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Olympic Community Action Programs
Consolidated Financial Statements
For the Year Ended December 31, 2022
With Comparative Totals for 2021
TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT .............................................................................................................. 1
CONSOLIDATED FINANCIAL STATEMENTS:
Statement of Financial Position .......................................................................................................... 4
Statement of Activities and Changes in Net Assets ............................................................................ 5
Statement of Functional Expenses ...................................................................................................... 6
Statement of Cash Flows .................................................................................................................... 7
Notes to Financial Statements ............................................................................................................ 8
SUPPLEMENTAL INFORMATION
Consolidating Statement of Financial Position ................................................................................... 22
Consolidating Statement of Activities and Changes in net Assets ..................................................... 23
Consolidating Statement of Functional Expenses ............................................................................... 24
ADDITIONAL REPORTS AND SCHEDULES
Schedule of Expenditures of Federal Awards ..................................................................................... 25
Notes to Schedule of Expenditures of Federal Awards ...................................................................... 29
Schedule of Expenditures of State Awards ......................................................................................... 30
Summary Schedule of Prior Audit Findings ....................................................................................... 32
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards ......................................................................... 33
Independent Auditor’s Report on Compliance for Each Major Federal Program and
And on Internal Control Over Compliance Required by the Uniform Guidance…………………... . 35
Schedule of Findings and Questioned Costs ....................................................................................... 38
1
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
Olympic Community Action Programs
Port Townsend, WA
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying consolidated financial statements of Olympic Community Action
Programs (the Organization), which comprise the consolidated statement of financial position as of
December 31, 2022, and the related consolidated statements of activities and changes in net assets,
functional expenses and cash flows for the year then ended, and the related consolidated notes to the
financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of the Organization, as of December 31, 2022, and changes in net assets and its cash
flows for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the Organization and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Organization’s
ability to continue as a going concern for one year after the date that the consolidated financial statements
are issued
2
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the consolidated financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Organization’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
consolidated financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Organization’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control–related matters
that we identified during the audit.
Report on Summarized Comparative Information
We have previously audited the Organization’s 2021 consolidated financial statements, and we expressed
an unmodified audit opinion on those audited consolidated financial statements in our report dated May 25,
2022. In our opinion, the summarized comparative information presented herein as of and for the year ended
December 31, 2021, is consistent, in all material respects, with the audited consolidated financial statements
from which it has been derived.
3
Other Information
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as
a whole. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code
of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part
of the consolidated financial statements. The supplementary information on pages 22 to 24 and page 30 are
presented for purposes of additional analysis and are not a required part of the consolidated financial
statements. Such information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the consolidated financial statements. The
information has been subjected to the auditing procedures applied in the audit of the consolidated financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the consolidated financial statements
or to the consolidated financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the information is
fairly stated, in all material respects, in relation to the consolidated financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 19, 2023
on our consideration of the Organization’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Organization’s internal control over financial
reporting and compliance.
Aiken & Sanders, Inc., PS
Certified Public Accountants
& Management Consultants
April 19, 2023
December 31, 2022 (With Comparative Totals for 2021)2022 2021
Current Assets
Cash and Cash Equivalents $2,457,443 $1,400,521 Accounts Receivable 21,197 24,070
Grants Receivable 1,395,913 1,194,016
Inventory - 5,315 Prepaid Expenses & Other Assets 23,808 16,846
Total Current Assets 3,898,361 2,640,768
Property & Equipment
Property & Equipment, Net 15,316,965 8,668,388
Other Assets
Contributed Land & Facilities Use Receivable 106,666 123,226
Right of Use Asset 1,254,081 -
Administration & Monitoring Fee 226,064 226,064
Investments 246,132 296,691
Total Other Assets 1,832,943 645,981
Total Assets $ 21,048,269 $ 11,955,137
Current Liabilities
Cash Overdraft $ 1,076 $ -
Accounts Payable 815,527 1,345,118
Accrued Expenses 619,006 539,157
Other Liabilities 95,286 94,440
Deferred Revenue 2,931 191,366
Current Portion of Long-Term Debt 22,812 58,504
Current Portion of Operation Lease Liability 285,843 -
Total Current Liabilities 1,842,481 2,228,585
Long Term Liabilities
Notes Payable, Net of Current Portion 12,080,067 5,362,172 Less Loan Fees, Net (65,213) (72,193)
Operation Lease Liability, Net of Current Portion 968,238 -
Total Long Term Liabilities 12,983,092 5,289,979
Net Assets
Without Donor Restrictions 3,548,043 1,480,323
With Donor Restrictions 2,674,653 2,956,250
Total Net Assets 6,222,696 4,436,573
Total Liabilities and Net Assets $21,048,269 $11,955,137
The accompanying notes are an integral part of these financial statements.
Olympic Community Action Programs
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
4
LIABILITIES AND NET ASSETS
Year Ended December 31, 2022 (With Comparative Totals for 2021)2022 2021
WITHOUT WITH
DONOR DONOR
RESTRICTIONS RESTRICTIONS TOTAL TOTAL
Support & Revenue
Grants $13,408,608 $- $13,408,608 $10,937,757
Contributions 1,435,399 - 1,435,399 1,172,964
Inkind Contributions 682,386 - 682,386 932,868 Rental Income 317,075 - 317,075 335,588
Fee Revenue 12,040 - 12,040 45,804
Other Income 51,947 - 51,947 4,480
Gain on Sale of Assets 150,436 - 150,436 - Investment Income (Loss)4,330 (15,870) (11,540) 10,280
Net Assets Released From Restrictions 265,727 (265,727) - -
Total Support & Revenue 16,327,948 (281,597) 16,046,351 13,439,741
Expenses
Program Services:
Long-Term Care 191,889 - 191,889 700,746
Early Childhood 3,018,661 - 3,018,661 2,723,986 Housing 5,706,459 - 5,706,459 3,988,515
Community Support 4,098,868 - 4,098,868 4,230,940
13,015,877 - 13,015,877 11,644,187
Management & General Expenses 1,244,351 - 1,244,351 1,222,246 Total Expenses 14,260,228 - 14,260,228 12,866,433
Change in Net Assets 2,067,720 (281,597) 1,786,123 573,308
NET ASSETS, BEGINNING OF YEAR 1,480,323 2,956,250 4,436,573 3,863,265
NET ASSETS, END OF YEAR $ 3,548,043 $ 2,674,653 $ 6,222,696 $ 4,436,573
The accompanying notes are an integral part of these financial statements.
Olympic Community Action Programs
CONSOLIDATED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
5
Year Ended December 31, 2022 (With Comparative Totals for 2021) 2022 2021Total ManagementLong-Term EarlyCommunityProgram andCare Childhood HousingSupport Services General Total TotalSalaries & Wages $ 138,264 $ 1,423,834 $ 1,127,584 $ 719,337 $ 3,409,019 $ 449,684 $ 3,858,703 $ 3,993,439 Payroll Taxes 16,249 157,011 152,075 94,442 419,777 45,399 465,176 499,857 Fringe Benefits 30,091 395,554 273,396 204,728 903,769 104,390 1,008,159 1,037,181 Total Payroll Costs 184,604 1,976,399 1,553,055 1,018,507 4,732,565 599,473 5,332,038 5,530,477 General & Operating CostsDirect Payments & Costs 2,032 536,120 3,347,740 1,933,946 5,819,838 84,597 5,904,435 4,463,235 Inkind Expenses - 105,793 5,000 593,468 704,261 - 704,261 936,538 Occupancy - 205,479 487,739 187,366 880,584 198,638 1,079,222 750,207 Supplies - 44,154 35,407 67,358 146,919 56,850 203,769 249,295 Travel & Transportation 1,206 24,373 8,988 62,225 96,792 11,927 108,719 91,527 Communications 688 52,887 27,112 42,386 123,073 58,690 181,763 132,409 Interest Expense - - - - - 68,771 68,771 82,546 Professional Services 900 18,623 54,505 29,854 103,882 75,618 179,500 143,673 Staff & Volunteer Develop. 1,345 51,156 6,671 11,654 70,826 21,823 92,649 80,510 Insurance 995 14,455 31,907 22,097 69,454 31,958 101,412 88,199 Minor Equipment- (58,470) 5,009 84,885 31,424 (64,430) (33,006) 36,217 Printing & Publications 119 4,715 2,679 2,039 9,552 2,470 12,022 15,116 Miscellaneous - 84 (36,216) 683 (35,449) 63,459 28,010 14,004 Equipment Lease & Maint. - 42 42,071 1,329 43,442 5,199 48,641 21,359 Business Taxes & Licenses - - 40 654 694 197 891 1,492 Total General & Operating Costs 7,285 999,411 4,018,652 3,039,944 8,065,292 615,767 8,681,059 7,106,327 Depreciation Expense - 42,851 134,752 40,417 218,020 29,111 247,131 229,629 Total Expenses$ 191,889 $ 3,018,661 $ 5,706,459 $ 4,098,868 $ 13,015,877 $ 1,244,351 $ 14,260,228 $ 12,866,433 The accompanying notes are an integral part of these financial statements.Olympic Community Action ProgramsCONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES 6
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended December 31, 2022 (With Comparative Totals for 2021) 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets $ 1,786,123 $ 573,308
Adjustments to Reconcile Change in Net Assets
to Net Cash Provided (Used) by Operating Activities:
Depreciation 247,131 229,629
Amortization of Loan Fees 6,980 -
Inkind Contributed Use of Facilities 16,560 10,671
Gain on Sale of Assets (150,436) -
Investment Loss (Income) 11,540 (10,280)
Change in Assets and Liabilities
Accounts & Grants Receivable & Other Receivables (199,024) 1,379
Inventory 5,315 -
Prepaid Expenses & Other Assets (6,962) (5,531)
Cash Overdraft 1,076 -
Accounts Payable & Accrued Expenses (449,742) 774,636
Deferred Revenue (188,435) 129,958
Other Liabilities 846 5,828
Total Adjustments and Charges (705,151) 1,136,290
Net Cash Provided (Used) by Operating Activities 1,080,972 1,709,598
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale of Investments 40,000 50,209
Proceeds from Sale of Assets 5,779 -
Purchase of Investments (981) (115,295)
Purchase of Administration and Monitoring Fee - (226,064)
Purchases of Property & Equipment (8,395,825) (3,502,792)
Net Cash Used by Investing Activities (8,351,027) (3,793,942)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Loan Fees - (65,273)
Proceeds from Long-Term Debt 8,347,719 2,902,468
Repayment of Long-Term Debt (20,742) (214,156)
Net Cash Provided (Used) by Financing Activities 8,326,977 2,623,039
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,056,922 538,695
BEGINNING CASH AND CASH EQUIVALENTS 1,400,521 861,826
ENDING CASH AND CASH EQUIVALENTS $ 2,457,443 $ 1,400,521
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:
Cash Paid During the Fiscal Years for Interest $ 68,771 $ 82,546
NONCASH TRANSACTIONS:
Loans Paid Off With Sale of Property $ 1,639,459 $ -
The accompanying notes are an integral part of these financial statements.
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Olympic Community Action Programs
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
8
NOTE 1: NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
General:
Olympic Community Action Programs (Olycap) is a nonprofit Washington Corporation, which serves as a
Community Action Agency in conformity with the Economic Opportunity Act of 1964, and the Community
Services Act of 1974. Olympic Community Action Programs’ principal operation is the administration of
government and community funded programs directed towards economic betterment of low-income, elderly,
minority, and disadvantaged community members of Clallam and Jefferson Counties.
South Seven Senior Village (the Village) was incorporated in the State of Washington on June 13, 2003, as a
nonprofit corporation and owns and operates the Village located in Port Hadlock. The Village began operations in
April 2006 and provides low-income housing to the elderly. Olympic Community Action Programs has a majority
voting interest in South Seven Senior Village and all interagency accounts and transactions have been eliminated
in the consolidation.
During 2020, the 7th Hendricks GP LLC (the LLC) was formed in the State of Washington. Olycap owns 100%
of the LLC and is a disregarded entity for tax purposes. The purpose of the LLC is to develop and operate real
property to serve low income households. There will be 43 housing units. Approximate cost of construction is
$14.3 million. Management expects the LLC will be completed in 2023. All interagency accounts and
transactions have been eliminated in the consolidation.
The summary of significant accounting policies of Olympic Community Action Programs and its affiliate, South
Seven Senior Village and 7th Hendricks GP LLC, collectively the Organization, is presented to assist in
understanding the Organization’s financial statements. The consolidated financial statements and notes are
representations of the Organization’s management who is responsible for their integrity and objectivity. These
accounting policies conform to accounting principles generally accepted in the United States of America and have
been consistently applied in the presentation of the consolidated financial statements.
Basis of accounting:
The Organization maintains its financial records on the accrual basis of accounting. Revenues on all grants are
recognized (accrued) when qualifying expenditures under the grant are made. Grant funds are accounted for as
with donor restrictions or without donor restrictions as provided in the particular terms of the respective grant
contracts. However, if the restrictions on grant funds are met in the same year the funds are awarded, it is the
Organization’s policy to report the grant funds as without donor restrictions on the statement of activities and
changes in net assets.
Basis of presentation:
Net assets, revenues, expenses, gains, and losses are classified based on the existence or absence of donor-
imposed restrictions. Accordingly, the net assets of the Organization and changes therein are classified and
reported as follows:
Without Donor Restriction Net Assets — Net assets that are not subject to donor-imposed stipulations.
With Donor Restriction Net Assets — Net assets subject to donor imposed restrictions that may or will be
met whether by actions of the Organization and/or the passage of time. (Note 7)
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
9
NOTE 1: NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Comparative Totals:
The financial information includes certain prior-year summarized comparative information in total but not by net
asset class. Such information does not include sufficient detail to constitute a presentation in conformity with
accounting principles generally accepted in the United States of America. Accordingly, such information should
be read in conjunction with the Organization’s consolidated financial statements for the year ended December 31,
2021, from which the summarized information was derived.
Liquidity and Availability:
The Organization has $3,852,280 of financial assets available within one year of the statement of financial
position date to meet cash needs for general expenditure, consisting of cash of $2,456,367 and receivables of
$1,395,913 as of December 31, 2022. The Organization has $2,618,607 of financial assets available within one
year of the statement of financial position date to meet cash needs for general expenditure, consisting of cash of
$1,400,521 and receivables of $1,219,465 as of December 31, 2021. Of the financial assets, there was $876,268
and $1,095,411 that is restricted for certain programs. See note 7. The rest of the financial assets are not subject
to donor or other contractual restrictions that make them unavailable for general expenditures within one year of
the statement of financial position date. The Organization has ongoing grants and contracts that will reimburse
the Organization allowable expenditures for that grant or contract. The Organization has a policy to structure its
financial assets to be available as its general expenditures, liabilities, and other obligations come due.
The Organization also has investments of $246,132 and $296,691, as of December 31, 2022 and 2021,
respectively, that the Organization can draw on to help pay for expenditures. See note 4.
Allocation of Indirect Costs:
The financial statements report certain categories of expenses that are attributable to one or more programs or
supporting functions of the Organization. Payroll and related costs are allocated based on time spent on each
function. Other expenses have been allocated among program and supporting service classifications on the basis
of estimates made by the Organization’s management based on the benefits derived. The Organization allocates
expenses to the following programs:
Long-Term Care - The goal of the Long-Term Care programs is to provide services that enable elderly
and disabled individuals to continue to live in their homes if they so choose and to prevent premature
placement in a more institutionalized setting such as a nursing home.
Early Childhood - The goal of the Early Childhood programs is to provide opportunities for the healthy
growth and development of children, parent education, and family support services for families of
children enrolled in the program.
Housing - The goal of the Housing program is to provide a continuum of housing opportunities and to
maintain affordable and safe housing.
Community Support - The goal of the Community Support program is to provide a broad range of
services and support programs to address food and nutrition, health care, dental services and emergency
needs of low-income residents and to support the local communities through the operation of community
centers and provisions of volunteer resources.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
10
NOTE 1: NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use of estimates:
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America (GAAP) requires management to make estimates and assumptions. These affect the reported
amounts of assets, liabilities, revenues, and expenses, as well as the disclosure of contingent assets and liabilities.
Actual results could differ from these estimates.
Cash and cash equivalents:
The Organization considers all highly liquid instruments purchased with an original maturity of three months or
less to be cash equivalents.
Accounts receivable:
Trade accounts receivable are stated at the amount management expects to collect from outstanding balances.
Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation
allowance based on its assessment of the current status of individual accounts. Balances still outstanding after
management has used reasonable collection efforts are written off through a charge to the valuation allowance and
a credit to trade accounts receivable. Management determined valuation allowance of approximately $7,746 at
December 31, 2022 and 2021, respectively. Accounts are considered past due if not collected within 90 days.
The Organization does not charge interest on past due accounts. As of December 31, 2022, all accounts
receivable are current. Bad debts incurred during the years ended December 31, 2022 and 2021, were $0 and
$4,114, respectively.
Promises to give:
Unconditional promises to give that are expected to be collected within one year are recorded at net realizable
value. Unconditional promises to give that are expected to be received in future years are recorded at the present
value of their estimated future cash flows. Conditional promises to give are not included as support until any
conditions are substantially met. All promises to give are due within one year.
Leases:
The Organization recognizes and measures its leases in accordance with FASB ASC 842, leases. The
Organization is a lessee in several noncancellable operating leases, for office space and office equipment. The
Organization determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the
terms of an existing contract are changed. The Organization recognizes a lease liability and a right of use (ROU)
asset at the commencement date of the lease. The lease liability is initially and subsequently recognized based on
the present value of its future lease payments. The discount rate is the implicit rate if it is readily determinable or
otherwise the Organization uses the U.S. Treasury Bill risk free rate with a term equivalent to the lease term. The
implicit rate of the leases were not readily determinable and accordingly, the Organization used the U.S. Treasury
Bill risk free rate based on the information available at the commencement date for the Organization lease. The
ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability
(i.e., present value of the remaining lease payments). Lease cost for lease payments is recognized on a straight-
line basis over the lease term.
The Organization has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities
for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an
option to purchase the underlying asset that the Organization is reasonable certain to exercise. We recognize lease
cost associated with the short-term leases on a straight-line basis over the lease term.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
11
NOTE 1: NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments:
The Organization records investment purchases at cost, or if donated, at fair value on the date of
donation. Thereafter, investments are reported at their fair values in the statements of financial position.
Net investment income/(loss) is reported in the statement of activities and consists of interest and
dividend income, realized and unrealized capital gains and losses, less external and direct internal
investment expenses.
Property and equipment:
Property and equipment are recorded at cost or, if acquired as a donation, at the estimated fair value at the date
donated. Depreciation is computed utilizing the straight-line method and the following estimated useful lives:
Buildings 5-50 years
Equipment and furnishings 5 years
Vehicles 5 years
Leasehold improvements shorter of remaining useful life, or lease term
The Organization capitalizes new assets and expenditures that extend the productive life of an asset costing over
$5,000. Maintenance and repairs are charged to expense as incurred; major renewals and improvements are
capitalized. When items of equipment are sold or are otherwise disposed of, the appropriate cost and related
accumulated depreciation amounts are removed from the accounts, and any gain or loss is included in income.
Deferred revenue:
Deferred revenue is recognized for program (grant) advances received by The Organization that are in excess of
current grant expenditures. Such amounts are restricted funds and as such can only be maintained and used in
accordance with the respective grant contracts.
Recognizing Revenue from Contracts with Customers:
The Financial Accounting Standards Board guidance requires an entity to recognize revenue to depict the transfer
of goods or services to customers in an amount that reflects the consideration to which an entity expects to be
entitled in exchange for those goods or services. The Organization follows these principles.
Upon receipt of an advance from grants and contracts from their funding sources, the Organization recognizes
deferred revenue in the amount of the advance for its performance obligation to perform services in the future. At
December 31, 2022 and 2021, the Organization has recorded deferred revenue of $2,931 and $191,366,
respectively, which the Organization expects to recognize as revenue in the following year, when it performs
those services and, therefore, satisfies its performance obligation to the funding sources.
The balances of receivables and deferred revenue from grants and contracts are as follows as of December 31,
2022 and 2021:
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
12
NOTE 1: NATURE OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued)
2022 2021
Accounts Receivable $ 21,197 $ 3,431
Grants Receivable $1,395,913 $1,194,016
Deferred Revenue $ 2,931 $ 191,366
Recognition of contribution revenue:
The Organization reports gifts of cash and other assets as restricted support if they are received with donor
stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated
time restriction ends or purpose restriction is accomplished, with donor restriction net assets are reclassified to
without donor restriction net assets and are reported in the statement of activities and changes in net assets as net
assets released from restrictions.
The Organization reports gifts of land, buildings, and equipment as unrestricted support unless explicit donor
stipulations specify how the assets are to be used. Gifts of cash or other assets that must be used to acquire long-
lived assets are reported as with donor restrictions support. Absent explicit donor stipulations about how those
long-lived assets must be maintained, The Organization reports expirations of donor restrictions when the donated
or acquired long-lived assets are placed in service.
If the restrictions on restricted contributions are met in the same year the gift is received, it is The Organization’s
policy to report the contribution as without donor restrictions on the statement of activities and changes in net
assets.
Indirect Expenses:
Management and general expenses are allocated to programs based on a negotiated provisional federal indirect
cost rate agreement. Any necessary adjustments based on the final approved rate are recorded in the year the
adjustments become known. No such adjustments were realized in the years ended December 31, 2022 and 2021.
Advertising Costs:
The costs of advertising are expensed as incurred.
NOTE 2: CONTRIBUTED LAND AND FACILITIES USE RECEIVABLES
In May 2002, the Organization received a use of land contribution from the Community United Methodist Church
in the form of a seventy-five year lease at $1 a year for the use of the land on which the Village was developed.
Development began on the Village in 2004 and was completed in 2005. The value of the contribution, through
the terms of the agreement, is recorded at the estimated present value and shown as a receivable and with donor
restrictions net asset. The discount rate used to calculate the present value at December 31, 2022 and 2021, was
4%.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
13
NOTE 3: PROPERTY AND EQUIPMENT
Property and equipment consist of the following at December 31, 2022:
Buildings and improvements $ 5,861,248
Furniture and equipment 669,502
Vehicles 397,495
6,928,245
Less: accumulated deprecation (3,500,389)
3,427,856
Construction in progress 11,481,245
Land 407,864
Net Property and Equipment $ 15,316,965
Accumulated depreciation as of December 31, 2021, was $3,663,596.
NOTE 4: INVESTMENTS AND FAIR VALUE MEASUREMENTS
During 2016, the Organization received donations that were deposited into the Seattle Foundation. The donations
and investment income is donor restricted for senior services for 10 years. The Organization also has an
investment account with Edward Jones for people to donate investments to the Organization. This investment
account will be used for the LLC. The fair market value for the years ended December 31, 2022 and 2021 was
$246,132 and $296,691, respectively. Investment income for 2022 was the following:
Dividends, Realized & Unrealized Gains (Losses) $ (9,832)
Fees (1,708)
Total Investment Income (Loss) $ (11,540)
Investment income for 2021 was $10,280.
Fair Value Measurements provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to
measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3
measurements). The three levels of the fair value hierarchy are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in
active markets that the Organization has the ability to access.
Level 2: Inputs to valuation methodology include:
A. Quoted prices for similar assets or liabilities in active markets.
B. Quoted prices for identical or similar assets or liabilities in inactive markets.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
14
NOTE 4: INVESTMENTS AND FAIR VALUE MEASUREMENTS (Continued)
C. Inputs other than quoted prices that are observable for the asset or liability.
D. Inputs that are principally from or corroborated by observable market data by correlation or other
means.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been
no changes in the methodologies used at December 31, 2022.
Seattle Foundation: The fair value of the Organization’s interest in the fund is based on a percentage interest in
the funds fair value as represented by the fund’s management.
Money Market: The investments are reported at fair value based on quoted prices in active markets for identical
assets.
Common Stock: Valued at stock price per shares held by the Organization at year end.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable
value or reflective of future fair values. Furthermore, although the Organization believes its valuation methods are
appropriate and consistent with other market participants, the use of different methodologies or assumptions to
determine the fair value of certain financial instruments could result in a different fair value measurement at the
reporting date.
The following table sets forth by level, within the fair value hierarchy, the Organization’s assets at fair value as of
December 31, 2022 with comparative totals for 2021:
2021
Level 1 Level 2 Level 3 Total Total
Seattle Foundation $ - $ 94,650 $ - $ 94,650 $ 150,521
Money Market 142,815 - - 142,815 140,546
Common Stock 8,667 - - 8,667 5,624
$ 151,482 $ 94,650 $ - $ 246,132 $ 296,691
Assets at Fair Value as of December 31, 2022
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
15
NOTE 5: IN-KIND CONTRIBUTIONS
A substantial number of unpaid volunteers have made significant contributions of their time in furtherance of the
Organization's programs. The value of this contributed time is not included in the accompanying consolidated
financial statements as it does not meet the criteria for contributed services in accordance with GAAP.
Management has estimated the fair value of these services at $250,257 and $261,191 for the years ended
December 31, 2022 and 2021, respectively. Inkind revenue and expenses was the following:
Professional Fees $ 97,253
Food 504,928
Transportation 39,480
Rent 62,283
Change in Inventory (5,405)
Change in Contributed Land Use (16,153)
Inkind Revenue 682,386
Change in Inventory 5,405
Change in Present Value of Rent 317
Change in Contributed Land Use 16,153
Inkind Expenses $ 704,261
Inkind revenue and expenses as of December 31, 2021, was $932,868 and $936,538, respectively.
NOTE 6: NOTES PAYABLE & DEBT ISSUANCE COSTS
Long-term debt at December 31, 2022, is as follows:
Mortgage payable to Washington Department of Commerce, due
June 2045, interest at 0%, annual payments of $19,328,
secured by Northwest Passage land and building. This loan was
funded with Federal HOME program funds and is subject to a
covenant that if the property is sold, refinanced, or not used as
required by contract, the lender is entitled to the unpaid principal
balance, and prorated appreciated value of property
as defined in the contract.$496,841
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
16
NOTE 6: NOTES PAYABLE & DEBT ISSUANCE COSTS (Continued)
Rehabilitation loan payable to Washington Department of Commerce,
due June 2045, interest at 0%, annual payments of $1,531,
secured by Northwest Passage land and building. This loan
was funded with Federal HOME program funds and is subject to the
same loan covenant as the mortgage payable to Washington
Department of Commerce. 27,891
Rehabilitation loan payable to Washington Department of Commerce,
due June 2046, interest at 1%, annual payments of $11,073 including
interest, secured by Pfeiffer land and apartments. This loan is
subject to the same loan covenant as the mortgage payable to
Washington Department of Commerce. No payments are required
currently.314,888
Term loan payable to City of Port Angeles, due March 27, 2011,
interest free loan for one year from execution of loan, at which
time interest shall accrue at the rate of 3% per annum on the
unpaid balance. The loan has been extended to April 1, 2025. 13,073
In October 2021, the Organization obtained a loan from Department of
Commerce for $11,250,186. As of December 31, 2022, the
Organization has drawn $11,250,186. The loan and interest is due
December 31, 2062. The interest rate is 1%. If the property is sold,
refinanced, or not used as required by contract, the lender is entitled
to the unpaid principal balance, and prorated appreciated value of
of property. The loan is secured by the property. 11,250,186
Total 12,102,879
Less current portion (22,812)
Total Long-Term Debt $12,080,067
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
17
NOTE 6: NOTES PAYABLE & DEBT ISSUANCE COSTS (Continued)
Future minimum payments regarding loans payable are as follows:
Years Ending December 31
2023 $ 22,812
2024 22,906
2025 23,003
2026 23,102
2027 19,688
Thereafter 11,991,368
Total $12,102,879
Total long-term debt as of December 31, 2021, was $5,420,676.
Debt Issuance Costs
The Organization classifies debt issuance costs as a reduction to underlying loan obligations and recognizes
interest expense on these costs over the life of the underlying loans. The Organization recognized $6,980 and $0
in interest expense for these costs in the years ended December 31, 2022 and 2021, respectively. Composition of
debt issuance costs is the following:
Debt Issuance Costs $ 65,213
Less: Interest Recognized -
Net Debt Issuance Costs $ 65,213
NOTE 7: WITH DONOR RESTRICTION NET ASSETS
With donor restriction net assets consisted of the following at December 31, 2022:
Haines Street Cottages $ 356,151
South Seven Senior Housing 1,240,917
Contributed Land Use (Note 2) 106,666
Senior Services (Note 4) 94,651
Program Services 876,268
With Donor Restriction Net Assets $ 2,674,653
With donor restriction net assets as of December 31, 2021, were $2,956,250.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
18
NOTE 7: WITH DONOR RESTRICTION NET ASSETS (Continued)
Haines Street Cottages – The Organization was awarded a State of Washington Department of Commerce grant
in 1996 totaling $567,426 to be used for the acquisition and renovation of low-income apartments in Port
Townsend. Acquisition and renovation costs of $470,461 were capitalized during 1996, and renovation costs
capitalized during the year ended December 31, 1997 totaled $109,200, for a final cost of $579,661. The grant
includes covenants that limit the use of the project to households at or below 50% of the Jefferson County median
income for a period of 50 years. If the property is sold, refinanced, or its use changes prior to the end of the 50
year grant period, the grant plus shared appreciation shall be due and payable within 30 days. Haines Street
Cottages are currently used as part of the Organization’s Emergency Shelter Program and thus its units are not
regularly held out for lease. Management believes that no refund to the State will be required.
Thus, the grant has been recorded as with with donor restriction net assets and is being released from restriction
ratably over the 50 year term of the grant and loan agreement, which will end in 2047.
South Seven Senior Housing – The Organization entered into several agreements to develop a 15 unit senior
low-income housing facility, as described below. If the property is sold, refinanced, or its use changes prior to the
end of the retention period, an amount equal to the full amount of the direct subsidies must be repaid.
Management believes that no refunds will be required. Thus, the subsidies have been recorded as with donor
restriction net assets and are being released from restriction ratably over the 40 years, which will end in years
ranging from 2042 to 2047.
Net assets released from donor restrictions during 2022 by incurring expenses satisfying the restricted purposes or
by the passage of time as follows:
Time Restrictions on Long-Lived Assets $ 62,871
Program Services 202,856
$ 265,727
Net assets released from donor restrictions during 2021 by incurring expenses satisfying the restricted purposes or
by the passage of time was $1,029,133.
NOTE 8: CONTINGENCIES
Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not
being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursement to the
grantor agencies. Any disallowed claims, including amounts already collected, would become a liability of the
Organization if so determined in the future. It is management’s belief that no material amounts received or
receivable will be required to be returned in the future.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
19
NOTE 9: FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK
The Organization manages deposit concentration risk by placing cash and savings accounts with financial
institutions believed to be creditworthy. To date, the Organization has not experienced losses in any of these
accounts. Credit risk associated with accounts receivable is considered to be limited due to high historical
collection rates and because substantial portions of the outstanding amounts are due from governmental agencies
supportive of our mission. Investments are made by diversified investment managers whose performance is
monitored by the Organization and the Board of Directors. Although the fair values of investments are subject to
fluctuation on a year-to-year basis, the Organization and Board of Directors believe that the investment policies
and guidelines are prudent for the long-term welfare of the Organization.
The Organization receives revenue from federal, state, county and municipal governments. For the years ended
December 31, 2022 and 2021, over 86% and 81%, respectively, of total support and revenues came from
government grants. It is reasonably possible that in the near term some programs could cease, which would cause
a severe impact on the Organization. However, the Organization does not expect that the support from any of the
government grants will be lost in the near term.
NOTE 10: LEASE COMMITMENTS
The Organization has obligations as a lessee for office space and other office equipment with initial noncancelable
terms in excess of one year. The Organization classified these leases as operating leases. These leases generally
contain renewal options for periods ranging from one to two years. Because the Organization is reasonably
certain to exercise these renewal options, the optional periods are included in determining the lease term, and
associated payments under these renewal options are included in the lease payments. The Organization’s leases
do not include restrictive financial or other covenants. Payments due under the lease contracts include fixed
payments.
The components of lease cost for the year ended December 31, 2022, are as follows:
Operating Lease Cost $237,617
Short Term Lease Cost 53,614
Total Lease Cost $291,231
Other information related to leases as of December 31, 2022, was as follows:
Supplemental cash flow information:
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating Cash Flow from Operating Leases $237,617
ROU Assets Obtained in Exchange for Lease Obligations:
Operating Leases $399,595
Reductions to ROU Assets Resulting from Reductions to Lease Obligations:
Operating Leases $211,357
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
20
NOTE 10: LEASE COMMITMENTS (Continued)
Remaining lease term:
Operating Leases 6 months to 9 years
Discounted rate:
Operating Leases 1.56% to 2.87%
Amounts disclosed for ROU assets obtained in exchange for lease obligations and reductions to ROU assets
resulting from reductions to lease obligations include amounts added to or reduced from the carrying amount of
ROU assets resulting from new leases, lease modifications or reassessments.
Maturities of lease liabilities under noncancellable operating leases as of December 31, 2022, are as follows:
2023 313,382$
2024 300,282
2025 256,065
2026 172,075
2027 129,503
Thereafter 163,240
Total Undiscounted Lease Payments 1,334,547
Less Imputed Interest (80,466)
Total Lease Liabilities 1,254,081$
NOTE 11: EMPLOYEE BENEFITS
The Organization has a Simplified Employee Pension Plan (SEP) for all eligible non-bargaining unit employees.
An eligible employee is one who meets an earnings test in the current year and worked at least one hour in two of
the previous five years. Employees are 100% vested in their accounts at all times. Contributions are determined
by the Board of Directors. Contributions for the years ended December 31, 2022 and 2021, amounted to $97,540
and $97,795, respectively.
NOTE 12: SUBSEQUENT EVENTS
No events have occurred through April 19, 2023 which is the date the financial statements were available to be
issued based on client facts and circumstances, for events requiring recording or disclosure in the financial
statements for the year ended December 31, 2022.
OLYMPIC COMMUNITY ACTION PROGRAMS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2022
21
NOTE 13: UNCERTAIN TAX POSITIONS
The Organization is a non-profit corporation exempt from income taxes under Section 501(c)(3) of the Internal
Revenue Code and is not classified as a private foundation. The Organization has limited unrelated business
income that is subject to tax and whose liability is not material to the financial statements. Therefore, no
provision for income taxes has been made in these financial statements.
The Organization files income tax returns in the U.S. federal jurisdiction. The Organization is no longer subject to
U.S. federal income tax examinations by tax authorities for years before 2019. Currently, there is no examination
or pending examination with the Internal Revenue Service (IRS).
As of December 31, 2022, there are no tax positions for which the deductibility is certain but for which there is
uncertainty regarding the timing of such deductibility.
NOTE 14: COVID-19 CORONAVIRUS
As a result of the spread of the COVID-19 coronavirus, economic uncertainties have arisen which could
negatively impact income. Also because of government mandates, which is expected to be temporary, could have
a negative impact on operating results. However, the related financial impact and duration cannot be reasonably
estimated at this time.
NOTE 15 - CHANGE IN ACCOUNTING PRINCIPLE
Effective January 1, 2022, the Organization adopted the new lease accounting guidance in Accounting Standards
Update No 2016-02, Leases (Topic 842). As a result of the adoption of the new lease accounting guidance, the
Organization recognized on January 1, 2022, (a) a lease liability of $1,065,843, which represents the present value
of the remaining lease payments of $1,150,764, discounted using the Organization’s incremental borrowing rate
of 1.56% to 2.87%, and (b) a right-of-use asset of $1,065,843, which represents the lease liability.
Olympic South
Community Seven Senior Eliminating
Action Programs Village 7th & Hendricks Entries Total
Current Assets
Cash and Cash Equivalents $1,790,917 $103,902 $562,624 $- $ 2,457,443
Accounts Receivable 46,131 11,608 - (36,542) 21,197
Grants Receivable 1,395,913 - - - 1,395,913
Inventory - - - - -
Prepaid Expenses & Other Assets 23,808 - - - 23,808
Total Current Assets 3,256,769 115,510 562,624 (36,542) 3,898,361
Property & Equipment
Property & Equipment, Net 2,082,619 1,753,101 11,481,245 - 15,316,965
Other Assets
Contributed Land & Facilities Use Receivable - 106,666 - - 106,666
Right of Use Asset 1,254,081 - - - 1,254,081
Administration & Monitoring Fee - - 226,064 - 226,064
Investments 94,650 - 151,482 - 246,132
Total Other Assets 1,348,731 106,666 377,546 - 1,832,943
Total Assets $ 6,688,119 $ 1,975,277 $ 12,421,415 $ (36,542) $21,048,269
Current Liabilities
Cash Overdraft $- $ 1,076 $ - $ - $ 1,076
Accounts Payable 465,556 36,709 349,804 (36,542) 815,527
Accrued Expenses 619,006 - - - 619,006
Other Liabilities 89,795 5,491 - - 95,286
Deferred Revenue 2,424 507 - - 2,931
Current Portion of Notes Payable 22,812 - - - 22,812
Current Portion of Operation Lease Liability 285,843 - - - 285,843
Total Current Liabilities 1,485,436 43,783 349,804 (36,542) 1,842,481
Long Term Liabilities
Notes Payable, Net of Current Portion 829,881 - 11,250,186 - 12,080,067
Less Loan Fees, Net - - (65,213) - (65,213)
Operation Lease Liability, Net of Current Portion 968,238 - - - 968,238
Total Long Term Liabilities 1,798,119 - 11,184,973 - 12,983,092
Net Assets
Without Donor Restrictions (Deficit) 2,077,494 583,911 886,638 - 3,548,043
With Donor Restrictions 1,327,070 1,347,583 - - 2,674,653
Total Net Assets 3,404,564 1,931,494 886,638 - 6,222,696
Total Liabilities and Net Assets $6,688,119 $1,975,277 $12,421,415 $(36,542) $21,048,269
The accompanying notes are an integral part of these financial statements.
22
Olympic Community Action Programs
CONSOLIDATING STATEMENT OF FINANCIAL POSITION
As of December 2022
ASSETS
LIABILITIES AND NET ASSETS
Olympic South
Community Seven Senior Eliminating
Action Programs Village 7th & Hendricks Entries Grand Total
Support & Revenue
Grants $12,056,245 $- $1,352,363 $- $13,408,608
Contributions 1,435,399 - - - 1,435,399 Inkind Contributions 677,793 4,593 - - 682,386
Rental Income 199,307 117,768 - - 317,075
Development Fee 200,000 - - (200,000) -
Fee Revenue 12,040 - - - 12,040
Other Income 103,459 924 - (52,436) 51,947 Gain on Sale of Assets 150,436 - - - 150,436
Investment Income (Loss)(15,870) - 4,330 - (11,540) Total Support & Revenue 14,818,809 123,285 1,356,693 (252,436) 16,046,351
Expenses
Program Services 12,900,511 160,803 200,030 (245,467) 13,015,877 Management & General Expenses 1,237,338 13,982 - (6,969) 1,244,351
Total Expenses 14,137,849 174,785 200,030 (252,436) 14,260,228
Change in Net Assets 680,960 (51,500) 1,156,663 - 1,786,123
NET ASSETS, BEGINNING OF YEAR 2,336,300 1,982,994 117,279 - 4,436,573
Transfer 387,304 - (387,304) - -
NET ASSETS (DEFICIT), END OF YEAR $ 3,404,564 $ 1,931,494 $ 886,638 $ - $6,222,696
The accompanying notes are an integral part of these financial statements.
Olympic Community Action Programs
CONSOLIDATING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
23
Year Ended December 31, 2022
Olympic South
Community Seven Senior Eliminating
Action Programs Village 7th & Hendricks Entries Total
Salaries & Wages 3,858,528$ 29,819$ -$ (29,644)$ 3,858,703$
Payroll Taxes 464,278 4,112 - (3,214) 465,176
Fringe Benefits 1,006,462 4,879 - (3,182) 1,008,159
Total Payroll Costs 5,329,268 38,810 - (36,040) 5,332,038
General & Operating Costs
Direct Payments & Costs 5,904,435 - - - 5,904,435
Inkind Expenses 699,261 5,000 - - 704,261
Occupancy 1,029,590 53,651 - (4,019) 1,079,222
Supplies 201,826 2,273 - (330) 203,769
Travel & Transportation 108,719 - - - 108,719
Communications 181,763 - - - 181,763
Interest Expense 68,771 - - - 68,771
Professional Services 170,596 13,982 200,000 (205,078) 179,500
Staff & Volunteer Develop. 92,649 - - - 92,649
Insurance 99,847 8,534 - (6,969) 101,412
Minor Equipment (33,006) - - - (33,006)
Printing & Publications 12,023 - - - 12,023
Miscellaneous 27,980 - 30 - 28,010
Equipment Lease & Maint. 48,640 - - - 48,640
Business Taxes & Licenses 891 - - - 891
Total General & Operating
Costs 8,613,985 83,440 200,030 (216,396) 8,681,059
Depreciation Expense 194,596 52,535 - - 247,131
Total Expenses 14,137,849$ 174,785$ 200,030$ (252,436)$ 14,260,228$
The accompanying notes are an integral part of these financial statements.
Olympic Community Action Programs
CONSOLIDATING STATEMENT OF FUNCTIONAL EXPENSES
Year Ended December 31, 2022
24
Federal Agency or From FromCFDA Pass-through Pass-Through DirectNumber Number Awards Awards Total SubrecipientsDepartment of Health and Human Services Head Start 93.60010CH010956-04-00$- $971,056 $971,056 $- Head Start 93.60010CH010956-03-01- 1,341,354 1,341,354 - ARP Head Start 93.60010HE00092301-01/C6- 119,097 119,097 - Covid Head Start 93.60010HE00092301-00/C5- 11,937 11,937 - - 2,443,444 2,443,444 - Passed through Department of Commerce: Community Services Block Grant 93.569F22-32101-02055,197 - 55,197 - Community Services Block Grant 93.569F21-32101-020167,788 - 167,788 - Covid Community Services Block Grant 93.569F20-3210C-02043,043 - 43,043 - 266,028 - 266,028 - Community Workfirst Programs 93.558 S22-32710-027 148,150 - 148,150 - 148,150 - 148,150 - Low Income Home Energy Assistance - Weatherization93.568 F19-53101-40529,989 - 29,989 - Covid Low Income Home Energy Assistance - Weatherization93.568 F21-53101-405129,136 - 129,136 - Low Income Home Energy Assistance - Weatherization ARP 93.568 F21-5310C-405141,088 - 141,088 - Low Income Home Energy Assistance - Energy Assistance 93.568 F21-32606-057622,112 - 622,112 - Low Income Home Energy Assistance - ARP 93.568 F21-3260A-057931,581 - 931,581 - Low Income Home Energy Assistance - LIHWAP 93.568 F21-32607-057148,103 - 148,103 - 2,002,009 - 2,002,009 - Passed through Olympic Area Agency on Aging: Nutrition Services Incentive Program93.053 555-61-01-2132,729 - 32,729 - The accompanying notes are an integral part of these financial statements.ExpendituresOlympic Community Action ProgramsSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ended December 31, 202225Federal Grantor/Pass-ThroughGrantor/Program Title
Federal Agency or From FromCFDA Pass-through Pass-Through DirectNumber Number Awards Awards Total Subrecipients Special Programs for the Aging Title III, Part C Nutrition Services 93.045 555-61-01-2149,021 - 49,021 - Special Programs for the Aging Title III, Part C Nutrition Services 93.045 555-64-01-21110,799 - 110,799 - Subtotal Cluster192,549 - 192,549 - Total Department of Health and Human Services2,608,736 2,443,444 5,052,180 - Department of Energy Passed through Department of Commerce: BPA Weatherization81.999 F21-53104-40554,474 - 54,474 - Weatherization Assistance for Low income Persons 81.042 F22-53103-40545,787 - 45,787 - Weatherization Assistance for Low income Persons 81.042 F21-53103-405561 - 561 - Total Department of Energy100,822 - 100,822 - Corporation for National and Community Service Retired and Senior Volunteer Program94.00220SRPWA007 - 60,741 60,741 - Total Corporation for National and Community Development- 60,741 60,741 - Department of Veterans Affairs Passed through Opportunity Council Supportive Services for Veteran Families 64.03319-WA-079SS 22,579 - 22,579 Supportive Services for Veteran Families 64.03319-WA-079-1 134,629 - 134,629 - Total Department of Veterans Affairs157,208 - 157,208 - The accompanying notes are an integral part of these financial statements.ExpendituresOlympic Community Action ProgramsSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ended December 31, 202226Federal Grantor/Pass-ThroughGrantor/Program Title
Federal Agency or From FromCFDA Pass-through Pass-Through DirectNumber Number Awards Awards Total SubrecipientsDepartment of Agriculture Community Facilities Loans and Grants 10.766 - 675,151 675,151 - Passed through Olympic Area Agency on Aging: Senior Farmers Market10.576 555-67-01-21 4,124 - 4,124 - Passed through Department of Commerce: Food Assistance - CSFP10.565K277322,989 - 22,989 - Food Assistance - CSFP Commodities 10.565K277381,627 - 81,627 81,627 Emergency Food Assistance Program Administrative Costs10.568 K2773 96,321 - 96,321 - Emergency Food Assistance Program Reach & Resiliancy10.568 K2773 9,919 - 9,919 - Emergency Food Assistance Program Food Commodities 10.569 K2773 423,211 - 423,211 423,211 Subtotal Cluster634,067 - 634,067 504,838 Passed through Superintendent of Public Instruction: USDA - Child10.55818-03-004265,025 - 65,025 - 65,025 - 65,025 - Total Department of Agriculture703,216 675,151 1,378,367 504,838 Department of Housing and Urban Development Supportive Housing Program - Continuum of Care14.267 WA0322LOT12005 - 58,856 58,856 - Supportive Housing Program - Continuum of Care14.267 WA0322LOT012106 - 10,040 10,040 - Supportive Housing Program - Continuum of Care14.267 WA0432YOTO12001 - 23,468 23,468 - Supportive Housing Program - Continuum of Care14.267 WA0502Y0T012100 - 7,542 7,542 - Supportive Housing Program - Continuum of Care14.267 WA0498Y0T012100 - 29,887 29,887 - Supportive Housing Program - Continuum of Care14.267 WA0439YOTO12001 - 62,833 62,833 - - 192,626 192,626 - The accompanying notes are an integral part of these financial statements.Olympic Community Action ProgramsSCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ended December 31, 2022ExpendituresFederal Grantor/Pass-ThroughGrantor/Program Title27
Federal Agency or From FromCFDA Pass-through Pass-Through DirectNumber Number Awards Awards Total Subrecipients Covid Emergency Solutions14.231 20-4613C-111 - 303,544 303,544 - Passed through Jefferson County: Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.22821-62210-007 104,114 - 104,114 - Covid Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii 14.22820-6221C-114 116,720 - 116,720 - Passed through Department of Commerce: HOME Investment Partnership Program 14.239 5-94-418-I-A 524,732 - 524,732 - Total Department of Housing and Urban Development745,566 496,170 1,241,736 - Department of Treasury Passed through Department of Commerce: Cares Funding 21.027 21-4619C-1112,393,750 - 2,393,750 129,937 Cares Funding 21.027 22-46306-01026,473 - 26,473 - Cares Funding 21.027 23-46306-00211,866 - 11,866 - Passed through Washington State Dept. of Agriculture: Cares Funding 21.027 K349131,589 - 31,589 - Cares Funding 21.027 K349132,338 - 32,338 - Cares Funding 21.027 K34916,183 - 6,183 - Cares Funding 21.027 K4066102,527 - 102,527 - Total Department of Treasury2,604,726 - 2,604,726 129,937 Total Federal Awards$ 6,920,274 $ 3,675,506 $ 10,595,780 $ 634,775 The accompanying notes are an integral part of these financial statements.Year Ended December 31, 2022ExpendituresFederal Grantor/Pass-ThroughGrantor/Program Title28Olympic Community Action ProgramsSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Olympic Community Action Programs
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2022
29
NOTE 1: BASIS OF ACCOUNTING
This schedule is prepared on the same basis of accounting as the Organization’s financial statements. The
Organization uses the accrual basis of accounting.
NOTE 2: DE-MINIMIS COST RATE
The Organization did not use the 10% de-minimis cost rate.
NOTE 3: FEDERAL EXPENDITURES FROM LOANS
Beginning Current Year Ending
Balance Activity Balance
USDA Loan $ 675,151 $ (675,151) $ -
HOME Loan 524,732 - 524,732
Total $1,199,883 $ (675,151) $ 524,732
Agency or
Pass-through
Number Total
Passed through Department of Commerce:
Matchmaker Program - Weatherization S21-92401-405 $124,486
Community Services Block Grant S23-32B902-220 36,339
Community Services Block Grant S22-32101-220 47,158 Home Rehabilitation Revolving Loan Program S21-92402-405 89,910 YHDP 22-46306-010 9,434
IYHP 23-46324-102 16,263
Pfeiffer House Multi Family Unit 21RC-94115-008 123,190 Consolidated Homeless Grant 22-46108-13 219,962 666,742
Passed through Washington State Dept. of Children, Youth & Families:
ECEAP 23-1045 371,067
ECEAP 22-1085 184,154
ECEAP Complex Needs New Projects SWV0006029 00 53,996
ECEAP Concrete Goods None 8,164
617,381
Passed through Amerigroup:
Amerigroup - Housing None 63,483
Amerigroup - Employment None 90,690
154,173
Passed through Olympic Area Agency on Aging:
Home Delivered Meals 555-64-01-21 110,799
Passed through Washington State Retired Senior Volunteer Program:
Washington Association RSVP None 25,644
Passed through Washington State Dept. of Agriculture:
Emergency Food Assistance Program Admin Costs K3491 38,794
Emergency Food Assistance Program Admin Costs Food Bank K2732 45,665
84,459
Passed through Kitsap County Human Services:
HARPS KC-134-20 109,232
The accompanying notes are an integral part of these financial statements.
Olympic Community Action Programs
SCHEDULE OF EXPENDITURES OF STATE AWARDS
Year Ended December 31, 2022
Pass-Through
Grantor/Program Title
30
Agency or
Pass-through
Number Total
Passed through Department of Social & Health Services:
GOSH 2212-42216 78,398
Passed through Jefferson County:
Community Development Block Grant 22-62210-007 102,866
Passed through Washington State Dept. of Transportation:
Washington State DOT - West End Job Lift PTD0275 47,248
47,248
Total State Awards $ 1,996,942
The accompanying notes are an integral part of these financial statements.
31
SCHEDULE OF EXPENDITURES OF STATE AWARDS
Year Ended December 31, 2022
Pass-Through
Grantor/Program Title
Olympic Community Action Programs
Olympic Community Action Programs
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended December 31, 2022
32
No prior year findings.
33
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
To the Board of Directors
Olympic Community Action Programs
Port Townsend, WA
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the consolidated financial statements of Olympic
Community Action Programs (a nonprofit organization), which comprise the statement of financial position
as of December 31, 2022, and the related statements of activities, functional expenses and cash flows for
the year then ended, and the related consolidated notes to the financial statements, and have issued our
report thereon dated April 19, 2023.
Internal Control Over Financial Reporting
In planning and performing our audit of the consolidated financial statements, we considered the
Organization’s internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Organization’s internal control. Accordingly, we do not express an opinion on the effectiveness of the
Organization’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
consolidated financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Organization’s consolidated financial
statements are free from material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of consolidated financial statement amounts. However, providing an
34
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the organization’s
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the organization’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Aiken & Sanders, Inc., PS
Certified Public Accountants
& Management Consultants
April 19, 2023
35
MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM
GUIDANCE
To the Board of Directors
Olympic Community Action Programs
Port Townsend, WA
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Olympic Community Action Programs (the Organization) compliance with the types of
compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of the Organization’s major federal programs for the year ended December 31, 2022.
The Organization’s major federal programs are identified in the summary of auditor’s results section of the
accompanying schedule of findings and questioned costs.
In our opinion, the Organization complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended December 31, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the Organization and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the Organization’s compliance with
the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
Organization’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the Organization’s compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
36
GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material, if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance about
the Organization’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the Organization’s compliance with the compliance requirements
referred to above and performing such other procedures as we considered necessary in the
circumstances.
• Obtain an understanding of the Organization’s internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for
the purpose of expressing an opinion on the effectiveness of the Organization’s internal control
over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies in internal control over compliance may exist that were not identified.
37
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Aiken & Sanders, Inc., PS
Certified Public Accountants
& Management Consultants
April 19, 2023
Olympic Community Action Programs
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2022
38
Section I - Summary of Auditor’s Results:
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Material weaknesses identified: No
Significant deficiencies identified not considered to be material weaknesses: No
Noncompliance material to financial statements noted: No
Federal Awards
Internal control over major programs:
Material weaknesses identified: No
Significant deficiencies identified not considered to be material weaknesses: No
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance,
Section 200.516(a): No
Identification of major programs:
CFDA Numbers
21.027 Coronavirus State and Local Fiscal Recovery Funds
93.568 Low Income Home Energy Assistance
Name of Federal Program
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee: No
Section II – Financial Statement Findings:
No matters were reported.
Section III – Federal Award Findings and Questioned Costs:
No matters were reported.