alzheimer’s association financial …€™s association southeastern wisconsin chapter statement...

ALZHEIMER’S ASSOCIATIONSOUTHEASTERN WISCONSIN CHAPTER

FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2015

(With Summarized Totals for the Year Ended June 30, 2014)

RitzHolman CPAs


TABLE OF CONTENTS

Independent Auditor’s Report .....................................................................................................

Statement of Financial Position ..................................................................................................

Statement of Activities ................................................................................................................

Statement of Cash Flows ............................................................................................................

Notes to the Financial Statements ..............................................................................................

Schedule of Functional Expenses ..............................................................................................

Wisconsin Department of Health Services - Settlement of DHS CostReimbursement Award .................................................................................................

Schedule of Expenditures of Federal and State Awards ...........................................................

Note to the Schedule of Expenditures of Federal and State Awards ........................................

Report on Internal Control Qver Financial Reporting and on Compliance and Other MattersBased on an Audit of Financial Statements Performed in Accordance WithGovernment Auditing Standards and the State Single Audit Guidelines .....................

Schedule of Findings and Questioned Costs .............................................................................

Schedule of Revenue and Functional Expenses - State Annual Conference ...........................

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RitzHolma CPAs

Independent Auditor’s Report

Board of DirectorsAlzheimer’s AssociationSoutheastern Wisconsin Chapter

Report on the Financial Statements

We have audited the accompanying financial statements of Alzheimer’s Association SoutheasternWisconsin Chapter which comprise the statement of financial position as of June 30, 2015, and therelated statements of activities and cash flows for the year then ended, and the related notes to thefinancial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includesthe design, implementation, and maintenance of internal control relevant to the preparation and fairrepresentation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to theOrganization’s preparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion onthe effectiveness of the Organization’s internal control. Accordingly, we express no such opinion. Anaudit also includes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of Alzheimer’s Association Southeastern Wisconsin Chapter as of June 30, 2015, andthe changes in its net assets and its cash flows for the year then ended in accordance with accountingprinciples generally accepted in the United States of America.

Ritz Holman LLPServing businesses, nonprofits, individuals and trusts.

Two Plaza East, Suite 550330 East Kilbourn AvenueMilwaukee, W153202

t. 4!4.271.1451f. 414.271.7464ritzholman.com

Member o~ the American Institute of Certified Public Accountants, Wisconsin Ins titute of Certified Public Accountants

Board of DirectorsAlzheimer’s Association Southeastern Wisconsin Chapter

Report on Summarized Comparative Information

We have previously audited Alzheimer’s Association Southeastern Wisconsin Chapter’s 2014 financialstatements, and we expressed an unmodified audit opinion on those audited financial statements in ourreport dated September 29, 2014. In our opinion, the summarized comparative information presentedherein as of and for the year ended June 30, 2014 is consistent, in all material respects, with the auditedfinancial statements from which it has been derived.

Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.The schedules of functional expenses, Wisconsin Department of Health Services - settlement of DHScost reimbursement award and revenue and functional expenses - state annual conference are presentedfor purposes of additional analysis and are not a required part of the basic financial statements. Theaccompanying schedule of expenditures of federal and state awards is presented for purposes ofadditional analysis in accordance with the State Single Audit Guidelines and is also not a required part ofthe basic financial statements. Such information is the responsibility of management and was derivedfrom and relates directly to the underlying accounting and other records used to prepare the basicfinancial statements. The information has been subjected to the auditing procedures applied in the auditof the basic financial statements and certain additional procedures, including comparing and reconcilingsuch information directly to the underlying accounting and other records used to prepare the basicfinancial statements or to the basic financial statements themselves, and other additional procedures inaccordance 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 basic financial statements as awhole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards and the State Single Audit Guidelines, we have alsoissued our report dated October 12, 2015, on our consideration of Alzheimer’s Association SoutheasternWisconsin Chapter’s internal control over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts, and grant agreements and other matters. The purposeof that report is to describe the scope of our testing of internal control over financial reporting andcompliance and the results of that testing, and not to provide an opinion on the internal control overfinancial reporting or on compliance. That report is an integral part of an audit performed in accordancewith Government Auditing Standards and the State Single Audit Guidelines in considering Alzheimer’sAssociation Southeastern Wisconsin Chapter’s internal control over financial reporting and compliance.

RITZ HOLMAN LLPCertified Public Accountants

Milwaukee, WisconsinOctober !2, 2015

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ALZHEIMER’S ASSOCIATIONSOUTHEASTERN WISCONSIN CHAPTERSTATEMENT OF FINANCIAL POSITION

JUNE 30, 2015(With Summarized Totals for June 30, 2014)

CURRENT ASSETSCash and Cash EquivalentsAccounts ReceivableNet Grants and Pledges ReceivableInventoryPrepaid Expenses

Total Current Assets

FIXED ASSETSEquipmentFurniture and FixturesLeasehold Improvements

Total Fixed AssetsLess: Accumulated Depreciation

Net Fixed Assets

OTHER ASSETSInvestments

Total Other Assets

TOTAL ASSETS

ASSETS2015

$ 755,231 $130,553302,139

9,26233,527

$ 1,230,712 $

$ 55,92541,641

200,923$ 298,489

(207,630)$ 90,859

$ 1,017,895$ 1,017,895

$ 2,339,466

2014

427,104148,537207,583

5,08426,609

814,917

$ 53,60341,641

200,924$ 296,168

(183,785)$ 112,383

$ 887,950$ 887,950

$ 1,815,250

LIABILITIES AND NET ASSETSCURRENT LIABILITIES

Accounts Payable $ 34,632Accrued Payroll 108,629State Conference Liability 49,088Deferred Revenue 625,494Due to National 184,401

Total Liabilities $ 1,002,244

NET ASSETSUnrestricted:Undesignated $ 37,642Board Designated:Stabilization Reserve Fund 350,000Endowment Fund 500,000

Total Unrestricted Net Assets $ 887,642Temporarily Restricted 449,580

Total Net Assets $ 1,337,222

TOTAL LIABILITIES AND NET ASSETS $ 2,339,466

$ 45,69284,61651,839

270,980118,051

$ 571,178

$ 124,038

250,000500,000

$ 874,038370,034

$ 1,244,072

1,815,250

The accompanying notes are an integral part of these financial statements.

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STATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2015


REVENUEIndividual ContributionsCorporate ContributionsFoundation and Corporate GrantsFoundation ContributionsUnited Way Grants and ContributorsWorkplace GivingCommunity Health CharitiesGovernment GrantsThird Party EventsProgram Service FeesProduct SalesSpecial Events - RevenueSpecial Events - ExpensesOther RevenueShared Fund-Raising to National (Net)Interest and DividendsIn-Kind DonationsNet Assets Released From Restrictions

Total Revenue

TemporarilyUnrestricted Restricted

EXPENSESProgram ServicesManagement and GeneralFund-Raising

Total Expenses

CHANGE IN NET ASSETS BEFOREINVESTMENT REALIZED/UNREALIZED GAIN $

Realized/Unrealized Gain

CHANGE IN NET ASSETS AFTERINVESTMENT REALIZED/UNREALIZED GAIN $

Net Assets, Beginning of Year

NET ASSETS, END OF YEAR

$ 278,333 $ 149,352 $44,240 ---76,642 6,963

153,264 ---51,619 ---21,147 ---64,236 ---

131,796 ---44,736 1,181

196,870 ---3,385 ---

1,669,601 25,026(89,983) ---

9,441 ---(559,088) ---

21,078 ---4,220 ---

102,976 (102,976)$ 2,224,513 $ 79,546 $

1,677,510 $ --- $302,337 ---249,822 ---

2,229,669 $ --- $

(5,156)

18,760

$ 79,546 $

13,604 $ 79,546 $

874,038 370,034

887,642 $ 449,580 $

2015Total

427 68544,24083605

15326451.6192114764236

13179645917

196,8703,385

1,694,627(89,983)

9,441(559,088)

21,0784,220

2,304,059

1,677,510302,337249,822

2,229,669

74,390

18,760

93,150

1,244,072

1,337,222

2014Total

412,81858,672

113,147171,35758,1342O,45521,367

194,47672,391

201,8322,952

1,204,892(82,439)

8,802(403,139)

19,197

$ 2,074,914

$

$

1,598,545286,047176,932

2,061,524

13,390

86,097

99,487

1,144,585

1,244,072


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STATEMENT OF CASH FLOWSFOR THE YEAR ENDED JUNE 30, 2015


CASH FLOWS FROM OPERATING ACTIVITIESChange in Net AssetsAdjustments to Reconcile Change in Net Assets to

Net Cash Provided by Operating ActivitiesNet Realized/Unrealized GainDepreciation(Increase) Decrease(Increase) Decrease(Increase) Decrease(Increase) DecreaseIncrease (Decrease)Increase (Decrease)Increase (Decrease)Increase (Decrease)Increase (Decrease)Increase (Decrease)

in Accounts Receivablein Net Grants and Pledges Receivablein Inventoryin Prepaid Expensesin Accounts Payablein Accrued Payrollin State Conference Liabilityin Refundable Advancein Deferred Revenuein Other Accrued Liabilities

Net Cash Provided by Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Fixed AssetsPurchase of InvestmentsProceeds From Investments

Net Cash Used by Investing Activities

Net Increase in Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS AT END OF YEAR

2015 2014

$ 93,150 $ 99,487

(18,760)23,84417,984

(94,556)(4,178)(6,918)

(11,060)24,013(2,751)

354,51466,350

$ 441,632

(86,097)29,38159,773

103,719121

3,55424,81610,189(2,144)

(24,409)162,170

(128,346)

$ 252,214

S (2,322) $ ---(120,576) (10,440)

9,393 ---

$ (113,505) $ (10,440)

$ 328,127 $ 241,774

427,104 185,330

$ 755,231 $ 427,104


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NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2015

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NOTES TO THE FINANCIAL STATEMENTSJUNE 30, 2015

NOTE A - Summary of Significant Accounting Policies

ChapterAlzheimer’s Association Southeastern Wisconsin Chapter is operated exclusively forcharitable and educational or scientific purposes as a not-for-profit organization exempt fromfederal income taxes under Section 501(c)(3) of the Internal Revenue Code, and isconsidered to be other than a private foundation. The Chapter’s legal name is Alzheimer’sDisease and Related Disorders Association of Southeastern Wisconsin, Inc. The Chapter ismore commonly referred to by the name in the first sentence; therefore the name has beenused in the financial statements. The mission of the Chapter is to eliminate Alzheimer’sdisease through the advancement of research, to provide and enhance care and support forall affected and to reduce the risk of dementia through the promotion of brain health.

Accounting MethodThe financial statements of the Chapter have been prepared on the accrual basis ofaccounting.

Cash and Cash EquivalentsFor purposes of the statement of cash flows, cash and cash equivalents include all highlyliquid debt instruments with original maturities of three months or less.

Fixed AssetsFixed Assets are recorded at cost. Depreciation is provided over the estimated useful livesof the assets determined by the Chapter using the straight-line method. The Chaptercapitalizes all fixed assets greater than $1,000.

Accounts ReceivableAccounts Receivable are stated at unpaid balances, less an allowance for doubtful accounts.The Chapter provides for losses on accounts receivable using the allowance method. Theallowance is based on experience, third-party contracts, and other circumstances, which mayaffect the ability of customers to meet their obligations. Receivables are considered impairedif full principal payments are not received in accordance with the contractual terms.

Basis of PresentationThe Chapter reports information regarding its financial position and activities according tothree classes of net assets: unrestricted net assets, temporarily restricted net assets, andpermanently restricted net assets. Assets of the restricted classes are created only bydonor-imposed restrictions.

At June 30, 2015, the Chapter’s net assets were restricted and board designated as follows:

Temporarily purpose-restricted:Temporarily time- and purpose-restricted:Board Designated:

$330,228$119,352$85O,OOO

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NOTE A -

NOTE B -

Summary of Significant Accounting Policies (continued)

ContributionsAll contributions are considered available for the Chapter’s general programs unlessspecifically restricted by the donor. Amounts received that are designated for future periodsor restricted by the donor are reported as temporarily or permanently restricted support andincrease the respective class of net assets. Contributions received with temporaryrestrictions that are met in the same reporting period are reported as unrestricted supportand increase unrestricted net assets. When a restriction expires, temporarily restricted netassets are reclassified to unrestricted net assets and reported in the Statement of Activitiesas net assets released from restrictions. Investment income that is limited to specific usesby donor restrictions is reported as increases in unrestricted net assets if the restrictions aremet in the same reporting period as the income is recognized.

EstimatesThe preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at the dateof the financial statements and the reported amounts of revenues and expenses during thereporting period. Actual results could differ from those estimates.

ReclassificationCertain amounts in the prior-year financial statements have been reclassified forcomparative purposes to conform to the presentation in the current-year financialstatements.

Comparative Financial InformationThe financial information shown for 2014 in the accompanying financial statements isincluded to provide a basis for comparison with 2015 and presents summarized totals only.The comparative information is summarized by total only, not by net asset class. Suchinformation does not include sufficient detail to constitute a presentation in conformity togenerally accepted accounting principles. Accordingly, such information should be read inconjunction with the Chapter’s financial statements for the year ended June 30, 2014 fromwhich the summarized information was derived.

For comparability, certain 2014 amounts have been reclassified to conform withclassifications adopted in 2015. The reclassifications have no effect on reported amounts ofnet assets or changes in net assets.

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NOTE C -

NOTE D -

Accounts Receivable

Accounts Receivable consist of the following as of June 30, 2015:

Source Amount

Alzheimer’s Association - NationalSpecial Event ContributionsState ConferenceOther Miscellaneous Receivables

86,06039,4234,380

690

Total $130~553

Net Grants and Pledges Receivable

Net Grants and Pledges Receivable consist of the following as of June 30, 2015:

Source Amount

Special Events and Planned Gifts $ 54,8972015 Walk to End Alzheimer’s Sponsorship 14,800Foundation Grants 26,250Milwaukee County Department on Aging 15,675State of Wisconsin Department of Health Services 6,284Challenge Match 30,625Community Health Charities 58,739Operation Stronger Together 100,000Less: Allowance for Uncollectible Accounts (3,148)Less: Present Value Discount (1,983)

Total $302.. 139

Grants and Pledges are expected to be collected as follows:

During the Year Ending June 30, Amount

Overdue $ 26,2152016 195,4552017 71,3OO2018 14,300

Total $307,270Less: Allowance for Uncollectible Accounts (3,148)Less: Present Value Discount (1,983)

Net Grants and Pledges Receivable $302.139

The pledges have been discounted by 3.25%, the prime rate at June 30, 2015.

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NOTE E -

NOTE F -

Inventory

Inventory consists of books and walk merchandise held for resale. The inventory is stated atmarket value. As of June 30, 2015 the value of the books and walk merchandise was$9,262.

Investments

Investment IncomeNet appreciation in the fair value of investments, which consists of the realized gains andlosses and the unrealized appreciation on those investments, is shown in the Statement ofActivities.

Investment income consists of the following at June 30, 2015:

Interest and DividendsRealized/Unrealized Gain

$21,07818,760

Total $39,838

Fair Value ReportingThe Chapter has adopted the Financial Accounting Standards Board guidance on fair valuemeasurements. A three-tier hierarchy is used to maximize the use of observable marketdata inputs and minimize the use of unobservable inputs and to establish classification of fairvalue measurements for disclosure purposes. Financial assets valued using level 1 inputsare based on unadjusted quoted market prices within active markets. Financial assetsvalued using level 2 inputs are based primarily on quoted prices for similar assets in active orinactive markets. Financial assets valued using level 3 inputs are based primarily onvaluation models with significant unobservable pricing inputs and which result in the use ofmanagement estimates.

The following table sets forth by level, within the fair value hierarchy, the Chapter’s assets atfair value as of June 30, 2015:

Investment Cateqory Fair Value

$ 515,377472,518

$ 987,89530,000

Quoted PricesIn Active Significant

Markets for Other SignificantIdentical Observable UnobservableAssets Inputs Inputs

(Level 1) (Level 2) (Level 3)

Mutual Funds:Fixed incomeEquity

Total Mutual FundsSeries HH Bonds

$515,377 $ ---472,518 ---

$987,895 $ ------ 30,000

$

$

Total $1,017,895 $987,895 $ 30,000 $ ---

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NOTE G -

NOTE H -

NOTEI-

Retirement Plans

The Chapter sponsors a voluntary employee salary reduction plan, a 403(b) tax deferredannuity plan which it made available to all employees at the beginning of the year. TheChapter made no contributions to the 403(b) account during the year ended June 30, 2015.

The Chapter sponsors a SEP plan for which all employees are eligible at the beginning of theyear if they have earned $500 in the previous year. The Chapter contributes 2% of theannual compensation of its employees. The Chapter made contributions of $22,920 as ofJune 30, 2015.

Operating Leases

The Chapter leases office space in West Allis, Wisconsin. The lease agreement extendsthrough November 30, 2020. The Chapter pays a monthly base rent which is adjusted on anannual basis. Common area maintenance charges are also billed to the Chapter on amonthly basis.

Future minimum payments are as follows:

For the Year Ending June 30, Amount

2016 $ 44,7902017 45,3462018 47,1332019 49,0072020 50,986Therea~er 21,593

Total $258,855

Board Designated Net Assets

Board designated net assets consist of the Stabilization Reserve Fund and the EndowmentFund totaling $850,000 as of June 30, 2015.

The Stabilization Reserve Fund has been designated by the Board of Directors to provide asource of funding for the following principal purposes:

¯ Stabilization of program services and operations in the event of a temporaryinterruption in cash flow;

¯ Unfunded and/or unexpected Chapter needs; and¯ New or expanded service initiatives

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NOTE I -

NOTE J -

NOTE K -

NOTE L -

Board Designated Net Assets (continued)

The Board Designated Endowment Fund was established by the Board of Directors to helpprovide for the long-term financial stability of the Chapter in fulfilling its overall mission. Theearnings from the Fund’s investments may be used to help fund current programs andoperating expenses. Ongoing funding of the Board Designated Endowment Fund comesprimarily from unrestricted planned gifts.

Temporarily Restricted Net Assets

Temporarily Restricted Net Assets consist of the following as of June 30, 2015:

ContributionsFoundations and Grants

$402,20447,376

Total Temporarily Restricted Net Assets $449,580

Related Party Transactions

The Chapter is an affiliate of the National Alzheimer’s Association (National). As ofJuly 1, 2008, the Chapter began participating in a shared fund-raising arrangement withNational. The Chapter and National collaborate on fund-raising in the Chapter’s territory. Allunrestricted contributions received by either party in the Chapter’s territory are shared.Donor restricted contributions to the Chapter’s programs and services are not subject to theshared fund-raising allocation. The Chapter’s share allocation is 60%. The amount of fund-raising dollars shared with National is reflected on the statement of activities as "SharedFund-Raising to National" for a total of $559,088.

Distributions - State Annual Conference

Under a Memorandum of Understanding (MOU) with the Alzheimer’s Association GreaterWisconsin Chapter, the Chapter is the fiscal agent for the annual Alzheimer’s AssociationWisconsin Network Conference on Alzheimer’s Disease and Related Dementias (StateConference). The Chapter shares duties as host of the State Conference, managesConference finances and shares Conference revenues with the Greater Wisconsin chapterand the South Central Wisconsin national service area.

Under terms of the MOU, revenues that exceed a pre-determined reserve amount aredistributed by the fiscal agent to itself and the two organizations on a formula basis thatreflects the percentages of persons with Alzheimer’s and related dementias that reside ineach organization’s geographic region. The current distributions are 41.8% to the GreaterWisconsin chapter, 42.1% to the Southeastern Wisconsin chapter and 16.1% to the SouthCentral Wisconsin national service area.

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NOTE M -

NOTE N -

NOTE O -

Future Liabilities

The Chapter has contracts extending into 2016 with various hotels related to annualmeetings. The value of these contracts at June 30, 2015 was $35,242.

Income Taxes

The Chapter is exempt from income tax under Section 501(c)(3) of the Internal RevenueCode and is classified as other than a private foundation. Management has reviewed all taxpositions recognized in previously filed tax returns and those expected to be taken in futuretax returns~ As of June 30, 2015, the Chapter had no amounts related to unrecognizedincome tax benefits and no amounts related to accrued interest and penalties. The Chapterdoes not anticipate any significant changes to unrecognized income tax benefits over thenext year.

Subsequent Events

The Chapter has evaluated events and transactions occurring after June 30, 2015 throughOctober 12, 2015, the date the financial statements are available to be issued, for possibleadjustments to the financial statements or disclosures. The Chapter has determined that nosubsequent events need to be disclosed.

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ALZHEIMER’S ASSOCIATIONSOUTHEASTERN WISCONSIN CHAPTERSCHEDULE OF FUNCTIONAL EXPENSES

FOR THE YEAR ENDED JUNE 30, 2015(With Summarized Totals for the Year Ended June 30, 2014)

Salaries and WagesRetirementEmployee BenefitsPayroll TaxesOther Employee ExpensesProfessional Fees and

Contract ServicesSuppliesTelephonePostagePrinting, Publications and NewsletterOccupancy, Utilities and InsuranceRespite ExpensesEquipment Rental and MaintenanceDepreciationComputer ExpensesTravelConferences and MeetingsSafe Return ScholarshipsCost of Goods SoldDistributions - State ConferenceAffiliate PaymentMiscellaneous Expense and

Bank FeesTotals

ManagementProgram andServices General Fund-Raising

$ 990,655 $ 154,756 $ 131,10217,821 2,877 2,222

120,965 20,691 17,50877,503 11,923 9,936

--- 3,361 ---

2015 2014Total Total

$ 1,276,513 $ 1,116,36922,920 20,837

159,164 155,05399,362 89,222

3,361 3,142

75,239 16,491 11,337 103,067 125,24316,300 9,533 4,920 30,753 33,6418,838 4,252 1,671 14,761 12,480

11,167 2,000 3,500 16,667 17,25888,215 2,162 17,298 107,675 76,02353,937 30,871 18,523 103,331 102,891

...... 88 88 26,71216,968 10,640 1,150 28,758 27,01312,399 6,676 4,769 23,844 29,381

--- 2,611 --- 2,611 5,60955,175 8,947 10,439 74,561 68,860

100,601 8,514 8,514 117,629 116,326291 ...... 291 500136 --- 708 844 2,073

12,809 ...... 12,809 18,62517,500 ...... 17,500 ---

991 6,032 6,137$ 1,677,510 $ 302,337 $ 249,822

13,160 14,266$ 2,229,669 $ 2,061,524

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COUNSELING AND COMMUNITY SUPPORT MULTICUTURAL OUTREACH AND SERVICESSETTLEMENT OF DHS COST REIMBURSEMENT AWARD


DHS Identification NumberAward AmountAward PeriodPeriod of Award Within Audit Period

A. EXPENDITURES REPORTED TO DHS FOR PAYMENTMilwaukee County Department on Aging

B. ACTUAL ALLOWABLE COST OF AWARDProgram Expenses

7. Salaries and Wages11. Fees for Services

Total program expensesTotal allowable costs

381 381$ 80,000 $ 50,0001/1/14-12/31/14 1/1/15-121311157/1/14-12/31/14 1/1/15-6/30/15

$ 35,179 $ 44,710

$ 18,405 $ 29,71016,775 15,000

$ 35,180 $ 44,710$ 35,180 $ 44,710

Total

$ 79,889

$ 48,11531,775

$ 79,89O$ 79,890

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SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDSFOR THE YEAR ENDED JUNE 30, 2015

Federal or State Grantor/Pass-Through Grantor/Program or Cluster Title

STATE EXPENDITURES

Milwaukee County - Department on AgingCounseling and Community Support Services

TOTAL STATE EXPENDITURES

Federal Pass-ThroughCFDA Entity

or CARS IdentifyingNumber Number

381

Expenditures

$ 79,889

$ 79,889

The accompanying note is an integral part of this schedule.

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NOTE TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDSFOR THE YEAR ENDED JUNE 30, 2015

NOTE 1 - Basis of Presentation

The accompanying schedule of expenditures of federal and state awards includes thefederal and state grant activity of Alzheimer’s Association Southeastern Wisconsin Chapterand is presented on the accrual basis of accounting. The information in this schedule ispresented in accordance with the State Single Audit Guidelines. Therefore, some amountspresented in these schedules may differ from amounts presented in, or used in thepreparation of, the basic financial statements.

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RitzHolman CPAs

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit of Financial Statements Performed

in Accordance With Government Auditing Standards and the State Sinqle Audit Guidelines

Independent Auditor’s Report

To the Board of DirectorsAlzheimer’s Association Southeastern Wisconsin Chapter

We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsand the State Single Audit Guidelines issued by the Comptroller General of the United States, and inaccordance with the State Single Audit Guidelines, the financial statements of Alzheimer’s AssociationSoutheastern Wisconsin Chapter, which comprise the balance sheet as of June 30, 2015, and the relatedstatements of activities and cash flows for the year then ended and the related notes to the financialstatements, and have issued our report thereon dated October 12,2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Alzheimer’s AssociationSoutheastern Wisconsin Chapter’s internal control over financial reporting (internal control) to determinethe audit procedures that are appropriate in the circumstances for the purpose of expressing our opinionon the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofAlzheimer’s Association Southeastern Wisconsin Chapter’s internal control. Accordingly, we do notexpress an opinion on the effectiveness of Alzheimer’s Association Southeastern Wisconsin Chapter’sinternal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent, ordetect and correct, misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that a materialmisstatement 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 internalcontrol, that is less severe than a material weakness, yet important enough to merit attention by thosecharged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be materialweaknesses or significant deficiencies. Given these limitations, during our audit we did not identify anydeficiencies in internal control that we consider to be material weaknesses. However, materialweaknesses may exist that have not been identified.

Ritz Holman LLPServing businesses, nonprofits, individuals and trusts.

Two Plaza East, Suite 550330 East Kilbourn AvenueMilwaukee, W153202

t, 414.271,1451f. 414,271.7464ritzholman.com

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Member of the American Institute of Certified Public Accountants, Wisconsin Institute of Certified Public Accountants

Alzheimer’s Association Southeastern Wisconsin ChapterPage Two

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Alzheimer’s Association SoutheasternWisconsin Chapter’s financial statements are free from material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliancewith which could have a direct and material effect on the determination of financial statement amounts.However, providing an opinion on compliance with those provisions was not an objective of our audit, andaccordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance or other matters that are required to be reported under Government Auditing Standards orin accordance with the State Single Audit Guidelines.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and complianceand the results of that testing, and not to provide an opinion on the effectiveness of the Organization’sinternal control or on compliance. This report is an integral part of an audit performed in accordance withGovernment Auditing Standards and in accordance with the State Single Audit Guidelines in consideringthe Organization’s internal control and compliance. Accordingly, this communication is not suitable forany other purpose.

RITZ HOLMAN LLPCertified Public Accountants

Milwaukee, WisconsinOctober 12, 2015

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ALZHEIMER’S ASSOCIATION SOUTHEASTERN WISCONSIN CHAPTERSCHEDULE OF FINDINGS AND RESPONSES


A. SUMMARY OF AUDITOR’S RESULTS

Financial Statements

1. Type of auditor’s report issued:

2. Internal control over financial reporting:

a. Material weakness(es) identified?

b. Significant deficiencies identified?

3. Noncompliance material to financial statementsnoted?

B. FINANCIAL STATEMENT FINDINGS

No matters were reported.

Co STATE AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

D. OTHERISSUES

1. Does the auditor have substantial doubt asto the auditee’s ability to continue as a goingconcern?

Does the audit report show audit issues(i.e., material noncompliance, non-materialnoncompliance, questioned costs, materialweakness, significant deficiency, managementletter comment, excess revenue or excessreserve) related to grants/contracts with fundingagencies that require audits to be in accordancewith applicable State Single Audit Guidelines?

Department of Children and FamiliesDepartment of Health ServicesDepartment of Workforce DevelopmentDepartment of Corrections

Unmodified

No

None RepoSed

No

No

N/ANoN/AN/A

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ALZHEIMER’S ASSOCIATION SOUTHEASTERN WISCONSIN CHAPTERSCHEDULE OF FINDINGS AND QUESTIONED COSTS


D. OTHER ISSUES (continued)

3. Was a Management Letter or other documentconveying audit comments issued as a result ofthis audit?

4. Name and signature of partner

5. Date of report

Yes

KATY L. S~MMER

October 12, 2015

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SCHEDULE OF REVENUE AND FUNCTIONAL EXPENSES - STATE ANNUAL CONFERENCEFOR THE YEAR ENDED JUNE 30, 2015


2015 2014REVENUE

Registration $ 106,785 $ 117,285Exhibitor Fees 10,000 11,400Sponsorship 32,250 28,850Product Sales 2,061 ---Miscellaneous Revenue 37 3

Total Revenue $ 151,133 $ 157,538

EXPENSESContracted ServicesSuppliesTelephonePostagePrinting, Publications and NewsletterTravelConferences and MeetingsBank FeesMiscellaneous

Total Expenses

NET REVENUE OVER EXPENSES BEFORE DISTRIBUTIONS

$ 21,027 $ 18,75144O 182480 374

4,896 4,60320,424 18,347

304 58274,705 75,489

1,434 1,661300 380

$ 124,010 $ 120,369

$ 27,123 $ 37,169

$ 9,247 $ 13,4463,562 5,179

$ 12,809 $ 18,625

$ 14,314 $ 18,544

DISTRIBUTIONSGreater Wisconsin ChapterSouth Central WisconsinTotal Distributions

NET REVENUE OVER EXPENSES AFTER DISTRIBUTIONS

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alzheimer’s association financial …€™s association southeastern wisconsin chapter statement...

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