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HomeMy WebLinkAboutPre Exhibit 1EXHIBIT "A" 1525 NORTHWEST 50TH STREET fMULTi FAMILY RENTAL PROJECT: 7 UNITS FOR LOW INCOME PERSONI Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 82, of the Public Records of Miami -Dade County, Florida. SECOND AMENDED CORRECTIVE QUIT -CLAIM DEED THIS AMENDED CORRECTIVE CITY DEED is made as of the C2C,)�, day of CtVIUCA' , 2010 by the City of Miami, a municipal corporation of the State of Florida, whole post office address is 444 S.W. 2°d Avenue, Miami, Florida 33130, (hereinafter called the "Grantor"), to Miami Dream Homes Investment Group, Inc., a Florida corporation, whose address is 5801 NW 151 Street, Suite 101 Miami Lakes, Florida 33014, (hereinafter called the "Grantee"). WITNESSETH: That the Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and good and other valuable consideration, the receipt of which is hereby acknowledged, does hereby remise, release, convey and quit -claim unto the Grantee forever, all of the Grantors right, title and interest in that certain land situated in Miami -Dade County, Florida, hereinafter referred to as the "Property", to wit: Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a.k.a. 1525 N.W. 60 Street, Miami, Florida. Subject to: Conditions, restrictions, easements, limitations and reservations of record, though reference is not intended to reimpose same; 2. Applicable zoning ordinances, codes, rules and regulations; Taxes and assessments for the current year and all subsequent years; THIS DEED CORRECTS CONDITIONS/RESTRICTIONS NOS. 5 AND 7 STATED IN THAT CERTAIN AMENDED CORRECTIVE QUIT CLAIM DEED DATED MAY 1, 2009, RECORDED MAY 28, 2009, IN OFFICIAL RECORDS BOOK 26880, AT PAGES 44724480, OF THE PUBLIC RECORDS OF MIAMI- DADE COUNTY, FLORIDA. kcs:Document 202845 (2) f 111111111111111111111111111111111111 110M CFN 201`OROOSS333 OR Bk 27177 Pss 0799 - 802; (4css) RECORDED 02/09/2010 10:34:21 This Instrument Prepared By HARVEY RUVINY CLERK. OF COURT and Return To: MIAMI-DADE COUNTY: FLORIDA Kymberlee C. Smith, Esq. City of Miami Office of the City Attorney 4-44S . W. 2� Avenue Miami, Florida 33130-1910 SECOND AMENDED CORRECTIVE QUIT -CLAIM DEED THIS AMENDED CORRECTIVE CITY DEED is made as of the C2C,)�, day of CtVIUCA' , 2010 by the City of Miami, a municipal corporation of the State of Florida, whole post office address is 444 S.W. 2°d Avenue, Miami, Florida 33130, (hereinafter called the "Grantor"), to Miami Dream Homes Investment Group, Inc., a Florida corporation, whose address is 5801 NW 151 Street, Suite 101 Miami Lakes, Florida 33014, (hereinafter called the "Grantee"). WITNESSETH: That the Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and good and other valuable consideration, the receipt of which is hereby acknowledged, does hereby remise, release, convey and quit -claim unto the Grantee forever, all of the Grantors right, title and interest in that certain land situated in Miami -Dade County, Florida, hereinafter referred to as the "Property", to wit: Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a.k.a. 1525 N.W. 60 Street, Miami, Florida. Subject to: Conditions, restrictions, easements, limitations and reservations of record, though reference is not intended to reimpose same; 2. Applicable zoning ordinances, codes, rules and regulations; Taxes and assessments for the current year and all subsequent years; THIS DEED CORRECTS CONDITIONS/RESTRICTIONS NOS. 5 AND 7 STATED IN THAT CERTAIN AMENDED CORRECTIVE QUIT CLAIM DEED DATED MAY 1, 2009, RECORDED MAY 28, 2009, IN OFFICIAL RECORDS BOOK 26880, AT PAGES 44724480, OF THE PUBLIC RECORDS OF MIAMI- DADE COUNTY, FLORIDA. kcs:Document 202845 (2) The Property is being taken by the Grantee "as is" with the Grantee being solely responsible for the removal of any environmental contamination if present on the Property; The title to the Property shall immediately and automatically revert to and vest in the Grantor in the event that (A) within six (6) months from the date of this Second Amended Corrective Quit -Claim Deed, or such later date as may be approved by the City Commission of the City of Miami, the Grantee has not completed construction, to the satisfaction of the Grantor in its sole judgment, of a seven (7) unit multi -family rental project on the parcel located at Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Miami -Dade County, Florida, a.k.a. 1525 N.W, 60th Street, Miami, Florida, or (B) on or before June 30, 2010, or such later date as may be approved by the City Commission of the City of Miami: (i) the construction of the seven (7) unit multi -family rental project has not been completed, as evidenced by the issuance of all required Certificates of Occupancy, or (ii) the Grantee has not conveyed to the Grantor by Special Warranty Deed the seven (7) unit multi -family rental project and the parcel located at Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a.k.a. 1525 N.W. 60th Street, Miami - Dade, Florida; and 6. (Deleted) The Property is subject to all restrictions as stated in Resolution 05-0357 adopted by the City Commission on May 26, 2005, Resolution 06-0329 adopted by the City Commission on.May 25, 2006, Resolution No. 07- 0133 adopted by the City Commission on March 8, 2007, Resolution No. 08-0250 adopted by the City Commission on May 8, 2008, Resolution No. 09-0174 adopted by the City Commission on April 2, 2009 and Resolution No. 09-0565 Adopted by the City Commission on December 17, 2009. To Have and To Hold, the same together with all and singular tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity, and claim whatsoever of the Grantor, either in law or in equity, to the use, benefit and behalf of the Grantee forever. IN WITNESS WHEREOF, the said Grantor has signed and sealed these presents the day and year first written above. kcs:Document 202845 (2) r%--1_^-7A-7-7/r1_-._f1AA '%rL 11 ^^w-r.^n^^ ^^ - - I . Signed, sealed and delivered in our presence: Pri tName: evc- -t�- Print Name: Approved as To Form And Correctness: Julie,O. Bru s City Attome STATE OF FLORIDA ) SS COUNTY OF DADE ) City of Miami, a municipal corp atio f the State of Florida By: Pedro G. Hernandez City Manager Attest: llftlkztn� Priscilla A. Thompson , _aS- t o "' City Clerk CThe foregoing instrument was acknowledged before me this o2a day of F , 2010 by ?{alio 2 as City Manager of the City of Miamij municipal corporation of the State of Florida, who is personally known to me or who has produced as identification and w-Fo—d-idtft- not take an oath. NOTARY PUBIXSTATE OF FILRTDA . Ofelia E. i ted Name: n`Commission # DD701412 ,, ./ Expires: AUG. 02, 2011 Ce �lLi. �t' ✓'� BONDED THRD ATLANf[C BONCO, LN DING COC Prin"l � • �' Notary Public My Commission Expires: The foregoing conveyance was approved pursuant to Resolution No. R -No. 09-0565 of the City Commission of the City of Miami, a municipal corporation of the State of Florida, passed and adopted on December 17, 2009. A copy of Resolution No. 09-0565 adopted by the City Commission on December 17, 2009 is attached hereto as Exhibit 'Ali kcs:Document 202845 (2) n.. _� n�♦�—s ire.. nn� i'a r-s�renn�nnnn nn nn n... _. n r . OR BK 27177 PG 0802 LAST PAGE Exhibit A Resolution No. R-09-0565 of the City Commission of the City of Miami, passed and adopted on December 17, 2009. kcsDBocument 202945 (2) This Instrument Prepared By and Retum To: Denise Wallace, Esq. City of Miarni Office of the City Attorney 444 S.W. 2ND Avenue Miami, Florida 33130-1910 ' `11111 Ilfll 1If11 Ilfll lilif If[fl foil (I!f fll CF1+4 2r-►09R►D3u54.22 OR Bk 2682 -Cl P.9s 4472 - 4480; {9As RECDRDED 05/28/2009 09:38:42 DEED DOC TAX 0.60 SURTAX 0.45 HARVEY RUVINr CLERK OF COURT MIAMI-DADE CDUNTYr FLORIDA AMENDED CORRECTIVE QUIT -CLAIM DEED THIS AMENDED CORRECTIVE CITY DEED is made as of the — y4-=— day of U 2009 by the City of Miami, a municipal corporation of the State of Florida, hose post office address is 444 S.W. 2nd Avenue, Miami, Florida 33130, (hereinafter called the "Grantor"), to Miami Dream Homes Investment Group, Inc., a Florida corporation, whose address is 220 N.W. 130'' Avenue, Miami, Florida 33182, (hereinafter called the "Grantee"). WITNESSETH: That the Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and good and other valuable consideration, the receipt of which is hereby acknowledged, does hereby remise, release, convey and quit -claim unto the Grantee forever, all of the Grantors right, title and interest in that certain land situated in Miami -Dade County, Florida, hereinafter referred to as the "Property", to wit: Lots 19 and 20, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Dade County, Florida, a.k.a. 6020 N.W. 15 Avenue, Miami, Florida. T-Tre Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a.k.a. 1525 N.W. 60 Street, Miami, Florida. Subject to: _.._.. - 1. Conditions, restrictions, easements, limitations and reservations of record, though reference is not intended to reimpose same; Applicable zoning ordinances, codes, rules and regulations; Taxes and assessments for the current year and all subsequent years; THIS DEED CORRECTS CONDITIONS/RESTRICTIONS NOS. 5, 6 AND 7 STATED IN THAT CERTAIN CORRECTIVE QUIT CLAIM DEED DATED JULY 5, 2006, RECORDED SEPTEMBER 16, 2006, IN OFFICIAL RECORDS BOOK 24907, AT PAGE 3005, OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA. The Property is being taken by the Grantee "as is" with the Grantee being solely responsible for the removal of any environmental contamination if present on the Property; and 5. The title to the Property shall immediately and automatically revert to and vest in the Grantor in the event that (A) within six (6) months from the date of this Amended Corrective Quit -Claim Deed, or such later date as may be approved by the City Commission of the City of Miami, the Grantee has not (i) commenced construction, to the satisfaction of the Grantor in its sole judgment, of a fifteen (15) unit multi -family rental project on the parcel located at Lots 19 and 20, Block 12, of ORANGE HEIGHTS; according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a.k.a. 6020 N.W. 15 Avenue, Miami, Florida, by June 30, 2010, or (ii) the construction of the fifteen (15) unit multi -family rental project has not been completed, as evidenced by the issuance of all required Certificates of Occupancy by June 30, 2011, or such later date as may be approved by the City Commission of the City of Miami, or (B) within six (6) months ftom the date of this Amended Corrective Quit -Claim Deed, or such later date as may be approved by the City Commission of the City of Miami, the Grantee has not completed construction, to the satisfaction of the Grantor in its sole judgment, of a seven (7) unit multi -family rental project on the parcel located at Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a.k.a. 1525 N.W. 60 Street, Miami, Florida, or (C) on or before December 31, 2009, or such later date as may be approved by the City Commission of the City of Miami: (i) the construction of the seven (7) unit multi -family rental project has not been completed, as evidenced by the issuance of all required Certificates of Occupancy, or (ii) the Grantee has not conveyed to the Grantor by Special Warranty Deed the seven (7) unit multi -family rental project and the parcel located at Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, page 62, of the Public Records of Dade County, Florida, a k.a. 1525 N.W. 60 Street, Miami, Florida. 6. (Deleted) The Property is subject to all restrictions as stated in Resolution 05-0357 adopted by the City Commission on May 26, 2005, Resolution 06-0329 adopted by the City Commission on May 25, 2006, Resolution No. 07- 0133 adopted by the City Commission on March 8, 2007, Resolution No. 08-0250 adopted by the City Commission on May 8, 2008, and Resolution No. 09-0174 adopted by the City Commission on April 2, 2009. To Have and To Hold, the same together with all and singular tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity, and claim whatsoever of the Grantor, either in law or in equity, to the use, benefit and behalf of the Grantee forever. IN WITNESS WHEREOF, the said Grantor has signed and sealed these presents the day and year first written above. Signed, sealed and delivered in.our presence: 1�� in,Q�act Print N e; iz� Print Name: Approved as To Form And Correctness: Julie 0. Bru a5w City Attorney STATE OF FLORIDA ) SS COUNTY OF DADE } City of Miami, a municipal corporation of the State of Florida vt)/�� By Pe41- andez Ci The foregoing instrument was acknowledged before me this � day of ►�cq , 2009 by kLy y q Z r*n as City Manager of the City of Miami, a municipal corporation of the tate of Florida, who is personally known to me or who has produced as identification and who did/did not take an oath. Printed Name: �prjrq Kwon Notary Public My Commission Expires: NOTARY MLIC STAT$ OF FLORIDA ...... , Sandra Rivera Commission #DD882219 .,,►T/ Expires: APR 20, 2013 The foregoing conveyance was approved pursuant to Resolution No. R -No. 09-0174 of the City Cor unission of the .City of Miami, a municipal corporation of the State of Florida, passed and adopted on April. 2, 2009. A copy of Resolution No. R- No, 09 -0174 - adopted by the City Commission on April 2, 2009 is attached hereto as Exhibit "A". 4_ Exhibit A Resolution No. R-09-0174 of the City Commission of the City of Miami, passed'aud . adopted on April 2, 1009. 5 ... Tros instrument Pre.pared $v s7t- _..,.._.. and Return To: - - - ., 1LE^'E TEMCHIM1:. EnQ. .. _. CITY OF MIAMI CITYATTORNEY'S OFFICE .44 S.W. 2" AVEtqUE 'F ,. :•�� .t ::�.,�, NIIA_MI FLOPJDA3?i30-1570 _... .. ._„G.:_'' ., CORRECTIVE QUIT CLAIM DEED This Corrcctive Quit-Clairn Deed, Is made as of this 5 day of Tt11y, 2006, by the City of M;a1111, a municipal colpoiatlon of the State of Florida, whose Dost of?ice address is 444 S.W. 2nd .Avenue; Nllaau, Florida 3130, herei, after called the "Graritor', to lViLaini Dream Homes Investment Group, inc., a Florida corporation, whose address is 220 N.W, 130th (!venue, Miami, Florida 33182, hereinafter called the "Gra tee” Witnesseth: That the Grantor, for and n consideration of the sum of Teti Dollars ($10.00) and other valuable cons-�der atioo, the receipt of whr ch is hereby acknowledged, does hereby remise, release, convey and quit -claim unto the Grartee forever, all of the Grantor's right, title and interest In that certain land situated in Miami -Dade County, Florida, hereirafter referred to as the " Prope.Tty to 'wit: Lots 19 and 20. Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Boor 14, Page 52, of the Public Records of Dade County, Florida, a.k.a 6020N W. 15 Avenue, Miami, Florida. and .1 Lots ) 2 and 13, Block 13:. of ORkNGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Dade County, Florida, a.k.a. 1612 N.W. 60 Street, Miand, Florida. and J Lot 24, Block ) 3, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Bock 14, Page 52, of the Public Records of Dade Courity, Florida, a.k.a. 1543 N.W. 59 Street, ivliairi, Florida. aI:d Lots 11, 12 and 13, Block 14, of ORANGE HEIGHTS, according to the Plat Thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Dade County, Florida, a.k.a. 1.535 N.W. 58 Ten -ace, Miails, Florida. and THIS DEED CORRECTS CONDITIONS/RESTRICTIONS NO. 5 AND 7 STATED Iii' THAT CERTAIN QUIT CLAIM DEED DATED SEPTEMBER 27, 2005, RECORDED SEPTEMBER 28. 005, IN OFFICIAL RECORDS BOOK 2381 7; AT PAGE 3363, OF THE PUBLIC RECO, SOF MIAMI -RADE COUNTY, FLORIDA. &Document 43 i 37 Page') of 3 Subject to: Loi: Block 12, of OR^_1vGE iElGKTS; ac rig to the Prat thereof, as recorded in Plat Book l4, -Page 62, of the Piiblic Records of Dade CourtY, Florda, a.k a. 152-5 INFW1. 60 S?reet, Miami, Florida. an d Lot 25, Block 9, of OP.ANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book i4, Page 62, cf the P-wlic Records of Dade CUuniJ, Florida, a.k.a. 147-7 Tv.W, 60 .Sireet, r✓112e7:1; FlUylo's. CUnd1tPo77S; ieStriCilCnS, easements, hiT,itat701S 2714 reSBrvatlpnS Cr reGC]'d, t11CLgi1 this reference is no: intended to reirnrose sante; ?. Applicable zoning ordinances, codes; ru+es and re=llaticns; ;i. Tciws 2nQ asscssrnents ICT fife p IIeni 'rl5ay and a_l Su bSeGllent 4. T: -,e PTc-pe-y is being taken by t e Grar_tee "as is" with t)ie Grantee being solely itsponsible for the remova) of any envlrom-iertal contamination '_I present on the Property; and 5. : he title to the Property shall immediately and actomatically revert -ro and vest in ,he Grantor in the event that (A) within six (6) Tnorths from the date of this Corrective Quit Claim Deed, or such late? date as may be approved by the City Ccrnrr,ission of the City of Miam6, the Grant" has not coiru-nenced construction, to the satisfaction of the Grantor in its sole'udgnient, of a nuni rn-tn of nine (9) single-family homes, or a combination of nine (9) townhcmes and condominiums (hereinafter referred to as the "Homes`), on the Property, or (B) within six (6) months from the date of this Corrective Quit Claim Deed, eT such later date as :nay be approved by the City Con-um?sslon of the City of Ivi]a:rii; the Grantee has not commenced cons -ruction, to the satisfaction of the Grant -Or in its sole judgmt-, t, of a seven (7) unit mull- family rental project on the parcel located at Lot 15, Block 12, of ORANGE HEIGHTS, accoidin_ to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Record_ of Dade County, Florida, a.k.a. 1525 N.W. 60 Street, Miami, Florida, =r (C) on or before April 30, 2008, or such later date as may be approved by the City CcTmm_ission of t1ie City, of Miami: (i) the construction of all of the Hornes has not been completed, as evidenced by the issuance of Certificates of Occupancy, or (ii) all such single family Homes have not been sold to qualified Low income homebuyers (as defined in the HOME Investment Partnerships Program Regulations, 24 CFR Part 92), DI (in) the construction oI the seven (7) uni. multi- far_:ily Tenta] pIoject has not been completed, as evidenced by the mu2nce of all required Celi;fiCates of Occupancy, or (iv) the Grantee .has not conveyed to the Grantor by Special Wt 711anty Deed the seven (%) un?t multi- faiTul'y' Iental project and the parcel located at Lot 15, Block 12, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Boot: 14, Page 62, of the Public Records of Dade. County, Florida, a.k.a. 1525 N.W. 60 Street, Miarni, Florida. The sales price for each of the Hones shall not exceed $236;000.00 per blit. ?age 2 of 3 A.Docu,nent 43137 I ht P )e.iiy is siib)eCt -Lo ail j tStliCt;OnS as Stale: 9 P_.,..o_tS i1U-i : �_cn 0)3-0357 adcpced by th. _TN' Com= 7isslon on 1viay 26, 2005 an -6 rolttion 06-0'29 adopted by the City Co -m :issioh or. Nfay %5, 2005. " G Dave and To Hold, Lhe salr_e rogethc! '-with all anal singala7 tcnements, heredltaR7ents and appuiienances thereto belonging or in ar�rxise appertalnlrg, and ail the eStaTt, Light, btl`_, interest, leen, equity, and claim whatsoev-,T of the CIantor, ether in raw. cr In equity: to the use.. benefit and behalf of The Grantee forever. N VTITNESS'r>HEREOF, the said Grantor has signed and stalled :hese presen's the day and vtar fast written abo'Vt. Signed, sealed and delivered i; Qua pr, en f� j) Print Name: CITY OF MI -.MI, a ma icival corpoiation of the State of Florida By Pedro G. Hern-,,&aez City Manager APPRM- ED AS TO FOKM AND _ ATTEST: E IY FEZ P ISCII LAA THOMPS91 ttorn City Clerk _HCl~-NGWLEDGMEN T STATE OF FLORIDA VSs CO; NTTY OF MIAMI -DADS ; Before me, the undersigned athority, nermnaliy appeared 3 ".Ua, as City Manager of the City of Miami, to me well known to be the person described m and who executed she. foregoLng ]nrS4 mtnt and who acknowledged to and before me t72i Lt exeCLteC said iIlSiilP_lent under cath, and for the purposes therein expressed. Witness my han'd ?.nd official seal 1P, the County aria State last aIoresald the Po day of r�J J 2006. PRINTED, STAMPED OR TYPED SIG ATURE OF N ARY PUBLIC NAME OF NOTARY PUBLIC S T ATE OF FLORIDA My Ccnu_iission Expires. rage 3 of 3 iDocumeot 431,7 -`_°`,_; :�`,r'. GG.".imissir,!, g u) N 1313 J 26, -111011 Thru or . , < <la:-'uc ):n!iine Co., t,ic. cis ];:s:'rument Prepared By uc Itcturu Ta: :RK It. ?-[ENENDEZ, ESQ. ??ORNEY'S OFFICE S.tY. 1V° AVENUE AnO. FLORIDA 33130-7910 ,1111111111111111111.111111111 Bili 111111 C:FN '20Cr.rli2i �I_bb4� DK Bk 23817 Pvs "363 — ,i 6, FEC:DRDED DEED DOC TAAY C1.60 SURTAk: ii,�.; N*'.VEY RJJVIfil, iLEfiK. PF (OUPI I'llAr1I-•DAPE C:UUN1'fr FLORIDA This Quit -Claim Deed, is made this _'Z�day of September 2005, by the` City of Miami, a municipal .orporation of the State of Florida, whose post ofr,ce address is 444 S.W. 2nd Avenue, Miarni, Florida '3130, hereinafter called the "Grantor'`, to Miami Dream Homes Investment Group, Inc., a Florida corporation, whose address 220 N.W. 130"' Avenue, Miami, Florida 33132, hereinafter called the "Grantee". Witnesseth: That the Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and other •aivable consideration, the receipt of which is hereby acknowledged, does hereby remise, release, convey nd quit -claim unto the Grantee forever, all of the Grantor's right, title and interest in that certain land situate in Miami -Dade Counry, Florida, hereinafter referred to as the "Property", to wit: Lots 19 and 20, Block i2, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Dade County, Florida, a.k.a. 6020 N.W. 15 .Avenue, Miami, Florida. and Lots 12 and 13, Block 13, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Flat Book 14,.Page 62, of the Public Records of Dade County, Florida, a.k.a. 1612 N. W. 60 Street, Miami, Florida. and Lot 24, Block 13, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Paee 62, of the Public Records of Dade County, Florida, a.k.a. 1543 N.W. 59 Street, Miami, Florida. and , Lcts 11, 12 and 13, Block 14, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Dade County, Florida, a.k.a 1535 N.W. 58 Terrace, Miami, Florida. and Lot 15, Block 12, of ORAiyGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, :Page 62, of the Public Records of Dade Counrv, Florida, a.k.a. 1525 N.W. 60 Street, Miami, Florida. and Lot 25, Block 9, of ORANGE HEIGHTS, according to the Plat thereof, as recorded in Plat Book 14, Page 62, of the Public Records of Dade County, Florida, a.k.a. 1477 N.W. 60 Street, Miami, Florida. subject to: 1. Conditions, restrictions, easements, limitations and reservations of record, though this reference is not intended to reimpose same;. {�Jt1Qi,p 2. Applicable zoning ordinances, codes, rules and reeulations; V. 3. Taxes and assessments for the currenr year and all subsequent years; 0 4. The Property is being taken by the Grantee "as is" with the Grantee being solely responsible for the removal of any environmental cortamiration if present on the Property; and 5. The title to the Property shall immediately and automatically revert to and vest in the Grantor in the event that: (1) the Grantee has not commenced construction, to the satisfaction of the Grantor in its sole judgment, of a minimum of (10) ten single-family homes or a combination of (10) ten townhomes and condominiums, hereinafter referred to as the "Homes", on the Property within twelve (12) months from the date hereof, andlor (2) the construction of the homes has not been compteted, as evidenced by the issuance of Certificates of Occupancy, and all such single family homes have not been sold to qualified Low Income hom-ebuyers (as defined in the HOME Investment Partnerships Program Regulations, 24 CY R. Part 92) by .aril 30, 2008_, or such later date as may be approved by the City Commission of the City of Niami. 6. The sales price of the Home;, shall not exceed $236,000.00 per unit. 7. Th -e. Property is subject to a.11 restrictions as stated in Resolution 05-0357 adopted by the City Commission on May 26, 2005, To Have and To Hold, the same together with all and singular tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining, and all the estate, right, title, interest, lien, equity, and claim whatsoever of the Grantor, either in law or in equity, to the use; 'benefit and behalf of the ..Trantee forever. IN WITNESS WHEREOF, the said Grantor has signed and sealed these presents the day and year ;first written above. Signed, sealed and delivered n our preseennoe: y� tfi!nt Name: to L.1, 'P, Irirnt Name: APPROVED AS TO FCR14 AND OR RNANDEZ kR City Attorney ATE OF FLORIDA ) )SS: AUNTY OF M AMI -DADS ,� CITY OF MIAMI, a municipal corporation Of ti By ATTEST: t P.RI ILLA A.' T. OM -04 City Clerk` t ACKNOWLEDGMENT t I N: 3531.7 F -G 33,6!5 L_i T PAGE Before me, the undersigned authority, personally appeared Joe Arriola, as City Manager of the City.of Miami, to me well known to be the person described in and who executed the foregoi-ng instrument and who acknowledged to and before me that he executed said instrument under oath, and for the purposes :herein expressed. Witness my hand and official seal in the County and State last -aforesaid this day of September, 2005. =RINTED, STAMPED OR TYPED SI NATURE O ; IOTA PUBLIC ;tiAmE OF NOTARY PUBLIC S .ATE OF FLORIDA My C6mmission Expires Ofelia E. Perez �tP.�'s Comrrission4DD221319 KkM — Miami Dream Homes '�= Ex fires: Jul 2b, 2007 � gl p Bonded TThti Of Atlantic Bonding Co., Inc. CV in,y.v !DPP t _. aN EmP �ER `'U" INC.. 'A NOT FGB PRDtiT PEER BASED DRGAKU"ON' June 4, 2010 Mr. George Mensah, Director Community Development Department City of Miami 444 SW 2nd Avenue, 2nd Floor Miami, Florida 33131 Dear Mr. Mensah: 8309 NW 22'6 Avenue Miami, Florida 33147-4101 Phone: (786) 318-2337 Fax: (786) 318-2339 Email: wecanhelp@empower- u-miami.erg Website: www.empower-u-miami.org FiiRf!Ra1..°.. JUN 17 2010 Empower U Inc., a nonprofit, 5016, HIV/AIDS service organization formerly request the conveyance of the property located at 1525 NW 60`i' Street in the Liberty City area of Miami, Florida, 33142. Liberty City is the area that Empower U has served since its inception in 1999. We are well aware the tremendous need for affordable housing services for people living with HV/AIDS in this area. Therefore, Empower U would like to use this property to use to house low-income individuals living with HIV/AIDS and receive rental assistance via HOPWA or other rent subsidy programs. In addition to affordable housing, individuals housed in these units will have access to the HIV/AIDS support services provided at Empower U and at its network of providers. These services include, but are not limited to, medical case management, medical services, oral health care, prescription drugs, substance abuse treatment, psychosocial counseling, transportation, food, social activities and HIV prevention/education. To demonstrate our ability to financially support the operation of this project, attached please find our financial statements from the past three years, as well as a projected budget for the program. If you have any questions regarding this proposal, please feel free to contact our Director of Finance, Christine Stroy-Martin at 786-318-2337 ext 116. Sinc ely, Vanessa Mills, LPN, BSN, MPH Executive Director C1+RE:S� ..� i RRA}vaYt EMPOWER'U', INC. FINANCIAL STATEMENTS FEBRUARY 28, 20077NU 2006 STUART GLADSDEN, C.P.A. 1895 SW 14TH TERRACE MIAMI, FL 33145 Tel. 305-860-6974 EMPOWER'U', INC. Miami; FL I have audited the accompanying balance sheet of EMPOWER'U', INC. (A Not -For -Profit Organization) as of February 28, 2007 and 2006, and the related statements of activities, functional expenses and cash flows for the years then.ended. These financial statements are the responsibility of EMPOWER'U', INC.'s management. conducted my audit in accordance with generally accepted auditing standards 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 I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit'also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the financial` statements referred to above present fairly in all material respects the financial positiomof EMPOWER'U, INC. as of February 28, 2007 and 2006 and the changes in its net assets and cash flows for the years then ended in conformity with' generally accepted accounting principles. In accordance with Government Auditing Standards, i have also issued a report dated August 14, 2007 on my consideration of EMPOWER'U', INC.'s internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying ,schedule of expenditures of federalawards is presented for purposes of 4 additional analysis as required by US Office of Management and Budget Circular A-133, "Audits of States, locai Governments,.and Not -For -Profit Organizations," and. is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in my audit of the basic financial statements and, in my opinion is fairly stated in all material respects when considered in relation r to the basic financial statements taken as a whole. Cordially, f� S DART GL- SDEN, C.P.A. August 14. _007 z EMPOWER'U', INC. STATEMENT OF FINANCIAL POSITION FEBRUARY 28, 2007 AND 2006 TOTAL ASSETS 5563.383 $593.337 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Payroll Liabilities Unearned Income Total Current Liabilities NET ASSETS - Unrestricted TOTAL LIABILITIES AND NET ASSETS Please Read Accountant's Audit Report. 5 S 8,879 $ 10,696 13,098 ASSETS 381.602 442.354 403,579 2006 2007 CURRENT ASSETS S563.383 5593.337. Cash S 16,184 S 7,996 Notes Receivable 10,583 10,583 Deposits 0 1,287 Grants Receivable 536.127 573.471 Total Current Assets 562.894 593.337 PROPERTY Furniture, fixtures and equipment, net 489 0 TOTAL ASSETS 5563.383 $593.337 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Payroll Liabilities Unearned Income Total Current Liabilities NET ASSETS - Unrestricted TOTAL LIABILITIES AND NET ASSETS Please Read Accountant's Audit Report. 5 S 8,879 $ 10,696 13,098 14,113 381.602 442.354 403,579 467,163 159:804 126.174 S563.383 5593.337. EMPOWER'U', INC. STATEMENT OF ACTIVITIES FOR THE YEARS ENDED FEBRUARY 28, 2007 AND 2006 SUPPORT Ryan White Title 1 CDC HOPWA Other Grants Miscellaneous Donations Total Unrestricted Support EXPENSES Program Services: Ryan White Title I CDC HOPWA Other Total Program Services Fundraising: increase (Decrease) in Unrestricted Net Assets Net Assets at beginning of year Net Assets at end of year Please Read Accountant's Audit Report. �' 2006 2007 S 206;789 S244,631 444,170 399,424 251.138 330,232 106.173 177;012 791 919 33.946 4.459 1.043,007 1.156.677 215,733 243,797 418,326 419,817 254,276 325,893 133.330 200.800 1.021.665 1.190.307 7.693 0 13,649 ( 33,630) 146.155 159.804 S 159.804 S 126.174 f EMPOWER U, INC. STATEMENT OF CASH FLOWS FOR THE YEARS ENDED FEBRUARY -28,2007 AND 2006 Operating Activities Cash Inflows: Donations Grant Contracts Miscellaneous Total Cash Inflows Cash Outflows: Program Services Net Cash Inflow (Outflow) From Operating Activities Financing Activity Loans Receivable/Deposits Cash Inflow (Outflow) From All Activities Cash At March I Cash At February 28 2006 2007 S 33,946 S 4,459 956,950 1,174,707 791 919 991,687 1,180,085 1.017.610 1.186.986 ( 25,923) ( 6,901) 1.000 ( 1.287} ( 241923) ( 8,188) 41.107 16.184 S 16,184 $ 7,996 Reconciliation of increase ( decrease) in unrestricted net assets to net cash inflow (Outflow) for operating activities: Decrease in Unrestricted Net Assets ($33,629) Add: Depreciation 489 Increase in Payables 2,831 Increase in Receivables (38,631) Subtract: Increase in Unearned Income (60.752 Total 25.441 Net Cash Outflow from Operating Activities (S 8.188 Please Read Accountant's Audit Report. U EMPOWER'U', INC. NOTES TO THE FINANCIAL STATEMENTS FEBRUARY 28; 2007 1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities. EMPOWER'U', INC. is a Not -For -Profit organization which provides case management and referrals for people with AIDS. The organization was incorporated on November 24, 1997 and is operated in accordance with the taws and statutes of the State of Florida. Significant Accounting Policies. EMPOWER'U', INC. follows standards of accounting and financial reporting for voluntary health and welfare organizations as described in the American Institute of certified Public Accountants' "Industry Guide for Audits of Voluntary Health and Welfare Organizations". Accordingly, the financial statements are prepared on the accrual basis of accounting/ Financial Statement Presentation. The Organization reports information regarding its financial position and activities according to classes of net assets. In addition, a statement of cash flows is required. Support and Expenses. Contributions have been thus far received in cash and are reported as an increase in net assets. Expenses are recorded when'incurred in accordance with the accrual basis of accounting. Indirect administrative costs are allocated to the programs based upon employee labor hours. Income Taxes. EMPOWER'U', INC. has been ruled a tax exempt organization under Section 501(c)(3) by the Internal revenue. service, and accordingly,. no provision for income taxes has been made. Grants Receivable and Unearned Income. Grants 'Receivable isthe uncollected portion of grant contracts. Unearned Income is the portion of the grant contract which has not yet been earned or recognized as income. 2. GOVERNMENTAL FINANCIAL ASSISTANCE PROGRAMS Program assistance. was provided by the Title I HIV Emergency Relief Grant under the Ryan White Comprehensive AIDS Resource Emergency (C.A.R.E.) Act received from Miami -Dade County. Assistance was also provided by the Housing Opportunities for Persons With AIDS (HOPWA) Program created under the AIDS Housing Opportunity Act and administered by the City of Miami. Also providing assistance is the Centers For Disease Control and Prevention (CDC) EMPOWER 'U% INC. STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED FEBRUARY 28, 2007 Total.Functional Expenses $ 243.797 $419.817 $ 325.893 $200.800 $1.190307 Please Read accountant's Audit report. 1- Proeram Semices Rvan White CDC HOPWA Other Total Payroll $ 176,197 $229,157 $227,165 $107,370 $739,8.89 Payroll Related Costs 44,646 43,091 51,745 24;268 1631-750 Rent 61429 18,547 8,603 10,088 43,667 Advertising 0 100 0 1,831 1,931 Office Expenses 0 29,711 12,081 18,111 59,903 Communications 3,137 6,049 3,679 31179 16,044 Computes- Expense 0 226 45 180 451 Professional Fees 812 1,499 684 41709 7,704 Program 0 50,804 0 6,537 57;341 Equipment Rental 2;239 1,992 4,254 918 9,403 Equipment Purchase 0 576 0 1,300 1,870 Insurance 3,049 2,986 4,489 3,499 14,023 Repairs and.Maintenance 0 805 5,600 1,079 7,484 Supplies 2,345 16,655 2,428 12,594 34,022 Travel 1,154 16,094 3;997 2,894 24,139 Utilities 1789 1.531 1.123 2.243 8.686 Total.Functional Expenses $ 243.797 $419.817 $ 325.893 $200.800 $1.190307 Please Read accountant's Audit report. 1- EMPOWER `U', INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED FEBRUARY 2S, 2007 Federal Federal Program Title CFDA Exoenditures Ryan White Title I Minority AIDS Initiative (MAI) March 1, 2006 - February 28, 2007 93.915 $243,797 Centers For Disease Control And Prevention (Budget Period 7/1/2006 - 6/30/2007 93.939 $419,817 0 STUART GLADSDEN, C.P.A. 1 845 SW 14th Terrace Miami, FL 33145 REPORT ON COMPLIANCE.. WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVEROMPL[Ai`CE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Directors Empower'U', Inc. Compliance i have audited the compliance of Empower 'U', Inc. with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended February 28, 2007. The major federal programs are identified in the summary of auditor's result section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs istheresponsibility of Empower 'U', Inc.'s management: My responsibility is to express an opinion on the Organization's compliance based on my audit. i conducted my audit of compliance in accordance with generally accepted auditing standards, the standards applicable to_financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and OMB Circular A-133 Audits of States, local Governments and Non -Profit Organizations. Those standards and OMB Circular A-133 requite that i plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect, on a major federal program occurred. An audit includes examining, on a test basis, evidence'about the Organization's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. [ believe that my audit provides a reasonable basis for my opinion. My audit does not provide a legal determination of Empower 'U', Inc.'s compliance with those requirements. In my opinion, Empower 'U`, Inc. has complied, in all material respects, with the requirements referred to above that are applicable to its major federal programs for the year ended February 28, 2007. internal Control Over Compliance The management of Empower'U`, Inc. is responsible for establishing and maintaining. effective internal control over compliance with the requirements of laws, regulations; contracts and grants applicable to federal programs. In planning and performing my audit; 1 considered Empower 'U', Inc.'s internal control compliance with requirements that could have a direct and material effect on a major federal program in order.to determine my auditing procedures for the purpose of expressing my opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. My consideration ofthe internal control over compliance would not necessarily disclose all maters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 1 noted no matters involving the internal control over compliance and its operation that I consider to be material weaknesses. This report is intended solely for the information and use of.the audit committee, management, others within the organization, federal award ing.agencies and pass-through entities and is not intended to be and shouldozf be up anyon Cher than these specified parties. AR ADSDEN, C.P.A. August,14, 2007 STUART GLADSDEN, C.P.A. 1.895 SW 14th Terrace Miami, FL 33145 305-860-6974 F REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS Board of Directors Empower `U', Inc. Miami, FL I have audited the financial statements of Empower `U`, Inc. (a Not -For -Profit Organization) for the year ended February 28, 2007 and have issued my report thereon dated August 14, 200T i conducted my audit in accordance with.generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the. United States. Compliance As part of obtaining reasonable assurance about -whether Empower `U`, Ine.'s financial statements are free of material misstatement, 1 performed tests of its compliance with certain provisions of latus; regulations, contracts and grants, noncompliance with which could have a direct material effect on the determination of financial statement amounts However; providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly,, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reportintr In planning and performing my audit of the financial statements of the Company as of and for the year ended December 31, 2006 in accordance with auditing standards generally accepted in the United States, I considered the Company's internal control.over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company'sinternal control. Accordingly, I do not express an opinion on the effectiveness of the Company's internal control. My consideration of internal control tivas for the limited purpose described in the preceding paragraph and would not necessarily identify:all deficiencies in internal control that might be significant deficiencies or material weaknesses. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, processor report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. This report is intended solely for the information and use of the audit committee, management, others within the organization and the federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. MART GLODSDEN, C.P.A. August 14, ?,007 N SCHEDULE OF FINDINGS AND QUESTIONED COSTS OF EMPOWER'U', INC. FOR THE YEAR ENDED FEBRUARY 28; 2007 i 1. The auditor's report expresses an unqualified opinion on the financial statements. 2. No. reportable conditions were disclosed during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements were disclosed during the audit. 4. The auditor's report on compliance for the major federal awards program expresses an unqualified opinion on the major federal program. V 5. Audit findings relative to the major federal award program are reported in this schedule. ' 6. The programtested as a major program is Title I - HIV Emergency Relief Grant - Ryan White C.A.R.E. Act - 93.915 and Centers For Disease Control And Prevention - 93.939. 7. The threshold for distinguishing Type A and B programs is 5500,000. S. Empower'U`, Inc. was determined to be a low-risk auditee. Findings - Financial Statement Audit No reportable conditions. Findings and Questioned Costs - Major Federal Awards Program Audit 1. No findings or questioned costs EMPOWER'U', INC. FINANCIAL STATEMENITS FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 1of11 STUART GLADSDEN, C.P.A. 1895 SW 14TH TERRACE MIAMI, FL 33145 Tel, 305-860-6974 EMPOWER'U', INC. Miami, FL I have audited the accompanying balance sheet of EMPOWER'U', INC. (A Not -For -Profit Organization) as of February 29, 2008 and February 28, 2007, and the related statements of activities, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of EMPOWER 'U', INC.'s management. I conducted my audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditine Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the financial statements referred to above present fairly in all material respects the financial position of EMPOWER'U', INC. as of February 29, 2008 and February 28, 2007 and the changes in its net assets and cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I: have also issued a report dated June 24, 2008 on my consideration of EMPOWER'U', INC.'s internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as.required by US Office of Management and Budget Circular A-133, "Audits of States, local Governments, and Not -For -Profit Organizations," and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in my audit of the basic financial statements and, in my opinion is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. Cordially,, ' 0S f T GL SDEN, C.P.A. une 24, 2098 2of11 EMPOWER'U', INC. STATEMENT OF FINANCIAL POSITION FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 ASSETS Total Current Assets TOTAL ASSETS LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Payroll Liabilities Unearned Income Total Current Liabilities NET ASSETS - Unrestricted TOTAL LIABILITIES AND NET ASSETS Please Read Accountant's Audit Report. 3of11 726.678 593,337 $726.678 $593.337 $ 1,534 $ 10,696 3,993 14,113 541,099 442.354 546,626 467,163 180.052 126,174 $726,678 $593.337 2008 2007 CURRENT ASSETS Cash $ 12,794 $ 7,996 Notes Receivable 10,583 10,583 Deposits 3,018 1,287 Grants Receivable 700.283 573.471 Total Current Assets TOTAL ASSETS LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Payroll Liabilities Unearned Income Total Current Liabilities NET ASSETS - Unrestricted TOTAL LIABILITIES AND NET ASSETS Please Read Accountant's Audit Report. 3of11 726.678 593,337 $726.678 $593.337 $ 1,534 $ 10,696 3,993 14,113 541,099 442.354 546,626 467,163 180.052 126,174 $726,678 $593.337 EMPOWER'U', INC. STATEMENT OF ACTIVITIES FOR THE YEARS ENDED FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 Total Unrestricted Support 1,306,709 1,156,677 EXPENSES Program Services: Ryan White Title 1 2008 2007 SUPPORT 342,912 419,817 Ryan White Title I $ 257,976 S 244,631 CDC 437,256 399,424 HOPWA 370,017 330,232 Other Grants 223,016 177,012 Miscellaneous 4,211 919 Donations 14,233 4,459 Total Unrestricted Support 1,306,709 1,156,677 EXPENSES Program Services: Ryan White Title 1 282,186 243,797 CDC 342,912 419,817 HOPWA 377,048 325,893 Other 250,685 200,800 Total Program Services 1.252.831 1,190,307 Increase (Decrease) in Unrestricted Net Assets 53,878 ( 33,630) Net Assets at beginning ofyear 126,174 159,804 Net Assets at end of year S 180,052 $ 126,174 Please Read Accountant's Audit Report. 4of11 EMPOWER'U', INC. STATEMENT OF FUNCTIONAL EXPENSES FOR TETE YEAR ENDED FEBRUARY 29, 2008 Program Services Total Functional Expenses $ 282.186 $342.912 $ 377.048 $250.685 $1.252.831 Please Read accountant's Audit report. 5of11 Rvan White CDC HOPWA Other Total Payroll $ 198,615 $234,228 $274,490 $123,436 $830,769 Payroll Related Costs 43,028 44,336 58,855 28,186 174,405 Rent 16,017 7,406 14,417 16,001 53,841 Advertising 0 0 0 4,979 4,979 Office Expenses 1,383 3,647 3,580 28,478 37,088 Communications 4,706 6,566 4,030 3,481 18,783 Computer Expense 20 49 636 0 705 Professional Fees 0 3,000 0 13,787 16,787 Program 0 22,922 0 6,211 29,133 Equipment Rental 3;381 456 4,463 2,440 10,740 Equipment Purchase 0 2,205 735 1,310 4,250 Insurance 3,337 2,990 4,587 3,263 14,177 Repairs and Maintenance 553 413 887 683 2,536 Supplies 4,834 6,806 1,845 10,849 24,334 Travel 3,009 7,988 4,773 5,451 21,221 Utilities 3.303 (---LOO) 3.750 2.130 9,083 Total Functional Expenses $ 282.186 $342.912 $ 377.048 $250.685 $1.252.831 Please Read accountant's Audit report. 5of11 EMPOWER 'U% INC. NOTES TO THE FINANCIAL STATEMENTS FEBRUARY 29,2008 1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES Nature of Activities. EMPOWER 'U', INC. is a Not -For -Profit organization which provides case management and referrals for people with AIDS. The organization was incorporated on November 24, 1997 and is operated in accordance with the laws and statutes of the State of Florida. Significant Accounting Policies. EMPOWER 'U', INC. follows standards of accounting and financial reporting for voluntary health and welfare organizations as described in the American Institute of certified Public Accountants' "Industry Guide for Audits of Voluntary Health and Welfare Organizations". Accordingly, the fmancial statements are prepared on the accrual basis of accounting{ Financial Statement Presentation, The Organization reports information regarding its financial position and activities according to classes of net assets. In addition, a statement of cash flows is required. Support and Expenses. Contributions have been thus far received in cash and are reported as an increase in net assets. Expenses are recorded when incurred in accordance with the accrual basis of accounting. Indirect administrative costs are allocated to the programs based upon employee labor hours. Income Taxes. EMPOWER'U', INC. has been ruled a tax exempt organization under Section 501(c)(3) by the Internal revenue service, and accordingly, no provision for income taxes has been made. Grants Receivable and Unearned Income. Grants Receivable is the uncollected portion of grant contracts. Unearned Income is the portion of the grant contract which has not yet been earned or recognized as income. 2. GOVERNMENTAL FINANCIAL ASSISTANCE PROGRAMS Program assistance was provided by the Title I H V Emergency Relief Grant under the Ryan White Comprehensive AIDS Resource Emergency (C.A.R.E.) Act received from Miami -Dade County. Assistance was also provided by the Housing Opportunities for Persons With AIDS (HOPWA) Program created under the AIDS Housing Opportunity Act and administered by the City of Miami. Also providing assistance is the Centers For Disease Control and Prevention (CDC) 6of11 EMPOWER'U', INC. STATEMENT OF CASH FLOWS FOR THE YEARS ENDED FEBRUARY 29, 2008 AND FEBRUARY 28, 2007 Reconciliation of Increase ( Decrease) in Unrestricted Net Assets 2008 2007 Operating Activities Decrease in Unrestricted Net Assets $53,878 Cash Inflows: (128,543) Decrease in Accounts Payable Donations $ 14,233 $ 4,459 Grant Contracts 1,260,198 1,174,707 Miscellaneous 4.211 919 Total Cash Inflows 1,278,642 1,180,085 Cash Outflows: Program Services 1.272,113 1,186,986 Net Cash Inflow (Outflow) From Operating Activities 6,529 ( 6,901) Financing Activity Loans Receivable/Deposits ( 1.731 ( 1.287) Cash Inflow (Outflow) From All Activities 4,798 ( 8,188) Cash At March 1, 2007 7,996 16.184 Cash At February 29, 2008 $ 12.794 $ 7,996 Reconciliation of Increase ( Decrease) in Unrestricted Net Assets to net cash inflow (outflow) for operating activities: Decrease in Unrestricted Net Assets $53,878 Subtract Increase in Receivables (128,543) Decrease in Accounts Payable ( 9,162) Decrease in Payroll Payable ( 10,120) Add Increase in Unearned Income 98,745 Total 49.080 Net Cash Inflow from Operating Activities $ 4.798 Please Read Accountant's Audit Report. 7of11 EMPOWER `U', INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED FEBRUARY 29, 2008 Federal Federal Program Title CFDA Expenditures Ryan White Part A andMinority AIDS Initiative Part A March 1, 2007 - February 29, 2008 MAI Aug. 1, 2007 — July 31, 2008 93.915 $250,685 Centers For Disease Control And Prevention (Budget Period July 1, 2007 — June 30, 2008 and July 1, 2006 — June 30, 2007 93.939 $342,912 HOPWA (Budget period Oct. 1, 2006 — Sept. 30, 2007 And Oct. 1, 2007 — Sept. 30, 2008 - $377,048 8of11 STUART GLADSDEN, C.P.A. 1895 SW 14th Terrace Miami, FL 33145 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Directors Empower'U', Inc. Compliance I have audited the compliance of Empower 'U', Inc. with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended February 28, 2007. The major federal programs are identified in the summary of auditor's result section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Empower 'U', Int.'s management. My responsibility is to express an opinion on the Organization's compliance based on my audit. I conducted my audit of compliance in accordance with generally accepted auditing standards, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and OMB Circular A-133 Audits of States, local Governments and Non -Profit Organizations, Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organization's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion. My audit does not provide a legal determination of Empower'U', Inc.'s compliance with those requirements. In my opinion, Empower `U`, Inc. has complied, in all material respects, with the requirements referred to above that are applicable to its major federal programs for the year ended February 29, 2008. Internal Control Over Compliance The management of Empower'U', Inc. is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing my audit, I considered Empower'U', Inc.`s internal control compliance with requirements that could have a direct and material effect on a major federal program in order to determine my auditing procedures for the purpose of expressing my opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. My consideration of the internal control over compliance would not necessarily disclose all maters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I noted no matters involving the internal control over compliance and its operation that I consider to be material weaknesses. This report is intended solely for the information and use of the audit committee, management, others within tl}c organization, federal awarding. agencies and pass-through entities and is not intended to be and should,( t be use y one other than these specified parties. 4AG5DSD�NC.P.A. June 24, 2d( 8 9of11 STUART GLADSDEN, C.P.A. 1895 SW 14th Terrace Miami, FL 33145 305-860-6974 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS Board of Directors Empower `U', Inc. Miami, FL I have audited the financial statements of Empower `U`, Inc. (a Not -For -Profit Organization) for the year ended February 29, 2008 and have issued my report thereon dated June 24, 2008. I conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Empower `U`, Inc.'s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reoortin In planning and performing my audit of the financial statements of the Company as of and for the year ended February 29, 2008 in accordance with auditing standards generally accepted in the United States, I considered the Company's internal control over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, 1 do not express an opinion on the effectiveness of the Company's internal control. My consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of perfonning their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. This report is intended solely for the information and use of the audit committee, management, others within the organization and the federal awarding agencies and pass-through entities and is not intended to be and should not be sed by anyone other than these specified parties. S UART G DSDFN, C.P.A. June 24, 2-608 10 of 11 SCHEDULE OF FINDINGS AND QUESTIONED COSTS OF EMPOWER `U`, INC. FOR THE YEAR ENDED FEBRUARY 29,2008_ 1. The auditor's report expresses an unqualified opinion on the financial statements. 2. No reportable conditions were disclosed during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements were disclosed during the audit. d. The auditor's report on compliance for the major federal awards program expresses an unqualified opinion on the major federal program. 5. Audit findings relative to the major federal award program are reported in this schedule. 6. The program tested as a major program is Title 1 - HIV Emergency Relief Grant - Ryan White C.A.R.E. Act - 93.915, Centers For Disease Control And Prevention - 93.939 and HOPWA. 7. The threshold for distinguishing Type A and B programs is $500,000. 8. Empower `U`, Inc. was determined to be a low-risk auditee. Findings - Financial Statement Audit No reportable conditions. Findings and Questioned Costs - Major Federal Awards Program Audit 1. No findings or questioned costs. EMPOWER'U', INC. FINANCIAL STATEMENTS FEBRUARY 28, 2009 EMPOWER'U', INC. TABLE OF CONTENTS FEBRUARY 28, 2009 Auditor's Report 1. Statement of Financial Position 2. Statement of Activities 3. Statement of Cash Flows 4. Notes To Financial Statements 5. Supplemental Statement of Program Expenses 6. Supplemental Statement of Administrative Expenses 7. Schedule of Expenditures of Federal Awards 8. Notes To Schedule of Expenditures of Federal Awards 9. Report on Compliance and Internal Control Over Financial Reporting 10. Report on Compliance With Requirements To Each Major Program 11. Schedule of Findings and Questioned Costs 12. STUART GLADSDEN, C.P.A. 1895 SW 14TH TERRACE MIAMI, FL 33145 Tel. 305-860-6974 EMPOWER'U% INC. Miami, FL I have audited the accompanying balance sheet of EMPOWER'U', INC. (A Nat -For -Profit Organization) as of February 28, 2009 and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of EMPOWBR'U', INC.'s management. I conducted my audit in accordance with generally accepted auditing standards 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 I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion the financial statements referred to above present fairly in all material respects the financial position of EMPOWER 'U', INC. as of February 28, 2009 and the changes in its net assets and cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, I have also issued a report dated May 20, 2009 on my consideration of EMPOWER'U', INC.'s internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of my audit. My audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by US Office of Management and Budget Circular A-133, "Audits of States, local Governments, and Not -For -Profit Organizations," and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in my audit of the basic financial statements and, in my opinion is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. Cordiall 91tART GL SDEN, C.P.A. May 20, 20 EMPOWER'U', INC. STATEMENT OF FINANCIAL POSITION FEBRUARY 28, 2009 CURRENT ASSETS Cash Grants Receivable Total Current Assets Deposits TOTAL ASSETS CURRENT LIABILITIES Accounts Payable Payroll Liabilities Total Current Liabilities NET ASSETS Unrestricted Restricted Total Net Assets TOTAL LIABILITIES AND NET ASSETS Please Read Accountant's Audit Report. ASSETS $ 25,721 201,512 227,233 5,516 $232,749 LIABILITIES AND NET ASSETS $ 27,960 8,750 36,710 170,629 25,410 196.039 $232,749 EMPOWER'U', INC. STATEMENT OF ACTIVITIES FOR THE YEAR ENDED FEBRUARY 28, 2009 CHANGES IN UNRESTRICTED NET ASSETS: SUPPORT Funding Source: Ryan White Title I S 364,960 CDC 280,548 HOPWA 389,496 Other Grants 321,679 Miscellaneous 3,899 Donations 17,718 Total Unrestricted Support EXPENSES Administration 126,929 Program Services: Case Connection 18,187 Case Mgmt./Peer Support 291,757 Community Awareness 8,409 Housing 383,848 Outreach 136,566 Prevention 387,760 Other 34,267 Total Expenses Increase (Decrease) in Unrestricted Net Assets CHANGES IN TEMPORARILY RESTRICTED NET ASSETS: Other Grant Income Increase (Decrease) in Net Assets Net Assets at Beginning of Year Net Assets at End of Year Please Read Accountant's Audit Report. 1,378,300 1,387,723 ( 9,423) 25,410 15,987 180.052 $ 196.039 EMPOWER'U', INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED FEBRUARY 28, 2009 Operating Activities Cash Inflows: Donations Grant Contracts Miscellaneous Total Cash Inflows Cash Outflows: Admin. & Program Services Net Cash Inflow (Outflow) From Operating Activities Investing Activity Deposits Cash Inflow From All Activities Cash At March 1, 2008 Cash At February 28, 2009 Reconciliation of Increase (Decrease) in Net Assets To net cash inflow (outflow) for operating activities: i Increase in Net Assets Subtract Increase in Receivables Increase in Accounts Payable Increase in Payroll Payable Decrease in Notes Receivable Increase in Deposits Total Net Cash Inflow from Operating Activities Please Read Accountant's Audit Report. $ 17,718 1,339,765 3.899 (42,328) 26,426 4,757 10,583 2.498 1,361,382 1.345.957 15,425 ( 2.498) 12,927 12,794 $ 25,721 $15,987 3,060 $12.927 EMPOWER `U', INC. NOTES TO THE FINANCIAL STATEMENTS FEBRUARY 28, 2009 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization. EMPOWER'U', INC. is a Not -For -Profit organization which provides case management and referrals for people with AIDS. The organization was incorporated on November 24, 1997 and is operated in accordance with the laws and statutes of the State of Florida. Significant Accounting Policies. EMPOWER'U', INC. follows standards of accounting and financial reporting for voluntary health and welfare organizations as described in the American Institute of certified Public Accountants' "Industry Guide for Audits of Voluntary Health and Welfare Organizations". Accordingly, the financial statements are prepared on the accrual basis of accounting. Financial Statement Presentation. The Organization reports information regarding its financial position and activities according to classes of net assets. In addition, a statement of cash flows is required. The financial statements were prepared with the provisions of the Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not for -Prof t Organizations. As per the standard the financial position and activities of the organization are presented according to three classes of net assets as applicable. The classes are: Unrestricted, whereby resources have met all applicable restrictions, Temporarily Restricted, whereby resources have not met all applicable restrictions and Permanently Restricted, whereby resources are restricted by a permanent stipulation. Grant income that has been received prior to earning the award through the fulfillment of the contract terms is recorded as temporarily restricted. For this year only unrestricted and temporarily restricted applies. The temporarily restricted income for the year is $23,800 from Miami -Dade AATI and $1,610 from Miami -Dade DHS. The temporarily restricted net assets are Miami -Dade AATI $23,800 and Miami -Dade DHS $1,610. Support and Expenses. Contributions have been thus far received in cash and are reported as an increase in net assets. Expenses are recorded when incurred in accordance with the accrual basis of accounting. Indirect administrative costs are allocated to the programs based upon employee labor hours. Income Taxes. EMPOWER'U', INC. has been ruled a tax- exempt organization under Section 501(c)(3) by the Internal revenue service, and accordingly, no provision for income taxes has been made. Grants Receivable. Grants Receivable is the uncollected portion of grant contracts that has been earned. HOPWA $ 54,128 JACKSON HEALTH 12,727 MIAMI-DADE HEALTH DEPT 36,417 RYAN WHITE 90,324 UNITED WAY 7,916 Total $201.512 2. GOVERNMENTAL FINANCIAL ASSISTANCE PROGRAMS Program assistance was provided by the Title I HIV Emergency Relief Grant under the Ryan White Comprehensive AIDS Resource Emergency (C.A.R.E.) Act received from Miami -Dade County. Assistance was also provided by the Housing Opportunities for Persons With AIDS (HOPWA) Program created under the AIDS Housing Opportunity Act and administered by the City of Miami. Also providing assistance is the Centers For Disease Control and Prevention (CDC) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O fM 0 LD M O CA O M O ti Lf) T O .4 [t' �T 00 CD T IT' r O O O (D 00 00 O CO 0 m 00 '9T 'M LD 00 0) O CO NT N LO O CA 00 ';1- N O r Lo r Lf) CCD I-- CD O CoCb N I- M ) M- O i- 00 I- ti r N C+M N r N M N T O 1l r N 6{} r O N 613 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O Ni O Ln ; c6m O 66 O N6� ` CD T 1� N N O (D I� Vt X Q M 65. 0 O O O O O O O O O O O O O O O O C 000000000000000 O O qf cj It �- T- 0 U) 0 N0 0 0 M 0 T I` CD C O CA N 00 M f- O 1-- N CY) CO r- t` N ti � 000 M N O O N N M N T M N O O T M a 60 0o00000000000o0 O O o 0 o 0 0 0 0 0 0 0 0 0 0 0 0 C O M m O O O D M N O M O 0 N Il- O 0 U 00 0) O((DD�� M'd_M O N 0)r— r -LO O N CY) tl N CD W j O N M ZN O 691 r LU X Q C) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LL1 O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O rZ c- (O O O CO O r O C) CO N LO 1- LO 00 m c O N NT N N IT N r 'It 0 0 0 I' Q N N r- tD cr O T N (3) co T (D ";r 00 wLLL. 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CL Lu W s w cn l- Z) O t- C/) U) Z N W CL CC) X N W 1- Z ly Lj OQ Z�w of PHw wco Z Lu ooZ aQW wLL 0 O W zw w= � O U) O O O O O O O O O O O O O O O O O O O O O O o O O O O O O O O O O O O O C M N CO r M Il- O I- N O [Y r- N r r M N M O N m mr� I t!7 Oct CO Ltd CO r N t` r- N N CO M I- CA N M �t rl r M CO N O CO y C r- r r C Q 69,� �w Q U O C to N co N O L O O C NC C rn y O N O LL N 7 to C M N O O a O L2 U C co x W E -1 U E N N o. 0.ro'`'� m.To p Q E � ° m aa�=v CU ° H M CO CD co O aawm0Uaa.ww a• a- (n (D a : CO a=U) gym c O F-- EMPOWER `U', INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED FEBRUARY 28, 2009 Federal Federal Program Title CFDA Expenditures Ryan White Part A and Minority AIDS Initiative Part A March 1, 2008 - February 28, 2009 MAI Aug. 1, 2008 — July 31, 2009 93.915 $ 333,739 Centers For Disease Control And Prevention {Budget Period July 1, 2008 — June 30, 2009 and July 1, 2007 — June 30, 2008 93.939 $ 320,115 HOPWA (Budget period Oct. 1, 2007 — Sept. 30, 2008 And Oct. 1, 2008 — Sept. 30, 2009 - $ 401,873 r EMPOWER `U', INC. NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FEBRUARY 28, 2009 1. SIGNIFICANT ACCOUNTING POLICIES The schedule of expenditures of Federal awards is presented by funding source and includes Ryan White Part A, CDC and HOPWA. Although the program fiscal year may be different than the company fiscal reporting year the expenses are those incurred in the company fiscal period using the accrual basis of accounting and matching principle of accounting. STUART GLADSDEN, C.F.A. 1895 SW 14th Terrace Miami, FL 33145 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Board of Directors Empower'U', Inc. Compliance I have audited the compliance of Empower'U', Inc. with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended February 28, 2009. The major federal programs are identified in the summary of auditor's result section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Empower 'U', Inc.'s management. My responsibility is to express an opinion on the Organization's compliance based on my audit. I conducted my audit of compliance in accordance with generally accepted auditing standards, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and OMB Circular A-133 Audits of States, local Governments and Non -Profit Organizations. Those standards and OMB Circular A-133 require that I plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Organization's compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion. My audit does not provide a legal determination of Empower 'U', Inc.'s compliance with those requirements. In my opinion, Empower 'U', Inc. has complied, in all material respects, with the requirements referred to above that are applicable to its major federal programs for the year ended February 28, 2009. Internal Control Over Compliance The management of Empower'U', Inc. is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing my audit, I considered Empower'U', Inc.'s internal control compliance with requirements that could have a direct and material effect on a major federal program in order to determine my auditing procedures for the purpose of expressing my opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. My consideration of the internal control over compliance would not necessarily disclose all maters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. I noted no matters involving the internal control over compliance and its operation that I consider to be material weaknesses. This report is intended solely for the information and use of the audit committee, management, others within the organization, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. *RT SDEN, C.P.A. May 20, 2 9 STUART GLADSDEN, C.P.A. 1895 SW 14th Terrace Miami, FL 33145 305-860-6974 REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS Board of Directors Empower `U', Inc. Miami, FL I have audited the financial statements of Empower `U`, Inc. (a Not -For -Profit Organization) for the year ended February28, 2009 and have issued my report thereon dated May 20, 2009. I conducted my audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Empower `U', Inc.'s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Renortin In planning and performing my audit of the financial statements of the Company as of and for the year ended February 28, 2009 in accordance with auditing standards generally accepted in the United States, I considered the Company's internal control over financial reporting as a basis for designing my auditing procedures for the purpose of expressing my opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, I do not express an opinion on the effectiveness of the Company's internal control. My consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. For the year ended February 28, 2009 I did not identify any significant deficiencies or material weaknesses. This report is intended solely for the information and use of the audit committee, management, others within the organization and the federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specifi parties. UART G DSDE , C. .A. May 20,209 SCHEDULE OF FINDINGS AND QUESTIONED COSTS OF EMPOWER 'U', INC. FOR THE YEAR ENDED FEBRUARY 28, 2009 1. The auditor's report expresses an unqualified opinion on the financial statements. 2. No reportable conditions were disclosed during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements were disclosed during the audit. 4. The auditor's report on compliance for the major federal awards program expresses an unqualified opinion on the major federal program. 5. Audit findings relative to the major federal award program are reported in this schedule. 6. The program tested as a major program is Title 1 - HIV Emergency Relief Grant - Ryan White C.A.R.E. Act - 93.915, Centers For Disease Control And Prevention - 93.939 and HOPWA. 7. The threshold for distinguishing Type A and B programs is $500,000. 8. Empower'U', Inc. was determined to be a low-risk auditee. Findings -Prior Year Financial Statement Audit No prior year audit findings were reported. Findings - Financial Statement Audit No reportable conditions. Findings and Questioned Costs - Major Federal Awards Program Audit 1. No findings or questioned costs.