrealized gains and losses and interest and dividend income, net of investment expenses, as
increases or decreases in net assets without donor restrictions.
Assets limited as to use: Assets limited as to use include investments held by trustees to fund the
Supplemental Executive Retirement Plan (SERP) as more fully described in Note 13.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Property and equipment: Property and equipment are recorded at cost, if purchased or at estimated fair
value at the date of receipt if acquired by gift, and those in excess of $5,000 are capitalized. Depreciation
expense related to property and equipment is computed using the straight-line method over the estimated
useful lives of the related assets, Leasehold improvements are amortized over the shorter of the
remaining lease term or the useful life of the asset. Maintenance and repairs are charged to operations
when incurred. Betterments and renewals are capitalized. When property and equipment are sold or
otherwise disposed of, the asset account and the related accumulated depreciation account are relieved,
and any gain or loss included in operations.
Property acquired with governmental funds is considered to be owned by the Organization while used in
the program for which it was purchased or in future authorized programs; however, its disposition as well
as the ownership of any proceeds therefrom is subject to applicable regulations.
Impairment of long-lived assets: The carrying value of property and equipment is reviewed for
impairment whenever events or changes in circumstances indicate such value may not be recoverable.
Recoverability of assets or asset groups to be held and used is measured by a comparison of the carrying
amount of an asset or asset group to future net cash flows expected to be generated by the asset or
asset group. If such assets or asset groups are considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value
of the assets or asset group. Assets or asset groups to be disposed of are reported at the lower of the
carrying amount or fair value less cost to sell. No impairment of the Organization's long-lived assets or
asset groups have been recognized during the years ended June 30, 2022 and 2021.
Revenue recognition; The Organization first determines if a transaction represents an exchange
transaction and, if so, accounts for the transaction in accordance with Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers
(Topic 606), which provides a five -step model for recognizing revenue form contracts with customers as
follows:
•
•
Identify the contract with a customer
Identify the performance obligations in the contract
Determine the transaction price
Allocate the transaction price to the performance obligations in the contract
Recognize revenue when or as performance obligations are satisfied
The Organization's revenue from contracts with customers consists of program fees. The Organization's
contracts have a single performance obligation. The transaction price is the amount of consideration to
which the Organization expects to be entitled in exchange for transferring services to the customer.
Revenue is recorded based on transaction price, which is a fixed consideration, Performance obligations
are satisfied at a point in time, at which point revenue is recognized. Revenue recognized from program
fees totaled $1,080,468 and $1,048,301 for the years ended June 30, 2022 and 2021, respectively.
Receivable balances, net of an allowance for doubtful accounts, were $851,522, $580,874, and $825,847
as of June 30, 2022, June 30, 2021, and July 1, 2020, respectively. These balances are included in
accounts receivable, net on the consolidated statements of financial position. There were no deferred
revenue balances for program services as of June 30, 2022, June 30, 2021, and July 1, 2020.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
The Organization performs an evaluation at contract inception focused on whether a performance
obligation is satisfied over time or at a point in time. If a performance obligation meets certain specific
criteria, the related revenue is recognized over time as the customer consumes the receives the benefits
of the Organization's services as they are performed. If certain criteria are not met, the revenue is
recognized at a point in time.
The revenue stream noted above does not include significant financing components as the performance
obligations are typically satisfied within a year of receipt of payment. Economic downturns can affect the
level of revenue or can have a positive impact on cash flow in good economic times.
Contributions and donor -imposed restrictions: Unconditional promises to give are recognized as
contributions in the period received at their fair value. Conditional contributions or promises to give are
not recognized until they become unconditional, that is, when the conditions on which they depend are
substantially met. Contributions other than cash are recorded at their estimated fair value on the date
received.
Unconditional contributions received are recorded as net assets without donor restrictions or net assets
with donor restrictions support depending on the existence or nature of any donor -imposed restrictions.
Contributions that are restricted by the donor are reported as increases in net assets without donor
restrictions if the restrictions expire or are otherwise satisfied in the fiscal year in which the contributions
are recognized. When a donor -imposed restriction expires, that is, when a stipulated time restriction ends
or purpose restriction is accomplished, net assets with donor restrictions are reclassified into net assets
without donor restrictions and are reported in the accompanying consolidated statements of activities as
net assets released from restrictions.
Donated materials are reflected in the accompanying consolidated financial statements at their estimated
fair value at date of receipt. Donated services are recognized and recorded at their estimated fair value
only to the extent they create or enhance nonfinancial assets or require specialized skills, are provided by
individuals possessing those skills, and would typically need to be purchased if not provided by donation.
The Organization records donated goods and services as in -kind support and expenses in the
accompanying consolidated statements of activities and consolidated statements of functional expenses.
Government grants and contracts: Government grants and contracts are considered exchange
transactions if each party receives and sacrifices commensurate value. Funds from these exchange
transactions are not considered contributions and are deemed to be earned and reported as revenue over
time as performance obligations are met based on when such funds have been expended towards the
designated purpose. Funds received in advance and not yet earned are recorded as deferred revenue.
Government grants and contracts not considered exchange transactions are recognized as revenue when
the funds are utilized by the Organization to carry out the activity stipulated by the grant or contract
thereby satisfying imposed barriers and/or rights of return. The grants and contracts can be terminated by
the grantor or refunding can be required under certain circumstances coupled with other performance
and/or control barriers. For these reasons, these grant and contract agreements are considered
conditional. Accordingly, amounts received, but not recognized as revenue, are classified in the
consolidated statements of financial position as refundable advances.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Functional expense allocations: The costs of providing the various programs and supporting services
have been summarized on a functional basis in the consolidated statements of activities and in the
consolidated statements of functional expenses. Accordingly, certain costs have been allocated among
the various programs and supporting services benefited. Salaries and related payroll expenses are
allocated among functional categories based on the estimated proportion of time spent to each function.
All other expenses are allocated based on management's estimate of the relative functional activity.
Income taxes: The Organization is exempt from federal income taxes under Section 501(c)(3) of the
Internal Revenue Code and from state income taxes under similar provisions of the Florida Statutes. LSF
is the sole member of LSF Health, which is considered a disregarded entity for federal and state income
tax purposes. Therefore, no provision for income taxes has been included in the accompanying
consolidated financial statements.
The Organization follows accounting standards relating to accounting for uncertainty in income taxes.
Management assessed whether there were any uncertain tax positions which may give rise to income tax
liabilities and determined that there were no such matters requiring recognition in the accompanying
consolidated financial statements. Generally, the Organization is no longer subject to U.S. federal or state
income tax examinations by tax authorities for years before June 30, 2019.
Fair value measurements: The Organization measures its financial assets and liabilities at fair value
using a three-tier hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are described below:
Level 1: Valuation based on unadjusted quoted market prices in active markets for identical assets or
liabilities.
Level 2: Valuation based on observable quoted prices for similar assets and liabilities in active markets.
Level 3: Valuation based on inputs that are unobservable and are supported by little or no market
activity, therefore requiring management's best estimate of what market participants would use
as fair value.
A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is
significant to the fair value measurement.
The following methods and assumptions were used to estimate the fair value of financial instruments:
Level 1: The Organization's Level 1 investments include money market funds, fixed income and equity
securities and real asset funds.
Level 2: The Organization's Level 2 investments include the beneficial interest in assets held by others
and is valued based on information provided by the Community Foundations (see Note 5)
which is primarily derived from or corroborated by observable market data as it relates to the
Community Foundations' underlying investments.
Level 3: The Organization's Level 3 investments include the beneficial interest in the Zerbst perpetual
trust and is valued based on the value of the underlying investments held in the trust.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Recently adopted accounting pronouncements: Effective July 1, 2021, the Organization
retrospectively adopted FASB Accounting Standards Update (ASU) 2020-07, Not -for -Profit Entities (Topic
958): Presentation and Disclosure by Not -for -Profit Entities for Contributed Nonfinancial Assets. The ASU
requires a not -for -profit organization to present contributed nonfinancial assets as a separate line item in
the statements of activities, apart from contributions of cash or other financial assets. The ASU also
requires enhanced disclosure, including disaggregation of nonfinancial assets recognized by category
and qualitative information about each category. The adoption of this ASU resulted in expanded
disclosure.
Recently issued accounting pronouncements: Certain accounting pronouncements which have been
recently issued by the FASB and are relevant to the Organization are as follows:
In February 2016, the FASB issued its new lease accounting guidance in ASU 2016-02, Leases (Topic
842). Under the new guidance, lessees will be required to recognize the following for all leases (with the
exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's
obligation to make lease payments arising from a lease, measured on a discounted basis and (2) a right -
of -use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified
asset for the lease term. Lessees will no longer be provided with a source of off -balance sheet financing.
Lessees must apply a modified retrospective transition approach for leases existing at, or entered into
after, the beginning of the earliest comparative period presented in the financial statements. Nonpublic
entities should apply the amendments for fiscal years beginning after December 15, 2021. The
Organization believes this ASU will have a material impact on the consolidated financial statements.
The FASB has issued certain new or modifications to, or interpretations of, existing accounting guidance
in addition to the ASU's described above. The Organization has considered the new pronouncements and
does not believe that any other new or modified guidance will have a material impact on the
Organization's reported financial position or activities in the near term.
Subsequent events: The Organization has evaluated subsequent events through December 22, 2022,
the date on which the consolidated financial statements were available to be issued.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments
The following table summarizes major categories of the Organization's assets measured at fair value on a
recurring basis as of June 30, 2022 and 2021:
2022
Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ 39,210 $ - $ $ 39,210
Equity securities:
Emerging market funds 247,014 247,014
Preferred stock 22,556 - 22,556
Index funds 17,797 - 17,797
Convertible securities 20,788 20,788
Large growth funds 119,273 - 119,273
Large cap funds 144,862 - 144,862
Fixed income securities:
Index bond funds 42,457 42,457
Intermediate duration bond funds 143,908 - 143,908
Corporate bond funds 120,434 120,434
Government bond funds 119,644 119,644
Real asset funds 50,748 - 50,748
Total investments 1,088,691 - 1,088,691
Assets limited as to use:
Money market funds 111281 - 11,281
Equity securities:
Large blend funds 81,170 81,170
Emerging market funds 65,304 - 66,304
Index funds 15,470 - 15,470
Fixed income securities:
Index bond funds 15,785 - 15,785
Short duration funds 30,716 30,716
Global bond funds 33,935 33,935
Intermediate duration bond funds 32,287 32,287
Total assets limited as to use 285,948 - 285,948
Beneficial interest in:
Assets held by others - 143,707 143,707
Perpetual trust - - 734,624 734,624
Total beneficial interest in
assets held by others 143,707 734,624 878,331
$ 1,374,639 $ 143,707 $ 734,624 $ 2,252,970
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Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments (Continued)
2021
Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ 26,866 $ $ $ 26,866
Equity securities:
Emerging market funds 72,612 - 72,612
Small/mid cap funds 56,151 56,151
Preferred stock 24,584 24,584
Index funds 23,820 - 23,820
Convertible securities 25,499 - 25,499
Large growth funds 157,125 - 157,125
Large cap funds 159,967 159,967
Internationally developed funds 226,688 226,688
Fixed income securities:
Index bond funds 79,361 79,361
Intermediate duration bond funds 86,002 86,042
Corporate bond funds 112,842 112,842
Government bond funds 132,442 - 132,442
Real asset funds 62,601 - 62,601
Total investments 1,246,560 1,246,560
Assets limited as to use:
Money market funds 14,020 - 14,020
Equity securities:
Large blend funds 80,671 - 80,671
Emerging market funds 64,189 - 64,189
Index funds 17,727 17,727
Fixed income securities:
Index bond funds 15,764 - 15,764
Short duration funds 27,359 27,359
Global bond funds 31,348 31,348
Intermediate duration bond funds 29,734 - 29,734
Total assets limited as to use 280,812 - 280,812
Beneficial interest in:
Assets held by others 178,377 178,377
Perpetual trust - 818,071 8181071
Total beneficial interest in
assets held by others - 178,377 818,071 996,448
$ 1,527,372 $ 178,377 $ 818,071 $ 2,523,820
The Organization's investments in equity and fixed income securities are not concentrated in a single
entity or in a few entities, nor are there any specific industry concentrations.
The board of directors designates a portion of the Organization's cumulative investment return for support
of current operations; the remainder is retained to support operations of future years and to offset
potential market declines. The fixed amount determined by the board of directors at the beginning of each
fiscal year as part of the Organization's budgeting process considers the Organization's long and
short-term needs, present and anticipated financial requirements, and expected total return on its
investments (see Note 12).
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 3. Accounts Receivable
Accounts receivable consists of the following at June 30, 2022 and 2021:
Managing entity contract
Other grants and funding sources
Program fees and other, net of allowance for doubtful accounts
of $183,512-2022 and $256,388-2021
2022
2021
$ 26,947,114
12,320,958
851,522
$ 11,752,101
10,338,789
580,874
$ 40,119,594 $ 22,671,764
Note 4. Property and Equipment
Property and equipment consists of the following at June 30, 2022 and 2021:
Land
Buildings and improvements
Vehicles
Leasehold improvements
Computer equipment and software
Furniture and equipment
Less accumulated depreciation and amortization
Estimated
Useful Lives
(Years)
2022
2021
N/A
35
3-5
5
3-5
2-5
$ 1,848,945
3,637,870
1,421,263
5,697,649
802,108
1,596,936
$ 1,610,899
3,672,521
1,077,407
4,793,558
780,139
1,538,929
15,004,771
(9,082,885)
$ 5,921,886
13,473,453
(8,483,041)
4,990,412
Depreciation and amortization expense for the years ended June 30, 2022 and 2021, was $935,650 and
$716,785, respectively.
Note 5. Beneficial Interest in Assets Held by Others
The Organization has established endowments at Community Foundation of Broward, Inc. and
Community Foundation of Tampa Bay, Inc. (the Community Foundations) and named itself as the
beneficiary. Under the terms of the endowment agreements, the Community Foundation of Broward, Inc.
has variance power over the funds and the Community Foundation of Tampa Bay, Inc. does not have
variance power over the funds. During 2016, the Organization was notified of its interest as the sole
beneficiary of the Charles A. Zerbst Charitable Trust (Zerbst Trust), a perpetual trust established for LSF's
benefit and administrated by an independent trustee. Investment income (losses), net of distributions and
fees on beneficial interest in assets held by others are recorded as change in value of beneficial interest
in assets held by others in the accompanying consolidated statements of activities.
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 5. Beneficial Interest in Assets Held by Others (Continued)
The fair value of the Organization's beneficial interest in assets held by others is as follows:
2022 2021
Beneficial interest in assets held by others:
Community Foundation of Broward, Inc. $ 137,080 $ 170,739
Community Foundation of Tampa Bay, Inc. 6,627 7,638
143,707 178,377
Beneficial interest in perpetual trust:
Charles A. Zerbst Trust 734,624 818,071
$ 878,331 $ 996,448
Note 6. Gifted Facilities
Gifted facilities represents the present value of the excess of the aggregate fair rental value of building
leases over below market rent payments due under lease agreements executed in connection with the
Organization's Head Start programs operated in Pinellas, Duval and Palm Beach counties. Gifted
facilities are recorded as contributions with donor restrictions and are released from restrictions as rent
expense is recorded. Activity of the gifted facilities during the years ended June 30, 2022 and 2021, is
summarized as follows:
Balance at June 30, 2020
Contributions
Rent expense
Balance at June 30, 2021
Contributions
Rent expense
Balance at June 30, 2022
Less current portion of gifted
facilities
Gifted facilities, less
current portion
Pinellas Duval
Properties Properties
$ 1,320,827 $ 805,895
24,915 344,895
(484,606) (320,693)
861,136 830,097
1,037,887 121,450
(516,117) (350,161)
1,382,906 601,386
(282,026) (265,972)
$ 1,100,880 $ 335,414
Note 7. Accounts Payable
Accounts payable consists of the following at June 30, 2022 and 2021:
Managing entity contract
Trade
18
Palm Beach
Properties Total
$ 4,381,376 $ 6,508,098
84,701 454,511
(1,286,760) (2,092,059)
3,179,317 4,870,550
359,241 1,518,578
(1,286,755) (2,153,033)
2,251,803 4,236,095
(1,251,153) (1,799,151)
$ 1,000,650 $ 2,436,944
2022
2021
$ 34,638,080 $ 15,017,685
4,391,160 3,646,946
$ 39,029,240 $ 18,664,631
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Notes to Consolidated Financial Statements
Note 8. Line of Credit
The Organization maintains a revolving line of credit with the Lutheran Church Extension Fund -Missouri
Synod, an unaffiliated nonprofit organization, with a maximum availability of $7,250,000. Interest is
payable monthly at the lenders cost of funds, which is the weighted average annual rate of interest plus
3% (4.125% at June 30, 2022). The line of credit is secured by the Organization's accounts receivable
balance and requires the Organization to meet certain covenants. At June 30, 2022, the Organization was
in compliance with these restrictive covenants. There was no outstanding balance on the line of credit at
June 30, 2022 and 2021. The line of credit matures on April 4, 2025.
Note 9. Note Payable
The Organization entered into a promissory note with Lutheran Church Extension Fund -Missouri Synod in
the amount of $2,750,000, with a maturity date of September 20, 2029. The promissory note is secured
by the Organization's accounts receivable balance and requires the Organization to meet certain
covenants. The promissory note calls for monthly principal and interest payments of $28,902, with a fixed
interest rate of 4.75% through September 30, 2024. Beginning on October 1, 2024, the interest rate will
be adjusted based on the lenders cost of funds plus 3% through maturity. The monthly principal and
interest payment will be adjusted accordingly. The outstanding balance on the note payable at June 30,
2022 and 2021, was $2,123,720 and $2,363,458, respectively.
Maturities of the note payable at June 30, 2022, are as follows:
Years ending June 30:
2023 $ 251,377
2024 263,581
2025 276,378
2026 289,795
2027 303,864
Thereafter 738,725
Less current portion
19
2,123,720
(251,377)
$ 1,872,343
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Notes to Consolidated Financial Statements
Note 10. Leases
Capital leases: The Organization is obligated under capital lease agreements for certain facilities which
expire at various dates through fiscal year 2027. Upon expiration of these leases, title to the properties
will automatically transfer to LSF. At June 30, 2022, the gross amount of facilities and related
accumulated amortization recorded under capital leases was $4,005,115 and $2,953,578, respectively. At
June 30, 2021, the gross amount of facilities and related accumulated amortization recorded under capital
[eases was $4,005,115 and $2,535,959, respectively. Amortization of assets held under capital leases is
included in depreciation and amortization expense. Future minimum payments under capital lease
obligations at June 30, 2022, are as follows:
Years ending June 30:
2023 $ 441,982
2024 173,400
2025 173,400
2026 173,400
2027 173,400
Thereafter 86,700
Total minimum capital lease payments 1,222,282
Less amount representing interest (170,745)
Present value of capital lease payments 1,051,537
Less current portion of capital lease obligations (381,711)
Capital lease obligations, less current portion $ 669,826
Operating leases: The Organization leases the majority of its office space and office equipment under
operating lease agreements which expire at various dates through June 30, 2036. Security deposits
related to such leases are included in other assets in the accompanying consolidated statements of
financial position. Rental expense on operating leases was approximately $3,682,000 and $2,940,000
during the years ended June 30, 2022 and 2021, respectively. The majority of the Organization's
operating leases include 30-day cancellation provisions in the event the Organization loses its funding.
Future minimum lease payments under non -cancellable operating leases (with initial or remaining terms
in excess of one year) as of June 30, 2022, are as follows:
Years ending June 30:
2023 $ 2,730,642
2024 1,663,273
2025 1,125,927
2026 883,442
2027 80,306
Thereafter 43,210
6,526,800
20
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 11. Net Assets
Net assets without donor restrictions are available for the following purposes as of June 30, 2022 and
2021:
Undesignated
Board designated for specified purposes
2022 2021
$ 2,565,679 $ 2,212,736
1,088,691 1,246,560
$ 3,654,370 $ 3,459,296
The board of directors of LSF established a board designated endowment to be used to support
operations which was $1,088,691 and $1,246,560 as of June 30, 2022 and 2021, respectively (see
Note 12).
Net assets with donor restrictions are restricted for the following purposes as of June 30, 2022 and 2021:
2022 2021
Restricted for specified purposes:
Facilities and equipment subject to time restrictions $ 3,050,341 $ 2,074,908
Gifted facilities 4,236,095 4,870,550
Employee tuition reimbursement - 22,668
Other 112,157 334,437
7,398,593 7,302,563
Restricted in perpetuity —endowment:
Broward County program endowment 137,080 170,739
Tampa Bay program endowment 6,627 7,638
143,707 178,377
Restricted in perpetuity —beneficial interest:
Zerbst Trust
734,624 818,071
$ 8,276,924 $ 8,299,011
Net assets with donor restrictions that were released from donor restrictions by incurring expenses
satisfying the restricted purposes or by the occurrence of other events specified by donors for the years
ended June 30, 2022 and 2021, are as follows:
2022 2021
Facilities and equipment subject to time restrictions $ 531,749 $ 266,879
Rent expense from gifted facilities 2,153,033 2,092,058
Employee tuition reimbursement 22,668 6,225
Other 281,866 178,320
$ 2,989,316 $ 2,543,482
21
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds
LSF has a board designated endowment fund included in net assets without donor restrictions which was
established by the board of directors for the purpose of supporting the Organization's programs, LSF also
has two donor restricted endowment funds which are included in net assets with donor restrictions and
consist of funds established with the Community Foundation of Broward, Inc. and the Community
Foundation of Tampa Bay, Inc. The earnings on the donor restricted endowment funds are to be used to
support program operations and are recorded as net assets with donor restrictions until appropriated to
LSF.
Interpretation of relevant law: Effective July 1, 2012, the state of Florida adopted the Uniform Prudent
Management of Institutional Funds Act. The board of directors has interpreted the wishes of donors and
state law as requiring the preservation of the fair value of the original gift as of the gift date of the donor -
restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this
interpretation, the Organization classifies as net assets with donor restrictions: (a) the original value of
gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the endowment
and (c) accumulations to the endowment made in accordance with the direction of the applicable donor
gift instrument at the time the accumulation is added to the fund.
Investment return objectives, risk parameters and strategies: The Organization has adopted
investment and spending policies, approved by the board of directors, for endowment assets that attempt
to provide a predictable stream of funding to programs supported by its endowment funds while also
preserving the purchasing power of those endowments over the long-term. The policies stipulate that the
endowments should be managed as a long-term goal designed to maximize the returns without exposure
to undue risk, as defined herein. Whereas it is understood that fluctuating rates of return are characteristic
of the securities markets, the greatest concern should be long-term appreciation of the assets and
consistency of total portfolio returns. Recognizing that short-term market fluctuations may cause
variations in the account performance, the Organization will pursue a strategy seeking to exceed a
benchmark return of a target portfolio consisting of approximately 35% fixed income securities, 55%
equity securities and 10% real assets for the general endowment fund. Earnings only on the endowment
funds held the Community Foundations are used to support programs in those counties.
Spending policy: The Organization has a policy limiting the spending of its permanent endowment funds
to interest income that may be withdrawn for use in the county where the endowments are based.
Endowment net asset composition by type of fund are as follows at June 30, 2022 and 2021:
2022
Without
Donor
Restrictions
With
Donor
Restrictions
Total
Endowment
Net Assets
Board designated endowment $ 1,088,691 $ - $ 1,088,691
Broward County program endowment 137,080 137,080
Tampa Bay program endowment 6,627 6,627
$ 1,088,691 $
22
143,707 $ 1,232,398
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds (Continued)
Board designated endowment
Broward County program endowment
Tampa Bay program endowment
2021
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
$ 1,246,660 $
$ 1,246,560
170,739 170,739
7,638 7,638
$ 1,246,560 $ 178,377 $ 1,424,937
Changes in endowment net assets for the years ended June 30, 2022 and 2021, are as follows:
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
Balances at June 30, 2020 $ 1,000,392 $ 148,526 $ 1,148,918
Board designations 7,670 7,670
Investment income, net 238,498 37,078 275,576
Appropriations (7,227) (7,227)
Balances at June 30, 2021 1,246,560 178,377 1,424,937
Board designations 8,541 - 8,541
Investment loss, net (166,410) (27,237) (193,647)
Appropriations (7,433) (7,433)
Balances at June 30, 2022 $ 1,088,691 $ 143,707 S. 1,232,398
Note 13. Retirement Plans
The Organization sponsors a 403(b) multiple employer retirement plan (the 403(b) Plan) administered by
One America. Under the 403(b) Plan, employees are eligible to participate once they attain the age of 21.
The Organization may elect to make matching and non -elective contributions to the 403(b) Plan.
Participants' rights to employer contributions vest after three years of service.
The Organization also sponsors a 457(b) multiple employer plan (the 457(b) Plan) administered by One
America. Under the 457(b) Plan, eligible employees may participate upon their date of hire. The
Organization may elect to contribute matching and non -elective contributions to the 457(b) Plan.
Participants' rights to employer contributions vest after one year of service.
Employer contributions to the 403(b) and 457(b) plans for the years ended June 30, 2022 and 2021, were
approximately $1,002,000 and $1,065,000, respectively.
The Organization also sponsors a 457(f) employee benefit plan or SERP, which provides a key executive
(the Participant) deferred compensation benefits outside of the two plans described above. Benefits under
the SERP accumulate from annual contributions and earnings thereon. The plan participant's rights to
employer contributions vest on February 7, 2023. For the years ended June 30, 2022 and 2021, the
Organization incurred expenses under the SERP of approximately $5,000 and $95,000, respectively. At
June 30, 2022 and 2021, the Organization has $285,948 and $280,812, respectively, of assets limited as
to use for payment of its obligation under the SERP which is included in accrued salaries and payroll
related expenses in the accompanying consolidated statements of financial position.
23
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Lutheran Services Florida, inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 14. Contingencies
The Organization routinely enters into grant agreements and contracts with governmental agencies that
provide forreimbursement of the eligible direct and indirect costs of providing certain of the
Organization's program services. The grants and contracts are subject to audit or review and retroactive
adjustment based on a final determination by the grantor of eligible reimbursable expenditures. The effect
of such adjustments, if any, cannot be determined at this time and no provision has been made for any
such adjustments in the accompanying consolidated financial statements.
The Organization is involved in legal actions arising during the ordinary course of its operations. The
potential loss under these claims is not determinable at this time, Management believes any potential loss
would be expected to fall within the Organization's insurance policy limits. The only anticipated financial
exposure would be payment of the insurance deductible, a nominal amount. In the opinion of
management, no material liability exists with respect to these claims.
The Organization sponsors a welfare benefit plan (the Plan) which provides medical and prescription drug
benefits to its employees. Under the terms of the Plan, the Organization is responsible and self -insured
for the first $175,000 of individual covered claims and is subject to a maximum annual aggregate stop
loss limit which was $9,084,970 for the year ended June 30, 2022. Health insurance expense is based
upon premiums paid to the insurer, estimated total cost of claims to be paid by the Organization that fall
within the deductible limits described above, and the administrative costs of the Plan. The Organization
outsources administration of claims to a third -party administrator (Meritain). Under the terms of the
Meritain agreement, Meritain provides management with an estimate of incurred but unreported claims
(IBNR) and the future development of covered claims using an actuarially determined reserve
methodology based on current and historical claims development trends, which are recorded in payroll
taxes and employee benefits in the accompanying consolidated statements of functional expenses. As of
June 30, 2022 and 2021, accrued estimated health insurance expense under the Plan was approximately
$806,000 and $1,678,000, respectively, and is included in accrued salaries and payroll related expenses
in the accompanying consolidated statements of financial position. Estimated health insurance expense
was approximately $6,055,000 and $6,353,000, respectively, for the years then ended, which is included
in payroll taxes and employee benefits in both program services and supporting services in the
accompanying consolidated statements of activities. Actual claims expense may differ from these
estimates. At June 30, 2022 and 2021, the Organization had approximately $990,000 and $1,799,000,
respectively, of funds included in cash and cash equivalents to pay outstanding claims.
Note 15. In -Kind Contributions
In -kind contributions included in the consolidated statements of activities and functional expenses and the
corresponding expenses are as follows:
Professional services
Food, clothing and household items
2022 2021
$ 402,300 $ 444,895
2,467,328 2,760,743
$ 2,869,628 $ 3,205,638
No donated food, clothing and household items or professional services were restricted for use. The
Organization estimates the fair value of its in -kind contributions in line with FASB Topic 820, Fair Value
Measurement. Food, clothing and household items are valued based on the wholesale value that would
be received from selling similar products in the United States. Contributed professional services are
valued at the estimated fair value based on current rates for similar services. The Organization utilizes
donated materials for their mission and does not monetize or sell the goods.
24
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 16. In -Kind Contributions
Donated services for the years ended June 30, 2022 and 2021, with estimated fair values of
approximately $2,881,000 and $2,031,000, respectively, were not recognized in the accompanying
consolidated financial statements because they did not meet the criteria for recognition because they did
not require specialized skills and would ordinarily not be purchased if not provided by donation.
Note 17. Matching Requirements
The Organization received a substantial portion of its support from various funding sources which
required local matches. Management believes these requirements were met through program service
fees, local grants and public donations during the years ended June 30, 2022 and 2021.
Note 18. Liquidity and Availability of Resources
As of June 30, 2022 and 2021, the following reflects the Organization's financial assets, reduced by
amounts not available for general use because of contractual or donor -imposed restrictions and board
designations, within one year of June 30, 2022 and 2021:
2022 2021
Financial assets, at year-end
Cash and cash equivalents $ 18,977,876 $ 20,180,768
Accounts receivable, net 40,119,594 22,671,764
Investments 1,088,691 1,246,560
Gifted facilities 4,236,095 4,870,550
Less those unavailable for general expenditures within
one year, due to:
Contractual or donor -imposed restrictions:
Restricted by donors with purpose and/or time restrictions (3,162,498) (2,432,013)
Restricted by donors with use restrictions (4,236,095) (4,870,550)
Board designations:
Board designated for specified purposes (1,088,691) (1,246,560)
Financial assets available to meet cash needs for
general expenditures within one year $ 55,934,972 $ 40,420,519
Over 95% of the Organization's annual revenue is comprised of cost reimbursement or pass -through
contracts. Therefore, there is little ability to generate surplus revenue and maintain large cash balances.
As such, the Organization relies on contract advances and prompt funder reimbursements to maintain
liquidity. The Organization also maintains a $7,250,000 line of credit available to meet cash flow needs if
necessary.
25
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 19. Guardianship Program
In connection with the Organization's guardianship program, the Organization manages funds for
individuals who have been declared incapacitated. The Organization is a court -appointed legal guardian
for these individuals. Assets managed by the Organization include real property valued in the table below
at their fair value on the date the Organization was appointed guardian. Cash and cash equivalents, and
investments are included in the table below at current fair value. Income earned on assets managed is
applied to each individual's account balance. Assets managed by the Organization are not included in the
accompanying consolidated financial statements. The value of assets managed are as follows:
Cash and cash equivalents
Investments in fixed income and equity securities
Real property
Cash surrender value of life insurance and other annuities
Other
2022 2021
$ 6,621,235
4,336,933
4,119,322
4,099,872
504,123
$ 5,762,900
6,854,870
2,992,999
4,366,438
170,266
$ 19,681,485 $ 20,147,473
For the years ended June 30, 2022 and 2021, program service fees earned under the guardianship
program were approximately $644,000 and $701,000, respectively, and are included in program service
fees in the accompanying consolidated statements of activities.
Note 20. Contract with Duval County Staff
The Organization's Head Start program in Duval County includes certain personnel that are employed by
the Organization under a collective bargaining agreement, The collective bargaining agreement is
effective through January 31, 2025.
Note 21. Conditional Promises to Give
The Organization has conditional promises to give from grantors of approximately $68,559,000 and
$60,850,000 as of June 30, 2022 and 2021, respectively. Future payments are contingent upon the
Organization carrying out certain activities (meeting grant -imposed barriers) stipulated by the grant or
contract.
Note 22. Paycheck Protection Program
On August 5, 2020, the Organization received a loan in the amount of $10,000,000 under the Paycheck
Protection Program (PPP). The PPP, established as part of the Coronavirus Aid, Relief and Economic
Securities Act, provides for loans to qualifying businesses for amounts up to 2.5 times of the average
monthly payroll expenses of the qualifying business. Under the terms of the PPP, PPP loans and accrued
interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including
payroll, benefits and other qualifying expenses.
26
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Lutheran Services Florida, Inc, and Subsidiary
Notes to Consolidated Financial Statements
Note 22. Paycheck Protection Program (Continued)
As of June 30, 2021, the Organization used $5,661,348 of the loan proceeds to fund its payroll expenses.
The Organization submitted an application to the Small Business Administration (SBA) on July 23, 2021,
requesting that these PPP funds received be forgiven. On July 30, 2021, the Organization received
notification that the $5,661,348 was forgiven. The Organization elected to account for the PPP loan as a
conditional contribution under ASC Subtopic 958-605. Management believes the revenue recognition
criteria under ASC Subtopic 958-605 have been met for $5,861,348 of the $10,000,000 PPP loan. As
such, this amount has been recognized in government grants and contracts in the accompanying
consolidated statements of activities as of June 30, 2021. The remaining principal balance of $4,338,652
is included in refundable advances in the accompanying consolidated statements of financial position as
of June 30, 2021. The remaining principal balance of $4,338,652 plus accrued interest was repaid by the
Organization on August 3, 2021.
The SBA may audit whether the Organization qualified for the PPP loan and met the conditions
necessary for forgiveness of the loan for up to six years after it forgave the loan. Therefore, it is possible
that the Organization may have to repay an amount previously forgiven by the SBA.
27
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Government Grants and Contracts
Year Ended June 30, 2022
Direct federal funding:
U.S. Department of Health and Human Services $ 62,019,975
Pass -through awards of federal and state funding:
State of Florida Department of Children and Families 177,432,902
State of Florida Department of Health 6,997,930
Children's Network of Southwest Florida, LLC 5,659,810
Eckerd Connects, Community Alternatives 4,489,377
Family Support Services of Suncoast, LLC 4,616,500
Florida Network of Youth and Family Services, Inc. 4,349,464
ChildNet, Inc. 3,241,037
Safe Children Coalition, Inc. 3,274,557
Partnership for Strong Families, Inc. 2,425,930
Lutheran Immigration and Refugee Services 4,749,388
Voluntary Pre -Kindergarten 1,432,760
Youth Co -Op, Inc. 1,008,909
South Florida Workforce Investment Board 396,613
Hillsborough County, State of Florida 1,808,561
State of Florida Department of Elder Affairs 851,247
Lakeview Center, Inc. 67,057
State of Florida Office of Attorney General 298,934
U.S. Committee for Refugees and Immigrants 175,618
National Children's Alliance 77,750
University of South Florida 95,436
Hillsborough County Public Schools 84,375
City of St. Petersburg 13,260
223,547,415
Local and other grants and contracts:
Children's Services Council of Palm Beach County 5,151,806
Children's Board of Hillsborough County 2,514,734
Florida Blue Foundation 429,017
Lee County, State of Florida 427,252
Family Endeavors, Inc. 287,294
Heartland for Children, Inc. 114,779
Lutheran Immigration and Refugee Services (MOU) 85,948
Florida Network of Youth and Family Services, Inc. (DV Respite) 78,568
Hernando County BOCC 57,077
Santa Rosa County, State of Florida 43,699
Sarasota County, State of Florida 31,347
Other 57,454
9,278,975
Total government grants and contracts $ 294,846,365
28
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues
Budget Period July 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMH/ASA/CSA
Clay Community
Behavioral— Forensic
Part I: Actual Funding Sources and Revenues: Aftercare/ Case Crisis Beds— Crisis Crisis Support/
Funding Sources and Revenues Follow -Up Assessment Management Prevention Adult Services Stabilization Emergency Day Care Day Treatment
IA. State SAMH funding
Contract EH003 $ 89,110 $ 876,894 $ 2,813,285 $ 450,963 $ 1,062,673 $ 17,091,248 $ 16,478,524 $ 77,660 $ 720,550
Contract EH003—carryover - - - - - - -
Total state SAMH funding 89,110 876,894 2,813,285 480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
IB. Other government funding
(1)Other stale agency funding - - -
(2) Medicaid - -
(3) Local government - - -
(4) Federal grants and contracts - - -
(5) In-lbnd from local government only - - -
Total other government funding - - -
IC. All other revenues
(1) First and second party payments - - -
(2) Third -party payments (except Medicare) - - -
(3) Medicare - - -
(4) Contributions and donations - -
(5) Other - - - -
(6) Refunds - - -
(7) In -kind - - -
Total all other revenues - - -
Total funding $ 89,110 $ 876,894 $ 2,813,285 $ 480,963 $ 1,062,673 $ 17,091,248 $ 16,478,524 $ 77,660 $ 720,550
(Continued)
29
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Lutheran Services Florida, Inc, and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Florida
Assertive
Drop -In Community Indigent Psych
Self -Help FR—CAT Treatment Incidental Medication Information In -Home!
Centers Teams (FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
IA. State SAMH funding
Contract EHOC3
Contract EH003--carryover
Total state SAMH funding
$ 738,799 $ 8,626,191 $ 3,428,459 $ 11,748,370 $ 385,692 $ 2,329,025 $ 122,008 $ 760,110 $ 205,405
738,799
8,626,191 3,428,459
11,748,370 385,692
2,329, 025 122,008
760,110 205,405
IB. Other government funding
(1) Other state agency funding - -
(2) Medicaid - -
(3) Local government - - -
(4) Federal grants and contracts - -
(5) In -kind from local government only - - -
Total other government funding - - -
1C. All other revenues
(1) First and second party payments - -
(2) Third -party payments (except Medicare) - - -
(3) Medicare - - -
(4) Contributions and donations - -
(5) Other - -
(6) Refunds - - -
(7) In -kind - -
Total all other revenues - -
Total funding $ 738,799 $ 8.626.191 $ 3,428,459 $ 11,748,370 $ 385,692 $ 2,329,025 $ 122,008 $ 760,110 $ 205,405
(Continued)
30
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July '1, 2021 Through June 30, 2022
Part 1: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMH/ASAICSA
Intensive Case Medical
Inpatient Management Services
Mental Health
Clubhouse
Services
Methadone
Treatment
Multi -
Disciplinary
Forensic Team
Outreach
PATH
Community
Support
Services
Federal
Prevention
IA. State SAMH funding
Contract EH003
Contract EH003—carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC. All other revenues
(1) Rrst and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
$ 1,616,123 $ 61,849 $ 4,881,158 $ 1,039,689 $ 4,696,518 $ 692,650 $ 1,398,121 $ 646,258 $ 8,924,334
1,616,123
61,849
4,881,158
1,039,689
4,696,518
692,656
1,398,121
646,258
8,924,334
Total funding $ 1,616,123 $ 61,849 $ 4.881.158 $ 1,039,689 $ 4,696,518 $ 692.650 $ 1,398,121 $ 646,258 $ 8,924,334
(Continued)
31
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Respite Supported Supported Transitional Residential
Services SA Detox Employment HousinglLiving TASC Beds Intervention Outpatient Services
IA. State SAMH funding
Contract EH003 $ 626,679 $ 6,998,467 $ 398,896 $ 227,178 $ 79,031 $ 38,605 $ 686,056 $ 2,375,648 $ 22,424,148
Contract EH003--carryover - - - - - - - - -
Total state SAMH funding 626,679 6,998,467 398,896 227,178 79,031 38,605 686,056 2,375,648 22,424,148
IB. Other government funding
(1) Other state agency funding
(2) Medicaid - - -
(3) Local government _ - - -
(4) Federal grants and contracts - -
(5) in -kind from local government only - -
Total other government funding -
IC. All other revenues
(1) First and second party payments - - - - - -
(2) Third -party payments (except Medicare) _ _ _ _ _ _
(3) Medicare - - - - -
(4) Contributions and donations - - - -
(5)Other - - - - - -
(6) Refunds - - - - - -
(7)In-kind - - - - - -
Total all other revenues
Total funding $ 626,679 $ 6,998,467 $ 398.896 $ 227,176 $ 79,031 $ 38.605 $ 686,056 $ 2,375.648 $ 22,424,148
(Continued)
32
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMH/ASAJCSA
Room and
Board with Transition
Supervision Vouchers
Bnet
Care
Coordination
Purchased
Residential
Therapeutic
Services
Fixed Rate
First Episode Central Receivinc Recovery
Psychosis Facilities Support
Federal
Project Grant
IA. State SAMH funding
Contract EH003
Contract EH003—carryover
Total state SAMH funding
M. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC. All other revenues
{1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
5 6.675,811 $ 139,822 $ 819,963 $ 1,254,319 $ 283,125 $ 1,331,578 $ 7,182,471 $ 131,725 $ 3,196,887
6,675,811
139,822
819,963
1,254,319
283,125
1,331,578
7,182,471
131,725
3,196,887
Total funding $ 6,675,811 $ 139,822 $ 819,963 $ 1.254.319 $ 283,125 $ 1,331,578 $ 7,182,471 $ 131,725 $ 3,196,887
(Continued)
33
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program!Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Network Local
Other Evaluation Provider Diversion Total for
Bundled Cost Wraparound and Provision Forensic Sustainability AMHICMHI
Projects Reimbursement Projects Development Projects Project Payments ASAICSA
IA. State SAMH funding
Contract EH003
Contract EH003—carryover
Total state SAMH funding
$ 7,512,554 $ 4,183,362 $ 184,429 $ 3,232,819 $ 1,583,630 $ $ 134,226 $ 163,693,205
7,512,664
4,183,362 184,429
3,232,819 1,583,630
134,226 163,693,205
[B. Other government funding
(1) Other state agency funding - - - - - -
(2) Medicaid - - - - -
(3) Local govemment - - - -
(4) Federal grants and contracts - - - - - -
(5) In -kind from local government only - - - - - -
Total other governmentfunding - -
IC. All other revenues
(1) First and second party payments -
(2) Third -party payments (except Medicare) - - - - -
(3) Medicare - - -
(4) Contributions and donations - - - -
(5) Other - - - - -
(6) Refunds - - - -
(7)In-kind - - - - -
Total all other revenues -
Total funding $ 7,512.664 $ 4,183,352 $ 184,429 $ 3,232,819 $ 1,583,630 $ - $ 134,226 $ 163,693,265
(Continued)
34
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Total for Non- Total for all
ME Total for State State -Funded State Designated
Part l: Actual Funding Sources and Revenues: Administrative SAMH-Funded SAMH Cost SAMH-Funded Non-SAMH Total
Funding Sources and Revenues Services Cost Centers Centers Cost Centers Cost Centers Funding
IA. State SAMH funding
Contract EH003 $ 5,748,186 $ 163,693,205 $ - $ 169 441,391 $ $ 169,441,391
Contract EH003—carryover - 4,210,827 - 4,210,827 - 4,210,827
Total state SAMH funding 5,748,186 167,904,032 - 173,652,218 173,652,218
IB. Other government funding
(1)Otherstate agency funding - - 7,183,054 7,183,054
(2) Medicaid - - - -
(3) Local government - - - 9,278,975 9,278,975
(4) Federal grants and contracts - - 104,732,118 104,732,118
(5) In -kind from local government only - - - - -
Total other government funding - - - 121,194,147 121,194,147
IC. All other revenues
(1) First and second party payments - - 1,080,468 1,080,468
(2) Third -party payments (except Medicare) - - -
{3) Medicare - - - -
(4) Contributions and donations - - - 3,832,748 3,832,748
(5) Other - - - 362,261 362,261
(6) Refunds - - - - -
(7) In -kind - - - 2,948,013 2,948,013
Total all other revenues - - - 8,223,490 8,223,490
Total funding $ 5,748,186 $ 167.904,032 $ - 6 173.652,218 $ 129,417,637 $ 303.069,855
(Continued)
35
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH1CMH1ASAlCSA
Clay Community
Behavioral— Forensic
Part 11: Actual Expenses: Aftercare! Case Crisis Beds —Adult Crisis Crisis Support!
Funding Sources and Revenues Follow -Up Assessment Management Prevention Services Stabilization Emergency Day Care Day Treatment
IIA. Personnel expenses
(1) Salaries $ $ - $ - $ - $ - $ - $ $ - $
(2) Fringe benefits - - - - - -
Total personnel expenses - - - - - - - -
11B. Other expenses _
(1) Building occupancy - - - - - -
(2) Professional services - - - - - -
(3)Travel - - - - -
(4) Equipment - - - -
(5) Food services - - - - -
(6) Medical and pharmacy - - - - - -
(7) Subcontracted services 89,110 876,894 2,813,285 480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
(8)insurance - - - - - -
(9)Interest paid - - - - -
(10) Operating supplies and expenses - - - - -
(11) Other - - -
(12) Donated items - -
Total other expenses 89,110 876,894 2,813,285 480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
Total personnel and other expenses 89,110
11C. Distributed indirect costs
(a) Other supporf costs (optional)
(b) Administration
Total distributed indirect costs
876,894 2,813,285
480,963 1,062,673
17,091,248 16,478,524
77,660 720,550
Total actual operating expenses 89,110 876,894 2,813,285 480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
IID. Unallowable costs - - -
Total allowable operating expenses $ 89,110 $ 876,894 $ 2,813,285 $ 480,963 $ 1,062,673 $ 17,091,248 $ 16,478,524 $ 77.660 $ 720.550
IIE. Capital expenditures $ - $ - $ - $ - $ - $ - $ - $ $
(Continued)
36
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHJCMHIASAICSA
Florida
Assertive
Drop -In Community Indigent Psych
Part II_ Actual Expenses: Self -Help FR—CAT Treatment incidental Medication Information in -Home/
Funding Sources and Revenues Centers Teams {FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
IIA. Personnel Expenses
(1) Salaries $ - $ $ - $ $ $ $ $ - $ -
(2) Fringe benefits -
Total personnel expenses
IIB. Other expenses
(1) Building occupancy - - -
(2) Professional services - -
(3) Travel - -
(4) Equipment - - -
(5) Food services - - -
(6) Medical and pharmacy - - -
(7) Subcontracted services 738,799 8,626,191 3,428,459 11.748,370 385,692 2,329,025 122,008 760,110 205,405
(8) Insurance - - -
(9) Interest paid - - -
(10) Operating supplies and expenses - - -
(11) Other - - -
(12) Donated items - - -
Total other expenses 738,799 8,626,191 3,428,459 11,748,370 385,692 2,329,025 122,008 760,110 205,405
Total personnel and other expenses
738,799 5,626,191 3,428,459 11,748,370 385,692 2,329,025 122,008 760,110 205,405
IIC. Distributed indirect costs
(a) Other support costs (optional) - - - -
(b) Administration - - -
Total distributed indirect costs
Total actual operating expenses 738,799 8,626,191 3,428,459 11,748,370 385,692 2,329,025 122,008 760,110 205,405
I1D. Unallowable costs - - - -
Total allowable operating expenses S 738,799 $ 8,626.191 $ 3,428.459 $ 11,748,370 $ 355,692 $ 2,329,025 $ 122,008 $ 760.110 $ 205.405
llE. Capital expenditures $ $ - $ - $ - $ - $ - $ $ $
(Continued)
37
THIS DOCUMENT IS A SUBSTITUTION
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Part II: Actual Expenses:
Funding Sources and Revenues
IIA. Personnel expenses
(1) Salaries
(2) Fringe benefits
Total personnel expenses
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH!CMHIASAICSA
$
Mental Health
Intensive Case Medical Clubhouse
Inpatient Management Services Services
$ $ $
PATH
Community
Multi- Support
Methadone Disciplinary Services
Treatment Forensic Team Outreach Federal Prevention
M. Other expenses
(1) Building occupancy - -
(2) Professional services - - -
(3) Travel - - - -
(4) Equipment - -
(5) Food services - - - -
(6) Medical and pharmacy - - -
(7) Subcontracted services 1,616,123 61,849 4,881,158 1,039,689 4,696,518 692,650 1,398,121 646,258 8,924,334
(8) Insurance - - - -
(9) Interest paid - - - - -
(16) Operating supplies and expenses - - - -
(11) Other -
(12) Donated items - - -
Total other expenses 1,616,123 61,849 4,881,158 1.039,689 4,696,518 692,650 1,398,121 646,258 8,924,334
Total personnel and other expenses 1,616,123 61,849 4,881,158 1.039,689 4,696,518 692,650 1,398,121 646,258 8,924,334
IIC, Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs - - -
Total actual operating expenses 1,616,123 61,849 4,881,158 1,039,689 4,696,518 692,650 1,398,121 646,258 8,924,334
IID. Unallowable costs - - - -
Total allowable operating expenses $ 1.616,123 3 61,84E $ 4,881,158 $ 1.039.689 $ 4.696,518 $ 692,650 $ 1,398,121 $ 646,258 $ 8.924,334
IIE. Capital expenditures $ - $ - $ - $ $ - $ $ - $
(Continued)
38
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Part IL Actual Expenses: Respite Supported Supported Transitional Residential
Funding Sources and Revenues Services SA Detox Employment Housing/Living TASC Beds Intervention Outpatient Services
IIA. Personnel expenses
(1) Salaries $ - $ - $ - $ - $ - $ $ $ $
(2) Fringe benefits - - - - -
Total personnel expenses - -
IIB. Other expenses
(1) Building occupancy - - - -
(2) Professional services - - - -
(3) Travel - - - - -
(4) Equipment - - - -
(5) Food services - - - -
(6) Medical and pharmacy - - - - -
(7) Subcontracted services 626,579 6,998,467 398,896 227,178 79,031 38,605 686,056 2,375,648 22,424,148
(8) Insurance - - - - -
(9) Interest paid - - - - -
(10) Operating supplies and expenses - - - -
(11) Other - - - -
(12) Donated items - - - -
Total other expenses 626,879 6,998,467 398.896 227,178 79,031 38,605 686,056 2,375,648 22,424,148
Total personnel and other expenses 626,679
IIC. Distributed indirect costs
(a) Other support casts (optional)
(b) Administration
Total distributed indirect costs
6,998,467 398.896
227,178 79,031
38,605 686,056
2,375,648 22,424,148
Total actual operating expenses 626,679 6,998467 398,896 227,178 79,031 38,605 686,056 2,375,648 22,424,148
IID. Unallowable costs - - - - -
Total allowable operating expenses $ 626,679 $ 6,998,467 $ 398,896 $ 227,178 $ 79,031 $ 38,605 $ 686,056 $ 2,375,648 $ 22,424,148
IIE. Capital expenditures $ - $ - $ - $ - $ - $ - $ - $ $
(Continued)
39
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Purchased Fixed Rate
Room and Residential Central
Part 11: Actual Expenses: Board with Transition Care Therapeutic First Episode Receiving Recovery Federal
Funding Sources and Revenues Supervision Vouchers Bnet Coordination Services Psychosis Facilities Support Project Grant
1IA. Personnel expenses
(1) Salaries $ - $ 8 - $ - $ $ - $ - $ $ -
(2) Fringe benefits - - - - -
Total personnel expenses - - -
I1B. Other expenses
(1) Building occupancy - - - -
(2) Professional services - - - - - -
(3) Travel - - - - -
(4) Equipment - - - -
(5) Food services - - - -
(6) Medical and pharmacy - - - -
(7) Subcontracted services 6,675,311 139,822 819,963 1,254,319 283,125 1,331,578 7,182,471 131,725 3,196,887
(8)Insurance - - - - -
(9) Interest paid - - - -
(10) Operating supplies and expenses - - - -
(11) Other - - - - -
(12) Donated items - - - - -
Total other expenses 6,675,811 139,822 819,963 1,254,319 283,125 1,331,578 7,182,471 131,725 3,196,887
Total personnel and other expenses 6,675,811 139,822 819,963 1,254,319 283,125 1,331,578 7,182,471 131,725 3,196,887
11C. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs - - - - -
Total actual operating expenses 6,675,811 139,822 819,963 1,254,319 283,125 1,331,578 7,182,471 131,725 3,196,887
IID. Unallowable costs - - - - - -
Total allowable operating expenses $ 6,675,811 $ 139,822 $ 819,963 $ 1,254,319 $ 283,125 $ 1.331 578 $ 7,182,471 $ 131,725 $ 3,196,887
IIE. Capital expenditures $ - $ - $ $ - $ $ - $ - $ $ -
(Continued)
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Lutheran Services Florida, Inc, and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH/CM HAASA/CSA
Local
Other Network Provider Diversion Total for
Part 11: Actual Expenses: Bundled Cost Wraparound Evaluation and Provision Forensic Sustainability AMHICMH
Funding Sources and Revenues Projects Reimbursement Projects Development Projects Project Payments ASAICSA
IIA. Personnel expenses
(1) Salaries $ - $ $ $ $ - $ - $ - $ -
(2) Fnnge benefits - - - -
Total personnel expenses - - - -
IIB. Other expenses
(1) Building occupancy - -
(2) Professional services - -
(3) Travel - -
(4) Equipment - - -
(5) Food services - -
(6) Medical and pharmacy - - -
(7) Subcontracted services 7,512,664 4,183,362 184,429 3,232,819 1,583,630 - 134,226 163,693,205
(8) Insurance - -
(9) Interest paid -
(10)Operating supplies and expenses - -
(11) Other -
(12) Donated items - -
Total other expenses 7,512,664 4,183,362 184,429 3,232,819 1,583,630 - 134,226 163,693,205
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
7,512,664 4,183,362 184,429 3,232,819 1,583,639
134,226 163,693,205
Total actual operating expenses 7,512,664 4,183,362 184,429 3,232,819 1,583,630 134,226 163,693,205
IID. Unallowable costs - -
Total allowable operating expenses $ 7,512,634 $ 4,183,362 $ 184,429 $ 3,232819 $ 1,583,630 $ $ 134,226 $ 163,693,205
IIE. Capital expenditures $ - $ - $ - $ $ $ $ - $ -
(Continued) 4,(
THIS DOCUMENT IS A SUBSTITUTION
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 1, 2021 Through June 30, 2022
Total for Non- Total for all
ME Total for State State -Funded State Designated
Part11: Actual Expenses: Administrative SAMH-Funded SAMH Cost SAMH-Funded Non-SAMH Total
Funding Sources and Revenues Services Carryforward Cost Centers Centers Cost Centers Cost Centers Administration Advancement Expenses
HA. Personnel expenses
(1) Salaries $ 3,419,038 $ - $ 3,419,038 $ - $ 3,419,038 $ 51,820,073 $ 5,134,887 $ 314,875 $ 60,688,873
(2) Fringe benefits 608,216 - 608,216 - 608,216 12,380,212 1,045,276 52,858 14,086,562
Total personnel expenses 4,027,254 - 4,027 254 - 4,027,254 64,200,285 6,180,163 367,733 74.775,435
I1B. Other expenses
(1) Building occupancy 230,691 - 230,691 - 230,691 6,558,318 594,033 11,397 7,394,439
(2) Professional services 131,127 - 131,127 - 131,127 2,902,786 626,073 9,460 3,669,446
(3)Travel 238,872 - 238,872 - 238,872 2,257,892 157,889 14,460 2,669,113
(4) Equipment 256,899 - 256,899 - 256,899 4,743,537 359,565 17,262 5,377,263
(5) Food services - - - 2,217,273 - 21 2,217,294
(6) Medical and pharmacy - - - - - - - -
(7) Subcontracted services 4,075,920 167,769,125 167,769,125 20,099,209 - - 187,868,334
(8) Insurance 31,236 - 31,236 - 31,236 1,247,894 108,530 1,795 1,389,455
(9) Interest paid - - - - - 77,849 120,345 - 198,194
(10) Operating supplies and expenses 317,071 - 317,071 - 317,071 13,556,672 182,459 18,817 14,075,019
(11) Other 102,534 - 102,534 - 102,534 171,477 803 40,049 314,863
(12) Donated items - - - - - 2,948,013 - - 2,948,013
Total other expenses 1,308,430 4,075,920 169,077,555 - 169,077,555 56,780,920 2,149,697 113,261 228,121,433
Total personnel and other expenses 5,335,684 4,075,920 173,104,609 - 173,104,809 120,981,205 8,329,860 480,994 302,896,868
11C. Distributed indirect costs
(a) Other support casts (optional)
(b) Administration
Total distributed indirect costs
Total actual operating expenses
11D. Unallowable costs
350,522
350,522 - 350,522 7,947,740 (8,329,860) 31,598
350,522
350,522 - 354,522 7,947,740 (8,329,860) 31,598
5,686,206 4,475,920 173,455,331
173 455,331 128,928,945 - 512,592 302,896,868
- - - 22,109 - 22,109
Total allowable operating expenses $ 5.686.206 $ 4,075.920 $ 173,455,331 $
$ 173,455,331 $ 128,906,836 $
- $ 512,592 $ 302,874,759
11E. Capital expenditures $ 21,969 5 - $ 21,989 $ - $ 21,969 $ 2,191,314 $ $ - $ 2,213,283
42
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THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of State Earnings
Year Ended June 30, 2022
* This schedule does not apply for the year ended June 30, 2022.
THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of Bed -Day Availability Payments
Year Ended June 30, 2022
* This schedule does not apply for the year ended June 30, 2022.
THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost
Center Actual Expenses and Revenues (Continued)
Schedule of Related Party Transaction Adjustments
Year Ended June 30, 2022
This schedule does not apply for the year ended June 30, 2022.
THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL CAN
BE SEEN AT END OF THIS DOCUMENT.
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
independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
RSM
RSM US LLP
We have audited, in accordance with the 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 (Government Auditing Standards), the
consolidated financial statements of Lutheran Services Florida, Inc. and Subsidiary (the Organization),
which comprise the consolidated statement of financial position as of June 30, 2022, and the related
consolidated statements of activities, functional expenses and cash flows for the year then ended, and the
related notes to the consolidated financial statements (collectively, the financial statements), and have
issued our report thereon dated December 22, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Organization's
internal control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal
control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the Organization's financial statements will not be prevented, or detected and corrected,
on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
THE POWER OF BEING LINDERST000
AUDIT I TAX CONSULT.NG
46
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Organization's financial statements are free
from 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 financial statements. However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Organization's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Organization's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Ps 2.4P
Orlando, Florida
Decernber 22, 2022
47
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RSM
RSM US LLP
Report on Compliance for Each Major Federal Program and State Financial Assistance Project
and Report on Internal Control Over Compliance Required by the Uniform Guidance
and State of Florida Chapter 10.650, Rules of the Auditor General
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
Report on Compliance for Each Major Federal Program and State Financial Assistance Project
Opinion on Each Major Federal Program and State Financial Assistance Project
We have audited Lutheran Services Florida, Inc. and Subsidiary's (the Organization) compliance with the
types of compliance requirements described in the OMB Compliance Supplement and in the State of
Florida's Department of Financial Services' State Projects Compliance Supplement that could have a
direct and material effect on each of the Organization's major federal programs and state financial
assistance projects for the year ended June 30, 2022. The Organization's major federal programs and
state financial assistance projects are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
In our opinion, the Organization complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs and state financial assistance projects for the year ended June 30, 2022.
Basis for Opinion on Each Major Federal Program and State Financial Assistance Project
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States (Government Auditing
Standards); the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance); and the State of Florida Chapter 10.650, Rules of the Auditor General (Chapter 10.650). Our
responsibilities under those standards, the Uniform Guidance and Chapter 10.650 are further described in
the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Organization and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program and state financial assistance project. Our audit does not provide a legal
determination of the Organization's compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
Organization's federal programs and state projects.
THE POWER OF BEING UNDERSTOOD
AUDIT 1 fAX CONSULT:NG
48
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Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express and
opinion on the Organization's compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards, the Uniform Guidance and Chapter 10.650 will
always detect material noncompliance when it exists. The risk of not detecting material noncompliance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements referred to above is considered material, if there is a substantial likelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable user of the report
on compliance about the Organization's s compliance with the requirements of each major federal
program and state financial assistance project as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, the Uniform Guidance,
and Chapter 10.650, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the Organization's compliance with the compliance requirements
referred to above and performing such other procedures as we considered necessary in the
circumstances.
• Obtain an understanding of the Organization's internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the Organization's internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit, we did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
49
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Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control aver compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance and Chapter 10.650. Accordingly, this report is not suitable for any other purpose.
ESN as .L4P
Orlando, Florida
December 22, 2022
50
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
Federal Total
ALN Contract/Grant Provided lc Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Number Subrecipients Expenditures
U.S. Department of Agriculture:
Passed -through from Florida Department of Health:
Child and Adult Care Food Program 10,558 D-154 $ - $ 4,879,897
COVID-19: Child and Adult Care Food Program 10,558 D-154 - 127,962
Child and Adult Cara Food Program 10.558 S-121 1,306,617
COVID-19: Child and Adult Care Food Program 10,558 5-121 354,605
Child and Adult Care Food Program 10,558 H-3109 10,801
COVID-19: Child and Adult Care Food Program 10,558 H-3109 1,093
Child and Adult Care Food Program 10,558 H-3110 14,527
COVID-19: Chid and Adult Care Food Program 10.558 H-3110 - 994
Child and Adult Care Food Program 10.558 H-3654 _ 30,625
Child and Adult Care Food Program 10.558 H-3385 44,590
COVID-19: Child and Adult Care Food Program 10.558 H-3385 613
Subtotal—U.S. Department of Agriculture 8,772,127
U.S. Department of Housing and Urban Development:
Passed -through from City of St. Petersburg:
CDBG - Entitlement Grants Cluster:
Community Development Block Grants/Entitlement Grants 14.218 B-20-MW-12-0017 - 13,260
Passed -through from Florida Department ofNealth:
Housing Opportunities for Persons with AIDS 14.241 CODMB 184,804
Subtotal—U.S. Department of Housing and
Urban Development 190,064
U.S. Department of Justice:
Passed -through from Stale of Florida Office of Attorney General:
Crime Victim Assistance
16.575 VOCA-2020-LSF-00524 100,199
16.575 VOCA-2021-LSF-00528 1913,736
Subtotal—U.S. Department of Justice - 298,935
U.S. Department of State:
Passed -through from Lutheran Immigration and Refugee Services:
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
Subtotal—U.S. Department of State
U.S. Department of Treasury
Passed -through from Honda Department of Children and Families:
COVID-19: Coronavlrus Relief Fund
Subtotal—U.S. Department of Treasury
U.S. Department of Homeland Security:
Passed -through from Hillsborough County Public Schools
Citizenship Education and Training
Subtotal—U.S. Department of Homeland Security
U.S. Department of Health and Human Services:
Substance Abuse and Mental Health Services Projects of
Regional and National Significance
Mental and Behavioral Health Education
and Training Grants
basis Center Grant
Education and Prevention Grants to Reduce Sexual Abuse of
Runaway, Homeless and Street Youth
19.510 SPRMCO21CA3007/ 323-21-LSF-02 - 152,433
19.510 SPRMCO21CA3007 / 323-21-LSF-02 19,753
19.510 SPRMCO22CA00221323-22-LSF-01 267,640
19.510 SPRMCO22CA0022 / 323-22-LSF-01 - 44,549
19.510 SPRMCO21CA32901320-21/22-00 1,839,918
19.510 SPRMCO21CA3290 / 320-21/22-00 - 197,905
21.019 EH003
2,322,198
1,232,181 1,372,108
1,232,181 1,372,188
97.010 20CICET00157 84,375
93.243 6795M051468
93.243 H79T1084096
93.732 M01 HP31270
93732 T26HP39448
93,623 90CY6957
93,623 90CY6962
93,623 90CY7365
84,375
318,636
104,328
22,062
443,372
124,033
690,306
201,272
149,168
130,360
93,557 90Y02452 23,944
(Continued)
51
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2022
Federal Grantor/Fass-Through GrantordProgram Title
COVID-19: Emergency Grants to Address Mental and Substance
Use Disorders During COVID-19
Unaccompanied Antler Children Program
Head Start Cluster: COVID-19, Head Start
Head Start Cluster: COVID-19, Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Heed Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head. Start Cluster: Head Start
Head Start Cluster: Head Start Disaster Recovery
Passed -through from Hillsborough County, State of Florida:
Head Start Cluster: Head Start
Passed -through from State of Florida Department of
Children and Families:
Refugee and Entrant Aaaietance—State Administered
Programs
Projects for Assistance in Transition from Homelessness
(PATH)
Temporary Assistance for Needy Families
COVID 19: Emergency Grants to Address Mental and Substance
Use Disorders During COVID-19
Children's Health Insurance Program
Medicaid Cluster: Medical Assistance Program
State Targeted Response to the Opioid Crisis Grants
Block Grants for Community Mental Health Services
Block Grants for Prevention and Treatment of Substance
Abuse
Block Grants for Community Mental Health Services
Passed -through from Lutheran immigration and
Refugee Services:
Refugee and Entrant Assistance —Voluntary Agency
Programs
Refugee and Entrant Assistance Discretionary Grants
Unaccompanied Alien Children Program
Passed-fhraugh from U.S. Committee for Refugees and immigrants
Block Grants for Community Mental Health Services
Passed -through from University of South Florida:
Healthy Marriage Promotion and Responsible Fatherhood Grants
Passed -through from Eckerd Connects, Community Alternatives:
Promoting Safe and Stable Families
Temporary Assistance for Needy Fami{ies
Federal
ALN
Number
93,865
93.676
93.676
93.800
93.800
93.800
93.800
93.800
93.800
93,800
93.600
93.600
93.800
93.800
93.800
93.356
93.600
83.600
93.566
93.566
93.566
93.566
Contract/Grant
Number
H79FG000416
90ZU0320-02
90ZU0320-03
04HE000622-01 C5 - CRRSA
04HE000822-01 C8 - ARP
04C1-1011072-03
04CH011072-04
04CH010626-04
04CH010626-05
04CH011190-03
04CH011190-04
04CH011690-01
04CH011690-02
04HP000259-03
04HP000259-04
04TD000155
04C1-1011252-01119-1169
04C1-1011252-02119-1169
1.K208
LK205
RET-DP-PY'20-08-00
XK063LSF
93.150 EH003
93,558 EH003
93.665
93.767
93,778
93.788
93.958
EH003
EH003
EH003
EH003
EH003
93.959 EH003
93,956 LH844
93.587
93.567
93.576
93.576
93,676
93.676
93.676
93.676
93.676
93,598
93.086
93.556
93,556
93,558
93.558
2102MDRVMG / 342-21-LSF-00
2202MDRVMG 1342-22-LSF-00
90 RP0124-01-01 1354-22-00A
90950124-01-031354-22-0013
90Z110318-021358-21-00
90ZU0318-031358-22-00
90Z00394-011358-21-01
90ZU0361-011357-21-00
90ZU0361-021357-22-00
90ZV0123
5112-5527-00-B - 90ZB0024
ECA-C6-CMO-LSF-FY22
ECA-C6-DIV-CFP-FY22
ECA-C6-CMO-LSF-FY22
ECA-C6-DIV-CFP-FY23
(Continued)
52
13,085,783
18,104,934
34,371,409
1,653,457
Provided to
Subrecipi ants
5 149,543
100,713
204,307
1,810,860
461,795
1,848,549
509,743
5,125,143
2,560,542
627,737
237,240
Total
Federal
Expenditures
5 273,429
3,300,483
2,871,438
594,443
718,963
987,774
311,188
12,533,778
3,300,918
10,277,653
2,464,805
15,416,912
5,252,188
1,307,040
411,058
216,715
305,347 606,179
770,995 1,202,382
614,735 1,079,855
2,318,342
396,813
1,006, 909
648,256 846,258
1,902,914
221,566 221,566
819,983 819,963
42,228
13,597,761
18,800,844
34,371,409
25,833 30,274
60,535
1,049,707
518,739
27,140
249,455
138,558
8,669
183,698
190,688
175,617
95,426
31,830
170,673 557,846
564,423
206,734 443,079
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2022
Federal Grantor/Pass-Through Grantor/Program Title
Federal
ALN
Number
CcntractlGrant
Number
Total
Provided to Federal
Subreciplents Expenditures
Stephanie Tubbs Jonas Child Welfare Services Program
Foster Care -Title IV-E
Adoption Assistance
Social Services Block Grant
Child Abuse and Neglect Slate Grants
Passed -through from Children's Network of Southwest Florida, LLC:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Grants to Stales for Access and Visitation Programs
Stephanie Tubbs Janes Child Welfare Services Program
Foster Care -Title IV-E
Adoption Assistance
Social Services Block Grant
Passed -through from ChildNet, fact
Promoting Safe and Stable Families
Foster Care -Title IV-E
Social Services Block Grant
John H. Chafee Foster Cara Program for Successful
Transition to Adulthood
Passed -through from Partnership far Strong Families:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Stephanie Tubbs Jones Child Welfare Services Program
Foster Caro - Title IV-E
Adoption Assistance
John H. Chafee Foster Cara Program for Successful
Transition to Adulthood
Passed -through from Safe Children Coalition, Mgt
Promoting Sate and Stable Families
Temporary Assistance for Needy Families
Grants to States for Access and Visitation Programs
Stephanie Tubbs Jones Child Welfare Services Programs
Foster Care -Title IV-E
Adoption Assistance
John H. Chafee Foster Care Program for Successful
Transition to Adulthood
Medical Assistance Program
Passed -through from Lakeview Center, lno.:
Foster Caro -Title IV-E
Social Services Block Grant
Block Grants for Community Mental Health Services
Subtotal-U.S. Department of
Health and Human Services
93.645
93,358
93.858
93.659
93.667
93,689
93,558
93, 558
93,558
93, 558
93,597
93,645
93,658
93,858
93,659
93,867
93,687
93,667
ECA-06-C MC-LS F-FY22
ECA-C6-CMO-LS F-FY22
ECA-C6-HIV-CFP-FY23
ECA-C6-CMO-LSP-FY22
ECA-C6-HIV-CFP-FY23
ECA-C6-HIV-CFP-FY23
ABK01
WBS01
ABK01
FBR01
ABK01
ABK01
ABK01
FBR01
ABK01
WBS01
SATO5
N/A
93556 LSF2ORGC
93,556 NIA
93,658 LSF2ORGC
93,658 NIA
93,687 LSF2ORGC
93,667 LSE20PIL
93,657 NIA
93,674 LSF20PIL
93,556 PCM763
93,558 PCM763
93,645 PCM763
93,658 PCM763
93,658 NIA
93,659 PCM763
93,674 PCM763
93556
93,558
93,597
93,845
93,658
93,659
LSFCM20
LSFCM20
LSFCM20
LSFCM20
LSFCM20
LSFCM20
93,674 LSFCM20
93,778 LSFCM20
93,858
93,687
93, 958
C-010-101
C-010-101
G-010-201
$ - $ 399,952
1,340,610
340,041 555,712
118638
4,160 13,599
17,423
12,300
470,189
105,038
22,096
274,770
1,097,241
144,844
114,377
81,079
6,673
8,222
72,189
14,850
607,562
14,017
318,334
89,005
5,531
2,201
10,506
283,556
165,712
536,601
22,031
45,616
1,318
34,330
382,485
19,193
222,571
695,094
61,267
1,605
4,946
5,128
14,478
10,479
86,633,041 151,904,168
Total expenditures of federal awards $ 87,865,222 $ 162,952,055
(Continued)
53
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Lutheran Services Florida, Inc, and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2022
State Total
CSFA Contract/Grant Provided to State
State Grantor/Pass-Through Grantor/Program Title Number Number Subrecipients Expenditures
State Courts System:
Passed -Through from Gulf Coast K O's House:
Florida Network of Children Advocacy Centers 22.018 NIA $ $ 77,750
Department of Children and Families:
Forensic Services and Competency Restoration Training 60.114 EH003 1,230,053 1,230,053
Substance Abuse and Mental Health —Community Services 60.153 EH003 1,666,319 1,666,319
Substance Abuse and Mental Health —Crisis Prevention
and Stabilization Services 60,155 EH003 2,600,000 2,600,000
Centralized Receiving Systems 60,163 EH003 7,908,967 7908,967
SAMH ME State Funded Federal Excluded Services 60,190 EH003 903,926 903,926
Criminal Justice, Mental Health, and Substance
Abuse Reinvestment Grant Program 80,115 LHZ76 18,438 29,892
60,115 LHZ86 170,539 322,321
Passed -through from Childnet,
Out -Of -Home Supports
Passed -through from Children's Network of
Southwest Florida, LL C.
CSC —Purchase of Therapeudic Services for Children
Subtotal —Department of Children and Families
30,074 LSF20RGC 15,702
60.074 LSF2CPIL 22,647
30.074 NIA 750
60.183 WES01 39,521
14,498,240 14,740,098
Department of Education:
Passed -through from Eddy Learning Coalition of Pinellas
County, Inc.
Voluntary Pre -Kindergarten Education Program 48.108 N/A 165,275
Passed -through from Early Learning Coalition of
Palm Beach County, Inc.:
Voluntary Pre -Kindergarten Education Program 48.108 N/A - 861,664
Passed -through from the Early Learning Coalition of
Duval, inc..
Voluntary Pre -Kindergarten Education Program 48.108 N/A - 605,821
Subtotal —Department of Education - 1,432,760
Department of Health:
Medical Services for Abused end Neglected Children 64.006 CP1 PN 41,000
Department of Elder Affairs:
Public Guardianship 65.003 X9208.A3 300,591
65.003 X9238.43 - 550,658
Subtotal —Department of Elder Affairs 851,247
Department of Juvenile Justice:
Passed -through from Florida Network of Youth and
Pamity Services, Inc.:
Children and Families in Need of Services (CINSIF1NS)
80,005 Southeast - 1,091,857
80.005 Northwest 1,483,308
80,005 Southwest 1,774,299
Subtotal —Department of Juvenile Justice
Total expenditures of state financial assistance
Total expenditures of federal awards end state financial assistance
See notes to schedule of expenditures of federal awards and state financial assistance.
54
4,349,464
14,498,240 21,492,319
$ 102.363,462 $ 184,444,374
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
Note 1. Basis of Presentation
The accompanying consolidated schedule of expenditures of federal awards and state financial
assistance (the Schedule) includes the federal award and state financial assistance project activity of
Lutheran Services Florida, Inc. and Subsidiary, under programs of the federal government and the state
of Florida for the year ended June 30, 2022. The information in this Schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the
State of Florida Chapter 10.650, Rules of the Auditor General. Because the Schedule presents only a
selected portion of the operations of Lutheran Services Florida, Inc. and Subsidiary, it is not intended to
and does not present the financial position, changes in net assets or cash flows of Lutheran Services
Florida, Inc. and Subsidiary.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance and cost
principles established by the State of Florida Department of Financial Services, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
Lutheran Services Florida, Inc. and Subsidiary has elected not to use the 10% de minimis indirect cost
rate as allowed under the Uniform Guidance.
Note 4. Other
The accompanying Schedule presents federal expenditures and state financial assistance by
pass -through agency. Expenditures of certain federal programs and state financial assistance projects
were awarded to Lutheran Services Florida, Inc. and Subsidiary by more than one pass -through agency
or under more than one contract. Total expenditures by federal award program and state financial
assistance project are summarized on pages 56-57.
55
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Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
ALN No. Federal Program or Cluster
Federal
Expenditures
10.558 Child and Adult Care Food Program
10.558 COVID-19: Child and Adult Care Food Program
14.218 CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grant
14.241 Housing Opportunities for Persons with AIDS
16.575 Crime Victim Assistance
19.510 U.S. Refugee Admissions Program
19.510 COVID-19: U.S. Refugee Admissions Program
21.019 COVID-19: Coronavirus Relief Fund
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants
93.150 Projects for Assistance in Transition from Homelessness (PATH)
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance
93.356 Head Start Cluster: Head Start Disaster Recovery
93.556 Promoting Safe and Stable Families
Education and Prevention Grants to Reduce Sexual Abuse of Runaway,
93.557 Homeless and Street Youth
93.558 Temporary Assistance for Needy Families
93.566 Refugee and Entrant Assistance —State Administered Programs
93.567 Refugee and Entrant Assistance ---Voluntary Agency Programs
93.576 Refugee and Entrant Assistance Discretionary Grants
93.597 Grants to States for Access and Visitation Programs
93.598 Services to Victims of a Severe Form of Trafficking
93,600 Head Start Cluster: Head Start
93.600 COVID-19: Head Start Cluster: Head Start
93.623 Basic Center Grant
93.645 Stephanie Tubbs Jones Child Welfare Services Program
93.658 Foster Care —Title IV-E
93.659 Adoption Assistance
93.665 COVID-19: Emergency Grants to Address Mental and Substance Use Disorders
During COVID-19
93.667 Social Services Block Grant
93.669 Child Abuse and Neglect State Grants
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood
93.676 Unaccompanied Alien Children Program
93.732 Mental and Behavioral Health Education and Training Grants
93.767 Children's Health Insurance Program
93.778 Medicaid Cluster: Medical Assistance Program
93.788 State Targeted Response to the Opioid Crisis Grants
93.958 Block Grants for Community Mental Health Services
93.959 Block Grants for Prevention and Treatment of Substance Abuse
97.010 Citizenship Education and Training
Total expenditures of federal awards
56
$ 6,286,857
465,270
13,260
184,804
298,935
2,059,991
262,207
1,372,188
95,436
646,258
465,934
218,715
751,076
23,944
4,271,562
4,803,719
1,110,242
545,879
41,291
175,617
54,052,949
1,313,406
480,800
1,063,935
5,019,040
339,896
499,995
523,322
13,596
5,124
6,951,989
814,339
819,963
47,174
13,597,761
18,841,597
34,371,409
84,375
$ 162,952,055
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BE SEEN AT END OF THIS DOCUMENT.
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
CSFA No. State Financial Assistance Project
State
Expenditures
22.016 Florida Network of Children Advocacy Centers $ 77,750
48.108 Voluntary Pre -Kindergarten Education Program 1,432,760
60.074 Out -Of -Home Supports 39,099
60.114 Forensic Services and Competency Restoration Training 1,230,053
60.115 Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 352,213
60.153 Substance Abuse and Mental Health —Community Services 1,668,319
60.155 Substance Abuse and Mental Health. --Crisis Prevention and Stabilization Services 2,600,000
60.163 Centralized Receiving Systems 7,908,967
60.183 CBC—Purchase of Therapeudic Services for Children 39,521
60.190 SAMH ME State Funded Federal Excluded Services 903,926
64.006 Medical Services for Abused and Neglected Children 41,000
65.003 Public Guardianship 851,247
80.005 Children and Families in Need of Services (CINS/FINS) 4,349,464
Total expenditures of state financial assistance $ 21,492,319
57
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs
Year Ended June 30, 2022
Section I —Summary of Auditor's Results
Financial Statements
Type of auditor's report issued on whether the financial
statements audited were prepared in accordance with
U.S. GAAP:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Section 2 CFR 200.516(a)?
Identification of major federal programs:
ALN Number(s)
19.510
93.788
93.959
93.767
Yes X No
Name of Federal Program or Cluster:
U.S. Refugee Admissions Program
State Targeted Response to the Opioid Crisis Grants
Block Grants for Prevention and Treatment of Substance Abuse
Children's Health Insurance Program
Dollar threshold used to distinguish between type A
and type B programs: $ 3,000,000
Auditee qualified as low -risk auditee?
X Yes No
(Continued)
58
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Section I —Summary of Auditor's Results (Continued)
State Financial Assistance Projects
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required to be
reported in accordance with Chapter 10.650?
Identification of major projects:
CSFA Number(s)
60.163
80,005
Unmodified
Yes X No
Name of State Financial Assistance Project
Centralized Receiving Systems
Children and Families in Need of Services (CINS/FINS)
Dollar threshold used to distinguish between type A
and type B programs: $ 750,000
(Continued)
59
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Section II —Financial Statement Findings
None reported.
Section III —Findings and Questioned Costs for Federal Awards and State Financial Assistance
None reported.
Section IV —Other Reporting
There was no management letter or control deficiency letter issued for the year ended June 30, 2022, as
there were no matters required to be reported in these letters.
No Corrective Action Plan is presented because there were no findings required to be reported under the
Federal Single Audit Act or the Florida Single Audit Act.
60
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Lutheran Services Florida
Summary Schedule of Prior Year Audit Findings
YEAR ENDED JUNE 30, 2022
Identifying Number: 2021-001- Subrecipient Monitoring Risk Assessment
Finding: During their test work, RSM noted that the Organization conducted an evaluation of three
subrecipients, but the Organization did not formally document the evaluation of each of these
subrecipients as it pertains to the risk of noncompliance with federal statutes, regulations, and the terms
and conditions of each sub -award for purposes of determining appropriate subrecipient monitoring. Due
to this, a conclusion was not formally reached as to the level of required monitoring for each subrecipient
to ensure proper accountability and compliance with6program requirements and achievement of
performance goals.
LSF Comments: Lutheran Services Florida currently has 72 subrecipients of State and Federal funding
approximating $138 million dollars. We have met the subrecipient monitoring requirements for those
subrecipients for many years. The subrecipient agreements referenced above were agreements entered
into during fiscal year 2020 for a total of $1.1 million dollars in a different line of business than our current
subrecipients. Given the Covid pandemic and staffing constraints, we were unable to fully document the
evaluation of each of these subrecipients during fiscal year 2021.
Corrective Actions Taken or Planned: After our fiscal year ended June 30, 2021, LSF did document a
formalized risk assessment approach to be taken for these subrecipients. In January 2022, risk
assessment checklists were sent to the subrecipients mentioned above, Those checklists have been
returned to LSF and a full risk assessment monitoring will take place in February 2022. In addition, risk
assessments will be completed annually for these subrecipients.
Follow Up as of December 2022 — Risk Assessments checklists were sent in January 2022 to the
subrecipients for them to complete. The subrecipients returned the completed risk assessments in
February 2022. Our monitoring of their information took place in March 2022. The subrecipients were
identified as "low risk" and we completed our reviews in March and April 2022. The final subrecipient
monitoring reports are currently being processed.
Jdentifvina Number: 2021-002- Federal Funding Accountability and Transparency Act (FFATA)
Finding: Per 2 CFR 170, direct recipients of grants or cooperative agreements who make first -tier
subawards of $30,000 or more are required to register in the Federal Funding Accountability and
Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS.
LSF Comments: LSF was unaware of this requirement that has been in effect since October 2010 and
this issue was not identified in any prior audits. This requirement applies to 4 LSF subcontracts in our
Head Start program.
Corrective Actions Taken or Planned: LSF will enter the required data into the Federal Funding
Accountability and Transparency Act Subaward Reporting System (FSRS) for these 4 contracts in
February 2022 and will continue this practice of reporting the data when entering into a new contract or
amending/renewing a current contract per the FFATA requirements.
Follow Up as of December 2022 — LSF entered the subrecipient data into the FSRS in February 2022.
We also entered into new contracts with these subcontractors effective April 1, 2022. The new contract
information was entered in April 2022, within 30 days of the new contracts being executed.
61
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The responsible person is the Chief Financial Officer.
Sincerely,
F
Robert Wydra
Chief Financial Officer
DocuSign Envelope ID: 9BFE18EB-AD8A-4B7C-AAC4-F1 CED1507E50
CITY OF MIAMI, FLORIDA I SUBSTITUTED
INTER -OFFICE MEMORANDUM
TO: Arthur Noriega V DATE: April 6, 2023
City Manager
,-DS
FROM: Andrew Frey, Director A•t .F•
Department of Real Estate
& Asset Management ("DREAM")
SUBJECT: Lutheran Services Florid., Inc. Revocable
License Agreement 4/ hs Bid Waiver
REFERENCES: N/A
ENCLOSURES: N/A
The State of Florida is the owner of real property located at 2810 and 2910 NW South River Drive, Miami, FL,
and City of Miami is the owner of 2916 NW South River Drive, Miami, Floridand has an active Revocable
License Agreement ("RLA") with the current occupant, Miami Bridge Youth . d Family Services, Inc. ("Miami
Bridge"). Miami Bridge has advised that due to challenges brought on b the Covid-19 pandemic, they are
merging their organization and operations with Lutheran Services Flori. , Inc. ("LSF") to continue providing
programs and services for at -risk youth. Miami Bridge has requested e City enter into a new RLA with LSF
with terms equal to the existing agreement the City has with Miam ridge. The existing agreement between
the City and Miami Bridge is on a month -to -month basis. Accor.' gly, the City is desirous of entering into a
new agreement to have LSF continue providing those public se, ices.
Please confirm your recommendation that competitiv= negotiation methods and procedures are not
practicable or advantageous to the City pursuant to th- ode of the City of Miami, Florida, as amended due
to the unique services and expertise provided by Mia !Bridge and LSF which may be provided in connection
with their use of the Property pursuant to the term and conditions of the Agreement.
In light of the above, DREAM respectfully re'uests approval of a waiver of the formal requirements of
competitive sealed bidding methods as no •eing practicable or advantageous to the City as set forth in
Section 18-85(a) of the City Code or Ordi nces, as amended, the affirmation of these written findings, and
recommendation to the City Commissiofor ratification by a four -fifths affirmative vote.
Please sign below to : cknowledge your approval:
,-DocuSigned
Y:
�860 6C372DD42A...
Art ivuriea v
City M. ager
SUBSTITUTED
January 25, 2023
Sandy Lila - Lease Manager
Department of Real Estate and Asset Management
44l4l SW 2 Avenue, 3rd Floor
Miami, FL 33130
RE: Lease #3678
Dear Ms. Lila:
Over the past 48 years, Miami Bridge Youth and Family Services, Inc. (Miami Brid7.•) created a strong legacy in serving at -
risk youth and their families as the only 24/7/365 emergency temporary s ter serving Miami -Dade County. They
currently serve at -risk children in the shelter referenced in lease #3678 loca d at 2810, 2910, and 2916 NW South River
Drive. This lease was initially executed in August 1989. The pandemic crea d many challenges for them, and they needed
to stabilize their infrastructure to assure that vital services continue herefore, Miami Bridge is now merging their
organization and current operations with us at Lutheran Services Florida (LSF). We are one of the largest nonprofits in
Florida serving "at -risk youth" across many programs and services.
Together, we can make the greatest impact by leveraging LSF le .ership and our strong local community relationships to
continue our mission well into the future. The first step in his process has been completed with the execution of a
management services agreement between Miami Bridge a Lutheran Services Florida who will manage our CINS/FINS
youth and family programming in South Florida which incl •esthe operationof Miami Bridge's 24-hour emergency shelters
in Miami and Homestead for youth in crisis.
All other service contracts and operations are in t - process of moving under LSF's children and family's service umbrella
some of which have already been transitioned. inceour acquisition is complete, we will rebrand our name to LSF Miami
Bridge.
In accordance with the current lease req
requesting written consent of the City
relinquish the current lease and exe
needed temporary shelter services
rements stipulated in Section 35 of the RLAwith Miami Bridge, we are formally
nd TIIF to transfer the current lease and terms of this property to LSF or to
to a new lease directly with LSF. LSF Miami Bridge will continue providing critically
children atthis sitewith no change to the current use of the property.
Please know that we are comm. ted to make this transition for the vulnerablechildren and families weserve seamless, and
that we remain absolutely c. mitted to continue delivering critically needed residential, counseling, and supports ervices
to at -risk youth and their . ilies Miami. There will be no disruption in the continuity of these services and infactwe hope
to enhance servicedel iv' to families in the coming months.
Please let us know at our next steps would be to initiate this change. Contacts for this initiative will be David Sharfman
with Miami Brid: (305) 606-7301 and Justin Henry with LSF (813) 508-8915. Thank you for your guidance in this matter
and for your co' ti nued partnership in serving our at -risk youth in Miami -Dade.
Sincerely
chael Carroll
Executive Vice President Programs
Lutheran Services Florida, Inc.
Central Services
3627 W. Waters Avenue • Tampa, FL 33614 • Telephone 813-875-1408 • Fax 813-875-1302 • www.LSFnet.org
SUBSTITUTED
MIAMI BRIDGE
YOUTH & FAMILY SERVICE& INC.
January 26, 2023
Sandy Lila - Lease Manager
City of Miami
Department of Real Estate and Asset Management
444 SW 2 Avenue, 3rd Floor
Miami, FL 33130
RE: Revokable Lease (RLA) #3678 between City of Miami and Miami Bridge Youth & amily Services for
City owned property located at 2810, 2910, and 2916 NW South River Drive, Miami, F
Dear Ms. Lila:
In accordance with the lease requirements stipulated in Section 35 of RLA #367 Miami Bridge formally requests
written consent of the City of Miami and the Board of Trustees of the Internal provement Trust Fund of the State
of Florida (TIIF) to transfer the current lease and terms of this property to utheran Services Florida (LSF) or to
relinquish the current lease and execute a new lease directly with LSF.
This lease was initially executed in August 1989 and during this ti Miami Bridge has fulfilled its mission of
serving at -risk youth and their families as the only 24/7/365 emergency temporary shelter serving Miami -Dade
County. The pandemic created many challenges and to stabiliz- our infrastructure and assure our vital services
continue, we entered into a management services agreement J 1, 2022, with Lutheran Services Florida (LSF),
one of the largest nonprofits in Florida serving "at -risk youth" across many programs and services in Florida.
We plan to officially merge with LSF as soon as arrant ments are made for the proper transfer of leases and
contracts. Our new name will be "LSF Miami Bridge" . d this entity will continue to provide critically needed
temporary shelter services to children at this site with o change to the current use of the property.
All other service contracts and operations are in the process of moving under LSF's umbrella, some of which have
already been transitioned. LSF was awarde• the Florida Network South Florida Children In Need of
Services/Families In Need of Services (CINS/. S) youth and family programming contract on November 1, 2022
that includes the operation of Miami Bridg- s 24-hour emergency shelters in Miami and Homestead for youth in
crisis.
LSF Miami Bridge will continue provi mg critically needed temporary shelter services to children at this site with
no change to the current use of the p •perty. We are committed to make this transition for the vulnerable children
and families we serve seamless, d to continue under the new entity to deliver critically needed residential,
counseling, and support service to at -risk youth and their families Miami. There will be no disruption in the
continuity of these services a in fact we hope to enhance service delivery to families in the coming months.
Please let us know what ou ext steps are to initiate this change. Contacts for this initiative will be David Sharfivan
with Miami Bridge (305 606-7301 and Justin Henry with LSF (813) 508-8915. Thank you for your guidance in
this matter and for yo . continued partnership in serving our at -risk youth throughout Miami -Dade County.
Sincerely,
Steve L man
Presi. -nt, Board of Directors
Family Services and Shelter for Youth
2810 NW SOUTH RIVER DR • MIAMI, FL 33125 • (305) 635-8953 • 326 NW 3RD AVE. • HOMESTEAD, FL 33030 • (305) 246-8956
AJ
F L�
N ETWORK
Th•cnam•risTrun
United
Way
Fou nian:ation
For A Greater Miami
SUBSTITUTED
Lutheran Services Florida, Inc.
and Subsidiary
Consolidated Financial and Compliance Report
June 30, 2021
SUBSTITUTED
Contents
Independent auditor's report
Financial statements
Consolidated statements of financial position 3
Consolidated statements of activities 4
Consolidated statements of functional expenses 5-6
Consolidated statements of cash flows 7
Notes to consolidated financial statements 8-25
Supplementary information
Schedule of government grants and contracts
Schedule of substance abuse and mental health services, pro
actual expenses and revenues:
m/cost center
26
Part I: Actual funding sources and revenues 27-33
Part II: Actual expenses 34-40
Schedule of state earnings 41
Schedule of bed -day availability payments 42
Schedule of related party transaction adjustm- is 43
Independent auditor's report on internal control •ver financial reporting and on
compliance and other matters based on a udit of financial statements
performed in accordance with Governme t Auditing Standards
44-45
Independent auditor's report on compli- ce for each major federal program and state
financial assistance project and re,,+.rt on internal control over compliance required by
the Uniform Guidance and State •f Florida Chapter 10.650, Rulos of the Auditor General 46-47
Schedule of expenditures of fe. -ral awards and state financial assistance 48-52
Notes to schedule of expe . itures of federal awards and state financial assistance 53-55
Schedule of findings a . questioned costs 56-59
Corrective action
p
60
SUBSTITUTED
RS
RSM US LLP
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Lutheran Services Florida, Inc.
and its subsidiary, which comprise the consolidated statements of financial p..ition as of June 30, 2021
and 2020, the related consolidated statements of activities, functional expe es and cash flows for the
years then ended, and the related notes to the consolidated financial stat ents (collectively, the
financial statements).
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in th_ nited States of America; this includes
the design, implementation and maintenance of internal contr , relevant to the preparation and fair
presentation of financial statements that are free from mate al misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these nancial statements based on our audits. We
conducted our audits in accordance with auditing : andards generally accepted in the United States of
America and the standards applicable to financ : audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable ass nce about whether the financial statements are free from
material misstatement.
An audit involves performing procedu -s to obtain audit evidence about the amounts and disclosures in
the financial statements. The proseres selected depend on the auditor's judgment, including the
assessment of the risks of materimisstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presenta .n of the financial statements in order to design audit procedures that are
appropriate in the circumst_ ces, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal contr... Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of . counting policies used and the reasonableness of significant accounting
estimates made by m • nagement, as well as evaluating the overall presentation of the financial
statements.
We believe tha e audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opi an.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
finan _I position of Lutheran Services Florida, Inc. and its subsidiary as of June 30, 2021 and 2020, and
the anges in their net assets and their cash flows for the years then ended in accordance with
a. ounting principles generally accepted in the United States of America.
T E POWER OF BEING UNDERSTOOD
AUDIT fAX CONSULT'NG
1
SUBSTITUTED
Other Matters - Other Information
Our audit was conducted for the purpose of forming an opinion an the financial statements as a whole.
The accompanying schedule of expenditures of federal awards and state financial assistance, as requir
by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, C.. t
Principles, and Audit Requirements for Federal Awards and State of Florida Chapter 10.650, Rules . the
Auditor General, and other supplementary information is presented for purposes of additional anal is
and is 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 ecords
used to prepare the financial statements. The information has been subjected to the auditin• •rocedures
applied in the audit of the financial statements and certain additional procedures, includin• omparing and
reconciling such information directly to the underlying accounting and other records use+ o prepare the
financial statements or to the financial statements themselves, and other additional pr+ edures in
accordance with auditing standards generally accepted in the United States of Amera. In our opinion,
the information is fairly stated, in all material respects, in relation to the financial st ements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued
2022, on our consideration of Lutheran Services Florida, Inc. and its subs'
financial reporting and on our tests of its compliance with certain provisi
and grant agreements and other matters. The purpose of that report i
testing of internal control over financial reporting and compliance an
provide an opinion on the effectiveness of Lutheran Services Flori
control over financial reporting or on compliance. That report is
accordance with Government Auditing Standards in consideri
subsidiary's internal control over financial reporting and co . lance.
� $N as LbP
Orlando, Florida
February 10, 2022
2
o report dated February 10,
ary's internal control over
s of laws, regulations, contracts
olely to describe the scope of our
the results of that testing, and not to
, Inc. and its subsidiary's internal
integral part of an audit performed in
Lutheran Services Florida, Inc. and its
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Financial Position
June 30, 2021 and 2020
Assets
Current assets:
Cash and cash equivalents
Accounts receivable, net (Note 3)
Current portion of gifted facilities (Note 6)
Prepaid expenses
Total current assets
Investments (Note 2)
Assets limited as to use (Note 2)
Beneficial interest in assets held by others (Notes 2 and 5)
Gifted facilities, net of current portion (Note 6)
Property and equipment, net (Note 4)
Other assets
Total assets
Liabilities and Net Assets
Current liabilities:
Accounts payable (Note 7)
Accrued salaries and payroll related expenses
Other accrued expenses
Refundable advances
Current portion of capital lease obligations
Current portion of note payable (Note 9)
Total current liabilities
ote 10)
Capital lease obligations, net of cur nt portion (Note 10)
Note payable, net of current porti. (Note 9)
Total liabilities
Commitments and canting- cies (Notes 10, 14, 16 and 19)
Net assets (Notes 11 d 12):
Without donor res actions
With donor rest tions
Total et assets
T.tai liabilities and net assets
See otes to consolidated financial statements.
3
2021
2020
$ 20,180,768 $ 13,643,525
22,671,7. 21,499,115
1,945 28 1,901,211
1,1, ,707 1,049,757
45 ' 87,667 38,093,608
1,246,560 1,000,392
280,812 185,994
996,448 828,291
2,925,122 4,606,887
4,990,412 4,656,233
256,424 180,318
$ 56,683,445 $ 49,551,723
$ 18,664,631
6,864,645
2,152, 541
13,410,708
417,619
239,739
$ 24,154,432
5,771,843
668,431
3,639,964
391,016
222,254
41,749,883
1,051,536
2,123,719
34,847,940
1,469,156
2,368,705
44,925,138 38,685,801
3,459,296
8,299,011
2,084,811
8,781,111
11,758,307 10, 865, 922
$ 56,683,445 $ 49,551,723
Lutheran rvices Florida, Inc. and Subsidiary
Consolidated Sta - ents of Activities
Years Ended June 3 , 021 and 2020
2021 2020
Without Donor With Donor
Restrictions Restrictions
Revenues and support:
Govemment grants and contracts $ 257,724,512 $ $ 257,724,612 $ 244,881,967 $ - $ 244,881,967
In -kind contributions (Note 15) 3,205,638 3,205,638 3,832,015 - 3,832,015
Contributions 623,614 1,840,906 2,364,619 662,707 2,043,693 2,706,400
Program service fees '48,301 1,048,301 1,087,134 - 1,087,134
Other income, net 2• . 86 - 264,586 511,834 - 511,834
Investment income, net 331,7 331,771 91,959 - 91,959
Change in value of beneficial interest in
assets held by others (62,320) 220,477 168,157 (21,727) - (21,727)
Net assets released from restrictions (Note 11) 2,643,482 ( , 3,482) 3,237,656 (3,237,656)
Total revenues and support 265,689,584 (48 '0) 265,107,484 254,283,545 (1,193,963) 253,089,582
Without Donor With Donor
Total Restrictions Restrictions
Total
Expenses:
Program services 255,867,497 265,867,497 246,560,151 - 246,560,151
Supporting services 8,347,602 :,347,602 7,512,391 - 7,512,391
Total expenses 264,215,099 264, - ,099 254,072,542 254,072,542
Change in net assets 1,374,485 (482,100) 892,385 211,003 (1,193,963) (982,960)
Net assets:
Beginning 2,084,811 8,781,111 10,865,922 1,8 - 808 9,975,074 11,848,882
Ending $ 3,459,296 $ 8,299,011 $ 11,768,307 $ 2,084,811 8,781,111 $ 10,865,922
See notes to consolidated financial statements.
4
c
co
c
rn
v
Luthera Services Florida, Inc. and Subsidiary
Consolidated - tement of Functional Expenses
Year Ended June 2021
ubstance
Ab a and
Mental ' -lth Children
Services Services
Salaries $ 3,429,440 $ - 085,477
Payroll taxes and employee benefits 674,317 6, ,295
Total salaries and
related expenses 4,103,757 29,426,772
Professional fees and contract services
Subcontractor expenses
Office expenses and program supplies
Food
Assistance to individuals
Occupancy
Repairs and maintenance
Equipment costs
Insurance and taxes
Transportation and travel
Postage, panting and publication
interest
En -kind expenses (Note 15)
Other operating expenses
Total expenses before
depreciation and
amortization
Depreciation and amortization
Total expenses
630,448
141,986,538
107,228
236,173
434
197,695
27,521
34,617
67,086
42,170
Program Services
Youth and
Family
Services
Resettlement
Services
Adult
Services
Total
Program
Services
Supporting Services
General
and
Administrative Advancement
$ 17,869,949 $ 4,527,753 $ 873,740 $ 49,786,359 $ 4,526,977
4,096,219 1,043,906 228,772 12,386,509 1,009,981
21,968,168 5,571,659 1,102,512 62,172,868 5,536,958
1,484, 587 15,272 107,083 120,051 2,557,441 593,113
18,308,894 1, 13 724,743 - 162,455,588
4,072,204 438,3 : 762,281 51,456 5,421,487 130,315
1,340,710 214,276 41,547 - 1,596,533 -
4,276,501 56,994 451,144 498,209 5,282,848 -
4,077,785 785,338 1, 3,864 114,248 6,257,408 571,183
1,786,622 249,256 167, =4 6,848 2,211,154 23,313
444,812 100,082 63,40 8,917 814,915 154,109
568,822 338,666 74,862 17,596 1,027,457 92,164
776,465 744,454 58,009 3,385 1,636,930 84,399
78,975 49,745 28,449 1l,,65 235,120 36,101
103,227 - - 103,227 170,546
3,049,669 110,366 45,603 - 3,205,638 -
94,507 123,601 8,313 29,808 298,399 414,633
147,333,667 69,890,552
9,361 474,163
26,929,949 9,138,950 1,983,895 255,277,01 7,806,834
64,821 35,977 6,162 590,484 126,301
$147,343,028 $ 70,364,715 $ 26,994,770 $ 9,174,927 $ 1,990,057 $ 255,867,497 $ 7,933,
See notes to consolidated financial statements.
5
Total
Supporting Total
Services Expenses
$ 267,179 $ 4,794,156 $ 54,580,515
51,283 1,061,264 13,447,773
318,462 5,855,420 68,028,288
23,851 616,964 3,174,405
162,455,588
3,554 133,869 5,555,356
1,596,533
5,282,848
15,351 586,534 6,843,942
797 24,110 2,235,264
25,551 179,660 994,575
1,307 93,471 1,120,928
10,961 95,360 1,732,290
10,991 47,092 282,212
170,546 273,773
3,205,638
3,642 418,275 716,674
414,467 8,221,301 263,498,314
126,301 716,785
414,467 $ 8,347,602 $ 264.215,099
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Luthera Services Florida, inc. and Subsidiary
Consolidated .tement of Functional Expenses
Year Ended June 2020
Program Services Supporting Services
Substance
se and Youth and Total General Total
Menta .ealth Children Family Resettlement Program and Supporting Total
Service Services Services Services Adult Services Services Administrative Advancement Services Expenses
Salaries $ 3,254,743 23,130,271 $ 13,981,236 $ 3,462,838 $ 897,993 $ 44,727,081 $ 4,188,857 $ 186,391 $ 4,375,246 $ 49,102,329
Payroll taxes and employee benefits 626,186 341,194 3,165,541 806,228 287,627 10,926,776 840,573 49,358 889,931 11,816,707
Total salaries and
related expenses 3,880,929 29,171,'. 17,146,777 4,269,066 1,185,620 55,653,857 5,029,430 235,749 5,265,179 60,919,036
Professional fees and contract services 611,319 1,681,489 198,529 106,383 203,457 2,801,177 521,991 19,838 541,829 3,343,006
Subcontractor expenses 143,904,470 18,206,023 :7,175 702,807 580,066 163,780,541 - - - 163,780,541
Office expenses and program supplies 190,017 776,813 33 ' 94 104,666 46,444 1,450,434 118,407 932 119,339 1,569,773
Food 1,583,561 219,30. 90 - 1,802,959 - - 1,802,959
Assistance to individuals 4,031,815 73,590 550,591 313,670 4,979,666 - - 4,979,666
Occupancy 211,035 4,089,268 773,831 85,055 149,416 5,808,605 557,728 10,438 568,166 6,376,771
Repairs and maintenance 2,833 1,063,968 245,357 - 588 25,197 1,382,743 36,838 366 37,204 1,419,947
Equipment costs 29,409 218,201 109,304 28,6• • 8,963 394,522 139,909 26,711 166,620 561,142
Insurance and taxes 21,676 517,667 235,936 50,384 18,932 844,595 88,595 1,026 89,621 934,216
Transportation and travel 190,738 749,134 751,894 45.267 30,703 1,767,736 139,805 11,217 151,022 1.918,758
Postage, printing and publication 28,851 40,945 42,205 17,312 8,435 147,748 17,757 12,931 30,688 178,436
interest - 111,875 - - - 111,875 170,299 - 170,299 282,174
In -kind expenses (Note 15) 7,600 3,683,891 8,771 131.753 - 3,832,015 - - - 3,832,015
Other operating expenses 54,869 1,062,969 113,936 2,552 22,648 1,256,994 146,766 4,768 151,534 1,408,528
Total expenses before
depreciation and
amortization 149,133,546 66,989,104 20,639,107 6,650.159 2,603,551 246,015,' •7 6,967,525 323,976 7,291,501 253.306,968
Depreciation and amortization 8,666 461,571 68,285 - 6,162 544,684 220,890 - 220,890 765,574
Total expenses $ 149,142,212 $ 67,450.675 $ 20.707.392 $ 6.650.159 $ 2,609,713 $ 246,560,151 $ 7,1.' 415 $ 323,976 $ 7,512,391 $ 254.072,542
See notes to consolidated financial statements.
6
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Years Ended June 30, 2021 and 2020
SUBSTITUTED
2021 020
Cash flows from operating activities;
Change in net assets $ 892,385 (982,960)
Adjustments to reconcile change in net assets to net cash
provided by operating activities:
Depreciation and amortization 716,7: 765,574
Loss on sale/disposal of property and equipment - 986,084
Net realized and unrealized gains on investments and assets
limited as to use 63,958) (21,050)
Change in value of beneficial interest in assets held by others (168,157) 21,727
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (1,172,649) (355,533)
Prepaid expenses (139,950) (115,207)
Gifted facilities 1,637,548 392,156
Other assets (76,106) (587)
Increase (decrease) in:
Accounts payable (5,489,801) 4,312,712
Accrued salaries and payroll related expenses 1,092,802 633,897
Other accrued expenses 1,484,110 (369,705)
Refundable advances 9,770,744 (5,208,123)
Net cash provided by operating activities 8,283,753 58,985
Cash flows from investing activities:
Purchases of investments and assets limited as t• use (223,659) (553,756)
Proceeds from the sale of investments 146,631 829,592
Purchases of property and equipment (1,050,964) (359,409)
Proceeds from the sale of property and eq '•ment 34,400
Net cash used in investing acti ' ies (1,127,992) (49,173)
Cash flows from financing activities:
Net payments on line of credit
Principal payments on capital lea obligations (391,017)
Repayments of note payable (227,501)
Net cash used in fin- cing activities
Net increase (decr ase) in cash and cash equivalents
Cash and cash equivalen
Beginning 13,643,525 14,174,720
(15,842)
(366,124)
(159,041)
(618,518) (541,007)
6,537,243 (531,195)
Ending $ 20,180,768 $ 13,643,525
Supplemental • closure of cash flow information:
Cash paid • ring the year for interest $ 273,773 $ 282,174
Supplem ntal schedule of noncash investing and financing activities:
Conversion of line of credit to note payable $ $ 2,750,000
e notes to consolidated financial statements.
7
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies
Nature of activities: Lutheran Services Florida, Inc. (LSF) was organized on July 1, 1982, as a onprofit
organization to provide various social ministries throughout the State of Florida, LSF's progra s are
funded by federal, state, and local governmental grants and contracts, various program ser ' e fees,
contributions, church grants and other sources.
LSF is the sole member of Lutheran Nonprofit Management Services, LLC dlbla LSF ealth Systems
(LSF Health), which was organized on August 13, 2010, to govern and advise LSF' anaging entity
contract over substance abuse and mental health services provided in the Northe- t region of Florida
effective July 1, 2012,
The principal social services provided by Lutheran Services Florida, Inc. an. Subsidiary include services
to children, troubled youth and their families, refugees, the unemployed, i apacitated adults and victims
of disasters through the following programs:
Substance Abuse and Mental Health Services: Provides substa ' e abuse and mental health services
to adults and children in 23 counties in Northeast Florida.
Children Services: Provides preschool care for disadvantag
children in licensed day care homes.
children in licensed facilities and meals to
Youth and Family Services: Provides residential, cou .eling and case management services to teens
and their families.
Resettlement Services: Provides job training, co nseling, financial assistance and placement to new
entrants to the United States.
Adult Services: Provides guardianship an
incapacitated and disabled persons. Also
and health care treatment to low-incom
are management programs to elderly, mentally
rovides temporary and permanent housing for the homeless
IV -infected individuals.
The following Lutheran judicatories e the founding members of the Organization: the Florida -Bahamas
Synod of the Evangelical Luthera Church in America and the Florida -Georgia District of the Lutheran
Church -Missouri Synod.
A summary of the Organize .n's significant accounting policies follows:
Principles of consolid - ion: The consolidated financial statements include the accounts of LSF and
LSF Health (collectiv , the Organization). All significant intercompany transactions have been
eliminated in conso ation.
Basis of acco ting: The accompanying consolidated financial statements have been prepared on the
accrual basis accounting.
Basis of esentation: A not -for -profit organization is required to report information regarding its financial
position =nd activities according to two classes of net assets: without donor restrictions and with donor
restri ons. Accordingly, net assets of the Organization and changes therein are classified and reported
as fows:
et assets without donor restrictions: Net assets that are not subject to donor -imposed stipulations but
may be designated for specific purposes by action of the Board of Directors.
8
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Net assets with donor restrictions: Net assets subject to donor -imposed stipulations that ma or will be
met either by actions of the Organization, passage of time, or permanently maintained by the
Organization. When a restriction expires, net assets with donor restrictions are reclassified • net assets
without donor restrictions and reported in the consolidated statements of activities as net . sets released
from restrictions.
Use of estimates: The preparation of consolidated financial statements in accorda e with generally
accepted accounting principles requires management to make estimates and ass ptions that affect the
reported amounts of assets and liabilities, and the disclosure of contingent ass- and liabilities at the
date of the consolidated financial statements and the reported amounts of rev- nues and expenses during
the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents: Cash and cash equivalents includes all h'•hly liquid fixed income
instruments purchased with original maturities of three months or less
Concentrations of credit risk: The Organization's financial instr
concentrations of credit risk include cash and cash equivalents
related accounts receivable. Cash and cash equivalents inclu
financial institutions. Such accounts may at times exceed fe
not experienced any losses on such accounts. The Orga
includes concentrations primarily from federal and state
revenues from federal and state programs could signi
reduction in the program services offered by the Or
any such changes in the near -term.
ents that are exposed to
d government grants and contracts and
accounts placed with federally insured
erally insured limits. The Organization has
ation's operating support and revenues
rograms. Changes in operating support and
cantly impact the Organization, including a
nization; however, management does not anticipate
Accounts receivable: Accounts receivable u-der grants and funding contracts and program service fees
are due in less than one year. Managemen •elieves accounts receivable under grants and funding
contracts are fully collectible and has not ovided an allowance for doubtful accounts. Accounts
receivable for program service fees are -tated at unpaid balances, less an allowance for doubtful
accounts. The Organization provides •r losses on accounts receivable based on historical experience
and any other circumstances which ay affect the ability of payors to meet their obligations. It is the
Organization's policy to charge o ncollectible accounts when management determines the accounts
receivable will not be collected.
Gifted facilities: The Orga zation accounts for gifted facilities as contributions with donor restrictions in
the period in which the rito use the asset is acquired, at the fair value of the benefit expected to be
received over the expe -d term of use by the Organization and is released from restrictions when used.
A gifted facilities asse is recorded for any future benefit expected to be recognized and is amortized to
rent expense as th- • rganization uses the facilities over the term of the applicable lease.
Investments a investment income, net: Investments are reported at fair value. Investment income,
net, reported ' the accompanying consolidated statements of activities, includes realized and unrealized
gains and I..ses and interest and dividend income, net of investment expenses, as increases or
decrease in net assets without donor restrictions.
Asse - limited as to use: Assets limited as to use include investments held by trustees to fund the
Su • .lemental Executive Retirement Plan (SERF) as more fully described in Note 13.
9
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Property and equipment: Property and equipment are recorded at cost, if purchased or at esti+ ated fair
value at the date of receipt if acquired by gift, and those in excess of $5,000 are capitalized. D preciation
expense related to property and equipment is computed using the straight-line method over e estimated
useful lives of the related assets. Leasehold improvements are amortized over the shorter .f the
remaining lease term or the useful life of the asset. Maintenance and repairs are charge% to operations
when incurred. Betterments and renewals are capitalized. When property and equipm- nt are sold or
otherwise disposed of, the asset account and the related accumulated depreciation ccount are relieved,
and any gain or loss included in operations.
Property acquired with governmental funds is considered to be owned by the
the program for which it was purchased or in future authorized programs; h
as the ownership of any proceeds therefrom is subject to applicable regul
rganization while used in
ever, its disposition as well
ions.
impairment of long-lived assets: The carrying value of property anquipment is reviewed for
impairment whenever events or changes in circumstances indicate ch value may not be recoverable.
Recoverability of assets or asset groups to be held and used is m sured by a comparison of the carrying
amount of an asset or asset group to future net cash flows expe- ed to be generated by the asset or
asset group. If such assets or asset groups are considered to .e impaired, the impairment to be
recognized is measured by the amount by which the carryins amount of the assets exceeds the fair value
of the assets or asset group. Assets or asset groups to b . isposed of are reported at the lower of the
carrying amount or fair value less cost to sell. No impairent of the Organization's long-lived assets or
asset groups have been recognized during the years : ded June 30, 2021 and 2020.
Contributions and donor -imposed restrictions• nconditional promises to give are recognized as
contributions in the period received at their fair :lue. Conditional contributions or promises to give are
not recognized until they become uncondition that is, when the conditions on which they depend are
substantially met. Contributions other than sh are recorded at their estimated fair value on the date
received.
Unconditional contributions received e recorded as net assets without donor restrictions or net assets
with donor restrictions support depe' ding on the existence or nature of any donor -imposed restrictions.
Contributions that are restricted b the donor are reported as increases in net assets without donor
restrictions if the restrictions ex.' e or are otherwise satisfied in the fiscal year in which the contributions
are recognized. When a dono imposed restriction expires, that is, when a stipulated time restriction ends
or purpose restriction is acct plished, net assets with donor restrictions are reclassified into net assets
without donor restrictions d are reported in the accompanying consolidated statements of activities as
net assets released fro + restrictions.
Donated materials e reflected in the accompanying consolidated financial statements at their estimated
fair value at date . receipt. Donated services are recognized and recorded at their estimated fair value
only to the exte they create or enhance nonfinancial assets or require specialized skills, are provided by
individuals po- essing those skills, and would typically need to be purchased if not provided by donation.
The Organi :lion records donated goods and services as in -kind support and expenses in the
accompa ling consolidated statements of activities and consolidated statements of functional expenses.
Gove ment grants and contracts: Government grants and contracts are considered exchange
tran :-ctions if each party receives and sacrifices commensurate value. Funds from these exchange
tr- sections are not considered contributions and are deemed to be earned and reported as revenue
hen such funds have been expended towards the designated purpose. Funds received in advance and
not yet earned are recorded as refundable advances.
10
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1, Nature of Activities and Significant Accounting Policies (Continued)
Government grants and contracts not considered exchange transactions are recognized as rev- ue when
the funds are utilized by the Organization to carry out the activity stipulated by the grant or co ract. The
grants and contracts can be terminated by the grantor or refunding can be required under c= ain
circumstances coupled with other performance and/or control barriers. For these reasons ese grant
and contract agreements are considered conditional. Accordingly, amounts received, b not recognized
as revenue, are classified in the consolidated statements of financial position as refun' able advances.
Program service fees: Revenue from program service fees is recognized as the--rogram services are
provided.
Functional expense allocations: The costs of providing the various progrs and supporting services
have been summarized on a functional basis in the consolidated stateme s of activities and in the
consolidated statements of functional expenses. Accordingly, certain co s have been allocated among
the various programs and supporting services benefited. Salaries and elated payroll expenses are
allocated among functional categories based on the estimated prop ion of time spent to each function.
All other expenses are allocated based on management's estimat of the relative functional activity.
Income taxes: The Organization is exempt from federal inco ' e taxes under Section 501(c)(3) of the
Internal Revenue Code and from state income taxes under miler provisions of the Florida Statutes. LSF
is the sole member of LSF Health, which is considered a • sregarded entity for federal and state income
tax purposes. Therefore, no provision for income taxes -s been included in the accompanying
consolidated financial statements.
The Organization follows accounting standards re ting to accounting for uncertainty in income taxes.
Management assessed whether there were any ncertain tax positions which may give rise to income tax
liabilities and determined that there were no s .ch matters requiring recognition in the accompanying
consolidated financial statements. Generall , the Organization is no longer subject to U.S. federal or state
income tax examinations by tax authoritie for years before June 30, 2018.
Fair value measurements: The Orgization measures its financial assets and liabilities at fair value
using a three-tier hierarchy, which p oritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted • oted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest , iority to unobservable inputs (Level 3 measurements).
The three levels of the fair v- ue hierarchy are described below:
Level 1: Valuation ba ' d on unadjusted quoted market prices in active markets for identical assets or
liabilities.
Level 2: Valuatibased on observable quoted prices for similar assets and liabilities in active markets.
Level 3: Val tion based on inputs that are unobservable and are supported by little or no market
a• ivity, therefore requiring management's best estimate of what market participants would use
s fair value.
A fin- -cial instrument's level within the fair value hierarchy is based on the lowest level of any input that is
sig ' [cant to the fair value measurement.
11
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
The following methods and assumptions were used to estimate the fair value of financial instru -nts:
Level 1: The Organization's Level 1 investments include money market funds, fixed incom: and equity
securities and real asset funds.
Level 2: The Organization's Level 2 investments include the beneficial interest in ass- s held by others
and is valued based on information provided by the Community Foundation (see Note 5)
which is primarily derived from or corroborated by observable market da = as it relates to the
Community Foundations' underlying investments.
Level 3: The Organization's Level 3 investments include the beneficial interest in the Zerbst perpetual
trust and is valued based on the value of the underlying investm is held in the trust.
Reclassifications: Certain reclassifications have been made to the 20 ' consolidated financial
statements in order to conform to the 2021 presentation. These recla ifications did not result in a change
in previously reported change in net assets.
Recent accounting pronouncements: Certain accounting pronouncements which have been recently
issued by the Financial Accounting Standards Board (FASB) , d are relevant to the Organization are as
fol lows:
In February 2016, the FASB issued its new lease accou ing guidance in Accounting Standards Update
(ASU) 2016-02, Leases (Topic 842). Under the new g dance, lessees will be required to recognize the
following for all leases (with the exception of shark = leases) at the commencement date: (1) A lease
liability, which is a lessee's obligation to make lea - payments arising from a lease, measured on a
discounted basis; and (2) A right -of -use asset, ich is an asset that represents the lessee's right to use,
or control the use of, a specified asset for the ase term. Lessees will no longer be provided with a
source of off -balance sheet financing. Less-. s must apply a modified retrospective transition approach
for leases existing at, or entered into after e beginning of the earliest comparative period presented in
the consolidated financial statements. N . public entities should apply the amendments for fiscal years
beginning after December 15, 2021. T e Organization is currently evaluating the impact this ASU will
have on its consolidated financial st- ements.
In September 2020, the FASB
Disclosure by Not -for -Profit E
transparency in the reportin
profit entities. The ASU wi
as a separate line item i
other financial assets.
nonfinancial assets
amendments in th
periods beginni
have on its co
ued ASU 2020-07, Not -for -Profit Entities (Topic 958): Presentation and
ties for Contributed Nonfinancial Assets. This ASU is intended to improve
of contributed nonfinancial assets, also known as gifts -in -kind, for not -for -
require a not -for -profit organization to present contributed nonfinancial assets
the consolidated statements of activities, apart from contributions of cash or
he ASU will also require enhanced disclosure, including disaggregation of
ognized by category and qualitative information about each category. The
ASU will be applied on a retrospective basis and are effective for annual reporting
after June 15, 2021. The Organization is currently evaluating the impact this ASU will
olidated financial statements.
The FAS as issued certain new or modifications to, or interpretations of, existing accounting guidance
in additie to the ASU's described above. The Organization has considered the new pronouncements and
does .t believe that any other new or modified guidance will have a material impact on the
Org ization's reported financial position or activities in the near term.
ubsequent events: Management has evaluated events subsequent to the consolidated statements of
financial position date for potential recognition and disclosure through February 10, 2022, which is the
date these consolidated financial statements were available to be issued.
12
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments
The following table summarizes major categories of the Organization's assets measured at fair .lue on a
recurring basis as of June 30, 2021 and 2020:
2021
Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ 26,866 $ - $ - $ 26,866
Equity securities:
Emerging market funds 72,612 - 72,612
Small/mid cap funds 56,151 56,151
Preferred stock 24,584 24,584
Index funds 23,820 - 23,820
Convertible securities 25,499 - 25,499
Large growth funds 157,125 157,125
Large cap funds 159,967 - 159,967
Internationally developed funds 226,688 226,688
Fixed income securities:
Index bond funds 79,361 79,361
Intermediate duration bond funds 86,002 - 86,002
Corporate bond funds 112,842 - 112,842
Government bond funds 132,44, - - 132,442
Real asset funds 62,.d1 - 62,601
Total investments 1,24r.,560 - 1,246,560
Assets limited as to use:
Money market funds 14,020 - 14,020
Equity securities:
Large blend funds 80,671 - 80,671
Emerging market funds 64,189 64,189
Index funds 17,727 17,727
Fixed income securities:
Index bond funds 15,764 15,764
Short duration funds 27,359 - 27,359
Global bond funds 31,348 31,348
Intermediate duration b. d funds 29,734 29,734
Total assets li ' ed as to use 280,812 280,812
Beneficial interest in:
Assets held by oth= s - 178,377 178,377
Perpetual trust - 818,071 818,071
Total-.eneficial interest in
sets held by others
178,377 818,071 996,448
$ 1,527,372 $ 178,377 $ 818,071 $ 2,523,820
13
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments (Continued)
2020
Level 1 Level Level 3 Total
Investments:
Money market funds $ 32,885 $ $ 32,885
Equity securities:
Emerging market funds 40,719 40,719
Small/mid cap funds 32,847 - - 32,847
Preferred stock 19,017 19,017
Index funds 20,614 20,614
Convertible securities 21,780 21,780
Large growth funds 165,540 165,540
Large cap funds 130,575 130,575
Internationally developed funds 167,456 - 167,456
Fixed income securities:
High yield bond funds 6,115 6,115
Index bond funds 55,729 - 55,729
Intermediate duration bond funds 67,563 - 67,563
Corporate bond funds 83,319 - 83,319
Government bond funds 108,251 - 108,251
Real asset funds 47,982 47,982
Total investments 1,000,39 1,000,392
Assets limited as to use:
Money market funds :,010 8,010
Equity securities:
Large blend funds 54,985 - 54,985
Emerging market funds 43,084 - 43,084
Index funds 10,177 10,177
Fixed income securities:
Index bond funds 10,495 - 10,495
Short duration funds 18,619 - 18,619
Global bond funds 20,610 - 20,610
Intermediate duration bond f. nds 20,014 20,014
Total assets limited =s to use 185,994 185,994
Beneficial interest in:
Assets held by others 140,016 - 140,016
Perpetual trust - - 688,275 688,275
Total ben icial interest in
asset- held by others - 140,016 688,275 828,291
$ 1,186,386 $ 140,016 $ 688,275 $ 2,014,677
14
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments (Continued)
The Organization's investments in equity and fixed income securities are not concentrated in a ngle
entity or in a few entities, nor are there any specific industry concentrations.
The Board of Directors designates a portion of the Organization's cumulative investment return for
support of current operations; the remainder is retained to support operations of future -ars and to offset
potential market declines. The fixed amount determined by the Board of Directors at tie beginning of
each fiscal year as part of the Organization's budgeting process considers the Org- ization's long and
short-term needs, present and anticipated financial requirements, and expected t. al return on its
investments (see Note 12).
Note 3. Accounts Receivable
Accounts receivable consists of the following at June 30, 2021 and 202
Managing entity contract
Other grants and funding sources
Program fees and other, net of allowance for doubtful ac aunts
of $256,388 and $24,555 in 2021 and 2020, respecti -ly
Note 4. Property and Equipment
Property and equipment consists of the follo ng at June 30, 2021 and 2020:
2021
2020
$ 11,752,101 $ 11,164,453
10,338,789 9,508,815
580,874 825,847
$ 22,671,764 $ 21,499,115
Land
Buildings and improvements
Vehicles
Leasehold improvement
Computer equipment d software
Furniture and equip► ent
Less accumula -d depreciation and
amortizatio
Estimated
Useful Lives
(Years)
2021 2020
N/A
35
3-5
5
3-5
2-5
$ 1,610,899
3,672,521
1,077,407
4,793,558
780,139
1,538,929
$ 1,610,899
3,355,848
1,073,960
4,181,554
774,589
1,445,640
13,473,453 12,442,490
(8,483,041) (7,786,257)
$ 4,990,412 $ 4,656,233
Depre -tion and amortization expense for the years ended June 30, 2021 and 2020 was $716,785 and
$765 74, respectively.
15
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 5. Beneficial Interest in Assets Held by Others
The Organization has established endowments at Community Foundation of Broward, Inc. and
Community Foundation of Tampa Bay, Inc. (the Community Foundations) and named itself a he
beneficiary. Under the terms of the endowment agreements, the Community Foundation of 'roward, Inc.
has variance power over the funds and the Community Foundation of Tampa Bay, Inc. d• 's not have
variance power over the funds. During 2016, the Organization was notified of its interes s the sole
beneficiary of the Charles A. Zerbst Charitable Trust (Zerbst Trust), a perpetual trust = tablished for LSF's
benefit and administrated by an independent trustee. Investment income (losses), t of distributions and
fees on beneficial interest in assets held by others are recorded as change in val - of beneficial interest
in assets held by others in the accompanying consolidated statements of activit' s.
The fair value of the Organization's beneficial interest in assets held by oth s is as follows:
Beneficial interest in assets held by others:
Community Foundation of Broward, Inc.
Community Foundation of Tampa Bay, Inc.
Beneficial interest in perpetual trust:
Charles A. Zerbst Trust
Note 6. Gifted Facilities
Gifted facilities represents the present value of e excess of the aggregate fair rental value of building
[eases over below market rent payments du- nder lease agreements executed in connection with the
Organization's Head Start programs opera -d in Pinellas, Duval and Palm Beach counties. Gifted
facilities are recorded as contributions wi donor restrictions and are released from restrictions as rent
expense is recorded. Activity of the gi - d facilities during the years ended June 30, 2021 and 2020, is
summarized as follows:
2021
2020
170,739 $ 133,888
7,638 6,128
178,377 140,016
818,071 688,275
$ 996,448 $ 828,291
Balance at June 30, 2019
Contributions
Rent expense
Balance at June 3', 2020
Contributions
Rent expen
Balance at one 30, 2021
Less cu ent portion of gifted
fact ' ies
Gi d facilities, less current
ortion
Pinellas Duval
Properties Properties
$ 1,131,768 $ 211,301
640,517 741,651
(451,458) (147,057)
1,320,827 805,895
24,915 344,895
(484,606) (320,693)
861,136 830,097
(469,046) (331,777)
Palm Beach
Properties
$ 5,557,185
(1,175,809)
4,381, 376
84,701
(1,286,760)
3,179,317
(1,144,605)
Total
$ 6,900,254
1,382,168
(1,774,324)
6,508,098
454,511
(2,092,059)
4,870,550
(1,945,428)
$ 392,090 $ 498,320
16
$ 2,034,712
$ 2,925,122
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 7. Accounts Payable
Accounts payable consists of the following at June 30, 2021 and 2020:
2021 2020
Managing entity contract $ 15,017,685
Trade 3,646,9
$ 18,664
Note B. Line of Credit
The Organization maintains a revolving line of credit with the Lutheran C
Synod, an unaffiliated nonprofit organization, with a maximum availabili
payable monthly at the lenders cost of funds, which is the weighted a
3% (4.375% at June 30, 2021). The line of credit is secured by the
balance and requires the Organization to meet certain covenants
in compliance with these restrictive covenants. There was no o
June 30, 2021 and 2020. The line of credit matures on Marc
Note 9. Note Payable
In September 2019, the Organization entered into a
Extension Fund -Missouri Synod in the amount of $
2029. The proceeds from the promissory note w
credit. The promissory note is secured by the
the Organization to meet certain covenants.
payments of $28,902, with a fixed interest r
October 1, 2024, the interest rate will be
maturity. The monthly principal and int
balance on the note payable at June
$ 22,172,160
1,982,272
31 $ 24,154,432
rch Extension Fund -Missouri
of $7,250,000. Interest is
rage annual rate of interest plus
rganization's accounts receivable
t June 30, 2021, the Organization was
standing balance on the line of credit at
2022.
-year promissory note with Lutheran Church
50,000, with a maturity date of September 20,
used to pay off the remaining balance on the line of
ganization's accounts receivable balance and requires
e promissory note calls for monthly principal and interest
e of 4.75% through September 30, 2024. Beginning on
justed based on the lenders cost of funds plus 3% through
est payment will be adjusted accordingly. The outstanding
2021 and 2020, was $2,363,458 and $2,590,959, respectively.
Maturities of the note payable at ne 30, 2021, are as follows:
Years ending June 30:
2022
2023
2024
2025
2026
2027
Less cu ent portion
17
$ 239,739
251,377
263,581
276,378
289,795
1,042,588
2,363,458
(239,739)
$ 2,123,719
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 10. Leases
Capital leases: The Organization is obligated under capital lease agreements for certain faciliti- which
expire at various dates through 2027. Upon expiration of these leases, title to the properties
automatically transfer to LSF. At June 30, 2021, the gross amount of facilities and related a• umulated
amortization recorded under capital leases was $4,005,115 and $2,535,959, respectively It June 30,
2020, the gross amount of facilities and related accumulated amortization recorded und- r capital leases
was $4,005,115 and $2,144,983, respectively. Amortization of assets held under capi :I leases is
included in depreciation and amortization expense. Future minimum payments und capital lease
obligations at June 30, 2021, are as follows:
Years ending June 30:
2022 $ 504,862
2023 441,982
2024 173,400
2025 173,400
2026 173,400
Thereafter 260,100
Total minimum capital lease payments 1,727,144
Less amount representing interest (257,989)
Present value of capital lease payments 1,469,155
Less current portion of capital lease obligations (417,619)
Capital lease obligations, less current port $ 1,051,536
Operating leases: The Organization leases th= ajority of its office space and office equipment under
operating lease agreements which expire at various dates through 2027. Security deposits related to such
leases are included in other assets in the a ompanying consolidated statements of financial position.
Rental expense on operating leases was pproximately $2,940,000 in fiscal 2021 and $2,533,000 in fiscal
2020, The majority of the Organization' operating leases include 30-day cancellation provisions in the
event the Organization loses its fundi
Future minimum lease payments nder non -cancellable operating leases (with initial or remaining terms
in excess of one year) as of Ju 30, 2021, are as follows:
Years ending June 30:
2022 $ 2,492,843
2023 2,166,229
2024 1,451,021
2025 904,933
2026 784,553
2027 112,055
$ 7,911,634
18
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 11. Net Assets
Net assets without donor restrictions are available for the following purposes as of June 30, 202 and
2020:
Undesignated
Board designated for specified purposes
2021 2020
$ 2,212,73' $ 1,084,419
1,246, .0 1,000,392
$ 34
The Board of Directors of LSF established a board designated endowment
operations which was $1,246,560 and $1,000,392 as of June 30, 2021 a
Note 12).
296
$
2 084 811
be used to support
2020, respectively (see
Net assets with donor restrictions are restricted for the following purposes as of June 30, 2021 and 2020:
2021 2020
Restricted for specified purposes:
Facilities and equipment subject to time restrictions $ 2,074,908 $ 1,290,824
Gifted facilities 4,870,550 6,508,098
Employee tuition reimbursement 22,668 28,893
Other 334,437 177,326
7,302,563 8,005,141
Restricted in perpetuity — endowment:
Broward County program endowment 170,739 138,526
Tampa Bay program endowment 7,638 10,000
178,377 148,526
Restricted in perpetuity — beneficial i erest:
Zerbst Trust
818,071 627,444
$ 8,299,011 $ 8,781,111
Net assets with donor restric ons that were released from donor restrictions by incurring expenses
satisfying the restricted pu .oses or by the occurrence of other events specified by donors are as follows:
2021 2020
Facilities and eq '.ment subject to time restrictions $ 266,879 $ 1,225,573
Rent expense •m gifted facilities 2,092,058 1,945,767
Employee to on reimbursement 6,225 10,106
Other 178,320 56,210
$ 2,543,482 $ 3,237,656
19
SUBSTITUTED
Lutheran Services Florida, Inc, and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds
LSF has a board -designated endowment fund included in net assets without donor restrictions ich was
established by the Board of Directors for the purpose of supporting the Organization's progra r . LSF
also has two donor restricted endowment funds which are included in net assets with donor strictions
and consist of funds established with the Community Foundation of Broward, Inc. and the ' ommunity
Foundation of Tampa Bay, Inc. The earnings on the donor restricted endowment funds - e to be used to
support program operations and are recorded as net assets with donor restrictions un ' appropriated to
LSF.
Interpretation of relevant law: The Board of Directors has interpreted the wis s of donors and state
law as requiring the preservation of the fair value of the original gift as of the • date of the donor -
restricted endowment funds absent explicit donor stipulations to the contrar As a result of this
interpretation, the Organization classifies as net assets with donor restrictions: (a) the original value of
gifts donated to the permanent endowment, (b) the original value of sub-equent gifts to the endowment,
and (c) accumulations to the endowment made in accordance with th- direction of the applicable donor
gift instrument at the time the accumulation is added to the fund.
Investment return objectives, risk parameters and strategie
investment and spending policies, approved by the Board of
to provide a predictable stream of funding to programs supp
preserving the purchasing power of those endowments ov
endowments should be managed as a long-term goal d
to undue risk, as defined herein. Whereas it is unders
of the securities markets, the greatest concern sho
consistency of total portfolio returns. Recognizing
variations in the account performance, the Org
benchmark return of a target portfolio consisti
equity securities and 10% real assets for th
funds held the Community Foundations a
: The Organization has adopted
ectors, for endowment assets that attempt
rted by its endowment funds while also
r the long-term. The policies stipulate that the
igned to maximize the returns without exposure
od that fluctuating rates of return are characteristic
be long-term appreciation of the assets and
at short-term market fluctuations may cause
zation will pursue a strategy seeking to exceed a
of approximately 35% fixed income securities, 55%
general endowment fund. Earnings only on the endowment
used to support programs in those counties.
Spending policy: The Organization s a policy limiting the spending of its permanent endowment funds
to interest income that may be with• awn for use in the county where the endowments are based.
Endowment net asset compositi
n by type of fund are as follows at June 30, 2021 and 2020:
Board-designat . • endowment
Broward Cou- y program endowment
Tampa Ba •rogram endowment
2021
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
$ 1,246,560 $
$ 1,246,560
170,739 170,739
7,638 7,638
$ 1,246,560 $ 178,377 $ 1,424,937
20
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds (Continued)
SUBSTITUTED
2020
Without With Total
Donor Donor ndowment
Restrictions Restrictions Net Assets
Board -designated endowment $ 1,000,392 $ $ 1,000,392
Broward County program endowment 138 26 138,526
Tampa Bay program endowment - 0,000 10,000
$ 1,000,392 $ 48,526 $ 1,148,918
Changes in endowment net assets for the years ended June 30, 2021 a 2020, are as follows:
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
Balances at June 30, 2019 $ 55,432 $ 148,526 $ 1,103,958
Board designations 7,288 - 7,288
Investment return, net 37,672 - 37,672
Balances at June 30, 2020 1,000,392 148,526 1,148,918
Board designations 7,670 - 7,670
Investment return, net 238,498 37,078 275,576
Appropriations - (7,227) (7,227)
Balances at June 30, 2021 $ 1,246,560 $ 178,377 $ 1,424,937
Note 13. Retirement Plans
The Organization sponsors a 403 multiple employer retirement plan (the 403(b) Plan) administered by
One America. Under the 403(b) an, employees are eligible to participate once they attain the age of 21.
The Organization may elect to ake matching and non -elective contributions to the 403(b) Plan.
Participants' rights to emplo -r contributions vest after three years of service.
The Organization also s..nsors a 457(b) multiple employer plan (the 457(b) Plan) administered by One
America. Under the 45 (b) Plan, eligible employees may participate upon their date of hire. The
Organization may el= t to contribute matching and non -elective contributions to the 457(b) Plan.
Participants' rights o employer contributions vest after one year of service.
Employer cont
utions to the 403(b) and 457(b) plans for the years ended June 30, 2021 and 2020, were
approximate $1,065,000 and $705,000, respectively.
21
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 13. Retirement Plans (Continued)
The Organization also sponsors a 457(f) employee benefit plan or SERP, which provides a key ='ecutive
(the Participant) deferred compensation benefits outside of the two plans described above. Be• -fits under
the SERP accumulate from annual contributions and earnings thereon. Prior to June 30, 20 ., the SERP
was terminated for all key executives other than the Chief Executive Officer. The remainin. plan
participant's rights to employer contributions vest on February 7, 2023. For the years en• -d June 30,
2021 and 2020, the Organization incurred expenses under the SERP of approximately .95,000 and
$210,000, respectively. At June 30, 2021 and 2020, the Organization has $280,812 . d $185,994,
respectively, of assets limited as to use for payment of its obligation under the SE' ' which is included in
accrued salaries and payroll related expenses in the accompanying consolidate. tatements of financial
position.
Note 14. Contingencies
The Organization routinely enters into grant agreements and contract 'th governmental agencies that
provide for reimbursement of the eligible direct and indirect costs of • oviding certain of the
Organization's program services. The grants and contracts are suect to audit or review and retroactive
adjustment based on a final determination by the grantor of eligi► e reimbursable expenditures. The effect
of such adjustments, if any, cannot be determined at this time - d no provision has been made for any
such adjustments in the accompanying consolidated financi- statements.
The Organization is involved in legal actions arising durir• the ordinary course of its operations. The
potential loss under these claims is not determinable - this time. Management believes any potential loss
would be expected to fall within the Organization's i .urance policy limits. The only anticipated financial
exposure would be payment of the insurance ded tible, a nominal amount. In the opinion of
management, no material liability exists with res►-ct to these claims.
The Organization sponsors a welfare benefi .Ian (the Plan) which provides medical and prescription drug
benefits to its employees. Under the terms .f the Plan, the Organization is responsible and self -insured
for the first $175,000 of individual covertclaims and is subject to a maximum annual aggregate stop
loss limit which was $9,000,883 for th ear ended June 30, 2021. Health insurance expense is based
upon premiums paid to the insurer, ..timated total cost of claims to be paid by the Organization that fall
within the deductible limits describ-above, and the administrative costs of the Plan. The Organization
outsources administration of clais to a third -party administrator (TPA). Under the terms of the TPA
agreement, the TPA provides anagement with an estimate of incurred but unreported claims (IBNR)
and the future development • covered claims using an actuarially -determined reserve methodology
based on current and hist. cal claims development trends, which are recorded in payroll taxes and
employee benefits in the accompanying consolidated statements of functional expenses. As of June 30,
2021 and 2020, accru=: estimated health insurance expense under the Plan was approximately
$1,678,000 and $1, . ,000, respectively, and is included in accrued salaries and payroll related
expenses in the a ompanying consolidated statements of financial position. Estimated health insurance
expense was ap' oximately $6,353,000 and $5,901,000, respectively, for the years then ended, which is
included in pa oll taxes and employee benefits in both program services and supporting services in the
accompanyi • consolidated statements of activities. Actual claims expense may differ from these
estimates. , t June 30, 2021 and 2020, the Organization had approximately $1,799,000 and $1,322,000,
respecti -ly, of funds included in cash and cash equivalents to pay outstanding claims.
22
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 14. Contingencies (Continued)
On January 30, 2020, the World Health Organization declared the coronavirus outbreak (COVID 9) a
"Public Health Emergency of International Concern" and on March 11, 2020, declared COVID- 9 a
pandemic. Actions taken around the world to help mitigate the spread of the coronavirus inc de
restrictions on travel, quarantine in certain areas, forced closures and other restrictions li ' ing public
access for certain types of businesses.
The extent to which COVID-19 impacts the operations of the Organization in the fut , e will depend on
future developments, which are highly uncertain and cannot be predicted with con .ence. It is reasonably
possible that estimates made in the accompanying consolidated financial state nts may be adversely
impacted in the near term as a result of these conditions. Management beiiev=- that cash available,
together with its available net assets, will be sufficient to fund its working ca al requirements through
fiscal year 2022 and a reasonable time thereafter.
Note 15. In -Kind Contributions
In -kind contributions included in the consolidated statements of ac ities and functional expenses and the
corresponding expenses are as follows:
Professional services
Food, clothing and household items
2021 2020
$ 444,895 $ 376,051
2,760,743 3,455,964
$ 3,205,638 $ 3,832,015
Donated services for the years ended June 3', 2021 and 2020, with estimated fair values of
approximately $2,031,000 and $1,506,000, -spectively, were not recognized in the accompanying
consolidated financial statements becaus= hey did not meet the criteria for recognition because they did
not require specialized skills and would dinarily not be purchased if not provided by donation.
Note 16. Matching Requireme s
The Organization received a su
required local matches. Mana
fees, local grants and publi
tantial portion of its support from various funding sources which
ment believes these requirements were met through program service
onations during the years ended June 30, 2021 and 2020.
23
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 17. Liquidity and Availability of Resources
As of June 30, 2021 and 2020, the following reflects the Organization's financial assets, reduce
amounts not available for general use because of contractual or donor -imposed restrictions a
designations, within one year of June 30, 2021 and 2020:
Financial assets, at year-end
Cash and cash equivalents
Accounts receivable, net
Investments
Gifted facilities
Less those unavailable for general expenditures within
one year, due to:
Contractual or donor -imposed restrictions:
Restricted by donors with purpose and/or time restrictions
Restricted by donors with use restrictions
Board designations:
Board designated for specified purposes
Financial assets available to meet cash needs fo
general expenditures within one year
y
board
2021 2020
$ 20,180,7:8 $ 13,643,525
22,67 , 64 21,499,115
1, 6,560 1,000,392
,870,550 6,508,098
(2,432,013)
(4,870,550)
(1,246,560)
(1,497,043)
(6,508,098)
(1,000,392)
$ 40,420,519 $ 33,645,597
Over 95% of the Organization's annual revenue is c.mprised of cost reimbursement or pass through
contracts. Therefore, there is little ability to genere surplus revenue and maintain large cash balances.
As such, the Organization relies on contract ad : nces and prompt funder reimbursements to maintain
liquidity. The Organization also maintains a $7, 50,000 line of credit available to meet cash flow needs if
necessary.
Note 18. Guardianship Program
In connection with the Organization' guardianship program, the Organization manages funds for
individuals who have been declar:. incapacitated. The Organization is a court -appointed legal guardian
for these individuals. Assets m- , aged by the Organization include real property valued in the table below
at their fair value on the date e Organization was appointed guardian. Cash and cash equivalents, and
investments are included in e table below at current fair value. income earned on assets managed is
applied to each individual' account balance. Assets managed by the Organization are not included in the
accompanying consolid., ed financial statements. The value of assets managed are as follows:
Cash and cash quivalents
Investments ifixed income and equity securities
Real prope
Cash sur
Other
der value of life insurance and other annuities
2021 2020
$ 5,762,900
6,854,870
2,992,999
4,366,438
170,266
$ 5,066,851
6,329,333
3,389,424
4,558,296
710,657
$ 20,147,473 $ 20,054,561
F. the years ended June 30, 2021 and 2020, program service fees earned under the guardianship
rogram were approximately $701,000 and $742,000, respectively, and are included in program service
fees in the accompanying consolidated statements of activities.
24
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 19. Contract with Duval County Staff
The Organization's Head Start program in Duval County includes certain personnel that are emoyed by
the Organization under a collective bargaining agreement. The collective bargaining agreemer is
effective through January 31, 2022.
Note 20. Conditional Promises to Give
The Organization has conditional promises to give from grantors of approximately $. 1,850,000 and
$25,580,000 as of June 30, 2021 and 2020, respectively. Future payments are co ingent upon the
Organization carrying out certain activities (meeting grant -imposed barriers) sti.. ated by the grant or
contract.
Note 21. Paycheck Protection Program
On August 5, 2020, the Organization received a loan in the amount of 10,000,000 under the Paycheck
Protection Program (PPP). The PPP, established as part of the Corr avirus Aid, Relief and Economic
Securities Act (CARES Act), provides for loans to qualifying busi sses for amounts up to 2.5 times of the
average monthly payroll expenses of the qualifying business. U ' der the terms of the PPP, PPP loans and
accrued interest are forgivable as long as the borrower uses - e loan proceeds for eligible purposes,
including payroll, benefits and other qualifying expenses.
As of June 30, 2021, the Organization used $5,661,348 •f the loan proceeds to fund its payroll expenses.
The Organization submitted an application to the Sm- Business Administration (SBA) on July 23, 2021,
requesting that these PPP funds received be forgiv= . On July 30, 2021, the Organization received
notification that the $5,661,348 was forgiven. The • rganization elected to account for the PPP loan as a
conditional contribution under ASC Subtopic 957-605. Management believes the revenue recognition
criteria under ASC Subtopic 958-605 have be n met for $5,661,348 of the $10,000,000 PPP loan. As
such, this amount has been recognized in • .vernment grants and contracts in the accompanying
consolidated statements of activities as o June 30, 2021. The remaining principal balance of $4,338,652
is included in refundable advances in t accompanying consolidated statements of financial position as
of June 30, 2021. The remaining prin '.al balance of $4,338,652 plus accrued interest was repaid by the
Organization on August 3, 2021.
25
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Government Grants and Contracts
Year Ended June 30, 2021
Direct federal funding:
U.S. Department of Health and Human Services
Pass -through awards of federal and state funding:
State of Florida Department of Children and Families
State of Florida Department of Health
Children's Network of Southwest Florida, LLC
Eckerd Connects, Community Alternatives
Florida Network of Youth and Family Services, Inc.
ChildNet, Inc.
Safe Children Coalition, Inc.
Lutheran Immigration and Refugee Services
Voluntary Pre -Kindergarten
South Florida Workforce Investment Board
Hillsborough County, State of Florida
State of Florida Department of Elder Affairs
Lakeview Center, Inc.
State of Florida Office of Attorney General
U.S. Committee for Refugees and Immigrants
National Children's Alliance
University of South Florida
Hillsborough County Public Schools
Northeast Florida Healthy Start Coalition, Inc.
City of Jacksonville
University of Illinois
Local and other grants and contracts•
Children's Services Council of Palm each County
Small Business Administration
Children's Board of Hillsborougr County
Florida Blue Foundation
Lee County, State of Florid
Partnership for Strong F. ilies
Florida Network of Yo and Family Services, Inc. (DV Respite)
Hernando County Bc CC
Marion County
Santa Rosa Co ty, State of Florida
Eckerd Staff -etention Funds
Sarasota County, State of Florida
Other
58, 089, 733
150,009,460
6,651,944
5,669,115
6,099,826
4,639,021
3,106, 557
2,203,395
953,076
1,207,874
1,435,949
1,661,844
809,071
33,440
272,368
97,927
51,560
48,117
36,875
5,800
1,406
664
184,995,289
5,798,570
5,661,348
1,602, 954
700,784
311,349
117,740
125,935
66,450
60,000
50,619
48,480
29,468
65,793
14,639,490
Total government grants and contracts $ 257,724,512
26
Luthera Services Florida, Inc. and Subsidiary
Schedule of S
tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues
Budget Period Jul 2020 through June 30, 2021
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
IA. State SAMH funding
Contract EH003 $ 338,764
Contract EH003 — carryover -
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) En -kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Clay Behavioral — Community
mare/ Case Crisis Forensic Beds —
Follo p Assessment Management Prevention Adult Services
1,086,320 $ 4,047,785 $ 500,000 $
338,764 1,0:• 320 4,047,785
500,000
Crisis Crisis Support)
Stabilization Emergency Day Care Day Treatment
1,050,681 $ 16,114,683 $ 11,908,827 $ 153,148 $ 535,645
1,050,681 16,114,683
11,908,827
153,148
535,645
Total funding $ 338,764 $ 1,086,320 $ 4,047,785 $ 500,000 $ 1,050,681 $ 16,114,683 $ 11,908,827 $ 153,148 $ 535,645
(Continued)
27
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v
Luthera Services Florida, Inc, and Subsidiary
Schedule of S tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC, All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AM HICM HIASAICSA
Florida
Assertive
-In Community Indigent Psych
Self- FR - CAT Treatment Incidental Medication Information In -Home!
Centers Teams (FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
$ 738,056 $ ^ 447,616 $ 7,235,607 $ 3,138,144 $ 348,999 $ 697,099 $ 134,297 $ 997,284 $ 166,699
738,055
8,447,• 7,235,607
3,138,144 348,999
697,099 134,297
997,284 166,699
Total funding $ 738,056 $ 8,447,616 $ 7,235,607 $ 3,138,144 $ 348,999 $ 697,099 $ 134,297 $ 997,284 $ 166,699
(Continued)
28
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Luthera Services Florida, Inc, and Subsidiary
Schedule of Su • tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICM HIASAICSA
PATH
Community
Mental Health Multi- Support
Part I: Actual Funding Sources and Revenues: Intensive Case Medical Clubhouse Methadone Disciplinary Services
Funding Sources and Revenues Inpatient Management Services Services Treatment Forensic Team Outreach Federal Prevention
IA. State SAMH funding
Contract EH003 $ 691,958 $ 126,941 $ 4,679,771 $ 819,390 $ 6,045,231 $ 652,000 $ 1,963,725 $ 879,333 $ 5,731,366
Contract EH003 — carryover - - - - - - - - -
Total state SAMH funding 691,958 126,9 4,679,771 819,390 6,045,231 652,000 1,963,725 879,333 5,731,366
lB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local govemment only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding $ 691,958 $ 126,941 $ 4,679,771 $ 819,390 $ 6,045,231 $ 652,000 $ 963,725 $ 879,333 $ 5,731,366
(Continued)
29
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Luthera Services Florida, Inc, and Subsidiary
Schedule of S tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Ju , 2020 through June 30, 2021
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
IA. State SAMH funding
Contract EH003 $ 3 57 $ 5,950,850 $ 397,535 $ 515,738 $ 328,396 $ 1,622,235 $ 1,586,879 $ 3,765,577 $ 14,908,283
Contract EH003 — carryover - -
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Respite Supported Supported Transitional Residential
Services SA Detox Employment HousinglLiving TASC Beds Intervention Outpatient Services
Total state SAMH funding 330,357 5,950,850 397,535 515,738 328,396 1,622,235 1,586,879 3,765,577 14,908,283
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Thrd-party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding
$ 330,357 $ 5,950,850 $ 397,535
(Continued)
30
515,738 $ 328,396
1,6 , 35 $ 1,586,879 $ 3,765,577 $ 14,908,283
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Luthera Services Florida, Inc. and Subsidiary
Schedule of S tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
IA. State SAMH funding
Contract EH003
Contract EH003 — carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -Kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
oom and
Bo" d with Transition
Supery "on Vouchers
$ 3,727,159
Bnet
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Purchased
Residential Fixed Rate
Care Therapeutic First Episode Central Receiving Recovery Federal
Coordination Services Psychosis Facilities Support Project Grant
44,179 $ 876,281 $ 111,311 $ 189,723 $ 450,000 $ 7,182,471 $ 170,122 $ 3,479,713
3,727,159 179 878,281 111,311 189,723 450,000 7,182,471 170,122 3,479,713
Total funding 3 3,727,159 $ 44,179 $ 878,281 $ 111,311 $ 189,723 $ 450,000 7,182,471 $ 170,122 $ 3,479,713
(Continued)
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Luther. ' Services Florida, Inc. and Subsidiary
Schedule of S tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Ju , 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASA/CSA
Local
Network Provider Diversion Total for
Part I: Actual Funding Sources and Revenues: Ot - Bundled Cost Wraparound Evaluation & Provision Foresnic Sustainability AMHICMHI
Funding Sources and Revenues Pro : is Reimbursement Projects Development Projects Project Payments ASAJCSA
IA. State SAMH funding
Contract EH003 $ 8,636.26 $ 138,742 $ 206,472 $ 334,210 $ 293,916 $ 12,333 $ 5,363,799 $ 139,853,911
Contract EH003 — carryover - - - - - - -
Total state SAMH funding 8,636,261 138,742 206,472 334,210 293,916 12,333 5,363,799 139,853,911
IB. Other government funding
{1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
{5) In -kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments {except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding $ 8,636,261 $ 138,742 $ 206,472 $ 334,210 $ 263,916 $ 12,333 $ 5,363,799 $ 139,853,911
(Continued)
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Luthera ' Services Florida, Inc. and Subsidiary
Schedule of S stance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Ju , 2020 through June 30, 2021
Total for Non- Total for all
ME Total for State State -Funded State Designated
Part l: Actual Funding Sources and Revenue Administrative SAMH-Funded SAMH Cost SAMH-Funded Non-SAMH Total
Funding Sources and Revenues Services Cost Centers Centers Cost Centers Cost Centers Funding
IA. State SAMH funding
Contract EH003 $ 4,642,698 $ 139,853,911 $ - $ 144,496,609 $ $ 144,496,609
Contract EH003 — carryover - 1,038,258 - 1,038,258 1,038.258
Total state SAMH funding 4.642,698 140,892,169 145,534,867 145,534,867
113. Other government funding
(1) Other state agency funding - 7,313,139 7,313,139
(2) Medicaid - - - -
(3) Local government - 14,639,490 14,639,490
(4) Federal grants and contracts - 90,237,016 90,237,016
(5) In -kind from local government only - -
Total other government funding - 112,189, 645 112,189,645
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
1,048,301 1,048,301
2,364,519 2,364,519
764,514 764,514
3,205,638 3,205,638
7,382,972 7,382,972
Total funding $ 4,642.698 $ 140,892.169 $ - $ 1 ' 534,867 $ 119,572,617 $ 265,107,484
(Continued)
33
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Luthera Services Florida, Inc. and Subsidiary
Schedule of S • stance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Ju 1, 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AM HICM HIASAICSA
Clay Community
Behavioral — Forensic
Part 11: Actual Expenses: Aftercare! Case Crisis Beds —Adult Crisis Crisis Support!
Funding Sources and Revenues ollow-Up Assessment Management Prevention Services Stabilization Emergency Day Care Day Treatment
(IA, Personnel expenses
(1) Salaries $ - $ - $ - $ $ - $ - $ $ - $
(2) Fringe benefits
Total personnel expenses
11B. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Subcontracted services 338,764 1,086,320 4,047.785 500,000 1,050,681 16,114,683 11,908,827 153,148 535,645
(8) lnsurance - - - - - -
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12)-Donated items
Total other expenses 338,764 1,086,320 4,047.785 500,000 1 t •,681 16,114,683 11,908,827 153,148 535,345
Total personnel and other expenses 338,764
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
1,086,320 4,047,785
500,000 1,050,681
16,114,683 11,908,827
153,148 535,645
Total actual operating expenses 338,764 1,086,320 4,047,785 500,000 1,050,681 16,114,683 11,9827 153,148 535,645
1113. Unallowable costs
Total allowable operating expenses $ 338,764 $ 1,086,320 $ 4,047,785 $ 500,000 $ 1,050,681 $ 16,114,683 $ 11,908,827 $ 3,148 $ 535,645
11E_ Capital expenditures $ $ - $ - $ $ - $ - $ - $
(Continued)
34
a3iniiissns
Luthera ervices Florida, Inc. and Subsidiary
Schedule of Su • tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
State Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASA!CSA
Florida
Assertive
Drop -In Community Indigent Psych
Part II: Actual Expenses: -lf-Help FR — CAT Treatment Incidental Medication Information In -Homo!
Funding Sources and Revenues Ce -rs Teams (FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
ILA. Personnel Expenses
(1) Salaries $ - $ - $ 5 $ - $ - $ - $ - $
(2) Fringe benefits
TotalpersanneL expenses - - - -
IIB- Other expenses
(1) Building occupancy - - - - -
(2) Professional services - - - -
(3) Travel
(4) Equipment - - - - -
(5) Food services - - - - -
(6) Medical and pharmacy - - - - - -
(7) Subcontracted services 738,058 8,447,616 7,235,607 3,138,144 348,999 697,099 134,297 997,284 166,699
(8) Insurance - - - - - -
(9) Interest paid - - - - - -
(10) Operating supplies and expenses
(11)Other - - - - -
(12) Donated items - - - - -
Total other expenses 738,056 5,447,616 7,235,607 3,138,144 '8,999 697,999 134,297 997284 166,699
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration - - - -
738,056 8,447,616 7,235,607 3,138,144 348,999 697,099 134,297 997,284 166,699
Total distributed indirect costs - - - -
Total actual operating expenses 738,056 5,447,616 7,235,607 3.138,144 348,999 697,099 34,297 997,284 166,699
IID. Unallowable costs
Total allowable operating expenses $ 738,056 $ 8,447,616 $ 7,235,697 S 3,138,144 $ 348,999 $ 697,699 $ 134,297 $ 997,284 $ 166,699
IIE. Capital expenditures $ - $ - $ - $ - $ $ $ - $ - $
(Continued)
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Luthera Services Florida, Inc. and Subsidiary
Schedule of S tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHlASAfCSA
Mental Health Multi -
Part II: Actual Expenses: Intensive Case Medical Clubhouse Methadone Disciplinary
Funding Sources and Revenues Inpa t Management Services Services Treatment Forensic Team
Outreach
PATH
Community
Support
Services
Federal
Prevention
ILA. Personnel expenses
(1) Salaries S - S $ - $ - $ - S - S S $
(2) Fringe benefits
Total personnel expenses
118. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Subcontracted seances
(S) Insurance
(9) interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses
691,958
126,941
4,679,771
819,390 6,045,231 652,000 1,963,725 879,333 5,731,266
691,958 126,941 4,679,771 819,390 8,0
31 852,000 1,963,725 879,333 5,731,366
Total personnel and other expenses 691,958
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
126,941 4,679,771 819,390 6,045,231 652,000 1,963,725 879,333 5,731,366
Total actual operating expenses 691,956 126,941 4,679,771 819,390 6,045,231 652,000 1,•.s 725 879,333 5,731,366
IID. Unallowable costs
Total allowable operating expenses $ 691,958 $ 126,941 S 4,679,771 $ 819,396 $ 6,045,231 $ 652,900 $ 1,963,725 $ :79,333 $ 5,731,366
IIE. Capital expenditures $ - $ 3 - $ - $ $ - $ $
(Continued)
36
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Luthera Services Florida, Inc. and Subsidiary
Schedule of Su : tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH!CMH1ASAICSA
Part II: Actual Expenses: Respite Supported Supported Transitional Residential
Funding Sources and Revenues Services SA Detox Employment Housing/Living TASC Beds Intervention Outpatient Services
IIA. Personnel expenses
(1) Salaries $ - $ - $ $ $ $ - $ - $ - $
(2) Fringe benefits
Total personnel expenses
IIB. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Subcontracted services 330,357 5,950,850 397,535 515,738 328,396 1,622,235 1,586,879 3,765,577 14,908,283
(8) Insurance - - - - -
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses 330,357 5,950,850 397,535 515,738 8,396 1,622,235 1,566,879 3,765,577 14,908,283
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
330,357 5,950,850 397,535 515,738 328,39 1,622,235 1,586,879 3,765,577 14,998,283
Total actual operating expenses 339,357 5,950,850 397,535 515,738 328,396 1,622,235 1,'' •,879 3,765,577 14,908,283
IID. Unallowable costs
Total allowable operating expenses $ 330,357 $ 5,956,850 $ 397,535 $ 515,738 $ 328,396 $ 1,622,235 $ 1,586,879 $ , 65,577 $ 14,908,283
11E. Capital expenditures $ - $ - $ - $ $ - $
(Continued)
37
a31n111s9ns
Luthera Services Florida, Inc. and Subsidiary
Schedule of S tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH)CMH!ASAICSA
Purchased
Room and Residential Fixed Rate
Part 11: Actual Expenses: Board with Transition Care Therapeutic First Episode Central Receiving Recovery Federal
Funding Sources and Revenues Sr•ervision Vouchers Bnet Coordination Services Psychosis Facilities Support Project Grant
IIA. Personnel expenses
(1) Salaries $ - 5 - 3 - $ - $ $ S $
(2) Fringe benefits
Total personnel expenses
IIB. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
•(B) Medical and pharmacy
(7) Subcontracted services
(8) Insurance
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses
3,727,159
44,179 878,281 111311
159,723
450,000 7,162,471
170,122 3,479,713
3,727,159
44,179 878,231
111,311 89,723
450,000 7,182,471
170,122 3,479,713
Total personnel and other expenses 3,727,159 44,179 878,281 111,311 189,72 450,000 7,182,471 170,122 3,479,713
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
Total actual operating expenses 3,727,159
11D. Unallowable costs
44,173 878,251 111,311 189,723 450,000 182,471 170,122 3,479,713
Total allowable operating expenses $ 3,727,159 $ 44173 $ 875,281 $ 111,311 $ 189,723 $ 450,000 $ 7,182,471 $ 170,122 $ 3,479,713
IIE. Capital expenditures $ - $ - $ - $ 5 -
(Continued)
38
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Luthera ervices Florida, Inc. and Subsidiary
Schedule of Su • tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2020 through June 30, 2021
Part II: Actual Expenses:
Funding Sources and Revenues
IIA. Personnel expenses
(1) Salaries
(2) Fringe benefits
Total personnel expenses
112. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy - - (7) Subcontracted services 8,636,261 138,742 203,472 334,210 293,916 12,333 5,363,790 139,853,911
(8) Insurance - - (9) Interest paid
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH!CMHJASAICSA
Local
Other Network Provider Diversion Total for
Bundled Cost Wraparound Evaluation and Provision Foresnic Sustainability AMH!CMH
ejects Reimbursement Projects Development Projects Project Payments ASAJCSA
$ $ $ $ - $ - $
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses 8,636,261 138,742 206,472 334,210 293,916 12,333 5,363,799 139,853,911
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
8,636,261 138,742 206,472 334,210 916 12,333 5,363,799 139,853,911
Total actual operating expenses 8,636,261 138,742 206,472 334,210 293,916 12,333 5,363,799 139,853911
IID. Unallowable costs
Total allowable operating expenses $ 8,636,261 $ 138,742 $ 205,472 $ 334,210 $ 293916 $ 12,333 $ 5,363, °f $ 139,853,911
IIE. Capital expenditures $ - $ - $ $ - $ -
(Continued)
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Lutheran ervices Florida, inc. and Subsidiary
Schedule of Sub - nce Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 2020 through June 30, 2021
Total for Non- Total forall
ME Total for State State -Funded State Designated
Part II: Actual Expenses: Administrative SAMH-Funded SAWN Cost SAMH-Funded Nan.SAMH Total
Funding Sources and Revenues Services Carryforward Cost Centers Centers Cost Centers Cost Centers Administration Advancement Expenses
IIA. Personnel expenses
(1) Salanes $ 887,386 $ $ - 2,887,386 5 $ 2,887,386 $ 46,898,973 $ 4526977 $ 267,179 $ 54,580515
(2) Fringe benefits 817 561,817 - 561,817 11,824,692 1,009,981 51,283 13,447,773
Total personnel expenses 3 449, 3,449,203 3,449,203 58,723,6E5 5,536,958 318,462 68,028,288
IIB. other expenses
(1) Building occupancy 204,255 - 204,255 - 204,255 6,053,153 571,183 15,351 6,843,942
(2) Professional services 101,780 - 101,780 101,730 2,455,661 593,113 23,851 3,174,405
(3) Travel 26,572 - 26,572 26,572 1,610,358 84,399 10,961 1,732,290
{4) Equipment 203,728 - 203,726 203,728 3,412,825 303,723 26,348 3,946 624
(5) Food services - - - 1,596,533 - 1,596,533
(6) Medical and pharmacy - - - - - - -
{7) Subcontracted services 1,034,557 1 :88,468 140,888,468 21,567,120 - 162,455,588
(8) Insurance 23,054 - '54 - 23,054 1,004,403 92,164 1,307 1,120,928
(9) Interest paid - - - - 103,227 170,546 - 273,773
(10) Operating supplies and expenses 92,181 - 92,161 92,161 10,847,294 166,416 14,545 11,120,413
(11) Other 78,426 - 78,426 78.426 219,973 414,633 3,642 716,674
(12) Donated items - - - - 3,205,638 - - 3,205,638
Total other expenses 729,976 1,634,557 141,618,444 - 141,618,444 52,076,185 2,396,177 96,005 196,186,811
Total personnel and other expenses 4,179,179 1,034,557 145,067,647 - 145,067,647 110,799,850 7,933,135 414,467 264,215,099
IIC. Distributed indirect costs
(a) Other support costs (optional) - - - - - -
(b)Administration 287,312 - 287,312 28 -12 7,617,329 (7,933,135) 28,494
Total distributed indirect costs 287,312 - 287,312 287,31 7,617,329 (7,933,135) 28,494
Total actual operating expenses 4.466,491 1,034,557 145,354,959 145,354,959 ' 18,417,179 442,961 284,215,099
IID. Unallowable costs - - - 3 ,,90 862 45 34,797
Total allowable operating expenses $ 4,466,491 S 1,034,557 $ 145,354,959 $ $ 145 354,959 $ 118,383,289 (862) $ 442,916 $ 264,180,302
11E. Capital expenditures $ 13,893 5 - $ 13,893 $ - $ 13,893 $ 1,067,252 $ $ - $ 1,081,145
40
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SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost
Center Actual Expenses and Revenues (Continued)
Schedule of State Earnings
Year Ended June 30, 2021
*This schedule does not apply for the year ended June 30, 2021.
41
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of Bed -Day Availability Payments
Year Ended June 30, 2021
*This schedule does not apply for the year ended June 30, 2021.
42
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of Related Party Transaction Adjustments
Year Ended June 30, 2021
*This schedule does not apply for the year ended June 30, 2021.
43
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■ 1111■..M
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 Standar
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
RS
RSM US LLP
We have audited, in accordance with the auditing standards generally acc=•ted in the United States of
America and the standards applicable to financial audits contained in G. vernment Auditing Standards,
issued by the Comptroller General of the United States, the consolid. -d financial statements of Lutheran
Services Florida, Inc. and Subsidiary (the Organization), which co ' rise the consolidated statement of
financial position as of June 30, 2021, and the related consolidat- • statements of activities, functional
expenses and cash flows for the year then ended, and the related otes to the consolidated financial
statements (collectively, the financial statements), and have i ued our report thereon dated February 10,
2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial s .tements, we considered the Organization's
internal control over financial reporting (internal co ~ol) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose ' expressing our opinion on the financial statements,
but not for the purpose of expressing an opinio on the effectiveness of the Organization's internal
control. Accordingly, we do not express an o•.' ion on the effectiveness of the Organization's internal
control.
A deficiency in internal control exists w -n the design or operation of a control does not allow
management or employees, in the nor al course of performing their assigned functions, to prevent, or
detect and correct, misstatements . a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in int nal control, such that there is a reasonable possibility that a material
misstatement of the Organizati. 's financial statements will not be prevented, or detected and corrected,
on a timely basis. A significa deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe t .n a material weakness, yet important enough to merit attention by those
charged with governance
Our consideration of i ernal control was for the limited purpose described in the first paragraph of this
section and was no designed to identify all deficiencies in internal control that might be material
weaknesses or si ificant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in i ernal control that we consider to be material weaknesses. However, material
weaknesses r ay exist that have not been identified.
E POWER OF BEING UNDERSTOOD
DIT i TAX : CONSULT'NG
44
SUBSTITUTED
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Organization's financial statements are free
from 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 materi
effect on the financial statements. However, providing an opinion on compliance with those provision was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of o . tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal contro and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of th= ,• rganization's
internal control or on compliance. This report is an integral part of an audit performe► in accordance with
Government Auditing Standards in considering the Organization's internal control d compliance.
Accordingly, this communication is not suitable for any other purpose.
�$Af us I21..P
Orlando, Florida
February 10, 2022
45
SUBSTITUTED
RS
RSM US LLP
Report on Compliance for Each Major Federal Program and State Financial Assistance 'roject
and Report on Internal Control Over Compliance Required by the Uniform Guidce
and State of Florida Chapter 10.650, Rules of the Auditor General
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
Report on Compliance for Each Major Federal Program and State Fin. cial Assistance Project
We have audited Lutheran Services Florida, Inc. and Subsidiary's (the Organization) compliance with the
types of compliance requirements described in the OMB Compliance Supplement and in the State of
Florida's Department of Financial Services' State Projects CompliancSupplement that could have a
direct and material effect on each of the Organization's major feder programs and state financial
assistance projects for the year ended June 30, 2021. The Orga ation's major federal programs and
state financial assistance projects are identified in the summar, of auditor's results section of the
accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal :nd state statutes, regulations, and the terms and
conditions of its federal awards and state financial as stance applicable to its federal programs and state
financial assistance projects.
Auditor's Responsibility
Our responsibility is to express an opinion on r.mpliance for each of the Organization's major federal
programs and state financial assistance pro cts based on our audit of the types of compliance
requirements referred to above. We cond ted our audit of compliance in accordance with auditing
standards generally accepted in the Uni -d States of America; the standards applicable to financial audits
contained in Government Auditing St.. lards, issued by the Comptroller General of the United States; the
audit requirements of Title 2 U.S. C..e of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, a : Audit Requirements for Federal Awards (Uniform Guidance); and the
State of Florida Chapter 10.650 'ales of the Auditor General (Chapter 10.650). Those standards, the
Uniform Guidance and Chapt: 10.650, require that we plan and perform the audit to obtain reasonable
assurance about whether n. compliance with the types of compliance requirements referred to above
that could have a direct a : material effect on a major federal program or state financial assistance
project occurred. An auincludes examining, on a test basis, evidence about the Organization's
compliance with thos- equirements and performing such other procedures as we considered necessary
in the circumstance
We believe that ' r audit provides a reasonable basis for our opinion on compliance for each major
federal progra and state financial assistance project. However, our audit does not provide a legal
determination of the Organization's compliance.
Opinion
In ou
requ
pr
n Each Major Federal Program and State Financial Assistance Project
inion, the Organization complied, in all material respects, with the types of compliance
ments referred to above that could have a direct and material effect on each of its major federal
rams and state financial assistance projects for the year ended June 30, 2021.
'OWER OF BEING UNDERSTOOD
AUDI] • TAX CONSULT NG
46
SUBSTITUTED
Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be
reported in accordance with the Uniform Guidance and which are described in the accompanying
schedule of findings and questioned costs as items 2021-001 and 2021-002. Our opinion on each ma
federal program and state financial assistance project is not modified with respect to these matters.
The Organization's response to the noncompliance findings identified in our audit is described in e
accompanying schedule of findings and questioned costs. The Organization's response was n
subjected to the auditing procedures applied in the audit of compliance and, accordingly, we -xpress no
opinion on the response.
Report on Internal Control Over Compliance
Management of the Organization is responsible for establishing and maintaining effe• ive internal control
over compliance with the types of compliance requirements referred to above. In p . nning and performing
our audit of compliance, we considered the Organization's internal control over c' pliance with the types
of requirements that could have a direct and material effect on each major fed: al program and state
financial assistance project to determine the auditing procedures that are ap• opriate in the
circumstances for the purpose of expressing an opinion on compliance for •-ach major federal program
and state financial assistance project and to test and report on internal c• trol over compliance in
accordance with the Uniform Guidance and Chapter 10.650, but not fo he purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accdingly, we do not express an
opinion on the effectiveness of the Organization's internal control o. er compliance.
A deficiency in internal control over compliance exists when th
compliance does not allow management or employees, in th
functions, to prevent, or detect and correct, noncompliance
federal program or state financial assistance project on a
control over compliance is a deficiency, or a combinati
compliance, such that there is a reasonable possibili
compliance requirement of a federal program or st
detected and corrected, on a timely basis. A sign
deficiency, or a combination of deficiencies, in
requirement of a federal program or state fin
weakness in internal control over complian
with governance.
esign or operation of a control over
ormal course of performing their assigned
ith a type of compliance requirement of a
mely basis. A material weakness in internal
of deficiencies, in internal control over
that material noncompliance with a type of
financial assistance project will not be prevented, or
cant deficiency in internal control over compliance is a
ernal control over compliance with a type of compliance
cial assistance project that is less severe than a material
yet important enough to merit attention by those charged
Our consideration of internal control • ,er compliance was for the limited purpose described in the first
paragraph of this section and was ' t designed to identify all deficiencies in internal control over
compliance that might be materia eaknesses or significant deficiencies and therefore, material
weaknesses or significant defici ncies may exist that have not been identified. We did not identify any
deficiencies in internal control •ver compliance that we consider to be material weaknesses. However, we
did identify certain deficiencies in internal control over compliance, described in the accompanying
schedule of findings and • estioned costs as items 2021-001 and 2021-002 that we consider to be
significant deficiencies.
The Organization's r sponse to the internal control over compliance findings identified in our audit is
described in the a ompanying schedule of findings and questioned costs. The Organization's response
was not subject:: to the auditing procedures applied in the audit of compliance and, accordingly, we
express no op ion on the response.
Purpose
The pur
testin
Unif
this Report
se of this report on internal control over compliance is solely to describe the scope of our
internal control over compliance and the results of that testing based on the requirements of the
m Guidance and Chapter 10.650. Accordingly, this report is not suitable for any other purpose.
3A/ vs L4 P
Orlando, Florida
February 10, 2022
47
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
Federal Grantor/Pass-Through Grantor/Program Title
U.S. Department of Agriculture:
Passed -through from Florida Department of Health:
Child and Adult Care Food Program
Subtotal - U.S. Department of Agriculture
U.S. Department of Housing and Urban Development:
Passed -through from Florida Department of Health:
Housing Opportunities for Persons with AIDS
Subtotal - U.S. Department of Housing and
Urban Development
U.S. Department of Justice;
Passed -through from Stale of Florida Office of Attorney General:
Crime Victim Assistance
Passed -through from the City of Jacksonville:
Criminal and Juvenile Justice and Mental Health Coilaboratlon
Subtotal - U.S. Department of Justice
U.S. Department of State:
Passed -through from Lutheran immigration and Refugee Services:
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
U.S, Refugee Admissions Program
CCVID 19: U.S. Refugee Admissions Program
Subtotal - U.S. Department of State
U.S. Department of Treasury:
Passed -through from Florida Department of Children and Families:
COVID 19: Coronavirus Relief Fund
Subtotal - U.S. Department of Treasury
U.S. Department of Health and Human Services:
Substance Abuse and Mental Health Services Projects of
Regional and National Significance
Mental and Behavioral Health Education
and Training Grants
Services to Victims of a Severe Form of Trafficking
Basic Center Grant
COVID 19: Basic Center Grant
Basic Center Grant
COVID-19: Emergency Grants to Address Mental
Use Disorders During COVIP-19
Unaccompanied Allen Children Program
Head Start Cluster: Head Start
Head St- Cluster: Head Start Disaster Recovery
d Substance
Pas--d-through from Hillsborough County, State of Florida.
ead Start Cluster: Head Start
Federal
ALN
Number
10.558 D-154
10,568 5-121
10,558 H-3109
10.558 H-3110
10,558 H-3654
10,558 H-3365
14,241 CODMB
16, 575
16, 575
Contract/Grant
Number
VOCA-2019-LSF-00005
VOCA-2020-LSF-00524
16,745 2018-MO-BX-0048 1 =HP 139-1901
19,510 SPRMC. 9CA0030 / 323-19-LSF-03
19,510 SPRMr"'19CA0030/323-18-LSF-03-COVID
19.510 SP CO21 CA30071 323-21-LSF-00
19,510 S7" MCO21CA3007 / 323-21-LSF-00 _ COVID
21 ! 9 BH003
93,243 H79SM081465
93,732
93732
93,598
93,623
93,623
93.623
93,865
93,876
53,676
93,600
93,600
93,600
93,600
93,600
93,600
93,600
83.600
93.600
93.600
93.600
93,500
93.600
93.500
93.356
M01HP31270
T26HP39448
90ZV0132
90CY6957
90CY6957 - COVID
90CY6962
I.179F0900416
90ZU0320-D1
90ZU0320-02
04H E000622-Di C5 - CRRSA
0414E000622-01 C6 - ARP
040-1011072-02
04CH011072-03
04G1-1010623-03
04CH010626-04
04CH011190-02
040H011180-03
04CH4702-06-06
04CH011690-01-04
04CH011690-02-01
04HP000259-01-00
04HP000259-02-03
04H1.000259-03-02
04715000155
93.800 04CH011252-01119-1169
93.600 04017011252-02119-1169
(Continued)
48
Provided to
Subrsci.ients
Dial
Federal
enditures
4,883,500
1,094,762
19,087
13,447
36,033
40,212
5,887,041
723.904
723,904
55,540
210,828
272,368
1,405
273,774
37,406
6,611
44,652
2,460
91,129
303,028
322,737
303,026
322,737
42,491
223,948
1,775,227
549,725
2,109,365
646,676
(35,870)
6,242,537
2,558,174
51,800
561,377
233,990
171,979
266,294
177,064
34,054
132,188
30,999
209,039
381,435
1,209,300
1,536,001
108,242
38,800
1,496,890
307,169
12,1341,807
3,386,490
9,924,327
2,688,072
427,482
15, 708, 336
5,234,631
173,572
1,159,530
438,453
10,000
446,179
1,215,865
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
Federal Grantor/Pass-Throu•h Grantor/Program Title
Passed -through from State of Florida Department of
Children and Famiiies:
Refugee and Entrant Assistance — State Administered
Programs
Refugee and Entrant Assistance — Targeted Assistance
Grants
Comprehensive Community Mental Health Services for
Children with Serious Emotional Disturbances (SED)
Projects for Assistance in Transition from Homelessness
(PATH)
Substance Abuse and Mental Health Services Projects
of Regional and National Significance
Temporary Assistance for Needy Families
COVID 19, Emergency Grants to Address Mental and Substance
Use Disorders During COVID-19
Children's Health Insurance Program
Medicaid Cluster: Medical Assistance Program
State Targeted Response to the Opioid Crisis Grants
Block Grants for Community Mental Health Services
Block Grants for Prevention and Treatment of Substance
Abuse
Passed -through from Lutheran immigration and
Refugee Services:
Refugee and Entrant Assistance —Voluntary Agency
Programs
Refugee and Entrant Assistance Discretionary Grants
Unaccompanied Alien Children Program
Passed -through from University of South Florida:
Healthy Marriage Promotion and Responsible F. erhood Grants
Federal
ALN
Number
Contract/Grant
Number
Provided to
Subreci •rents
Total
Federal
Ex•enditures
93.566 LK191 $ - $ 751,247
93.586 LK20B 262,434
93.566 LK205 670,429 2,586,276
93.584
93.584
93.584
LK191
LK20B
LK205
93.104 EH003
93.150 PH003
93.243 EH003
93.558 EH003
93,665
93.767
93.778
93.788
93.956
EH003
EH003
EHOO
EHri3
003
93.959 EH003
93.567
93.567
93.576
93.676
93,675
93,673
93.676
2002MD RV MG1342-20-LS F-00
2102MD RV MG1342-21-LS F-00
90RP0113-04-02
90Z U 0318-011358-20-LS F-00
90ZU0318-021358-21-LSF-00
90ZU0172-031358-19-LSF-03
90ZU0361-011357-21-00
93,085 5112-5527-00-6 - 90ZB0024
(Continued)
49
80,364
28,074
54,314 209,524
327,250 340,340
879,333 879,333
46,713 46,713
2,150,158 2,191,147
150,000 150,000
878,281 878,281
1,350, 765 1,373,166
12,167,118 12, 636, 536
7,546,161 7,546,161
21,308,529 21,308,529
74,071
99,764
30,440
174,208
141,874
167,095
174,495
48,117
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
Federal GrantorlPass-Throu.h Granlor/Pr. ram Title
Passed -through from Eckert! Connects, Community Alternatives:
Promoting Safe and Stable Families
Federal
ALN
Number
Contract/Grant
Number
Total
Provided to Federal
Subrecl.lents Ex.endltures
Temporary Assistance for Needy Families
Stephanie Tubbs Jones Child Welfare Services Program
Foster Care — Title I V-E
Adoption Assistance
Social 5ervices Block Grant
Child Abuse and Neglect State Grants
Passed -through from Children's Network of Southwest Florida, LLC:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Grants to States for Access and Visitation Programs
Stephanie Tubbs Jones Child Welfare Services Program
Foster Care — Title I V-E
Adoption Assistance
Social Services Block Grant
Passed -Through from ChildNef, lnc:
Foster Care — Title lV-E
Passed -through from Safe Children Coalition, Inc.:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Grants to States for Access and Visitation Programs
Stephanie Tubbs Jones Child Welfare Services Programs
Foster Care —Title IV-E
Adoption Assistance
John H. Chafee Foster Care Program for Successful Transition Adulthood
Passed -Through from South Florida Workforce Investment Bea
Refugee and Entrant Assistance — State Administered
Programs
Refugee and Entrant Assistance —Targeted Assist • ce
Grants
Passed -through from Northeast Florida Health Start Coalition, Inc.:
Advancing System Improvements for Issues In Women's Health
Passed -through from The University of! ois:
ACL National institute on Disability
and Rehabilitation Research
Passed -through from Lakeview
Foster Care — T'dle IV-E
Social Services Block Gr: t
dependent Living,
nfer, Inc.:
Passed -through from U. Committee For Refugees and Immigrants:
Block Grants for C. munity Mental Health Services
Subtotal U.S. Department of
He. and Human Services
U.S. Departme of Homeland Security:
Passed-thrgh from Hillsborough County Public Schools:
Citize - ip Education and Training
Subtotal — U.S. Department of Homeland Security
Total expenditures of federal awards
93.556
93.556
93.558
93.558
93.645
93.658
93.658
93.658
93.659
93.667
93.667
93.669
93.556
93.558
93.558
93.597
93.645
93.658
93.658
93.658
93.659
93.667
93.667
658
3.658
93,55B
93.556
93,55E
93,597
93.645
93.658
93.659
93.674
93.566
93.566
ECA-CB-C MO-LSF-FY22
ECA-C6-D I V-CFP-FY21
ECA-C6-CMO-LSF-FY22
ECA-C6-D I V-CFP-FY21
ECA-C6-C MO-LSF-FY22
ECA-C6-C MO-LSF-FY22
ECA-C6-D I V-CFP-FY21
N/A
ECA-C6-C MO-LSF-FY22
ECA-C6-D I V-CFP-FY21
NIA
ECA-C6-D I V-CFP-FY
ABK01
ABK01
FBR01
ABK01
ABK01
ABM
FB0'1
: Q01
BK01
WBQ01
NIA
LSF2CRGC
LSF2CPIL
NIA
LSFCM20
LSFCM20
LSFCM20
LSFCM20
LSFCM20
LSFCM20
LSFCM20
RET-DP-PY18-08-01
RET-DP-PY19-09-00
93.584 RET-DP-PY18-08-01
93.584 RET-DP-PY19-09-00
93.088 NIA
93,433
93.658
93.667
93,958
9DRT5038
C-010-101
C-010-101
90ZV0123
97.010 20CICET00157
(Continued)
50
$ 17,: 4 $ 151,900
9: 54 292,861
,511 358,722
57,388 467,691
6,052 51,432
134,522 1,143,226
238,287 708,089
15,505
8,013 68,099
50 149
13,501
295 876
4,606
413,163
95,619
23,109
32,241
892,916
144,767
19,243
66,377
38,824
601
1,735,874
341,547
27,223
14,688
316,195
9,497
24,682
518,069
30,778
8,552
330,366
949,639
40,249
115,695
5,600
480
3,031
8,557
97,927
63,227,237
121,812,373
36,875
36,875
63,530,265 129,147,833
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
State Total
CSFA Contract/Grant Provided to State
State Grantor/Pass-Through Grantor/Program Title Number Number Subrecipient Expenditures
State Courts System:
Passed -through from Gulf Coast Kid's House:
Florida Network of Children Advocacy Centers 22.016 NIA $ - $ 51560
Department of Children and Families:
Forensic Services and Competency Restoration Training 60,114 EH003 823,432 823,432
Substance Abuse and Mental Health — Community Services 60.153 EH003 121,545 121,545
Substance Abuse and Mental Health — Crisis Prevention
and Stabilization Services 60.155 EH003 855,511 855,511
Centralized Receiving Systems 60.163 EH003 7,490,052 7,490,052
SAMH ME Slate Funded Federal Excluded Services 60.190 EH003 1,224,453 1,224,453
Criminal Justice, Mental Health, and Substance
Abuse Reinvestment Grant Program 60.115 LHZ76 137,679 293,376
60,115 LH786 140,214 256,415
Passed -through from Lakeview Center, Inc.:
CBC - Purchase of Therapeudic Services for Children 60.183 C-01 r 201 10,190
Passed -Through from Eckord Connects, Community Alternatives;
Out -Of -Home Supports
Passed -through from Children's Network of
Southwest Florida, LLC,
CBC - Purchase of Therapeudic Services for Children
Subtotal — Department of Children and Families
Department of Education:
Passed -through from Early Learning Coalition of Pinellas
County, Inc.:
Voluntary Pre -Kindergarten Education Program 48.108 N/A 331,742
Passed -through from Early Learning Coalition of
Palm Beach County, loc.:
Voluntary Pre -Kindergarten Education Progra ' 48.108 N/A 561,093
Passed -through from the Early Learning Coaiitio of
Duval, inc..
Voluntary Pre -Kindergarten Education 'rogram 48.108 N/A 315,039
60.074 N/A 1,222
.183 WBS01 3,410
10,792, 886 11,079,606
Subtotal — Department of Ed ation - 1,207,874
Department of Health:
Medical Services for Abused and .eglected Children
Department of Elder Affairs:
Public Guardianship
Subtotal P epartment of Elder Affairs
64,006 CP1PN 41,000
65.003 X9208,A3
65.003 X9238.A3
(Continued)
51
299,962
509,056
809,070
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2021
State Grantor/Pass-Through Grantor/Program Title
Department of Juvenile Justico:
Passed -through from Florida Network of Youth and
Family Services, Inc.:
Children and Families in Need of Services (CINSIFINS)
State Total
CSFA Contract/Grant Provided to State
Number Number Subrecipient Expenditures
80,005
80.005
80.005
Subtotal- Department of Juvenile Justice
Total expenditures of state financial assistance
Total expenditures of federal awards and state financial assistance
See notes to schedule of expenditures of federal awards and state financial assistance.
52
Southeast
Southwest
Northwest
$ 1,167,819
1,730,986
1,740,216
4,639, 021
10,792,886 17,828,131
74,323,151 $ 146,975,964
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
Note 1. Basis of Presentation
The accompanying consolidated schedule of expenditures of federal awards and state financi
assistance (the Schedule) includes the federal award and state financial assistance project
Lutheran Services Florida, Inc. and Subsidiary, under programs of the federal government
of Florida for the year ended June 30, 2021. The information in this Schedule is presen
with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform A
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Unifor
State of Florida Chapter 10.650, Rules of the Auditor General. Because the Schedu
selected portion of the operations of Lutheran Services Florida, Inc. and Subsidi
and does not present the financial position, changes in net assets or cash flow
Florida, Inc. and Subsidiary.
Note 2. Summary of Significant Accounting Policies
ivity of
nd the State
in accordance
inistrative
uidance) and the
presents only a
, it is not intended to
of Lutheran Services
Expenditures reported on the Schedule are reported on the accrual .:sis of accounting. Such
expenditures are recognized following the cost principles containe• in the Uniform Guidance and cost
principles established by the State of Florida Department of Fin- cial Services, wherein certain types of
expenditures are not allowable or are limited as to reimburse nt.
Note 3. Indirect Cost Rate
Lutheran Services Florida, Inc. and Subsidiary has ele- ed not to use the 10% de minimis indirect cost
rate as allowed under the Uniform Guidance.
Note 4. Other
The accompanying Schedule presents feder
through agency. Expenditures of certain f
awarded to Lutheran Services Florida, I
under more than one contract. Total e
assistance project are summarized
expenditures and state financial assistance by pass-
eral programs and state financial assistance projects were
and Subsidiary by more than one pass through agency or
enditures by federal award program and state financial
pages 54-55.
53
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
ALN No. Federal Program or Cluster
Federal
Expenditures
10.558 Child and Adult Care Food Program $ 5,887,041
14.241 Housing Opportunities for Persons with AIDS 723,904
16.575 Crime Victim Assistance 272,368
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program 1,406
19.510 U.S. Refugee Admissions Program 82,058
19.510 COVID-19: U.S. Refugee Admissions Program 9,071
21.019 COVID-19: Coronavirus Relief Fund 322,737
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants 48,117
93.088 Advancing System Improvements for Key Issues in Women's Health 5,800
93.104 Comprehensive Community Mental Health Services for Children with Serious
Emotional Disturbances (SED) 340,340
93.150 Projects for Assistance in Transition from Homelessness (PATH) 879,333
93.243 Substance Abuse and Mental Health Services Projects of Regional an', ational Significance 218,692
93.356 Head Start Cluster: Head Start Disaster Recovery 10,000
93.433 ACL National Institute on Disability, Independent Living, and Reh iiIllation Research 480
93.556 Promoting Safe and Stable Families 464,055
93.558 Temporary Assistance for Needy Families 4,142,536
93.566 Refugee and Entrant Assistance — State Administered Pro', ams 4,879,962
93.567 Refugee and Entrant Assistance — Voluntary Agency Pr• • rams 173,835
93.576 Refugee and Entrant Assistance Discretionary Grant 30,440
93.584 Refugee and Entrant Assistance — Targeted Assist. ce Grants 473,906
93.597 Grants to States for Access and Visitation Progr. s 32,606
93.598 Services to Victims of a Severe Form of Traffi. ing 34,054
93.600 Head Start Cluster: Head Start 55,593,445
93.623 Basic Center Grant 341,277
93.623 COVID-19: Basic Center Grant 30,909
93.645 Stephanie Tubbs Jones Child Welf• Services Program 1081355
93.658 Foster Care — Title IV-E 5,549,550
93.659 Adoption Assistance 165,254
93.665 COVID-19: Emergency Gra to Address Mental and Substance Use Disorders
During COVID-19 531,435
93.667 Social Services Block ant 61,632
93.669 Child Abuse and Ne. ct State Grants 876
93.674 John H. Chafee F.-ter Care Program for Successful Transition to Adulthood 8,552
93.676 Unaccompanies lien Children Program 3,402,974
93.732 Mental and B avioral Health Education and Training Grants 443,358
93.767 Children's . ealth Insurance Program 878,281
93.778 Medicai. luster: Medical Assistance Program 1,373,166
93.788 State 'argeted Response to the Opioid Crisis Grants 12,636,536
93.958 Blo% Grants for Community Mental Health Services 7,644,088
93.959 :.ck Grants for Prevention and Treatment of Substance Abuse 21,308,529
97.010 Citizenship Education and Training 36,875
Total expenditures of federal awards $ 129,147,833
54
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2021
State
CSFA No. State Financial Assistance Project Expenditures
22.016 Florida Network of Children Advocacy Centers $ 51,560
48.108 Voluntary Pre -Kindergarten Education Program 1,207,874
60.074 Out -Of -Home Supports 1,222
60.114 Forensic Services and Competency Restoration Training 823,432
60.115 Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 549,791
60.153 Substance Abuse and Mental Health — Community Services 121,545
60.155 Substance Abuse and Mental Health — Crisis Prevention and Stabilization Services 855,511
60.163 Centralized Receiving Systems 7,490,052
60.183 CBG — Purchase of Therapeudic Services for Children 13,600
60.190 SAMH ME State Funded Federal Excluded Services 1,224,453
64.006 Medical Services for Abused and Neglected Children 41,000
65,003 Public Guardianship 809,070
80.005 Children and Families in Need of Services (CINSIFINS) 4,6391021
Total expenditures of state financial assistance $ 17,828,131
55
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021
Section I — Summary of Auditor's Results
Financial Statements
Type of auditor's report issued on whether the financial
statements audited were prepared in accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None R-.orted
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? X Yes None Reported
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Section 2 CFR 200.516(a)?
Identification of major federal programs:
ALN Number(s)
93.600 and 93.356
93.958
93.778
93.676
93,658
93.566
93.558
es No
Name of Federal Pro_ ram or Cluster:
ead Start Cluster
Block Grants for Community Mental Health Services
Medicaid Cluster
Unaccompanied Allen Children Program
Foster Care — Title IV-E
Refugee and Entrant Assistance — State Administered Programs
Temporary Assistance for Needy Families
Dollar threshold used to distinguish between t .e A
and type B programs: $ 3,000,000
Auditee qualified as low -risk auditee?
X Yes No
(Continued)
56
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2021
Section I — Summary of Auditor's Results (Continued)
State Financial Assistance Projects
Internal control over major programs:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditor's report issued on compliance for
major programs:
Any audit findings disclosed that are required to be
reported in accordance with Chapter 10.650?
Identification of major projects:
CSFA Number(s)
65.003
60.163
60.153
60.114
48.108
Dollar threshold used to distinguish between type A
and type B programs:
Yes
Yes
Yes
X No
X None Repe
n :dified
N e of State Financial Assistance Pro'ect
Public Gu ianship
Central' ed Receiving Systems
Sub ance Abuse and Mental Health — Community Services
ensic Services and Competency Restoration Training
oluntary Pre -Kindergarten Education Program
(Continued)
57
$ 750,000
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2021
Section II — Financial Statement Findings
None reported.
Section III — Findings and Questioned Costs for Federal Awards and State Financia Assistance
Finding No. 2021-001 — Subrecipient Monitoring Risk Assessment
Agency and Award: U.S. Department of Health and Human Services
ALN Numbers:
93.658, Foster Care — Title IV-E
93.566, Refugee and Entrant Assistance — State Administered Progra
Significant Deficiency/Other Matter Compliance
Criteria: Per 2 CFR 200.332(b) and 2 CFR 200.332(e), a pass-thro
subrecipient's risk of noncompliance with federal statutes, regula
each sub -award for purposes of determining appropriate subre
Depending on the risk assessment, the pass -through entity s
performed in order to ensure proper accountability and co
achievements of performance goals.
Condition: During our test work, we noted that the Or
subrecipients, but the Organization did not formally
subrecipients as it pertains to the risk of noncom
and conditions of each sub -award for purposes
to this, a conclusion was not formally reache
to ensure proper accountability and compli
performance goals.
Questioned Costs: None
Context: See "Condition" above.
Effect: This finding is limited t
effect of this finding could b
over the subrecipients wi
compliance with progra
This could result in fe
h entity is required to evaluate each
ns, and the terms and conditions of
lent monitoring requirements.
uld identify monitoring procedures to be
lance with program requirements and
nization conducted an evaluation of three
ocument the evaluation of each of these
ance with federal statutes, regulations, and the terms
f determining appropriate subrecipient monitoring. Due
s to the level of required monitoring for each subrecipient
e with program requirements and achievement of
the subrecipient expenditures of the two programs identified above. The
that the Organization is not performing adequate monitoring procedures
n these two major programs in order to ensure proper accountability and
requirements and achievement of performance goals for their subrecipients.
eral funds being used for improper purposes.
Cause: The Orga ization did not have procedures and controls in place to ensure subrecipient risk
assessments w• re formally documented and approved.
Recomme r ation: We recommend the Organization document a formalized risk assessment for each
subrecipi: t to document its considerations whether subrecipient monitoring procedures in place are
adequ- - to ensure proper accountability and compliance with program requirements and achievement of
perfo ance goals.
V' -w of Res.onsible Officials and Planned Corrective Actions: Management agreements with the finding.
ee Corrective Action Plan.
58
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2021
Finding No, 2021-002 — Federal Funding Accountability and Transparency Act (FFATA)
Agency and Award: U.S. Department of Health and Human Services
ALN Number:
Head Start Cluster:
93.600, Head Start Program
Significant Deficiency/Other Matter Compliance
Criteria: Per 2 CFR 170, direct recipients of grants or cooperative agreements o make first -tier
subawards of $30,000 or more are required to register in the Federal Fundin• ° ccountability and
Transparency Act Subaward Reporting System (FSRS) and report subawadata through FSRS.
Condition: During our testwork, we noted that the Organization did not
requirements. The following table summarizes the results of our testi
mply with FFATA reporting
subaward Subaward
Subaward Not Report Not Amount Missing Key
Transactions Tested Reported Timel Incorrect Elemets
2
2 0 0 0
Subaward 5ubaward
Dollar Amount of Subaward Not ported Not Amount Misisng Key
Tested Transactions Reported Timely Incorrect Elements
$ 3,175,201 $ 3,175,2►. $ - $ - $
Questioned Costs: None
Context: This finding is isolated to the " -porting" direct and material compliance requirement.
Effect: Due to the Organization not egistering their subawards within the FSRS, it is possible that the
federal agency may have misinfo ation about the subrecipient or the nature of the subrecipient
agreement.
Cause: The Organization
requirement.
not have controls in place to identify and continually monitor this compliance
Recommendation: W- recommend the Organization identify and execute policies and control procedures
in order to ensure - at all direct subawards made are properly reported in FSRS. This could include
having a process n place to ensure that new subaward agreements are evaluated for FFATA compliance
upon executio of the award as well as having processes in place to monitor existing subawards. We also
recommend •.ntrol procedures be developed in order to identify the applicability of compliance
requireme s to the Organization.
Views ► Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See
Corr tive Action Plan.
59
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January 31, 2022
Lutheran Services Florida
CORRECTIVE ACTION PLAN
YEAR ENDED JUNE 30, 2021
Identifying Number: 2021-001- Subrecipient Monitoring Risk Assessment
Finding: During their test work, RSM noted that the Organization conducted an evaluatio of three
subrecipients, but the Organization did not formally document the evaluation of each o ' these
subrecipients as it pertains to the risk of noncompliance with federal statutes, regula .ns, and the terms
and conditions of each sub -award for purposes of determining appropriate subreci%lent monitoring. Due
to this, a conclusion was not formally reached as to the level of required monitor' g for each subrecipient
to ensure proper accountability and compliance with program requirements a achievement of
performance goals.
LSF Comments: Lutheran Services Florida currently has 72 subrecipien : of State and Federal funding
approximating $138 million dollars. We have met the subrecipient mo oring requirements for those
subrecipients for many years. The subrecipient agreements referen'ed above were agreements entered
into during fiscal year 2020 for a total of $1.1 million dollars in a di -rent line of business than our current
subrecipients. Given the Covid pandemic and staffing constrain , we were unable to fully document the
evaluation of each of these subrecipients during fiscal year 20 1.
Corrective Actions Taken or Planned: After our fiscal year nded June 30, 2021, LSF did document a
formalized risk assessment approach to be taken for th-:e subrecipients. In January 2022, risk.
assessment checklists were sent to the subrecipients entioned above. Those checklists have been
returned to LSF and a full risk assessment monitor' • will take place in February 2022. In addition, risk
assessments will be completed annually for these -ubrecipients.
Identifying Number: 2021-002- Federal F ding Accountability and Transparency Act (FFATA)
Finding: Per 2 CFR 170, direct recipient- of grants or cooperative agreements who make first -tier
subawards of $30,000 or more are re. fired to register in the Federal Funding Accountability and
Transparency Act Subaward Report' g System (FSRS) and report subaward data through FSRS.
LSF Comments: LSF was unaw- e of this requirement that has been in effect since October 2010 and
this issue was not identified in . ny prior audits. This requirement applies to 4 LSF subcontracts in our
Head Start program.
Corrective Actions Take or Planned: LSF will enter the required data into the Federal Funding
Accountability and Tr sparency Act Subaward Reporting System (FSRS) for these 4 contracts in
February/March 20 and will continue this practice of reporting the data when entering into a new
contract or ameng/renewing a current contract per the FFATA requirements.
The responsib - person for correcting both findings is the Chief Financial Officer.
Sincerely,
-7-1441
obert Wydra
Chief Financial Officer
60
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Lutheran Services Florida, Inc.
and Subsidiary
Consolidated Financial and Compliance Report
June 30, 2022
Contents
Independent auditor's report
Financial statements
Consolidated statements of financial position
Consolidated statements of activities
Consolidated statements of functional expenses
Consolidated statements of cash flows
Notes to consolidated financial statements
Supplementary information
SUBSTITUTED
4
5
6-7
8
9-27
Schedule of government grants and contracts 28
Schedule of substance abuse and mental health services, progra cost center
actual expenses and revenues:
Part I: Actual funding sources and revenues 29-35
Part II: Actual expenses 36-42
Schedule of state earnings 43
Schedule of bed -day availability payments 44
Schedule of related party transaction adjust► ents 45
Independent auditor's report on:
Internal control over financial reportin ; and on compliance and other matters
based on an audit of financial sta •ments performed in accordance with
Government Auditing Standard 46-47
Compliance for each major fed- -I program and state financial assistance
project and report on intern - control over compliance required by the Uniform
Guidance and State of FI• ida Chapter 10.650, Rules of the Auditor General 48-50
Schedule of expenditures federal awards and state financial assistance 51-54
Notes to schedule of penditures of federal awards and state financial assistance 55-57
Schedule of findinss and questioned costs 58-60
Summary sch: rule of prior year audit findings 61-62
SUBSTITUTED
RS
.ivi US LLP
Independent Auditor's Report
Board of Directors
Lutheran Services Florida,, Inc.
Report on the Audit of the Financial Statements
Opinion
We have audited the consolidated financial statements of Lutheran Service lorida, Inc. and its
subsidiary (the Organization), which comprise the consolidated statement- of financial position as of
June 30, 2022 and 2021, the related consolidated statements of activiti-., functional expenses and cash
flows for the years then ended, and the related notes to the consolida -d financial statements
(collectively, the financial statements).
In our opinion, the accompanying financial statements present f. rly, in all material respects, the financial
position of the Organization as of June 30, 2022 and 2021, a the changes in their net assets and their
cash flows for the years then ended in accordance with accnting principles generally accepted in the
United States of America.
Basis for Opinion
We conducted our audits in accordance with auditin standards generally accepted in the United States
of America (GAAS) and the standards applicable . the financial audits contained in Government Auditing
Standards, issued by the Comptroller of the Uni -d States (Government Auditing Standards). Our
responsibilities under those standards are furt- er described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our r-.ort. We are required to be independent of the Organization
and to meet our other ethical responsibiliti• s, in accordance with the relevant ethical requirements relating
to our audits. We believe that the audit = idence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Responsibilities of Managemen far the Financial Statements
Management is responsible for e preparation and fair presentation of the financial statements in
accordance with accounting pnciples generally accepted in the United States of America, and for the
design, implementation and aintenance of internal control relevant to the preparation and fair
presentation of financial s tements that are free from material misstatement, whether due to fraud or
error.
In preparing the fin cial statements, management is required to evaluate whether there are conditions or
events, considere' in the aggregate, that raise substantial doubt about the Organization's ability to
continue as a g. g concern within one year after the date that the financial statements are issued or
available to b- issued.
'OWER OF BEING LINDERST000
J[ I 1AX CONSULT NG
1
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assuranc
and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Governme
Auditing Standards will always detect a material misstatement when it exists. The risk of not detec ' g a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud m involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
Misstatements are considered material if there is a substantial likelihood that, individually or the
aggregate, they would influence the judgment made by a reasonable user based on the fi : ncial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standar
we:
• Exercise professional judgment and maintain professional skepticism throu• out the audit.
* Identify and assess the risks of material misstatement of the financial st- ements, whether due to
fraud or error, and design and perform audit procedures responsive to ose risks. Such procedures
include examining, on a test basis, evidence regarding the amounts : nd disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the au
that are appropriate in the circumstances, but not for the pu
effectiveness of the Organization's internal control. Accor
in order to design audit procedures
ose of expressing an opinion on the
gly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies u :ed and the reasonableness of significant
accounting estimates made by management, as we as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are onditions or events, considered in the aggregate, that
raise substantial doubt about the Organizati •n's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with tho
the planned scope and timing of the au •' , significant audit findings and certain internal control -related
matters that we identified during the audit.
Other Matters
Supplementary Information
Our audit was conducted fo he purpose of forming an opinion on the financial statements as a whole.
The accompanying sched . e of expenditures of federal awards and state financial assistance, as required
by Title 2 U.S. Code of ederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit 'equirements for Federal Awards and State of Florida Chapter 10.650, Rules of the
Auditor General, re •ectively, and other supplementary information is presented for purposes of
additional analysi and is not a required part of the financial statements. Such information is the
responsibility of anagement and was derived from and relates directly to the underlying accounting and
other records sed 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 • •mparing and reconciling such information directly to the underlying accounting and other
records .sed to prepare the financial statements or to the financial statements themselves, and other
additi• al procedures in accordance with auditing standards generally accepted in the United States of
Am: ica. In our opinion, the information is fairly stated, in all material respects, in relation to the financial
st,. ements as a whole.
charged with governance regarding, among other matters,
2
SUBSTITUTED
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 22,
2022, on our consideration of the Organization's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts and grant agreements and othe
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on e
effectiveness of the Organization's internal control over financial reporting or on compliance. Threport
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the Organization's internal control over financial reporting and compliance.
51.f vs .L4P
Orlando, Florida
December 22, 2022
3
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Financial Position
June 30, 2022 and 2021
Assets
Current assets:
Cash and cash equivalents
Accounts receivable, net (Note 3)
Current portion of gifted facilities (Note 6)
Prepaid expenses
Total current assets
Investments (Note 2)
Assets limited as to use (Note 2 and 13)
Beneficial interest in assets held by others (Notes 2 and 5)
Gifted facilities, net of current portion (Note 6)
Property and equipment, net (Note 4)
Other assets
Total assets
Liabilities and Net Assets
Current liabilities:
Accounts payable (Note 7)
Accrued salaries and payroll related expenses
Other accrued expenses
Refundable advances
Current portion of capital lease obligations (No
Current portion of note payable (Note 9)
Total current liabilities
2022
021
$ 18,977,876 $ 20,180,768
40,119,59 22,671,764
1,799,1 1,945,428
1,180 83 1,189,707
62,0 .,804 45,987,667
,088,691 1,246,560
285,948 280,812
878,331 996,448
2,436,944 2,925,122
5,921,886 4,990,412
322,342 256,424
$ 73.010,946 $ 56,683,445
$ 39,029,240
7,454,648
1,481,830
9,938,677
10) 381,711
251,377
Capital lease obligations, net of current .ortion (Note 10)
Note payable, net of current portion ( .te 9)
Total liabilities
Commitments and contingenci= (Notes 10, 14, 16, 19 and 21)
Net assets (Notes 11 and
Without donor restricti. s
With donor restrictio's
Total net . sets
Total bilities and net assets
See note to consolidated financial statements.
4
$ 18,664,631
6,864,645
2,152,541
13,410,708
417,619
239,739
58,537,483
669,826
1,872,343
41,749,883
1,051,536
2,123,719
61,079,652
44,925,138
3,654, 370
8,276, 924
3,459,296
8,299,011
11,931,294
11,758,307
$ 73,010,946 $ 56,683,445
Luther • ' Services Florida, Inc. and Subsidiary
Consolidated tements of Activities
Years Ended Jun- 0, 2022 and 2021
Revenues and support:
Government grants and contracts
In -kind contributions (Note 15)
Contributions
Program service fees
Other income, net
Investment (loss) income, net
Change in value of beneficial interest in
assets held by others
Net assets released from restrictions (Note 11)
Total revenues and support
Expenses:
Program services
Supporting services
Total expenses
Change in net assets
Net assets:
Beginning
Ending
See notes to consolidated financial statements.
2022
Without Donor With Donor
Restrictions Restrictions
$ 294,846,365 $
2,869,628
747,402
1,080,468
642,929
2,551)
2,989,316
303,013,557
294,055,776
8,762,707
302,818,483
195,074
3,459,296
Total
$ 294,846,365
2,869,628
3,085,346 3,832,748
1,080,468
642,929
(162,551)
(118,117) (118,117)
(2,989,316)
(22,087) 302,991,470
2021
Without Donor With Donor
Restrictions Restrictions
$ 257,724,512 $
3,205,638
523,614
1,048,301
264,586
331,771
(52,320)
2,543,482
265,589,584
294,055,776 255,867,497
8,762,707 8,347,602
,818,483 264,215,099
(22,087) 17 ,'87 1,374,485
8,299,011 11,758,307 ,084,811
$ 3,654,370 $ 8,276,924 $ 11,931,294 $ 3,45
5
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1,840,905
220,477
(2,543,482)
(482,100)
Total
$ 257,724,512
3,205,638
2,364,519
1,048,301
264,586
331,771
168,157
265,107,484
255, 867,497
8,347,602
264,215,099
(482,100) 892,385
8,781,111 10,865,922
$ 8,299,011 $ 11,758,307
Luthe ' Services Florida, Inc. and Subsidiary
Consolidated tement of Functional Expenses
Year Ended June t 2022
Program Services
Supporting Services
S tance
Abuse - d Youth and Total General Total
Mental Hea Children Family Resettlement Adult Program and Supporting Total
Services Services Services Services Services Services Administrative Advancement Services Expenses
Salaries $ 3,814,091 $ - 164,603 $ 20,842,342 $ 7,564,685 $ 853,390 $ 55,239,111 $ 5,134,887 $ 314,875 $ 5,449,762 $ 60,688,873
Payroll taxes and employee benefits 693,597 5, c 513 4,581,387 1,655,565 209,366 12,988,428 1,045,276 52,858 1,098,134 14,086,562
Total salaries and
related expenses 4,507,688 28,013,116 25,423,729 9,220,250 1,062,756 68,227,539 6,180,163 367,733 6,547,896 74,776,435
Professional fees and contract services 690,337 1,573,230 312,919 118,122 139,305 3,033,913 626,073 9,460 535,533 3,669,446
Subcontractorexpenses 168,817,435 17,583,438 726 614,735 - 187,868,334 - - - 187,868,334
Office expenses and program supplies 358,247 4,329,281 522,_ • 470,914 21,889 5,703,011 138,224 1,566 139,790 5,842,801
Food 1,750,574 258,856 207,646 197 2,217,273 - 21 21 2,217,294
Assistance to individuaIs 4,591,112 87,107 3,050,985 98,613 7,828,017 - 7,828,017
Occupancy 255,097 4,2110,636 1,003,498 215,043 114,735 6,789,009 594,033 11,397 605,430 7,394,439
Repairs and maintenance 1,989 2,638,910 997,524 514 10,074 3,336,011 55,248 1,710 56,958 3,392,969
Equipment costs 260,897 333,710 115,849 130, - 24,396 855,075 178,017 15,552 193,569 1,048,644
Insurance and taxes 35,160 621,902 471,575 131,839 18,654 1,275,130 108,530 1,795 110,325 1,389,455
Transportation and travel 267,477 895,619 996,285 307,840 29,543 2,496,764 157,889 14,460 172,349 2,669,113
Postage, printing and publication 52,232 197,888 33,386 47,557 11,650 342,715 44,235 17,251 61,486 404,201
Interest 77,849 - - - 77,849 120,346 - 120,345 198,194
In -kind expenses (Note 15) 2,575,700 114,816 179,112 2,869,628 - 2,869,628
Other operating expenses (17,873) 78,936 174,212 23,709 36,757 295,741 (20,927) 40,049 19,122 314,863
Total expenses before
depredation and
amortization 175,418,686 69,431,901 30,865,164 15,905,489 1,568,769 293,2 , 009 3,181,830 480,994 8,662,824 301,882,833
Depredation and amortization 11,445 669,105 55,144 93,911 6,162 835,767 99,883 99,883 935,650
Total expenses
S 175,430,131 5 70.131,006 $ 30,920,308 $ 15,899,400 $ 1,574,931 $ 294,055,776 S ,281,713 $ 480,994 $ 8,762,707 S 302,818.483
See notes to consolidated fnancia[ statements.
6
Luthera Services Florida, Inc. and Subsidiary
Consolidated tement of Functional Expenses
Year Ended June + 2021
Program Services Supp❑rting Services
S nce
Abuse -.d Youth and Total General Total
Mental Heal I Children Family Resettlement Program and Supporting Total
Services Services Services Services Adult Services Services Administrative Advancement Services Expenses
Salaries $ 3,429,440 5 085,477 5 17,369,949 5 4,527,753 $ 873,740 $ 49,786,359 $ 4,526,977 $ 267,179 $ 4,794,156 3 54,580,515
Payroll taxes and employee benefits 674,317 6,3•- 295 4,098,219 1,043,906 228,772 12,386,509 1,009,981 51,283 1,061 264 13,447,773
Total salaries and
related expenses 4,103,757 29,426,772 21,968,168 5571,659 1,102,512 62,172,868 5,536,958 3113,462 5,855,429 68,028,288
Professional fees and contract services 530,448 1,484,587 315,272 107,083 120,051 2,557,441 593,113 23,851 516,964 3,174,405
Subcontractor expenses 141,986,538 18,308,894 1, ' 413 724,743 - 162,455,588 - - - 162,455,588
Office e>penses and program supplies 107,228 4,072,204 438, 752,281 51,456 5,421,487 130,315 3,554 133,869 5,555,356
Food 1,340,710 214,276 41,547 - 1,596,533 1,596,533
Assistance to individuals 4,276.501 56,994 451,144 498,209 5,282,848 5,282,848
Occupancy 233,173 4,077,785 735,338 ' 043,864 114,248 6,257,408 571,183 15,351 586,534 6,843,942
Repairs and maintenance 434 1,786,622 249,256 1 994 6,848 2,211,154 23,313 797 24,110 2,235,264
Equipment casts 197,695 444,812 100082 63,48,917 814,915 154,109 25,551 179,660 994,575
insurance and taxes 27,521 558,822 338,666 74,852 17,596 1,027,457 92,164 1,307 93,471 1,120,928
Transportation and travel 34,617 776,465 744,454 58,009 23,385 1,635,930 84,399 10,961 95,360 1,732,290
Postage, panting and publication 67,086 78,975 49.745 28,449 10,865 235,120 36,101 10,991 47,092 282,212
Interest 103,227 - - 103,227 170,546 170,546 273,773
In -kind expenses (Note 15) - 3,049,669 110,366 45,603 3,205,638 - - - 3,205,638
Other operating expenses 42,170 94,507 123,601 8,313 29,808 298,399 414,633 3,642 418,275 716,674
Total expenses before
depreciation and
amortization 147,333,637 69,890,5522 26,929,949 9,138,950 1,983,895 255,2 ' 013 7,806,834 414,467 8,221 301 263 498,314
Depreciation and amortization 9,361 474,163 64,821 35,977 6,162 590,484 126,301 _ 126,301 716,785
Total expenses S 147,343,028 $ 70,364.715 $ 26,994.770 $ 9.174.927 5 1.990,057 $ 255,867,497 S 933,135 $ 414.467 $ 8.347,602 S 264,215,099
See notes to consolidated financial statements_
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Lutheran Services Florida, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Years Ended June 30, 2022 and 2021
2022 021
Cash flows from operating activities:
Change in net assets $ 172,987 892,385
Adjustments to reconcile change in net assets to net cash
provided by operating activities:
Depreciation and amortization 935,6716,785
Gain on sale/disposal of property and equipment (240 83)
Net realized and unrealized losses (gains) on investments
and assets limited as to use 34,500 (263,958)
Change in value of beneficial interest in assets held by others 118,117 (168,157)
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable (17,447,830) (1,172,649)
Prepaid expenses 9,524 (139,950)
Gifted facilities 634,455 1,637,548
Other assets (65,918) (76,106)
Increase (decrease) in:
Accounts payable 20,364,609 (5,489,801)
Accrued salaries and payroll related expenses 590,003 1,092,802
Other accrued expenses (670,711) 1,484,110
Refundable advances (3,472,031) 9,770,744
Net cash provided by operating activities 1,162,572 8,283,753
Cash flows from investing activities:
Purchases of investments and assets limited .. to use (339,689) (223,659)
Proceeds from the sale of investments 257,922 146,631
Purchases of property and equipment (2,171,685) (1,050,964)
Proceeds from the sale of property and • quipment 545,344
Net cash used in investing tivities (1,708,108) (1,127,992)
Cash flows from financing activitie
Principal payments on capital I,:se obligations (417,618) (391,017)
Repayments of note payable (239,738) (227,501)
Net cash used in ancing activities
Net (decrease increase in cash and cash equivalents
Cash and cash equ alents:
Beginning
(657,356) (618,518)
(1,202,892) 6,537,243
20,180,768 13,643,525
Ending $ 18,977,876 $ 20,180,768
Supplem ntal disclosure of cash flow information:
Cas .aid during the year for interest $ 198,194 $ 273,773
ee notes to consolidated financial statements.
8
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies
Nature of activities: Lutheran Services Florida, Inc. (LSF) was organized on July 1, 1982, as a onprofit
organization to provide various social ministries throughout the state of Florida. LSF's progra are
funded by federal, state and local governmental grants and contracts, various program sery e fees,
contributions, church grants and other sources.
LSF is the sole member of Lutheran Non-profit Management Services, LLC d/b/a LSF ealth Systems
(LSF Health), which was organized on August 13, 2010, to govern and advise LSF' anaging entity
contract over substance abuse and mental health services provided in the northeast region of Florida
effective July 1, 2012.
The principal social services provided by Lutheran Services Florida, Inc. an. Subsidiary include services
to children, troubled youth and their families, refugees, the unemployed, i apacitated adults and victims
of disasters through the following programs:
Substance abuse and mental health services: Provides substan abuse and mental health services
to adults and children in 23 counties in northeast Florida.
Children services: Provides preschool care for disadvantag
children in licensed day care homes.
children in licensed facilities and meals to
Youth and family services: Provides residential, coun ling and case management services to teens
and their families.
Resettlement services: Provides job training, co seling, financial assistance and placement to new
entrants to the United States.
Adult services: Provides guardianship and are management programs to elderly, mentally
incapacitated and disabled persons. Also . rovides temporary and permanent housing for the homeless
and health care treatment to low incom IV -infected individuals.
The following Lutheran judicatories e the founding members of LSF: the Florida -Bahamas Synod of the
Evangelical Lutheran Church in A' erica and the Florida -Georgia District of the Lutheran Church -Missouri
Synod.
A summary of the Organiza '.n's significant accounting policies follows:
Principles of consolid. ion: The consolidated financial statements include the accounts of LSF and
LSF Health (collective , the Organization), All significant intercompany transactions have been
eliminated in consol':ation.
Basis of accou ing: The accompanying consolidated financial statements have been prepared on the
accrual basis accounting.
Basis of , esentation: A nonprofit organization is required to report information regarding its financial
position : nd activities according to two classes of net assets: without donor restrictions and with donor
restri ons. Accordingly, net assets of the Organization and changes therein are classified and reported
as f• ows:
et assets without donor restrictions: Net assets that are not subject to donor -imposed stipulations but
may be designated for specific purposes by action of the board of directors.
9
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Net assets with donor restrictions: Net assets subject to donor -imposed stipulations that ' ay or will be
rnet either by actions of the Organization, passage of time, or permanently maintained by e
Organization. When a restriction expires, net assets with donor restrictions are reclassif>d to net assets
without donor restrictions and reported in the consolidated statements of activities as ► -t assets released
from restrictions.
Use of estimates: The preparation of consolidated financial statements in acco,•ance with generally
accepted accounting principles requires management to make estimates and ssumptions that affect the
reported amounts of assets and liabilities, and the disclosure of contingent ,.sets and liabilities at the
date of the consolidated financial statements and the reported amounts of evenues and expenses during
the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents: Cash and cash equivalents includes . highly liquid fixed income
instruments purchased with original maturities of three months or •ss.
Concentrations of credit risk: The Organization's financial i
concentrations of credit risk include cash and cash equivale
related accounts receivable. Cash and cash equivalents i
financial institutions. Such accounts may at times excee
not experienced any losses on such accounts. The Or
includes concentrations primarily from federal and s
revenues from federal and state programs could
reduction in the program services offered by the
any such changes in the near term.
truments that are exposed to
s and government grants and contracts and
lude accounts placed with federally insured
federally insured limits. The Organization has
anization's operating support and revenues
to programs. Changes in operating support and
nificantly impact the Organization, including a
rganization; however, management does not anticipate
Accounts receivable: Accounts receivab - under grants and funding contracts and program service fees
are due in less than one year. Manage -nt believes accounts receivable under grants and funding
contracts are fully collectible and has ►ot provided an allowance for doubtful accounts. Accounts
receivable for program service fees -re stated at unpaid balances, less an allowance for doubtful
accounts. The Organization provi. -s for losses on accounts receivable based on historical experience
and any other circumstances w 'ch may affect the ability of payors to meet their obligations. It is the
Organization's policy to charg- off uncollectible accounts when management determines the accounts
receivable will not be collec -d.
Gifted facilities: The O-•anization accounts for gifted facilities as contributions with donor restrictions in
the period in which the right to use the asset is acquired, at the fair value of the benefit expected to be
received over the e •ected term of use by the Organization and is released from restrictions when used.
A gifted facilities .:set is recorded for any future benefit expected to be recognized and is amortized to
rent expense a e Organization uses the facilities over the term of the applicable lease.
Investment and investment (loss) income, net: Investments are reported at fair value. Investment
(loss) inc. e, net, reported in the accompanying consolidated statements of activities, includes realized
and unr:.lized gains and losses and interest and dividend income, net of investment expenses, as
incre_ .es or decreases in net assets without donor restrictions.
A ets limited as to use: Assets limited as to use include investments held by trustees to fund the
upplemental Executive Retirement Plan (SERP) as more fully described in Note 13.
10
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Property and equipment: Property and equipment are recorded at cost, if purchased or at esti ' ated fair
value at the date of receipt if acquired by gift, and those in excess of $5,000 are capitalized. 1 -preciation
expense related to property and equipment is computed using the straight-line method over e estimated
useful lives of the related assets, Leasehold improvements are amortized over the shorte •f the
remaining lease term or the useful life of the asset. Maintenance and repairs are charg-. to operations
when incurred. Betterments and renewals are capitalized. When property and equip nt are sold or
otherwise disposed of, the asset account and the related accumulated depreciation account are relieved,
and any gain or loss included in operations.
Property acquired with governmental funds is considered to be owned by the
the program for which it was purchased or in future authorized programs; h
as the ownership of any proceeds therefrom is subject to applicable regul
rganization while used in
ever, its disposition as well
ions.
Impairment of long-lived assets: The carrying value of property an quipment is reviewed for
impairment whenever events or changes in circumstances indicate ch value may not be recoverable.
Recoverability of assets or asset groups to be held and used is m- asured by a comparison of the carrying
amount of an asset or asset group to future net cash flows exp ted to be generated by the asset or
asset group. If such assets or asset groups are considered to •e impaired, the impairment to be
recognized is measured by the amount by which the carryi amount of the assets exceeds the fair value
of the assets or asset group. Assets or asset groups to b- disposed of are reported at the lower of the
carrying amount or fair value less cost to sell. No impair ent of the Organization's long-lived assets or
asset groups have been recognized during the years ded June 30, 2022 and 2021.
Revenue recognition; The Organization first detmines if a transaction represents an exchange
transaction and, if so, accounts for the transactin in accordance with Financial Accounting Standards
Board (FASB) Accounting Standards Codific- on (ASC) 606, Revenue from Contracts with Customers
(Topic 606), which provides a five -step mo• I for recognizing revenue form contracts with customers as
follows:
• Identify the contract with a cu.'omer
• Identify the performance •..ligations in the contract
•
•
•
Determine the transa- ion price
Allocate the tran action price to the performance obligations in the contract
Recognize r
enue when or as performance obligations are satisfied
The Organizatio ' revenue from contracts with customers consists of program fees. The Organization's
contracts have : single performance obligation. The transaction price is the amount of consideration to
which the Or; -nization expects to be entitled in exchange for transferring services to the customer.
Revenue i ecorded based on transaction price, which is a fixed consideration, Performance obligations
are satisf -d at a point in time, at which point revenue is recognized. Revenue recognized from program
fees to :led $1,080,468 and $1,048,301 for the years ended June 30, 2022 and 2021, respectively.
Rece able balances, net of an allowance for doubtful accounts, were $851,522, $580,874, and $825,847
as June 30, 2022, June 30, 2021, and July 1, 2020, respectively. These balances are included in
counts receivable, net on the consolidated statements of financial position. There were no deferred
evenue balances for program services as of June 30, 2022, June 30, 2021, and July 1, 2020.
11
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
The Organization performs an evaluation at contract inception focused on whether a performer
obligation is satisfied over time or at a point in time. If a performance obligation meets certain : .ecific
criteria, the related revenue is recognized over time as the customer consumes the receive he benefits
of the Organization's services as they are performed. If certain criteria are not met, the re -nue is
recognized at a point in time.
The revenue stream noted above does not include significant financing component -s the performance
obligations are typically satisfied within a year of receipt of payment. Economic do nturns can affect the
level of revenue or can have a positive impact on cash flow in good economic ti ' es.
Contributions and donor -imposed restrictions: Unconditional promises give are recognized as
contributions in the period received at their fair value. Conditional contrib ons or promises to give are
not recognized until they become unconditional, that is, when the cond. '•ns on which they depend are
substantially met. Contributions other than cash are recorded at their timated fair value on the date
received.
Unconditional contributions received are recorded as net asset ithout donor restrictions or net assets
with donor restrictions support depending on the existence or ature of any donor -imposed restrictions.
Contributions that are restricted by the donor are reported - : increases in net assets without donor
restrictions if the restrictions expire or are otherwise satisf d in the fiscal year in which the contributions
are recognized. When a donor -imposed restriction expires, that is, when a stipulated time restriction ends
or purpose restriction is accomplished, net assets wit donor restrictions are reclassified into net assets
without donor restrictions and are reported in the a ompanying consolidated statements of activities as
net assets released from restrictions.
Donated materials are reflected in the accom►-nying consolidated financial statements at their estimated
fair value at date of receipt. Donated servic are recognized and recorded at their estimated fair value
only to the extent they create or enhance onfinancial assets or require specialized skills, are provided by
individuals possessing those skills, and ould typically need to be purchased if not provided by donation.
The Organization records donated go ds and services as in -kind support and expenses in the
accompanying consolidated statem- is of activities and consolidated statements of functional expenses.
Government grants and contr
transactions if each party rec
transactions are not consid
time as performance obli
designated purpose. F
cts: Government grants and contracts are considered exchange
es and sacrifices commensurate value. Funds from these exchange
ed contributions and are deemed to be earned and reported as revenue over
tions are met based on when such funds have been expended towards the
ds received in advance and not yet earned are recorded as deferred revenue.
Government grants nd contracts not considered exchange transactions are recognized as revenue when
the funds are utili- -d by the Organization to carry out the activity stipulated by the grant or contract
thereby satisfyi • imposed barriers and/or rights of return. The grants and contracts can be terminated by
the grantor or efunding can be required under certain circumstances coupled with other performance
and/or cont .1 barriers. For these reasons, these grant and contract agreements are considered
condition.. Accordingly, amounts received, but not recognized as revenue, are classified in the
consoli. -ted statements of financial position as refundable advances.
12
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Functional expense allocations: The costs of providing the various programs and supporting ervices
have been summarized on a functional basis in the consolidated statements of activities and ' the
consolidated statements of functional expenses. Accordingly, certain costs have been allot, ed among
the various programs and supporting services benefited. Salaries and related payroll exp- ses are
allocated among functional categories based on the estimated proportion of time spent • each function.
All other expenses are allocated based on management's estimate of the relative fun- Tonal activity.
Income taxes: The Organization is exempt from federal income taxes under Se on 501(c)(3) of the
Internal Revenue Code and from state income taxes under similar provisions o he Florida Statutes. LSF
is the sole member of LSF Health, which is considered a disregarded entity f. federal and state income
tax purposes. Therefore, no provision for income taxes has been included ithe accompanying
consolidated financial statements.
The Organization follows accounting standards relating to accountin
Management assessed whether there were any uncertain tax posit
liabilities and determined that there were no such matters requiri
consolidated financial statements. Generally, the Organization
income tax examinations by tax authorities for years before J
or uncertainty in income taxes.
ns which may give rise to income tax
recognition in the accompanying
no longer subject to U.S. federal or state
ne 30, 2019.
Fair value measurements: The Organization measures ' s financial assets and liabilities at fair value
using a three-tier hierarchy, which prioritizes the inputs sed in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in ac e markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobserv. •le inputs (Level 3 measurements).
The three levels of the fair value hierarchy are ►escribed below:
Level 1: Valuation based on unadjusted
liabilities.
Level 2: Valuation based on obsery
oted market prices in active markets for identical assets or
le quoted prices for similar assets and liabilities in active markets.
Level 3: Valuation based on in ■. 4ts that are unobservable and are supported by little or no market
activity, therefore re• •firing management's best estimate of what market participants would use
as fair value.
A financial instrument's I el within the fair value hierarchy is based on the lowest level of any input that is
significant to the fair v. e measurement.
The following meth
ds and assumptions were used to estimate the fair value of financial instruments:
Level 1: The rganization's Level 1 investments include money market funds, fixed income and equity
se. rities and real asset funds.
Level 2:
he Organization's Level 2 investments include the beneficial interest in assets held by others
and is valued based on information provided by the Community Foundations (see Note 5)
which is primarily derived from or corroborated by observable market data as it relates to the
Community Foundations' underlying investments.
evel 3: The Organization's Level 3 investments include the beneficial interest in the Zerbst perpetual
trust and is valued based on the value of the underlying investments held in the trust.
13
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies (Continued)
Recently adopted accounting pronouncements: Effective July 1, 2021, the Organization
retrospectively adopted FASB Accounting Standards Update (ASU) 2020-07, Not -for -Profit E sties (Topic
958): Presentation and Disclosure by Not -for -Profit Entities for Contributed Nonfinancial As ts. The ASU
requires a not -for -profit organization to present contributed nonfinancial assets as a separe line item in
the statements of activities, apart from contributions of cash or other financial assets. T - ASU also
requires enhanced disclosure, including disaggregation of nonfinancial assets recogni ed by category
and qualitative information about each category. The adoption of this ASU resulted expanded
disclosure.
Recently issued accounting pronouncements: Certain accounting pronou ements which have been
recently issued by the FASB and are relevant to the Organization are as foll .ws:
In February 2016, the FASB issued its new lease accounting guidance
842). Under the new guidance, lessees will be required to recognize t
exception of short-term leases) at the commencement date: (1) a le
obligation to make lease payments arising from a lease, measure
of -use asset, which is an asset that represents the lessee's righ
asset for the lease term. Lessees will no longer be provided w
Lessees must apply a modified retrospective transition appr
after, the beginning of the earliest comparative period pre
entities should apply the amendments for fiscal years b
Organization believes this ASU will have a material i
The FASB has issued certain new or modification
in addition to the ASU's described above. The
does not believe that any other new or modifi
Organization's reported financial position or
i - ASU 2016-02, Leases (Topic
following for all leases (with the
e liability, which is a lessee's
on a discounted basis and (2) a right -
a use, or control the use of, a specified
a source of off -balance sheet financing.
ach for leases existing at, or entered into
nted in the financial statements. Nonpublic
inning after December 15, 2021. The
act on the consolidated financial statements.
to, or interpretations of, existing accounting guidance
ganization has considered the new pronouncements and
guidance will have a material impact on the
ctivities in the near term.
Subsequent events: The Organization as evaluated subsequent events through December 22, 2022,
the date on which the consolidated fi • ncial statements were available to be issued.
14
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments
The following table summarizes major categories of the Organization's assets measured at fair
recurring basis as of June 30, 2022 and 2021:
2022
Level 1 Level 2
Investments:
Money market funds $ 39,210 $ - $
Equity securities:
Emerging market funds 247,014
Preferred stock 22,556 -
Index funds 17,797 -
Convertible securities 20,788
Large growth funds 119,273
Large cap funds 144,862
Fixed income securities:
Index bond funds 42,457
Intermediate duration bond funds 143,908 -
Corporate bond funds 120,434
Government bond funds 119,644
Real asset funds 50,748 -
Level 3
ue on a
Total
$ 39,210
247,014
22,556
17,797
20,788
119,273
144,862
42,457
143,908
120,434
119,644
50,748
Total investments 1,088,691 - 1,088,691
Assets limited as to use:
Money market funds 11, :1 - 11,281
Equity securities:
Large blend funds 1,170 81,170
Emerging market funds 65,304 - 66,304
Index funds 15,470 - 15,470
Fixed income securities:
Index bond funds 15,785 - 15,785
Short duration funds 30,716 30,716
Global bond funds 33,935 33,935
Intermediate duration bond fun. 32,287 32,287
Total assets limited as • use 285,948 - 285,948
Beneficial interest in:
Assets held by others - 143,707 143,707
Perpetual trust - - 734,624 734,624
Total beneficiinterest in
assets h- : by others 143,707 734,624 878,331
$ 1,374,639 $ 143,707 $ 734,624 $ 2,252,970
15
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 2. Fair Value of Financial Instruments (Continued)
2021
Level 1 Level 2 Level 3 Total
Investments:
Money market funds $ 26,866 $ $ 26,866
Equity securities:
Emerging market funds 72,612 - 72,612
Small/mid cap funds 56,151 - 56,151
Preferred stock 24,584 24,584
Index funds 23,820 - 23,820
Convertible securities 25,499 - 25,499
Large growth funds 157,125 - 157,125
Large cap funds 159,967 159,967
Internationally developed funds 226,688 - 226,688
Fixed income securities:
Index bond funds 79,361 - 79,361
Intermediate duration bond funds 86,002 86,042
Corporate bond funds 112,842 112,842
Government bond funds 132,442 - 132,442
Real asset funds 62,601 - 62,601
Total investments 1,246,560 1,246,560
Assets limited as to use:
Money market funds 14,0 F. - 14,020
Equity securities:
Large blend funds 8.,671 - 80,671
Emerging market funds •4,189 - 64,189
Index funds 17,727 17,727
Fixed income securities:
Index bond funds 15,764 - 15,764
Short duration funds 27,359 27,359
Global bond funds 31,348 31,348
Intermediate duration bond fund 29,734 - 29,734
Total assets limited as t. se 280,812 - 280,812
Beneficial interest in:
Assets held by others
178,377 178,377
Perpetual trust - 818,071 8181071
Total beneficial ' terest in
assets het• ■y others - 178,377 818,071 996,448
$ 1,527,372 $ 178,377 $ 818,071 $ 2,523,820
The Organizati's investments in equity and fixed income securities are not concentrated in a single
entity or in a -w entities, nor are there any specific industry concentrations.
The boar of directors designates a portion of the Organization's cumulative investment return for support
of currt operations; the remainder is retained to support operations of future years and to offset
poke ial market declines. The fixed amount determined by the board of directors at the beginning of each
fis :I year as part of the Organization's budgeting process considers the Organization's long and
s ' ort-term needs, present and anticipated financial requirements, and expected total return on its
nvestments (see Note 12).
16
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 3. Accounts Receivable
Accounts receivable consists of the following at June 30, 2022 and 2021:
Managing entity contract
Other grants and funding sources
Program fees and other, net of allowance for doubtful accounts
of $183,512-2022 and $256,388-2021
Note 4. Property and Equipment
Property and equipment consists of the following at June 30, 2022 an
Land
Buildings and improvements
Vehicles
Leasehold improvements
Computer equipment and software
Furniture and equipment
Less accumulated depreciation and amo
ization
Estimate
Useful es
(Ye - rs)
N/A
35
3-5
5
3-5
2-5
2022
2021
$ 26,947,114 $ 11,752,101
12, 320,95 : 10,338,789
85 ,522 580,874
$ 40, 9,594 $ 22,671,764
2021:
2022
$ 1,848,945
3,637,870
1,421,263
5,697,649
802,108
1,596,936
2021
$ 1,610,899
3,672,521
1,077,407
4,793,558
780,139
1,538,929
15,004,771
(9,082,885)
$ 5,921,886
13,473,453
(8,483,041)
4,990,412
Depreciation and amortization exp se for the years ended June 30, 2022 and 2021, was $935,650 and
$716,785, respectively.
Note 5. Beneficial Inte st in Assets Held by Others
The Organization has e .blished endowments at Community Foundation of Broward, Inc. and
Community Foundatio of Tampa Bay, Inc. (the Community Foundations) and named itself as the
beneficiary. Under t - terms of the endowment agreements, the Community Foundation of Broward, Inc.
has variance pow over the funds and the Community Foundation of Tampa Bay, Inc. does not have
variance power . er the funds. During 2016, the Organization was notified of its interest as the sole
beneficiary of e Charles A. Zerbst Charitable Trust (Zerbst Trust), a perpetual trust established for LSF's
benefit and .:ministrated by an independent trustee. Investment income (losses), net of distributions and
fees on beeficial interest in assets held by others are recorded as change in value of beneficial interest
in asset eld by others in the accompanying consolidated statements of activities.
17
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 5. Beneficial Interest in Assets Held by Others (Continued)
The fair value of the Organization's beneficial interest in assets held by others is as follows:
Beneficial interest in assets held by others:
Community Foundation of Broward, Inc.
Community Foundation of Tampa Bay, Inc.
Beneficial interest in perpetual trust:
Charles A. Zerbst Trust
Note 6. Gifted Facilities
Gifted facilities represents the present value of the excess of the as regate fair rental value of building
leases over below market rent payments due under lease agree -nts executed in connection with the
Organization's Head Start programs operated in Pinellas, Duv. and Palm Beach counties. Gifted
facilities are recorded as contributions with donor restrictions . nd are released from restrictions as rent
expense is recorded. Activity of the gifted facilities during t years ended June 30, 2022 and 2021, is
summarized as follows:
2022 2021
$ 137,080
6,62
170,739
7,638
143, *7 178,377
4,624 818,071
878,331 $ 996,448
Balance at June 30, 2020
Contributions
Rent expense
Balance at June 30, 2021
Contributions
Rent expense
Balance at June 30, 2022
Less current portion of gifted
facilities
Gifted facilities, I
current port'
Pinellas Duval
Properti: Properties
$ 1,3 0,827 $ 805,895
24,915 344,895
(484,606) (320,693)
861,136 830,097
1,037,887 121,450
(516,117) (350,161)
1,382,906 601,386
(282,026) (265,972)
$ 1,100,880 $ 335,414
Note 7. Acco is Payable
Accounts payab - consists of the following at June 30, 2022 and 2021:
Mana.' g entity contract
Tra
18
Palm Beach
Properties Total
$ 4,381,376 $ 6,508,098
84,701 454,511
(1,286,760) (2,092,059)
3,179,317 4,870,550
359,241 1,518,578
(1,286,755) (2,153,033)
2,251,803 4,236,095
(1,251,153) (1,799,151)
$ 1,000,650 $ 2,436,944
2022
2021
$ 34,638,080 $ 15,017,685
4,391,160 3,646,946
$ 39,029,240 $ 18,664,631
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 8. Line of Credit
The Organization maintains a revolving line of credit with the Lutheran Church Extension Fund- issouri
Synod, an unaffiliated nonprofit organization, with a maximum availability of $7,250,000. Inter: t is
payable monthly at the lenders cost of funds, which is the weighted average annual rate of ierest plus
3% (4.125% at June 30, 2022). The line of credit is secured by the Organization's accoun - receivable
balance and requires the Organization to meet certain covenants. At June 30, 2022, the organization was
in compliance with these restrictive covenants. There was no outstanding balance on e line of credit at
June 30, 2022 and 2021. The line of credit matures on April 4, 2025.
Note 9. Note Payable
The Organization entered into a promissory note with Lutheran Church
the amount of $2,750,000, with a maturity date of September 20, 2029. T
by the Organization's accounts receivable balance and requires the Or
covenants. The promissory note calls for monthly principal and intere
interest rate of 4.75% through September 30, 2024. Beginning on 0
be adjusted based on the lenders cost of funds plus 3% through
interest payment will be adjusted accordingly. The outstanding
2022 and 2021, was $2,123,720 and $2,363,458, respective)
Maturities of the note payable at June 30, 2022, are as fo .ws:
Years ending June 30:
2023
2024
2025
2026
2027
Thereafter
Less current portion
19
Ext
sion Fund -Missouri Synod in
promissory note is secured
nization to meet certain
payments of $28,902, with a fixed
ober 1, 2024, the interest rate will
turity. The monthly principal and
lance on the note payable at June 30,
$ 251,377
263,581
276,378
289,795
303,864
738,725
2,123,720
(251,377)
$ 1,872,343
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 10. Leases
Capital leases: The Organization is obligated under capital lease agreements for certain faciliti: which
expire at various dates through fiscal year 2027. Upon expiration of these leases, title to the p •perties
will automatically transfer to LSF. At June 30, 2022, the gross amount of facilities and relat
accumulated amortization recorded under capital leases was $4,005,115 and $2,953,578 espectively. At
June 30, 2021, the gross amount of facilities and related accumulated amortization rec. ded under capital
[eases was $4,005,115 and $2,535,959, respectively. Amortization of assets held un. -r capital leases is
included in depreciation and amortization expense. Future minimum payments und; capital lease
obligations at June 30, 2022, are as follows:
Years ending June 30:
2023
2024
2025
2026
2027
Thereafter
$ 441,982
173,400
173,400
173,400
173,400
86,700
Total minimum capital lease payments 1,222,282
Less amount representing interest (170,745)
Present value of capital lease payments 1,051,537
Less current portion of capital lease obligations (381,711)
Capital lease obligations, less current porti. $ 669,826
Operating leases: The Organization leases the ajority of its office space and office equipment under
operating lease agreements which expire at v- ous dates through June 30, 2036. Security deposits
related to such leases are included in other --sets in the accompanying consolidated statements of
financial position. Rental expense on oper ing leases was approximately $3,682,000 and $2,940,000
during the years ended June 30, 2022 ar ■ 2021, respectively. The majority of the Organization's
operating leases include 30-day canc- ation provisions in the event the Organization loses its funding.
Future minimum lease payments der non -cancellable operating leases (with initial or remaining terms
in excess of one year) as of Jun: 30, 2022, are as follows:
Years ending June 30:
2023 $ 2,730,642
2024 1,663,273
2025 1,125,927
2026 883,442
2027 80,306
Thereafter 43,210
6,526,800
20
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 11. Net Assets
Net assets without donor restrictions are available for the following purposes as of June 30, 20 and
2021:
Undesignated
Board designated for specified purposes
2022
2021
$ 2,565,67 $ 2,212,736
1,088,•'1 1,246,560
3 65370 3 459 296
The board of directors of LSF established a board designated endowment t• •e used to support
operations which was $1,088,691 and $1,246,560 as of June 30, 2022 an 2021, respectively (see
Note 12).
Net assets with donor restrictions are restricted for the following pur
Restricted for specified purposes:
Facilities and equipment subject to time restrictions
Gifted facilities
Employee tuition reimbursement
Other
Restricted in perpetuity —endowment:
Broward County program endowment
Tampa Bay program endowment
Restricted in perpetuity —beneficial inte--st:
Zerbst Trust
Net assets with donor restricti
satisfying the restricted purp
ended June 30, 2022 and
Facilities and equ
Rent expense f
Employee tui
Other
oses as of June 30, 2022 and 2021:
2022
2021
$ 3,050,341
4,236,095
112,157
$ 2,074,908
4,870,550
22,668
334,437
7,398,593 7,302,563
137,080
6,627
170,739
7,638
143,707
178,377
734,624 818,071
$ 8,276,924 $ 8,299,011
s that were released from donor restrictions by incurring expenses
es or by the occurrence of other events specified by donors for the years
21, are as follows:
merit subject to time restrictions
m gifted facilities
n reimbursement
21
2022
2021
$ 531,749
2,153,033
22,668
281,866
$ 266,879
2,092,058
6,225
178,320
$ 2,989,316 $ 2,543,482
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds
LSF has a board designated endowment fund included in net assets without donor restrictions ich was
established by the board of directors for the purpose of supporting the Organization's progra LSF also
has two donor restricted endowment funds which are included in net assets with donor restr tions and
consist of funds established with the Community Foundation of Broward, Inc. and the Co ► unity
Foundation of Tampa Bay, Inc. The earnings on the donor restricted endowment funds . e to be used to
support program operations and are recorded as net assets with donor restrictions u appropriated to
LSF.
Interpretation of relevant law: Effective July 1, 2012, the state of Florida adop d the Uniform Prudent
Management of Institutional Funds Act. The board of directors has interprete■ he wishes of donors and
state law as requiring the preservation of the fair value of the original gift as •f the gift date of the donor -
restricted endowment funds absent explicit donor stipulations to the contr.- y. As a result of this
interpretation, the Organization classifies as net assets with donor restr' tions: (a) the original value of
gifts donated to the permanent endowment, (b) the original value of s sequent gifts to the endowment
and (c) accumulations to the endowment made in accordance with e direction of the applicable donor
gift instrument at the time the accumulation is added to the fund.
Investment return objectives, risk parameters and strate•' s: The Organization has adopted
investment and spending policies, approved by the board o directors, for endowment assets that attempt
to provide a predictable stream of funding to programs su •ported by its endowment funds while also
preserving the purchasing power of those endowments aver the long-term. The policies stipulate that the
endowments should be managed as a long-term goal resigned to maximize the returns without exposure
to undue risk, as defined herein. Whereas it is und- tood that fluctuating rates of return are characteristic
of the securities markets, the greatest concern s -uld be long-term appreciation of the assets and
consistency of total portfolio returns. Recognizi • that short-term market fluctuations may cause
variations in the account performance, the Or, anization will pursue a strategy seeking to exceed a
benchmark return of a target portfolio consi ing of approximately 35% fixed income securities, 55%
equity securities and 10% real assets for e general endowment fund. Earnings only on the endowment
funds held the Community Foundations re used to support programs in those counties.
Spending policy: The Organizatio has a policy limiting the spending of its permanent endowment funds
to interest income that may be wi drawn for use in the county where the endowments are based.
Endowment net asset compo- tion by type of fund are as follows at June 30, 2022 and 2021:
2022
Without With Total
Donor Donor Endowment
Restrictions Restrictions Net Assets
Board design ed endowment $ 1,088,691 $ - $ 1,088,691
Broward C.4my program endowment 137,080 137,080
Tampa B program endowment 6,627 6,627
$ 1,088,691 $ 143,707 $ 1,232,398
22
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 12. Endowment Funds (Continued)
Board designated endowment
Broward County program endowment
Tampa Bay program endowment
2021
Without With otal
Donor Donor ndowment
Restrictions Restrictions Net Assets
$ 1,246,560 $ $ 1,246,560
170, 9 170,739
,638 7,638
$ 1,246,560 $ 8,377 $ 1,424,937
Changes in endowment net assets for the years ended June 30, 2022 an - 2021, are as follows:
Without With Total
Donor Donor Endowment
Restrict' s Restrictions Net Assets
Balances at June 30, 2020 $ 1,►.0,392 $ 148,526 $ 1,148,918
Board designations 7,670 7,670
Investment income, net 238,498 37,078 275,576
Appropriations (7,227) (7,227)
Balances at June 30, 2021 1,246,560 178,377 1,424,937
Board designations 8,541 - 8,541
Investment loss, net (166,410) (27,237) (193,647)
Appropriations (7,433) (7,433)
Balances at June 30, 2022 $ 1,088,691 $ 143,707
Note 13. Retirement Plans
The Organization sponsors a 403 *) multiple employer retirement plan (the 403(b) Plan) administered by
One America. Under the 403(b) an, employees are eligible to participate once they attain the age of 21.
The Organization may elect t. ake matching and non -elective contributions to the 403(b) Plan.
Participants' rights to emplo, er contributions vest after three years of service.
The Organization also s-onsors a 457(b) multiple employer plan (the 457(b) Plan) administered by One
America. Under the 4 (b) Plan, eligible employees may participate upon their date of hire. The
Organization may e 'ct to contribute matching and non -elective contributions to the 457(b) Plan.
Participants' right ' o employer contributions vest after one year of service.
Employer con ibutions to the 403(b) and 457(b) plans for the years ended June 30, 2022 and 2021, were
approximat= $1,002,000 and $1,065,000, respectively.
1,232,398
The Ore s nization also sponsors a 457(f) employee benefit plan or SERP, which provides a key executive
(the P-rticipant) deferred compensation benefits outside of the two plans described above. Benefits under
the : ERP accumulate from annual contributions and earnings thereon. The plan participant's rights to
e ployer contributions vest on February 7, 2023. For the years ended June 30, 2022 and 2021, the
rganization incurred expenses under the SERP of approximately $5,000 and $95,000, respectively. At
June 30, 2022 and 2021, the Organization has $285,948 and $280,812, respectively, of assets limited as
to use for payment of its obligation under the SERP which is included in accrued salaries and payroll
related expenses in the accompanying consolidated statements of financial position.
23
SUBSTITUTED
Lutheran Services Florida, inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 14. Contingencies
The Organization routinely enters into grant agreements and contracts with governmental agen '-s that
provide forreimbursement of the eligible direct and indirect costs of providing certain of the
Organization's program services. The grants and contracts are subject to audit or review an, retroactive
adjustment based on a final determination by the grantor of eligible reimbursable expend' res. The effect
of such adjustments, if any, cannot be determined at this time and no provision has bee, made for any
such adjustments in the accompanying consolidated financial statements.
The Organization is involved in legal actions arising during the ordinary course of s operations. The
potential loss under these claims is not determinable at this time, Management ' -lieves any potential loss
would be expected to fall within the Organization's insurance policy limits. Th only anticipated financial
exposure would be payment of the insurance deductible, a nominal amount n the opinion of
management, no material liability exists with respect to these claims.
The Organization sponsors a welfare benefit plan (the Plan) which pro ides medical and prescription drug
benefits to its employees. Under the terms of the Plan, the Organiz- ion is responsible and self -insured
for the first $175,000 of individual covered claims and is subject to a maximum annual aggregate stop
loss limit which was $9,084,970 for the year ended June 30, 20 % . Health insurance expense is based
upon premiums paid to the insurer, estimated total cost of clai s to be paid by the Organization that fall
within the deductible limits described above, and the admini: rative costs of the Plan. The Organization
outsources administration of claims to a third -party admin': rator (Meritain). Under the terms of the
Meritain agreement, Meritain provides management witr an estimate of incurred but unreported claims
(IBNR) and the future development of covered claims rising an actuarially determined reserve
methodology based on current and historical claims :evelopment trends, which are recorded in payroll
taxes and employee benefits in the accompanyin• consolidated statements of functional expenses. As of
June 30, 2022 and 2021, accrued estimated he, th insurance expense under the Plan was approximately
$806,000 and $1,678,000, respectively, and i included in accrued salaries and payroll related expenses
in the accompanying consolidated stateme of financial position. Estimated health insurance expense
was approximately $6,055,000 and $6,35 ,000, respectively, for the years then ended, which is included
in payroll taxes and employee benefits i- both program services and supporting services in the
accompanying consolidated stateme of activities. Actual claims expense may differ from these
estimates. At June 30, 2022 and 20 1, the Organization had approximately $990,000 and $1,799,000,
respectively, of funds included in •.sh and cash equivalents to pay outstanding claims.
Note 15. In -Kind Contrib,tions
In -kind contributions inclued in the consolidated statements of activities and functional expenses and the
corresponding expense are as follows:
2022 2021
Professional s ices $ 402,300 $ 444,895
Food, clothi • and household items 2,467,328 2,760,743
$ 2,869,628 $ 3,205,638
No do-ated food, clothing and household items or professional services were restricted for use. The
Org• ization estimates the fair value of its in -kind contributions in line with FASB Topic 820, Fair Value
M surement. Food, clothing and household items are valued based on the wholesale value that would
e received from selling similar products in the United States. Contributed professional services are
valued at the estimated fair value based on current rates for similar services. The Organization utilizes
donated materials for their mission and does not monetize or sell the goods.
24
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 16. In -Kind Contributions
Donated services for the years ended June 30, 2022 and 2021, with estimated fair values of
approximately $2,881,000 and $2,031,000, respectively, were not recognized in the accompaing
consolidated financial statements because they did not meet the criteria for recognition becse they did
not require specialized skills and would ordinarily not be purchased if not provided by do .`ion.
Note 17. Matching Requirements
The Organization received a substantial portion of its support from various funding sources which
required local matches. Management believes these requirements were met through program service
fees, local grants and public donations during the years ended June 30, 202 -nd 2021.
Note 18. Liquidity and Availability of Resources
As of June 30, 2022 and 2021, the following reflects the Organizatio ' financial assets, reduced by
amounts not available for general use because of contractual or do r or -imposed restrictions and board
designations, within one year of June 30, 2022 and 2021:
2022 2021
Financial assets, at year-end
Cash and cash equivalents $ 18,977,876 $ 20,180,768
Accounts receivable, net 40,119,594 22,671,764
Investments 1,088,691 1,246,560
Gifted facilities 4,236,095 4,870,550
Less those unavailable for general expenditur-s within
one year, due to:
Contractual or donor -imposed restrictio
Restricted by donors with purpose _ d/or time restrictions (3,162,498) (2,432,013)
Restricted by donors with use res actions (4,236,095) (4,870,550)
Board designations:
Board designated for specifie. purposes (1,088,691) (1,246,560)
Financial assets availa• e to meet cash needs for
general expenditur within one year $ 55,934,972 $ 40,420,519
Over 95% of the Organize '•n's annual revenue is comprised of cost reimbursement or pass -through
contracts. Therefore, the is little ability to generate surplus revenue and maintain large cash balances.
As such, the Organize '.n relies on contract advances and prompt funder reimbursements to maintain
liquidity. The Organi -tion also maintains a $7,250,000 line of credit available to meet cash flow needs if
necessary.
25
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 19. Guardianship Program
In connection with the Organization's guardianship program, the Organization manages funds f
individuals who have been declared incapacitated. The Organization is a court -appointed leg guardian
for these individuals. Assets managed by the Organization include real property valued in t table below
at their fair value on the date the Organization was appointed guardian. Cash and cash e• ivalents, and
investments are included in the table below at current fair value. Income earned on ass s managed is
applied to each individual's account balance. Assets managed by the Organization ar- not included in the
accompanying consolidated financial statements. The value of assets managed are -s follows:
20 2021
Cash and cash equivalents $ •,621,235 $ 5,762,900
Investments in fixed income and equity securities 4,336,933 6,854,870
Real property 4,119,322 2,992,999
Cash surrender value of life insurance and other annuities 4,099,872 4,366,438
Other 504,123 170,266
$ 19,681,485 $ 20,147,473
For the years ended June 30, 2022 and 2021, program ser ce fees earned under the guardianship
program were approximately $644,000 and $701,000, re iectively, and are included in program service
fees in the accompanying consolidated statements of a• ivities.
Note 20. Contract with Duval County Staff
The Organization's Head Start program in Duv County includes certain personnel that are employed by
the Organization under a collective bargaining agreement, The collective bargaining agreement is
effective through January 31, 2025.
Note 21. Conditional Promises t. ive
The Organization has conditional p,•mises to give from grantors of approximately $68,559,000 and
$60,850,000 as of June 30, 202 .nd 2021, respectively. Future payments are contingent upon the
Organization carrying out certa activities (meeting grant -imposed barriers) stipulated by the grant or
contract.
Note 22. Paycheck : otection Program
On August 5, 2020, t-e Organization received a loan in the amount of $10,000,000 under the Paycheck
Protection Progra (PPP). The PPP, established as part of the Coronavirus Aid, Relief and Economic
Securities Act, pr•vides for loans to qualifying businesses for amounts up to 2.5 times of the average
monthly payrol -xpenses of the qualifying business. Under the terms of the PPP, PPP loans and accrued
interest are f• givable as long as the borrower uses the loan proceeds for eligible purposes, including
payroll, be fits and other qualifying expenses.
26
SUBSTITUTED
Lutheran Services Florida, Inc, and Subsidiary
Notes to Consolidated Financial Statements
Note 22. Paycheck Protection Program (Continued)
As of June 30, 2021, the Organization used $5,661,348 of the loan proceeds to fund its payroll = penses.
The Organization submitted an application to the Small Business Administration (SBA) on Jul 3, 2021,
requesting that these PPP funds received be forgiven. On July 30, 2021, the Organization r= eived
notification that the $5,661,348 was forgiven. The Organization elected to account for the PP loan as a
conditional contribution under ASC Subtopic 958-605. Management believes the reven recognition
criteria under ASC Subtopic 958-605 have been met for $5,861,348 of the $10,000,014 PPP loan. As
such, this amount has been recognized in government grants and contracts in the - 'companying
consolidated statements of activities as of June 30, 2021. The remaining principal •alance of $4,338,652
is included in refundable advances in the accompanying consolidated statemen _ of financial position as
of June 30, 2021. The remaining principal balance of $4,338,652 plus accrue. interest was repaid by the
Organization on August 3, 2021.
The SBA may audit whether the Organization qualified for the PPP loa -nd met the conditions
necessary for forgiveness of the loan for up to six years after it forgav the loan, Therefore, it is possible
that the Organization may have to repay an amount previously forg' en by the SBA.
27
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Government Grants and Contracts
Year Ended June 30, 2022
Direct federal funding:
U.S. Department of Health and Human Services
Pass -through awards of federal and state funding:
State of Florida Department of Children and Families
State of Florida Department of Health
Children's Network of Southwest Florida, LLC
Eckerd Connects, Community Alternatives
Family Support Services of Suncoast, LLC
Florida Network of Youth and Family Services, Inc.
ChildNet, Inc.
Safe Children Coalition, Inc.
Partnership for Strong Families, Inc.
Lutheran Immigration and Refugee Services
Voluntary Pre -Kindergarten
Youth Co -Op, Inc.
South Florida Workforce Investment Board
Hillsborough County, State of Florida
State of Florida Department of Elder Affairs
Lakeview Center, Inc.
State of Florida Office of Attorney General
U.S. Committee for Refugees and Immigrants
National Children's Alliance
University of South Florida
Hillsborough County Public Schools
City of St. Petersburg
62,019,975
177, 432, 902
6,997,930
5,659,810
4,489,377
4,616,500
4,349,464
3,241,037
3,274,557
2,425,930
4,749,388
1,432,760
1,008,909
396,613
1,808,561
851,247
67,057
298,934
175,618
77,750
95,436
84,375
13,260
223,547,415
Local and other grants and contr• 's:
Children's Services Council of P m Beach County 5,151,806
Children's Board of Hillsborou ; County 2,514,734
Florida Blue Foundation 429,017
Lee County, State of Flori. 427,252
Family Endeavors, Inc. 287,294
Heartland for Childre , Inc. 114,779
Lutheran Imrnigrati. and Refugee Services (MOU) 85,948
Florida Network • Youth and Family Services, Inc. (DV Respite) 78,568
Hernando Cou► y BOCC 57,077
Santa Rosa • ounty, State of Florida 43,699
Sarasota aunty, State of Florida 31,347
Other 57,454
9,278,975
Total government grants and contracts $ 294,846,365
28
Luthera • Services Florida, Inc. and Subsidiary
Schedule of S stance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues
Budget Period Ju 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Clay Community
Behavioral— Forensic
Part I: Actual Funding Sources and Revenues: Afte • rel Case Crisis Beds— Crisis Crisis Support/
Funding Sources and Revenues Follow- Assessment Management Prevention Adult Services Stabilization Emergency Day Care Day Treatment
IA. State SAMH funding
Contract EH003 $ 89,110 $ 870,894 $ 2,813,285 $ 450,963 $ 1,062,673 $ 17,091,248 $ 16,478,524 $ 77,660 $ 720,550
Contract EH003—carryover - - - - - - -
Total state SAMH funding 89,110 87•,<94 2,813,285 480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
IB. Other government funding
(1) Other stale agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In-lbnd from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding $ 89,110 $ 876,894 $ 2,813,285 $ 480,963 $ 1,062673 $ 17,091,248 16,478,524 $ 77,660 $ 720,550
(Continued)
29
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Lutheran ervices Florida, Inc, and Subsidiary
Schedule of Su
tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
p-In
Self -
Centers
FR—CAT
Teams
Florida
Assertive
Community
Treatment
(FACT) Team
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Incidental
FIT Teams HIV Services Expenses
Indigent Psych
Medication Information
Program and Referrals
In -Home!
On -Site
IA. State SAMH funding
Contract EHOC3
Contract EHO03--carryover
Total state SAMH funding
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
1C. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding
$ 738,799 $ 626,191 $ 3,428,459 $ 11,748,370 $ 385,692 $ 2,329,025 $ 122,008 $ 760,110 $ 205,405
738,799
8,626, '1
3,428,459 11,748,370
385,692
2,329,025
122,008
760,110
205,405
$ 738,799 $ 8.626.191 $ 3,428,459 $ 11,748,370 $ 385,692 $ 2,329,025 $ 122,008 $ 760,110 $ 205,405
(Continued)
30
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Luthera ervices Florida, Inc. and Subsidiary
Schedule of Su a tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMH/ASAICSA
PATH
Community
Mental Health Multi- Support
Part 1: Actual Funding Sources and Revenues: Intensive Case Medical Clubhouse Methadone Disciplinary Services
Funding Sources and Revenues Inpatien Management Services Services Treatment Forensic Team Outreach Federal Prevention
IA. State SAMH funding
Con8ractEH003 $ 1,616,123 $ 61,849 $ 4,881,158 $ 1,039,689 $ 4,696,518 $ 692,650 $ 1,398,121 $ 646,258 $ 8,924,334
Contract EH003—carryover
Total state SAMH funding 1,616,123 61,=' 9 4,881,158 1,039,659 4,696,518 692,656 1,398,121 646,258 8,924,334
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC. All other revenues
(1) Rrst and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
Total funding $ 1,616,123 $ 61,849 $ 4.881.158 $ 1,039,689 $ 4,696,518 $ 692.650 $ 1,398,121 $ 646,258 $ 8,924,334
(Continued)
31
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Luthera ervices Florida, Inc. and Subsidiary
Schedule of Su
tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Res e Supported Supported Transitional Residential
Services SA Detox Employment HousinglLiving TASC Beds Intervention Outpatient Services
IA. State SAMH funding
Contract EH003 $ 626,679 $-998,467 $ 398,896 $ 227,178 $ 79,031 $ 38,605 $ 686,056 $ 2,375,648 $ 22,424,148
Contract EH003--carryover - - - - - - - -
Total state SAMH funding 626,679 6,998,- •7 398,896 227,178 79,031 38,605 686,056 2,375,648 22,424,14E
IB. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) in -kind from local government only
Total other government funding
IC. All other revenues
(1) First and second party payments - - - - - -
(2) Third -party payments (except Medicare) _ _ _ _ _ _
(3) Medicare - - - -
(4) Contributions and donations - - - - -
(5)Other - - - - - -
(6) Refunds - - - - - -
(7) In -kind - - - - -
Total all other revenues -
Total funding $ 626,679 $ 6,998,467 $ 398.896 $ 227,176 $ 79,031 $ 38.605 $ 686,056 $ 2,375.648 $ 22,424,148
(Continued)
32
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Luthera ervices Florida, Inc. and Subsidiary
Schedule of Su. tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
Room d
Board " Transition
Supervision Vouchers
Bnet
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMH/ASA/CSA
Purchased
Residential Fixed Rate
Care Therapeutic First Episode Central Receivinc Recovery Federal
Coordination Services Psychosis Facilities Support Project Grant
IA. State SAMH funding
Contract EH003
Contract EH003—carryover
Total state SAMH funding
M. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other government funding
IC. All other revenues
{1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
5 6.675,811 $ ,822 $ 819,963 $ 1,254,319 $ 283,125 $ 1,331,578 $ 7,182,471 $ 131,725 $ 3,196,887
6,675,811
139,822 819,963
1,254,319 283,125
1,331,578 7,182,471
131,725 3,198,887
Total funding $ 6,675,811 $ 139,822 $ 819,963 $ 1.254.319 $ 283,125 $ 1,331,578 $ 2,471 $ 131,725 $ 3,196,887
(Continued)
33
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Luthe - • Services Florida, Inc. and Subsidiary
Schedule of S
stance Abuse and Mental Health Services, Program!Cost Center Actual Expenses and Revenues (Continued)
Budget Period Ju 1, 2021 Through June 30, 2022
Part I: Actual Funding Sources and Revenues:
Funding Sources and Revenues
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Network Local
Other Evaluation Provider Diversion Total for
Bu led Cost Wraparound and Provision Forensic Sustainability AMHICMH/
Projec - Reimbursement Projects Development Projects Project Payments ASA!CSA
IA. State SAMH funding
Contract EH003
Contract EH003—carryover
Total state SAMH funding
[B. Other government funding
(1) Other state agency funding
(2) Medicaid
(3) Local government
(4) Federal grants and contracts
(5) In -kind from local government only
Total other governmentfunding
IC. All other revenues
(1) First and second party payments
(2) Third -party payments (except Medicare)
(3) Medicare
(4) Contributions and donations
(5) Other
(6) Refunds
(7) In -kind
Total all other revenues
$ 7,512,664 4,183,362 $ 184,429 $ 3,232,819 $ 1,583,630 $ $ 134,226 $ 163,693,205
7,512,664
4,18 62 184,429
3,232,819 1,583,630
134,226 163,693,205
Total funding $ 7,512.664 $ 4,183,362 $ 184,429 $ 3,232,819 $ 1,583,630 $ 134,226 $ 163,693,265
(Continued)
34
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Lutheran ervices Florida, Inc. and Subsidiary
Schedule of Su _ tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July ' 2021 Through June 30, 2022
Total for Non- Total for all
ME Total for State State -Funded State Designated
Part l: Actual Funding Sources and Revenues. Administrative SAMH-Funded SAMH Cost SAMH-Funded Non-SAMH Total
Funding Sources and Revenues Services Cost Centers Centers Cost Centers Cost Centers Funding
IA. State SAMH funding
Contract EH003 5,748,186 $ 163,693,205 $ - $ 169 441,391 $ $ 169,441,391
Contract EH003—carryover - 4,210,827 - 4,210,827 - 4,210,827
Total state SAMH funding 5,748,186 167,904,032 - 173,652,218 173,652,218
IB. Other government funding
(1)Otherstate agency funding - - - 7,183,054 7,183,054
(2) Medicaid - - - -
(3) Local government - - - 9,278,975 9,278,975
(4) Federal grants and contracts - - 104,732,118 104,732,118
(5) In -kind from local government only - - - - -
Total other government funding - - - - 121,194,147 121,194,147
IC. All other revenues
(1) First and second party payments - - 1,080,468 1,080,468
(2) Third -party payments (except Medicare) - - -
{3) Medicare - - - -
(4) Contributions and donations - - - 3,832,748 3,832,748
(5) Other - - - 362,261 362,261
(6) Refunds - - - - -
(7) In -kind - - - 2,948,013 2,948,013
Total all other revenues - - - 8,223,490 8,223,490
Total funding $ 5,748,186 $ 167.904,032 $ - $ - .652,218 $ 129,417,637 $ 303.069,855
(Continued)
35
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Luther: Services Florida, Inc. and Subsidiary
Schedule of 5
stance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Ju 1, 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH1CMH1ASAlCSA
Clay Community
Behavioral— Forensic
Part II: Actual Expenses: Afte • ref Case Crisis Beds —Adult Crisis Crisis Support!
Funding Sources and Revenues Follow - Assessment Management Prevention Services Stabilization Emergency Day Care Day Treatment
IIA. Personnel expenses
(1) Salaries $ - $ - $ - $ - $ - $ $ - $
(2) Fringe benefits
Total personnel expenses
11B. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Subcontracted services
(8)insurance
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses
Total personnel and other expenses
11C. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
89,110 876,894 2,813285 48
89,110
876,894 2,813,285
1,062,673
17,091,248 16,478,524
77,660 720,550
480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
89,110 876,894
2,813,285 480,963
1,062,673 17,
1,248 16,478,524
77,660 720,550
Total actual operating expenses 89,110 876,894 2,813,285 480,963 1,062,673 17,091,248 16,478,524 77,660 720,550
IID. Unallowable costs
Total allowable operating expenses $ 89,110 $ 876,894 $ 2,813,285 $ 480,963 $ 1,062,673 $ 17,091,248 $ 16,478,524 $ 77.660 $ 720.550
IIE. Capital expenditures $ - $ - $ - $ - $ - $ - $ - $
(Continued)
36
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Lutheran -ervices Florida, Inc. and Subsidiary
Schedule of Su. tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July ' 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHJCMHIASAICSA
Florida
Assertive
p-In Community Indigent Psych
Part II_ Actual Expenses: Selt- _ . FR—CAT Treatment incidental Medication Information In-Homel
Funding Sources and Revenues Centers Teams {FACT) Team FIT Teams HIV Services Expenses Program and Referrals On -Site
IIA. Personnel Expenses
(1) Salaries $ - $ $ - $ $ $ $ $ - $ -
(2) Fringe benefits -
Total personnel expenses
IIB. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment - - -
(5) Food services - - -
(6) Medical and pharmacy - - -
(7) Subcontracted services 738,799 8,626,191 3,428,459 11.748,
(8) Insurance - - -
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
385,692 2,329,025
122,008 760,110 205,405
Total other expenses 736,799 5,626,191 3,428,459 11,748,370 385,692 2,329,025 122,008
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
760,110 205,405
738,799 5,626,191 3,428,459 11,748,370 385,692 2,3 ' 025 122,008 760,110 205,405
Total actual operating expenses 738,799 8,626,191 3,428,459 11,748,370 385,692 2,329,025 122,008 760,110 205,405
I1D. Unallowable costs - - - -
Total allowable operating expenses S 738,799 $ 8,626.191 $ 3,428.459 $ 11,748,370 $ 355,692 $ 2,329,025 $ 122,008 $ 760.110 205.405
llE. Capital expenditures $ $ - $ - $ - $ - $ - $ $ $
(Continued)
37
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Lutheran ervices Florida, Inc. and Subsidiary
Schedule of Su ance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July 2021 Through June 30, 2022
Part II: Actual Expenses:
Funding Sources and Revenues
IIA. Personnel expenses
(1) Salaries
(2) Fringe benefits
Total personnel expenses
M. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Subcontracted services
(8) Insurance
(9) Interest paid
(16) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses
$
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH!CMHIASAICSA
PATH
Community
Mental Health Multi- Support
Intensive Case Medical Clubhouse Methadone Disciplinary Services
Inpatient Management Services Services Treatment Forensic Team Outreach Federal
$
1,616,123 61,849
4,881,158 1,039
Prevention
4,696,518 692,650 1,398,121 646,258 8,924,334
1,616,123 61,849 4,881,158 1.039,689 4,696,518 692,650 1,398,121 646,258 8,924,334
Total personnel and other expenses 1,616,123 61,849 4,881,158 1.039,689 4,696,518 6650 1,398,121 646,258 8,924,334
IIC, Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
Total actual operating expenses 1,616,123 61,849 4,881,158 1,039,689 4,696,518 692,650 1,398,121 646,258 8,924,334
IID. Unallowable costs
Total allowable operating expenses $ 1.616,123 $ 61,84E $ 4,881,158 $ 1.039.689 $ 4,696,518 $ 692,650 $ 1,398,121 $ 646,258 8.924,334
IIE. Capital expenditures $ - $ - $ - $ $ - $ $ $
(Continued)
38
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Luthera ervices Florida, Inc. and Subsidiary
Schedule of Sus tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul ' 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Part IL Actual Expenses: Res. Supported Supported Transitional Residential
Funding Sources and Revenues Services SA Detox Employment Housing/Living TASC Beds Intervention Outpatient Services
IIA. Personnel expenses
(1) Salaries $ - $ - $ - $ - $ - $ $ $ $
(2) Fringe benefits
Total personnel expenses
IIB. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy - - - -
(7) Subcontracted services 626,579 6,998,467 398,896 227, 79,031 38,605 686,056 2,375,648 22,424,148
(8) insurance - - - -
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses 626,879 6,998,467 398.896 227,178 79,031 38,605 686,056 2,375,648 22,424,148
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support casts (optional)
(b) Administration
Total distributed indirect costs
626,679 6,998,467
398.896 227,178 79,031 605 686,056 2,375,648 22,424,148
Total actual operating expenses 626,679 6,998,467 398,896 227,178 79,031 38,605 686,056 2,375,648 22,424,148
IID. Unallowable costs
Total allowable operating expenses $ 626,679 $ 6,998,467 $ 398,896 $ 227,178 $ 79,031 $ 38,605 $ 686,056 $ 2,375,648 22,424,148
IIE. Capital expenditures $ - $ - $ - $ - $ - $ - $ - $ $
(Continued)
39
a31n111S9ns
Lutheran ervices Florida, Inc. and Subsidiary
Schedule of Su tance Abuse and Mental Health Services, Program/Cost Center Actual Expenses and Revenues (Continued)
Budget Period July ' 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMHICMHIASAICSA
Purchased Fixed Rate
oom and Residential Central
Part 11: Actual Expenses: Boa • with Transition Care Therapeutic First Episode Receiving Recovery Federal
Funding Sources and Revenues Supervi n Vouchers Bnet Coordination Services Psychosis Facilities Support Project Grant
1IA. Personnel expenses
(1) Salaries $ - 5 - $ - $ $ - $ - $ $
(2) Fringe benefits
Total personnel expenses
11B. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy
(7) Subcontracted services 6,675,811
(8)Insurance
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses 6,675,811
139,822 819,963 1,254, 9 283,125 1,331,578
139,822 819,963
1,254,319 283,125
7,182,471 131,725
1,331,578 7,182,471
3,196,887
131,725 3,196,887
Total personnel and other expenses 6,675,811 139,822 819,963 1,254,319 283,125 1, - ,578 7,182,471 131,725 3,196,887
11C. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
Total actual operating expenses 6,675,811 139,822 819,963 1,254,319 283,125 1,331,578 7,182,471 131,725 3,196,887
IID. unallowable costs
Total allowable operating expenses $ 6,675,811 $ 139,822 $ 819,963 $ 1,254,319 $ 283,125 $ 1.331 578 $ 7,182,471 $ 131,725 3,196,887
IIE. Capital expenditures $ - $ - $ $ - $ $ - $ - $ $
(Continued)
a3iniiissns
Lutheran ervices Florida, Inc, and Subsidiary
Schedule of Su : ance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period July 2021 Through June 30, 2022
State -Designated SAMH Cost Centers
State SAMH-Funded Cost Centers
AMH/CM HAASA/CSA
Local
et' Network Provider Diversion Total for
Part 11: Actual Expenses: Bun Cost Wraparound Evaluation and Provision Forensic Sustainability AMHICMH
Funding Sources and Revenues Projects Reimbursement Projects Development Projects Project Payments ASAICSA
IIA. Personnel expenses
(1) Salaries $ - $ $ $ $ - $ - $ - $
(2) Fringe benefits
Total personnel expenses
IIB. Other expenses
(1) Building occupancy
(2) Professional services
(3) Travel
(4) Equipment
(5) Food services
(6) Medical and pharmacy - - - -
(7) Subcontracted services 7,512,664 4,183,362 184,429 3,232,8 1,583,630 - 134,226 163,693,205
(8) Insurance - -
(9) Interest paid
(10) Operating supplies and expenses
(11) Other
(12) Donated items
Total other expenses 7,512,664 4,183,362 184,429 3,232,819 1,583,630 - 134,226 163,693,205
Total personnel and other expenses
IIC. Distributed indirect costs
(a) Other support costs (optional)
(b) Administration
Total distributed indirect costs
7,512,664 4,183,362 184,429 3,232,819 1,583,630
134,226 163,693,205
Total actual operating expenses 7,512,664 4,183,362 184,429 3,232,819 1,583,630 134,226 63,693,205
IID. Unallowable costs
Total allowable operating expenses $ 7,512,634 $ 4,183,362 $ 184,429 $ 3,232819 $ 1,583,630 $ $ 134,226 $ 163,693,205
IIE. Capital expenditures $ - $ - $ - $ $ $ $ - $
(Continued) 41
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Luthera ervices Florida, Inc. and Subsidiary
Schedule of Su -tance Abuse and Mental Health Services, ProgramlCost Center Actual Expenses and Revenues (Continued)
Budget Period Jul 2021 Through June 30, 2022
Total for Non- Total for all
ME Total for State State -Funded State Designated
Part11: Actual Expenses: Administrative SAMH-Funded SAMH Cost SAMH-Funded Non-SAMH Total
Funding Sources and Revenues Services Carryforward Cost Centers Centers Cost Centers Cost Centers Administration Advancement Expenses
HA. Personnel expenses
(1) Salaries $ 419,038 $ - $ 3,419,038 $ - $ 3,419,038 $ 51,820,073 $ 5,134,887 $ 314,875 $ 60,688,873
(2) Fringe benefits 6r: 16 - 608,216 608,216 12,380,212 1,045,276 52,858 14,086,562
Total personnel expenses 4,027,2 - 4,027 254 - 4,027,254 64,200,285 6,180,163 367,733 74,775,435
I1B. Other expenses
(1) Building occupancy 230,691 - 230,691 - 230,691 6,558,318 594,033 11,397 7,394,439
(2) Professional services 131,127 131,127 - 131,127 2,902,786 626,073 9,460 3,669,446
(3)Travel 238,872 - 238,872 - 238,872 2,257,892 157,889 14,460 2,669,113
(4) Equipment 256,899 - 256,899 - 256,899 4,743,537 359,565 17,262 5,377,263
(5) Food services - - - 2,217,273 - 21 2,217,294
(6) Medical and pharmacy - - - - - - -
(7) Subcontracted services 4,075,920 167,769,1 167,769,125 20,099,209 - - 187,868,334
(8) Insurance 31,236 - 31,236 - 31,235 1,247,894 108,530 1,795 1,389,455
(9) Interest paid - - - - - 77,849 120,345 - 198,194
(10) Operating supplies and expenses 317,071 - 317,071 - 317,071 13,556,672 182,459 18,817 14,075,019
(11) Other 102,534 - 102,534 102,534 171,477 803 40,049 314,863
(12) Donated items - - - - - 2,948,013 - - 2,948,013
Total other expenses 1,308,430 4,075,920 169,077,555 - 69,077,555 56,780,920 2,149,697 113,261 228,121,433
Total personnel and other expenses 5,335,684
11C. Distributed indirect costs
(a) Other support casts (optional)
(b) Administration
Total distributed indirect costs
Total actual operating expenses
11D. Unallowable costs
4,075,920 173,104, 609
173,10- :09 120,981,205 8,329,860
350,522
480,994 302,896,868
350,522 - 350,522 7, - ,740 (8,329,860) 31,598
350,522
350,522 - 354,522 7,947, • (8,329,860) 31,598
5,686,206 4,475,920 173,455,331
173 455,331 128,928,945 - 512,592 302,896,868
22,109 - - 22,109
Total allowable operating expenses $ 5.686.206 $ 4,075.920 $ 173,455,331 $
$ 173,455,331 $ 128,906,836 $ - 512,592 $ 302,874,759
11E. Capital expenditures $ 21,969 S - $ 21,989 $ - $ 21,969 $ 2,191,314 $ $ - $ 2,213,283
42
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SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of State Earnings
Year Ended June 30, 2022
* This schedule does not apply for the year ended June 30, 2022.
43
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, ProgramlCost
Center Actual Expenses and Revenues (Continued)
Schedule of Bed -Day Availability Payments
Year Ended June 30, 2022
* This schedule does not apply for the year ended June 30, 2022.
44
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Substance Abuse and Mental Health Services, Program/Cost
Center Actual Expenses and Revenues (Continued)
Schedule of Related Party Transaction Adjustments
Year Ended June 30, 2022
This schedule does not apply for the year ended June 30, 2022.
45
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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 Sfanda.•s
independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
RS A
RSM US LLP
We have audited, in accordance with the auditing standards generally acc• pted in the United States of
America and the standards applicable to financial audits contained in .vernmenf Auditing Standards,
issued by the Comptroller General of the United States (Governmen Auditing Standards), the
consolidated financial statements of Lutheran Services Florida, In and Subsidiary (the Organization),
which comprise the consolidated statement of financial position . of June 30, 2022, and the related
consolidated statements of activities, functional expenses and c.. sh flows for the year then ended, and the
related notes to the consolidated financial statements (collec ely, the financial statements), and have
issued our report thereon dated December 22, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial - atements, we considered the Organization's
internal control over financial reporting (internal co ► rol) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose .f expressing our opinion on the financial statements,
but not for the purpose of expressing an opinioon the effectiveness of the Organization's internal
control. Accordingly, we do not express an o-anion on the effectiveness of the Organization's internal
control.
A deficiency in internal control exists w en the design or operation of a control does not allow
management or employees, in the no al course of performing their assigned functions, to prevent, or
detect and correct, misstatements .n a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in in -real control, such that there is a reasonable possibility that a material
misstatement of the Organizati on's financial statements will not be prevented, or detected and corrected,
on a timely basis. A significar deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe an a material weakness, yet important enough to merit attention by those
charged with governanc
Our consideration of ' ternal control was for the limited purpose described in the first paragraph of this
section and was n. designed to identify all deficiencies in internal control that might be material
weaknesses or s`. nificant deficiencies. Given these limitations, during our audit, we did not identify any
deficiencies in ternal control that we consider to be material weaknesses. However, material
weaknesses ay exist that have not been identified.
HE POWER OF BEING UNDERSTO00
AUDIT 1 TAX CONSULT.NG
46
SUBSTITUTED
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Organization's financial statements are free
from 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 mater
effect on the financial statements. However, providing an opinion on compliance with those provision was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of odr tests
disclosed no instances of noncompliance or other matters that are required to be reported unde
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal contrand compliance
and the results of that testing, and not to provide an opinion on the effectiveness of th= Organization's
internal control or on compliance. This report is an integral part of an audit performe-, in accordance with
Government Auditing Standards in considering the Organization's internal control nd compliance.
Accordingly, this communication is not suitable for any other purpose.
Ps 2.4P
Orlando, Florida
Decernber 22, 2022
47
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RS
RSM US LLP
Report on Compliance for Each Major Federal Program and State Financial Assistance • roject
and Report on Internal Control Over Compliance Required by the Uniform Guidce
and State of Florida Chapter 10.650, Rules of the Auditor General
Independent Auditor's Report
Board of Directors
Lutheran Services Florida, Inc.
Report on Compliance for Each Major Federal Program and State Fi ncial Assistance Project
Opinion on Each Major Federal Program and State Financial Asstance Project
We have audited Lutheran Services Florida, Inc. and Subsidiary's ( e Organization) compliance with the
types of compliance requirements described in the OMB Cornplia ce Supplement and in the State of
Florida's Department of Financial Services' State Projects Com , lance Supplement that could have a
direct and material effect on each of the Organization's major ederal programs and state financial
assistance projects for the year ended June 30, 2022. The organization's major federal programs and
state financial assistance projects are identified in the su -mary of auditor's results section of the
accompanying schedule of findings and questioned co
In our opinion, the Organization complied, in all ma rial respects, with the types of compliance
requirements referred to above that could have a .irect and material effect on each of its major federal
programs and state financial assistance project for the year ended June 30, 2022.
Basis for Opinion on Each Major Federa rogram and State Financial Assistance Project
We conducted our audit of compliance in ccordance with auditing standards generally accepted in the
United States of America (GAAS); the -ndards applicable to financial audits contained in Government
Auditing Standards, issued by the Co ptroller General of the United States (Government Auditing
Standards); the audit requirements .f Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Co • Principles, and Audit Requirements for Federal Awards (Uniform
Guidance); and the State of FI da Chapter 10.650, Rules of the Auditor General (Chapter 10.650). Our
responsibilities under those s :ndards, the Uniform Guidance and Chapter 10.650 are further described in
the Auditor's Responsibiliti; for the Audit of Compliance section of our report.
We are required to be i ependent of the Organization and to meet our other ethical responsibilities, in
accordance with rele . nt ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is s icient and appropriate to provide a basis for our opinion on compliance for each
major federal pro, am and state financial assistance project. Our audit does not provide a legal
determination the Organization's compliance with the compliance requirements referred to above.
Responsi.' ities of Management for Compliance
Manage . -nt is responsible for compliance with the requirements referred to above and for the design,
implem ' ntation and maintenance of effective internal control over compliance with the requirements of
laws, tatutes, regulations, rules and provisions of contracts or grant agreements applicable to the
Or.: nization's federal programs and state projects.
tE POWER OF BEING UNDERSTOOD
:13011I IAX CONSULTING
48
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Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express and
opinion on the Organization's compliance based on our audit. Reasonable assurance is a high level o
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted
accordance with GAAS, Government Auditing Standards, the Uniform Guidance and Chapter 10...0 will
always detect material noncompliance when it exists. The risk of not detecting material noncomlance
resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, •rgery,
intentional omissions, misrepresentations, or the override of internal control. Noncomplianc- ith the
compliance requirements referred to above is considered material, if there is a substantial kelihood that,
individually or in the aggregate, it would influence the judgment made by a reasonable -er of the report
on compliance about the Organization's s compliance with the requirements of each r -jor federal
program and state financial assistance project as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standar. , the Uniform Guidance,
and Chapter 10.650, we:
• Exercise professional judgment and maintain professional skepticism roughout the audit.
• Identify and assess the risks of material noncompliance, whether ue to fraud or error, and design
and perform audit procedures responsive to those risks. Such p •cedures include examining, on a
test basis, evidence regarding the Organization's compliance ith the compliance requirements
referred to above and performing such other procedures as e considered necessary in the
circumstances.
• Obtain an understanding of the Organization's intern_ control over compliance relevant to the audit in
order to design audit procedures that are appropria - in the circumstances and to test and report on
internal control over compliance in accordance w the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness oft - Organization's internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those c' arged with governance regarding, among other matters,
the planned scope and timing of the audit a d any significant deficiencies and material weaknesses in
internal control over compliance that we i• -ntified during the audit.
Report on Internal Control Over Co pliance
A deficiency in internal control over ompliance exists when the design or operation of a control over
compliance does not allow mans! -ment or employees, in the normal course of performing their assigned
functions, to prevent, or detect , d correct, noncompliance with a type of compliance requirement of a
federal program on a timely b sis. A material weakness in internal control over compliance is a
deficiency, or a combinatio of deficiencies, in internal control over compliance, such that there is a
reasonable possibility th _ material noncompliance with a type of compliance requirement of a federal
program will not be pre -nted, or detected and corrected, on a timely basis. A significant deficiency in
internal control over .mpliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a t •e of compliance requirement of a federal program that is less severe than a material
weakness in inter' al control over compliance, yet important enough to merit attention by those charged
with governanc
Our consid: ation of internal control over compliance was for the Limited purpose described in the
Auditor's esponsibilities for the Audit of Compliance section above and was not designed to identify all
deficie ies in internal control over compliance that might be material weaknesses or significant
defici- cies in internal control over compliance. Given these limitations, during our audit, we did not
ide ify any deficiencies in internal control over compliance that we consider to be material weaknesses,
a . defined above. However, material weaknesses or significant deficiencies in internal control over
ompliance may exist that were not identified.
49
SUBSTITUTED
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control aver compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements ' the
Uniform Guidance and Chapter 10.650. Accordingly, this report is not suitable for any other purpo
ESN as .L4P
Orlando, Florida
December 22, 2022
50
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
Federal Grantor/Pass-Throueh Grantor/Pro.ram Title
U.S. Department of Agriculture:
Passed -through from Florida Department of Health:
Child and Adult Care Food Program
COVID-19: Child and Adult Care Food Program
Child and Adult Cara Food Program
COVID-19: Child and Adult Care Food Program
Child and Adult Care Food Program
COVID-19: Child and Adult Care Food Program
Child and Adult Care Food Program
COVID-19: Child and Adult Care Food Program
Child and Adult Care Rood Program
Child and Adult Care Food Program
COVID-19: Child and Adult Care Food Program
Subtotal-U.S. Department of Agriculture
U.S. Department of Housing and Urban Development:
Passed -through from City of St. Petersburg:
CDBG - Entitlement Grants Cluster:
Community Development Block Grants/Entitlement Grants 14.218 B-20-MW-12-0017 - 13,260
Passed -through from Florida Department ofNealth:
Housing Opportunities for Persons with AIDS 14.241 COBMB 184,804
Federal Total
ALN Contract/Grant Provided In Federal
Number Number Subreci•ie- s Ex.enditure
10,558 D-154
10,558 D-154
10.558 5-121
10,558 5-121
10,558 H-3109
10,558 H-3109
10,558 H-3110
10.558 H-3110
10.558 H-3654
10.558 H-3365
10,558 H-3365
$ 4,879,097
127,962
1,306,617
354,605
10,801
1,093
14,527
994
30,825
44,590
613
6,772,127
Subtotal-U.S. Department of Housing and
Urban Development 190,064
U.S. Department of Justice:
Passed -through from Stale of Florida Office of Attorney General:
Crime Victim Assistance
16.575 'OCA-2020-LSF-00524 100,199
16.575 VOCA-2021-LSF-00528 198,736
Subtotal-U.S. Department of Justice - 298,935
U.S. Department of State:
Passed -through from Lutheran Immigration and Refugee Services:
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
U.S. Refugee Admissions Program
COVID 19: U.S. Refugee Admissions Program
Subtotal-U.S. Department of State
U.S. Department of Treasury
Passed -through from Hodda Department of Child r= and Families:
COVID-19: Coronavlrus Relief Fund
Subtotal-U.S. Department of T asury
U.S. Department of Homeland Security:
Passed -through from Hillsborough Co ty Public Schools
Citizenship Education and Traini-. 97.010 20CICET00157 84,375
19.510 SPRMCO21CA3007/ 323-21-LSF-02 - 152,433
19.510 SPRMCO21CA3007 / 323-21-LSF-02 19,753
19.510 SPRMCO22CA00221323-22-LSF-01 237,640
19.510 SPRMCO22CA0022 / 323-22-LSF-01 - 44,549
10.510 SPRMCO21CA32901320-21/22-00 1,839,916
19.510 SPRMCO21CA3290 / 320-21/22-00 - 197,905
21.019 EH003
2,322,198
1,232,181 1,372,108
1,232,161 1,372,188
Subtotal-U.S. Dap ment of Homeland Security 64,375
U.S. Department of Health an • Human Services:
Substance Abuse and M . el Health Services Projects of
Regional and Natio = Significance 93.243 H795M061468
93.243 H79T1084096
Mental and Behav oral Health Education
and Tralnin. rants
Basic Cen -. r Grant
Ed alien and Prevention Grants to Reduce Sexual Abuse of
Runaway, Harmless and Street Youth
93.732 M01 HP31270
93732 T28HP39448
93,623 90CY6957
93,623 90CY6962
93,623 90CY7365
318,636
104,328
22,062
443,872
124,033
390,306
201,272
149,168
130,360
93,557 90YO2452 23,944
(Continued)
51
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2022
Federal Grantor/Pass-Throu•h Grantor/Program Title
COVID-19: Emergency Grants to Address Mental and Substance
Use Disorders During COVID-19
Unaccompanied Alien Children Program
Head Start Cluster: COVID-19, Head Start
Head Start Cluster: COVID-19: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Heed Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head Start Cluster: Head Start
Head. Start Cluster: Head Start
Head Start Cluster: Head Start Disaster Recovery
Passed -through from Hillsborough County, Stele of Florida:
Head Start Cluster: Head Start
Passed -through from State of Florida Department of
Children and Families:
Refugee and Entrant Assistance —State Administered
Programs
Federal
A.N
Number
Contract/Grant
Number
Projects for Assistance in Transition from Homelessness
(PATH)
Temporary Assistance for Needy Families
COVID 19: Emergency Grants to Addrese Mental and Substance
Use Disorders During COVID-19
Chlldren's Health Insurance Program
Medicaid Cluster: Medical Assistance Program
State Targeted Response to the Opioid Crisis Grants
Block Grants for Community Mental Health Services
Block Grants for Prevention and Treatment of Substance
Abuse
Block Grants for Community Mental Health Services
Passed -through from Lutheran immigration and
Refugee Services:
Refugee and Entrant Assistance —Voluntary gency
Programs
Refugee and Entrant Assistance Dis• etionary Grants
Unaccompanied Alien Ch{Idran ' ogram
Passed -through from . Committee for Refugees and Immigrants
Block Grants f- Community Mental Health Services
Passed-throug
rom University of South Florida:
93,665
93.676
93.676
83.800
93.800
83.600
93.800
83.800
93.800
93,600
93.600
93.600
93.600
93.800
83.800
93.356
H79FG000416
90ZU0320-02
90ZU0320-03
04HE000622-01 C5 - CRRSA
04HE000822-01 C8 - ARP
04CH011072-03
04CH011072-04
04CH010826-04
04CH010626-05
04CH011190-03
04CH011190-04
04CH011690-01
04CH011690-02
04HP000259-03
04HP000259-04
04TD000155
93.600 04CH011252-01 9-1169
83.600 04CH011252-v f19-1169
93.566 1.K208
93.566 LK2
93.566 R DP-PY'20-06-00
93.566 K063LSF
93.150 EH003
93,5 EH003
.665
93.767
93,778
93.788
93.958
EH003
EH003
EH003
EH003
EH003
93.959 EH003
93,956 LH844
93.587
93.567
93.576
93.576
93,676
93.676
93.676
93.676
93.676
93,598
Health arriage Promotlon and Responsible Fatherhood Grants 93.086
Passed rough from Eckerd Connects, Community Alternatives:
Pr • oting Safe and Stable Families
Temporary Assistance for Needy Families
93.558
93,556
93,558
93.558
2102MDRVMG / 342-21-LSF-00
2202MDRVMG 1342-22-LSF-00
90RP0124-01-01 /354-22-00A
90R1'0124-01-03/354-22-0013
90ZU0318-021358-21-00
90ZU0318-03I358-22-00
90ZU 0394-01 1358-21-01
90ZU0361-01I357-21-00
90ZU0361-02I357-22-00
90ZV0123
5112-6527-00-B-90780924
ECA-C6-CMO-LSF-FY22
ECA-C6-DIV-CFP-FY22
ECA-C6-CMO-LSF-FY22
ECA-C6-DIV-CFP-FY23
(Continued)
52
13,085,783
18,104,934
34,371,409
1,653,457
Provided to
Subreci•ie' s
5 49,543
100,713
204,307
Total
Federal
Ex• enditures
1,810,860
461,795
1,848,549
509,743
5,125,143
2,560,542
627,737
237,240
6 273,429
3,300,483
2,871,438
594,443
718,963
987,774
311,188
12,533,778
3,300,918
10,277,653
2,464,605
15,416,912
5,252,188
1,307,040
411,058
216,715
308,347 606,179
770,995 1,202,382
614,735 1,079,855
2,318,342
396,613
1,008, 909
648,256 846,256
1,902,914
221,566 221,566
619,983 819,963
42,228
13,597,761
18,800,844
34,371,409
25,833 30,274
69,535
1,049,707
518,739
27,140
249,455
138,558
8,669
183,698
190,688
175,617
95,436
31,830
170,673 557,846
564,423
206,734 443,079
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2022
Federal Grantor/Pass-Throw e h Grantor/Pro. ram Title
Federal Total
ALN Contract/Grant Provided to Federal
Number Number Subreai.l. s Ex'andltures
Stephanie Tubbs Jonas Child Welfare Services Program
Foster Care -Title IV-E
Adoption Assistance
Social Services Block Grant
Child Abuse and Neglect Slate Grants
Passed -through from Children's Network of Southwest Florida, LLC:
Promoting Safe and Stable Families 93,558 ABK01 17,423
93,556 WBS01 12,300
Temporary Assistance for Needy Families 93,558 ABK01 - 470,189
93,558 FBRO1 105,030
Grants to Stales for Access and Visitation Programs 93,597 ABKO1 - 22,096
Stephanie Tubbs Janes Child Welfare Services Program 93,645 ABK01 274,770
Foster Care -Title IV-E 93,658 ABK01 1,097,241
93,858 FBRO1 144,844
Adoption Assistance 93,859 ABK01 - 114,377
Social Services Block Grant 93,887 WBS01 81,079
93,687 SATO5 - 6,673
93,667 N/A 8,222
93.645 ECA-06-CMO-LSF-FY22 $ - $ 399,952
93,358 ECA-06-CMO-LSF-FY22 1,340,810
93.858 ECA-C6-HIV-CFP-FY23 340,041 555,712
93.659 ECA-C6-CMO-LSP-FY22 118,638
93.667 ECA-C6-HIV-CFP-FY23
93,689 ECA-C6-HIV-CFP-FY23 4,160 13,596
Passed -through from ChildNet, (no:
Promoting Safe and Stable Families
Foster Care -Title IV-E
Social Services Block Grant
John H. Chafee Foster Cara Program for Successful
Transition to Adulthood
Passed -through from Partnership far Strong Families:
Promoting Safe and Stable Families
Temporary Assistance for Needy Families
Stephanie Tubbs Jones Child Welfare Services Program
Foster Care - Title IV-E
Adoption Assistance
John H. Chafee Foster Care Program for Successfu
Transition to Adulthood
Passed -through from Safe Children Coalition
Promoting Sate and Stable Families
Temporary Assistance for Needy Famil'
Grants to States for Access and Visit ion Programs
Stephanie Tubbs Jones Child Wal -re Services Programs
Foster Care -Title IV-E
Adoption Assistance
John H. Chafee Foster Car- Program for Successful
Transition to Adulthc
Medical Assistance Pr-uram
Passed -through fro Lakeview Center, lnc.:
Foster Caro-' le IV-E
Social Servl-%s Block Grant
Block Gr is for Community Mental Health Services
Subtotal-U.S. Department of
Health and Human Services
93556 LSF20'GC 72,189
93,556 NIA 14,850
93,658 L 23R00 - 607,562
93,658 IA 14,017
93,687 LSF2ORGC 318,334
93,667 LSF2OPIL 89,005
93,6r NIA 5,531
3,674 LSF2OPIL - 2,201
93,556 PCM763
93,558 PCM763
93,645 PCM763
93,658 PCM763
93,658 NIA
93,659 PCM783
93,674 PCM763
10,506
283,556
165,712
536,601
22,031
45,616
1,318
93556 LSFCM20 34,330
93,558 LSFCM20 352,485
93,597 LSFCM20 - 19193
93,845 LSFCM20 222,571
93,658 LSFCM20 695,094
93,659 LSFCM20 61,267
93,674 LSFCM20
93,778 LSFCM20
93,858 C-010-101
93687 C-010-101
93,958 G-010-201
1,605
4,946
5,128
14,475
10,479
86,633,041 151,904,168
Total expenditures of federal awards $ 87,865,222 $ 162,952,055
(Continued)
53
SUBSTITUTED
Lutheran Services Florida, Inc, and Subsidiary
Schedule of Expenditures of Federal Awards and State Financial Assistance (Continued)
Year Ended June 30, 2022
State GrantorfPass-Thro
h Grantor/Pro .ram Title
State Courts System:
Passed -Through from Gulf Coast IGd's House:
Florida Network of Children Advocacy Centers
Department of Children and Families:
Forensic Services and Competency Restoration Training 60.114 EH003 1,230,053 1,230,053
Substance Abuse and Mental Health —Community Services 60.153 EH003 1,666,319 1,666,319
Substance Abuse and Mental Health —Crisis Prevention
and Stabilization Services 60,155 EH003 2,600,000 2,600,003
Centralized Receiving Systems 60,163 EH003 7,908,967 7,908,967
SAMH ME State Funded Federal Excluded Services 60,190 EH003 903,926 903,926
Criminal Justice, Mental Health, and Substance
Abuse Reinvestment Grant Program 80,115 LHZ76 18,438 29,892
60,115 LHZ86 170,539 322,321
State
CSFA ContractlGrant Provided to
Number Number Subreci.i
22.018 NIA
Total
State
Ex. endltures
77,750
Passed -through from Childnet,
Out -Of -Home Supports
Passed -through from Children's Network of
Southwest Florida, LLC.
C8C—Purchase of Therapeudic Services for Children
Subtotal —Department of Children and Families
Department of Education:
Passed -through from Early Learning Coalition of Pinellas
County, Inc.
Voluntary Pre -Kindergarten Education Program 48.108 N/A 165,275
Passed -through from Early Learning Coalition of
Palm Beach County, Inc.:
Voluntary Pre -Kindergarten Education Program 8.1013 N/A - 861,664
Passed -through from the Early Learning Coalition of
Duval, inc..
Voluntary Pre -Kindergarten Education Program 48.108 N/A - 605,821
30,074 LSF20RGC 15,702
60.074 LSF2CPIL 22,647
30.074 NIA 750
60.183 WES01 39,521
14,498,240 14,740,098
Subtotal —Department of Education - 1,432,760
Department of Health:
Medical Services for Abused and Neglected Children 84.006 CP1 PN 41,000
Department of Elder Affairs:
Public Guardianship 65.003 X9208.A3 300,591
65.003 X9238.A3 - 550,658
Subtotal —Department of Elder A' airs 851,247
Department of Juvenile Justice:
Passed -through from Florida Network of Guth and
Pamily Services, inc.:
Children and Families in Ne of Services (GINS/FINS)
80,005 Southeast - 1,091,857
80.005 Northwest 1,483,308
80,005 Southwest 1,774,299
Subtotal —De., rtment of Juvenile Justice 4,349,464
Total exp- ditures of state financial assistance
14,498,240 21,492,319
Teta -xpenditures of federal awards and state financial assistance $ 102.363,462 $ 184,444,374
See notes to .chedule of expenditures of federal awards and state financial assistance.
54
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
Note 1. Basis of Presentation
The accompanying consolidated schedule of expenditures of federal awards and state financ
assistance (the Schedule) includes the federal award and state financial assistance project ctivity of
Lutheran Services Florida, Inc. and Subsidiary, under programs of the federal governme and the state
of Florida for the year ended June 30, 2022. The information in this Schedule is presen d in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform ' .ministrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniforGuidance) and the
State of Florida Chapter 10.650, Rules of the Auditor General. Because the Sched e presents only a
selected portion of the operations of Lutheran Services Florida, Inc. and Subsidiary, it is not intended to
and does not present the financial position, changes in net assets or cash flo of Lutheran Services
Florida, Inc. and Subsidiary.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual •asis of accounting. Such
expenditures are recognized following the cost principles contain= • in the Uniform Guidance and cost
principles established by the State of Florida Department of Fi -ncial Services, wherein certain types of
expenditures are not allowable or are limited as to reimburse ent.
Note 3. Indirect Cost Rate
Lutheran Services Florida, Inc. and Subsidiary has el • cted not to use the 10% de minimis indirect cost
rate as allowed under the Uniform Guidance.
Note 4. Other
The accompanying Schedule presents fed= al expenditures and state financial assistance by
pass -through agency. Expenditures of c- ain federal programs and state financial assistance projects
were awarded to Lutheran Services FI• ida, Inc. and Subsidiary by more than one pass -through agency
or under more than one contract. To expenditures by federal award program and state financial
assistance project are summarize. .n pages 56-57.
55
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
ederal
ALN No. Federal Pro_ ram or Cluster ' x.enditures
10.558 Child and Adult Care Food Program 6,286,857
10.558 COVID-19: Child and Adult Care Food Program 485,270
14.218 CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement ant 13,260
14.241 Housing Opportunities for Persons with AIDS 184,804
16.575 Crime Victim Assistance 298,935
19.510 U.S. Refugee Admissions Program 2,059,991
19.510 COVID-19: U.S. Refugee Admissions Program 262,207
21.019 COVID-19: Coronavirus Relief Fund 1,372,188
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants 95,436
93.150 Projects for Assistance in Transition from Homelessness (PATH) 646,258
93.243 Substance Abuse and Mental Health Services Projects of Regional anational Significance 465,934
93.356 Head Start Cluster: Head Start Disaster Recovery 218,715
93.556 Promoting Safe and Stable Families 751,076
Education and Prevention Grants to Reduce Sexual Abuse of . away,
93.557 Homeless and Street Youth 23,944
93.558 Temporary Assistance for Needy Families 4,271,562
93.566 Refugee and Entrant Assistance —State Administered P grams 4,803,719
93.567 Refugee and Entrant Assistance ---Voluntary Agency P ograms 1,110,242
93.576 Refugee and Entrant Assistance Discretionary Gra 545,879
93.597 Grants to States for Access and Visitation Progra' s 41,291
93.598 Services to Victims of a Severe Form of Traffic ng 175,617
93,600 Head Start Cluster: Head Start 54,052,949
93.600 COVID-19: Head Start Cluster: Head Sta 1,313,406
93.623 Basic Center Grant 480,800
93.645 Stephanie Tubbs Jones Child Welfar= ervices Program 1,063,035
93.658 Foster Care —Title IV-E 5,019,040
93.659 Adoption Assistance 339,896
93.665 COVID-19: Emergency Grants o Address Mental and Substance Use Disorders
During COVID-19 499,995
93.667 Social Services Block Gr. 523,322
93.669 Child Abuse and Negle. State Grants 13,596
93.674 John H. Chafee Fost Care Program for Successful Transition to Adulthood 5,124
93.676 Unaccompanied A Children Program 6,051,989
93.732 Mental and Beh. Moral Health Education and Training Grants 814,339
93.767 Children's He. h Insurance Program 819,963
93.778 Medicaid CI . ter: Medical Assistance Program 47,174
93.788 State Tar,-ted Response to the Opioid Crisis Grants 13,597,761
93.958 Block ants for Community Mental Health Services 18,841,597
93.959 Bloc, Grants for Prevention and Treatment of Substance Abuse 34,371,409
97.010 Ci enship Education and Training 84,375
Total expenditures of federal awards $ 162,952,055
56
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance
Year Ended June 30, 2022
State
CSFA No. State Fnancial Assistance Pro.ect ' x.enditures
22.016 Florida Network of Children Advocacy Centers 77,750
48.108 Voluntary Pre -Kindergarten Education Program 1,432,760
60.074 Out -Of -Home Supports 39,099
60.114 Forensic Services and Competency Restoration Training 1,230,053
60.115 Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Progra 352,213
60.153 Substance Abuse and Mental Health —Community Services 1,668,319
60.155 Substance Abuse and Mental Health. --Crisis Prevention and Stabilization Sery s 2,600,000
60.163 Centralized Receiving Systems 7,908,967
60.183 CBC—Purchase of Therapeudic Services for Children 39,521
60.190 SAMH ME State Funded Federal Excluded Services 903,926
64.006 Medical Services for Abused and Neglected Children 41,000
65.003 Public Guardianship 851,247
80.005 Children and Families in Need of Services (CINS/FINS) 4,349,464
Total expenditures of state financial assistance $ 21,492,319
57
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs
Year Ended June 30, 2022
Section I —Summary of Auditor's Results
Financial Statements
Type of auditor's report issued on whether the financial
statements audited were prepared in accordance with
U.S. GAAP:
Unmodified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Rep. e
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes None Reported
Type of auditor's report issued on compliance for
major programs: Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Section 2 CFR 200.516(a)?
Identification of major federal programs:
ALN Number(s)
19.510
93.788
93.959
93.767
Yes X No
Name of Federal Program or Cluster:
U.S. Refugee Admissions Program
State Targeted Response to the Opioid Crisis Grants
Block Grants for Prevention and Treatment of Substance Abuse
Children's Health Insurance Program
Dollar threshold used to distinguish betwe= type A
and type B programs: $ 3,000,000
Auditee qualified as low -risk audite
X Yes No
(Continued)
58
SUBSTITUTED
Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Section I —Summary of Auditor's Results (Continued)
State Financial Assistance Projects
Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified? Yes X None Reported
Type of auditor's report issued on compliance for
major programs: Unmodif
Any audit findings disclosed that are required to be
reported in accordance with Chapter 10.650?
Identification of major projects:
CSFA Number(s)
60.163
80,005
Dollar threshold used to distinguish between type A
and type B programs: 750,000
Yes X No
Name of Gate Financial Assistance Pro'ect
Centralized Roc : ing Systems
Children and F-milies in Need of Services (CINS/FINS)
(Conlin
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Lutheran Services Florida, Inc. and Subsidiary
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Section II —Financial Statement Findings
None reported.
Section III —Findings and Questioned Costs for Federal Awards and State Financial ssistance
None reported.
Section IV —Other Reporting
There was no management letter or control deficiency letter issued for the ye- ended June 30, 2022, as
there were no matters required to be reported in these letters.
No Corrective Action Plan is presented because there were no findings —quired to be reported under the
Federal Single Audit Act or the Florida Single Audit Act.
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Lutheran Services Florida
Summary Schedule of Prior Year Audit Findings
YEAR ENDED JUNE 30, 2022
Identifying Number: 2021-001- Subrecipient Monitoring Risk Assessment
Finding: During their test work, RSM noted that the Organization conducted an evaluatio of three
subrecipients, but the Organization did not formally document the evaluation of each o hese
subrecipients as it pertains to the risk of noncompliance with federal statutes, regula '.ns, and the terms
and conditions of each sub -award for purposes of determining appropriate subrecient monitoring. Due
to this, a conclusion was not formally reached as to the level of required monitori.. for each subrecipient
to ensure proper accountability and compliance with60program requirements an achievement of
performance goals.
LSF Comments: Lutheran Services Florida currently has 72 subrecipien of State and Federal funding
approximating $138 million dollars. We have met the subrecipient mo ' oring requirements for those
subrecipients for many years. The subrecipient agreements referen -d above were agreements entered
into during fiscal year 2020 for a total of $1.1 million dollars in a di •rent line of business than our current
subrecipients. Given the Covid pandemic and staffing constrain : we were unable to fully document the
evaluation of each of these subrecipients during fiscal year 20
Corrective Actions Taken or Planned: After our fiscal year nded June 30, 2021, LSF did document a
formalized risk assessment approach to be taken for these subrecipients. In January 2022, risk
assessment checklists were sent to the subrecipients entioned above, Those checklists have been
returned to LSF and a full risk assessment monitorin will take place in February 2022. In addition, risk
assessments will be completed annually for these =ubrecipients.
Follow Up as of December 2022 — Risk Asses- ents checklists were sent in January 2022 to the
subrecipients for them to complete. The sub cipients returned the completed risk assessments in
February 2022. Our monitoring of their inf• oration took place in March 2022. The subrecipients were
identified as "low risk" and we complete. our reviews in March and April 2022. The final subrecipient
monitoring reports are currently being-.rocessed,
Jdentifvina Number: 2021-002- ' ederal Funding Accountability and Transparency Act (FFATA)
Finding: Per 2 CFR 170, dir, t recipients of grants or cooperative agreements who make first -tier
subawards of $30,000 or ore are required to register in the Federal Funding Accountability and
Transparency Act Suba -rd Reporting System (FSRS) and report subaward data through FSRS.
LSF Comments: LS was unaware of this requirement that has been in effect since October 2010 and
this issue was not '.entitled in any prior audits. This requirement applies to 4 LSF subcontracts in our
Head Start progr m.
Corrective y ions Taken or Planned: LSF will enter the required data into the Federal Funding
Accounta ity and Transparency Act Subaward Reporting System (FSRS) for these 4 contracts in
Februar 022 and will continue this practice of reporting the data when entering into a new contract or
amen.' g/renewing a current contract per the FFATA requirements.
F. ow U. as of December 2022 — LSF entered the subrecipient data into the FSRS in February 2022.
also entered into new contracts with these subcontractors effective April 1, 2022. The new contract
information was entered in April 2022, within 30 days of the new contracts being executed.
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The responsible person is the Chief Financial Officer.
Sincerely,
F
Robert Wydra
Chief Financial Officer