CAMINAR
(A California Nonprofit Public Benefit Corporation)
***
FINANCIAL STATEMENTS
AND
SUPPLEMENTARY INFORMATION
Year Ended June 30, 2013 and 2012
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Caminar as of June 30, 2013, and the changes in its net assets and its cash flows
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Report on Summarized Comparative Information
We have previously audited Caminar’s 2012 financial statements, and in our report dated January 7,
2013, we expressed an unmodified opinion on those statements. In our opinion, the summarized
comparative information presented herein as of and for the year ended June 30, 2012, is consistent, in
all material respects, with the audited financial statements from which it was derived.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a
whole. The schedules of operating expenses by region (pages 22-27) are presented for purposes of
additional analysis and are not a required part of the financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the financial statements, except that the schedules of operating
expenses by region (pages 22-27) do not include in-kind rent. The information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the information is fairly stated, in all material
respects, in relation to the financial statements as a whole.
BERGER LEWIS ACCOUNTANCY CORPORATION
San Jose, California
December 6, 2013
-2-
FINANCIAL STATEMENTS
CAMINAR
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2013 AND 2012
2013
2012
ASSETS
Current assets:
Cash
Investments
Government contracts and program service fees receivable
Prepaid expenses and deposits
Total current assets
$
Funds held for others
Restricted retirement plan investment
Other intangible assets - net
Property and equipment - net
250,600
10,429
1,842,227
204,789
2,308,045
$
17,351
11,444
4,490,770
Total assets
569,765
189,645
1,322,538
117,690
2,199,638
7,517
78,808
17,710
4,185,710
$
6,827,610
$
6,489,383
$
441,489
859,772
253,806
42,998
18,564
170,377
1,787,006
$
344,161
773,245
117,032
78,808
46,048
9,489
109,435
1,478,218
LIABILITIES AND NET ASSETS
Current liabilities:
Accounts payable and accrued expenses
Wages and related taxes/insurance payable
Refundable Advances
Deferred compensation payable
Security deposits payable
Other liabilities
Notes payable - current portion
Total current liabilities
Notes payable - net of current portion
1,491,376
1,585,377
Total liabilities
3,278,382
3,063,595
Net assets:
Unrestricted
Invested in property and equipment
Total unrestricted net assets
Temporarily restricted net assets
Total net assets
610,875
2,879,017
3,489,892
59,336
3,549,228
901,320
2,490,898
3,392,218
33,570
3,425,788
Total liabilities and net assets
$
6,827,610
The accompanying notes are an integral part of these financial statements.
-3-
$
6,489,383
CAMINAR
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2013 WITH
COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2012
2013
Temporarily
Restricted
Unrestricted
Support and revenue:
Government contracts
Governmental assistance -in-kind
Program service fees
Resident contribution
Other affordable rental income
Private contracts/grants
Donations
Donations - In-Kind
$ 13,395,281
70,427
1,195,596
642,107
323,144
255,283
94,785
373,436
Special Events
Contributions and revenue
In Kind contributions
Direct benefit to donors
Net special events
$
$ 13,395,281
70,427
1,195,596
642,107
323,144
343,833
94,785
373,436
74,634
Total
$ 12,529,284
47,258
1,533,868
639,350
365,818
137,300
127,545
167,110
102,413
26,250
(33,778)
94,885
100,400
31,493
6,698
44,246
16,515,531
Net assets released from restrictions
Total
11,850
11,850
90,563
26,250
(33,778)
83,035
Social Venture income
Investment income
Other income
88,550
-
2012
130,016
11,300
(23,385)
117,931
31,493
6,698
44,246
16,615,931
(74,634)
29,099
15,698
10,539
15,720,800
-
-
Total support and revenue
16,590,165
25,766
16,615,931
15,720,800
Expenses:
Program services
Management and general
Fundraising
Total expenses
14,236,815
2,006,176
249,500
16,492,491
-
14,236,815
2,006,176
249,500
16,492,491
13,946,244
1,768,431
252,742
15,967,417
Change in net assets
Net assets, beginning of year
Net assets, end of year
$
97,674
25,766
123,440
3,392,218
33,570
3,425,788
3,489,892
$
59,336
$
3,549,228
The accompanying notes are an integral part of these financial statements.
-4-
(246,617)
3,672,405
$
3,425,788
CAMINAR
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2012
2013
Management
and General
Fundraising
Program
Services
Salaries
Employer taxes/insurances
Employee benefits
Building/household supplies & furnishings
Client expense/support
& program activities/utilities
Client food & beverage
Donated food distributed
Contracted/professional services
Insurance
Interest
Membership, dues & subscriptions
Miscellaneous
Marketing, advertising & promotions
Office & computer supplies/furnishings
Payroll and bank charges
Postage
Printing
Rents
Rents - in-kind
Staff/board functions/retreats
Staff recruitment, screening, training
Telephone
Travel & auto
Utilities
Total expense before depreciation
and amortization
Depreciation and amortization
Total expenses
Percentage
$
6,989,625
1,113,224
846,974
249,376
$
1,155,304
118,260
119,645
5,601
$
106,754
10,883
5,722
361
2012
Total
$
8,251,683
1,242,367
972,341
255,338
Total
$
8,334,673
1,158,187
989,070
231,901
78,920
92,890
299,608
1,685,885
118,910
55,056
19,270
2,466
769
235,676
344
8,832
17,661
1,574,295
95,641
18,782
73,230
90,132
229,923
173,616
31
120,466
15,051
34,953
2,693
7
300
78,528
28,115
4,041
2,813
97,003
45,585
9,624
4,795
16,738
24,303
250
23,258
769
4,960
52,254
1,577
2,106
941
15,916
3,996
3,029
3,520
720
93
403
27
78,951
92,890
299,608
1,829,609
134,730
90,009
26,923
2,473
53,323
315,781
30,565
13,814
36,390
1,675,294
144,255
31,926
78,745
106,963
254,629
173,893
110,310
105,118
214,368
1,742,353
131,076
86,549
27,321
3,618
48,423
255,689
30,208
14,337
35,677
1,548,479
32,245
92,397
121,120
277,896
140,162
14,071,105
1,884,106
237,289
16,192,500
15,731,177
165,710
122,070
12,211
299,991
236,240
249,500
$ 16,492,491
$ 14,236,815
$
86.3%
2,006,176
12.2%
$
1.5%
The accompanying notes are an integral part of these financial statements.
-5-
100.0%
$
15,967,417
CAMINAR
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
2013
Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net assets to net cash
flows from operating activities:
Depreciation and amortization
Unrealized (gain)/loss on investments
Realized (gain)/loss on investments
Loss on disposal of fixed assets
(Increase) decrease in assets:
Government contracts and program service fees receivable
Prepaid expenses and deposits
Funds held for others
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
Wages and payroll taxes/insurance payable
Refundable advances and and other liabilities
Security deposits payable
Net cash flows from operating activities
$
Cash flows from investing activities:
Proceeds from sale of investments
Purchase of investments
Purchase of property and equipment
Net cash flows from investing activities
Cash flows from financing activities:
Proceeds from new notes payable
Payments of notes payable
Net cash flows from financing activities
Increase (decrease) in cash
Cash, beginning of year
123,440
2012
$
(246,617)
299,991
(15)
(6,683)
648
236,240
(11,033)
-
(519,689)
(87,099)
(9,834)
79,326
116,666
-
97,328
86,527
145,849
(3,050)
127,413
110,390
497
(97,697)
46,048
233,820
185,914
(568,563)
(13,682)
(50,786)
(382,649)
(64,468)
50,000
(113,929)
(90,628)
(63,929)
(90,628)
(319,165)
78,724
569,765
491,041
Cash, end of year
$
250,600
$
569,765
Supplementary information:
Cash paid for interest
Acquisition of vehicles through financing
$
$
90,009
30,870
$
$
85,421
77,074
The accompanying notes are an integral part of these financial statements.
-6-
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - MISSION AND ORGANIZATIONAL BACKGROUND
Caminar, headquartered in San Mateo, is a nonprofit agency with nearly 50 years of experience providing
community-based support services for transition age youth, adults, and older adults with mental health,
physical, and developmental disabilities. Its mission is to improve the quality of life for people with
disabilities by providing opportunities to live in the community with dignity and independence. Caminar
is committed to developing and providing innovative programs and services that enable people with
disabilities to live, work, and pursue an education in their communities based on their choice and ability.
Caminar clients are referred from county agencies and local hospitals that are generally not equipped to
handle the specialized treatment which they require to fully integrate back into the community. The
majority of clients come from low- and very low-income households, and approximately three out of four
Caminar clients are homeless at the time of their referral. In addition, most clients have multiple
problems that co-occur with their mental illnesses including alcohol and/or drug dependence, serious
medical problems, legal problems, no income, lack of health coverage, and no social supports. The
number of people Caminar serves annually has grown from 41 individuals in 1964 to over 2,000 today.
Caminar provides services in San Mateo, Solano, San Francisco and Butte County. Approximately 85%
of Caminar’s funding comes from governmental agencies.
Caminar Service Locations:
San Mateo County
Caminar provides San Mateo County with community rehabilitation programs for young adults and adults
with mental illness, including crisis and transition residential treatment, intensive case management,
supported employment and education, a medication clinic, a community food pantry, and permanent
housing. Caminar offers five supported case management programs that provide a holistic approach to
recovery, health, and wellness: FSP (Full Service Partnership), REACH (Recovery, Empowerment, and
Community Housing), New Ventures, YAIL (Young Adult Independent Living), and WRAPP (Wellness,
Recovery, and Partnership Program). Programs in San Mateo also provide support services to people
with co-occurring disorders. Caminar staff is trained in substance abuse and mental health recovery and
dedicated to the recovery journey for each individual. A vital part of the recovery process is to encourage
employment, education, and creative talents. Caminar/San Mateo serves approximately 1,200 clients
annually.
Caminar of San Mateo is CARF certified in its Jobs Plus, FSP and Redwood House crisis residential
programs. The commission on Accreditation of Rehabilitation Facilities (CARF) is an independent
nonprofit organization, whose focus is on ensuring that only high quality services receive the CARF
accreditation. CARF’s rigorous standards provide assurance that Caminar of San Mateo County services
are of that high quality.
-7-
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - MISSION AND ORGANIZATIONAL BACKGROUND (Continued)
Solano County
Caminar Solano County oversees numerous programs funded by the Mental Health Service Act
(MHSA). These programs include a wellness and recovery drop-in center for mental health consumers;
an adult and older adult case management program (FSP) with an embedded medication clinic that is
staffed by a psychiatrist and a registered nurse; the region organizes, coordinates, facilitates the Mental
Health Collaborative which is a quarterly meeting for non-profit and county mental health providers; and
MHSA funded supportive housing programs.
In addition Caminar Solano operates two other case management programs. These two case management
programs (SAILS and Comprehensive Case Management) serve a combined total 180 Solano County
residents with a mental health disorder and receive their funding through traditional Medi-cal
reimbursement. These services are targeted toward the chronically mentally ill and serve a spectrum of
that population that is not as severe as the clients served in the MHSA FSP case management program.
All total between Caminar Solano’s three case management programs, we serve over 220 unduplicated
clients every fiscal year and we are the largest single provider of case management services in Solano
County.
Caminar Solano also oversees an extensive supportive housing program. The programs are funded by
various state (MHSA) and federal dollars that are awarded to Caminar through Solano County Mental
Health. The services run the spectrum of supportive housing needs from 30 day transitional to long term
permanent housing. Participants pay a portion of their income towards their rent while the remainder of
the rent is offset by a subsidy. The region believes in the philosophy of “housing first” for its’ clients and
understands that safe, supportive, clean housing provides the basic building block for mental health
consumers in making their life more stable and secure.
Laurel Creek provides the only state licensed and certified short term crisis residential treatment for
Solano County. The 13 bed facility has been open since 1999 and Caminar has been its’ sole provider
since that time. Participants stay on average 18 days and the facility treats between 150 to 175 clients
annually. Solano County has no publicly funded hospital or psychiatric in-patient facility, and thus
Laurel Creek serves a critical link for Solano County Mental Health by providing psychiatric stabilization
to its’ most vulnerable residents.
Caminar Solano is CARF certified in its Jobs Plus, FSP and Laurel Creek crisis residential programs. The
commission on Accreditation of Rehabilitation Facilities (CARF) is an independent nonprofit
organization, whose focus is on ensuring that only high quality services receive the CARF accreditation.
CARF’s rigorous standards provide assurance that Caminar of Solano County services are of that high
quality.
Caminar Solano serves approximately 700 clients annually.
-8-
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - MISSION AND ORGANIZATIONAL BACKGROUND (Continued)
Butte County
Caminar has been active in Butte County since the 1980’s when it opened a transitional residential home
for people with severe mental illness. Caminar/Butte has since expanded services to include individuals
who have developmental and physical disabilities. Caminar has a variety of programs in Butte designed
to promote independent living and community integration for adults with disabilities such as supported
employment, socialization, education, and housing. Caminar offers several programs that provide
comprehensive services: Access Plus; CASS (Community Activity Support Service); Friendship Circle;
Senior Ties; JOBS PLUS; Situational Assessment; Personal, Vocational and Social Adjustment;
Vocational Work Crew; and Supported Housing.
Caminar Butte Jobs Plus is CARF certified. The commission on Accreditation of Rehabilitation Facilities
(CARF) is an independent nonprofit organization, whose focus is on ensuring that only high quality
services receive the CARF accreditation. CARF’s rigorous standards provide assurance that Caminar
Butte Jobs Plus services are of that high quality.
Caminar Butte operates two social enterprises, Sensible Cyclery and PROTOUCH which give hands on
vocational training to help our clients gather the necessary skills to be hired. Sensible Cyclery sells
reconditioned bicycles at an affordable price and PROTOUCH provides low-cost janitorial services.
The region also provides property management services for a supportive housing project called Avenida
Apartments. It is a 14 unit complex that provides housing to individuals who have a mental illness and
who have experienced homelessness.
Caminar Butte provides services to approximately 200 individuals each year, 70% of its client population
having a developmental disability and 30% having mental illness.
San Francisco County
Subsequent to year end, Caminar expanded into San Francisco County by providing vocational services
through Jobs Plus. Approximately 70% of the clients we serve through Jobs Plus have not worked in the
last 10 years due to their disability. Having a job is a major step towards recovery as it gives our clients a
sense of purpose and a feeling that they are contributing to society.
Caminar Jobs Plus works with each individual to find job placement and then tailors job coaching to
ensure success. Vocational counselors help our clients with pre-employment preparation such as resume
writing and interview skills. We then train clients on how to behave and interact appropriately on the job,
how to perform their job duties, how to dress, proper hygiene, how to be on time and how to manage
symptoms while keeping a job. These behaviors may seem simple, but our clients need the specialized
support in order to succeed.
-9-
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method
Caminar uses the accrual method of accounting, which recognizes income in the period earned and
expenses when incurred, regardless of the timing of payments.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expense during the reporting period.
Actual results could differ from those estimates.
Basis of Presentation
Caminar and Affiliate reports information regarding its financial position and activities according to three
classes of net assets, as applicable: unrestricted net assets, temporarily restricted net assets, and
permanently restricted net assets.
o
Unrestricted Net Assets includes the Operating Fund, Board Designated Funds and the
Unrestricted Equipment Fund. These funds record the net assets over which the Board of
Directors has discretionary control and which are used to carry out operations of the
Organization in accordance with its bylaws.
o
Temporarily Restricted Net Assets includes resources currently available for use, but
expendable only for those operating purposes specified by the donor or funding source.
The Organization does not imply a time restriction on gifts of long lived assets.
Resources of this fund originate from gifts, grants and bequests.
o
Permanently Restricted Net Assets includes the endowment funds which consist of gifts
and bequests accepted with the donor stipulation that the principal or fixed asset item be
restricted in perpetuity. The income from these assets is available for either general
operations or specific programs as specified by the donor. The Organization does not
currently have any permanently restricted net assets.
Reclassifications
Certain amounts in the prior year have been reclassified in order to be consistent with the current year
presentation.
- 10 -
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Comparative Financial Information
The financial statements include certain prior-year summarized comparative information in total but not
by net asset class or functional expense categories. Such information does not include sufficient detail to
constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the Organization's financial statements for the year ended
June 30, 2012, from which the summarized information was derived.
Revenue Recognition
Contributions
Contributions are recognized as revenue when they are unconditionally communicated. Grants
represent contributions if resource providers receive no value in exchange for the assets
transferred. Contributions are recorded at their fair value as unrestricted support, temporarily
restricted support, or permanently restricted support, depending on the absence or existence of
donor imposed restrictions as applicable. When a restriction expires (that is when a stipulated
time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the statement of activities as net assets
released from restrictions.
Government Contracts
Government contracts or cost-reimbursement type contracts are deemed to be exchange
transactions and, accordingly, are shown separately as government contracts in the statement of
activities.
Cash
Cash is defined as cash in demand deposit accounts as well as cash on hand. Not included as cash are
funds restricted as to their usage, regardless of liquidity. Caminar occasionally maintains cash on deposit
at banks in excess of the Federal Deposit Insurance Corporation limit. Management does not believe
Caminar is exposed to any significant risk on cash accounts.
Government Contracts Program Service Fees Receivable
Receivables arise principally from charges to funding sources for current expenses. At June 30, 2013
and 2012, the Organization considered accounts receivable to be fully collectible. Management elects to
record bad debts using the direct write-off method. Accounting principles generally accepted in the
United States of America require that the allowance method be used to reflect bad debts. However, the
effect of the use of the direct write-off method is not materially different from the results that would be
obtained had the allowance method been followed.
- 11 -
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments
Investments are stated at fair value based on quoted market prices provided by investment managers.
Dividends and interest are accrued as earned and recorded as unrestricted revenue unless income is
restricted by the donor. The unrealized gain or loss for the current period is reported as investment
income.
Fair Value Measurements
Fair value is defined as "the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date."
Accounting principles generally accepted in the United States of America establish a hierarchy to
prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest
ranking to fair values determined using unadjusted quoted prices in active markets for identical assets
(Level 1) and the lowest ranking to fair values determined using methodologies and models with
unobservable inputs (Level 3). Observable inputs are those that market participants would use in pricing
the asset based on market data obtained from sources independent of the Organization. Unobservable
inputs reflect the Organization’s assumption about the inputs market participants would use in pricing the
asset or liability developed based on the best information available in the circumstances.
The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 - Values are unadjusted quoted prices for identical assets and liabilities in active markets
accessible at the measurement date.
Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from
those willing to trade in markets that are not active, or other inputs that are observable or can be
corroborated by market data for the term of the instrument. Such inputs include market interest rates and
volatilities, spreads and yield curves.
Level 3 - Certain inputs are unobservable (supported by little or no market activity) and significant to the
fair value measurement. Unobservable inputs reflect Caminar's best estimate of what hypothetical market
participants would use to determine a transaction price for the asset or liability at the reporting date.
Property and Equipment
Property and equipment are stated at cost of acquisition or construction or at fair value if donated. The
cost of maintenance and repairs are charged to expense as incurred. Depreciation is based on the straightline method over the estimated useful lives of the assets.
- 12 -
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Property and Equipment (Continued)
Caminar capitalizes and depreciates significant assets with values of $5,000 or more. However, certain
assets, such as flooring replacements, furniture and equipment, that usually have useful lives longer than
one year are frequently replaced, and are expensed accordingly. The useful lives of the assets are
estimated as follow:
Building and improvements
Leasehold improvements
Household furnishings and equipment
Office furniture and equipment
Vehicles
7 to 40 years
5 years
7 years
5 to 7 years
5 years
Advertising
The Organization’s policy is to expense advertising costs as the cost are incurred. Advertising expense
for the years ended June 30, 2013 and 2012 was $43,280 and $42,117, respectively.
Income Taxes
Caminar is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code and
the related California code sections.
Accounting principles generally accepted in the United States of America provide accounting and
disclosure guidance about positions taken by an organization in its tax returns that might be uncertain.
Management has considered its tax positions and believes that all of the positions taken by the
Organization in its federal and state exempt organization tax returns are more-likely-than-not to be
sustained upon examination.
The Organization’s federal Return of Organization Exempt from Income Tax (Forms 990) for years ended
June 30, 2010 through 2012 are subject to examination by the IRS, generally for three years after they are
filed. The Organization’s state returns (Forms 199) for the years ended June 30, 2009 through 2012 could
be subject to examination by state taxing authorities, generally for four years after they are filed.
Functional Expense Allocation
The costs of providing program services and supporting services are summarized on a functional basis in
the statement of activities and statement of functional expenses. Certain costs are allocated among
program services and supporting services based on actual employee time incurred and on usage of
resources.
- 13 -
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subsequent Events
Management of the Organization has evaluated events and transactions subsequent to June 30, 2013 for
potential recognition or disclosure in the financial statements. The Organization did not have subsequent
events, that require recognition or disclosure in the financial statements for the year ended June 30,
2013. Subsequent events have been evaluated through the date the financial statements became available
to be issued, December 6, 2013. The Organization has not evaluated subsequent events after that date.
NOTE 3 - FAIR VALUE MEASUREMENTS
The following investments as of June 30 are classified as Level 1 investments (See Note 2). The fair value
of investments as of June 30 was as follows:
2012
2013
Vanguard Funds
$
10,429
$
2013
Investment Income:
Realized gains & earnings
Unrealized appreciation
$
$
189,645
2012
6,683
15
6,698
$
$
4,665
11,033
15,698
NOTE 4 - PROPERTY AND EQUIPMENT
Property and equipment is summarized as follows:
2013
Land
Buildings
Household furnishings and equipment
Vehicles
Office equipment
Leasehold improvements
$
Less: accumulated depreciation
Total property and equipment
$
- 14 -
2012
766,420 $
4,527,580
237,110
503,241
209,833
425,902
6,670,086
(2,179,316)
4,490,770
$
766,420
4,527,580
239,069
533,009
183,093
31,098
6,280,269
(2,094,559)
4,185,710
CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 5 – NOTES PAYABLE
Notes payable are secured by the property (unless otherwise noted) and are summarized as follows:
2013
248 Redwood House
Wells Fargo Bank loan, in the original amount of $360,000
bears interest of 7.25% per annum and requires a monthly
payment of $3,287. The loan is to be repaid in full by February
15, 2022. Interest expense was $19,189 and $20,600 in 2013
and 2012, respectively.
$
253,563
2012
$
273,810
San Mateo County, in the original amount of $30,000, bears
simple interest of 3% per annum, and no payment required
until April 2034 when the loan matures. Interest expense was
$1,163 and $1,128 in 2013 and 2012, respectively.
39,384
38,221
230 Redwood Avenue
Wells Fargo Bank loan, in the original amount of $159,000,
bears interest of 6.75% per annum and requires a monthly
payment of $1,044. The loan is to be repaid in full by
September 15, 2017. Interest expense was $10,259 and
$10,692 in 2013 and 2012, respectively.
148,641
150,914
Wells Fargo Bank loan, in the original amount of $189,000
bears interest of 6.75% per annum and requires a monthly
payment of $1,241. The loan is to be repaid in full by
September 15, 2017. Interest expense was $12,194 and
$12,710 in 2013 and 2012, respectively.
176,687
179,389
Wells Fargo Bank loan, in the original amount of $162,000,
bears interest of 6.75% per annum and requires a monthly
payment of $1,064. The loan is to be repaid in full by
September 15, 2017. Interest expense was $10,452 and
$16,240 in 2013 and 2012, respectively.
151,446
153,762
124,792
133,896
Vehicles
Various vehicles used for the programs bear interest ranging
from 0% to 4.99% and total monthly payments of $3,621. The
loans are to be repaid in full with maturity dates ranging from
2013 through 2017
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CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 5 – NOTES PAYABLE (Continued)
Hawthorne House
San Mateo County loan, in the original amount of $275,000,
non-interest bearing and matures on May 19, 2022. No
payments are to be made during the term of the loan. Upon
maturity of the note or due to acceleration of the note upon
sale or default, any proceeds from the payment of the note
shall be disbursed to the County according to its beneficial
interest in the property.
$
275,000
$
275,000
San Mateo County loan, in the original amount of $125,000,
non-interest bearing and matures on May 19, 2022. No
payments are to be made during the term of the loan. Upon
maturity of the note or due to acceleration of the note upon
sale or default, any proceeds from the payment of the note
shall be disbursed to the County according to its beneficial
interest in the property.
125,000
125,000
San Mateo County loan, in the original amount of $90,000,
non-interest bearing and matures on March 27, 2022. No
payments are to be made during the term of the loan. Upon
maturity of the note or due to acceleration of the note upon
sale or default, any proceeds from the payment of the note
shall be disbursed to the County according to its beneficial
interest in the property.
90,000
90,000
San Mateo County loan, in the original amount of $15,288,
non-interest bearing and matures on March 27, 2022. No
payments are to be made during the term of the loan. Upon
maturity of the note or due to acceleration of the note upon
sale or default, any proceeds from the payment of the note
shall be disbursed to the County according to its beneficial
interest in the property.
15,288
15,288
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CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 6 – RESTRICTED NET ASSETS
Restricted net assets consisted of the following at June 30:
2012
2013
Purpose restricted:
YAIL Program
Supported Housing
Jobs Plus Program
Medication Clinic
Total purpose restricted
$
$
12,486
16,850
10,000
20,000
59,336
$
$
12,700
20,870
33,570
NOTE 7 – IN-KIND CONTRIBUTIONS
In-kind contributions consisted of the following as of June 30:
2013
Food commodities from government agencies
Food donated by Second Harvest Food Bank
Donated use of facilities
Donated auction items for special event
Donated food and beverages for special event
$
$
70,427
229,181
144,255
26,250
470,113
2012
$
$
47,258
167,110
10,000
1,300
225,668
NOTE 8 - OPERATING LEASES
The organization entered into a 5 year master lease of a 38 unit apartment building located in San Mateo
County which commenced October 1, 2011, with two five year renewal options. The base monthly rent at
commencement was $28,333. Increases in the base rent are scheduled to occur every two years, and shall
be the greater of: a) the fair market rental value (“FMRV”) of the premises, not to exceed three (3%) of
the then applicable base rent, or b) three hundred and forty thousand dollars ($340,000) per year. The
Organization leases the individual apartment units to program clients and other low income individuals
under month to month leases.
Caminar leases office facilities in counties which it operates, and has leases for various office equipment.
Rent expenses inclusive of the aforementioned master lease in 2013 and 2012 were $723,400 and
$651,779, respectively. Future minimum lease payments are estimated as follows:
2014
2015
2016
2017
2018
Thereafter
$826,365
814,785
816,812
482,391
400,380
2,177,017
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CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 8 - OPERATING LEASES (Continued)
In addition, Caminar has monthly leases and guarantees lease payments in connection with its Satellite
Housing programs. Under these programs, Caminar either leases the apartments directly or guarantees
the rental of leases undertaken by the participants. Caminar receives full reimbursement for these rentals
from the participants and/or from various government and private supportive housing programs. Most
leases are on a month-to-month basis. Total rents paid for and collected from clients before such
participant reimbursements were approximately as follows:
Amount collected
$
642,107
Amount paid
$
951,894
Caminar also leases three vehicles for administrative and program purposes. The expenses in fiscal year
2013 and 2012 were $8,672 and $6,553, respectively, and the future minimum lease payments are
estimated as follows:
2014
2015
2016
2017
$
13,294
9,753
7,638
284
$
30,969
NOTE 9 - EMPLOYEE BENEFIT PLANS
Caminar sponsors a 401(k) plan (the Plan) covering eligible employees after one year of service.
Employees are vested as to employer contributions and earnings thereon after two additional years of
service. Caminar contributes 25% of the participants' contributions to the Plan on the first 6% of their
salary. Additional discretionary amounts may be contributed on an annual basis. For the years ended
June 30, 2013 and June 30, 2012 Caminar did not contribute additional discretionary amounts to the Plan.
Caminar also sponsors a 403(b) plan which is a voluntary employee contributions only plan.
Caminar was the plan administrator, and owner, of a 457(b) Top Hat deferred compensation group of
management or highly compensated employees. All contributions, which were equal to the amounts by
which the participants had reduced their compensations pursuant to the Salary Reduction Agreements of
the participants, have been made by Caminar. The participants were 100% vested in the balances of the
participants' accounts attributable to elective deferrals. The value of the 457(b) plan assets was $78,808
as of June 30, 2012. All of the plan assets were distributed during the year to the related participants.
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CAMINAR
NOTES TO FINANCIAL STATEMENTS
NOTE 10 – INVESTMENT IN PARTNERSHIP AND RELATED PARTY TRANSACTIONS
The organization is a .005% co-general partner in Laurel Garden Partners, a California Limited
Partnership. The investment is accounted for under the equity method. The Organizations capital account
as of December 31, 2012 and 2011 was $(2,326) and $(2,327) respectively. Laurel Garden is required to
pay Caminar an annual social services fee of $5,000. The social service fee was $5,000 for both 2013 and
2012. In addition, Laurel Garden incurred social service program costs of $15,043and $17,963 in 2013
and 2012, respectively. All social service program costs are paid by Caminar on behalf of Laurel Garden
and subsequently reimbursed by Laurel Garden to Caminar.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Forgivable Loans
In connection with Eucalyptus House located in San Mateo, California, Caminar executed a promissory
note in the original amount of $175,000 in favor of San Mateo County. The note is non-interest bearing
and matures on July 22, 2016. Of the total $175,000, $50,000 has been repaid and the remaining balance
will be forgiven by July 22, 2016 if the agreement is not in default.
In connection with Avenidas Gardens located in Chico, California, Caminar executed a promissory note
in the original amount of $144,000 in favor of Tri-Counties Bank for the construction of Avenidas. The
note is non-interest bearing and the principal shall be forgiven 15 years after the issuance of a certification
of occupancy in December 2022.
In connection with Avenidas Gardens (Housing Project) located in Chico, California, Caminar executed a
promissory note in the original amount of $250,000 in favor of the City of Chico for the construction of
Avenidas. The note bears 3% simple interest and matures on October 30, 2035. Payments of interest and
principal shall be deferred until Caminar sells, refinances or transfers the Housing Project. If Caminar is
in full compliance with the conditions set forth in the loan agreement, Caminar will have no obligation to
repay any accrued and unpaid interest in October 2024. In addition, the principal balance will be forgiven
and the loan shall become a grant in October 2025.
In connection with Avenidas Gardens (housing Project) located in Chico, California, Caminar executed a
promissory note in the original amount of $555,000 in favor of the City of Chico Redevelopment Agency
for the construction of Avenidas. The note bears 5% simple interest from August 2007 through August
2032, and matures on June 14, 2062. The note requires annual payments of $8,500 payable to the extent
of 75% of the annual available residual receipts, as defined in the loan agreement. The payments will be
applied towards outstanding interest during the first 25 years. If the residual receipts are insufficient to
make the annual interest payment, the unpaid interest shall be deferred. Any accrued and unpaid interest
will be forgiven between 2033 and 2043 at the rate of 10% per year. Effective in 2033, the annual
payment shall be applied towards the outstanding principal.
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CAMINAR
NOTES TO FINANCIAL STATEMENTS
Forgivable Loans(Continued)
If Caminar is in full compliance with the conditions set forth in the loan agreement, the remaining
principal balance will be forgiven and the loan shall become a grant in August 2062. If the Housing
Project is sold, refinanced or otherwise transferred prior to the end of the term of the loan agreement, all
principal and interest outstanding then shall be due and payable in full. It is management's intent to
comply with these restrictions throughout the term of the
loan, and management estimated that the Housing Project will not generate any residual receipts in the
future, and accordingly, recognized the loan and accrued interest as revenue.
Other Commitments
Caminar owns a small house that contains asbestos. Caminar has no plans to renovate or demolish the
home at this time. Caminar is not aware of any need for major renovations caused by operation or other
factors. Caminar has concluded that it does not have the information needed to estimate the cost to
remove the asbestos and consequently cannot reasonably estimate the fair value of the liability.
Caminar administers programs which uses funds from various federal, state and local agencies and are
subject to financial and compliance review by the grantors. Accordingly, Caminar's compliance with
applicable grant requirements will be determined at some future date. Expenditures, if any, which may be
disallowed by the granting agencies, cannot be determined at this time. Caminar does not expect that
disallowed expenditures, if any, will materially affect the financial statements.
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