Loading...
HomeMy WebLinkAboutCOM 0122.033 2000-2002 •L~t Stephen K Yamaah~ro - - - Hacry A. Taiahaalu Mavor ~ Dtmtor ~.a~.--- COUNTY O~ ii~klKi4l`I DEPARTII~NT OF FINANCE 25 Aupum SeMt Raam I I8 Hilo. Havm~ %720-4252 (806) %I$2.M • Fu (806) %1-82A8 HAWAII COUNTY NONPROFIT GRANTS (FY 2001-02) HUMAN SERVICES NONPROFTf GRANTS REVIEW COivII~IITTEE FISCAL YEAR ENDING. Jtme 30, 2002 DATE OF APPLICATION• ,Try ~t . 7rNtt GRANT APPLICATION FOR Kona Krafts DGmiciliarv Horne tt+r.p.. nwt Legal Name of Organvsuon: Kona Association for Retarded Citizens dba Kona Krafts Matlmg Address. P.O. 13ox 127, Kealakekua, HI 96750 Factltty/StteAddress: 81-1065 tfonawaena School Road, Keaiakekua• HI 96750 Director/SiteMatugc Ursula D'Angelo Organvsuon Prdtdmt: Georaine Busch Contact Person (Grant Wntc): Ursula D' Angelo Amount of Request for County Fuada: S X5.670.00 Total Annual Budges of Orgeruzanos S 1,164, 839.00 Has the applicant applied for any other fimda from the Couttty of Flawau thu fiscal yerta-r?1 ? Yd SourcdDapn"tmmt: GO ~ No Aiwry/Prognm(a): ? Soaal S4swcea ? Youth Pmgtsatu.• ? Elderly Programs Check Categonea: ? Culture end Arta ? Education ©Other nieahit ity canr+nrr Bri , de~e the program for which tonding is baiatg rpnee6ed: Revenue t0 9UtrDOrt the Only ReBidential t]emiri 1 i arv Frrwr Fart 7 i *x i n Lle.n ua...~ i far inAi~~d. t whn a A~ ~ ~ r t7~ A~e1111e1fs O~ilfiiii~'+:ii~.+:. /,2.33 ' mm. 0. File No. 3 v D -1- Ref. To: Pry f!-S E D L Yei Dlm I. 4UALIFYING STANDARDS FOR APPLICANTS An applicant must meex all of the following starulards LJ He chartered or otherwise authonzed to do busman m the Stare for cbantable purposes and exempted from the federal income ru by the Infernal Revenue Service Have a govcrotpg board whose members nerve without compeaunon and have no conflret of interest between their regular oecupauooa and the services provided Have bylaws of poireres which dearnbe the manna in which buamps is wadueted, uicludipg management, audit, focal pohcia and procedures, pohcia on nepotism, and pohaes on maoag~eat of potentul conflict of mterat Have at least one year's es:penepce with the sauce or activity for which the appropnanon u sought or can otherwise deanopatraee to the saoafieaop of the Couary su~cseat expatiae to wccaafuuy carry we the service or activity Be Lcensed and accredited m accordance with apphable regwtements of Federal, Sate and County 4wa II. GRANT CONDITIONS The applicant agree to comply with the followtrig lama and condiuoeta pnor to receiving a geapt award. A. Comply with apphabk Fealenl and State lays pivhtbitipg diaerimmapeop sprint any pawn on the bats of race, color. naaepal onp0. religrop, creed, sat, age, or haodseap. B Agree not to use spy publu funds for purpose of entettammatt or peegweita. C Comply with such other rngitu+emepis ss the Duector of Furnace may pneaaibe ro etunue adbereoce by the nonprofit orpatutanon with Federal. State. and Camry laws. sad atabhahed standards for foal and Propw ~ D Allow the Duroctor of Fiawee, the wmmittea of the council and their staffi, and the i,egukpve Audpor stew a rxada, reports, filoa, and other rekted dtieumapta m order that the prepam, maofgamat. and foal peacttcea of the popproRt orpawtton spay be momooeed and evahured to wore the proper snd effaenve atpapdroue of public funds. III. RECORDS AND RE?ORTS A The applicnt shall follow geasilly aeeepsed aeeoupppg procedure sad praenca and shall mameup boob. records. docummo and other evtdmce which sttR9~iaady and propaiy asaorpu for the mtpapditure of Counyy fimda. The bode, records and doammu shall be aub]ect a< all raaaooabk rims m uapearon, revisers, a atdtp by the Cotmty mtpsodmg apuey, the Diroemr of Fipaeee, aed the I.agtaktrve Auditor. or by thaQ tepseeaaamvea. B. the Counyy eapmdmg agency, Dpecror of Fuupee, err County Cwaed spay regiteu peatodte wnttm reporo op the rue of Comry [finds. C. The poppto5t cegsetapop dull wbmtt a $>ut wrtpm report to the L.agulimve Auditor wuhm entry (60) days allot ]um 30 of the Baal year. The report shall include w e~iaeaooa of the pabhe bmafita destved from the aerardies of the grace, a tirtmg of other Smdmg apueeaa and +wpwu obrad dining the perm P~4 and a aaplate aoooomnog of all mepodtaua supponad by Cotaty of Ilawati pmt finds {pa Chants 2, Amok 23, Seenm 2-142(d), Haavu County Code, amaedad Aunt, 1999}. -2. 4UA,RTERL,Y ALLOCATION Under no ctrtwnstaaces shall grout funds be dubuned m a lump sum payment Grant funds wall be dubutsed to Grantees only through a quarterly allocauon process The dtabunement of greet funds can be formulated oa an equal quarterly appoRtonmen[ bssu V. GRIEVANCE PROCEDURE The appltcsot wtll adopt and mamraut a gnevaace ptrocedtue to assure proper accomtmg far any concern and complamu about to program or services that may arise from to tnemben, employees, chenn or from other members of the public VI. DISCLOSURE OF INFORMATION All mfotmatton, dab or other maternal provided to the Comry by virtue of this ttppltanon shall be subiect to the Uniform Infamanon Prscncas Act (UTPA), Chapter 92F, Hawatt Revuad SttUttta. AA such materul is damad govemmmt record and shall be open to the public and may be provided m other publrc and/or pnvate fuadmg sotttces VII. CON'T'INUED ELIGIBILITY Any applicant or raelpimt who wlthhahb or omlb nay mabrLl f~eb or daiiMnWy mYnpresasb sneh faeb to the Cooary of Hawali shall: (1) Immadntaly be dtsquaitfied from constdaraaon for Naopofit Grant fuodtng, OR (2) be m vtoWton of the tarns of the Gtmt Agroamant of Comry fmda m whtc6 case a iR~ agreement as be terminated by the County and the [nctptant or provider may be (table to ntmbuae all or a poroon of any funds tecetved therein VIII. ACI~IOWLEDGEMENT Kona Association for Retarded CitiZeps (Legal Name of Or4waaon) hercbyagreatoadmtnnterthe Captain Cook Group Home (Program Ttde) to accordance wrath the ragulanoma, pohcta and procedure praenbed by the Hswau County Ftrunee Deparemant Dutnbunon of gent foods u Irmttad m gnotees which are m compliance wtt6 Comfy tqulattoas, pohcta and procedures. The County teaervas the nght to withhold grant dutrtbmooa at nay time the gnnsee u not in compliance It u the pobey of the County of Hswau a~ for those who do bttsmeu vnth the County to provide equal employm®t oppotamtaas m all penoas regardless of nee. physical dnabdttta. color. teltg?oo, se:. age. or nanonal ongm m mandaaad by the Fedanl Civil Rtghb Acts, as amended, and stay other fedaal or state laws relining to atpul employment apportuntna. I7C. AMENDi1~NTS TO THE ArlLICATION/EVALUATION Tae spphaot srattres that tt will subtmt to the Human Setvtas Nonprofit Gttmn Review Cammttsee (HSNPCiRC) for pnor revtesv and approval a wntsan squat and pnnfianon for eny chaogm, addinooa, or delenaos to soy pornoa(s) of the gnat appheaaoa or a duly execttted Grsmt Apeement of Cauaty Ftmds. The applicant will cooperate and assist in any effort tmdetblom by the HSNPCrRC m evaittate, respect or othmsvue memmr the effeenvaaas, feaatbthry, aodlar cat e~ctmey of mY and all pracncm, poliesm and paa~oadmas or atnvtttd pursuant m this apphranoa or nay grant destgoaaon or alloeanen remved m a remit of this appltcanea. -3- X. AUTHORITY AND CAPACITY OF APPLICANT The apphcsnt cetnfiea that [t has the authority and capectty to develop and subm,t [h,s apphcauon, and [o fully ad,a,n,ster [he ptogntn(s) punuanc to thu appl[cauon UNSIGNED PROPOSALS WII.L NOT BE ACCEPTED! i~ ~~-a-~~c.r~ / fZ J~G ~ S,gnature of tdenUChattpetaon Date ~~Z~i~G/ 5 of Executive DueetodMaoaaes Date -4= ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 PRO(irRAM/t3ER~?ICE DSBCR>pTIOIY A. Overview: 1) Describe the pro`ram for which ihadin~ is beia~ rognested. Kona Krafts is an accredited, non-profit organization xrnng mdtviduals with developmental disabilities/mental retardation The agency's purpox is to asatst persons with disabilities to live as independently as possible to their own communities All the programs at Kona Krafts are designed to promote stalls acquisition and provide positive behavioral supports so that the individual may be better understood and accepted into his or her community The intentron behind progiam designs and supports is that all people, regardless of ability, demonstrate better xlf-esteem and satisfactron if they aze able to work; that work is meaningful it means that they can live as independently as posatble In addition to helping individuals attain their personal goals, the agency has proactive educatronal goals to educate the public about how persons Itmited by disability can strll lead a productive life and contribute to society in meaningful ways Specifically, the Domiciliary Home/residential program managed by Kona Krafts, will ux the revenue generated from this grant to pay staff costs Cor two certrfied cazegivers (total of 1 3 FTE's) Thex cazegtvers work directly with the residents to provide support in the home located in Captain Cook and while on outings to the community Thin grant support is necessary to keep the home open on weekends and to enable residents to pursue activities of their choice individually, without the need to have all restdents prexnt at the activity For instance, unless there is adequate staffing available actrvities such as a needed medical appointment or trips to the store must involve everyone so supernston is guaranteed The resources from the County mean that the ratio of staff to resident can be reduced Thts means that individuals are able to keep their own appointments privately and that indtvtdual chotce can be increaxd while providing the necessary supernsion in the home at all times. Other revenue provided by HUD, SSA and SSI is uxd to cover room and board, and one full trine caregiver but does not cover the costs of providing adequate staffing The Haweu Administrative Code outlines strict and rigorous requirements for operation, which are not possible without the support and revenue from the County Z? What nayne or si~nitlant eervlce will be provided? The xrnce to be provided to the five individuals with Developmental Disabilities and some level of Mental Retardation is primarily supervision. Although residents of the home are capable of many activities, they cannot be left without supernston Each resident is enrolled in a Dey Program, which provides assistance and framing in specific goals, with emphasis on life stalls development and some academics. The stab at the Domiciliary Home work closely with the Day Program staff to ensure consistency in overall program goals such as improving stalls in money and time management, hygiene, xlf-care, home management and health and safety Emphasis is placed on providing a supportive home-like environment, which contributes to a higher quality of life for restdents 3) What epeeiHc oatcomee aro to be achieved? Specific outcomes are measured with respect to efficiency of the orgaritzation, effectiveness of the program and satisfaction indicated by partrapanta. 1 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 ElYieieac~: A healthy and safe environment will be maintained for 24 hours a day, 365 days a year for five residents with developmental disabihties or mental retardation To support this, meals and transportation will be provided conforming to the specificaaons oucltned in Chapter 89 of the Hawazt Administrative Code ESictiwaew: Progress or completion of a minimum of one goal, as outlined in the individual's persona] plan, wall be measured. This will be accomplished by quarterly and annual reviews of the individual's program. 9atietaetloa: individuals and their families will be asked about their level oC satisfaction with the care and assistance provided them in the home a minimum of one time per month Ultimately, the combination of thex outcomes will provide the individual residents with greater independence and self-respect, improved xlf-esteem and the opportunity for their families to be free of the constant aupernsion and care that is required of then adult dependent. Not only does this allow families to be mare productive members of society, it also allevtates concerns they may have about what wtU happen to their family when they are unable to care for them 4) How will the proposed proRam empower participant/clients to become selfsui8eient sad faoilitte positive eooial ehaa~e? All human beings thrive m an environment free of~udgment and thrrat. The supportive environment created by staff, allows restdents to consider talang new risks, learning new skills and enjoy lowered azvnety about daily living tasks. The residential home and Kona Kraft's programs in general, support individuals to the best of their abihty, which in turn encourages the desire to work, volunteer and otherwtx contribute to the community. Individuals, who interact vnth persona from this population, soon learn to value them as people and not someone wha is lttnited by their disabihaes. This increased understanding and tolerance yields more compassion, which decreases the need to isolate and institutionahu persons with developmental disabihties firm our society S. Problem/Peed: 1) What i. the problem/aced the propowd program i• designed to meat? Persons limited by their disabihaea have tradmonally been limited by society from fully participating in many activities that non-disabled people enjoy such as work, transportation, play and the ability to enjoy the company of faintly and tnends, according to their needs. Data from the 1990 census shown that Hawau County ie home to 11% oC the State's population, therefore by extrapolating the numbers of people with disabihty living on this island, it means that over 24,000 individuals and their faintly members are affected by the need for aaaistance m [his area. Their exclusion from pemcipatmg fully in life harbors a huge coat to our society Specific needs for persons with developmental disabilities or mental retardation stem from difficulties experienced with exeroiamg~udgment. Therefore, to ensure the health and safety of thex individuals, a caregiver must always be prexnt to supernx daily living activities. If that caregiver is a family member, they must devote the malonty of their time to caring for the individual. Ttua, m turn, limits the caregiver's paraeipauon in society in both work and leisure activities The program is designed to fill that role, freeing both the individual and the sole caregiver, and providing them the opportunity to participate productively for the benefit of the community. 2 ASSOCIATION FOR RETARDED CITIZENS dba KONA [{RAF"CS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 2) Who is the tar`et population aad what are the specific seeds? Individuals with a developmental disability, a condition that manifests before the age of nineteen unth no expectation of improvement in the conditron, art those targeted for this sernce Some residents are also mentally retarded These conditions (lunttatrons) prevent them from leamtng baste Ltfe slaps or from retazning that knowledge Specifically, they need support in a variety of life slaps actrvities including, appropnate use of leisure time, socializatron, home management dills, and health and safety shills. The need to mazntam and ensure safety is pi-tmary for this populatron due to the lack of~udgment in the areas described 3) What i• the gsop~aphical asaa~s) to bs served, and hours of opesatioa? The Kona Kraft's Domiciliazy or Resident Home is located in Captazn Cook The home generally serves families and individuals living in West Hawau but is open to applicats throughout the State The facility houses five persons referred for placement by the Department of Health, Developmental Disabihtres Division The Home is licensed by the Hospital and Factlitres Divtsion of the Department of Human SeivicesJState of Hawazi The Home operates for eighteen hours dazly, Monday through Friday (the other sue hours restdents attend a day program) and twenty-four hours a day on the weekends [f any of the restdents are sick, cannot attend day program for some other purpose or need to go to medical/dental visits, the weekday hours must be expanded to accommodate than supernsion , C. Collaboeatioa/Coordlaation: 1) What specific measara will be talaa to collaborate/coosdiaate with other commuait7 naaurcea to anhfaw masimum peo{ram et:lcisnop aad coat ellectiveaeaa? Kona Kraus collaborates with a variety of Human Sernce and related agencies throughout Hawazi County, the State and nationally to constantly improve program efficiency and identify areas oC cost effectiveness. A sample list highlights County collaborative efforts only ? State Department of Health, Developmental Disabihtres Division (DDD) Thts agency acts as our refeiTal source for all aspects of progiam management; they provide budgets for sernces, case managers to approve and monitor our sernces and consultatron sernces. ? Kona Krafts remains actrve on the West Hawau Committee for the Council on Developmental Disabilitres to remain current on legtalatrve issues and to stay connected with appropnate sernces. ? Kona Krafts works collaboratively with the Brantley Center in Honokaa and the Htlo ARC Admmtstiative staff share expertrse in progremdelivery and work together to design new programs and sernces m the delivery of the Medicaid Home and Community Based Programs. ? Many consumers participate in Special Olympics. Sports activitres, not only benefit consumers' health, but also [heir well-being through providing added variety in their schedules, increased socializaion and improved self-esteem as a result of their many accomplishments. ? The Department of Educatron has supported individual training goals by providing instructors m American Sign-[.anguage and presentations on health and safety issues 3 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAETS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 ? The Public Nursing office is utilized to provide advice and support on medical issues that do not require additional staff tune to transport consumers to the physicians' offices ? University of the Nations regularly schedules students to come assist consumers in their program goals as well as provide social strmulation for program participants who are lunited in their mobility and cannot attend as many community excursions ? The Society for Kona's Education and Art has funded Kona Krafts to provide instruction in the arts Not only are these classes enjoyable, but they help consumers develop fine motor skills while achievmg a sense of accomplishment [hrough gaming new shills ? Full Lde Corporatron is a pnvate agency that delivers programs and sernces similar to chose provided at Kona Krafts. The Executive Directors of both agencies shah expertise that result in additional program benefits to consumers. ? The consumer plan manager is active in two other non-profit agencies. She maintains a network of relatronehips in which opportunities for educating the public about persons with disabilities is pursued 2) How will those measures reduce o: eliminate say exietiag duplication of wrvicee to your designate target group? The agency actively interfaces with collateral agencies to maximize the benefits associated with setvues provided to the consumer and that minunizes expenditures both financially and energetically This collaboratron allows collectrve problem solving, taps into local talents and resources for training and socialization and more efficiently identrFies opportunities through the networks that have been built and maintained D. l3oala sad Obiectivee: Isee the chart on the followhns oriel 1) What are the ms~os goals/beachmarb of the proposed program? 2) What specific objectives/aatioa steps are phuoaed for each `oil? 3) What is the timeline (start sad cad dabs) for each action asap? 4) What sigaiflcant client-centsred outcome(s) will the program achbvel How will at lesat one psrsowil program outcoms ba measnnd or how will measaable prognes towards program goal be shown? 4 y Y y O y V~ C E Y j~ Y O t Y Y G t Y Y Y N Y Y N O L Y O L E Y W y - t W OD 5~ y u c N v e u j _Y E y o u t' E Y O C L ~ W W Y H W Y 0 9 'O m y 9 m C 6 G C C d yy Y C J] u L L ~ J G~ F j - O ~.R- h W Y Y W tE O V v W Y Ny ~ V E Y C R W v L T q W 0 3 3 3 F j y ~ j~ o' N R v c ~ c v c~ c? c ~4 ~ E ~ y Y L u W u Y u u 3 v 'p E G L C Z_ Y Z- y {p T W ~ t~ G v C~ ~ R j ~ O E L R Y r u ~ c `e o ~ u> L Y = u> Z u > E c v L d v L ie L L C y LL N q ~ N m 8 ~ C L i~ TJ N eC^ O C 7 C fC y C ~ h C C ^ N N u g C C C y A y C L^ - ` N O d ^ 9 Y W O ~ N G O u o `O Y~ g yn C 5Qppq~ Y T v Z ~ > N y Y y N u % W = Tp ~N ~ j~ ~ o d o A Try .`EE c Eg C Y o f L^ 4 0 ~ ` N 00 ~ ~ T r~ . c yyj ~ ~ ~ ~ o u m c N 'm eo ~ OG d C v Y 00 Y O ~ C C v g C C > s u~ < m ,^c, v ~ a,C mrvpQrv Np mE F= W co ~ L'c Y 3 Wio `oN Y°LN O G 7 OU T O C H v C y L 97 C Y= G pWpO W v ~ ~ ~ L C Y L~ W~ Y~ W L O vi d 00 C LL CY C ~ ~'L U.Q W ~ V Y ~ c ~ m ti ~.-c g E ~`o ~ `c d o m e c p E Y ~'E m vtR~~LO acEEW~o=~mc ~ yy ~ m e c x o u ~ 2 `oa . 9 g E o~ m ~ c ~ a H ~ a E ~ c c i c a c ~ °u e~ A a ie u `o E ~ ~ 0 0 4 H v~ W r= ~ L m e E~$' j u u w Y p Y C = ~ _ W C L E u~ W L c u O 7 L W~ a ~ m E~ a~ N O N 00 ~ U _ C v y ~ W Y Y . _Y Y W E .E a L 1O u t u E ~ n O ~ c G W Y 'N m ~ N? C W N ~ OG W J u` ` C E u ~ ~ u> Y u t > N C Y C C C c W O W O _ y_ V Y N~ y' N Y4•Y H H m L ~ aY y Y 9 < Q C C N C m ~'1 6 0 ASSOCIATION FOR RETARDED C[T[ZENS dba KONA KRAFTS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 E. Service Dellverv 1? What methodology9 wffl be used is the proposed prosram's delivery of service(s?7 The principle methodology utilized in this program is the provision of a safe and comfortable, family-type environment From that baste, a formal structure is developed, revised and maintained Thts is how it works Five residents {the limit of five is based on State Hawazi regulations) share a common space where individual ivoms are provided for privacy and sleeping. A home-like environment is mazntazned with all the accommodations, artwork on the walls, furniture, entertaznment centers, decorations during the holidays and home-cooked meals on a daily basis To achieve this, Kona Krafts provides twenty-four hour care and supervision Residents live with one staff person Monday through Friday and another on the weekends Each day starts at approximately 6 00-6 30 a m with a routine that includes a hearty breakfast At approximately 7 30 a m ,residents are transported to the Kona Ktafts facility where a variety of activities are undertaken from 8 00 a m to 2 p.m. Whatever the activity, work or skill development is, all activities are designed to increase independence, improve self-esteem, and to provide support in the health and safety in the lives of the residents Upon leaving the day-time activities, residents prepare for Special Olympics practice or events, attend pre-scheduled appointments orlust relax and begin their home routines such as washing laundry, cleaning, or other leisure activities of their choosing Dinner is served at approximately 6 p m -residents are encouraged and invited to participate in the planning, shopping or preparation of the meals, under the nutritional guidelines provided by a re~stered dietition The evening routine may include additional chores and leisure activities Although lights are out generally by 10 00 p m ,the staff person is always avazlable should the need anse The Domiciliary Home is structured to reRect Gamily Itfe The home is in a local neighborhood, there is a garden, you can hear people lolung or conversing with each other, some residents work, friends come to visit and there is an emphasis on participating in community activities All activities occur as schedules and staffing allows. Everyone who lives there has expressed the desire to continue living there because they like it Health and safety issues are addressed and maintained to ensure maximum support for the residents to be able to take risks that result in their personal growth and independent living F. Evaluatioa: 1) What process will be used to evaluate the program and services? Guidelines for programs and sernces are outlined an the Hawaii Administrative Code, Chapter 89 Kona Krafts administration and staff adhtre to these guidelines while adapting programs to the individual The program and semce delivery is reviewed each year by a number of administrators, representing venous departments responsible Cor Chapter 89 The domiciliary home has received high marks for program delivery from alt those departments This is accomplished as follows: Each resident has a file with a comprehensive checklist of required contents Case notes, daily and monthly logs and quarterly reports are maintained by the staff, which are in turn reviewed by the Consumer Plan Manager The Executive Director is kept informed of all progress and concerns on a quarterly or as needed basis 5 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 2~ How will this process measure the outcomes specified is Item D (1-4)? The overall goals for residents include the ability to live more independently, to paaicipate and engage in meaningful activities both at home and in the community and to be appropriately responsible for the independence that is gained. With the daily, monthly and quarterly review of residents' progress in these areas, caregivers are able to measure actual performance with desired outcomes If there is a lack of progress. positive support plans are developed, updated and implemented to address any concerns Thts is accomplished by meeting vnth all the stakeholders including the residents, caregivers, faintly members and case managers G. Program Fees: 1) Dws your organisation charge a membanhip fee [or service participants? (If yes(; Deseriba or at4ch [aa toe service information. No membership fee is required All supporters of the organization are invited to loin as members of the Kona ARC local chapter for a fee of $10 00 There is a national ,4RC organisation that produces various reports and conducts research into retardation issues Every member of the local chapter automatically becomes a member of the national organisation and is able to take advantage of their support 2) Does the proposed program charge participants a fse for service(s~ provided by your organisation? (It yes(: a. Daacrlbs or attach fan [or service information Each resident pays monthly rent The fee is set by the Housing and Urban Development Department (HUD) Section 8 rules of HUD authorize subsidies to pay rent on behalf of the residents, providing eligibility is verified each year Eligrbihty is based on income and disability, which based on their low income alone, qualifies residents each year Rent is also subsidized by the Supplemental State Insurance (SSI) grant Residents pass along their SSi payments to offset the remainder of their rent fee A more thorough breakdown of costs can be found in the budget tables. b. Describe how you wiII ensure that all interested participants will be included despite an iaabiltty to pay the entire fse. N/A H. Viablllty: 1) What L your juatifieatioa or rationale for the eapeaditure o! public Pands [or the proposed program? First, these public funds are needed in order for Kona Krafts to continue to provide the high quality care and supervision required by the residents of the Domiciliary Home [t is to this context where the greatest rationale resides With adequate staffing, public education about persons vnth developmental disabilittes is ensured The respectful ways in which these residents are treated in the pubhe eye only serves to educate citizens about the strengths, talents and other ways persons with developmental disabihties can contribute to our society Also, the full-tune care and supeivision that is required is taken off of the shoulders of family members or legal guardians, freeing them to make theircontnbutions to society 6 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 Viability con't Without the Domiciliary Home, chese families or guardians would not be able to work or volunteer, which potentrally withdraws them from actively supporting their communities Lastly, communities in which persons with developmental disabilities live, only benefit from the support provided This is evidenced by presenting a more well-adjusted, independent person who then chooses to gtve back to their communities in meaningful ways 2) What are your financial and programmatic pLias to snstaia the proposed program beyoad tha upcoming fiscal year? This home, which has operated since 1985, has always been at a deficit Pnvate financial contnbutions, HUD rent subsidies, SSI contnbutions, donations and fund razsing have helped keep things operational. Monies received from the County over the years have been used to pay staff to ensure adequate supernsion Currently, the supervision is adequate, but more stnngent because of scheduling demands as outlined in section D, 1-4, resulting in more group activities, which minimizes ideal choices for individual activities With additional funds, requirements can be relaxed because an additional staff person can provide the supervision of individual needs, which in turn allows individuals to live a more self-determined life 7 .ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS APPLICATION FOR NON-PROFiT GRANT FUNDS JANUARY 2001 ORGANIZATIONAL/AGENCY INFORMATION Board of Directors 1( Has the organization's Board of Directors received formal trazntng within the past two fiscal years Yes Kona ARC/Kona Krafts has recently received a Certificate of Accreditation from the Commission on Accreditation of Rehabilitation Facilities (CARE) As part of that Accreditation process, the Board of Directors engaged in a Strategic Planning Process a professional from the Pacific Basin Rehabilitation Research and Training Center facilitated The first of these sessions (part of UH) and took place in March of 1999 This was followed up by internal review of the total work plans and evaluation tools used for Quality Assurance, this took place March 2000 2) What are the ~r~m~ roles and responsibilities of your organization's Executive Directory The Executive Director is responsible for the dally operations of the organization The prmary areas of responsibtliry include, but are not limited to, Personnel Management, Financial Management, Program design and planning for new or enhanced programs, Public Relations, and Board/Staff/Communiry relations 3) What are the primary roles and responsibilities of your organization's Board of Directors (Clanfy roles of executive Officers Vs general membership( The Board of Directors for Kona ARC is a governing Board The Board's role is to set policy, to review the needs of the community for sernces to persons with disability and to set pnonties for organizaUOnal directron In addition it is the Board's responsibility to oversee the work of the Executive Director and evaluate organizational performance [t is also the role of the Board to reach into the community so that there is understanding of our mission and a vesting in the goals The general membership is open to anyone who wishes to support our mission, the general membership elects the Board of Directors, the Board members meet as a whole to amve at decisions, whereas, the executive officers taork to lay out issues and agenda items for presentation to the full Board The executive officers of the Kona ARC organization handle personnel, financial and ad-hoc issues B Past Performance 1( How effective has your organization/agency been in achieving program goals in the past two- (2) fiscal years? A Quantitative Data on numbers served, and B Qualitative Data shovnng number of % of participants achieving measurable outcomes Ouantttative Data Numbers served FY 59 5 FY'00 5 Oualitanve Data FY '99 FY b0 a( attend Special Olympics activities 4-80% 3-60% b) keep all medical appointments 5-100% 5-100% c) Provision of a healthy secure shelter365 days a year 5-100% j-100% d) Provision of nutritious meals each day 5-100% 5-100% e) Participate in acnvtues of daily living 5-100% 5-100% fl Attend social recreational events 5-100% 5-100% ••--two residents arc not physically able to participate in Special Olympics 9 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS 4PPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 C F~nanctal 1} Have your organt2atton's current program operations remained the same as last years What mayor program or financtal changes will be incurred next vear~ Kona ARC; Kona Krafts operation's have remarned basrcally the same after almost thrce years of constant change rn expectations from the State of Hawatt as to how servrces should be delivered to the communrty The mayor system change that has dnven this ~nstabtltty appears to be at an end with the new model ~n place that looks to the individual served, rather than the State's Case Managers to decide what setvrces they want and where they wish to purchase them No mayor changes to financtal condition or program sennces are antrctpated for the follovnng year 2) What is the status of all your organization's mayor contracts or agreements for the coming year employment agreements, office leases, pnmary grant revenue/supplier, etc This is the biennium year when our State Purchase of Setvtce contracts are out for bid Thts means that there ~s no definitive answer for two of the mayor Department of Heath contracts Because Kona Krafts has delivered high qualrty servtces over the past 2 b~enntums, we have no concerns about the abrltty to keep these programs operational The bulk of our Department of Health Setvtce delivery is via the Medicaid waiver and that is secure for the following year wrath anttcrpatton of moving into the Hawt/Kapaau area where rndtvtduals do not currently recerve any servrce In addition, attazntng CARF accredrtatron provides us with confidence and will convince fundtng agencies of our commitment and capability to produce quality results demonstrated vnth accurate and thorough outcome measurements. Our enterpnse dtvrsron is doing well selltng~anttonal and yard maintenance servtces wrth accounts tnciudrng a mayor resort on the Kohala Coast Our concrete products manufactunng and sales enterpnse has flounshrng and now set for expansion We are fortunate to that our facility is leased to us ~n perpetuity as long as our mission remains constant. 3) How does the proposed program tit into your organization's long range financtal plan The Domiciliary home, commonly called the group home, has been a mayor service provided by Kona Krafts since 1985 Housing optrons contrnue to be identified as a top pnonty for famtlres who are unable to contrnue canng for them loved ones due to age, circumstance or physical limitations The resources of the agency are commuted to finding practical ways to prevent the costs of the operation from exceeding revenue to cover them In today's em•tronment with costs tncreasrng and publrc fundtng remarntng Rat or decrcastng this is a challenge, but a worthy challenge for people with developmental disabilities or mental retardation D Monttonng 1) Dunng the past two fiscal years, what financtal or admtntstrauve monttonng has your organization received from any and all fundtng sources? Please lint all monitoring sources, contact names sad phoaa nambea. Yositada[ waroe Contact aria lllMt aasMr ~ Depatttmeat o[health lle. 8alod Lake 606 463-0416 10 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS APPLICATION FOR NON-PROFIT GRANT FUNDS JANUARY 2001 Department of Humaa ; Mr. Toay Wuasch , (808) 586-55-93 Services-11[edicaid Waiver Departmaat of Human Ma. Faya Ogoshi (808) 586-4112 Services-Liceaeing group i ~ home Diviaioa of Vocational Mr. Joha NoLtad (808) 694-7720 RahabUitation-Piaceme at ~ Departmeat of Labor aad , Ma. Gloria Mento 349-4822 ' Industrial ReLtioaa ~ E. Alcohol. Tobacco aad Drug Free WorkoLce Policies 1 ~ How does your organizauon address Workplace poltc~es and other drug prevention informattor. dtsseminatton as part of your workplace and/or program env~ronment~ Kona Krafts has a policy prohibiting consumption of drug or alcohol while at work or reporting to work shotv~ng signs of drug use If warranted drug testing ~s identified m that policy Smoking is confined to designated areas only Every employee signs his/her acknowledgment of these policies upon initial onentanon at the time of hire and every quarter, Kona Krafts holds an organizational wide staff meeting where pertinent policies are reviewed 11 ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS .APPLICATION FOR NON-PROFiT GRANT FUVDS JANUARY 2001 Budaet: 1) Complete the attached Hudget tables; aad 2) Provide appropriate attachments, as indicated. See attachments 8 LL N r Y ~~p O 4LI Q th n Of O ~ O N ~ Y y N N N p W N N H Q Z O W ~ N O _ _ Q O` Olp ~ O ~ ~ O O ~ Z a 7 0 ~ ~ a0 ~ N n O 7 N f7 N Ol n N n N U W m} N N y N N N N O LL ~ O ~ ; ~ `w a a T ~ O c tD Y1 N 10 1D O Y O~ o p r M aND r O O N N ^ trl N Q U O N N Ol Ol O N O M N v G m N N N N N N F- LL N O C ry O a N ~ H ~ = w m c E E > pp ~i o ao v~ M ~ a°o m o0i m w fn ~ X 0 0 N 1'1 N n ~ 01 V N O 0! d a s ~ ~ of n ~i °D c O E W H ~ m N M N N r N ~~pp a H N N N N C~ N J o I}L 1_- r Z ~ ~ a U J O ~ a ~ m y r ~ ~ ~ Q Q W C Od Opp O N O N r y 0 H a ~ p mt O O ~ N N ~ O fOp a00 O ~ OOi y ~i Q LL Q; OON ~ O O e- OD aD N n O ~ ~qp m~ ~ H G m y N M N N N N N N N a y ~ J F LL a ~ Q ~ ~ m O C ~ r Z m o Q E U w n O E ~ mw ~ m Q ~ H d m ~ E Q aZi m y m ~ ~ Z c y c~ m c m ~ LL O $ 07 c m -m ~ m y c ~ ~ ~ ° a $ X crS E a A y Q c ~ c~ d m a LL 2 ~ Q~~ j ~ N Y ~ J ~ 3i m e y W ~ O ' c o~~ ~ E~ 0 7 c c~ a d~~ J o e y O o ~ 5 0 ° i 'c~ Lc `0 ~ 3 ~ r E g° ~ c~ a u a s Z a E W o B m~ r c< d~ m~~ m ~ ~~3 a}~ E:~> 03 oC mvm ~ ~ m~ m a m m 0 m m~ m V m~ m m~ ~ - m p ~E m ~E~ EE m SE mE mE m EE m~r w~~° a,~ = a~ a m s m m i m z w m m s~ ~p z~ m U I-Z F- 2~ F-ZZ 1- ZZ F-Z F-Z H ZZ FZ Z5 O c c ~ Z f' iT m W ~ darn U' ~ N ~ v v~ ro r m a q y Q m a m Z N ~ . _ i o o c ~ a~°~ ~ m A o~ c D o m ~ o 3 aNi m r ~ N m z ~ ? c 3 ~ ~ c c m C o X D N ~ N 7 7 W Z m ~ 3 m ~ m m z N T_ Q ~ ~ 7 O .7` ~ Z A H ~ N r O O o O W N D Z ~ a' D _ N n C!7 v O ~ ~ C7 7 ~ W N ~ ~ ~ D a ~ co w a TD ~ O m °w rn rn tm ~ ~ $ ~ m T /N M N O ~ O VI N V ~ ~ G 0 C1 C ~ w v ~ m m T ~ fD ~ ~ W N x x ~ i o O y m n G M M H N~ D N ~ N + ~ A O m ~ 2 A o + 03 O Z F ~ m ~Dt x N N N ~ N o RI ~ J~ O 0p V N T m ~ ~ v ~ ~ m < D y C N O O m O „ 7 m 00 r~ M M N r O p ~ N O m C ~ N ~ N r W ~ V W ~ NN W N N Y N C ~ A V Ol N a ~ O ~ w A O A V y ~ ~ 1a ~ p .fN.1 r0 A C m D m ~ "v ~ 3 ~ ~ m m N M N ~ ~ O 01 V Y' m ~ w N ~ x ~ D m ? $ B 3 ~ ~ o ~ ~~O g ~ ~ N JV? ~ LL s Q Y o g I°n ° °o o N » » N N N Z ~ gc'b O p ~w~ O S W N N Q Z r ~ U O0 8 c ° O m 4 N A N N g N ~5: M N N a ~ c N a> W C G N N j h O _ u N ~ N N ~ ~ y (A 7 0^j I" N M M O 7 7 C y m 0 Ql N Yf ~ ~ 7 Z V^ N N N N N N d W C 8 d N rn o n at g o w W Q W n N i t N N 001 r ~ n ~ O N h t~ a0 ~ O ~ n O_ n ~ V 2 W F N N N N N N N N N N O Z ~ a w e~ _ _ ° N ~ ~ o I-- J 7, N N N U m W E° v ~ Q F W ~ C ~ N O LL' C d LL N C Q N F J O N ('J w a h ~ c - $ ~ g 8 ° $ o r Z o x ° S pp S Q ~ LL ~ EG G ~ ~ b N ~ ~ rn 0/ ~ ~ O ~ O ~ U ~ N N N N N ~ N M E N N Q J N Q H e C d O 0 ~ _ < N J ~ Z Y uWi a°1i w C7 h a~i F ,tea„ F O < o y O W_ w h m ~ h ~ as m ~ N 3 W ~ C~ Z e ~ } O O ~ W Z ~ W A o ~ E~E v ~ c°ii o E pj y V C a2°i 90 ~ ~ cLi ~ ° r p ~ Q~ Q O all O a O K j ~ K W d~~ j > ~ Z N 1+f f 1f1 4D II W ' C7 Q n ~ ~ ~ _ _ 3 fn A W N ~ C O W y O tp ; D D V = y S S~~ ~z~ c~ z D„ s ~ m T+ 3 0~ p o~ D~ z o~~ ~ Z ~ R ~ ~ T~~ 3~ m~ 2 0 0~ o y 'q 3 y m D r m m~ m s D r N ~ y y s ~ 3 r ~ 2 m ~ ~ m ~ Z= C m ~ i O m r" n C d A: 2 ~ m m w a c m z ~ g O c~ 3 y N = o D S ~ Vl ~ C y D Z 3 = m ~ r a H m O y Z p Z w 7C D Q a Z ~ N N N N N N D O N O~ O M W .p. D - O S S O p~ '~N tp ~a m O fn ~ N N O pOf < (p 1 O N ppNN ~ _n p ~ r O O p ~ 1~ N N „N N_ O~ N D N 47 O O O O O ~ O O Ol + W T O Gi '•y o ~ ~ ~ Z d = T7 3 m ~ ~ O m a d n D ~ ~ <c. ' m ~ W N nji c ~ m ~ rv N N o 'a m w D O ° w o0 m ~ ~ ~ o 0 0 ~ o ~c ~c O m c o. ~ Z O 2 ~ Z o « N fo Z -1 r N V N N ~ i m C N a w o, ii' cn N 3 t0 m N N N N QN 7 C N W ~ V O f.J « « N N ± f1 ~ W Gf O r `2 I~ W O O O ~ O A O O I N N~ Z p V O O Q ~ ~ M ~ n Ip ~ ~ N 0 ~ r ~ N ~ ~ ~ ~ ~ H N ~ ~ O ~ ~ N O d ~ 0 0° o c 3 m x O N m 1 ~c z rn D m O Z N D N 7C f0 (r o S o N D O 1'1 -I a ~ N ° o p ~ Y m N a z ~ ei ~ ~ N ~ 0 m Q ~ Q' R O m ~ N m ON a ~ N ^ N t~1 O E ry O O O N N ^ A O Ol ~ ~ d LL N N N W N m ~ C O 1~ N m N a T N N O LL 1- m ~ O H _ N a d u~i v aci C ~ N a o m ° x a r rn ~ W ~ N v~ U G _ ~ ~ C m m F = 4 m N l7 i(f ? O1 ~ ej Q h N m W o Q> ~ h ~ ~ c g ~ ~ v lL N w U ~ N m m ~ ~ a ` ~ r N N w LL Q ~ y ~ o Z F- W W ~ h Z~ a gw m = mO W u~ Z ~ U Q Vl m ~ g m S' h~ m O y m~ T f' ~ m rn N o v m m E ~ W m o m ^ Q > c m ~ m W LL b d LL N N N ~ ~ O p N n ry m ~ O `c ~ ~ y d LL N N w v ~ ~ ~ Fes- ~ a m (O O O ~ ~ Q ~ ~ N ~ O ~ a E ~ y m ~ ~ ~ lL c m o ~ > o m rn ~ ~ ~ Z a ~ m m d m° v ~ ~ Q a q~ LL m v_~ ~ ~ ~ c N o O Ip ~ ~ ly N N w ~ ~ Q W W Q Z a J w ~ z ~ ~ o ~ a > QQO ~ N a y i N Z ~ ~ J Z O W W Z U C7 O ~ ~ d) W 0_' a y W O.' ~ 0 ~ ~ O a U W ° ° ~ 0 7 a N • m . Fes- F 1~ n o H F~ D m z 0 ~ g e ~ ~ n m ~ O aD C ~ ~ ~ n 4A7 ~ ~ ~ ~ a ~ a d 3 y ~ ~ m ~ ~ D ~ T m l% (C A H ~ ~ ~ Q p = 1 a ~ N ~ ~ T ~ N ~ Z c 2' n 'Jf 9 3 ~ ~ o° 7C 'ate ~ ~ m ~ Z o ~ D ~S ~ c ° ~ n~ O U y C7 m O ~ d ~ m N N N N N N N M ~ _ Z re C N v OI O ~ .fNO W ~ N T1 $ J Q5~ O W a °o $ ~ 0 0 25 y ~ 7 v a m ~ D a y ~ n d ~ ~ ~ O Y n v ~ ~ n G ~ N N N O m 1 oo Fi o> m ~ ~ N N a * D ,gj3 ~ O N m N p ~ po ~ m rn n N S ~ m O A a A y O 3 ~ m fN.l M N M 4 N ~ ~ u U U U pO N ~ O t O G $ 9 ~ v r C m d Z D D T KONA ASSOCIATION FOR RETARDED CITIZENS dbs KONA KRAFTS COUNTY OF HAWAll APPLICATION FOR FY 2001-2002 FUNDING SUBMITTED JANUARY 2000 FINANCIAL QUESTIONNAIRE i Stephen K Yatnashuo : - ~ Harty A Takahashi Mavor Drrector COUNTY Of i~AY1li4I`1 DEPARTIV>[ENT OF FIIYANCE 25 Aupuni Stnar, Rnotn I IS Hilo. Fiawui %TZO-4252 (808) %I-8234 Fa (808) %I-8248 HAWAII COUNTY NONPROFTf GRANTS t;FY 2001-02) FINANCIAL QUESTIONNAIRE Please include as ao attachment an explanation for all "NO" answt~s to gtuatiotu #1 thtu #11 below. Yes No ® ? 1. Has the agency operated continuously for the put three (3) years? ® ? 2 Has the agency operated with a positive cash flow for the put throe (3) ytars~ ? ? 3 Does your Board of Duxtors approve a detailed cash flow budget before the begmntag of each fiscal yeah ® ? 4 Do your Board metxtag minutes show that quarterly trnanctal s~atemeats are approved r® ? 5 Is your egtuty btilaoce at ]coat 20°/. of your Total Lability balance? yp ? 6 Is your Total Current Asset baLace larger than your Total Current Laabthty balaace~ ? 7 Are bank reconalunona and accounting performed by someone other than the check stgaatory~ ® ? 8 Are you fully tttsttted for the agency's vehicle(s) and bttildtrtg(s)~ ® ? 9 Is your Wa'kes' Cotnptmsation at leant 2°/. of payroll ® ? 10. Are you current (non-delrogtuot) on all payroll and payroll tax ptymmta? ? ? 11. Is the agency free of any pmduig litigtioa lima orludgm®ta? ? ® 12. Within the pat 12 irtotitha, has the agency apphed for vendor or baitk credit artd was demad ctedtt? If yea, pleeae tticplam. .1s rhr gronr opplrcaru, ! cernjy drat dlt o;ascy has satLrfaeronly nspondad w aaclt ojdltr oboue giiesdonr and esplawd as nndd ! hrrrby ctrrijy rGat rku mjonamon u nwa old caner w the bat ojnry ~bsotvladgs. ggeticy Kona Association for Retarded Citizens Phame: 323-2626 pnpu,~~,: Michael Watson, Director of Administrative ~~p,~, I ~~-`~~o J P'°r?4~rr'd' Services st*.a.s CerttSed by: Gretchen Laxsan tict.{r~w,~ . 5r0~- / 'Z -G'/ t~ntaliaala d6taeiw~ Daawer DO° KONA ASSOCIATION FOR RETARDED CI77ZENS dba KONA KAAFTS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDIIVG SUHdvIITTEU JANUARY 2000 ANNUAL FINANCIAL STATEMENTS (2 YEARS) KONA ASSOCIATION FOR RETARDED CITIZENS Financial Statement June 30, 1998 Jennihr L. Gossert, CPA An Accounting Corporation KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENTS OF FINANCIAL POSITION June 30, 1998, ~wth Comparative Totals for 1997 ASSETS 1998 1997 Currant assets: Cash and cash egwvalents S 204,651 5 53,689 Accounts receivable 35,755 15.715 Hawau Island United Way recenable 14,500 12,325 Grant reeervables 41,831 16,934 Prepaid expenses 3 391 8,109 Total currant assets 300,128 106.772 Land 57,000 12.000 Property and equipment - at cost (net of accumulated depreaauon of 5219 714) 150,898 145.641 Replacement reserves 7 132 8.587 Total assets S 515,158 S 271,000 LIABILITIES AND NET ASSETS Current liabtlitlss. Accounts psyabls 5 6.250 S 10,208 Accrued IiaMlittas 8,678 8,094 Payable to grantors 12,468 12,468 Deferred revenue 82,076 Current porton -long term debt 1,600 7,800 Vaeahon accrual 72.609 6,499 Total current liadlitlas 723.879 38,889 Mortgage note payable, less current porton 197,718 199,617 Secunty depo+~b payable 774 774 Totall~abtlitles 322,171 239.260 Net assets: Unrsstneted 145,186 19 415 Temporanly rsstnctsd 47.801 12,325 Total net assets 792,987 31,740 Total liabllitlas and net aawts S 515,158 5 271,000 See aecomparry~ng Notas to Fnanaal Statements. 2 KONA A5SOCIATION FOR RETARDED CITIZENS STATEMENT OF ACTNITIES For theYear ended Juns 30, 1998, wrath ComparaLve Totals for 1997 1998 1997 Public Support and Revenues• Public Support: Dept. of Housing and Urban Development: Seaton 8 Housing Assistance S 27,082 S 17,94g State contracts. Department of Health 199,771 182,282 Department of Humart servtces 307,042 57,641 County grants 11,000 12,000 Hawau Island United Way 29,000 24,650 Other contnbuttons 94,529 69,900 Non cash contnbuttons 54 418 3.301 Total public support 722.842 367,723 Revenues: , Contract servtces 135,140 126,800 Transportation 3,905 20,844 Client rent 12,996 14,136 Interest and other investment income 2.541 5,050 Client fees 45,522 38,534 Special events 15.158 Total revenues 215,262 205,364 Tote! public support and revenue 938,104 573,087 Expenses: Program servtces 689,110 468,323 Support servtces-management 87,747 87,690 Total expenses 776,857 556,013 Total change to net assets 161,247 17,074 Total net assets, begtnntng of year 31,140 14,66fi Total net assets, end of year S 192.987 5 31,740 SN accompanying Notes to Finanaal Staterrtsms. 3 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENT OF FUNCTIONAL EXPENSES Year ended June 30, 1998 Total Program Program Supporting and Supporting Services Services Services Salanes and wages S 384,293 S 62,660 S 446,953 Employes benefits 57,038 10,065 67,701 Payroll taxes 31.983 5,644 37,627 Total salanes and related expenses 473,312 78.369 551.681 Insurance 10,319 1,821 12,140 Utilities 11,341 2.000 13,341 Repays and maintenance 6,042 1,057 7,099 Total occupancy expense 27,702 4,876 32,580 Matenals and supplies 42,402 2,500 44,902 Professional fees 9,468 9,468 Vehicle expenses 19,469 1,500 20,969 Interest 19,139 19,139 Direct service costs 80,824 80,824 Other 5,346 5,346 Total other operating expenses 178.648 4,000 180,648 Total expenses beforo dspreaation 677,662 87,247 764,909 Depree~ation expense 11,448 500 11 948 Total expenses S 689,110 S 87,747 S 776,657 See accompanying Notes to Finanaal Statements. 4 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENTS OF CASH FLOWS For the Year Ended June 30, 1998 1998 Cash flows from operating activities: Changs innet assets S 161,247 Ad)ustments to reconctle change in net assets to net cash provided by operabng activities: f]eprec~ahon 11,948 Non cash transactions (54,418) (Increase) decrease in Accounts receivable (20,040) Unconditional promises to give (2,178) Prepaid expenses 4,718 Grants receivable (24,897) Increase (decrease) in Accounts payable (3,938) Accrued liabdrt~es 6,692 Deferred revenue. 82.076 Net cash provided by operating activities 161,213 Cash flows for investing activities: Purchase of depreciable assets (7,980) Reserve account funding (1,415) Reserve account withdrawals 1,043 Net rash used by investing achvdiss (8,352) Cash flows for finanGng acnwbes: Mortgage note pnnUpal payments (1,899) Net cash used for finanung activties (1,899) Net increase (decrease) in cash 150,982 Cash, beginning of year 53,689 Cash, end of year 5 204,651 Ses accompanying Notes to Finangal Statements. 5 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Finaneal Statements For the Year Ended June 30. 1998 (1) Summary of Significant Accounting Pollees Oraan¢ation• The Kona Association for Retarded Cit¢ens (KARC) is anot-for-profit organization incorporated on December 19, 1968 in the State of Hawaii The KARC provides vocational rehabilitation and residential services to persons with disabilities residing in Hawan County In providing residential services to clients, KARC administers a residential facility financed via U.S. DepaRment of Housing and Urban Development (HUD) secured mortgage. Approximately fifty eight percent of KARC revenues are from federal, state, and local govemmertts. Financial Statement Presentation KARC has adopted Statement of Financial Accounting Standards (SFAS) No. 117, "Financial Statement of Not-for-Profit Organu:ations" Under SFAS No 117, KARC ~s required to report information regarding its financial position and activities according to three classes of net assets (unrestricted, temparanly restricted net assets, and permanently restricted net assets) based upon the existence ar absence of donor- imposed restrictions In addition, KARC is also required to prosent a statement of cash flows As permitted by the statement, KARC has discontinued its use of fund accounting. Contributions• KARC has also adopted SFAS No. 116, "Accounting for Contributions Received and Made" In accordance with SFAS No. 116, contributions received are recorded as unrestricted, tsmporanfy rostnetsd, or permanently restndsd support, depending on the existence and/or nature of any donor imposed restrictions. Basis of Accounting: The financial statements of KARC have been prepared on the accrual bans of accounting and in accordance with generally accepted accounting pnneples Cash Eouivalents: For purposes of the statement of cash flows, cash equivalents consist of short-tens, highly liquid investments that aro readily convertible into cash within ninety (90) days of purchase or donation Prooertv and Eauioment: Property and equipment aro stated at cost at the date of acgwsitian or at fair market 6 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements, continued For the Year Ended June 30. 1998 value at the time of donation. Major renewals and betterments are capdalized while repairs and maintenance that does not extend the lives of assets is charged to expense. Depreciation is calculated by use of the straight-line method over the estimated useful lives of the properties. Depreciation lives range generally from five (5) to forty (40) years Donated Prooertv. Eauioment. Facilities. Materials. and 5ervices• Non cash contributions include donations of real property, equipment and other supplies with a fair market value of 554,418 during the fiscal year ended June 30, 1998 KARC received a 509'0 ownership in donated real property in early 1998 with an appraised value of 545.000. The real property ~s located in Kailua Views Estate Subdivision lot 29, TMK (3) 7-5-033-56 The remaining 59,418 of non cash contributions is comprised of supplies, equipment and kitchen additions for use at the day facility located in Kealakekua. No other amounts have been reflected in the statements for donated services inasmuch as na oblectiue basis is evadable to measure the value of such services Functional Allocation of Exoenses• Certain expenses have been allocated among program activities and supporting services on the basis of estimates made by the management of KARC. Suooort and Revenue. All support and revenue era considered available for unrestricted use, unless specifically restricted by the donor or ay terns of the contract or grant. Contract and grant revenues are recognized at the time an expense has bean incurred for an authorized purpose under the tarns of the contractual agreement Rental Revenue: Clients Irving in the KARC reaidential facility are charged a monthly rent that is subsidized through the HUD Saetion 8 Housing Assistance Program Rental revenue is recognized as the total monthly rent, net of the housing assistance subsidy. imater The preparation of financial statements in conformity with generelly accepted accounting pnnaples requires management to make estimates and assumptions that affect certain reported amounts and disclosuros. Accordingly, actual rosufts could differ from those estimates. 7 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Fnanaal Statements, continued For the Year Ended June 30, 1998 Income Taxes KARC ~s classified as atax-exempt organization under Section 501®(3) of the U S Internal Revenue Code and is exempt from Federal and State income taxes (2) HUD Cash Reserves Under the HUD regulatory agreement, annual contnbuttons of 5885 are regwred to be made to the reserve replacement account for the HUD protect administered by KARC The cumulative reserve balances are maintained in federally insured bank accounts The balance of the reserve replacement account as June 30, 1998 is 57,132 (3) Fair Value of Financial Instruments KARC finanaal instruments. none of which are held for trading purposes, include cash and cash egwvalents KARL estimates that the fair value of all finanaal instruments at June 30, 1998. does not differ matenally from the aggregate carrying values of its finanaal instruments recorded in the accompanying statement of finanaal position (41 Prooerty. Eawoment. and Improvements Property, equipment and improvements consist of the following. Greenhouse $ 3,276 improvements 5,492 Furnishings and equipment 24,898 Vehicles 106,552 HUD residence 230,398 370,612 less accumulated depreaatlon (219.714) S 150,898 (5) Mortdaae Note Payable At June 30, 1998 the Protect awed S199,318 to the Department of Housing and Urban Development. The mortgage ~s payable in equal monthly installments of 51,883 consisting of interest at a me of 9.25 percent per annum, wdh the balance of the 8 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Fnancial Statements, continued Far the Year Ended June 30. 1998 payment applied to the unpaid pnnc~pfe balance. The note is secured by the bwlding that has a net book value of 5128,853 at June 30, 1998. The mortgage matures in January 2025. Future maturities on the note payable are as follows. Year ended June 30, 1999 1,600 Year ended June 30, 2000 1,800 Year ended June 30, 2001 2.000 Year ended June 30, 2002 2.200 Year ended June 30, 2003 2,400 Thereafter 189.318 Total maturity on note payable 199,318 less current portion (1,600) Total long term note payable 5 197,718 (61 Reconciliation of Temooranly Restricted Net Assets The fallowing is a raconGliation of activity affecting the temporarily restricted net assets for KARC for the year ended June 30, 1998. Balance as of June 30, 1997 5 12,325 Addittans Uncondrttonal promises to give for 1948 29.000 State funds received in advance , for state designated recipients 33,301 74,828 Released from temporary restnct~on during 1998 (26.825) Balance as of June 30, 1998 S 47.801 9 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Frranual Statements, continued For the Year Ended June 30. 1998 (7) Siarnficant Smole Donor Cash Contnbution KARL received a cash cantnbution m March 1998 for 581,256 from an individual donor The amount received represents a fifty (50) percent interest in the net proceeds on the safe of a Kona Sunshine Estates Lot, TMK (3) 7-7-003.045. Title ~n the real property was conveyed to KARC and the Mokuaikaua Church, as tenants in common, pnor to the sale that same month The contnbupon is currentty held in a FDIC insured bank account separate from KARC operating cash (8) Leases KARL leases its main faality, located above the Konawaena School m Kealakekua, Hawau, from the County of Nawau for an annual rent of S1 per year The lease term runs through the year 2034 The fair market value of this lease ~s not readily deterrrnnable. t0 KONA ASSOCIATION FOR RETARDED CITIZENS Financial Stat~aments June 30, 1989 Janniior L. Goss~rt, CPA An Accountfny Corporation JhNN1rhK L. IrOSSEK'I' CERTIFIED PUBLIC ACCO'UNIAP Aa Aroou¢da/ Corponooe 688 Kinoole SoraeS $wte 201 • Hilo, Hawu196720 • P6om (808) 9693115 Fu (808) 969.746} Independent Auditor's Report To the Board of Directors of Kona Association For Retarded Citizens I have audited the accompanying statement of financial position of Kona Association For Retarcled Citizens (a nonprofit organization) as of June 30, 1999, and the related statements of activities, functional expenses, and cash flows for the year than ended. These financial statements are the responsibility of the Organ¢aUon's management My responsibility is to express an opinion on these financial statements based on my audit Information for the year ended June 30, 1998, is presented for comparative purposes only and was extracted from the financial statements presented for that year, on which I expressed an unqualified opinion in my report dated January 8, 1999 I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audk to obtain reasonable assurance about whether the financial statements are free of matenal misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing whether the accounting pnnciples used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion In my opinion, the financial statements referred to above present fairly, in all matenal respects, the financial position of Kona Assocation For Retarded Citizens as of June 30, 1999, and the changes in its net assets and its cash flows for the year then ended in conformity with generally accepted~acco~unting~pnnciples December 15, 1999 KC, _,1 ASSOCIATION FOR RETARDED CI ~ .cENS STATEMENTS OF FINANCIAL POSITION June 30, 1999, with Comparative Totals for 1998 1999 1998 ASSETS Current assets Cash and cash equivalents $ 247,671 $ 204,651 Accounts receivable 21,526 35,755 Nawau Island United Way receivable 14,500 14,500 GranUContract receivables 89,883 41,831 Prepaid expenses 13,196 3,391 Total current assets 386,776 300,128 land 12,000 57,000 Property and equipment - at cost (net of accumulated depredation of $198,478) 168,573 150,898 Replacemsntreserves 8,520 7,132 Total assets $ 575,869 S 515,158 LIABILITIES AND NET ASSETS Current liabditias , Accounts payable $ 15,804 $ 8,250 Accrued Irgbdrbes 13,521 8,676 Payable to grentors 12.468 12,468 Deferred revenue 29,977 82,078 Current porton -long term debt 1,800 1,800 Vadsbon accrual 11,491 12,609 Total current habdihes 84,861 123,679 Mortgage note payable, less curtent portion 195,942 197,718 Secunty deposits payable 919 774 Totalliabdibes 281,722 322,171 Net assets. Unrestricted 248,670 145,188 Temporarily restricted 44,477 47,801 Totalnetassets 294,147 192,987 Total habddles and net assets $ 575,889 $ 515,158 See accompanying Notes to Finandal Statements 2 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENT OF ACTIVITIES For theYear ended June 30, 1999, with Comparative Totals for 1998 1999 1998 Public Support and Revenues Public Support Dept. of Housing and Urban Development• Section 8 Housing Asmstenca $ 28,382 $ 27,082 State contracts Department of Health 248,531 199,771 Department of Human Services 354,336 307,042 County grants 12,000 11,000 Hawan Island United Way 29,000 29,000 Other contnbutions 50,114 94,529 Non cash contnbutions 8,029 54,418 Total public support 730,392 722,842 Revenues Contract services 142,015 135,140 Transportation 3,852 3,905 Client rent 14,883 12,998 Interest and other investment income 6,117 2,541 Client fees 45,917 45,522 Speaal events 25,364 15,158 Total revenues 237,728 215,282 Total public support and revenue 988,120 938,104 Expenses Program services 760,553 689,110 Support services-management 108,407 87,747 Total expenses 886,980 776,857 Total change m net assets 101,160 161,247 Total net assets, beginning of year 192,987 31,74( Total net assets, end of year $ 294,147 S 192,98' See accompanying Notes to Financial Statements. 3 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENT OF FUNCTIONAL EXPENSES Year ended June 30, 1999 Total Program Program Supporting and Supporting Services Services Services Salaries and wages $ 404,900 $ 74,560 $ 479,460 Employee benefits 33,411 6,364 39,775 Payroll taxes 57,405 10,934 68,339 Total salaries and related expenses 495,716 91,858 587,574 Insurance 10,573 1,888 12,439 Utilities 6,775 1,195 7,970 Repairs and maintenance 8,208 1,448 9,654 Total occupancy expense 25,554 4,509 30,063 Materials and supplies 42,074 2,686 44,760 Professional tees 8,158 906 9,064 Vehicle expenses 17,377 17,377 Travel 4,325 481 4,806 Postage and shipping 1,628 287 1,913 Staff training 1,365 1,385 Interest 18,767 18,767 Direct service costs 124,590 124,590 Loss on asset disposals 4,313 4,313 Other 8,411 600 7,011 Total other operating expenses 224,693 9,273 233,988 Total expenses before depreciation 745,983 105,840 851,603 Depreciation expense 14,590 787 15,357 Total expenses $ 780,553 $ 108,407 $ 888,980 See accompanying Notes to Financial Statements. 4 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENTS OF CASH FLOWS For the Year Ended June 30, 1999 1999 Cash flows from operating activities. Change in net assets S 102,160 Adiustmenri to reconale change in net assets to net cash provided by operating activities. Depreciation 15,357 Nan cash transactions (8,029) Lass on sale of assets 4,313 (Increase) decrease in Accounri receivable (56,831) Unconditional promises to give _ Prepaid expenses (9,805) Grants receivable 23,008 Increase (decrease) m Accounts payable 8,554 Accrued liabilities 4,990 Deferred revenue (52,099) Net cash provided by operating activities 32,618 Cash flows for investing activities Purchase of depreciable assets (27,860) Reserve account funding (1,224) Net proceeds on sale of assets 41,385 Net cash provided by investing activities 12,301 Cash flows for flnancmg activities: Mortgage note pnncipal payments (1,899) Net cash used for financing activities (1,899) Net increase (decrease) in cash 43,020 Cash, beginning of year 204,651 Cash, end of year 5 247,871 See accompanying Notes to Financial Statemenri. 5 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements For the Year Ended June 30. 1999 (1) Summary of Sicrnficant Accounting Policies Organzation The Kona Association for Retarded Citizens (KARC) is snot-for-profit orgarozaUon incorporated on December 19, 1966 in the State of Hawaii. The KARC provides vocational rehabilitation and residential services to persons with disabilities residing in Hawan County In providing residential services to clients, KARC administers a residential facility financed wa U S Department of Housing and Urban Development (HUD) secured mortgage Approximately sixty nine percent of ICARC revenues are from federal, state, and local govemmsnta Basis of Accounting The financial statements of KARC have been prepared on the accrual bans of accounting and in accordance with generally accepted accour~ng pnnaples Fnanaal Statement Presentation Financial statement presentation follows the rewmmendations of the Financial Accounting Standards Board in its Statement of Financal Accounting Standards (SEAS) No 117, "Financial Statement of Not-for-Profit Organaations'. Under SFAS No 117, the Organization is regwred to report information regarding ite finanael poadion and actrvdies according to throe classes of net assets (unrsstneted, temporarily roatncted net assets, and permanently restncted net assets) based upon the existence or absence of donor-imposed restnctions In addkion, KARC is also required to present a statement of cash flows Contnbutions: All contnbutions are considered to be available for unrestricted use unless speafically restncted by the donor Amounts rocerved that aro dea~gnated for future penoda or restricted use by the donor for specific purposes ors reported as temporanly restnded or permanently restricted support that incroaass those net asset classes. When a temporary restndion expires, temporarily restricted net assets are roclassed tc unrestncted not assets Cash Equivalents Far purposes of the statement of cash flows, cash equivalents consist of short-term, highly I~qu~d investments that are readily convertible into cash wdhin rnnety (90) days of purchase or donation 6 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Finanual Statements, continued For the Year Ended June 30. 1999 Property and Eawoment Property and egwpment are stated at cost at the date of acquisition or at fair market value at the time of donation Malor renewals and betterments era capital¢ed while repays and maintenance that does not extend the lives of assets is charged to expanse Depreciation is calculated by use of the straight-line method aver the estimated useful lives of the properties Depreciation lives range generally from five (5) to forty (40) years Donated Property, Eowpment, Facilities. Matenals, and Services: Non-cash contnbutions include donations of egwpment and faality leasehold improvements with a fay market value of 58,029 dunng the fiscal year ended June 30, 1999 No other amounts have been reflected in the statements for donated services inasmuch as no obleilrve basis is available to measure the value of such services Functional Allocation of Expenses Certain expenses have been allocated among program actrorties and supporting services on the basis of estimates made by the management of KARC. Support and Revenue All support and revenue era considered available for unrestniled use, unless speafically restniled by the donor or by terms of the contrail or grant. Contract and grant revenues are recognized at the time an expense has been incurred for an authonzed purpose under the terms of the contractual agreement. Rental Revenue Clients Irving in the tG4RC restdsntial faality are charged a monthly rent that is subsidized through the HUD Seilron S Housing Assistance Program. Rental revenue is recognized as the total monthly rent, net of the housing assistance subsidy Estimates The preparation of financial statements in conformity with generally accepted accounting pnncipies raquves management to make eatimates and assumptiona that affect eertam reported amounts and disclosuros. Accordingly, actual results could differ from those estimates 7 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements, continued For the Yesr Ended June 30 1999 Income Taxes KARC is classified as atax-exempt orgarnzat~on under Section 501®(3) of the U S Internal Revenue Code and is exempt from Federal and State income taxes. (2~ HUD Cash Reserves Under the HUD regulatory agreement, annual contnbubons of $1,224 are required to be made to the reserve replacement account for the HUD proled administered by KARC. The cumulative reserve balances are maintained in federally insured bank accounts The balance of the reserve replacement account as June 30, 1999 is $8,520 u Fair Value of Financial Instruments KARC financial instruments, none of which are held for trading purposes, include cash and cash equivalents ICARC estimates that the fair value of all flnancrel instruments at June 30, 1999, does not differ materially from the aggregate carrying values of its finanaal instruments recorded rn the accompanying statement of financial position Prooertv. Eauiament, and Improvements Property, equipment and improvements consist of the following• Improvements $ 12,528 Furnishings and equpment 28,960 Vehicles 95,187 HUD residence 230,398 387,051 less accumulated deprecation 198,478 $ 188,573 (51 Martaaae Note Payable At June 30, 1999 the Project owed 5197,542 to the Department of Housing and Urban Development. Ths mortgage is payable in equal monthly mstellmertts of 51,683 consisting of rnterest at a rats of 9.25 percent per annum, wdh the balance of the 8 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements, continued For the Year Ended June 30. 1999 payment applied to the unpaid principle balance The note is secured by the bwlding that has a net book value of $121,093 at June 30, 1999 The mortgage matures in January 2025 Future maturities on the note payable are as follows Year ended June 30, 2000 1,600 Year ended June 30, 2001 1,800 Year ended June 30, 2002 2,000 Year ended June 30, 2003 2,200 Year ended June 30, 2004 2,400 Thereafter 187, 542 Total maturity on note payable 197,542 Less current portion 1,600 Total long term note payable $ 195,942 jti Reconatiation of Temporarily Restricted Nat Assets The following is a reconaliabon of acGvrty affecting the temporarily restricted net assets for KARC for the year ended Juna 30, 1999• Balance as of June 30, 1998 $ 47,801 Additions Unconditional promises to gwe for 1999 29,000 State funds received m advance for state designated reapients 76,801 Released from temporary restriction during 1999 (32,324) Balance as of June 30, 1999 3 44,477 9 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Finanaal Statements, continued For the Year Ended June 30. 1999 Leases KARL leases its main fac0ity, located above the Konawaena School in Kealakekua, Hawan, from the County of Hawau for an annual rent of $1 per year The lease term runs through the year 2034 The fair market value of this lease is not readily determinable 10 KONA ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDING SUBMITTED JANUARY 2000 CURRENT AUDIT KONA ASSOCIATION FOR RETARDED CITIZENS Financial Statements June 30, 2000 Jennifer L Goessrt, CPA An Accounting Corporation JENNIFER L. GOSSERT CERTIFIED PUBLIC ACCOUNTANT Ati ArmutinnQ Corporation 688 I4tioole Save; Scars 201 • Hilo, Hawui 96720 • Phooe (809) 969.3115 Fu (BOB) 969.7163 Independent Auditors Report To the Board of Directors of Kona Association For Retarded Citizens I have audited the accompanying statement of financial postion of Kona Association For Retarded Citizens (a nonprofit organization) as of June 30, 2000, and the rotated statements of activities, functional expenses, and cash flows for the year then ended. These financial statements aro the rosponsibility of the Organization's management. My rosponsibility is to express an opinion on these financial statements based on my audit. Information for the year ended June 30, 1999, is prosented for comparative purposes only and was extracted from the financial statements presented for that year, on which I expressed an unqualified opinion in my report dated December 15, 1999 , I conducted my audit in accordance with generally accepted auditing standards. Those standards requiro that I plan and perform the audit to obtain roesonable assurance about whether the financial statements are free of matenal misstatement. An audit InGudes examining, on a test basis, evidence supporting the amounts and dlsGosuros in the financial statements. An audit also includes assessing whether the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a roasonable basis for my opinion In my opinion, the financial statements referred to above present fairly, in all matenal respects, the financial position of Kona Associabon For Retarded Citizens as of June 30, 2000, and the changes in its net assets and its cash flows for the year then ended in conformity wdh generally accepted accounting pnnciples. a~ ~ December 14, 2000 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENTS OF FINANCIAL POSITION June 30, 2000, with Comparative Totals for 1999 2000 1999 ASSETS Current assets Cash and cash squrvalsnts S 342,459 3 247,871 Accounts raeetvabls 19,907 21,528 Hawan Island Umtsd Way recsrvabls 14,500 14,500 GranUCantrad rseavablas 114,107 89,883 Prepaid expenses 4,039 13,198 Total curtent assets 495,012 388, 778 Land 12,000 12,000 Property and egwpment - at coat (net of accumulated daprsuatlon ofi218,144) 154,175 188,573 Investments - Marlcatabls saturdias 9,439 Replacement reserves 9,525 8,520 Total assets S 680,151 E 575,889 LIABILITIES AND NET ASSETS curtent Iiabditlas Accounts payable S 7,812 S 15,804 Accrued Iiabdities 14,370 13,521 Payable to graMon 12,488 Deferted revenue 107,247 29,977 curtent portion -long tsrtn debt 2,200 1,800 Vacation accrual 10,890 11,491 Tatal curtent I~abd~Uea 142,519 84,881 Mortgage note payable, Isss curtent portion 193,331 195,942 Security daposds payable 588 919 Totallubdibaa 338,418 281,722 Nst assets Unrsatridsd 329,235 249,870 Tsmpannly resfidad 14,500 44,477 Total netassats 343,735 294,147 Total liabdltlea and net assets S 880,151 S 575,889 See aernmpanymg Notes to Finanual Statements 2 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENT OF ACTIVITIES For theYear ended June 30, 2000, Huth Comparative Totals for 1999 2000 1999 Public Support and Revenues. Public Support: Dept. of Housing and Urban Devebpmenk Section 8 Houemg Ass~atanee S 25,431 S 28,382 State contracts: DspsRment of Health 147,127 248,531 Department of Human Serncss 451,679 354,336 County grants 11,460 12,000 Hawed laland Untied Way 29,000 29,000 Otherconbibutlons 11,610 50,114 Non cash contnbubons 9,439 8,029 Total public wpport 685,746 730,392 Revenues Contrail aerncea 172,473 145,215 Tranaportatlon 3,222 3,652 Ctlent rent 14,841 14,663 Interest end other investment income 6,610 6,117 CIIeM fees 38,868 45,917 Speaal everts 25,870 25,364 UnreaNzsd pan on mvastmeM seaxrtles 590 Total revenues 260,474 240,928 Total public wpport and revenue 946,220 971,320 Expetaes. Program services 790,389 763,753 Support ssracsa-management 106,243 106,407 Total e~ernaa 898,832 870,160 Total change ut net aaasts 49,588 101,180 Total net asaeb, begmmng of year 294,147 192,987 Total net assets, end of year S 343,735 S 294,147 Sae accompanying Notes to Flnanaal StatsmaMs. 3 KONA ASSOCIATION FOR RETARDED CITIZENS STATEMENT OF FUNCTIONAL EXPENSES Year ended Juna 30, 2000 with Comparative Totals for 1999 2000 2000 Total Program Total Program Program SupparUng and Supporarig and Supporting Services Services Services - 2000 Services - 1999 Salanes 8 wages S 452,488 S 79,751 S 532,239 S 479,460 Employee benefits 53,359 8,686 62,045 53,460 Payroll taxes 49,887 8,121 58,008 54,654 Total salanes and related expenses 555,734 96,558 652,292 587,574 Insurance 9,967 1,623 11,590 12,439 UOlihea 5,001 814 5,815 7,970 Repairs and maintenance 6,307 1,027 7,334 9,654 Total occupancy expense 21,275 3,464 24,739 30,063 Matenab and wppliea 46,515 2,965 49,480 44,760 Profesaonalfaes 70,520 1,168 11,888 9,064 Vetucle expanses 37,401 37,401 17,377 Travel 1,435 235 1,670 4,806 Postage and shipping 2,456 275 2,731 1,913 Staff training 1,471 1,471 1,365 Interest 18,173 18,173 18,767 Direct seance costs 65,442 65,442 124,590 Loss on asset disposals - 4,313 Other 13,185 695 13,880 10,211 Total other operatlng expanses 796,598 5,338 201,936 237,186 Total expenses before daprsaation 773,607 105,380 878,967 854,803 Oaprneiatlon expanse 18,782 883 17,685 15,357 Total expenses S 790,389 S 108,243 S 898,632 S 870,180 Sss aeeomperryng Notes to FlnaneW Statements. 4 KONA ASSOCIATION FOR RETARDED CRQENS STATEMENTS OF CASH FLOWS For the Year Ended June 30, 2000 2000 Cash Vows from operohng acbvihes: Change m net assets S 49,588 Adjushnards to reconcAe change m net assets to net cash provided by operating acWitles: Depreaatlon 17,665 Non cash transaehons (9,439) Unrealized gam on irnestment (590) (Increase) decrease m: Account receivable 72,879 Prepaid expenses 9,157 Grants receivable (97,558) Increase (dsuease) in: Accounts payable (7,ggt ) Accnxd fiabdihes (10,935) Deferred revenue 77,270 Net cash provided by operating achvAles 99,846 Cash lbws for investing achvNes. Purchase of dspreaable assets (2,042) Reserve account fundmg (1,005) Net cash used by urvestlng aetrvAles (3,047) Cash flows for Rnanang actiatlas: Mortgage note pnncipal payment (y,01 ~ ) Net cash used for finenung actlvAks (2,pt t ) Net inaesse (decrease) m cash g4,7gg Cash, bagimng of year 247,671 Cash, end of year S 342,459 Sn secompar~yng Notes to F'nanaal Sttment. 5 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements For the Year Ended June 30. 2000 (1) Summary of Sianiflcant Accountinc Policies Oroanization: The Kona ASSOGation for Retarded Citizens (KARC) is anot-for-profift organization incorporated on December 19, 1968 in the State of Hawaii. The KARC provides vocational rohabilttation and residential services to persons with diaabilitiea rosidinq in Hawaii County. In providing residential services to clients, KARL administers a residential facility financed vla U.S. Department of Housing and Urban Development (HUD) secured mortgage Approximately sixty seven percent of KARC rovenues aro from federal, state, and local governments. Financial Statement Presentation The financial statements of KARC are presented in accordance Huth the standards of accounting and financial reporting presenbed for not-for-profR organizations. In accordance with these standards, the accounting policies applicable to not-for-profit organizations are used by KARL KARC reports its financial posdion and adrvdies according to three Gasses of net assets unrestricted, temporenly restnded, and permanently restricted net assets. All grants, contracts, and other wpport received during the year wdh performance rostridions imposed by the donors are recognized as revenue in the period roceived when performance roquiremants aro satisfied Contnbutions: All contnbutions are considered to be available for unrestnded use unless specifically restnded by the donor. Amounts received that are designated for futuro periods or rostncted use by the donor for speGfic purposes are roported as temporarily rostnded or permanently restncted support that increases those net asset dosses. When a temporary restnction expires, temporenly restncted net assets aro rectassed to unreslnctsd net assets. As of June 30, 2000, E7~,500 of net assets are subled to donors imposed time restnctions and are therefore ctassifled as temporenly restnded net assets Deferred Grant Revenue: KARC received cash payments in advance of incurred expenses for certain programs funded by governmental sources. These advance payments aro reflected as deferted revenue in the accompanying financial statements. Cash EcuivaleMS: For purposes of the statement of cash flows, cash equivalents consist of short-tens, highly liquid investments that aro roadily convertible into cash within ninety (90) days of purchase or donation. Comoaretive Financial Information: The information shown for 1999 in the accompanying financial statements is inctuded to provide a basis for companson with 2000 and reprosentS wmmanzed totals only Several line items for 1999 reflect rectassification for consistency in prosentation. B KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements, continued For the Year Ended June 30. 2000 Prooertv and Eauioment: Property and equipment aro stated at cost at the date of acquisition or at fair market value at the time of donation. Major renewals and txttermeMS aro capdalizsd while repairs and maintenance that does not extend the lives of assets is charged to expense. DeproGatiom is calculated by use of the streight-line method over the estimated useful lives of the properties. Deprodatlon lives range generally from flue (S) to forty (40) years. Donated Services: No amount has been rofleded in the statements for fiscal year ending June 30, 2000 for donated services inasmuch as no objective basis is evadable to meesuro the value of such services. Funilional Allocation of Exoenses• Certain expenses have been allocated among program ailivities and supporting services on the basis of estimates made by the management of KARC. Suooort and Revenue• All support and revenue aro considerod available for unrostniled use, unless spsciflcally restniled by the donor or by terms of the contrail or grant. Contrail and grant rovenues are recognized at the time an expense has been insured for an authorized purpose under the terms of the contreilual agreement. Rentaf Revenue: Cilents living in the KARC rosiderrtial facilely are charged a monthly rent that is subsWized through the HUD Section B Housing Assistance Program Rental rovenue is rocognized as the total monthly rent, net of the housing assistance subsidy Estimates: The preparation of flnanGal sttlemerrts in conformity with generally accepted accounting principles requiros management to make estimates and assumptions that affect certain reported amounts and disdosures. Accordingly, ailual rosults could dittsr from those estimates. Income Taxes: , KARL is ilassifled as atax-exempt organization under Section 5010 (3) of the U S. Internal Revenue Cods and is exempt from Federal and State income taxes. (2) HUD Cash Reserves Under the HUD rogulatory agreement, annual contributions of 57,224 are roquirsd to be made to the reserve roplacemeM account for the HUD proleil administered by KARC. Ths cumulative reserve balances aro maintained in federally insured bank accourns. The balance of the reserve roplacememt account as June 30, 2000 il Sg,52S. 7 KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financral Statements, continued For the Year Ended June 30. 2000 (3) Fair Value of Finanasl Instruments KARC financal instruments mGude cash, cash equroalents, and over-the-counter secunties held for trading purposes. KARL estimates that the fart value of all financial instruments at June 30, 2000, does not differ matenally from the aggrogate canyrng values of its financial instruments recorded in the accompanying statement of financial posrtion. (41 Prooertv. Eawoment. and Imorovements Property, equipment and improvements consist of the following: Improvements S 12,529 Fumrshings and egwpment 31,902 VehrGes 95,492 HUD residence 230,398 370,319 less accumulated depreGatron 218,144 Net Fixed Assets S 154,175 Mortaaae Note Payable At June 30, 2000 the Pro1ed owed 5195,531 to the DepaRment of Housing and Urban Development. The moRgaps is payable in equal monthly installments of 51,883 consisting of interest at a rete of 9 25 percent per annum, with the balance of the payment applied to the unpab pnnuple balance. The note is secured by the budding that has a net book value of 5115,333 at June 30, 2000. The mortgage matures in January 2025. Future matunbes on the note payable are as follows: Year ended June 30, 2001 2,200 Year ended June 30, 2002 2,500 Year ended June 30, 2003 2,900 Year ended June 30, 2004 3,400 Year ended June 30, 2005 3,700 Thereafter 180,831 Total maturity on note payable 195,531 Less current portion 2,200 Total long term note payable S 193,331 e KONA ASSOCIATION FOR RETARDED CITIZENS Notes to Financial Statements, continued For the Year Ended June 30. 2000 (81 Recontaliation of Temoorenly Restncted Net Assets The following is a recontalration of activity affecting the temporanly restricted net assets for KARC for the year ended June 30, 2000• Balance as of June 30, 1999 S 44,477 Additions Unconditional promises to give far 2000 29,000 73,477 Released from temporary restnction dunng 2000 (58,977) Balance as of June 30, 2000 S 14,500 Q Concentration of Credit Risk KARC maintains bank accounts at three financial instrtutrons. The FDIC or NCUISF insures accounts at these institutions up to 5100,000. Cash at one of these InstHWons exceeded federally insured limits. The amount in excess of the NCUISF Iimrt totaled 528,443 as of June 30, 2000. (81 Leases KARC leases its main fatality, located above the Konawaena School in Kealakekua, Hawarl, from the County of Ravioli for an annual rent of 51 per year. The lease term runs through the year 2034 The fair market value of this lease is not readily deterrnrnable 9 KONA ASSOCIATION FOR RETARDED CITIZENS dbs KONA KRAFTS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDING SUBMiTfED JANUARY 2000 IRS FORM 990 808-969-3115 MAY 11, 2000 KONA ASSOCIATION FOR RETARDED CITIZENS P.O. BOX 127 KEALAKEKUA, HI 96750 DEAR SIR: ENCLOSED ARE THE ORIGINAL AND ONE COPY OF THE 1998 EXEMPT ORGANIZATION RETURN, AS FOLLOWS... 1998 FORM 990 EACH ORIGINAL SHOULD BE DATED, SIGNED AND FILED IN ACCORDANCE WITH THE FILING INSTRUCTIONS. THE COPY SHOULD BE RETAINED FOR YOUR FILES. VERY TRULY YOURS, C~ JENNIFER L. GOSSERT, CPA AAC Filln Instructions Prepared for. Prepared by: KONA ASSOCIATION FOR RETARDED CITIZE JENNIFER L. GOSSERT, CPA AAC P.O. BOX 127 688 KINOOLE ST., STE.201 KEALAKEKUA, HI 96750 HILO, HI 96720 1998 FORM 990 PLEASE SIGN AND MAIL AS SOON AS POSSIBLE. MAIL TO - INTERNAL REVENUE SERVICE CENTER OGDEN, UT 84201-0027 aoa, awe+~ ~ Return of Organization Exempt From Income Tax ' Porn 990 ~ Dnd.r atdOtln 507(e) of the intoner wmnue Cad. (erupt Dhck loop benel0 Wq or priratt fobndstlonl or section /9/71:111) nonesempt eberlUDls Wd D.pr•n.,t °r m.Tnrury I Thh Fdrm h Opan im.mr w...°.5•nr,oe , Notd The organlaabon may haw to use a copy of this ntum to satlsry slate reporting regmnments to Public Impaglon A For the 7990 ctldnddr ytdr, Ow tsx yddr srlo/ bt Innl 7 1 , t 990, and endln tg 9 9 8 c"r* q~ C Name of orpanwbon ~ IdamlOCatlon number Qen~,e• °••IRe 1b"°` ONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 pool a m,er ,~p,m 9i•~ Number and steel (or P 0 box If mall Is not delivered to street address) Room/sude E TNephone number jJ,FK°,rm sp.u•° .O. BOX 127 808-323-3151 ~MUm n,,,. Clry or town, stale or country, antl ZIPW F Check ? If exemption I~r"o0awriv°I EALAKEKUA, HI 96750 applrahonlspendinq G Type of oryanl7abon ~ (:xampt under 507(c1(3 1~ (Insert number) OR ? section /9/7(a)(t) nonexempt chardable trust No r. Seotlon 601 e 9 exam o nlatlont and40/7 a t non.rr t oharrtabb truth MUBT atbeh . eom Nted 8oheduN A Form H(a) Is this a group return hhd for aMlelesT Yes No I If edher box in N Is checketl Yea: enter four4ipe group (bl 17 Yes; enter the number of af011ates for which thh exemption number (GEN) ? _ _ _I~e-~_ _ _ _ _ _ _ _ return is hhtl ? J Accounting meNOd ~ Cash I Accrual ~ b Inn • Mum el•0 w ,r•OOn oorwe • ru Yn NO er a etl ? M. Check hen ? d the oryanrotton's gross receipts an nombly not moo Nan 525,000 TM oryanmtlon need not flh a return v,ih the IRS, but d R Honed a Forth 990 Psckaa m me mad R should flh a plum wltlrout flnanpsl dad Somt shies ndrdn s COmdlnt rdNm Fartn 9 o n th 1 n t a Use a end o1 ear Revenw ndlee and C • In Net Meet or Fund Balances t Coninbu0ons, qdh, graph, antl simXar amounts rearved a DrrertpuDlksupvon td 58,143. D Indlredpublwsupport tD 29, 000. e GovemrmntcontnbuDOns(gnntsl to 12,000. d Tolsl (add Imes to through 1cl (a0ach scheduh of contnbutonl (cases 91,114. nonrasni 8,029.) to 99,143. 2 Program servwe menus rnehding gowmrtrent fees and contwco (from Par! VII, Ilne 93) 2 7 r 4 3 eMrttbershrp duo and asseesmenh 3 / Interest on savrrlgs sod [emponry cash inwatnenh / 6 , 117 . DMdentls antl inhnst from secureW S 0 a Gross Hots 6t b Less rental expense e c Net nnul mcorte dr (loss) (subtract one 6D from Ime cal Oe ~ 7 Omer Investment Income (descnDe ? 7 0 a Gross amount Nom sale of assets other A Securekn b Olhar Man Inwntory . b Uss cast err o[Mr base and nba expenses 1 ' e Galn or Ilossl (awen scnetlub) <4 1 0 Net gam or (loss) (combine Irne columns (A) and (Ol) STMT <4 , 313. > 9 Special ewnh and actrvdbs (attach scDedub) s Gross nwnue (not htlkldhg S of contnDugons reported on Ilne ts) 9 'd'~~ ire' D Uu dlrett expensa oNer man Nntlnberg expenses 9 d Nei meome or poet) tram spedet eveme IsuDlracl doe 9p trorn Xm 9a) 9s 10 a Gross ohs of Inwntory. bu nNms antl agawsnas 1 D Leu cost of geode sold 7 d Gross prollt or (loss) hom uW Of Inwntory (aOaM fcAedub) (suDtnst Ilse tOD from bee toe) t tt ONer menus (hom PartVll.lkle 703) tt 5 4 . t2 Totureetnut atltl bon td 2 + 5 7 ed 9c toe red tf t2 1~ Propnm nonce (from Ilne K, column (0)) 1 5 • 1 / tvWagement antl general (from Ilne I/ column (C)) t • 10 2 0 4 . ui~j 10 Fundgbhq (hom Ilne M, cOWmn (D)) t 16 Payments to a191hhs lafhch scbeduh) t 17 Totsl O add INN 16 and M cdunn A 11 2 ~ 4 7 t0 Exceeeorldelk0)1ortMyur(suMractXnet71rom9ne12) 10 1 1 1 19 NN useb or Nod Whnea at ttphnng of yur (hom Wb 73, column (Al) t 19 2 , 9 7 . 20 Otlrer Clanger h eel asset or Nod luthrrcee lamtlr espWutlan) O 27 Net :sash err Nnd Dabnae at eIM o1 r corribkle hires f 0,10, and 20 21 4 LFIA For PaparsWt Rtdestlon Ael Notkt, eN pt0d 1 ol0a saparah Inletelbee. Form 990 (1996) r -rrae 1 07270511 796386 RARC 082 BONA ASSOCIATION FOR RETARDED RARC,1 Farm 2758 Application for Extension of Time To File (Rev Juna,999) Certain Excise, Income, Information, and Other Returns oMe Na ,s.s-o,.9 oepelNNM Y IM TneWy MemY Rewwe Sera. ? Flle a separate applleatlon for each ntum. Please type or Nam. Employer Itlendd4tlon numbs pool File the KONA ASSOCIATION FOR AE TAADED CITIZENS 99-0108896 onginal and one Number, street erW room p scale no (a p0 bar no d mail w not tlelivareo m atreai atldrya) copy by Ne due date for filing your return See ? . 0 . BOX 12 7 :ns0NCt10na City fawn or post alAp, state antl LP coos For ¦ /orapn atldrga, aN inepueban KEALAKEKUA, HI 96750 Note: Corporate income tax return f/ers must use Form 7001 to request en extsnsan ofCxns to Ids PeRnershrps, REM/Cs, end trusts must use Form 8738 to request sn extensron o! funs to tr7e Form 1083, 1088, or 1041 7 I request en extension of time until MAY 15 2000 , tc file (check only one)• Form 706-GS(D) Form y---~, Form 1120.ND (sae 4951 taxq) ~ Form a912 Form 706•GS(T) Form 990-7 rtrust other than abo+e) r~U- Fonn ~52~' ~ Form 86,7 Form 990 or 990.EZ From 1041 (estate) (ass matrudiona) [l Fann 4720 ~ Form 8725 Forth 990.8L Farm 1041-A ~ Form 5727 ~ Form BBOa Forth 990.PF Form 7012 ~ Fonn 6069 ~ Form 883f If the organization does not have an office or place of businssa In the Untied States, cheek this box ? 2a For calendar year , or other tax year bteplnning JULY 1 1998 and ending JUNE 30 , 1999a b If this tax year Is for lest than 12 months, cheek reason• ~ Initial return ~ Final return Change in accounting penod 3 Hac an extension of time to file been previously granted for thin tax year? Yes No a State in detail why you need the extension ADDITIONAL TIME IS NEEDED PENDING COMPL ®ION ~ OF THE ANNUAL AUDIT 5a If this form is for form 708-GS(D), 70&GS(17, 990.BL. 990.PF, 990.7, 1041 (plate), 1(M2, 1120.ND, 4720, 6089, 8812, 8613, 8725 6804, or 8871 enter the tentative tax, lass any nonrefundabb eredita Sea inatrucbons S b If this form Is for Form 990-PF, 990.7, 10a1 (estate), t0a2, or 8804, enter any refundable credits and estimated tax payments made Include any prior year overpayment allowed as a cedlt j c Bafanc• due. Subtract line Sb from hoe 5a Indude your payment wdh Chia ibrtn, or depoad vyit)t FTD coupon If required See instructions s Signature and Vsrifleation under panaibes of pequtY I tledara Nat I nave examinq Inn farm, inclutllnp acMmpanylnp sUietlulq and snhmenb, antl m Ina Dql of rtry Ia1owlWpe and tiNM, R n true, corteet antl rAmplele and foal t am aulhmietl m prepare inn lone 0Q /1 alon.are? ~tiK•f Gti- rlle? DALE ABE, C.P.A. oab? 02/11/00 FILE ORIGINAL ~ NO ONE COPY. The IRS will show bNOw wMther or not your applleatlon Ie approved and will return the copy. No ce to Applicant - To Be Completed by the IRS We HAVE approved your applleatlon Please attach this form to your return e HAVE N07 approved your application Howavx, we have granted a t0-day grade penod from the later of lhs date Chown bNow or the due date of your return (inducting any prior extensions) Thle grade penod is eonaidaret>RE~~Ia~¢~s~~ES time for elections otherwise required to be made on a timely return Please attach this form to your return. IRS - OSC / 616 We HAVE NOT approved your application. After considering the reasons statatl in item a, vse cannot grant your request for an extension o1 time to file. Wa ors not granting the 10-dsy grace period. FEB 1 s ZQ~O We cannot consider your application because It was filed after the due date of the rMUm fw which an extension was requested. Other Ar'±Q~ I IT~ Oveflor Data If you want a copy d this form to be rekametl to an adtlraas other than that sttawn Yfae, plaaae enlar tM atldraae m w4iieti the copy shook! W sent. Nartia ptwe JENNIFER L. GOSSERT, CPA AAC NYmoar event aii0 roan a suib ro (a PO tree ro it mad is oat delnered m lintel ytlrga) a 688 KINOOLE ST. STE 201 Prlrlt cIM. loan, or pat oaten, stw and 71P soda. Fv • mmtTt adtlma, tree iga9allgia. ~ 1 J 1 V r i' ^ HILO HI 96720 Fa Paperwork Reduetlon Act fla4lp, tree back W ram. 1,2758 (Rae e-sq as !:i:.- 0 i ~xT"i.~ ev.ewo ^'1 .Hr -J c:r-.:r~~.~rti G!~ECTOR IEr:.:leaflSS.OI~P'-.,OC[5;.6YGC91f8t Fora, 2 f S8 Appllcatlon for Extension of Time To File (w.,wtareeq Certain Excise, Income, Information, and Other Returns oanerra ,sasa,u agrarutd d M Totter wr~r gwrr sane ? FBe a wperaN applkation for each retYfn. Plwaa type ar Watrr Empbyar Wananutbn numar pm Flrnt. KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 ortylrtal and orte Nuntbw, alnd, and rttntt or rub na (or PO. ttoa no. d tntW r nd daWaratl to dtad address) copy by 8,a tlw data !or fdvtp your return S« P . 0 . BOX 12 7 inauuUione CiN. town or peal asks abb. atai 7JP ooa. For • rantpn adtlrasa, ass Ina4tto,iaa KEALAKEKUA, HI 96750 Note: Corporate rneome fax Tatum f9ers must use Form 7004 to request en sxtenaan of tune fo rile Psrtnsnlups, REMfCs, and frusta must use Form 071Q to request en sxtensron of flme to die Form 1003, 1080, ar 1011. 1 I request an extension of tlme untll FEBRUARY 15 200~~to file (check only one). ~ ? Form 706C5(D) ? arm 990.7 (eee. 401(x) ar 40e(e) (rwt) ? Form 11 zo~10 (see a957 tea..) ? Form eel2 ? Farrn 70e-GS(T) ? Fain, 9si0•T (Wet oCw that, abae) n~~-t Form 3S20.A ? Form eat] Form 990 or 990-Q ? Farm 1641 (estate) (tee tmbtlelk,n) I__I Form 4T2D ? Farm 0773 O ~ Form 9DFBt. ? Farm 1041,A ? Fann 5777 ? Farm aces ~ ? Form 990-PF ? Farm 1042 ? Farm 8089 ? Form eW1 If the oryantzatton does not have an ofice or place of business to the Unltsd States, check this box ? 2a For calendar year , orothertax year bey,nniny JULY 1 1998 and ending JUNE 30 1999? b If this tax year is for less than 12 months, check reason ? Initial return ? Final return ? Chsnye In aecauntinfl penod 4y 3 Has an extension of time to file been prwtously granted for this tax year? ?Yas ®No 4 Stets to detail why you need the extension PENDING COMPLETION OF THE ANNUAL AUDIT Sa If trw form is tar Form 70e-GS(O), 706d'S(T), 990-BL, 990•PF, 990.7, 7011 (eiap), 7042, 1770•ND, 4726, tl0eif, 8812, eel 6725, 9e04, ar 88]7, elver tM tereatNe ts>S leas arq rxxeefundebM,:redRS See Instructlona S b If this form is for Form 990-PF, 9>a0-T, 1041 (estate), 1042, or 8804, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credo S e Balance due. Subtract line Sb from line Sa Include your payment with this form, or deposit with FTD coupon d reQUired See tnstrudlona S Signaturo and Verification Under PsrtNRaa d paQury, I daWU eW 1 tiN saatwYtad tide larrrt, ualWbq atmnpartrYq sdrdulaa and slrrrras, sM b eta bar d ttry basl+ls/pa and baYd, a Y Irw, oonsd, aML~mnWab, rd thr I am r4halaM b pnpan dr tarn `~J~p I Q siyrwa~`-~-~-C~S' nu.? ~.,`G WN? 1, l l /~..1~ l FILE ORIGINAL AND ONE COPY. The IRS oval chow below wMlher or not our IiuOon is a roved and well return the eo N c~ to Applicant - To Ba Completed by the IRS HAVE approved your appliptlon PINSe attach this form to your return ? We HAVE NOT approved your applieatlon. Howwer, ws have goofed a 10-day grade rood-1 • dat shown below or the due date of your Tatum (Including any pnor sxtensiona?. This grade penod s eon ~ {i nsion of time for elections otherwise required to be made on a timely return Plgse attach Mis f rm re um ? We HAVE NOT approved your appliatlon. ARK considenng the reasons stated in hem ~tpr~it+r ~t for an extension of time to file. We are not grantlnp the t0~ay grace penod. ~ g ? We cannot consider your appliption bequse it was filed aRer the due date of the return or p.ptagslvi ~Das re4usited ? Other U Dkaabr Ow It you want . acopy a ihb farm to be naarrd b an address Dees tMn that etwtm ebae, place enter 0w eddreee b adsch er oapy ehasd w eenL tJeatsifa L (3aaert, CPA PNep ~ya~ aa~~epq~ er ryPe N~~'006I1.1aWle . n0. drrW la nal daYwWbWaal adWaaa) q lJq,,oar, d . dsra. tM 7Y sects Far • Irsiptt s4Msaa. aw YtsatnYlata For Paprwrk Redueflon Ad Noaoe, see back of town Faint 2758 (rtes. s.ael w err mores °p^^~1"~ KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Paget tatlrtMRt O All orpanuadtlns must complete column (A) Columns (B), IC), antl (D)are ngWrM or slctlon 501(c)(3) antl ®F t1Ma 4 o anuatlona and section 19R a 1 nonwm t Cnanh0le trash but D tar omens Do not inWtle amounh reported on I,ne a Pro nm 6D 8D 90 100 or 78 at Part I IA) Total (servkia (C~nll tluulapement (D) Funtlnump 22 Gnnh and allooaDOns (attach SchetlUle) ~e s nanrr, i 22 - 23 Spet,hc assisUrrca to,ntlmtluab (attach schedub) ZJ I 21 Benelils Da,tl to or for members (attach schedub) 2/ 20 Compensation at otficers directors, etc 2S 4 3 , 0 0 0 . 0 . 4 3 , 0 00 . O , 2e O[nersalar,esantlwages z6 436,460. 404,900. 31,5 0. 27 Pension Dbn contnbutions 2T ze Gtheremplayeebenefds 2e 39,775. 33,411. 6,364. 29 Payroll taxes 29 68, 339. 57, 405. 10, 934. 30 Prohsslonal tuntlnisinp fen 30 3t Accounbnp teas 3t 9, 0 6 4. 8, 15 8. 9 0 6. 32 Lepaltns 32 33 su/plNS .33 44, 760. 42, 074. 2, 6 6 . 31 Telephone 3/ 37 Postage antl shipping 3ti 1, 913. 1, 62 6 . 2 8 7 . 3e oaupancy 3e 30,063. 25,554. 4,50 37 Egwpment nnhl and rtlalntenance 37 30 Pnntinp and pubbcaUOne 30 3g Travel 3p 4, 806. 4, 325. 481. a0 Confinnas, conventions, antl mKUnpe 10 It mtmst n 18, 767. 18, 767. 42 DeDrecialion, tleDlebon, etc (attach scnetlule) 12 15 , 3 5 7 . 14 , 5 9 0 . 7 6 7 . eS Omer eapenge pbm,xe) a OTHER 13e 7,011. 6,411. 600. DVEHICLE EXPENSES 13D 17,377. 17 377. eDIRECT SERVICE COSTS 13e 124,590. 124,590. tlSTAFF TRAINING 13tl 1,365. 1,365. / 11 Tar Nneeen.l ~w~ I.a mr a: and ul w ,a°~n.",o°°;sitlnpooiunni14iDA'rytl~ 11 862, 647. 760, 553. 102 094. 0. Be/onln/ of JoNt Coati. - Oi0 you sport,n column (B) (Program service) any lolnl cosh from a comDinetl etlucationel amDegn antl Nntlnn,np sohutetlon~ ? O yK ®No R YK; enbr (q the agprpab amount of mea Imnl cosh S , (iq me amount alloatatl to Proqnm eerv,cei S iu the amount allwte0 to Mana emem and enenl S antl n me amount aaouhtl to Funtlngin S Statortwnt of P Sarvip Accom Inhmaaata what b me Dryamarion's Drunery eaempt puryoee7 ? SEE STATEMENT 2 Pro4n~~m Sarvlca N a~"t~bne nYMt CA1be eMY O/~Yt G"Ter W~Iw~IMb N ~ tJ! ~n0 m~tlw ~n~ !dY M iwn0~ el tll~b wFW V"aYSMy n~rY. fib. DbwM ~-YNaO reWY~11~,b cur ~ 1,011,1.~1Yetl~ leeeeen eD1tgDI ~e lA ae.n.++e~ ~a ~Mr(gt,l rv,~rpt e1,Me.ab euw ~n,p ~Ye ~,av eM ~nY,l e, emb ~,a l~~ br 701(dq ~W ~ssee,u Y oe,w.l (~1 a0•, nie eW 7) bu~11i WI eoeenr reroeral a GROUP HOME FOR 5 DISABLED INDIVIDUALS IN W. HAWAII. PROVIDE HOUSING, TRANSPORTATION, TEACHING MONITORING OF BASIC LIVING SKILLS. Gnnhantlalbea ns 98,500. b EVALUATION ~ TRAINING PROGRAM FOR DEVELOPMENTALLY DISABLED INDIVIDUALS IN WEST HAWAII. Onnh a allay a 8 7, 15 4. c ADULT DAY PROGRAM FOR PERSONS WITH DISABILITIES IN WEST HI. PROVIDE RESPITE, RECREATION, BASIC SKILLS LEARNIG, WORK SKILLS LEARNING. Granh antl aaoeatlone 4 0 6, 2 0 0. d ADMINISTER FUNDS FOR REIMBURSEMENTS OF RESPITE & OTHER SPECIAL NEED EXPENSES APPROVED HY STATE'S DEPT. OF HEALTH FO PERSONS WITH DISABILITIES IN HI OUNTY. antl 168 699. er rem etlub Grarae eno etesutlom S f Toyl M ram Santa auras ehoup One M, eoWrm B ram wrvkee , ,r-'ia 2 07270511 796386 KARC 082 BONA ASSOCIATION FOR RETARDED KARC_1 Form 990 (1998) KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Page3 Balanco Shasta Nate: When regwrea, anacheo scheoules antl amounts wahin the tlescnptlon column snoulo De (A) (B) for eno-ofyear amounts onN Begmninq of year EnA of year 4S Casn-non-interest-0eanng 52, 869. es 86, 762. 4e Savings ana temDOrary Casn investments 158 , 914. ee 169 , 429 . e7 a Accounts receivable e7e 21, 5 2 6 . b Bess allowance for eoubtlul accounts e7b 35 , 7 5 5 . e7e 21, 5 2 6 . ee a PNages ncervabN ree 14 , 500 . b Less allowanaforaouDtlulaccounls ee0 14,500. eee 14,500. w Grants reurvabM 41, 31. ee 8 9, 8 8 3. SO ReceivahNS tram otecert, arrectan, trustees, ana key employees (attach scneaule) SO Sl a Otner notes ano laane reaervabN Ste D Less allowance for ooubtlul accounts S10 Stc ~ S2 tnventottN for saN or use S2 S3 Prepare expenses ano Oeferno ChargN 3 , 3 91 . Se 13 , 19 6 . 51 Inwsttnenls - seaurMN Uttach scneauN) Se Sea Investments • Jana, burlainge, and eawpment Oaals Sea 0 lna accumulate0 aeDrecubon (attach scnMule) SSh SSe SS Investments • other Se 57e Land,Dwlaings,anaegwpmenibasrs 37e 379,051. h LeN accumu4ted oepncatron e7e 1 B, 4 8. 2 0 7, 8 9 8. e7e 18 0, 5 7 3. Se Omer assets laescrtbe ? ) s raw ueete aaa lines e5 tnrou n se must • ual Ilne 7e 515 , 15 8 , e 5 7 5 , 8 6 9 . eo Accounts payable ano aceruea sxpensN 4 0 7 e 5 4, et coots pay,bl. et 82 076. ez 29 977. e2 Detuntl nwnw r r 8, Loane from afeare, alrecton, tmsteN. ano key employees e, M a tu-exempt Bono lubeelq e1e n rAOrt9agee ana an.r noes wyaDw 19 9 , 318. eee 19 7 5 4 Qe Other IuDaaIN (deeanM ? ) e r rn un a Imes m n 322 171. ee 281 722. 0rgantallora that Pollbt SFAe 117, enest hen ? ana compote IrnN 67 Mrough 69 ana IInN 73 antl 7e e7 unmtrrcted 145,186. e7 249,670. ee iemporariy reatncted 4 7, 801. 4 4, 4 7 7. H PennenNttY rNlrreUa ~ OreaaWtlaaa uul ao oat letlaw aFAe 117, chest nere ? 0 ano comDMb unN 70 tnrougn 71 ~ 70 Capaal stack. trust pmppel, ar glrtMt tunas ~ i 71 Pata-rn or Upaal suNlue, or ana, DurMlkrq, ana purpment NM 71 72 Retamea Nmmgs, ertaawmerrt, aaumu4teo ktcarrte, or oNUNnde 7Z 79 total net eaere w hna Da4rrea toad YIIN 67 tltrorgn ee lHl YnN 70 tlrrough 7Z, column (A) must equal hoe 19 ena column (9) must pwl ene 2t) 19 2 , 9 8 7 . 73 2 9 4 , 14 7 . 71 7ate1 rlaDlleles eM ner aaN / hoe De4nm (em Mnet ee ana 73) 5 r 5 7. Form 990 a avnlaDN for publk mspectlon ana, for some peopY, serves N the Orrmery or sole souru of ktortnabon about a W Naubr oryanratlon How the Dubec perprvea an arganmbon m such aeN may W 0elemenN DF ore Mom+etlon pmentea on of ntum Thenton, Phase make sun the Mum n rnmDW ano acanu ano Nay descnaN, m Part III, tM orgmmtlM'e Dragnets antl accarrrpealrmenb t -n•ee 3 n~~~nStt 7oF~aiR iCARC 082 RONA ASSOCIATION FOR RETARDED KARC 1 Form 990 1998 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 p+ ee Reconctliatlon of Revanw ppeer Audltsd Reconcillatlon of F~cpenses ppeerr Audfted Flnandal Statements with Revenue psr Flnandal Statensersts With Expsnws per R Re m a Tohl revenue, gams, and other support ~ Tohl expenses +n0 losses per per auEGeG fin+ncul shtemenh ? + 9 6 8 , 12 0 . auerteG On+ncpl st+hmerris ? e 8 6 6 , 9 6 0 . h Amounts mcWGeE on une + out real on b Amaunh inclutlM on hoe + Dut not on tine 17 Form 990 Ime t2, Form 990 (1) Oomted smM:+s (1) Net unre+lizeG pins and use of hcilGles S on investments i ~ (2) Pnor ywr wWttments (T) Oon+ted services repartee online 20. +nE use of hmhhes S Fonn 990 S (3) Recowrtes of poor (3) Losses reporleE on ye+r goofs S line 20. Form 990 t (q Otner(speciNl lel OtMr(specM) ' s STMT 3 f 4,313. AtlE amounts on knes (t) [hrougn ? b Atltl +mounb on Ilne+ (1(tnroupn (e) ? b 4 , 313 . c line a minusline b ? c 968, 120. o une+minuslineb ? c 862, 647. tl Amounts incluEetl on Irne 12, Form tl Amounh inclutleG en hoe 17, Form 990 Dut not on line a 990 Out not on line a (t) Invaatmentexpense+ (t) InvastmeMsspentes not Inc1uGW on . , not rnGUGetl on ' line 6D, Form 990 f Ilne 6D, Form 990 S (2) Other(specry) (2) Other(specry) STMT 4 f <4,313. _ Add+mounh an hoes (f)ared (T) ? tl <4, 31 AEG +mounh on lrna (1)+ntl(T) ? tl e Total revenue per line t 2, form 990 a Tohl espenses per Ilne [7, Farm 990 (unecpmsunetll ? 963,807. pmeeplue6netl) ? e 862,647. V Llst of O(fleers, Directors, Trustees, and Key Empl ees Tuft acre one ewe E not eompens+tetl ) TItM+n0 +wrepe noun ~C) Comperreetlon ( cenawmne m (E) Expense (A) N+rm and +EGnes Der wok Eevn hE t0 II n01 p~_ , enter p,,. aw~ietlr oNir illowina+ SEE STATEMENT 5 43 000. 0. 0. a n >s Dk +rry oOker, Elector, trusty, or keY employe receNe apprep+h cprreen+atlon of moo Owl t100A00 hem your tl~platloq>!m Y rehfeE Erpenmtlon+, of tMrIM moe lll+n 510.1100 tNe DrevtlW by ON relae0 orwntr+tleruy O Yw.'+~eh er3retluM ? tee LX J B+ Form 990(1998) KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Pages Other Information Yes No 70 Dltl the orplnrntion engage In any actrvlty not pnvrausly nDORetl to the IHB~ II Yes; attach a tletallltl descnptlon a1 each actrvlty 78 X 77 Wera arty changes nutle In the orpanlanq or goveminp documents but not reported to Me IRS 77 X II'yet: attach a conformed cdpY of the changes 70 a Oxl the organrrabon have unrohtM business gross income of 51,000 or more dunnp the year covered by this retum~ 7Ba X 0 Ii Yes' has it filed a ha retain On Form 900•T for thrl year' N/A 78h 79 Was there a Ilqultlatlon dissolution termrnatlon br suDShntlal contraction dunnq the yeah 7p X II Yes: attach a statement, 80 a le the Organl7at10n relatetl (other than by affOCladbn WIN a shlewltle Or naddnWlde Organlradon) Ih10UQh bbmmbn rtNmberohip, govemrnp batlles, trustees, oMcero, etc to any other exempt or nonexempt orpanlndon~ 801 X D R Yes; enbr the name of tM aryamnobn ? and check whether R is exempt OR nonexempt 01 a Enbr tM amount o1 DalRlcal expentlduns, dlrett or mtluep, as Oescnbed m tM instmctlons for Ilne 81 ~ 8te 0 . b Dx1 the organlaDOn hM Form 1120•POL for this yeafl 81b X 82 a Dxl the aryamv0on reurve tlbnahtl servkes or the use of mahnah, egwpment or hp18Ms rt no charye or at substaniMly Mss than hrr rental value? 821 X b If Yes; you may mtllcab tM wlw o1 tMU Reins Mn Oo not IncWtle Mis amount as nwnue in Part I or as an expense In Part II (See Instmctlons for npoRlnq In Part III) 820 N/A 83 1 Dx1 the orpanraabon compy wRh IDe public inspection requirements for reNms and exemptton app9ratlons7 ~1 X D Dld the orpanrzatron compy wRh the drsdasun requlromenb rolatioq to quxt prd quo cantnbutlons7 ~b X Ba a Did the organlratlon solu:R any contnbubons or gl8s that wero not tax detluplble~ Bel X D II Yes; tlx1 the orpamrabon include wRh every solx:lMDOn an a:grass satement that such contnbutlans or glth wen not tutleduprbb'+ N/A ~p 88 501(c)(a), (S), or (6) organlaatlons - a Were subshnhaly all dues nondetlucUDle by membero7 N / A 881 D Did the orpanlrabon make Dray ln~ouse IoDbyrnq expenditures 0152,000 or less? N /A 88b If Yes' was answered to either 85a or 85b, do not compleG BSc through BSh below unNSS me oryanlrabon rocervetl a warverfor proxy tax awed for the poor year a Dues, assessments, and srmllar amounts from members 881 N/A d Section t62(e) lobbylnq antl polRkal expendRUns 881 N A e AggrepaO nandeductiDM amount of section 6033(e)(1)(A) duet nottCel BO N A I TaxaDM amount of IoDbyrnq and poatlpl exgntllum (line 85d Mss 88e) BSI N A q Does the orpanlradon eNCt to pay me sectlon 6033(e) tax on the amount In 85r N A ~ h I1 section 8033(e)(t)(A) Dues nodce von seM, does the orpantratlon agree to add Me amount rn 85f to Its roasonaDN estlmah of tlues allacabN to nontleduplDN IooDymq and pollkal expendlWne for the fo9owlnp tax year? N/ A 98h 80 SOt(cl(7)orpamvtlons-Enter a InRpban fees antl capRal contnbubons included on line 12 N /A b Gross recerpM. Inpuded an line 12, for pubes uN of ciao IaetlRMe BA N A 07 SOt(c)(72)oryanwdons -Enter a GrosalneorMhomrtremWnorshereholden 871 N A b Grass income from Diner sources (DO not net amounts tlue or Dab to oNer sources against amounb due ar nurvetl from Mem) 870 N/A 88 At arty dine dunnp the year, da the orpanmtlon awn a 50% br gnaur lntemt In a taxaDN eoryontlon or paRnerohrp7 ll Yes; camDMte PIR IX 80 X W 1 SOI (c)(3) orpanlnbons -Enter AmauM of tax unposed dump the year under section e91 t ? 0 . , sectlon 1912 ? 0 • , sectlon 1955 ? 0 . b SOtlc113) and SOtlcllel oryanlaatlons - Dk the orpancaoon engage In any sectlon e9S8 exase Denetlt tronsactlon dunnp tN year9l} Ye:: atlach a shhment exphnrnp each Innsectlon 0 b X s Enter Amount of tax rmposW on the orpanrratlon manages ar dkquapOM persons dudnp the year antler sections e912, 4955, and 4958 ? 0 1 Enter Amount of tax In 89c above, reMnDUned by tree orpanmtlon ? 0 90 1 Llsl me sates wM winch a copy of mM retain n teW ? N / A b Number of employees employed In the pay penal that mcludn hMlth 12.1998 90b 3 O 91 The books anlntanof ?KONA ASSOCIATION FOR RETARDED CITIZ teNphoneno ? 808-323-2626 I.anudat? P.O. BOX 127; KEALAICERUAr HI zIP+? ?96750 92 Sectlen e9e7(aN 1) nonexempt cMrRaDM tnab 81YIp Form 990 M tleu of Ferro 1011 • Cneral hen ? Q and enbr the amount of hx-exengl MRemt recenel or acaued durYp tlM hx yeer ? ~ 9t ~ N / A r n-'ie 5 07270511 796386 KARC 082 BONA AS&OCI]?TION FOR RETARDED KARC_1 t-J2Pdx Q3Q2IrdZ32i 2103 NOIb`dIJOSSfI ~afNOx Z80 J2[1ix 98£96L TTSOLZLO w <<•_~ noun OZL96 ~ e+dlz IH 'OZIH isoappt put t o z • ass ' • ss 3zooNlx e e 9 / (p06ultlw4~l.: p 4uo.al ~ NI3 J`dfd fldJ 'Z2i3SS09 'Z 2Z33INN3i' ztno6,oloweus,uwd saustlud ~ a60ltlu 5 0 0/ t t/ s 0 ~Q unltoa: pna ncc•a~d a• q00 ~ 'sauetlud 0pq Dut 0wtu Wutl,o 0061 qe0 ,0apla to unleuag u0N 2tOZJ32tIQ' / uetg 3AIZIIJ3X3 'NOSM~d~~3I~JS3~ fasld r ou oxw i...aw..wi iw w o.oa n wwe w.ua..erb ~a rea..lsa w.wm oM Ywum vm n n 1~~a p/ morrow Au N rr a p~'M11w1~PU or MneMp duiAU.dw® Ouwnpu~'wW w1p pwu~~ wY I IW APP 14nI~E le MIA aou~ X S'i x ~ N gdfL! MUOaUIIgol fMp/q}1t tstUlsn910 ugeN pUpW 019LWM0 61YLtuyttl Jtl YDpt,tla0a 10lt9WIlU ,eo6-laDu3 l0 00qu0ay uoptalpluoq,06oldwo pue'sso,ppe'oweN l pass9s sl s0 uo so9.wA. ON II N4 4N •PIdwO'J) f~F+sIPIWnS ggm10u b~21 ~13o~~gl ' S2I33ZNIIZOA 2i3HZ0 Q2i1iOH 3HZ 30 2i3SW3W .iH Q3 9 Q3ZfiNIQ2I00J 'S2i~Oi'dZ\l6 S`i HJIIS SZN3A3 'IKIJ3dS W02I3 Q3AI2i3Q 3WOJNI rt£OT '3W0 9E6 df102i9 ~ WFRI902id 7CFLQ 3HS, NI SZZL1Qrd Q3ZHYSIQ xZ'IKSN3WdOZ3A3Q 2103 SZZIx J£6 9NIAI'I JISfiH 9 '3ZIdS32i 'NOIZKZ2IOdSN~i2IS 3QIA02Id OZ 33JIA2i3S 2103 S33 SE6 ' SS,ZIIQri Q3Zfi`fSIQ F.'I'I~iS,N3 -dOZ3A34 2103 9NINIrd2IZ 'IKNOIZ~iJOA S3QIA02id S3JIA2I3S 2IOHFI'I 4 3ZFtS 2I0 SW3bI 9NIZFlJI2iHK3 4 SZN3A3 NI 9NIZ\idIJIZ2i~id S3QIIZJNI 1CZIAI~LJK x210 flE6 Isosoantl Wns,ol spool eypgad 6q uc9l,0glo) sosaantl ltlwox0 ~ s,uogmurNo 041 Jo luOwVNltlwoaae 0q1 of Nluepotluu p0ingpluoa IIA Yed to l3) uwnloa ul WUOtlu q 0woaul 4alYM,o160M1a0 Voto Moo wgtlxg •oN 0v1~ sss nd W ?o l~«6d4sIId~V ap of sgµ1~V 1o d14s~Rglstl 11 ped'LI wq w lunowe 0g1tsn00 gnaYS'I ytd'DI 0uV snltl SOl 0u~ :qoN ~ ll3) Dut'l0)'lB) suwnloa'?Ol ouq PDe) ~~101 001 ' L b s s B ' L t ' 0 lla) Purla)'le) suwnloa Ppe) Igol9ns >.ol P s 9 •~9E'sz ssN3A3 ~rlJ3ast 0nu0nu,0N0 tOL /uolu0nw to tNes woy (osol),o y}atl ssa0 tpl sluuo lnaotls ww1 (ssol),o owoau110N IOl E T E ' 4> A~oluonw usgl,oglo g0sss to sMK wal (ssol),o we0 00 t 0woaw lu0ugs0nm nqq ~ 6yMatl Iswusd woy Ifsoll,o auoaw Iqua 1Ml 0a 6y0tlatl p0autuy-I90D log (9) 6y0tlatl DOaueuY-190D Itl , ,z ~:.'b~"~s~ ~ 1x..:a..y.;• ggs01o0, way Isfol),o swoam Iquu I0N Le s0punaos wal 1fu01a Put tpu0DW0 00 ' L T T' 9 4 t quougs0nw Ysea 6,uotlw0l Due seuu,es uo 1w01u1 M qu0wes00ts pw sonp dlgs,0gwoyy ~ ' 8 E ' S 9 E serdw0e lutwwswe uu„1 spe,luoa put ay (el ' T T i+' S Z qutuutM gtalMW/•,ta~POW U) lU Ipl '0 S'09 5333 ZN3IZJ1s) ' Z59 NOIZfIZ2ioasNtRIS,Ia) •st ~t s3IZIAIZJ~ai x2toMa) 0u,oaut uopaury Wnowy w. lunoury 0poa onuonu 0ayu0s wp0o,d CO ssoupng pohlpw pW,OSOm pgMtl (0) "l~j 101 Ir) 0gsu0Vp ssolun qunowe csw0,qu3 131 nt+. ew w.w+ word Mlslu s~RIMoV Io"Pa+d-~~I /o • a• d 96880t0-66 SN3ZIZIJ Q3Q2IYS32I 2I03 NOIZrtIJOSSY 1iNOx seal oee~w•d SCHEDULE A Organization Exempt Under Section 5O1(c)(3) oMe~. ,s.}°°•' (Form 990) (Euept Prhete Feuneetlon) ene Seetlon fl01(e), fl01(Q, fl01(k), 501(n), or Seetlon ap17(e)(1) Nonexempt Cherflehls Trust 1 998 o.o.v~.nwn. rn~,ry Supplementary InformeUon mt~nr n...w. s..b. ? Muet Oe eompleteC by the ebore orpenlaetlene en/ atteeheA to Ihelr Farm 9p0 er 9pOF2 name of the organlratlon Employer IOemllleellon numher KONA ASSOCIATION FOR RETARDED CITIZENS 99 0108896 Compensation of the Flw Niphest Paid Employees Other Than OHicero, Dlroctoro, and T?ustses (SM mstnCll00s Llet Bath one If tMn 7n none, ennr Tlooe') (e) Name an0 a00nss of each employee paitl 10 le ano avenge noun t"I awmr m (e) Expense mon man 550,000 per week oevoteo to (e) Compensation ~p10~a~ account and other osMon oompenreon allowancet NONE Thal numwr of otMr empbyeee paq ~ R Y aver 550 000 ? 0 ~ . Cornpanaatlon of the Flw Hlphest Paid Independent Contnctraro for Ptrofeesiaraal Setrvlees See instructions Ust each om whether meNquae ar flmn) II Men an nom, enter Tlam. (e) Name ana appose of eacn indepergeM contactor paid mon Ihan 550,000 (0) Type of servla (e) Compenu0on NONE Tohl nurteer of o0un noerwrp over . `'S' 550 000 br roletelaul wrvkee ? 0 %6 i " ,r„~. IFIA Far Fepereere ONeetlen Aq NaUq, we pep 1 of the IretVetllem M farm YIO eM Fenn fa0~Q. SdrMrle A (form i10)10/t 07270511 796386 RARC 082 BONA ASSOCIATION FOR RETARDED KARC_1 ScheduleA(Fonn990)1998 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Pager ;i P~ Statement About Activities Yes No 1 Dunnq the year, has the organiution attempted to influence natlonal state, ar foal legrslatlon, Includlnp any attempt to influence public opinion on a IegrslatM matter or referentlum7 1 X If Ye; enter me total expense pxr0 or incurred in conneeUon with the lobbpnq acthRU ? S OrganiraUOns foal made an eNchon under section 501(h) by filing Fonn 5768 must ctlmp4h Part YI-A Omer , organiuhons chetkinq Nes; must Complete Part VI.3 AND atlach a Statement grvrnq a tlehrled defcnptron of the IoDDymq actrviNt 2 Dunnq the year has the oganinUOn, edher tlireQty or induecUy, enpagetl in any of the following acts wdh any of rts trustee, directors. omcers, creators, key employNt, or members Yf then hmilles, or with any tazabN organinUOn with which any such person n affiliated as an officer, tlrrectar, trustee, malordy owner or pnncrDal Denefltury a SaM, exchange, or lesmq of property 2a X D LenOinq of money or other extension of eredrt7 2D X Y Fumuhinq of goods, services, dr hcrlNe7 Y0 j( 0 PxymMt of compensation (or payment or reimbursement of expenses rt moo than 57,000)7 2d X e Trsnshr of arty part of Rs income or asteh7 2e X If the answer to any 7uefhon rs'Ye; atbch a detadetl statement ezplarnmg the trsnsaetlonf 3 Doe the organlrabon make prams for scholanhrpa, hllowthips, sWdent Irons, etc 7 3 X ~ a Do you haw a section ~03(b) annuAy phn toryour empbyNS7 4a X b Atlacn a statement to exphk now Me organwtlon debmwha loaf indNrdueb or orpanmhonf namnq grsnh or loans from it rn hrthmna of tls rJlarttxbN progrsrm Ow9N to reaM payments (Su ndructlons) Rgson fa Non-Privab oundatlon Status ISN mrtmcUOns 1 Tree oryanrnUOn b not a pmnte loundatlon beceufe d h (PIeaN Neck onty ONE appkaD4 boz) S Q A chYroh, COIIWntlen of dlYrohe, or itfadatloM1tlf CYUrCllea Seetbn 17D(b)(1 )(A)(I) 9 Q A school Section t701b)(1)(A)(9) (Aho compMh Part V, page ~ ) 7 Q A nofDRal or a caopentM hofDAal fervke oryanratlon Sectors 170(b)(1)(A)(nl) 3 ~ A Fadenl, shb, or foal gowmment or gowmmenhl unN Seetlon 1T0(bK1)(A)(v) 9 Q A metlral rsearcn organlratlon openhd m conrynctlon wdh a hepdal Sectors 170(blll)(A)(In) Ernes tlN ha(IMSIY name, etly, and Hale ? t0 ~ An oryanlrahon opersletl for the beneM of x colMge or unrverslty owned or openled by a powmmenW unR Secthn t70(D)(1)(AxW) (Aho compNh Ne EY91ort SchpYle In Pxrt IV-A ) 11 a ® An organrraUOn that normally rearves a suDahnWl part of rts support from a powmmental unit or from the geNml puDlk Section 170(D)(1)(A)(vr) (Also comphte Me 3Yp1ort SchNYN In Part IV-A ) 110 ~ A community tract Sectors 1701D)(1)(A)(w) (Aho compMh Ne 3Yp1or1 SehedYq rn Part IV-A ) 12 Q An oryanmtron Mat normxey reaiwe (1) mme than 3i 1/3%of Ib support from contnbutlons, membership iNt, and pros rseerOh from xctlvNlee elated to Its cnamaDh, ek ,functions - sublNt to arhln exaptlont, and (2) no moo then 3,71/9% of its support from gross rnwitment Income aM unngtetl husmess hzaDM Income (less Becton 511 tu) from buslnNSes acaulnd by the arganraatron aRer June 30.1975 SN feNdn 5091x)(2) (Also compleh 1ne SYOport SeResYle In Part IV-A ) 13 ~ An organrrahon Ihet n not controlNd by any tlsauau0ed persons (other than foundatlon managers) and supporo orgxnlaUons deacnhed in 1111rnet 5 inrouan t 2 above. or 121 Becton 501(c1(a1.151. or (61. d five meet the test dl section 5091x1121 (SN teeDon 5091x11311 Provide me foameYrg krfomretlan about the supported aryanwtlons (SN mttmr,4ons do page 1 ) (a?Name(sl of supported oryanraatlen(t) (b) Une numfaer from xDOw 1 t M o anrnDan o xnraed end o rsted to feet for ufNk eh Seetkn 509 a 1 SN ertirwdtont on • 1 ~.oi-'r 8 07270511 796386 KARC 082 KONA ASSOCIATION FOR RETARDED KARC 1 SchMUIeA(Fenn990)7998 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Page3 9YPpoR 9•heWUl• (CompNte only d you checked a box on Ilne 10, 11, or 12 ahoy) Up euh method of eoeounNnq• Note: You use the worksheet In the Ina W ehona !or eonverbn hom tM ecerutl to tM eatll method o/ areounnn Gleneu yeu (or Ilawl year he Innln In ? (al 1997 (b) t996 (c) t995 (d t994 (e Total 15 alb, WeniR w mnmbubane nwvq ~ ~ ;°,~iatndutl'"""""'°"'°s" ~ 134, 529. 127, 800. 124, 499. 87, 068. 473, 896. 16 Membenht lent rearved t 7 Gross recupb from admrsslons, merchanOlse sold or servKes pertonned, or lurmshmp o1 hchRus In any actrvlry that Is not a busmess unMated to tna organtaatlon s cnarWON. etc purpose 791,580. 416 931. 425,985. 594,329. 2,228,825. 18 Gross Income from Intensl. drvtdentlc, amounts ncervetl from payments on secumlea loans (sec• hors 5t2{a)(5)), rents, rcyaltlea, and unnlaled busmess taxaDN Income (less seCllan 511 taxes) from Ousmans acgmnd by tM arganmDOnatterJUne30,t975 2,541. 1,598. 1,598. 2,032. 7,769. 19 Net Income from unrelated busmess actmhas not mduded m Ime 78 20 r•• nrbw~ INI.d b tlr. oq•xa.bn x bwMt.na ~ewr owe b d or aax"C.0 m Ib b.1,Yl 2t The wlue Of servKes Or hcaltles hrmnned to me organlratlon DY a gavemmenul unR wltnout charge Da net include the value of servKes or hctlrtus penenly hlmrshetl to the publw wdhautcharge 22 os.w maoma Alr~l, • e"Jbeulw oo rot i"tluW Pn b AaN Ilq" MM OI fJgW reaw 23 Total ofllnesl5through22 928, 0. 54 ,329. 552 08 683,429. 2,710,490. 24 Une23mtnusltnet7 137,070. 129,398. 126 097. 89,100. 481 6 5. ze Enter 1 % of Ilne 23 9 , 7 . 4 5 5 1. 6 4 . 2a Organlaetlons etlerlDeO In Ilraa 10 ar 11. a Enter 2% of amount to column (e?, Ime 24 ? ~ 9 b Attach a Itst (whe:n is not open to puDNC InaDtxRlon) anmestq tM name al and amount contrtbuted DY aCn person Cotner Nan a •Y r ; " _ n gavemmental unR or puDlky supportetl organmGOn) Morse total pdu for 1994 Mrough 1997 exaeded the amount shown s, ~ • - " F" m line 26a Enter tM sum of all tnew etwu amourRS ? 2 0 . :m e tool support for seetlon 5g9(a)(1) test Enbr line 24, coumn lel ? 2 4 81 66 5 . d Add Amounts tram Column (e) for IIMS 1a 7 , 7 6 9 . 19 4. 22 tea ? Zee 7 , 769 . e Publte support (line 26c minus line 2W total) ? 2ee 4 7 3 , f PuDlle support percentage Ilne 2ee (nemerabr) /Nleae line 2k (eenominabr) ? 2e1 9 8 . 3 B y. 27 Organunlom eetulbee firs IIM 12: a For amounu mcludetl m hoes 75, t Q and t 7 that wen naived from a'dtequaYBed person; altacn a Ilst to show tM name ot, and total amounts reserved M each you from, eaM'dbWasBed parson' Enur the sum of tutlt amounu tar eacn yur N / A (1997) (7998) (t995) (1994) b Far any amount InchMed in Ilne 17 mat was narvM hom a nond'squuleetl person, altaGl a Int to show me name ot. and amount Halved for each year, loaf wee moo Man Nelv0erol(1) the amount on Ilne 251or the year or 85,000 (Include N me gat organltatlona deaedtud In tYtee 5 Nroupn 11, as wee as Indrvtluals) Afar Computlnq me Illlhntna atrleen me amount tearved and me 4rqu amount decrs7ed m (t) or (:q, snot me sum of tneu d8hnnas (Ne excess amounts) torvaen year N/A (1997) (1998) (7995) (1994) s Add Amounts tram column le) for Ilma to 1a 1t 29 27 ? 27e N/A d Add Une 27a tool and sne 27b foul ? 7 N A e Publk support (Ime 27c. tcul minus Ilse 27d total) ? 27e N A I Tout suDDOrt for sectlon 30!(a)(2) tat Enur amoum an line 29. Column lei ? 271 N / A ' g Rrbel• erapOert pve•rrt•a• Oars• Z7• leurwer•aeA dteld.d by lMre 47f, (denarat4set•rl) ? N / A % hl i ~ ? ih N A % 2a UretattarM or•raac For an operlloeoe eeecrll7ee In uric f 0, t 1, or 12. cut receNee any antrawl qmb durYro t 9g4~rorph 1997. aUgt a set (Mddl a Hat open to DuDee MepeNon) for eenl yeu eMwYq tM name of the eotrMeafor, tlu day aM atnaum M eu ptam, arM a rMrBen Cf tM nedn o} Ne pram Oo oaf intlude mess pnnb u ens tS (See IIMtn1atl011e) NaNF. ,~-o'er-r 9 07270511 796386 RARC 082 KONA ASSOCIATION FOR RETARDED RARC_1 SchedubA(FOrm9901t998 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Fage? 1f Private School ~ueedonnairo o be eom eted ONLY b echoole that checked the box on Ifne 6 in Pert I N/A 29 Does the orgamnhon nave a ocelty nontlecnmmatory policy towam sNtlents by shbment m ds charter, bylaws, other govemmq Yee NO instrument, or in a resolutlan of ds govemmg body 29 30 Doef the organiia0on inClYtle a ShtemMt of ib raculty nonOiscnminalory DOlay (ewartl sNdenb in all da brochures, Gtaloquea, and other wmten communa;ahons wdh In! publk Oealinp wdh sNtlent admissions, programs. antl sCholarshlps~ 30 31 Hat the arganiiation puDlx:ixetl ds nCUlty nbntll+Cnminalbry policy through newspaper or OrOatlGSI metlu tlUnnq Ne penod of sol¢rlatlon for students, tlr tlunng the iapistnhan penatl it d has no solualatlon program, In a way that makes the policy known to all Darts of the general commundy d serves? 31 It Yes; poise oescnbe, d'flo; poise exDbin (II You neetl more space, adath a separate statement ) 32 Daes the organiration mamtaut the follovnnq a Fecords indkathp the ravel eomDOtdron of the sNtlent Datly, faculty, antl adminbtwUw shft7 32a b Recoros documenting that schobrthlps antl other flnanwl atiehnu an awaroetl on a rawly nantlncnminatory bath? 32tl e Copes of all cahloques, brochures, announumenb, antl other wnlbn communiudont to the Dublk daadnp wdh sNdant atlmnsione. propwms, and schobrshrps7 32s 0 Copes of all matenal used Dy the orpanmten or on +ts belied to sokcR contnbubons7 31e n you answentl'NO'ta any of the above, please explain (If you need mon space, attach a seD+rtte shtement ) 33 Does the organiratlon dlscnminate by raa in any way wdh respect to t a Stutlenb' rights ar pmilepes7 33a 0 Atlmnslons Dolrw37 31tl e Employment of heady or atlminetraUve thd7 33e d Schohrthrps or Other flnaneel assehna7 330 e EtlucaUanalDOdcba7 33e 1 Use of hcildbs7 331 q AtMNk programs? 33 h Other extnturncular acbwtbtT 33h If you answered Yes'to any of the aoove, pN+w explan (If you neetl mon space, attach a seD+nb statement ) 31 a Does the organuadbn reCNW any flnancW aq or attblana Irom a povemmenbl agenry7 31a b Has the orpanmdon's rght to such and ever Deen rwatetl Or suawntletl~ • 31a If you answeretl Yet'to edher 3W or D, pbaae eapWn wing m attacmetl shbment 3ti Oat the orgenraatron certlty Nat d hat compYe0 wpi fM aDDW+a+ repulremenb of sectlons ~ 01 through ~ OS of Hev Proc 75.50. 1975-2 C 8 5117, covenn wwl nantleenmmatlon7lf T1o;attach an exDbnatlon 3t1 +~'a%'ee 10 07270511 796386 KARL 082 BONA ASSOCIATION FOR RETARDED KARC_1 ScneduNA(FOrm990)t998 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Pa of Lt3bbylnp Expendltlree by Electing Public Charities (TO b. compNbO ONLY an a AM o anoatkn Mal fHM Form 5768) N / A Check hen ~ a It the organrntlon belOnpa t0 an afAllatM prouD Check hen ? D If 00 checaaE •a• abOw antl Timltad control fovs~Oni 7 Limits On Lobbying EapenditUns U) Ib) ABillated group totah TO be completeD far ALL (The term'eapenORUrea' means am0unta pa10 Or incurreQ) eMCDnq brganrla00ns N A 38 Total lobbying ekpentlRures to intluence puDlk opinion (gnssroah lohbyinq) 38 37 ronl IollOyxp.xpenarturu to xtfk,enc. a Nqulatnre bony (0uect IoDOytnq) 37 30 Total lobbylnq e><DenDBuns (add IInN 38 and 37) 38 39 Other exempt Durpbse expma8um 3 /0 Tabl exempt purpose expeMqurea (add IMes 38 an0 39) 10 41 LobDylnp nontaxable amount Enter the amount from the fallowxp bON - , II Mo amoenl on Ilno /0 la - Tbo lobtrylrn nomaxaDle omoom b - rlor wrae0D,o0D 70% a er.na.nr an iw u a.aaco.aoowlnmp..elooo.aoo elao.aaoap.lexaw.e...w.teooaoo , Ovrf1 000,000 Wtnol wr it coo 000 f1150oa piW lOK O1Mrc~ee wral,0ao,0o0 11 a.el,xo,aaobulnaowrsll,o0o,aoo uae,ompasexwn.rprw.N,e04000 a. sn aao 000 sl ooo,aoo /2 Grassro0b nonbxabN amount (enter 25% of hne 41) IZ /3 Subtnet hne /2 from lme 38 Enbr -0- d Ilne 4q is mon than une 38 q 44 Subtract Ilne 4t from line 38 Enter-0- d Ilne 41 is more than Ilne 3B 11 Caullon. If thus n an amount on srther one 43 Or bne 14, must flN Form I MO 1-TmAwragNB PnNC UMer SetlNn 8011hi (Some organmtlans Mat mass a sectlon 501 (h) eMC11on do not haw to comDNb a8 of Me fm columns below See the Astnwibna for Ilea IS Mrough 50 ) Lobbylnq EapantlNuroa DurIn81•YOar Awngin8 PorloC N/ A CaleMarynrlor lal IDI lq Idl (al Iheel yoar bplnnN8ln) ? 1998 1997 1998 1995 Total /6 Lobbymq nontaxaDN amount t 18 Lo0Dyelq caaulp amount , 150% of line IS a . 1 /7 TObIIODbyxlq e n0N la ~ I8 Gnasroob nOntaxaDN amount ~ 19 Gnssroob sung amount , , ° : ~ ~ ~ ~ ; . r 150% of Ilne e 50 Gnssroab lobbymq e n Lobbylnp Actlvity by Nonelectinp Public Chortles (For nportlnq ony by orpaotratlorle Mat oN not compNle PaA VI•A) N /A Ournq Me yNr, oitl Me arganlatlon albrnpt to 4larenp natlanal, stab or IoW le9eutlon, IncluDYq arly altampl to YM ~ m8uena publk opinion on a MgkbMn mo8er or rehrerqurn, Mrouph Me uw or ' a VoWmeen ~ h Pax1 ebtl or mamgemMt pnthbe compen»tan m expenses np0Ae0 on Ilnei c Mrou9h h) : t hNOe aOwAaemelb e fAU1Ngs to member, Ipelaton, or lM publk e Pu011ntbns or pubWheO Or broaOWt sbMnnb I Gnnb to abler bryanvatlana br IaDDyeq purposes 8 OMeut contars wel IepsWbn, Meh abstb, gawmmmt oNldala, or a N9ebtlee bony D Raaoe. Oemonstntlons, seminan, tonwntlona, speetlln, leclLne, or any oMer means I 7oW lobpyeq expeMkum (aA0 Hna a Mraph h) A Yes'to amy of Me ebbw, alw a8atlr a Wbrrerd 9h'Irq a tlataYlA OeeeADOeu of tM bbbyNq aetleMlae ',:°7,l~ee 11 ..+.•+n~++ +n~-1nt sw nn 1107 Yr1T711 LCCr1!`T LTT/1h7 I: f1A AL`TDATIRTI KART SchetluleA(Fartn990)1998 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 Pagef{ Information Repardlnp Transfers To and Transactions and Redatlonshlps With Nonchantable Exempt Oroenizetlons 51 Oid the reporting organrrabon Grrecuy or inoneCty engage in any o1 the }ohownnq wrth any other organrntlon deathbed In section 501(c) of the Code (other loan sechon 501(c113) organwtrons) ar in sechon 527, relahnq to Dolldcal organwtionsT e Transfers from the reportrnq organrrahon to a nonchardable exempt orgamra[lon oY Yep No (q cash Sall) X pp Other assets a(h) g b Other transachons ~ (I) Sales of assets to a nonchaMabN exempt orpanintron h(I) X (II) Pumhases of assets from a nonenardaDM exerrrpt organrraban 0(II) X (III) Rental of hcrlrtNs or equrprmnt h(III) X (hr) Rnmbursemenurrangerrrena Dpq X (e) Loans or loan quannteee e(r) X (rl) Performance o1 services or membership or fundnalnq solicRahons b(rr) X e Shannq of hGllhes. epwpment, marling Ilste, other asseU. or pai0 employees c X 0 If the answer to any of the aDOVS is Yea :complete the followrnq scneduN Column (b) snouts always Indicate the hlr market value of the goodt, other assets, or services given by the raportinp orpanwtbn If the organiratron retewed less than Farr rtlarket value In any transaalon or shann am ,snow xt column 0) the vaWe of the eods, other assets, or servrces recerved N / A let IDI (el Idl Line no Amount invoNetl Name of noncharltable exempt organwtlon Oescnptlon of transbn, transachons, and shannq arongemenls 52 a Is the organrntlon dlrectry or indirectly afAllated wdh, or re4tW to, one or moo taxtixempt oryanwdons descdDed In section 501(c) of Ne Code (ether than seCtlon 501(c)(3)) or rn seetlon 5277 ? ~ Vw ®No b I1 Yes: compNte the followrnq schMUN N / A (al (DI (el Name of organwtlon Type of organtratlon OeSCnptlon of rolahonshro ,~di ie 12 07270511 796386 KARC 082 BONA ASSOCIATION FOR RETARDED KARC_1 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 FORM 990 GAIN (LOSS) FROM SALE OF OTHER ASSETS STATEMENT 1 DATE DATE METHOD DESCRIPTION ACQUIRED SOLD ACQUIRED FIXED ASSET DISP05ALS VARIOUS 12/31/99 PURCHASED GROSS COST OR EXPENSE NET GAIN NAME OF BUYER SALES PRICE OTHER BASIS OF SALE DEPREC OR (LOSS) 0. 38,385. 4,313. 38,385. <4,313.> TO FM 990, PART I, LN 8 38,385. 4,313. 38,385. <4,313.> FORM 990 STATEMENT OF ORGANIZATION'S PRIMARY EXEMPT PURPOSE STATEMENT 2 PART III EXPLANATION PROVIDE RESIDENTIAL 6 VOCATIONAL SERVICES TO PERSONS WITH DISABILITIES RESIDING IN HAWAII COUNTY. FORM 990 OTHER EXPENSES NOT INCLUDED ON FORM 990 STATEMENT 3 DESCRIPTION AMOUNT LOSS ON ASSET DISPOSAL 4,313. TOTAL TO FORM 990, PART IV-B 4,313. FORM 990 OTHER REVENUE INCLUDED ON FORM 990 STATEMENT 4 DESCRIPTION AMOUNT LOSS ON ASSET DISPOSAL <4,313.> TOTAL TO FORM 990, PART IV-A <4,313.> • 13 STATEMENT (S ) 1, 2 , 3 , 4 07270511 796386 KARC 082 KONA ASSOCIATION FOR RETARDED RARC_1 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 FORM 990 PART V - LIST OF OFFICERS, DIRECTORS, STATEMENT 5 TRUSTEES AND KEY EMPLOYEES EMPLOYEE TITLE AND COMPEN- BEN PLAN EXPENSE NAME AND ADDRESS AVRG HRS/WK SATION CONTRIB ACCOUNT WALLACE H. GALLUP, JR. PRESIDENT 75-5586 OLOLI RD, #3002 1 0. 0. 0. KAILUA-KONA, HI 96740 GEORGINE BUSCH VICE-PRESIDENT HCI BOX 40 1 0. 0. 0. KAMUELA, HI 96743 DEAN UEMURA TREASURER 82-6109 KIRITINA PL. 1 0. 0. 0. CAPTAIN COOK, HI 96704 MARY HELEN HIGGINS SECRETARY 73-4515 OLD GOVERNMENT RD. 1 0. 0. 0. KAILUA-KONA, HI 96740 STEPHANIE ACKERMAN ASST, SECRETARY P.O. SOX 1564 1 0. 0. 0. KEALAKEKUA, HI 96750 SCOTT CRAVEN DIRECTOR 74-5593 PALANI ROAD 1 0. 0. 0. KAILUA-KONA, HI 96740 LOIS-ELLIN DATTA DIRECTOR P.O. HOX 383768 1 0. 0. 0. WAIKOLOA, HI 96738 MICHAEL FRASER DIRECTOR 75-6016 ALII DR. #328 1 0. 0. 0. KAILUA-KONA, HI 96740 GEORGE GAMBONE DIRECTOR P.O. HOX 381 1 0. 0. 0. KEALAKEKUA, HI 96750 MIKIO IZU MEMBER P.O. BOX 5 1 0. 0. 0. HONAUNAU, HI 96726 PENELOPE KIDDER DIRECTOR P.0. BOX 4448 1 0. 0. 0. KAILUA-KONA, HI 96740 14 STATEMENT(S) 5 n~~~ncii ~o~~a~ rsar OHS BONA ASSOCIATION FOR RETARDED RARC 1 KONA ASSOCIATION FOR RETARDED CITIZENS 99-0108896 KATHY PENWELL DIRECTOR 73-4348 KALIA PL. 1 0. 0. 0, KAILUA-KONA, HI 96740 JACK SHUSTER DIRECTOR P.O. BOX 2495 1 0. 0. 0, KEALAKEKUA, HI 96750 BRIAN SUEZAKI DIRECTOR 77-6428 PUALANI ST. 1 0. 0. 0, KAILUA-KONA, HI 96740 GRETCHEN LAWSON EXECUTIVE DIRECTOR P.O.BOX 416 40 43,000. 0. 0. KEALAKEKUA, HI 96750 TOTALS INCLUDED ON FORM 990, PART V 43,000. 0. 0. 15 STATEMENT(S) 5 07270511 796386 1CARC 082 RONA ASSOCIATION FOR RETARDED KARC_1 KONA ASSOCIATION FOR RETARDED CITIZENS SuoDlementai Schedule of Fixed Assets and Accumulated Deoreciation Cost Accum Net Book Value Basis DepreciaGOn at June 30, 1999 Budding improvements 9,253 4,795 4,458 Egwpment 28,959 13,950 15,009 Greenhouse 3,276 3,276 0 Vehicles 95,167 67,154 28,013 Residence 230,398 109,303 121,093 Totals 367,051 198,478 168,573 s~ KONA ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDING SUBMITTED JANUARY 2000 INTERNAL REVENUE SERVICE LETTER Internal Revenue Service Department of the Treasury Distnct 300 N Los Angeles Street, MS 7043 Director Los Angeles, CA 90012 Penton to Contact. KONA ASSOCIATION FOR RETARDED CITIZENS L BARRA6AN Telephone Number P.O. BOX 127 (213) 894-2336 KEALAKEKUA, HI 96750-0127 Refer Reply to: EO(1019)98 Date, OCTOBER 29, 1998 EIN: 99-0108896 Dear Taxpayer: This letter ie in response to your request for a copy of the determination letter for the above named organization. Our records indicate this organization was recognized to be exempt from Federal Income Tax in DECEMBER 1966 ae described in Internal Revenue Code Section 501(c)(3). It ie further classified as an organization that is not a private foundation as defined in Section 509(a) of the Code, because it is an organization described in Section 170(b)(1)(A)(vi). The exempt status for the determination letter issued in DECEMBER 1966 continues to be in effect. If you need further assistance, please contact our office at the above address or telephone number. Sincerely, Disclosure A>aiatant p ~~(~OM~ NOV F _ D KONA KRAFTS I 1 ~ ~ t~'••: U. S. TREASURY DEPARTMEr~.( , ' INIERNAI REVENUE iERVICE 1W•RO-67.40 eYrercT oeu 'toe _ a r. e. eetr acre MOMOLYLY. eAeAN eeMe _ • /e eeeelr~~ee • JUL 12 1967 FawL-170 Cod/ ~l4 ' Roos e?aeoclatloo !or Retarded Children ~i~uaatlowl and Chssltabla t. 0. Jba 730 Aeowtee rrrsrrenrse a rrus ttsyterne arrrr eYTMCT araaTM M MTMIIA? aavaaYr Raslakakw, fiwrall fti130 lboelYlY, laYell • Oaot leraeO t ~ reran ese.a aa- aecotwTpta raerea fYalaa arraara • ~ . ~ JeYr 70 On tM boele d Yore stated preposee and tlr urrleretadtrq first your operatlarre will dmtlnw a ' wWerroed to drab a will mdam to those proposed In ypr raUrrp application, we bore arncludod that ytw are •¦enq Iran federal Incans toc o. an aprnl:atlon daalbed In section 501(01(3) q( the Interrrel ileveaw Cade. Any clrorrgee In opetgllan Iran tlroee deeQlbed, a In your clravdsr a papoeee, wrist Ire repalyd Isenedlnlely to your Ulatrld Dtrecta fa corniderotlon d their altoct upon y0rtr e.etnpt .tofu. You traret oleo repent any rJrorrps br yerr ttoate w oddnea Yes era nd rpuhed to Ills Fedad Inamr tar retYrrre eo tarp a• yes ntrrla m envoy! ~tslW, tor- bre you ae eub)eeT b fhs fret an uvaloled Iravlnsee krcans Mrpoaed by seq{orr 511 a1 tks Colo, In whitdr event you an nqu4ed to ills f am 970-T. Our d•lersr4wtlon as to yox IMb1Uty (es 1114u1 tM onnwl Inln,sruUon stun, Faw f90.A, Is eel lath abate. That nlurr, It reVWred, wrest ire Il on a betas Nre 15th day d Ur Illth madh alter IM close d your aarwl acooraalrrr period Indfeated above. ' CoratlbtAtorr code to you ae brduallble by dams w rrovfded In eedlon 170 d the Code. De-• ~ ' awets, feprelw, devisee, trarreler¦ a ollte to a la roar use an dedu:tlbls for Federal eataM ' and pill tae purposes order tint prorlelane d eedlon 1065, 2106 and 2522 d Ilre Cado. • ' You we not lYrbhr !n the tgrne Lnlnsed order the r'edsral Iruuarrce CadrJbutlara Act (eocWl ' • eecuttty louse) unlne you IIM a waiter d e+emptlon r•ertlUrate oa txwlded to each act, You aae , not liable (a fire tea Imptrswd urrter the f ederul Uranploymerd Tarr Aq. LrquYlns about tin avlwt r d eaemtdlm oerllll0ate la earlal eeculty Iaru should be aMkoeeed,lo this oUlw, a ehoufd aay prratlone corrawnbq curies, employtnertl a abet Fedetol faaaa. , This V a deleroleotlan letter, Very trYly yours, Erar S. Lloyd f V ' District DNeeta ' ToY ace cautioned ttrt !t you en~a~e to a eubataeelal dgsaa !1 aatl~ltlaa ' , trbleh era unrelated to your purposes, you rill Jeopadlse your aseapt`alsew. Tor are cautioned thse upon dleeolutlon your cesutalo~ sesaee evert N dia- tributed to sn oc4salaetlon described In seatloa 301(0)(7) of eft Coda ad eserpt tcaa ledaral LoeYae tax. ~ ' Ours 6edeAaF. i0 M i.6 99-010dd96 ' testes L-171 a•snt KONA ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAF'tS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDING SUBM111ED 7ANUARY 2000 LIABILITY INSURANCE ACORD„ CERTIFICATE OF LIABILITY INSURANCE °""'""'°°"Y' 08/03/2000 rROOUeu TH19 CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ALOHA INSURANCE SERVICES, INC. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 75-5722 KUAKINI HWY, SUITE 216 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW KAILUA-KONA, HI 96790 INSURERS AFFORDING COVERAGE 806-339-0099 I ~D~D ASSOCIATION FOR RETARDED CITIZENS INSURERA NORTHFIELD INSURANCE COMPANY DBA KONA KRAFTS j INBURERB P . O . BOX 12 7 .INSURER C KEALAKEKUA, HI 96750 j INSURERD 3 2 3- 2 6 2 6 INSURER E COVERAGES THE POLICIES Oi INSURANCE LLSTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REOUBIEMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WIl'I1 RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AHD CONDITIONS OF SUCH POLICIES AGGREGATE (BAITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAWS - INfR TTPE OF NSUMMCE POUCIN~IEEJf !Jl1~ATIOM orate DEJ6IAL LMaAITY EACH OCCURRENCE 31, O O O, O O O X CCRarERCIAL GENERAL LIABLITY I I I FlRE DAWGE (Art/ ~ MI S 1 O O, 0 0 0 CWYS WOE OX OCCUR ~MED EXP(~3Sr OOO A CP364216 i 07/01/00 07/01/01 PERSp1AL6ADVVaJURY sl, 000, 000 GENERA( AGGREGATE f 2, 0 0 0, O O O GEM AGGREGATE LIWT APPLIES PER PRODUCTS -COMPA7P AGG S 2 , O O O , O O O POLICY PRO• lOC AYTOIIOEN! LWLIT' COMBWFJ) SINGLE LIMIT AMY AUTO I IEa AVJtlMq f ALL OYN1E0 ALTOS BODILY INJURY (Prima) S SCHEDULED AUTOS I wIEDAUTOS BODILY INJURY ~Op~~ NaNawNEOAUTOS I cP"ee0"'0 I f r- PROPERTYDAWIGE = I (Pr ~mlMq . OARADE LIA~SJ7Y ~ AUTOOMLY-EA ACLIOENT i `~AHY AVTO 07T1ER THAN FA ACC .3 j AUTOONIY AGG f I [%Cltf LIAYJTY EAGI OCCURRENCE . S J OCCUR ~ CWM6 WIDE i i AGGREGATE ' S S DEOIJCTIBLF f RETENTRRI A + N• YAIEIaS COIa7 W710M AMD - YA1PlOY0R LM~JIY i E L EACH ACCX)ENT { E l dEEASE -EA EMPLOYEE ; t E l 01lFA9E -POLICY UMT ! f 0711 A PROFESSIONAL CP 369216 07/01/00 '07/O1/O1,AGGREGATE: 52,000,000 LIABILITY OCCURRENCE: S1 000 000 AMMt:RII10R OP aPauTnwacuMau A00EY K EIOAXaIrwTMPEeWt PROVWpIE THE CERTIFICATE HOLDER IS LISTED AS ADDITIONAL INSURED CERTIFICATE HOLDER X AmIAOaAL oIEIRIBO: MRA~ LEYIOt CANCELLATION SIIDUD AMY 0 TIt MdA OBECIIMO POLAC6 ~ GAI~JJ® ~E 7f~ E>QEIAYIBB HELEN MATSUI oAn nnIAOP, iN uMAlAO EAEIEIBA ASL wuwR m WAa oAn WRT~I COUNTY OF HAWAII RonamnacwAweAnnaa~LwlA~mn~LSr.wrPAaMamooEOOIWa 2 5 AU PUN I STREET IraE w alA UMalIY a AIIY la0 OPaIA TIA EAAMR m Aaan HILO, HI. 96720 rnROfm . ti ACORD 2/-6 (T~ ACORD CORPORATION 7BM KONA ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDWG SUBMII'I'gp JANUARY 2000 ARTICLES OF INCORPORATION CIIanCo el CorPYClltf ' IM Flak. •ers-ar -+„!r c' kA na fel l:v.: • Moll-Plotlt Corpora .It Dapt. of Rt !story f.grnel••a kao SS 1 Fllo to Duplluta ~Duraau•aE Conveyeneea Poeyi J S7Ati 07 INNAII DiPAR'DDi1R Oi P,1Y:'JlA7G3T AG2NCIlS Suelaue Rq laentlon Dlvlelon 1010 Rteharda Straat ilalitns Addreaaf r.0. Lint 40, flonelulu, Ilarell 9Gd10 ~ ' ~ In tl•e Natter of the Aa.endernt of ) . .1 •,.r lf, " 1 !ha Cl.artar of Ineoeporatlen of ) •r•1 i ~ Ome1N1 wow 1 r+ ~o KOIIA ASSOCIATION POR RCTAADED ) ~ tr. CIIILDREN, o nornrolit corporation) I~_~yJ, ~ ']1j wl i I'},~a* CFRTiFICATE OP AfLI!IDI16Kt KONA ASSOCIATION POR the PneldenC and Swntery, ra.peeclv.lr, of RETARDED CIIILURF.N ¦ Iiawll non-pro!!t cerporetien, Jo herby earthy tl.at at a epeelnl eweln{ of tlm peahen o[ raid cospontlon duly ealld and held at Kealakvkua, Kono, Ilawll on the 29th dry of June ,1978 , toe the perpo.e o[ ellallCLnC the nave eL the raid eeepeeatlon, It vas votW 4y not leu then ew-thirds oL the leeukeee pnaant a3 the eaatlfl3 to acrd the Charter et Inoorporatlen oL aid corporation by KONA AiS.OCIATION rOR deleeln{ the nw RETARDED CIIILDRI!N rherever Lt appuN le the Clnreae el inaoepontlon, and tneeetlnE !a lieu there! the neale KONA A660CIATION rOR RETARDiRD CITISENi S • ~ I11 V1tNW illERt01, the underalina! have hereunto eet their Mande Chia iiMl f day eI TEL ,1! 7! CIAIaG14M~-~fw+u: t l1 O/ldent p.r•, t ~~r DtAtE 0I INYAII ) +eeNeeasy anaurfu• a!•.N ) couNTlt or IIANASI 1 RIKIO MORIMOTO N• liul 6e1n3 1.~ ad ~itt>lC~IiIL rlr.e duly ewer on eu6 deMw ae! oy that thq en the Prea/dent aM 9eeavteaF. aYv~ KONA ABSDCIATSlR1 rOR nspaatlvely, o[ RETARDED CHii~RiN tlwt a arch etlleen they are dlely awtl»tise! b alSn tM GreEetaE Cartllleate eL Aeatwl~awt; aw! that they have read eM raid Caetllleata, Ynev the a en • thecae[, ea! chat the aw la erw. h client 4 , Se?/lrlYe! and to Mleee ar eh/a • ' ~s , day eL ~y nw a ,1! y1• r. C a. ` .See+ee+ry eaaurar ,11~ ueury Iwlle, J Lelal Clnelc, Sta~IWell >ti eeaslulw aerlrnl fa.~F• o t herey np*teee cM [enKelllR wndarst cola ~ ~ M7 e[ ~ 1! A, ~ , -Carpesatlfr h :..efal:lea Afrlatotrata: Dl rue et -elaie. N:~•nalei • STATE OF IUIWAIL DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS C~.- THE DIRECTOR'S OFFICIAL CERTIFICATIO:1 APPEARS ON TIIE SACK OP TIIE FIRST 1'AOB OF 'fllE AITACIIED DOCUMENT. IWM~1 tllIln Wlw~~ MFriY~Ms ~ r.wrn.rr~ ~ - ,.~:....a.~. I STATL Or IUYA[I ULPANTNLNT 01 l'tNMCR06 AND LONSUNlN ArrA1N5 Ibrolulu i L. AUf{iL S. NADATA, Dlreeter o[ Lo~eree anJ Conun•r Af tale of eM State of Ilaw 11, Je Mrebr eert lLT Ghee aeeorJ Lne to tl~e reeerJe e! th le Wpertrnt, NOVA A/lDCIATLDM LD{ eRARDLD CITILRMS vea Inenr ~ prated on DeanMr l!. Hbf N • rogref It eerpree loot chat It 1• ¦t 111 In Nlenroet ' aW tlut It hu eeglled vlth ell eM provlelune oL Chapter A14 YL tlw ~ Ilaw 11 14vleed Stetutea, refulat lnf Joret It ronprof It eorporrt lone. . iN NITMLSi IlN4Wp. I line 6eraenco Nt n I,anJ and •[(leeJ t1Yr eeal of , tlr Deperteent oL fa~eree sod Grouwr ALLaIn, at Ibrolulu. thl¦ Jell JeT OL~\~-J'',Y~`M^,, IIN. Dlnenr e[ ratwnee~ewd nnYwr Altelre i fp. , .1. Aet lsf Csrpntlen ~ Seeurlllu AJwlelatreter I f DEYARTiBN? OF RPAULATONY AU Ef,'C IA9 9TATi OF NAIIAII In th• L'atter of tho Petltlon ) ) Por Charter ) of ) KONA ASSOCIATION FOR NCTARDKD C1IILDRCN 1 ) CIIANTLR O? INCOIU!ORATION OF KONA ASSOOIATION FOR RETARDdD CIIIWIv:N Y.noe ye, Nat ehenae YARK Y. 9UTIIERLAIID, KID .CCUY, Ti~MU JN., D.Y.Y., KATSUYASA.TOYI?A, J#6N-F. CIIILLINU1W11TII, urW ~~'r~ q.0 (Yrs.) RUTH A. niiIUNTNOW, all of whoa aro roelQunt• of the SLoN of Ilarrsll, hate awde applloatlon to ao, ao DlruaLOr of Ae6ulaLOrr Aaenela• o[ the State of Ilaenii, t0 Sront u Charter o[ Irworporatlon to thea and their aosooSatuo; NOt, TNKRKFORK, I, SIDNKY I. IIASIIII+OTO, DIile.CTUn OF NFYfULATORY A06KOI?S, Sn tM aseralee oC all poeor aryl authorliJ on~elee •noblltK w In thls behnlf, do harabr oonetLtuta the obav nsaed persons and theLr naaoalutaa a body oorporate, and do oonfer upon then the follor.lrl~ Charter: CHARTIR 0? I1K;OpPORATION OF KONA ASSOOIA?ION POR RIGTANDKD CIIILDhh:N I. 1Ae neae of the oorporatlon shall be Y.OIIA ASSOCIATION FON HKTARDiD OIIIlJlI1iN. II. The loeatlon and prlnslpal afflao of the corlaratlm shall M at Kealakekw, Haeali, State of Harali, or at ouch other loaatlon in the Kona area ae the Donrd o[ Uirecture shall free tlae to tlae deelSnater and lte Poet offlua n]•lrues Se P. 0. Oot 770, Keolakekw, Haaall. t, j I1I. Tho obJeate on3 purpoewe of the oorporutlon uro as follows: A. To promoto Lho ire no ral no if o+•o of monLUlly ra L.rrJ~d and hnndleappod ye reuns of all ogee Lh+•ou~h out the ,.onu Crva Sn the County of Ilawall, Sto Lo of Ilanall, ut I+oma, 1++ Ll+u cor. munlLloo, in Snotltutlone, and Sn IruUllo, prlvuta .++rJ rollEloue ool+oo la arxl norkshopo; D. To furthrr the adranoemo nt of all ame lloruLlvo an7 pre vo ntu Llvo study, roeearoU, W+eraVy. oduoaU on unJ L~•uln,n~ Sn Lhe CSa33e lrnolved 1n mental retarduLlon u»J human hundlaspe. C. To dwwlop o better unduretandlr+6 of W+o l+roblowo of wntal retanlotl0n and human hondlaape b~ the Iw411o, Vrirate, and r•llgioue a~enolee, and Snternatlu++al, nutlona 1, etoLe, onl loool depsrtwnte of eduoatlon, hoalth unJ lnatltutlone; D. To furthor the tralnlry; and oduaatlon of I+oraon+tal for work in the flelde oC wntol retardation and human hnndlcal+e: d. To eons ae a olesrlr+F house for gatllurln~ un! dleeeminoti~ Snfo+~atlon ra(.,ardlnb the mentally rrtu+•d.d and Cho handlaapped, dnd to foster the derelor•msnt of Snte6ratad pro6rome in their beholf; P. To proride epealal purpoeo ootlritiea, aehools, day acre aentere, workshops, aualllariee, etc.; and J. To cooperate w1iJa other aorporatlono, aoulotluo, olube, aseosiations, eto. Sn the interests of wntully rstanlod and han.ticapped persons. IY . The powers of toe oorpontion aro ma Collowe: A. !o purehese, taW or, loess, ollehnr+t;s, or oth+.•si.e r , acqulrs any lands, bu11d1ngs arN property, rool or pu.•oonul, rltlch may be roqulelto for Iho purpose ot, or co nvo+,luntly used Sn oonneatlon nlth any of Lhm Vurpoooe oC the corpora flop, and to soll, demlee, mortgoEo, glvu Sn ua~hanl,o, or dlol~oso of Lho Demo; D. To Snveat and deal rlth the eonoy¦ of tlto cu,•I~urntlon, not Semedla N ly required, In suah sa aurltlea onS Sn ouch manner oe msy from time to flee be determined; C. To borror, sloe, and give oecurlty for n,a nay Uy Cho leous of promissory notes or other oDligatlone or Uy mortgngo of oil or ony part of the Property oC tho corl+oratlon; D. To eo11aLL, aoqulr• un6 reoeiro charitable aontrlbuLlone ooneletl~ of osoh, eeeurltles, or other Vropertlee; i. To expend any of the moMye or 1+roportlos oC thv oorporatlon, rhether they Ls oapital 1rneeLew nts or Snoomo from the mare, for the purpoee¦ of Lho oot•I+ornLlon; F. To do u+el pertorw all suah sots and thingo and to parry on oil ouab busSMee ae shall be vroper, noooeuury, ur aomenisnt for the furtheranoe of the ob)eote and I+urpoeoe aforesaid; and U. To hero all other such powers capable of Uolrq; vested in oorporstlone Mt orgonlied for profit urelur Lho lame of the gtnte of Hoea11. Y. The duration of the oorVOybLlon ohall bo Iwrpetual. VI. The buelnoee and nftnlre of tho aorl+oratlon ohull Ue oaM6ed by a Doard of ?inotore ooMleting o[ MC lose than ties (5) Mr moro than tmelre (1Z) penone, mho shall bo quollfled, nominated, eLoted, and appointed ae le pwvlSo.l 3• for 1n th• Dy-Laws. Th• Doard of,Dlreatorr shall huvo full powwr to control and direot th• buelneo offal » of the corporation, •ubJeot, however, to SnaLruotlo ne by tl,a membaro and Lo any 1lmlto tlon¦ contwlnod herein or In th• By-Laww of Lho corpora tlo n. '1T,• Snltl al dl»otors oC tl~• uorl,oru Llon and their buelnooe aM hone nddroeeoo are ae folluwo. Nane Buelner• Addreae II_mo Addroao Uark Y. suiherlarrl Korowneno Eleaentnry Koulukokun, Ilawnll IIohool Keslakekua, Howall K1d YoCOy, Jr•. D.V.Y. Kealoke kua, Ilowrll Kou lukokua, Ilawnll KaLauenes Tomlts DeDartsenL of 9oalol Rurol noute 8enioes Iloluoloo, Ilawull Kealakekua, Hawa11 ' c/w r. Ch1111116worLh Chuok 8w11'r 9rrrlaw Cuptoln Cook, >lLation Ilawoli Kallw-Kona, Ilawnll Muth A. S1elylthoL KesLkekw, Hsxuil Kealakekua, Flawnll willing Ueul Kenlakekw, Hawa11 Koolukokuu, Ilawnll 111 LOt 0. DooM, Y.D. Kealakekw, Mswa11 I:rulukekua, Horsll 1;the1 P. (AwLy) Yurray Kailw-Kona, Nmwr11 Kalluu-Kona, Ilowuli llarCa»t ADDle Kor,owaena Llewntary Ilonounnu, Ilawnll 6ahool KoaLkakus, Ilawnll Darld Y. Prager D1111t1Khaa ImrwatmonL Cnptuln Cook, Ilaaall CorporsOlon CnpLaln Cook, Ilawnll VII. fin offioara of th• oorporation shall donolst of ruoh offlawra sa shall W prdrided Cor in thw By-Lawn rlth rush gwllfiodtlona, duLlaa old poewra as an proridwd for In th• By-Laver. Yha SniL1a1 offlow» of th• aorpopLlon olel thwlr bwlnrar and homw addnaaa• on as followws Gfflos N~mr ~urirlwwa Add»aa Ilop Aldrosa P»aldont 1:ork Y. Dutharland !(onawawn6 Koalakokua, Hawaii Itlaantorl Ddhool Kwalakakus, Ilawsll A. { , Off lca Nnse Uuoi noee AJd roee Il u,n~ A:l rcaa V Soe 1•roeldo nt Fatsuroon Taeltn Dopartrant of Rurnl louLo Ooelul 9orvluae Iloluu loo, Ilunall healnkokua, Ilawnll :,ooretory I.uth A. 91o1~1tho Ln Kealakekua, Ilownll Y•ui, luNo ru~,ll~r.u11 Treaourer nllllar Ueui uto to Tax Offico I:sl, lt, kukua,llurall Konlakekua, Iluwall VIII. Wrbore may be adrlLtod and oapollod in tha m~nnor Provided for Sn the Dy-Lowe. The Propooed Uy-la,we Vror lde Mot resbere eholl oonele6 of reeldents of the Konn nrou of Lhe Oounty of Ilara11, ,9Late of Iiawal 1, who aurLlfy Lhalr unselfleh SnteneL In prorotl~ the staled purpoeoe of L11a oorPorstlon. These proposed Dy-taws Turl.hor Drorldo LhoC meeberehlP shall tarrlnote either upon nelgnntlon of rorbers duly oooepte6 by the board of Dlreotore, by fallun Lo root tha duos or een See npulrerent for werber~hlp of Lor due noLioe, or by a ralorlty rote of Lhe uuorur of Lho mu.nt.••a~lp Sn tors of expulsion. I11. Tho oorporaClon shall hero the Poway tD dlaeolre, old It shall hers the power to QSstrlbuts ell or any port of Sts properties or assets slthor before or niter dlaoolutlun, Lo any othor oiurlteble oorporotlon or Eruct haying Purpuooe ¦lrllar to those of Lhls oorporaClon, ne a rrJorlty of tho rNMrshlp at the Eire of dissolution shell asree ulwn. X. '!he oorporaClon le not or~anlaed [or Profit and ¦111 not lsew arp ¦Cook. Ilo part of its assets, lnoaew, or earnlllge sill b• Sesusd for dlrldends, or sill otharolss be i vlthdroen or dlstrlbuted Co Ste Nrboro, Dlroators. ur Offloers, •:aept Cor oerrlese sotwlly rrnlond to Lhe oor7wrntlon, or se otherwise prodded honln. S• XI. iho pro Dorty of the Corporation o M ll ulonu l,a 11~L•lo for pay wants of the debts oral 11ub111Lloe of Llw corpurat~on. XII. the corporation shall cowlrleto !to urgarrl;.u Llun with In slaty Jaye after Seeua nce of Lhe Charter of lncorpurn Llon. XIII. 1Tre Sn1 L1al Oy-LUeo of Lhe corporation olru ll Lu adopted by a walorl Ly vote of Lhe pwbe re proount uL u moats rg duly called and Lo be held within thirty (}O) duyo fr•uw Lhu Seouonoe of Lhlo Charter oC Inoorporatlo n. Ho tlco n1~u 11 bo given thereof ¦Catlrts that o purpoea of Lhe woating Su Lo oonalder the adoption oC the By-Lose. 1Tre Dy-Laws woy bo aurtrled by n two-thirds waJoril~y oC Lhe aewberohlp Irrueorrt at wny euetlris of Che pwWra duly called for the purl><+ou of aonelderlrts the owendwont of the Dy-Laws. A cor•tiflo,l coVY o[ enld Uy-Lawn shnll be filed vlth tho Director of fagulutory ASeneiee of the !state of Haes11. Iii 11I?NESS IIH611~UP, I hove horaunto dot wy hand aryl oaueed the offlalal seal of the Dapartwent of He~uldtory ASenolee of ~Uu S`La~t'a~of Ilawaii to be horaunto uffiaad this ~~~d47 SOf''.r~r,5~raa_ 1946. r•• 3~7f a ijilwOW a (j ~ . Dlnator o[ Ilobulatory Alanclua r ;fir. ~ /i l•,•YI 6. • ANCNDlILHT:. TO TIIL CIIARTCR OF INCORPORATION OF KONA Au::O(:IA I'IOII f01t RCTAROCD CITI2CN5 FIRST. Artie is III 1• hereby aaended by tl,o adJ anon of pare{rayh• II and I, as follows: II. To provided elderly persona and handiaappnJ peroona with houein{ IaailiLie• and ecru iae• •peoinlly daai{reed to acct their phyaioal, ¦ocial anJ peyaholo{iaal needs, and to proaot• CheLr I:alrlh, security, happiness and usalulnea• in lore{er livin{, the char{c• for such CaoilitLe• and eorvice¦ to be predicated upon the provialon, aallllellance and operation thereof on a nonprofit basic. I. The Corporation is irrevocably daJieateJ to rnJ operated exeluaively tor, nonprofit pur;wses; anJ no paM of the ineoar or aeseto of the Corlaratiol: shall be distributed te, nor inure to the bel:utic o[, any individual. SCCOND: Article IV i• hereby amended as Collows: 1. Para{raph C is hereby deleted and suDotitutcd therefor is the tollowin{ nw pare{rsph C. C. To borrow coney and auw •viJanca of indcbtednec• in furtherance o[ any or all of the obysate of 1t• business, and to secure tM sear by aortp{e, p1W{c or other lion on the Corporatien'• property. t. Mtiele IV i• Curther auended by the adJition of pare{raphc N, I, and J, ac tollowss H. To buy, own. sell. aces{n, aort{a{e or lease any interact In real estate and personal property and to aonctruet, uaintain and operate laprovanetlte thaeeon naeeeeary or ineidellt to tM acco~pliclwnt of tM purpocas ant Corll! in Mtiale III 1lcroof. I _.1, ^ ~ Pag. 2 AHCI(DMCNTS TO TIIE CIIARTCR OF INCORPORATION JF RONA AS~OCIA'I IUII t'ON ItCTARUI:D CITIZENS I. To do and perlorw all acts reasonably necessary to acco~plieh the purposes of Lh• Corporation, including the •><acution of • Regulatory Agressrnt with the Secretary of Housing and Urban Dsvelopslent, and of such ocher instruants and undertakings as way be necessary to enable the Corporation to eecun the Denelit• of tinanoin`` under Ssotion 707 of tM Ibusing Aet of lStg. Such Regulatory Agraeswnt and otMr lnserunent• and undertakings shall rwian binding upon the Corporaelun, it• successors and assigns, so ion`` as a sartgaga on the Corporation'• property ie Mld by llw Secretary of Housing and Urban Developwent. J. In the event of the diaealution of the Corporation or the winding up of it• affairs, or other liquidation of its assets. the Corporation'• property shall not M conveyed to any organisation araated or operats6 for probe or to any individual for lass than the lair worker value of such property, and all assets remaning alter the paysrnt of the Corporation's debts atoll be conveyed or distributed only to an organisation or organisations created and operats0 for nonprofit purposes sirilar to those of the Corporations:PRDYIDED, however, that the Corporation shall at all tiwe¦ have the powr to convey any or all 01 its property to the Secretary of Reusing and Urban Devalopwent. THIRD: Article VI i. hereby vended Dy the deletion of the firer sentence which coeds: The business and affairs of tM corporation shall be ernaged by • board of Directors conuiutang of not less than flue (S) nor sere than ewlve (17) persom, rho shall M qualified, :wwinated, sleeted, and appointed u ie provided for in tM Sy-law. And substituted tMrefor is the following: 1 * ' • Page ] AHENDHCNT.i TO TIIE CIIARTCR OF INCORPORATION OF KONA ASSOCIA'T'ION FOR RCTARDCD CITIZENS The bueineu and •ttaire of tM corporalaw, shall be managed by a Board of Directors consisting of not les• than five (S) nor more than twenty-five (ZS) parsons, who sMll be qualified, nominated, elected, and appointed a• i• provided for an tlw Oy-Care. FOU RTII: Art icl• XIII is hereby vended Dy the deletion of said Article and substituted therefor is the following new Article XIII: The initial 6y-I+ws of the corporation shall be adopted by a majority vote of the wembers present at • meeting duly called and to Da held within thirty (70> days from eM issuance of this Charter o! Incorporation. Hotiee shall D• given thereot stating tMt • purpose oP the stating i• to oonsider the adoption of the Dy-Laws. The Sy-I+rs may De amended by • tro-thirds srjorLty of the memWrship present at any meeting of tM merWrs July called !or the purpose of acnsiderirtg tM asmndeent of the Sy-I+ws. The By-lrrs shall not be inconsistent wish the provisions o! these Article¦ or of the Regulatory Agrswnt Detwen the Corporation uw tM Secretary of !busing and Urban Development pursuant to Article III hereol. A certified copy of said gy-l~rs shall be !Clad with the Director o! Regulatory sganaiss of the Stator of Haraii. FIFTH: A net Article XIY is hereby added which shall read as lollors: So long as a mortgage on the Corporation's Vrope rty is held by the Secretary of Housing and Urban Development, theca Article• may not M vended without the Vriur written approval o[ the said Secretary. ADOPTED: Special Hubsrship Heating DA art. t~,•19e7 PI,ACC: Kona Kratts 9ECRLTARiY: i/~~..•~- ~ •i. (signature) Dlil'ANT4L'NT OF fUSQULATURY AOENCItD 9TAT6 OP HARAII In Che L'uttar of the Potltlon • •.•u. ~C .r.rr For Chartor 1 - of ) 6UHA ADDOCIATIOH FUiI }V;TA1lD6D CfIII.UEY.N ) ) PETITION FOIL CHARTER OP INOORPONAT ION OP DU'A~IF•A r+1 M ~r~'" KUNA A950CIATION FOIL FILTAIIDED CHILDII~'N ~~Ir+~~'•~ sure a H• To Tho flonordble 9IDNrY I. NASHIWTO On~l'rf''R'' u~ Direotor of rtogulntorP Agenaiee /~y~,~~ri~ ~1l~ State of Nneniir Caeca no. 11A111f M. OUTIIftIIlalD, KID ICCt1Y, JN•, U.V .11., KATSUWdA ?OYITA, ilY01l P. Cf1I1.1.IC?111011TN and HUTII A. Sl~I3NT110L1 nM reepeottully Petition for ulo laeunnoe o[ n charter of SnoorVOrotlon in N• torte and mnnnor at tho Chnrter of Inoarporntlon nttnohed he»to drd inoorPOrutud ha»in by »te»noe. IK IIITNSBS IINSAKOI the Snaorfwrntore have horu~unto eet their nnnde de of thle 3,~daP of : 19GG. J ' r u er and ~~~~,.~nlr U.V.~~ /ZZwr i-arw~_ etre]aeA Oel n ~ ii.~ JGM ~ / • A.~ ~ e. util f7r~~-- 1. i TNIhD JUDICIAL CIIICUIT ) COUNTY OP IIAiAII ) S1ATL OP IUMAII ) LIA1111 Y. 9UTHZNLAhT?, beln6 Bret duly eworn, dopooae nM oa~e urder oath, thot he Se Lhe Petltlunor In tho I'uro~olnE Potltlon Cor Charter oC Y.onw Aeeoolatlon Por Ro LUNud Chl]dnn, that he ha• nod the cold Ystl tlon and Chu,•tar, knowe the oontente Lhereot, and thot the ¦ N Se truo. r ~ 3u oL~Iurid • Subedr he and eworn to be Con se ' •.thk: laf of °~C.•.....fr.,! 19G6. Y , " ' 1 0 gry du o, r J roulE '~a• 1; State of Ilaws 1 .~I •.:;`Coeaiee ion eaPlne s ~ TXI11D JUDICIAL CIRCUIT OYUMTY OP IIAtAII STATI' OP IIApAIl LID 11000Y, JN., D.V.Y., belrg Clrst duly eworn, dopoeee and care order oath, that he le the PailCionsr Sn tho torw~olelr,.Yetitlon for Charter of [one Aesoalutlon For notaNed Children, Chat he hoe read the said PeC1C1on and Charter, knoea the oonCewte them-e(o,~f~,j,.ard Chat the euwu 1s Crue. LSY 1[OC~ rY. , ~balfeai•1y~ and • n Co betgre a r;t~i~~At~daP of% 1966• • ~~e'Yr~c, u o, I3i~ ITS u~ i~' n : dtats of Hawa 1 `Y~~o~ieslon •IlPiras •r- GI 4HIfiD JUDICIAL CIRCUIT ) CCUIRY OP HAl1AI2 ) STAT>; O? IIAwAII ) IIATSU.~?dA lOililA, beln6 first duly eworn, delwswe aryl care unlsr oaCh, Chat he is the Pstltlener in the forogoin5 Petltlon for Charter of Cona MaoolaCion Por Rstardsd Children, that hs has rand the cold P•Litlen and Charter, knows Ws aontonta thsreo[, old that Lhe saae~a Crw. i ~ ,,.,.:7. a euaaaa a Sube~Yl~i and • rn Co b.ro» ao sh~a ~~.dalP ot~~, 19G6. ~i•Y'-'Phb e. Tu3 rou 1 / C 'SCaCe of Nassl1 'tl~ Casj~sioh a:plt+a S f- y alnc s. TIIIND JUDICIAL CIkCUIT ) COUNTY OF HAWAII ) 3TATa' 0I HAwAlI ) JAW( F. CIIILLI NCMOf:TH, De1ng flrot duly oworn, dopoooa and euye unlor oath, that ho So the Petitlonur !n tl,u Coregoln?; Petltlon for Charter o[ Kona AeeonloLlun For Re tarJed Chlld r+n, that ha hoe recd the enld Poll flan and Charter, knows the contents t C, an! hat the ease 3¦ true. A+ t nortl, 'subset;}bed and awq•n to be!'ore se ~~W'~e 3_ day of ti.( 1944. it:ot-pTy~Pu a, u o rl aufE c slats of Ilawa •il 4ytF8eeloelon oxplMe .t-/- G~ TIIIIID JUDICIAL CIpCUIT ) COUNTY OF IIAIIAII ) STATL 6F IIA7IAII ) RUTII A. SL4II:IITIIOLY, befog Clret duly oworn, dol~oooo and esye under oath, that she 1• Wte Petltloner 1n the foregoing Petltlon for Oharter of Kona Aeeoolotlon For MtaNud Children, Chet eha hoe nod th• sold Patltlon and Churtor, knows the oontente thereof, and thatt'het eo/~ae S/~egLrue. --~~$i. Itu t S ghthol~ .Subee~ and sw rn to befo» ne th}e day ol~~+-•-~?, 1946. otary u o, rou !Late of Haw • : Ly Carleeion exDlree ~ 1~'~~ 3• KONA ASSOCIATION FOR RETARDED CITIZENS dba KONA KRAFTS COUNTY OF HAWAII APPLICATION FOR FY 2001-2002 FUNDING SUBNIITCED JANUARY 2000 BY-LAW S BYLAWS OF KONA ASSOCIATION FOR RETARDED CITIZENS ARTICLE I MEMBERS 1. Membenhin. The corporation shall have one class of members to be known as regular members. A person may become a regular member upon: a) Making known his or her desire to promote the oblecttves and purposes of the corporation by signing the corporation membership application form; b) Satisfying the dues requirement For membership as set by the Board of Directors from time to time; and c) Receiving a majority vote of approval by the Board of Directors when his or her name is presented for approval. 2. Votieg~'rghjs o[ Memhen. At every meeting of members each member shall hx entitled to vote in person, or by proxy. Each member of the corporation shall be entitled to one vote. Upon the demand of any member, the vote for director(s) and/or the vote upon any question before the meettng, shall be by ballot. Except as otherwise provided by the coiporatton's Charter of incorporation, these Bylaws or by law, all elections shall be had and all questions shall be decided by a majority vote of the members present in person or by proxy 3. Terminatioe otMemhenhio. The Board of Directors, by affirmative vote of at least two-thirds of all of the members of the Board, may suspend or expel a member for cause after an appropriate hearing. Also, a member's annual membership shall automatically terminate upon a member failing to satisfy the dues requirement for any membership year by the date specified by the Board of Directors, however, the person may reinstate his or her membership at any time by paying the dues specified for the then current membership year. Any person whose membership has been terminated for cause, other than a failure to pay annual dues, shall not be eligible for membeishup far a period of one (1) year from the date of termination. 4. Re.+ig~tioe otMember. Any member may terminate his or her membership by filing a written statement to that effect with the secretary. KONA i\9999\3EOVI09. t\WFiG 5. Transfer ofMemhershin. Membership in this corporation is not transferable or assignable. ARTICLE II MEETING OF MEMBERS 1. Annual Meeting An annual meeting of the members shall be held on such date and at such time as the Board of Directors may from time to time designate, for the purpose of electing directors and for the transaction of such other business as may come before the meeting. 2. $pecial Meeting`. Special meetings of the members may be called by the president, the Board of Directors or by members having one-tenth of the votes entitled to be cast at the meetrng. 3. Place of Mee inf. The Board of Directors may designate any place within the District of North or South Kona, within the State of Hawaii, as the place of meeting for any annual meeting or for any special meeting called by the Board of Directors. If the place of meeting Is not designated then the place of meeting shall be the registered office of the corporation in the State of Hawaii. If all of the members shall meet at any time and place, and consent to the holding of a meetrng, such meeting shall be valid without call or notice, and at such meeting any corporate action may be taken. 4. Notice of Meetings. Written or pooled notice stating the place, day and hour of any meeting of members shall be delivered, either personally or by mail, to each member entitled to vote at such meetings, not less than 10 nor more than 60 days before the date of such meeting, by or at the directwn of the president. the secretary, the officers or persons calling the meetrng. In case of a special meeting, the purpose or purposes for which the meeting is called shall be stated in the notice. If mailed, the notice of a meeting shall be deemed to be delivered when deposited in the Umted States mail addressed to the member at his or her address as it appears on the records of the corporation, with postage thereon prepaid. 5. Actiee by Members Without a Meeting. Any action required or permitted undo Section 415B-16, Hawaii Revrsed Statute, as amended, to be taken at a meeting of the members, may be taken without a meeting if a consent m writing, setting forth the action so taken, is signed by all of the members entitled to vote on the subject matter thereof. 6. Qp~m. The members holding at least ten percent (10°/.) of the total outstanding votes which may be cart at any meeting shall constitute a quonun at such meeting. If a quorum is not present at any meeting of members, a majority of the members present may adjourn the meeting from time to time without further notice. KONAIb!!lV~OJ309.1\WHG Z 7. pig. At any meeting of members, a member entitled to vote may vote by proxy executed in writing by the member or by his or her duly authorized attorney in fact. No proxy shall be valid after 11 months from the date of its execution, unless otherwise provided in the proxy. ARTICLE III BOARD OF DIRECTORS 1. Number. Tenure snd Ouslilication. The number of directors shall consist of not less than five (5) nor more than twenty-five (25) persotu. F~rch director shall hold office anal the concliuran of the next annual meeting of the members of the corporation or until he or she has been earlier removed pursuant to ARicle III, Section 2 of these Bylaws. 2. Reaignation/Removal. Any director may resign at any trine by giving wntten nonce of such resignation to the Boazd of Directors. Any director may be removed from office at any time with or without cause and another elected in his or her place to serve for the remainder of his or her term by a masonry of the members present at a special meeting of the members called for such purposes or pursuant to Article II, Section 5 of these Bylaws. Any vacancy not filled by the members at the meeting shall be filled by the Board of Directors in accordance with Article III, Section 3, heroin. 3. Vacancy. Any vacancy in the Board of Directors occumng during the year not filled by the members may be filled for the unexpired portion of the term by the affirmative vote of the majority of the remaining Board of Directors then serving. Any director so elected by the Board of Directors shall hold office anal the next annual meeting of the members of the corporation. ARTICLE IV MEETINGS OF DIRECTORS 1. A regular annual meeting of the Board of Directors shall be held without other notice than these Bylaws, iarmediately after, and at the same place as, the annual meeting of members. The Board of Directors rmy provide by resolution the time and place, either within or without the State of Hawmi, for the holding of additional regulaz meetings of the Board without other notice than such resolution. 2. Sneci>.i MeetLnay, Special meetings of the Board of Directors may be called by or at the inquest of the prdident or any two dimtors. The person or persons authonzed to call special meetings of the Board may fix any place within the Distract of North or South Kona, State of Hawaii, as the place for holding any special mcetrng of the Baard called by them. 3. ]Ygtjc~ Notice of any special meeting of the Board of Directors shall be given at least five (5) days prior to the date set for the meeting by verbal or wntten notice delivered personally or sent by mail or facsimile transmission ("fax's to each director at his or her address or fax number as shown by the records of the corporation. If mailed, such notice shall be deemed to KONAI\9999UtiaV209.1\WHG 3 be delivered when deposited in the United States mail in a sealed envelope so addressed, with postage thereon prepaid. If notice is given by fax, such notice shall be deemed to be delivered when the fax is successfully sent. Any director may waive notice of any meeting. The attendance of a director at any meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at nor the purpose of any regulaz or special meeting of the Boatel need be specified in the notice or waiver of nonce of such meeting, unless specifically required by law or by these Bylaws. 4. At all meetings of the Board of Directors a majonty of the directors shall be necessary and sufficient to constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the Board of Directors, except as may be otherwise specifically provided by statute or by these Bylaws. if at any meeting there is less than a quorum present, a majonty of those present may adlouin the meeting from time to time without further notice to any absent director. 5. ~ ion Directors Without a Meetine. Any action required or pertnltted under Section 415B-16, Hawaii Revised Statutes, as amended, to be taken at a meeting of the Board of Directors, maybe taken without a meeting if a consent In venting, senmg forth the action so taken, is signed by all of the directors. 6. Compensation. Directors shall not receive any stated salary or any other compensation. ARTICLE V OfP'I?ICERS I . Q~n. The officers of the corporation shall be a president, one or more vice-presidents (the numbu thereof to be determined by the Board of Directors), a secretary, a treasurer and such othu oi5txts as may be elected in accordance with the provisions of this Article. The Board of Dirextors tray elect or appoint such othu officers, including one or more assistant secretaries and one or more assistant treasurers, as it shall deter[ desirable, such officers to have the authority and perform the dudes prescribed, hom time to time, by the Hoard of Directors. 2. Election aed T~rtn of Oiliee, The offices of the corporation shad be elected annually by the Board of Directors at We regular annual meeting of the Board of Directors. [f the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as conveniently may be. New otlices may be created and filled at any meeting of the Board of Directors. Each ol~cer shall hold ol'tice until his or her successor shall have been duly elccted and shall love qualified. 3. Any officer may reign at any time by giving wntten notice of such iesignation to the Board of Directors if the resignation would not be a violation of any KONAIV!!!glOV2eM I\WHC 4 contractual obligation that the officer may have to the corporation. Any officer elected or appointed by the Board of Directors may be removed by the Hoard of Directors whenever, in its~udgment, the best Interests of the corporation would be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the officer so removed. 4. Vacancies. In case of any office of the corporation becomes vacant by death, resignation or any other cause, the majority of the Directors then in office, although less than a quorum, may elect a person to fill such vacancy, and the person so elected shall hold office and serve until his or her successor shall have been duly elected and shall have qualified. 5. president. The president shall be the principal executive officer of the corporation and shall preside over the business and affazrs of the corporation He or she shall prcstde at all meetings of the members. He or she may sign, with the secretary or any other proper officer of the corporation authorized by the Board of Directors, any deeds, mortgages, bonds, contracts, or other instruments which the Board of Directors has authonud to be executed, except in cases where the slgrung and execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws or by statute to some other officer or agent of the corporation, and in general he or she shall perform all duties incident to the office of president and such other dunes as may be prescribed by the Board of Directors from time to time. 6. Vice-President. In the absence of the president or rn event of his or her inability or refusal to act, the vice-prcstdent (or to the event there be more than one vice-president, the vice-presidents in the order of their election) shall perform the duties of the president, and when so acting, shall have >}ll the powers of and be subject to all the restrictions upon the president. Any vice-president shat{ perform such other duties as, from time to time, may be assigned to him or her by the president or by the Board of Directors. 7. Treasur{,~. The treasurer shall have the custody of all funds, property, and secuiities of the corporation, subject to such regulation as may be imposed by the Board of Directors. He or she may be required to give bond for the faithful performance of his or her duties, in such sum and with such surety as the Board of Directors may require. He or she stall enter regularly on the books of file corporation to be kept by him or her for the purpose, full and accurate account of all moneys and obligations received and paid or incurred by him or her for or on account of the corporation, and shall exhibit such books at all reasonable time to any director or member on application at the offices of the corporation. The treastircr shall, in general, perform all the duties incident to the office of treanirer, subject to the control of the Board of Directors. 8. SsG[tt>t~• The secretary shall have charge of such books, documents and papers as the Board of Directors may determine and shall have the custody of the corporate seal, if any. He or she shall attend and keep the minutes of all the meettngs of the Board of Directors and members of the corporation. He or she shall keep a record, contaimng the names, alphabetically arranged, of all persons wino arc membm of the corporation, showing their places of residence, and such book shall be open for inspection as prescribed by law. He or she may sign with the president KONAI\9!!!\IaaV2iK.1\WNG 5 or vice-president in the rtame of and on behalf of the corporation any contracts or agreements authorized by the Board of Directors, and when so authorized or ordered by the Board of Directors, he or she may affix the seal of the corporatton, if any, to any contracts or agreements. The secretary shall, in general, perform all the dunes Incident to the office of secretary, subject to the control of the Board of Directors, and shall do and perform such other dunes as may be asstgned to him or her by the Boazd of Directors. 9. Assistant Treasurer and Assistant Secretaries. [f required by the Board of Directors, the assistant treasurers shall give bonds for the faithful discharge of their dunes to such sums and with such sureties as the Board of Directors shall determine. The assistant treasurers and assistant secrctanes, in general, shall perform such duties as shall be assigned to them by the treasurer or the secretary or by the president or the Board of Directors. ARTICLE VI COMMITTEES 1. Committees of Directors. The Board of Directors, by resolution adoptcd by a majority of the directors to office, may designate and appoint one or more committees, each of which shall consist of two or more directors, which committees, to the extent provtded In said resolutton, shalt have and exercise the authority of the Board of Directors to the managemrnt of the corporation: provtded, however, that no such committee shall have the authority of the Board of Directors in reference to amending, altering or repealing the Bylaws, electing, appointing or removing any member of any such corruruttee or any director or officer of the corporation; amending the Charter of Incorporation; restating the Charier of Incorporation: adopting a plan of merger; adopting a plan of consolidation with another corporation; or authorizing the sale, lease, exchange or mortgage of all or substantially all of the property and assets of the corporation; authorizing the voluntary dissolution of the corporation or revolting proceedings therefor; adopting a plan for the distribution of the asses of the corporanon; or amending, altering or repealing any resolution of the Board of Directors which by its terms provides that it shall not be amended, altered or repealed by such committee. The designation and appointment of any such corrunittee and the delegation thereto of authority shall not operate to relieve the Board of Directors, or any individual director, of any rcspotuibiliry imposed upon it or him by law. 2. Other Committee. Other committees not having and exercising the authority of the Board of Directors in the management of the corporation may be designated by a resolution adopted by a majority of the directors presrnt at a meeting at which a quorum is present. Any member thereof may be removed by the person or persons authorized to appoint such member whenever, in their judgment, the best intemsn of the corporation shall be served by such removal. 3 Term of Office. Each member of a coitunittee shall continue as such Irntil the next annual meeting of the members of the corporation and mtit his or her successor is appointed, tutless the cortunittee shall be sooner terminated, such member is removed from such committee, or unless such member ceases to qualify as a member thereof. KONAI\!l99UaeV20l.1\WNG 6 4. ('hairman. One member of each committee shall be appointed chairman by the person or persons authonzed to appoint the members thereof. 5. Vacancies. Vacancies in the membership of any committee may be filled by appointments made in the same manner as provided in the case of the onginal appointments. 6. Ouorum. Utiless otherwise provided in the resolution of the Board of Directors designating a committee, a majority of the whole committee shall constitute a quonrm and the act of a ma~onty of the members present at a meeting at which a quonun is present shall be the act of the committee. 7. $yjg. Each committee may adopt rules for its own goverunent not inconsistent with these Bylaws or with rules adopted by the Board of Directors. ARTICLE VII INDEMNIFICATION OF OFFICERS AND DIRECTORS 1. Non-derivative Actions. The corporation shalt indemnify each person who was or is a party or is threatened to be made a pany to any threatened, pending or completed action, surf or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the nght of the corporation) if that person is or was a director or officer of the corporation, against expenses (including attomeys' fees), judgments, fines, settlements and other amounts actually and reasonably intuited in connection with the proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with inspect to any criminal proceeding, had no reasonable cause to believe the conduct of the person was unlawful. The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contenderc or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests of this corporation and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person's conduct was unlawful. 2. Q,gpyative Actions. The corporation shall indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending or complete action or Butt by or m the right of the corporation to proctirc a judgment in its favor because that person is or was a director or officer of the corporation, against expenses (including attomeys' fees) actually and reazonably incurred by the person in connection with the defense or settlement of the action if the person acted to good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of this corporation; except that no indemnification shalt be made in respect of any claims, issue, or matter as to which the person shall have been adjudged to be liable for negligence or miisconduct in the performance of the person's duty to this corporaUOn unless and only to the extent that the court in which that action or swt was brought shall detentiine upon application KONA1~99l9UaaV20l.1\WHG 7 that, despite the adjudication of liability but in view of all the circumstances of the case, the person if fairly and reasonably entitled to indemnity for such expenses as the court deems proper. 3. Any indemnification under Sections (and 2 of this Artrcle (unless ordered by a court) shall be made by the corporation only if authorized rn the specific case upon a determination that indemnification of the director or officer is proper In the circumstances because the director or officer has met the applicable standard of conduct set forth in Sectrons 1 or 2. The determination shall be made (a) by the Boazd of Drrectors by a majonty vote of a quorum cons?sting of Directors who were not parties to the proceeding, or (b) if a quonun is not obta?nable, or, even if obta?nable ?f a quorum of disrntercsted directors so directs, by independent legal counsel In a wntten opinion to the corporation, or (c) by a majority vote of the members (lf any); or (d) by the court In which the proceeding is or was pending upon appl?cat?on made by the corporation or the director or otlicer or the attomey or other person rendering services in connection with the defense, whether or not the application by the director, officer, attomey, or other person rs opposed by th?s corporation. 4. Advance Payments. Expenses incurred in defending any proceeding may be paid by the corporation in advance of the final disposlt?on of the proceeding as aulhorrud by the Board of Drrectors rn a particular case upon receipt of an undertalting by or on behalf of the director or officer to repay such amount unless it shall ultimately be determ?ned that the director or officer rs entitled to be rndemnified by the corporation as authorized in this Article. 5. Other iP ts. The indemnification provided by this Article shall not be deemed excltuive of any other righu to which those indemnified may be entitled and shall continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the heirs and personal representatives of such a person. 6. I!!su!''!~e~ The corporation shall have the power to purchase and maintain insurance on behalf of any director or officer of the corporation, agaistst any liability asserted against or incurred by the directors or otFcer's status as such, whether or not the corporation would have the power to indemnify the director or officer agarnst liability under this Article. ARTICLE VIII CONTRACTS, CHECKS, DEPOSITS AND FUNDS 1. Ssatmsh. The Board of Director may authorize any officer or officers, agent or agents of the corporation, in addition to the offices so authori7sd by these Bylaws, to enter into any contract or execute and deliver any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances. 2. All checks, drafts or orders for the payment of money, notes or other evidences of indebtedness issued in the name of the corporation, shall be signed by such officer or officers, agent or agents of the corporation and in such manner >u shall, fiom time KONAli99!lUtOVrOl.11WHC 8 to time, be detent?ined by resolution of the Board of Directors. In the absence of such determination by the Board of Directors, such instruments shall be signed by the treasurer or an assistant treasurer and countersigned by the president or avice-president of the corporation. 3. J2gAi~. All funds of the corporation shall be deposited as soon as possible to the credit of the corporation in such banks, trust companies or other depositaries as the Board of Directors may select. 4. ~jf~. The Board of Directors may accept on behalf of the corporation any contnbution, gift, bequest or devise for the general purposes or for any special purpose of the corporation. ARTICLE DK CERTIFICATES OF MEMBERSHIP 1. Certificates of Mcmbenhin. The Board of Directors may provide for the issuance of certificates evidencing membership in the corporation, which shall be in such form as may be determined by the Board. Such ceRtficates shall be signed by the president or a vice-president and by the secretary or an assistant secretary and shall be sealed with the seal of the corporation, if any. All certificates evidencing membership of any class shall be consecutively numbered. The name and address of each member and the date of issuance of the certificate shall be entered on the records of the corporation. [f any certificate shall become lost, mutilated or destroyed, a new certificate may be issued therefor upon such terms and conditions as the Board of Directors may determine. 2. issuance of Certificates. When a member has been elected to or is entitled to a membership and has paid any initiation fee and/or dues that may then be regiured, a certificate of membership shall be Issued in his of her name and delivered to him by the secretary, if the Board of Directors shall have provided for the issuance of certificates of membership under the provisions of Section 1 of this Article IX. ARTICLE X BOOKS AND RECORDS The corporation shall keep correct and complete books and records of account and shall also keep minutes of the proceedings of its members, Board of Directors and committees having any of the authority of the Board of Directors, and shall keep at the registered or pnncipal office a record giving the Hemp and addresses of the members entitled to vote. All books and records of the corporation may be inspected by any member, or the members agent or the member's attorney for any proper purpose at any reasonable tunc. KONAt\999917ae173a9.1\WHG 9 ARTICLE XI FISCAL YEAR The fiscal year of the corporation shall begin on the first day of July and end on the last day of June in each year. ARTICLE XII DUES i. Annual DU~+, The Board of Directors tray determine, from trme to tune, the amount of annual dues payable to the corporation by members. 2. Payment of Dun. Dues for existing members shall be paid on or before such date as the Boazd of Directors may specify as being the date for a pazticulaz membership year A person, however, may become a member at any time during a membership year upon satisfying the requrrcments set forth in Article I, Section 1 herein. ARTICLE XIII SEAL The corporation may have a seal of such form as the Board of Directors may from time to time determine, which seal shall be in the custody of the secretary. The Board of Directors may change the form of the seal or the inscription thereon at pleasure. ARTICLE XIV WAIVER OF NOTICE Whenever any notice is required to be given under the provisions of the Hawaii Nonprofit Corporation Act or under the provisions of the Charter of Incorporation or the Bylaws of the corporation. a waiver thereof in writing signed by the person or persons endded to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. ARTICLE XV AMENDMENT TO BYLAWS These Bylaws tray be altered, amended or repealed and rtrw Bylaws may be adopted by atwo-thirds nujoriry of the members present at any meeting of the members duly called for the purpose of considering the amendment of the Bylaws. No amendment to these Bylaws, however. may be made which would render them inconsistent with the provisions of the wrporauon's Charter of Incorporation or the regulatory agreement between the corporation and the Secretary of Housing and Urban Development. KONAIV!l917aQVIel.1\WFIf I0 ADOPTION OF BYLAWS I, the undersigned Secretary of the corporation, on this ~6 day of ~/t~) , 1995, do hereby certify that the foregoing provisions were adopted as the Bylaws of said corporation by the required vote of the members of the corporation at a meeting duly called for that purpose held on ~-a- ~ (e , 1995. `91-~a~..~.rle-c-.al, secretary ~ KONA 1 \999913!0 V 209.1 \W NG ARTICLE XVI RULES OF ORDER Robert's Rules of Order, revised, shall govern the conduct of business at all meetings of the members, the Hoard of Directors and committees In all cases in which they are applicable and not in conflict with the Charter of Incorporation or these Bylaws. KONAIV!lTSaOJ20l.1\WMG l l