Please answer the questions in the questions document below and put the answers in the template posted below. If some of the answers that are already in the template are incorrect please correct them.

12-4. Single Audit. Quad-States Community Service Agency expended federal awards during the most recent fiscal year in the following amounts for the programs shown: Program 1 $5,789,000 Program 6 $389,000 Program 2 350,000 Program 7 191,000 Program 3 1,069,000 Program 8 94,000 Program 4 5,963,000 Program 9 726,000 Program 5 212,000 Program 10 434,000 Additional information indicates that Programs 4 and 10 were audited as major programs in each of the two preceding fiscal years, with no audit findings reported. Required a. Which programs would be considered Type A programs and why? Type B programs? 526527 b. Based on the information provided, which programs would you select for audit and why? c. If you found out that a new manager with no previous experience was now in charge of Program 4, would your answer to part b change? If so how? 14-2. Classification of Revenues/Support and Expenses. For each of the independent transactions listed in the left-hand column below, indicate which of the revenue/support or expense classifications apply by choosing one or more of the letters from the listed items in the right-hand column. Choose all that apply. 14-8 Prepare Financial Statements. The Children's Counseling Center was incorporated as a not-for-profit voluntary health and welfare organization 10 years ago. Its adjusted trial balance as of June 30, 2011, follows. 1. Salaries and fringe benefits were allocated to program services and supporting services in the following percentages: counseling services, 40%; professional training, 15%; community service, 10%; management and general, 25%; and fund-raising, 10%. Occupancy and utility, supplies, printing and publishing, and telephone and postage expense were allocated to the programs in the same manner as salaries and fringe benefits. Depreciation expense was divided equally among all five functional expense categories. Unrealized loss on investments was charged to the management and general function. 627628 2. The organization had $153,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $310,800 that was unrestricted and $48,100 that was restricted for the purchase of equipment for the center. It had $9,200 of income earned and received on long-term investments. The center spent cash of $286,410 on salaries and fringe benefits, $22,000 on the purchase of equipment for the center, and $86,504 for operating expenses. Other pertinent information follows: net pledges receivable increased $6,000, inventory increased $1,000, accounts payable decreased $102,594, and there were no salaries payable at the beginning of the year. Required a. Prepare a statement of financial position as of June 30, 2011, following the format in Illustration 14-7. b. Prepare a statement of functional expenses for the year ended June 30, 2011, following the format in Illustration 14-10. c. Prepare a statement of activities for the year ended June 30, 2011, following the format in Illustration 14-8. d. Prepare a statement of cash flows for the year ended June 30, 2011, following the format in Illustration 14-9. a b c For each of the independent transactions listed in the left-hand column below, indicate which of the revenue/support or expense classifications apply by checking the appropriate box in the columns to the right. Check all that apply to each transaction. 1 A museum gift shop sold print of famous paintings. 2 A NPO incurred a cost for its annual financial statement audit. 3 A registered nurse volunteered 10 hours a week or a local agency for disabled persons. 4 A donor contributed $1 million to a not-for-profit hospital for a new clinic. 5 An art association hosted a $100-perr-plate dinner attended by members, donors, and potential donors. 6 A donor contributed securities valued at $10 million to be permanently invested. Earnings thereon are stipulated by the donor to be used for eye research. 7 8 An NPO job training center incurred payroll expenses of $500,000 for instructors and mechanics and $100,000 for the center director and clerical staff. Of this amount, $400,000 was spent from temporarily restricted federal and state grants. The Older Adult Transportation Service received $8,000 from riders for the year and $52,000 from temporarily restricted grant sources. Exchange Revenue Unrestricted Support Temporarily Restricted Support a b c Permanently Released from Restricted Restrictions Support d e Program Services Expense Management and General Expense Fund-raising Expense f g h CHILDREN'S COUNSELING CENTER STATEMENT OF FINANCIAL POSITION 6/30/2011 ASSETS CASH PLEDGES RECEIVABLE ($41,000 less uncollectible pledges of $4,100) INVENTORY INVESTMENTS (at fair value) $ 126,500 $ $ 4,100 2,800 FURNITURE AND EQUIPMENT, ($210,000 net of Accumulated Depreciation of $160,000) TOTAL ASSETS 394,200 OUNSELING CENTER FINANCIAL POSITION 30/2011 LIABILITIES AND NET ASSETS ACCOUNTS PAYABLE $ 13,520 NET ASSETS: UNRESTRICTED TEMPORARILY RESTRICTED PERMANENTLY RESTRICTED $ $ $ 196,500 50,500 100,000 TOTAL NET ASSETS 380,680 Total assets - liabilities TOTAL LIABILITIES AND NET ASSETS 394,200 CHILDREN'S COUNSELING C STATEMENT OF FUNCTIONAL E YEAR ENDED JUNE 30, 2 PROGRAM SERVICES Counseling Services Professional Training SALARIES AND FRINGES OCCUPANCY AND UTILITY SUPPLIES PRINTING AND PUBLISHING TELEPHONE AND POSTAGE UNREALIZED LOSS DEPRECIATION TOTAL EXPENSES $ 139,976 $ 55,116 HILDREN'S COUNSELING CENTER EMENT OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30, 2011 ROGRAM SERVICES SUPPORTING SERVICES Community Services $ Mgmt and General TOTAL 38,144 $ $ $ $ $ $ $ $ 233,236 $ Fund-Raising 91,060 $ 38,144 TOTAL $ $ $ $ $ $ $ $ 129,204 VICES GRAND TOTAL $ $ $ $ $ $ $ $ 362,440 CHILDREN'S COUNSELING CENTER STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2011 Unrestricted Revenues gains, and other support: Contributions Investment income Temporarily restricted net assets released from restrictions Total revenues, gains, and other support Expenses and losses: Program services: Counseling services Professional training Community service Total program expenses Support expenses: Management and general Fund-raising Total support expenses Total expenses and losses Change in net assets Net assets, July 1, 2010 Net assets, June 30, 2011 Temporarily Restricted ENTER ES 11 Permanently Restricted Total 2011 396,120 233,236 129,204 362,440 also equals grand total expneses part b 380,680 also equals total net assets part a CHILDREN'S COUNSELING CENTER STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2011 CASH FLOWS FROM OPERATING ACTIVITIES: CASH RECEIVED FROM CONTRIBUTORS CASH RECEIVED AS INVESTMENT INCOME CASH PAID TO EMPLOYEES CASH PAID FOR OPERATING EXPENSES NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: PURCHASE OF FURNITURE AND EQUIPMENT CASH FLOWS FROM FINANCING ACTIVITIES: PROCEEDS FROM CONTRIBUTIONS RESTRICTED FOR: INVESTMENT IN CAPITAL ASSETS NET INCREASE IN CASH CASH, JULY 1, 2010 CASH, JUNE 30, 2011 RECONCILIATION OF CHANGES IN NET ASSETS TO NET CASH USED FOR OPERATING ACTIVITIES: CHANGE IN NET ASSETS ADJUSTMENTS TO RECONCILE CHANGE IN NET ASSETS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: DEPRECIATION UNREALIZED LOSS ON INVESTMENTS INCREASE IN NET PLEDGES RECEIVABLE INCREASE IN INVENTORY DECREASE IN ACCOUNTS PAYABLE CASH PROVIDED BY OPERATING ACTIVITIES $ $ 9,200 286,410 $ (52,914) $ 210,000 $ 48,100 $ (26,814) (26,814) $ 126,500 126,500 hint: this is also cash on the statement of financial position, part a $ 33,680 $ $ 21,000 2,000 $ (52,914) (52,914) 33,680 (52,914) sition, part a