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HomeMy WebLinkAboutCOM 0122.010 2000-2002 •._.=Y= - Stephrn K Ysnushuo _ - _ - Harry A Takahnlu Manor ^ _ Dneeror • Y .r r;:~ ~ ~ar~' COUNTY OF i~41!l1~41`I DEPARTMENT OF FINANCE 2s Aupun, Sneer, Room ~ la Hilo, Hawn, %n0~2s2 (808) %I-6234 • Fu (803) %I-8249 HAWAII COUNTY NONPROFIT GRANTS (FY 2001-02) HUMAN SERVICES NONPROFTf GRANTS REVIEW COIW~ITITEE FISCAL YEAR ENDING June 30, 2002 DATE OF APPLiCATION• Jaranrv 7B. 2Cp1 GRANT APPLICATION FOR _ Outreach/Education Program (r'ra+~ Waal Legal Name ofOrgamzatron: Bridge House, Inc. Matlmg Address. P.0. Box 2489, Kailua-Kona, HI 96745 Factltty/StteAddtess: 78-6687 A Mamalahoa Hwy., Holualoa, HI 96725 Duector/Stte Manager. Cheryl Taupu OrganvznonPrestdent: Walter Welton Contact Pelson (('Want Writer): Cheryl Taupu Amount of Regaert for County Funda: S 16 , 716 Total Annual Budget of Organvehon S 7 59 , 9 5 7 Has the appltcant applied for any other fitods from the County of Hawati this fiscal year? ? Yes Soutce/Depattment: Q No Agency/Prognm(a): ? Soctsl Services ? Youth Programs ? Elderly Programs CheckCategones: ? CulhueandArts ? Education 0 Other Dru and Alcohol Rehabilitation B~, define We program for w'hlefs fanding b bdnY trogneated: Outreach/Education to disenfranchised substance abusers. Comm. No. ~ .Z ~ / O File No. 8 U D Bet. Tot Prrasaurb HSEDG -1- FEB I I. QUALIFYING STANDARDS FOR APPLICANTS An applicant must meet all of the foliowtng starrdatds: ® Be chartered or otherwise authorized to do blames m the State for charitable purposes sad a:empoed fiom the federal atcome tax by the Internal Revenue Service. ® Have a governing board whaae members serve without cotopenaanao and have rb confltet of interest between their regular ocmpwom sod the service provided. ® Have bykwa or pohcta which desrnbe the manner m which btisraas is conducted, iacludmg management, audit, focal pohna and procedures, pohcra on nepotism, and pohcra oa management of potmnal coofitet of msereat ® Have at lean one year's expeneace wrath the semis or acnvtry for which the eppropnanan is sought a can otherwise demomtnte m the aansfacnon of the County suffurmt expemse to aroensfiilly carry out the semce or eenvtry ® Be licensed and accredited m accordance wvdt applicable regmremmts of Federal, State and County 4wa. II. GRANT COND1TiONS The applicant agrees to comply wrath the following t4rms and conditions prior to tecaving a grant award. A. Comply vnth apphcabk Federal and State laws prohibimg discnmmanon against airy person on the basis of race, color, nanooal ongm, rohgion, creed, sex, age, or handicap. B Agree not to use my public firads for purpaa of mtertunmmt or periryisites. C Comply with such other requuemmta es the Drreetor of Finance may pracnbe ro amore edheemce by the nonprofit orgaoianon wath Federal, State. sad Caunry laws, and atabhshed standards for fiscal and Proms management D Allow the Dueetor of Finance, the coiimnttees of the council and then staffs, sad the I.egishiuve Auditor accea w records, reports, files, and other related docummis m order that the program, itianagmient, and focal pnietica of the nonprofit orgmnation may be monitored and evahiated to nacre the proper and effeenve expenditure of public funds. III. RECORDS AND REPORTS A The apphcaat shall follow generally accepted aceouauag procedures and pracnca and shall niamtam books, rewrd+, docummu sad other evidma which sufficiently and properly aceamt for the expenditure of County ftmds. The boalu, reeorila aed doeummn shall be subject et all reaaombk tuna to inspeeaon, reviews, or audits by the County expending agcy, the Dt:eeoor of Finance, and the L,egialative Audioor, or by rhea reprosmtanva. H. The County expending agency, Director of Finance, or County Council may request periodic wnnen reports on the use of County [tends. C. The ncnprofit organizenon shall submit a final written report to the I,egulanve Auditor wtthm sixty (60) days after lime 30 of the fiscal yar. The report shall include m exphioaaon of the public benafiu droved firm the awarding of the grmt, a lishog of other fimdmg satirca and amamu oboimed dtamg the grant pettod, and a compleoe aeeotmtmg of all expeodima siippermd by Cotmry of Hawmi grant fiends {per Chapter 2, Arock 23, Secnoa 2-142(d), Hawail Cotmry Code, aomoded August, 1999} -2: IV. QUARTERLY ALLOCATION Under no cuotrmataocn shall grant funds be disbursed in a lump sum p;ymeac Grant fimda wdl be dwbutxd to Grantee only through a quarterly allocatan prxew. The dwbursement of grant funds can be formuWed on an equal quarterly appornotuttent base. V. GRIEVANCE PROCEDURE The applicant wtll adopt and memtam a gnevance procedure to assure proper accountutg for any concern end complamis about ris program or semces that may arise from tis members, employees, chenis or from other members of the public VI. DISCLOSURE OF INFORMATION All mformanon, data or other metenal provided W the County by virtue of this applicaaon ehW be subject to the Uniform Information Pracnw Act (UIPA), Chapter 92F, Hewau Revved Stamtp. All such marsntl is deemed government record and shW be open to the public and may be provided W other public and/or pnvate iundmg soured, VII. CONTINITED ELIGIBILITY Any applicant or reeipieat who withholds or omlb any material faeb or deliberately rtsYrepresenb saeh f~cb to the County of HawW shW: (1) Immediately be disquali5ed from comrderanon for Nouptft Grant fimdmg, OR (2) be m violation of the terms of the Grant Agreement of Cotmry foods m which case a grant agreammt can be terminated by the County aW the recipient or provider may be liable to reuaburae W or s poman of my funds received therein. VIII. ACKNOWLEDGEMENT Bridge House, Inc. (Legal Name of Crgenrzanon) hereby agrees toedirunwterthe Outreach/Education Program (Program Title) in accordance with the regulaziom, pohciee and procedures prescnbed by the Hawau County Firisace Department. Dwmbution of grant funds is limited to grantees which are in compliance with County regulations, pohaes sod procedures. The County reserves the nght to withhold groat distrrbiinooa az my time the giantx is not m compliance It is the policy of the Couary of Hawazi and for thox who do busiiteaa wath the Couary to provide equal employment opponumnes to W peraom regardless of race, physical disabilities, color, religion, sex, age, or national ongm as mandated by the Federal Cml Rrghb Acw, as amended, and any other federal or state laws relating to equal employment oppontuuues IX. AMENDMENTS TO THE APPLICATION/EVALUATION The applicant assures that n writ submit to the Htiman Services Nonprofit Gtmis Review Committee (HSNPGRC) for pnor renew and approve/ a wntten request end ~wtrficanon for any changes, additions, or delenoiu to any portion(s) of the grant apphcanon or a duly executed Grant Agreement of County Funds. The applicant will cooperate and assist m any effort undertalcm by the HSNPGRC to evahiate, mspea or otherwise mommy the effrxnveiieu, feasibility, and/or cost et5eieacy of any and all practices, polies and piooedmes or acnnna pursuant to tills apphcsuon or any grant desigriauon err Wounon received es a result of this application. -3- X. AUTHORTfY AND CAPACITY OF APPLICANT The applicant certifies that a hag the authonry and capac~ry to develop and aubmu thrs apphcaaon, and to fully admrruster the program(s) Pursuant to thu appltcatwn UNSIGNED PROPOSALS WII.,L NOT BE ACCEPTEDI Srgna rdmVCharrperson Date ll~~ f Srgnattrre of Execu aaager Date -4- PROGRAM/SERVICE DESCRIPTION a 1. Describe tlFle program for wMch funding is bNr1g ragrNated. Bridge House is a therapsutlc living and vocational skill building program, which oRers substance abuse services to individwls wishing to start a new life free from the diasasa of addiction. Therapeutic Living services include a safe and dean living environmern, rnteka, assessment, service planning, individual and group skill building, transporlatlon, referral. linkage, monitoring, advocacy and Ibllow up. Vocational Skill Building services are provided through a unique partnership with Bridge House Nursery Inc., in a aommerdal plant nursery. Residents are given the opportunity 1o partidpate in 15 hours per week of supervised agricullurel aclivities, wilrch have been developed to build or improve job skills end assist in the development of behaviors and altitudes needed for aoquuing and maintaining employment upon discharge from Bridge House. The Outreaclr/Education program targets homeless individuals warning services, but are diserNrerxhrssd and normally do not access substance abuse servx:es on their own. Services through this program include, but are nest limited m, referral m substance abuse tieatmerrt: help rn obtaining public benefits; and information on 12 step programs and meetlrq sd~rsdubs. The goals of the OutreachlEducation program are: 1 To offer early intervermon service 1b chronic substance abusers. 2. To offer servioas to indigent individuals, which help, improve their health 3 Identify vocational, education, financial and housing needs of residents prior to disd'rarge. 4. Provide follow-up services to monitor and ald fomrsr residerns as needed to prevent relapse and collect data on the efficacy of the programs of Bridge House 2. What unlque or signHlearrt services will bs provided? Bridge House contlnues to be the only agenq providing residential type services for substance abusers in West Hawaii. Of the three agendas providing therepeutlc living services staEevvide, Badge House is the only agency that has a vocational skill brnlding component bulk info its overall progrem, and is the only agenq that has an Outreach/Educalion program. The programs of Badge House have been developed to enhance Irfe and wptional skills concurentty with teaming the tools needed for long-term recovery from substance abuse. thereby freeing addrded men and women from the bondage of addiction and the assodated health and sodal probbms. 3. What specHic outcomes are to be achbvsd? Therepeutic Living and Vocational Skill Building Program a 85% of all residents admiCed Nall successfully complete/reoeive a clinical disd~erge from Bridge House. b. 90% of all residents clinically discharged will remain in substance abuse treatrnent uritil clinically discharged. c. 50% of all residents clirncally discharged will remain abstinent at six morntia post discharge d. 50% of all residents receivihg a dimcal discharge Nell be employed, rn sd~ool and/or job training six months post discharge. e. 50% of all residents receiving a dirncal discharge will demonstrate improved independent living skills as evidenced by re-integration uno the community f. 75% of all residents receiving a dirncal Wscharge will have rro new amesfs at six months post diadlarge g. 40% d aN residents receiving a dinical discharge wiU bs imolvsd in self-help or community support groups at six rtanlha post diadiarys. Outrsadr/Educatlon Program a. 50% d the indMdwla oontacbd wUl access wbstarxx abuse treatrrisrrt b. t)5% d IndhAduNs admitted hto Bridge Hausa through thb program wip woassruly completeJreaive a dfnial dfadtar+pe. c. 9096 d the program partkdparrfa rowiving a dinlcal disdtarge will remain in wbstanoe abuse trealrierit untll diniapy dfediargad. d. 50% d the program partidpanb wpl rwriain abstinent at sbc months post discharys. e. 50% d the program partldpanb roalving a dirrical disdwgs wiM be emptoysd, in school and/or job tralntq at six marglts poet dMcharpe. f. 50% d tM prognri pertidpants realv(ng a dir>tcal discharge vroo demonstrate improved ndaperrdent Nving skips as evdderrosd by rs-Irrtsgrspan into the community. g. 75% d the program partidpartb rsoaiiving a dinical disdrarge will have no new crests six months post disrtrsrgs. h. 40% d all this programs partidpants receivng a dkncal disd~erge will be involved in selt- help orcommunity support groups at sa months post disdiarge 4. How will tl1e proposed program empower parttclparrWclisnts to become seR- suRlclent and hcllltabs poeftlw social change? It has aMrays been the belief d Bridge Hausa that in order for reaidsrrts to auooesstuly re- enter our communiy as healthy, producpve adups healthy lifestyles, vopdonel skills, recovery skills including the 12-step Programs d NA and AA need to bs developed and/or enhagced To that end, aN programs crier by Bridge House have been devebpsd to empovuer residents change Cteir lifestyle from one d wbstance abusing non-contnbutlng members d the community people d who not only conMbute, but oorrtlnuousy'give bads' through ongoing oommunky service. AdditfonaYy, staff and other community members offer guidance and personal IMs experiences, which also empowers reaidertts to become ssp-sufficient and maintain life-long recovery. The OutreadUEducation program provides ndividuals who are disenfranchised valuable information needed to fadlitate healthy lifestyle chaioes and positlve sodail changes. Additlonelly, individuals referred to Bridge House Therapeutic Living and Vocational Skill Building Program are provide extra help during the re-integration period and up to sbc months post discharge to fadlitate self-wffidency and provide support so the individual can maintaM recovery. B. ProblsrNNeed: 1. What Is the probleminssd the program is designed to riser? Health and human service providers recognize ttte need for wbstanos abuse services to disenhanchfssd wbatar>ce abusers. 'Kress include homeless individuals. indlvidwis living in isolated oommunitlss and ethnicapy diverse populatlons who do not nortnaipy seek help and in feat may ony seek help after ropNted visits to the hospital srtisrgerxy room from irrjurlee or illness related to substance alwas; and repeated airtsat for subatarxx abuse related dtarges. Although there have been numerous meetings and articles rehtir?g to ths'problerri' d homeless Hess, the problem sUU rertreins. The major root suss d horrrelessnesa is substance abuse. Bridps Hauss has provided services to homeless individuals since ib inception in the eery 1990s, and in 1999 the Program (Ofi/Ed. Program) was implerrrsntsd which spsaficapy targeted Normelssa individuals The OutrsachlEducation Progrem is despised to offer information and services to faeilr~ate I lifestyle charges that helps people such as the Itorttelesa, become corrtribudrrg members d our oommuntiiea. 2. Who k the target populatlon and what aro the specMc needs? Ths target populatlcrt aro men and women 18 yeas d age or older with distkrc! dtaracteristics that separoles them from the general population. Most d these irtdividwls are chronic, sever substance abusers who: ? have litlle or no Anandal rssouress ? may have aimutal records and cement or pending court cases ? have a mwltihrds d medical and/or dsrMal probNms ? have mental health problems ? are hameiees ? are unemployed or underompbyed ? lack smploymerk skiNs ? are educationaly defiaent ? lack famiy and community support systems to help them get into and remain in recovery This population requires strong case management services while they reosrvs substanoe abuse trsatrnent servrcas. Bridge House is stalled by highy skilled iisd'nnduals to enwre that residents recefve the ssrvioas and wpport they need. 3. What aro tM geographical arsa~s) to be served, facilities and hours of operatlon? Bridge Hausa serves the Big Island. Referrals are received from the neighbor islands, but preference ~ groan to residertta d West Hawaii. Bndge House is located in a pbaaarrt rurel enrtronment, on 7.5 acres d agriculhuaHy zoned land in Kahaluu Mauka, North Kone. The marn fadtity is a large 4-bedroom house equipped with 2 large restrooms, a large kitchen, living and dinrlg room areas that can accommodsbs 15 residents comtormby. On the grounds adjacent to the meM atnxxure are two cottages with adequate living space m accommodate five residsrrts each. There are agria~lhrral buildups that are being utilized for the voeatbnal skill budding progrem Bridge House is staffed 24 hours a day, seven days a week. Normal business hours are between 8:30 AM and 4:30 PM on weekdays, except holidays. C. CollaboratloNCoordinatlon: 1. What specMc measures will bs taken to collaborats/coordinab with other communky resounxs to achieve maximum program efficiency and cost efhctivensss? Bndge House has a lerplhy history d workirp ooHaboretlvely wdh other resources in the community. Workng as part d a local, as well ss statewide team ensures that the residents d Bridge Hausa receive quality services in an eRlderrt cost etTective marxtsr. Ths community services we work with inducts, but are not limited to: Kona Communiy Hospital Patients reoelve debox serviose and aro referred to Bridge House as part d a continuum d cars. Staff and rssideMa also volunteer as speakers for in-ssrvioa trainirp for hospital staff. Kapiolani Child Probsdion Team This agency refers pregnant and parsrrhng females to 8ndge House. Addihonaly, all residents with dtildron are offered parenting class, once per week for soc weeks. Services are free of oharpe. Kailas-Kona Leammg Center This apenry provides residents with a vanety ofeducational services, indudirq literacy losses. computer classes, math classes, driver's liosnsinp 8 CDL classes and resume writlnp d.as. Services are tree of d,arpe. West Hawaii Counseling Services This agency mskss and rocaivea referrals b Bridge House Clients aro dually diagnosed Nnth mental Hlneas and substance abuse. Dept. of Human Services/CPS Refers clients to Bridge House as part of their a~ae plan to attain lore term recovery and reunification with their children. Dept of Human Seances/ Family and Adufl Serna~s Works closely with Badge House m ensure that resident receive temporary public benefits such as finandal and food stamp assistance. we are the ony agency with a desrpnated Income Mamtenenoe Worker. Med-QUEST Bridge House works closely wAh Chia apengr to ensure that residents restive needed medical Inauronoe. Family Support Services Bridge House provides time and facilities for this agency to provide supervised "sits between parents wrlh dtildren under CPS supervision. Bp Island Substana~ Abuse Counal (BISAC) Works cooperatively wdh Badge House to provide substance abuse treatment Drug Addiction Servia~ Of Hawaii (DASH) Has a unique relationship vnth Bridge House and provides ORLAMM maintenance treatment and groups for opiate dependent residents. Reoentiy opened intenarve outpatient treatment similar to BISAC. Care-A-Van Refers homeless individuals for residency. Assist residents m aa~ssing dental acre. (There are no dentists in West Hawaii who vnll see patients under GUEST ) NA/AA Provides peer support and introdua~s residents ip others m recovery and a fellowship that will help niairrFain life long recover. In woricinp a~operadvely with other agencies and community resources, we ensure that resident are provided a vanety of seances in a cost effective and effiaent manner. It these senrioes were aa~esasd through private preditioners, most of the abovementioned services would be too e~ensrve and ou4of -reach for the maiority of the residents of Bridge House. Additionally, due to the continued lads of adequate public transportation, Bndps House provides transportation services to and from all needed services, included out-of-area d needed. 2. How wiH these measures reduce or eliminate duplication of sarvicroa to your dssipnabd target group? Because of the unique naturo of the programs of Badge House, dupliartion of any of the afotementionsd services aro non-e~dstent D. Goals and OblaNiws: 1. 1fYhat an the major poaklbenchmarks of the Proposed proprom? a. Ensuro tlrat the medical and psyd~olopinl needs of at Isast 80 chemrarlly dependent individuals are met e~editiousy and witltout obstales or barriers. b Ensure that a minimum of t30 chemically dependent individuals receive substance abuse troatmsnt aervioas at Crs appropriate level of care. c. Asatst a minimum of 80 cfrertrlcally deperxbnt individuals in developing a recovery plan and improve length of abstinence from abohol and/or other drugs. d. Reduce reliance on public assistance with vocational and IRe skills development, resulting in re-integratlon into the communky. e. Promote erdependancs and life skill devebpnrent for residerrts, resulting in improved ability to function independently in the community. f Educate the community and its leaders on the impact of chemical dependency on businesses, healthcare systems, crime, famNiss and the community at-large. g. Develop strorrper advocacy for treatment of chemically dependency and increase support from the community towards this eMort 2. What spscfflc objectlve/action sbps are planned for each goal? a-I An irrdividuaNzed cane plan is developed for each individual admitted into Bridge House. Each plan addresses the medical, psydrobgical and 6nanaal need of the resident. a-II 20% of the indNiduals admitted through the proposed program will sucoessfuly complstahsoeive a dinical disdwge. b-I 50% of tM individuals contacted wiA receive referrals to substance abuse treatrnent trll All indMduals admitted Into Bridge House through the proposed program vnll receive substance abuse treahnent. VIII 90% of the individuals admitted into Bridge House through the proposed program will remain in substance abuse treatment until dirncally discharged a 50% of the individuals admitted into Bndgs House through the proposed program will remain abstinent at six months post discharge d. 50%,of the individuals admitted into Bndge House through the proposed program, receiving a dinical disdrargs will be employed, in sctrool and/or iob training at suc months post discharge. e. t30% of the individuals admitted into Bridge House through the proposed program receiving a dlnical disdharge vnll demonstrate improved independent Irving skills as evidenced by re-entry into the community f 755 of the indlvrduala admitbd into Bridge House through the proposed program receiving a dinical disdrargs will have no new artest at sa months post discharge. g. 40% of the indhriduals admitted into Bridge House through the proposed progrem will be inwlved in self-help or community support groups at srx months post discharge. 3. What Is the ttmalina (start and and dates) for each action step? All timelines start from the date that the individual is contacted by the outreach worker and/or is admitted into Bridge House Except for item all, all timelines end at suc months follow-up post discharge Item t}II starts from the day the individual resident is admitted into Intensive Oulpabent Treatment (IOP), and ends when ilia treatment provider dinically discharges the resident 4. What aignMicarrt cifent~antsred outcome(s) will the program achkva? Include in your anavrer how many partlclpante%lisnts wilt: a. Attaln at least one personal program outcome; or b. Show measurable progress towards your program goals. a. Ses question Q2 b. Staff on a weekly basin measures each resrdenPs progress Progress is evaluated by partiapation in all scheduled activities, general atlitude and behavior change, and progress in substance abuse treatrnerrt. Additionally, an individuaNzed service plan is developed for each resident, and the goals and objedivea stated in the service plan are continually being evaluated to ensure that aN the goals are being met. c All residents of Bndge House must peas through three phases. Phase I is the first soc fA eight weeks. In this phase resida~ts ere monitored closely and minimum outside contad is allowed. This is to faalifats the indlvidual'a need to focus only on recovery and Nfeslyla change. In Phase II, residents are aNowed telephone and visitadan privileges and allowed Nmited passes outside of Brtdgs Hausa. In Phase III, residents begin their transition out of Bridge House and can find peR-time employment Rearder>ts are also given more time outside of Bridge House >b find dean and sober housing and assimNata lrto the community. Residents appy for entianoa into Phesss II 3 III, and phase d~erges are primarily contingent upon the individuals progress m all aspsds of the progrem. E. Service DsHverv 1. What methodology will be used in the Proposed program's delfwry of senrlw(s)? The outieaoh/edua~tor networks with other health and human service providers, physidans and hospital staff, identifies subatarrce abuser wanting help to start the recovery process. The outisaoh/educatorsssesses the medical and psydro-sadal needs of the indMdual and provides the individual with options for subatarros abuse treatment and helps indrviduals access otMr needed services, as wall as gives them irAortnation on 12 step meeting dates and times. If an ind'nndual is qualified for the services of Bridge House, the outreach worker refers the rndiviciual for residency and worics with otlier staff members throughout the resident's staff at Bridge House and provides follow-up vis~tion and tontad until soc months post discharge The outreach worker works closely with other treatment providers and communrty resouroes to ensure that the identified needs of the resident are being met and helps resider>fs trensitioning out of Bridge House find appropriate housing and empbyment or lob tiairnrq/adua~tion The progrems of Bridge House in conlundion with community based services provide a "holistic approad~ in the treatment of d~emical dependency. This approach provides essential opporWn'rties for residents to practice I'de skill and job develpment, which must occur before the chemically dependent individual can become selRgoveming and return to the community as a productive member of society. F. Evaluatlon: t. What process will be used to evaluate the program and service(s)? 8ndges House uses aseven-step process 7b evaluate all programs and ma~ntam quality assurance. These are: a. Development of individual service plans. b Weekly stag eveluafions of all resrdsnt4. c. Case discussions with other service providers. d. Quarteriy and year-end reports >n all service providers. e. Site visits by funding sources . f. ORsring consumer aatiafadron surveys to all diachargmg residents. g. Oratnbutlng consumer setisfadion surveys to all service providers that Bridge House works with. 2. How will this process msawro the goals, obJsctlws, and outcome(s) specMsd in item D, 1~? i a. Developng a sernoe plan gives the individual resident and Budge House a road map to foNow that ensures that the resident's needs aro being met b. Weekly evaluations of aN residents provide staff the opportrYrRy b discuss the mdividwl rosidenta progross or lads of progress and the ssrvioes the individual might need to oontlnua to progross and/or strategies ways to help the md'mndual to progress in hialhsr isoovery. c. Cass discussions with other service providers ensure that the residents are receivirq appropriate services and aorta stag to areas that the individual may need help in. d. DocumerMatlon of services and site visits ensures that the program is being adminlsMred appropnatey e Same as d. f Consumer satisfaction surveys gives discharging residents the opportunity to give written auggestrons on how Bridge House can improve an services as well as tells BAdgs House what is working. g. Surveys from other ssrvfce providers gives Budge House an outsider's view of the services vie offer and whero we can make improvements. G. Program Fses: 1. Doss your organization charge a membership fee for service participants? K ysa, Describe or attach fis for service information? No 2. Doss the proposed program charge participants a fee for service(s) provided by your oryanization? K yes: a. Describe or attach fee for service information; and There is no cost to individuals using the sernoes of the Outreach/Education Program unless they become residents of Budge House Upon acceptance into Bridge Nouae, most residents aro considered temporenly disabled and qualify for temporary public assistance. The cost for residency m Bridge House is 388.00 per day. K the roaident is eligible for public assistance, Budge House chargos that mdividual 38.00 per day or 3240. The remainder of the fees are paid for by various funding sources. b. Describe how you will ansuro that all interested participants will bs included despite an inabilky to pay the entire fee. It has always been the policy of Budge House to accept all individuals needing help MRIti substarx:e abuse, regardless of their ability to pay for programs and services. No ane has ever been fumed away because of their inability to pay. We hope to continue this policy and as long as there are agendas and conoemed ind'nnduals willing to provide Bridge House wiUi needed funds we will be able to do so. H. Vlabfllty: 1. What is your justHication or rationab for the expenditure of public funds for the proposed program? Substance abuse and drug/alcohol addiction are community Mnde probbms effecting all sodal eoorromic segments of our community. With the continued restrictions of managed care providers and c~rrtinued lack of residential treatrnent fadlity an the Big Island, Therapeutic Living programs such as Bridge House aro the ony viable option for fellow community members who need a safe, supervised environment Ib start the recovery process. Since 1988, the OutreachlEducation Program has been working Meth disenfranchised substance abuses to help aHeviabe one of the major causes of homelessness, substance abuse and chemical addiction. Aa mentioned proviousy, everyone knows that homelssarissa is a problem Bndgs House is doing our part to combat homelessness by providing much needed information on the detrimental effects of substance abuse and providing irMormation on treatrnent options, including residency in Bridge House 2. What aro your flnanclal and programmatic plans to sustain the proposed program beyond the upcoming fiscal ysaR Financial: Badge House plans >b continue accessing all available funding sources availabb as well as continue to work dowry with the for-profk Badge House Nursery in the production and sat of venous plar~ Programmatic: Badge House plans in wntinue to provide therapeutic Irving and vocational skill building services to a mebmum of 15 resideMS per day, and outreach/educetional services >p all in the community, as long as ws flnanaaly able ib do so. 1. Budget: 'Please See Attached 1. Compbb the attached Budget tabbs; and 2. Provide appropriate attachmerHs, as indk:atsd ORGANIZATIONIAGENCY INFORMATION A. Board of Directors: 1. Has the organization's Board of Directors roceived formal training within the past tyro (2) fiscal years? [lf yes]: Attach csrtlflcationlveriflcaHon of board training [tf no]: a What plans do you have to provide formal training to your Curtest Boarcl of Diredors9 The Badge House Board plans to send representatives to the upcoming Board training sponsored by the Fist Hawaii Health and Human Services Counsel and HIl1V1l. Addi'tisonally, the Board is committing to having one scheduled Board meeting date as a treining season b When Nall the next board framing be completed9 March 2001 c How will you provide formal training to newly arriving board members or board members who have missed scheduled framing? All board members including new members Nell be required to attend sdiedubd training sessions. For those unabb b attend, the Exearlive Committee Nall schedule a training session andlor individual board member will orient those unabb to attend training wssans. 2. What arothe /I~ robs and rosponalbilitlss of your organ'rzadon's F~cscutiw DiroetoR The Executive Director's pnmary roll is the development, impbmerrtadon and monitoring of all programs, services and policies as directed by the Board of Dirsdbrs. Urxbr the direct supervision of the Prosident of the Board, the Executive director rs responsible for the dairy operations of the agency, as stated in the overall job description. This includes, but rs not limited !n: staff admirnatration, researohing and obtaining appropriate funding, and teprosan6ng the agency in the community 0 i D. Monitoring: 1. During tM past two (2) fiscal years, what financial and or administrathrs monitoring has your orpantsatlon nceiwd from any and all funding souross4 Phase list all monitoring sources, contact names and phone numturs. Dept of Health Alcohol and Drug Abuse DIHSIOn Julio ~m Ken VUllinger 1-80&982-7508 Akamme, Oyadaman 8 Kosaka Bert Akamine 1-808-941-0041 John Carbonaro, CPA John Carbonaro 1-808-572-2978 E. Alcohol. tobacco and Drug-Eros Workulacs Policies and Information: 1. How does your orpanizatlon address alcohol, tobacco, and other drug provenHon information dissemination as part of your wortcplace andlor program environment? The whole premise of Bndge House is m provide substance abuse treatment sernoes; therefore infonnatan on all substance abuse issues pervades all aspect of the Bndge House workplace, programs and sernce. 3. What are the / r roles and rosponsibilRiss of your organwtion's Board of Diroctoro? (Clarity roM of executive otTiwa vs. general membership.) The Board of Directors are primarily rosponsibb for the overall governance of the organization through the devebpment of appropnate poliaes and programs. This inductee short and bog term planning; devebpmsnt of the argan~tians structure: ensunng that appropriate services are being delivered; and fundreiaing. The general membership meets once a month and committees meet as needed Executive officers form the core of the Executive Committee and assume leadership of all standing committees. Standing commrttesa include the Finance Commrtbes, Personnel Committee, Program Committee and Fundaisirp Committee. Ali board members are encouraged to partldpate in at least one committee and members are invited to all committee meetings. B. Past Psrfortnance• 1. How eRsctive has your organizatloNagsncy been in achieving program goals in the past two (2) fiscal years? Include the foNowing inl'orrnatbn: a. puanHtativs dabs on numbers served; and From July 1999 to June 2000, Bridge House served 230 indivduals. Of those served, 189 were admitted into the Bridge House Therapeutic Livirp and Vocational Skill Building. One of the goals of the Outreach/Education Progam was to serve at bast 80 individuals per year or a total on 120 ndivtduals for the two fiscal years. The Outreach/Educator made contact with 138 ind'nnduals and referred 130 for resxiency dunng tha last two fiscal years. b. Qualitative data showing number and X of participants achieving msasuabb outcomes. Goals: Actual % Vanance 50% wall access substance abuse treatment. 94% +44% 85% admitted for resbency will complete program 25% ~0% 80% compbUng the program wall complete treatment 100% +40% 50% well remain abstrrrent 8 months post disd~arge 55% +5% 50% well be employed or in school 8 months post discharge 58% +8% 50% well demonstrated improved independent living 50% 0 75% wall have no new arrests 90% +15% 40% wall be involved inself-help groups 8 months post discharge 40% 0 C. Financial: 1. Have your organization's currant program opeations remained the same as last year? What major program or financial changes will bs incurred next yearT Bodge House has not expenenced any changes in program operabons since leaf fiscal year 2. What is the status of all of your organizations major contracts or agreements for ihs coming year (employment agreements, office leases, primary gaol rovenudsuppibr, ste.) Bridge House does not antidpate any significant changes in any of our contracts inducting all of the grents we are being awarded. 3. How does the proposed program fit Into your organization's long angs financial plan? The outrsachMducation progrem remains an integal component of the Bridge House kxig-range fnanaal plan. This progrem fills the need in the community, which is to provxle eariy intervention and education to disenfranchised community member in order to lessen the detnmerrtal effects of long tens drug and akx>'hol abuse. 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CW7 U v; L 0. ~ G 8 /i a > h ~ - O a Vi Stephen IC Yatna,huo Harry A Takahashi Manor 'i Director - ~ COUNTY Of i~ilYll~kl`I DEPARTMENT OF FIIVANCE 2s Aupuni Street, Room I ~ 8 • Hilo, fiaw~ati %720-4252 (808)%1-8234 • Fu(808)%1-8248 HAWAII COUNTY NONPROFIT GRANTS (F'Y 2001-02) FINANCIAL QUESTIONNAIRE Please include as an attachment an explanaion for all "NO" aaswers to quattons #1 thtu #1 l below Yes 1Vo ? 1. Has the agency operated continuously for the past three (3) years? ? 2 Has the agency operated with a postive cash flow for the past three (3) years? L^~ ? 3 Does your Board of Ihroctots approve a detailed cash flow budgtx before the beginning of each 5scal yea!? ICI ? 4. Do your Board meamg mmutea show that quarterly financial statemrnu are approved t~ ? 5. Is your equity balance at least 20% of your Total Iaabihty balance? u~ ? 6. Is your Total Current Assa balance larger thaa your Total Current Liability balance? t~ ? 7 Are bank reconcthanotu and at:counting performed by someone other than the chock stgnatory~ 11~J ? 8. Are you fiilly insured for the agency's vehicle(s) and bmldmg(s)? ? 9 Is your Workers' Cotnpertsaion at least 2% of payroll? ® ? 10 Are you current (non-delinquent) on all payroll and payroll tax payments? ? 11. Is the agrncy free of any pending Itttgaion, liens orludgments? ? ~ l2. Within the past 12 months, has the agency applied for vendor or bank credit and was denied credo? If yes, please explain. As the grtutt applicant, I comfy that the agency hos rattsjacronly responded to eaeh ojthe abaNe questions and explained as needed. I hereby centjy that t\\krs enjoin 1wn~on rs true and correct to the bat ojnry btowledge. Agency: ~~dae `•Pd~~5~ -a-s~-• Phoae~:yJ~.~-3a-~-3305 prepared by: ~G,.. w•,4 ~ !Y G e c Q_ ~ t `lit-~ / "y9s" t'nm Neadi~tle ~preaae Die ~ ' t 6 Cemfied by: ~~tru` ~ ~~'Dtr Pnet Neo of is w D4eetar ~ S Date i Carbonaro Certified Public Accountants CPA's & Management Group Member: FiSCFA INDEPENDENT AUDITORS' REPORT ON THE COMBWED FINANCL4L STATEMENTS To the Board of Directors of Bridge House, Inc. Kailas Kona, Hawaii 96745 We have audited the accompanying combined statements of financial position of Bndge House, Inc. (a nonprofit organization) and Bridge House Nursery, Inc. (a Hawaii corporation) as of June 30, 2000, and the related combined statements of activities, functional expenses, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opuvon on these financial statements based on otu audit. We conducted otu audit in accordance with generally accepted auditing standards. Those standards-~regtrve that we plan and perform the audit to obtain reasonabk assurance about whether the financial statements are free of material misstatement. An audit includes exA,nining, on a test basis, evidence supporting the amounts and disclosures in the 5nancial statements. An audit also includes assessing the accormting principles used and sigmficant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opimon, the combined financial statements refen~ed to above present fairly, in all material respects, the Snancral position of Bndge House, Inc. and Bridge House Nursery, Inc. as of June 30, 2000, and the changes ur their net assets and their cash flows for the year then ended in conformity with generally accepted accounting pnnciples. ~~~FT Makawao, Hawati FOR DISCUSSION October 5, 2000 PC'f2:'!JSrS ONLY 1043 Makawao Avenue, Suite 205 •Makawao. Hawaii 96758 Phone (8081 572-2978 Fax. (808) 572-8007 BRIDGE HOUSE, INC. Combined Statement of PYaaaeial Positloa June 30, 2000 ASSETS Bndge House, Bndge House Inc. Nursery, Inc. Total CURRENT ASSETS Petty Cash S 200 S 100 S 300 Checlang - BOH 4,764 277 5,041 Food Stsmps 18 18 Total Cash 4,982 377 5,359 Accounts Receivable 32,443 32,443 Allowance for Bad Debts (Note 4) (10,048) (10,048) Net Accounb Receivable 22,395 22,395 Prepaid Expemes 3,479 3,479 Total Current Assets 30,856 377 31,233 FIXED ASSETS (Note 2) Building 162,900 162,900 Furniture and Egmpmeat 12,589 712 13,301 Vehicle 36,221 36,221 Leasehold Improvements 2,889 2,889 51,699 163,612 215,311 AccumulatedDepreciatioa (17,602) (13,428) (31,030) Nct Fixed Assets 34,097 150,184 184,281 OTHER ASSETS Lease Acgmsiuon Cost (Note 5) 64,581 64,581 Aceumulated Amortiuhoa (7,710) (7,710) Total Other AsseU 56,871 56,871 TOTAL ASSETS S 64,953 S 207,432 S 272,385 ~ AFT FOR DISCUSSION PI;RI'OtiF.ti OILY The accotapanywg notes and Auditors' report are as mtegnl part of these financial etatementa Page 2 i BRIDGE HOUSE, INC. Combined Statement of Flnanelal Paitlon June 30, 2000 LIABILITIES AND NET ASSETS Budge House, Budge Horrse Inc. Nursery, Inc. Total CURRENT LIABIIITIES Accounts Payable S 4,185 S 4,185 Lear Payable -Current PoRron (Note ~ 5,476 5,476 Agreement of Sale -Current Pomon 16,500 16,500 Total Current Lrabrlrnea 9,661 16,500 26,161 LONG-TERM LL4BII.TITFS Lease Payable (Note 6) 14,932 14,932 Agreement of Sale (Note 5) 131,169 131,169 Total Long-Tenn Lrabrlrees 14,932 131,169 146,101 NEf ASSETS (Note 3) Unreatncted Net Assets 40,360 59,763 100,123 Temporarily Restncted Net Assets - - - Petrrranently Reatncted Net Assets - - - Total Net Assets 40,360 59,763 100,123 TOTAL LIABILITIES AND NET ASSETS ' S 64,953 S 207,432 S 272,385 ®R~FT FOR DISCUSSION ~~nnci: S ONLY The aecompanymg notes and Audroon' report aro an mtegal pa=t of these t-mancul atatemenh. Pale 3 ' BRIDOE HOUSE,INC Combhsed Statement of Actlvlty For the Year Ended June 30, 2000 Bndge House, Bndge House Inc. Nuniery, Inc. Total PUBLIC SUPPORT AND REVENUE Shte Depattmeot of Health S 174,097 S 174,097 U.S Dept. of Hommg dt Urban Devel 50,057 50,057 Pmgram Charges 40,637 40,637 Rent from Bndge House, Inc 30, I44 30,144 Hawau Island Umted Way 17,296 17,296 County of Haaw 13,370 13,370 Child Protechaa Semces 8,228 8,228 Faod Stamp Income 7,334 7,334 Contnbutions 6,985 6,985 Nursery Sales 2,137 2,137 Total Pubhc Support and Revenue 318,004 32,281 350,285 EXPENSES Prognma• Supportve Lrvmg and Tnursrtional Housmg 279,721 279,721 N~ery 15,348 15,348 Total Programs 279,72! 15,348 295,069 Supporting Sernces 43,190 17,253 60,443 Total Expenses 322,911 32,601 355,512 Excess Expend over Revenue S~(= s ~ ~~22~ FOlt DJgCpggro~ PURPI?~l;S ONLY The aceor~anymg Hord a~ Audrmn' ~ are as mtegnl part of thex 6naacul statements Page 4 BRIDGE HOUSE, INC. Statement of Fbnetlonal E:penaea -Combined For the Year Ended Jtme 30, 2000 Program Suppo[hng Sernces Services Total Sahrnesand Wages S 109,430 S 25,040 S 134,470 Rent pud to Bndge Hoax Nursery 27,130 3,014 30,144 Uncollechble Client Axouats (Note 4) 26,745 26,745 Provrarona 23,442 23,442 Interest Expense 16,748 16,748 Payroll Taxes 11,927 2,729 14,656 Health Insurance and BmeSts 10,108 2,312 12,420 DeprecraGOn 10,748 513 11,261 Profeas~onal Fees 6,848 3,983 10,831 Supplies 8,992 1,664 10,656 Insurance 8,931 992 9,923 Utilrnes 8,829 981 9,810 Food Stung l;xpense 8,349 8,349 Gas and Oil 7,102 7,102 Repaus and Mamteaance 6,812 6,812 Lease -Bishop Estate 4,930 4,930 Telephone 3,92I 435 4,356 Other Expenses 3,618 401 4,019 Amornzahon 3,470 385 3,855 General Excise Taxes 2,446 2,446 Small Equrpment Purchases 701 702 1,403 Nursery Costs 590 590 Postage and Delivery 544 544 Total Expenses S 295,069 S 60,443 S 355,512 D~4AFT FOR DISCUSSION PURPOS~SONLY Tlu accorr~anymg Doses and Audisora' report are au mtegnl put of these fmarKUl staoemeab Page 5 BRIDGE HOUSE, INC. Combined Statement of Chanses in Net Assets For the Year Faded June 30, 2000 Net Assets, June 30, 1999 S 98,199 Valuation Adlustementa to the Nursery 7,201 Exars Expenses Over Revenues ($,2~ Net Assets, June 30, 2000 S 100,123 FOR DISCUSSION PURPOSFSOVLY 'i'he sccompanyutg tea sad Auduon' report rue m moegral put of tLae Gnancm! struemmts. Pale 6 BRIDGE HOUSE, INC. Comblaed Statement of Cash Fbws For the Yeu Ended June 30, 2000 Brtdge Bndge Hottae House, Inc Nurury, Inc Total CASH FLOWS FROM OP`RATIIYG ACTIVITIES Cash Received from Govemmmt Agmctes f 263,775 S 263,775 Cash Reenved from Nongovernntmtal Contrxta, Granton, Donors and Other Reeetpa 24,282 24,282 Program and Nursery Reenpn 33,085 32,281 65,366 Interest Received 175 175 Cssh Patd to Employees and Vendors (310,453) (18,299) (328,752) Net Cash Provided by Openttng Activities (Note 7) 10,864 13,982 24,846 CASH FLOWS USED BY INVESTING ACTIVITIES Purchue of Fixed Auets (3,901) (3,901) CASH FLOWS PROVIDED BY FINANCING ACTIVITIES Capttsl Leue Payments (3,570) (3,570) Agreement of Sale Payments (13,705) (13,703) Net Cash Used by Ftnancltg Achvtttea (3,570) (13,705) (17,275) Net Incrcaae to Cash for the Yeu 3,393 277 3,670 CASH BALANCE, BEGINNING OF YEAR 1,589 100 1,689 CASH BALANCE, END OF YEAR S 4,982 E 377 S 5,359 • i FOR DISCUSSiO1~I PUit"^C£$ QVLY The aacompanytng notes aad Andtton' report are an integral pan of tLese financial sta0ementa Page 7 ' Bridge House, inc. Notes to the Financial Statements June 30, 2000 Note 1. ORGANIZATION Bridge House, Inc. was incorporated in November 1990 as a non-profit corporation under the laws of the State of Hawaii. The Agency's mission is to develop, maintain and operate a residential institution for recovering alcoholics and other substance abusers, and to provide them with treatment to help reintegrate them into society ae productive citizens. Bridge House Nursery, Inc. is a 100'/o wholly owved for-profit subsidiary of Bridge House, Inc. The residents of Bridge House, Inc. work at the nursery, and the agricultural products (primarily tomatoes and basil sre sold to the public. The nursery was incorporated in 1996. Budge House, Inc. is exempt from Federal income taxes pursuant to Internal Revenue Code section 501(cx3), and exempt from State income taxes under Section 416-19 and 416-20 of the Hawaii Revised Statutes. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation of Related Entities The accompanying combined financial statements include the accounts of Bridge House Nursery, Inc. This company is related through common ownership, and both orgaai7aaons are collxtively referred to as the "Organization." Revenue and Expense Recotniition: Bridge House, Inc. uses the accrual method of accounting. Under this method of accounting, revenue is recognized when earned rather •tlum when received and expenses are recognized when incurred rather than when paid. For contributions and donations, revenue is recognized when the gift is received. For government grants and contracts, revenue is reoognized as the applicable requirements are fulfilled. Accounts Receivable represents revenue earned and not yet received. Property and Equipment: Property and equipment are stated at cost. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets. Donated Property and equipment are recorded as revenue at their estimated fav value. Such donations are reported as unrestricted revenue unless the donor has restricted the donated asset to a specific purpose. D i~?FT FOR DISCUSSION PURPos&S ANLX Page 8 Bridge House, Inc. Notes to the Financial Statements June 30, 2000 Note 3. NET ASSETS Bridge House, Inc. has wnfonned to Statement of Financial Accounting Standards (SFAS) No. 117, "Financial Statements of Not-for-Frost Organizations". Accordingly, the Agency is requued to report information regarding its finmcial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanmtiy restricted net assets. Grants and other contributions of cash and other assets are reported as temporarily restricted support if they are received with donor stipulations that limit Ute use of the donated assets. When a donor restriction expires, that ia, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The Agency reports restricted contributions whose restrictions are met within the year as unrestricted support; consequently, the net assets were all unrestricted as of June 30, 2000. Note 4. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting princrples requires management to make estimates end assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Write-off of Uncollectible Accounts -During the year ended June 30, 2000, management wrote off boarding fees that were considered uncollectible. The realizatron of the boarding fees is generally contingent upon tite resident's ability to qualify for, and receive, public assistance from the State of Hawaii. As of June 30, 2000, an allowance for Bad Debts of S 10,046 has been recorded. FOR DISCUSSION Note 5. AGREEMENT OF SALE PURYt~Si:S ONLY In August 1997, the Orgamzation acquired a leasehold interest in the land on which its nursery is situated, and a fee interest in the related buildings and improvements for 5227,148. The acquisition was financed with a 5183,000 agreement of sale, maturing in August 2000, payable to the seller in monthly installments of 52,500, with interest at a rate of 10.5%. In August 2000, the Organization and the seller amended the agreement of sale as follows: - Extended the lease closing date to August 15, 2001. - Providad for an adjustable interest rate determined each May 1, until the lease purchase is paid in full. - Interest rate changed to 11.14% - Payment of 520,000 toward principal balance by August, 2000, which was paid Pane 9 Bridge House, Inc. Notes to the Financial Statements June 30, 2000 Note 5. AGREEMENT OF SALE (Continued) Annual maturitres of the agreement of sale are as follows: Year Endintt June 30 Amount 2001 S 16,500 2002 5131,169 S 147.669 The leasehold interest in the land was valued at 564,581. The leasehold acquisition cost is being amortized on a straight-line basis over the lease term. The ground lease agreement expires in April 2014 and provides for annual lease payments at predetermined amounts, with increases in five-year increments. At June 30, 2000, lease payments fdr the remaining lease term are as follows: Year Ending June 30- Amount 2001 S 4,156 2002 4,156 2003 4,156 2004 4,156 Thereafter 41,560 S 58.184 Note 6. CAPITAL LEASE PAYABLE In November 1998, the Organi7ahon acquired a van under the provisions of a long-term lease. The minimum lease payments relating to the vehicle have been capitalized. The lease expires in November 2003. The lease requires monthly payments of 5493.35, which include principal and interest. DRAFT FOR DISCUSSION PUR['~`.~ ~ S ONLY Page 10 Bridge House, Inc. Notes to the FYnancial Statemeab June 30, 2000 Note 7. RECONCILIATION OF EXCESS EXPENSES OVER REVENUE AND SUPPORT WITH NET CASH USED BY OPERATING ACTMTIES Excess Expenses Over Revenues S( 5,227) AdJustments to reconcile change m unrestricted net assets to net cash used by operating activities• Deprociation 11,261 Amortization 3,855 Loss on Disposal of Fixed Assets 2,265 Other 3,835 Allowance for Bad Debts 10,048 Increase in Accounts Receivable 10,472 Increase in Prepaid Expenses ( 1,265) Decrease in Accounts Payable 10 398 Net Cash Provided by Operating Activities S 24.846 Note 8. DONATED SERVICES The Nursery receives a significant amount of donated sernces from its rea~dents who are provided with vocational gaining and other associated with the Organization. No amounts have been recognized in the statement of activities because the criteria for recognition under SFAS No. 116 have not been satisfied. Nevertheless, many volunteers have donated significant amounts of their time to Bndge House's activities. Note 9. GOING CONCERN Due to tightening revenue sources, rising costs, added loan payments and the large balloon lease payment due next summer, the Organization has experienced significant cash flow shortages. If the Organization is not able to obtain additional revenue, cut costs or obtain additional financing, its ability to continue as a going concern is uncertain. ~~AFT ;cUSSroN ni n,VLY Psge 1 t Bridge House, Inc. Notes to the Financial Statements June 30, 1999 Note 10. CONCENTRATIONS During the year ended June 30, 2000, the Organization received approximately 57% of its revenue directly from State of Hawaii contracts. Significant reductions, if any, could Lave an adverse effect on the Organization's ability to continue operations. The ultimate determination of amounts received under these programs generally is based upon allowable costs reported to and audited by the government. Until such audits have been completed and a final settlement Las been reached, there exists a contingency to refund any amount received in excess of allowable costs. Management believes that the probability of this occurring is remote. The Organization also received approximately 15% of its revenue from the U.S. Department of Housing and Urban Development (HUD). Note 11. FiJNCTIONAL ALLOCATION OF EXPENSES The costs of providing the various programs and activrties Lave been summarized on a functional basis in the statement of activities. Accordingly, ccrtarn costs have been allocated among the programs and supporting sernces benefited. Note 12. SUBSEQUENT BANK LOAN On August 4, 2000, the Organization entered into a loan agreement with Bank of Hawaii for 520,250. The loan calls for monthly principal and interest payments of 5675 beguuring September 2000 and ending July 2003. Interrat on the loan is 2% above the Bamk's base rate. This loan was collateralized with the personal guarantce of two indivtduals on the Organization's Board of Directors. Note 13. CONTINGENT LIABILITY The Organization is defendant to a claim filed by a former neighbor and has retained legal council to vigorously defend the claim as management believes the case is without merit. Management and the Organization's attorney are not able to evaluate the potential loss, if any, as of the date of the audit because discovery has not yet begun on thra case. The attorney has stated that, in their opinion, the likelihood of a plaintiff's verdict on the case is less than SOY°. If a judgment is rendered against the Organization and if the Organization is not insured by such a loss, than the Organization's ability to continue as a going concern will be jeopardized. DAFT FOR D15CUSSION PURPOSES nNLY Page 12 Bridge House, Inc. and Subsidiary Consolidated Financial Statements June 30,1998 o~~ao~ ~ C.xnfxa Public Accoumm~a. Inc. Contests Page Indepcadent Auditors' Report 3 Financial Statements - Consolidated statement of financial position as of June ~ 0, 1998 ~ Consolidated statement of acnvtties for the year ended Tune 30, 1998 Consolidated statement of functional e:tpeases for the year coded June 30, 1998 6 Consolidated statement of cash flows for the year ended Luse 30, 1998 7 dotes to consolidated financial statetnmts 8 Akamine, Oyadomari ~ Kosaki CERTIFIED PUBLIC ACCOUNTANTS, INC IndeDendrnt Auditors' Reoort To the Board of Duectors Bodge House. lac. We nave audited the accompanying consolidated statement of financial posinon of Bndge House. Inc. and Subsidiary as of June 30, 1998, and the related consolidated statements of activities, funcnonal expenses and cash flows for the year then ended. These consolidated financial statements are the responsibility of the management of Bndge House, Inc. Our trsponsibility is to express as opinon on these consolidated financial statetaeats based on our audit ~Ve conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable a~~~*~rce about whether the consolidated financial statements are free of material misstatement An audit includes ~ oa a test bests, evidence suppornng the amounts and disclosures in the consolidated financial statements. An audu also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement preseatanon. We believe that our audit provides a reasonable basis for our opinion. In our opinion. the consolidazed financial statements referred to above present fairly, in all material respec*s, the consolidated Stiancial position of Bndge House, Inc. and Subsidiary as of June ~0, 1998, and the changes in its net assets and its cash flows for the near then ended in conformity nth generally accepted accounnng principles. Honolulu. Hawazi May ?8, 1999 I440 Kanroun~ 81vA , 5une 900. Honolulu, rlawdu 96814 Telaprrone ,EOEI 941-0500 ~~X 941-0004 / I..OILSVlia3Leli J4ICCIIICIli Ui rliidlil.43a r waaa.... as of June 30, 1998 sets Cash S 32,591 Groats recdvable 26,.130 Boarding flees receivable (Note B) 9,958 Accounts mervable 1,514 Prepaid erpmses and other 3,810 Filed assets, net (Note C, D and E) I65,349 Leaseaold acauisinon cost, net of accumulated amortization of S3r94 (;`Tote ~ 60,954 Tonal assets S 300,506 ~v Liabrlines and Yet Assets accounts payable S 7,388 Jther liabilities 6,987 Obliganon under capital lease (Note E) 964 Obligation under agreement of sale (Note D) 17;,651 Total liabilities 189,490 Contingencies and commitments (Note 1~ Yet Assets: Untestncted 48,365 Tempotanly restncted 62,651 - - ,Total net assets 111,016 Total (abilities and net assets S ;00,506 'ihe ucompaaymg notes are an integral parr o[ [he consolidated finaac~al sottments. Bridge douse, lllc. 3IIq .~gDStulai; Consolidated Statement of Activities for the year ended June 30, 1998 Chances in unrestricted net assets: Revenues - Contributions 5 15,440 Boarding fees (Note B) 70,643 Special events, nec of 52,385 in direct costs 4,262 Interest, nursery sales, and other, net of 5495 is direct nursery costs 10.529 Total unrestricted revenues 100,374 Vet assets released from restncuons - Satisiaction of program restrictions 274,102 Total net assets released from restrictions 274,102 Total unrestricted revenues and other suppon 374,976 E.eneases - Program 242,506 Management and general 105,304 Total expenses 347,310 Increase in unrestricted net assets 27,166 Changes in temporarily restricted net assets• Grant revenue 253,539 Contributions 500 Vet assets released from resrricnons (274,102) ' , Decrease in temporarily restricted net assets (20.063) Increase is net assets 7,103 Net assets at beginning of year 103,913 Net assets at end of year S 111.016 s The xeompanymg notes acs as une~l part of the consolidated fmanecal m~~ts. Badge tlouse,.inc. auu ouoa,u,.a,, , Consolidated Statement of Functional Expenses for the year ended June 30, 1998 Management and Program General Total Salaries S 132,012 S 44,265 S 176277 Payroll taxes 15,785 5,293 21,078 Employee benefits 7,923 2,657 10.580 Total salanes and related expenses 155,720 15 207,935 Bad debt (DTote B) - 13,050 18,050 Interest - 15,998 15,998 Rent 14,959 787 15,746 Food 13,396 - 13,396 '-ofessionalservices 9,533 3,190 12,723 ..uunes 11,983 631 I2,614 Supplies and materials 11,932 - 11,932 Insurance 2,642 5,676 8,313 Repairs and maintenance 6,401 116 6,517 Loss on disposal of fixed assets 2,109 2,109 4,2I 8 Travel 967 42 1,009 Other 1,533 2,713 4,246 Total expenses before depreciation 231,175 10I,527 332,702 Deorecianon and amornzauon 11.331 3,777 15,108 Total expenses S 242.:06 S 105.304 S 347,810 'ihe accampaoyulg now ars an mte}al pen of the coosalidated fmancia! saremeou. -6- ISnage House, Inc. au4 JIFU.l~41.a1 ~ Consolidated Statement of Cash Flows far the year ended June 30, 1998 Cash flows from operating activities: Increase in net assets S 7,103 Adjustments to reconcile increase is net assets to net cash provided by operating activities - Depreciaaon and amortization 15.108 Loss on disposal of fixed assets 4,218 Incrarse in grants receivable (3,316) Increase m boarding fees receivable (6,143) Increase in accounts rocervable (1,51.1) Decrease in prepaid expenses and other 24 Decrease in accounts payable (465) Increase is other liabilities 5,?52 12,864 Net cash provrded by operating activities 19,967 Cash flows from investing activrnes: Purchases of fixed assets (6,214) Refund of deposit on real property acquistnoa 852 Net cash used in investing activities (5,362) Cash IIows from financing activities: Principal payments on obliganoa under agreement of sale (9.349) Principal payments on obliganoa under caprtal lease (662) Net cash used in financing activtnes (10,011) Net increase in cash 4,594 Cazh at begtnaing of year 27,997 ~Cazh at end of year S 32,591 Supplemental Disclosure of Cash Flow Information: Interest pazd during the year S 15,998 Supplementary Disclosure of Noncash Investing and Fiaanctng Activities: Real property acquired under agreement of sale S 227,143 Oblrgatioa under agreement of sale ~ 133,000 The accompanying notes are an integral part of tree consolidated financial state:nena. -7- Bodge House, Inc. and Subsidiary Notes to consolidated financial statements NOTE A - SUbIMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization - Budge House. Inc. is a two-profit organi~tton incorporated is 1992, pursuant to the laws of the State of Hawaii, primarily to provide safe interim housing and a stnrcttat=d supportive setting in West Hawari for recovering adult mm and women with substance abuse problems. Duttag the year ended June 30, 1998, ~8;'°, :0% and 10% of the Organiration's revenues were received from pass- througn federal giants, boarding fees, and fouadanoa grants, respecnveiy. The Organization's grants receivable at June 30. 1998, wale primarily from the State of Hawaa and are e.~tpected to be collected during the following year. Principles of Consolidation - The consolidated financial statemenu include the accounts of the Budge House. Inc. and its wholly-owned subsidiary Bndae House Nutsery, Inc. Bridge House Nursery. Inc. is a for-profit corporation incorpoiated in 1995 to produce and sell plane and to pronde vocational ttanung to the Organization's residents. During the year ceded June 30, 1998, operations of Bridge House Nursery, Inc. were not significant All significant intercomgany balances and TM~±~~*ons have been eliminated in consolidation. Unrestricted Net Assets - The Organization reports contnbunons as changes in unrestricted net assets unless donor restrictions specify how the donated assets must be used. Temootarily Restricted Net Assets - The Organization reports support from grants as changes in temporarily resmcted net assets if they are received with stipulations that limit the use of the assets. When the support is upended within the :arms of the restrictions provided for in the grant agreements, tempoiarily resmcted tie: assets arc reclassified to unresmcted net assets and reported in the statement of acnvines as net assets released from restncnons. At June 30, 1998, temporarily restricted net assets corLSisted of the followin¢ support which are limited to use in the Orgaaizanoa's substance abuse treatment program: Goveinmeat grams S 32,519 Foundation grants and other 30.132 S 62.651 -8- Bridge House, Inc. and Subsidiary Notes to consolidated financtal statements NOTE A -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Permanently Restricted Net Assets - The Organuanon reports contributions as petmaaentty restricted support tf they ate received wrth the stipulation that the pnacipal be maintained intact in petpetw.ry wrth only the income to be utilized At June 30, 1998, there were no prrman~~tly restricted net assets. Brits of Accounting - The financtal statements of $ndge House. Inc. and Substdiary are prepared on the accrual bests of accounting. Cash - The Orsamzanon tnaintatns its cash balances at a Hawati based ftnanc:al tnstitunon. Insurance for is accounts az thrs fitianctal msutntion are prnvtded by the Federal Depostt Insurance Corporation up to 5100,000. For the purposes of the statement of cash flows. the Orgatttzanon constders all certificates of deposers wtth an original maturity of three months or less to be cash egtnvalents. Fixed Asseu - Fixed assets aze capttalized at cost, rf purchased. or at the feu mazket value on the date of donation, :f contnbuted. Depreciation rs provided over the estimated useful lives of the assets on a str~ght- !ine bests. Egrupment under capual leases are amortized over the lease te.Ztt on a straight-line hosts Such amortrzatron expense is included wrth deprecrauon expense. Donated vlazenals and Sernces - Th8 Orgatuzation has not reflected :n the consolidated ttrtanc:al statements. the incidental matenats and servrces received in connection wrth the Orgamzatron's program and management and general acnvrues since these donations do not meet the revenue reco~ition cntena under generally accepted accounting ptincrples. Use of Estimates - The consolidared finaacral statements are prepared in confomuty with generally accepted accounting pnnctples, and. accordingly, include amounts that are based on management's esttsates and ludgmrnrs. -9- Bridge House, Inc. and Subsidiary ' Nodes to consolidated financial statements NOTE B - BOARDING FEES RECEIVABLE The primary source of income for the Orgaatzation's resided is public assistance tecetved from the State of Hawaii. Accordingly, realizauoa of the Organicnon's boarding fees receivable is generally contingent upon the testdent's abtliry to qualify for, and tearve, public ,ari~:,rce from the State of Hawati. NOTE C - FLYED ASSETS At June 30, 1998, fixed assets conststed of the following: Building 5 162.900 Equipment (sce Note E) 17,745 Vehicles 3.533 139,173 Less accumulated depredation and amornzarion (23.3291 5 165.349 NOTE D - AGREE1vfEVT OF SALE Ia Augtut 1997, the Organization acquired the leasehold interest m land located in Kona, Hawaii and the fee interest in the related buildings and improvements for 5227,148. This properly is unlined as the sere of the Orgaturation's facilities. The acquisinoa was finaaccd with a 5133,000 agreement of ;ale maturing m August 2000, payable to the seller is monthly payments of 52,500 wtth interest at a rate of 10.5%. Annual maturities of the agreement of sale are as follows: Year ending June 30 - 1999 5 12,350 2000 13,711 2001 147.590 5 173.651 NOTE E -CAPITAL LEASE The Organization leases office equipment under a noncattcelable lease agreement expiring in 1999 The Organt~taoa has classtfied and recorded the lease agreement as a capiral lease in accordance with Financial Accounting Standards Board Statement No. l3. This sta[etnent, in effect. provides :hat leases which transfer substantially ail of the benefits and risks of owaershtp should be accounted for by the lessee as an acquisinon of an asset and the related lease obligation as a liabtliry. -10- Budge House, Inc. and Subsidiary Notes to consolidated financtal statements NOTE E -CAPITAL LEASE (continued) Future ttunrmum lease payments for assets under this capital lease az Juae 30, 1998, are as follows: Total mrtrrmtrm lease payments for the year ending June 30, 1999 5 1.038 Less amount representrtrg interest at 12.58% r 7 41 Present value of net mrrumum lease payments 5 061 Egtupment under capital leases at June 30. 1998 aggregated 51,673 (net of accumulated amoza~rnon of 5717) and is included into filed assets. Interest and amom~rnon expenses attnbutable to this capital lease aggregated 5167 and 5312, respectively, doting the year ended June 30, 1998. NOTE F - T.~Y STATUS Bndge House, Inc. rs recognized by the Internal Revenue Service as an organization exempt from Federal urcome tax under Section 5D 1(c)(3) of the Intemal Revenue Code. NOTE G -FUNCTIONAL EXPENSE ALLOCATION The cost of providing the Organrzanon's progruns and other activities have been n,n„nan~ed on a dmcnonal basis in the statement of acnvtues Substantially all of the Orearu7anon's costs nave been allocated between program and management and general expenses NOTE H -LAND LEASE In connection wrath the acquisition of the fee interest in butldmgs gad unprovements. the Orgamzanon paid 564,243 to acquire the leasehold interest in a land lease (see Note D). T'ne leasehold acamsruon cost rs being amoruzed on a straight-line basis over the lease term. The lease agreement expires rn Apn12014 and provides for annual lease payments at predetermined amounts, with increases in 5 year increments. At lone 30, 1993, lease payments for the remauung lease term are as follows: Year ending June 30 - Amount 1999 5 1,995 2000 1,995 2001 1,995 200= 1,995 2003 1,995 Thereafter ~ 1.170 5 ~ 1.1~r; -11- eC/ . V li(.~ ~l/7ITA.I (/j V ~CJ`i i ~~s~~e.~~~~~o~/ros~tzt~ ..fra.Eamaa, e~mvus 96768 ~ .~~av+e 80B 5JR P978 .~ax 80~ 57~ 800J I ~ INDEPENDENT AUDITOR' REPORT ON THE COMBINED FINANCiAi. CTATFMENTC I I i To the Board of Directors of Bndge House, Inc. Kailua Kona, Hawazi 96745 ~ We have audited the accompanying combined statements of financial positron of Bndge House, Inc. (a nonprofit organization) and Bndge House Nursery, Inc. (a Hawaii corporation) as of June 30, 1999, and the related combined statements of activities, fiinctional expenses, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Orgamzation's management. Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit 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 the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of Bndge House, Inc and Bridge House Nursery, Inc. as of June 30, 1999, and the changes in their net assets and their cash flows for the year then ended in conformity with generally accepted accounting principles. Makawao, Hawaii October 27, 1999 BRIDGE HOUSE, INC. I Combined Statement of Finandail Position June 30, 1999 ASSETS Bridge House, Bridge House Inc. Nursery, Inc. Total CURRENT ASSETS Petty Cash S 200 S 100 S 300 Food Stamps 1,389 1,389 Total Cash 1,589 100 1,689 Accounts Receivable 42,915 42,915 Prepaid Insurance 2,214 2,214 Total Current Assets 46,718 100 46,818 FD{£D ASSETS (Note 2) Building (Note 5) 162,900 162,900 Furntrure and Equipment 17,033 712 17,745 Leased Vehicle (Note 6) 27,782 27,782 Vehicle 8,439 8,439 Leasehold Improvements 2,096 2,096 55,350 163,612 218,962 Accumulated Depreciation (17,767) (10,605) (28,372) Net Fixed Assess 37,583 153,007 190,590 OTHER ASSETS Lease Acquuiuon Cost (Note 5) 64,581 64,581 Accumulated Amorazation (3,855) (3,855) Total Other Assets 60,726 60,726 TOTAL ASSETS S 84,301 S 213,833 S 298,134 ~e The accompanying notes and Auditors' report are an integral part of these financial xatsrt»nts. Pegs 2 BRIDGE HOUSE, INC. Combined Statement of Finandai Position June 30, 1999 ItdABI[I.I7lTSS AND NET ASSETS Bndge House, Bridge House Inc. Nursery, Inc. Total CURRENT I.IABIIdTIES Bank Overdraft $ 9,877 $ (957) $ 8,920 Accounu Payable 4,981 682 5,663 Lease Payable - Curnent Poraon (Note 6) 5,301 5,301 Agreement of Sale -Current Pomon 13,711 13,711 Total Current Liabiliaes 20,159 13,436 33,595 LONG-TERM IJABILIITES Lease Payablt (Note 6) 18,677 18,677 Agreement of Sale (Note 5) 147,663 147,663 Total Long-Tenn Liabilities 18,677 147,663 166,340 NEI' ASSET'S (Note 3) Unrestricted Net Assets 45,465 52,734 98,199 Temporarily Restricted Net Asseu 0 0 0 Permanently Restricted Net Asseu 0 0 0 Total Net Asseu 45,465 52,734 98,199 TOTAL LIABII.IT'fES AND NET ASSETS $ 84,301 $ 213,833 $ 298,134 The accompenymg notes and Audetors' report are an mtsgral part of these fmancial etetsrtNnti. Page 3 i BRIDGE HOUSE, INC. Combined Statement of Acdvity For the Year Ended June 30, 1999 Bndge House, Bndge House Inc. Nursery, Inc. Total PUBLIC SUPPORT AND REVENUE State Depammmt of Health S 165,240 S 165,240 U.S. Dept of Housmg & Urban Devel 48,600 48,600 Program Charges 38,047 38,047 Hawah Island United Way 15,000 15,000 Counry of Hswan 14,000 14,000 Ttde 4B [or Womm 10,404 10,404 Nursery Sales S 9,690 9,690 Food Stamp Inmme 5,567 5,567 Conmbunons 2,250 2,250 Hawau Cotnmumry Foundation 372 372 Interest Income 175 175 Other Income 16 16 Total Public Suppon and Revenue 299,671 9,690 309,361 EXPENSES Programs Supportive Ltvmg and Transmonal Housmg 254,484 254,484 Nursery 10,270 10,270 Total Programs 254,484 10,270 264,754 Supporting Sernces 45,283 24,193 69,476 Tonal Expmses 299,767 34,463 334,230 Excess Expenses over Revenue S (96) S (24,773) S (24,869) The sccompenymg notes antl Auditors' report are an integral part of these fmsneul etetemente. Pape 4 . i BRIDGE HOUSE, INC Statement of Functional Hxpensee -Bridge House, Inc. For the Year Ended June 30, 1999 Program Suppomng Services Semces Total Salanes and Wages S 144,517 S 29,097 S 173,614 Payroll Taxes 16,906 3,404 20,310 Supplies 10,085 1,991 12,076 Health Insurance and Benefits 9,874 1,988 11,862 Ptowtons 10,645 10,645 Unhnes 7,046 1,173 8,219 Uncollernble Client Accounts 25,482 25,482 Professional Fees 6,321 1,581 7,902 Insurance 4,709 2,146 6,855 Depreaaaon 4,929 870 5,799 Food Stamp Expense 5,641 5,641 Repaus and Mamtetiance 2,758 487 3,245 Telephone 2,664 470 3,134 Connnumg Educanon and Travel 1,911 1,911 Other Expenses 157 1,062 1,219 Interest Expense 923 923 Postage and Delivery 514 91 605 Small Equipment Purchazes 325 325 ToralExpenses S 254,484 S 45,283 S 299,767 The aoeomp~nymg none and Autlitor'a report are an integral part of thew fmaneiel rtatanent~. Psgs 5 X BRIDGE HOUSE, INC. Sgtement of Ftmedanal Hxpennee - Eddse Hotue Nursery, Inc. For the Year Ended June 30, 1999 Program Suppornng Sernces Services Total Supplies S 517 S 6 S 523 Insurance 310 310 Depredation 5,572 5,572 Lease -Bishop Estate 3,871 3,871 Amorti>aanon 3,855 3,855 General Exase Taxes 1,284 1,284 Other Expenses 894 894 Interest Expense 18,154 18,154 Total Expenses S 10,270 S 24,193 S 34,463 Ths aeeompanymg notes antl Audrtora' report are an intagrel part of these fmancid statements. Pepe 8 ' BRIDGE HOUSE, [NC. Statemeat of Ftmctlonal Sxpenaea - Combiaed For the Year Ended June 30, 1999 Program Suppornttg Sernces Services Total Salaries and Wages S 144,517 S 29,097 S 173,614 Payroll Taxes 16,906 3,404 20,310 Supplies 10,602 1,997 12,599 Health Insurance and Benefits 9,874 1,988 11,862 Provsstons 10,645 10,645 Unhaes 7,046 1,173 8,219 Unmllernble Client Accounts (Note 4) 25,482 25,482 Professional Fees 6,321 1,581 7,902 Insurance 5,019 2,146 7,165 Depreaanon 10,501 870 11,371 Food StamyExpense 5,641 5,641 Lease - Bsshop Esrate 3,871 3,871 Amonvanon 3,855 3,855 Repaus and Maintenance 2,758 487 3,245 Telephone 2,664 470 3,134 Continuing Education and Travel 1,911 1,911 General Exase Taxes 1,284 1,284 Other Expenses 157 1,956 2,113 Interest Expense 19,077 19,077 Postage and Delivery 514 91 605 Small Egwpment Purchases 325 325 Total Expenses S 264,754 S 69,476 S 334,230 Tha aeeompanymg notaa and Auditor' report era an mtsprel part of thaw f~nanaN atatamants. Page 7 BRIDGE HOUSE, INC. Combined Statement of Changes in Net Assets For the Year Euded June 30, 1999 Net Assets, June 30, 1998 S 111,016 Valuation Ad)ustemmts to the Nursery 12,052 Excess Expenses Over Revenues (24,869) Net Assets, June 30, 1999 S 98,199 The ateompanymp notes and Audnora' report are an mtspral part of these finaneial atetamenta. Pape 8 BRIDGE HOUSE, INC. Combined Statement of Cash Plows For the Year Ended June 30, 1999 Bridge Bndge House House, Inc. Nursery, inc. Total CASH FLOWS FROM OPHRATING ACTIVTIiBS Cash Recerved from Government Agenaa S 215,542 S 215,542 Cazh Recetved from Nongovernmental Contracts, Granrors, Donors and Other Recerpts 26,698 26,698 Program and Nursery Recerpts 21,094 39,834 60,928 Interest Recerved 175 175 Cash Paid ro Employees and Vendors (298,277) (25,508) (323,785) Net Cash Provrded (Used) by Operaturg Arnnaes (Note 7) (34,768) 14,326 (20,442) CASH FLOWS USHD HY IIWESTING ACTIVII7HS Purchaze of fluted Assets (2,096) (239) (2,335) CASH FLOWS PROVIDBD BY FINANCING ACTIVITIHS Capital Lease Payments (4,768) (4,768) Agreement of Sale Payments (12,277) (12,277) Net Inaeaze (Decease) m Cazh for the Yeaz (41,632) 1,810 (39,822) CASH BALANCE, BHGINNWG OF YEAR 33,344 (753) 32,591 CASH HALANCH, END OF YHAR S (8,288) S 1,057 S (7,231) i Tha accompsnymp notes and Auditors' report are an integral part of these fmancisl statements Pape 9 Bridge House, Inc. Nooea to the Financial Statemenos June 30, 1999 Note 1. ORGANIZATION Bridge House, Inc. was incorporated in November 1990 as a non-profit corporation under the laws of the State of Hawaii. The Agency~s mission is to develop, maintain and operate a residential institution for recovering alcoholics and other substance abusers, and to provide them with treatment to help reintegrate them into society as productive citizens. 1 Bridge House Nursery, Inc. is a 10046 wholly owned for-profit subsidiary of Bridge House, Inc. The residents of Bridge House, Inc, work at the nursery, and the agricultural products (primarily tomatoes and basil are sold to the public. The nursery was incorporated in 1996. Bridge Housc, Inc. is exempt from Federal income taxes pursuant to Internal Revenue Code section SOl(c)(3), and exempt from State income taxes under Section 416-19 and 41Cr20 of the Hawaii Revised Statutes. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation of Related Entities The accompanying combined financial statements include the accounts of Bridge House Nursery, Inc. This company is related through common ownership, and both organizations are collectively referred to as the "Organization." All significant intercompany balances and transactions have been elirrunated in combination. Revenue and Exoense Recosmtdon: Bridge House, Inc. uses the accrual method of accounting. Under this method of accounting, revenue rs recognized when earned rather than when received and expenses are recognized 1, when incurred rather than when paid. For contributions and donations, revenue is recognized when the gift is received. For govenunent grants and contracts, revenue is recognized as the applicable requirements are fulfilled. Accounts Receivable represents revenue earned and not yet received. Property and Eauinment: Property and equipment are stated at cost. Deprecranon is computed on the straight-line basis over the estimated useful lives of the assets. Donated property and equipment are recorded as revenue at their estimated fair value. Such donations are reported as unrestricted revenue unless the donor has restricted the donated asset to a specific purpose. Page ] 0 Bridge House, Inc. Notes to the Financial Stetemessta June 30, 1999 Note 3. NET ASSETS Bridge House, lnc. has conformed to Statement of Financial Accounting Standards (SFAS) No. 117, "Finanaal Statements of Not-for-Profit Organizations". Accordingly, the Agency is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Grants and other contributions of cash and other assets are reported as temporarily restncted support if they aze received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restncuon is accomphshed, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restncnons. The Agency reports restricted conmbutions whose restrictions are met within the year as unrestricted support; consequently, the net assets were all unrestricted as of June 30, 1999. Note 4. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Write-off of Uncollectible Accounts - During the year ended June 30, 1999, management wrote off boarding fees that were considered uncollectible. The realization of the boarding fees is generally contingent upon the resident's ability to qualify for, and receive, public assistance from the State of Hawaii. Note 5. AGREEMFNf OF SALE In August 1997, the Organization acquired a leasehold interest in the land on which its nursery is situated, and a fee interest in the related buildings and improvements for 5227,148. The acquisiuon was financed with a 5183,000 agreement of sale, maturing in August 2000, payable to the seller in montlily installments of 52,500, with interest at a rate of 10.5%. Annual maturities of the agreement of sale are as follows: Year Endinst June 30 AmounT 2000 5 13,711 2001 147.663 5161.301 Page 11 Bridge House, Inc. Notes to the Financial Statements June 30, 1999 Note 5. AGREENIF.NT OF SALE (Continued) The leasehold interest m the land was valued at $64,581. The leasehold acquisition cost is being amortized on a straight-line basis over the lease term. The lease agreement expires in April 2014 and provides for annual lease payments at predetermined amounts, with increases in five year increments. At June 30, 1999, lease payments for the remaining lease term are as follows: Year Endinrr June 30- Amount 2000 S 1,995 2001 1,995 2002 1,995 2003 1,995 Thereafter 21.470 29.450 Note 6. CAPITAL LEASE PAYABLE In November 1998, the Organization acquired a van under the provisions of a long-teen lease. The minimum lease payments relating to the vehicle have been capitalized. The lease exptres in November 2003. The future minimum lease payments under capital lease and the net present value of the future minimum lease payments at June 30, 1999 are as follows: Total muumum lease payments $ 26,620 Amount representing interest (2.6421 Present Value of Net Minimum Lease Payments S 23,978 Less: Current Portion ( 5.301) Long-Term Capital Lease Obligation S 18.677 The following are maturities of long-term lease payments for each of the next five years: June 30, 2000 $ 5,301 June 30, 2001 5,476 June 30, 2002 5,657 June 30, 2003 5,843 June 30, 2004 1.701 S 23.978 Page I2 Bndge House, Inc. Notes to the Filnandel Statemenffi June 30, 1999 Note 7. RECONCILIATION OF EXCESS EXPENSES OVER REVENUE AND SUPPORT WITH NET CASH USED BY OPERATING ACTMTIES Excess Expenses Over Revenues $(24,869) Adjustments to reconcile change in unrestnaed net assets to net cash used by operating activities: Depreciation 11,371 Amomzation 3,855 Other 1,930 Increase in Accounts Receivable ( 5,113) Decrease in Prepaid Expenses 1,596 Decrease m Accounts Payable ( 2,225) Decrease in Accrued Expenses ( 6.987) Net Cash Used by Operating Activities S( 20.442) Bridge House, Inc. entered into anon-cash transaction during the year. The agency capitalized a lease.for a van to the amount of 527,482 (see Note 5). Note 8. DONATED SERVICES The Agency receives a significant amount of donated services from its residents who are provided with vocational training. No amounts have been recognized in the statement of activities because the critena for recognition under SFAS No. 116 have not been satisfied. Nevertheless, many volunteers have donated significant amounts of their time to Bridge House's activities. Note 9. CONCENTRATIONS Dunng the year ended June 30, 1999, the Organization received approximately 55% of its revenue directly from State of Hawaii contracts. Significant reductions, if any, rnuld have an adverse effect on the Organization's ability to continue operations. The ultimate determination of amounts received under these programs generally is based upon allowable rnsts reported to and audited by the government. Until such audits have been completed and a final settlement has been reached, there exists a rnntingency to refund any amount recnved in excess of allowable costs. Management believes that the probability of this occurring is remote. The Organization also received approximately 16% of its revenue from the U.S. Department of Housing and Urban Development (1•RJD). The Bridge House Nursery, Inc. also received all (100%) of its revenue from a local distributor who is the president of the Nursery Board of Directors. Page 13 s s r . - =y - . , .i! Y~! Bridge House, Inc. a ~ ~ s _ Notes to the iFinaneilal Statements June 30, 1999 ti_ ~ ~ . day Note 10. FUNCTIONAL ALLOCATION OF E70?ENSES - . - The costs of providing the various programs and activities have been summarized on a funcdottat ~~~'t~e basis in the statement of activities. Acrnrdingly, certain costs have been allocated among the , programs and supporting services benefited. Page 14 Form 990 Return of Organization Exempt from Income Tax Under section 501(c) of the Internal Rwenw Cods (except black lurq benefit trust or private founde0on) or seNon 4947(ax1) norwtempt charitable trust D,p,nm.nt of n, it«.erv Thls Form Is Open inbm•i Rw,rw, 5•rvic, Note: The organrzatron may have to use a copy o1 fhrs return to sahsy state reporting regwremenfs to Public Inspectlon A For the 1999 Mender «r, Or tax ad innin Jul 1 ,1999, and endl Jun 30 2000 B Check d C Wm• of ery,nwhen D lnrlyali«MC.fae• NuN•r Ch.np, er ,edr,a• q M11r~1 Brld a House Inc. 99-0293478 °r~~ Numbw 6 sMt (or P O taa if mni a not dNw,r,d b •tr«t •ddr Roomlenb E TW e« •~itMr ImWI nLm er M 1 M Fin.l nLm Mir P 0 BOx 2489 808) 322-3305 Am,nd,tl ntum le~«: City Town er Country Shb DP+~ F Chock If exemption :bbir`~won~r Kallue-KOrla HI 96745-2489 application is pendrnq G Type of organization ? X Exempt under section 501(c) 3 ' pnsert number) or ~ section 4947(a)(1) nonexempt charitable trust Note: Sscryon 501(cY3l enmpl organtradons srrd IW7)'s,)'1)nonarsmpf rhs~rlabM hush Must N/aefi a eamp(s/ed ScheduN A (ff~~ ~am 9961 H (a) Is this a group retrnn filed for attlllates~ Yes X fJo I If either box in H is choked Yes; enkr four-digit group exemption number (GEN) ~ (b) If Yes.' enter the number of afllllales for which this return is filed ? J Accounting method Cash X Accrual c Is this a separate return flied b an or anixation covered b a roup rulln ~ 'Yes !X No I ~ Other eci ~ K Check here ~ ' it the organization's gross receipts are normally not more than E25,000 The organization need ndt file a return with the IRS but if it receivetl a Form 990 package In the mail, it shoultl hie a return without financial data soma states requln a complete velum. Note: Form 990-EZ ma be used b or anrzahons with rocs race u less than E100,o00 and total assets less than 5250, OQD at end oI ear Revenue Fit nsss, and Chan ss in Net Assets or Fund Balances see instructions 1 Contributions, gifts, grants, and similar amounts receivetl ¦ Direct public support 1 a 5 855 b Indirect public support 1 b 17 296 . c Government contributions (grants) 1 c 245 752 d Total (add lines 1 a through 1 c) (attach schetlule of contributors) (cash $ noncash $ 0) L-ld Stmt ld 268 903 2 Program service revenue including government fees and contracts (from Part VII, line 93) 2 47 971 3 Membership dues and assessments 3 4 Interest on savings and temporary cash investments 4 5 Dividends and interest from securities 5 6a Gross rents 6a b Less rental expenses 6b c Net rental Income or (loss) (subtract line 6b horn line 6a) 6c 7 Other investment income (describe ~ 7 Ba Gross amount from sale of assets other (A) Securities (B) Other R than inventory 8a v b Less cost or other basis and sales expenses 8b x c Gain or (loss) (attach schedule) Be e d Net gain or (loss) (combine Irne 8c, coltmins (A) and (B)) 8d 0 9 Special events and activities (attach schedule) a Gross revenue (not Inclutling $ of confrltwtions reportetl on Ilne la) 9a 1 130 b Less direct expenses other than fundraising expenses 9b 380 c Net income or (loss) horn special events (subtract Ilne 9b horn line 9a) 9c 750 l0a Gross sales of inventory, less returns and allowances 10a b Less cost of goods sold 10 b e Gross profit or (loss) from sales of Inventory (attach schedule) (subtract lua 10b from line IOa) 10e 11 Other revenue (horn Part VII, line 103) 11 12 Total rwenue atld Imes ltl, 2, 3, 4, 5, 6c, 7, Bd, 9c, 1Dc, and 11 12 317 624 e 13 Program services (horn line 44, rnlumn 13 279 380 x 14 Management antl general (horn line 44, column (C)) 14 43 152 P N 15 Fundraising (from line 44, column (p)) 15 0 ! 16 Payments to attillates (attach schedule) 16 s 17 Totals see atltl lines 16 and 44, column A 17 322 533 ~ 18 Excess or (tleficlt) for the year (subtract line 17 from line 1 Z) 18 - 4 909 c s 19 Net assets or fund balances at beginning of year (horn line 73, column (A)) 19 9$ 199 1' i 20 Other changes in net assets or fund balances (attach explanation) 20 6 , 832 s 21 Net assets or Md balances at end of year (combine ones 18, 19, antl 20) 21 1 D0. 122 BAA For Paperwork Reduction Act Notlce, see sapereb Instrtsctlons TFEAOtoI ovroAO Form 990 (1999) Form 300 1999 Brtd a House Inc 99-0293418 P e2 Statement of Functional F.zpfnsts All orgenizatlons must complete wlumn (A) Columns (B), (c7, and (n) are repuxed fa sedan 501(c)(3) and (4) organixahons and ssdion 4947(a)(7) nonexempt chantabN trwis but optansl tur offw!rs Do not include amounts repatad on Inre Program (C) Mana t 66, 86, 96 106. or 16 0/Part 1 (N Totd servces and gsna~~ N) Fundraisirtq 22 Granb and albutasa ptbdi sdleduM) (cash $ 0 non-osh $ 0 ) 22 0. 0, 23 Specdic assntana m odividiuls (adadi sdi) 23 0 0 - 24 BenelRs pexl m or fa members (atltxii sch) 24 0 0 25 Canpensstm of oflwxs, direcbxs, eh 25 43 021 32 265. 10 755. 0 26 Other salanes and wages 26 91 451. 77 166 14 285. 0 27 Pension plan wntributions 27 0. 0 , 0 0 28 Other employee benefits 28 12 420 10 108 2 312 0 29 Payroll taxes 29 14 656 11 927 2 729. 0 30 Professional tundroisrng tees 3a 0. 0 0. 0 31 Awounting fees 31 0 0 - 0. 0 32 Legal tees 32 0 0. 0. 0 33 Supplies 33 10 656 8 992 1 664, 0 34 Telephone 34 4 356 3 921 , 435 0 35 Postage and shipping 36 545 0 545 0 36 Occupancy 36 30 144 27 130 3 014- 0 37 Equipment rental and maintenance 37 1 404 702 702 0 36 Printing antl publications 96 321 289 32 0 39 Travel 39 150 135 15 0 40 Conferences, mmenbons, and meetings 40 334 301 33 . 0 4t Interest at 326 293 33 0 42 DepreciaMn, depletxzi, etc (attach schedule) 42 5 136 4.623 513 0 43 Other espenses (itemize) a _ _ _ _ _ _ _ _ 43a b Loss on abandonment of assets 43b 2,265. 2 038 227 0 cOfftce_Expe_nse_______ 43c 49Z 443 49 0 d Food Stamp_E_xpense_,___ 43d 8 349 8 349 0 0. • See Other Ez enses Stmt 43a 96 507 90, 698 5 , 809 0. 44 7dal fuaetlasN ayNw (add Iew 22 43 orga¦uhNwoas~eabs~yllsltl~131t ~m (B)-( ~ 322,533 279 380 43 152 0 Reporting of Jofnl Cosls -Did you report in column (B) (program services) any joint vests from a wmbined educational pmpaign and fundraising solicitations ~ ? Yes 0 No It'Yes,' enter m the aggregate amount of these joint vests $ , (I~ the amount allocated to program services $ , pi) the amount allocated to management and general $ ,and (Ili the amount allocated to lundraism $ Statement of Pro ram Service Accom ishments Whet is Ux organization's primary exempt purposes ~ xeualn~ena treat.ent ef_recerertna dr~`seetcrs ena eteehettca Prsoras SanIG E7/NW All organizations must describe their exempt purpose achievements in a clear and concise manner State the number of ~'~""itl AOr 501t`trn'e° clients served ubhcations Issued, etc Discuss achievements that are not measurable fSedion 501 c ( °iss"'~0"s one izations 8 section 4947 a (7 nonexempt charitable trusts must also enter the amount or rants & alloez<tions o) otMrs) w~tlor~alliwa i a The organization prov~des_a_safe liv_t ng enytronment_for_recov_ering___ alcoholics and drug addicts_as_Qart_of_a 120 daY recover~pro~ram Counseltn~ and rehabilttattv_e-programs are provtded_ 105 cllents_s_erved during theyear_ (Grants and allocations $ 0 ) 279 380. b (Grants and allocations $ ) c _ (Grants and allocations $ ) d Grants end allocatons $ • ether ro ram services Grants end allocatons $ f Total of P nm Servlca Eu ansas sttoWd a ual line 44, wlimrt r rem services ~ 279 380 f!M ,t~otoz tztsuaa Form !BO (1999) Form 990 (1999) erldl;e House, Inc 99-0293418 Pade3 Balance Shaeb (See mstrucbans> Note: Where requved, attached scheduks and amounts within the descnphon (A) column shook be la end•ol year amounts only Beginning o} year End oB year 45 Cash -non-interest•bearmg 1 589 45 4 982 46 Sarongs and temporary cash mvesenents 46 47a Accounts receivable 47a 32 443 b Less allowance for doubtful accounts 47b 10 048 42 , 915 47e 22 395 . 48a Pledges receivable 48a b Less allowance for doubtful accounts 48b 48c 49 Grants receivable 49 ~ 50 Receivables hom officers, directors, trustees, and key employees s (attach schedule) 50 E 51 a Other notes & loans receivable (attach schedule) 51 a s b Less allowance for doubtful accounts 51 b 51 c 52 Inventories for sale or use 52 53 Prepaid expenses and deferred charges 2 214 53 3 479 54 Investrnents -securities (attach schedule) 54 55a Investments -land, bwldmgs, & equpment bans 55• b Less accumulated deprecation (attach schedule) SSb 55c 56 Investments -other (attach schedule) L-56 Stmt 52, 734 56 59 763 57a Land, buildings, and equipment basis 57a 51 699 . b Less accumulated depreciation (attach scheduley L-57 Stmt 57b 17 602 37 583 57c 34 097 58 Oeer assets (describe ~ ) 58 59 Total assets add lines 45 throw h 58 must a ual line 74 137 , 035 59 124 716 60 Accounts payable and accrued expenses 14 858 60 4 186 61 Grants payable 67 62 De}erred revenue 62 e 63 Loans hom officers, directors, trustees, and key employees (attach schedule) 63 64• Tax-exempt bond liabilities (attach schedule) 64¦ b Mortgages and other notes payable (attach schedule) 64b s 65 Other liabilities (describe ~ See L t ne 65 Stmt ) 23 978 65 20 408 66 Total IlabllitlK add lines 60 throw h 6 38 , 836 fib 24 594 Organizations that follow SFAS 117, check hero ~ X and complete lines 67 through 69 and lines 73 and 74 4 67 Unrestricted 98, 199 67 100 122 68 Temporarily restricted 68 69 Permanently restricted 69 Organizations that do not follow SFAS 117, chock hero ~ ~ and complete lines 70 through 74 70 Capital stock, trust principal, or current lands 70 71 Paitl in or capital surplus, or land, building, and equipment fund 71 72 Retained earnings, endowment, accumulated income, or olher lands 72 73 ToLI net asaats or fund balancK (add lines 67 through 69 or lines 70 through 72, column (A) must equal line 19 and column must equal line 21) 98 199 73 100 122 74 Total IiaMlitiK and net assatsllund balancK add lines 66 and 73 137 035 74 124 716 . Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization How the public perceives an organization in such cases may be tletartnined by the information presented on its ratirm Therefore, phase make wre the return is complete and accurate and lolly describes, in Part III, the organization's programs and accomplishments BAA TE£A0103 OBgt99 Form 9lp 1995 Brtd a House Inc 99-0293418 Pa e4 Recondliation of Revenue per Audltsd RecondlitNion of Expenws per Audited Flnandal ShlemenU with Revenue Flnandal Statsmente with F~Ipenses per Return (See Instructions.) per Return • Total renew, pee, end other suppM • Toll expenses and losses per per audited tinancul sbWnents ? • 318 004 audded financial statements ? a 322 911 b Anqunts meluded on dne a but b Amounts meludsd on tine • but not not on line 12, Form 990 on line t 7, Form 990 (1) Net unreahzad (1) Donated serv• gains on aes and use mvestments $ of facilities $ Donated serv• Prar year adryst- aes and use meets reported an of facddies $ hne 20, Farm 990 $ Recouerw of prar losses reported on ywr ~anls $ hne Z0, Form 990 $ (4) Olher (speciy) (4) Other (speay) Fundrat sinB_ ROUndt n~ _ ExQenses 380 runeraiar_gEa~<nae$ 379. Add amounts on lines (1) Add amounts on lines (1) through (4) ? b 380 though (4) ? b 379 c Line • minus line b ? e 317 624 c Line • minus line b ? c 322 532 d Amounts included on 1me 12, d Amounts mcWded on Ime 17, Form 990 but not on line a: Form 990 but not on line (1) Investment expenses not (1) Investment included on expenses not line 6b, included on line Form 990 $ 6b, Form 990 $ (2) Other (speciy) (2) Other (speciy) Add amounts on lines (1) and ? d Add amounts on lines (1) and C-0 ? d a Total revenue per line 12, Form • Total expenses per line 17, Forrn 990 (line c plus line d) ? • 317 624 990 (lines lus line d) ? • 322 532 List of Officers Diroetors Trustees and Ks Em o ss ist each one even if not co ensated sea instrurtions (B) Tdk and average houre Compensation (D) Contributions to (q Expense (A) flame and address Per week devoted Of not paid, employee benefd aeeoe+tt end other to position snl•r-0-) plans and dslsrred elbwances compensation Walter Welton 75-890 Htona St Holualoa,HI 96725 PreStdent 1 0 0. 0 Clem Zterke_____________ 73-3018 Ah1 kaNa St Kailua-Kona, HI 96740 V1 CE PEES 1 0. 0 0 Michael Medtna_ _ 75-5595 Pelanl Rd Ste Cl Katlua-Kona HI 9674 Treasurer 1 0 0 0 Stephen Denzer~ MD________ PO Box 667 Kealakekua, HI 96750 Medical Dtr 1 0 0 0 Michelle Bescos__________ PO Box 4097 Katlua-Kona HI 96745 D7 rector 1 0 0 0 Derek Inaba PO Box 453 Kealakekua HI 96750 Dtrector 1 0 0 0 Dick Towle 78-111C Holua Rd Kailua-KOna HI 96740 DireCtOf 1 0 0 D Stan Boren 76-6260 Koko Ol ua Pl Karlua-Kona MI 9674 Dtrector 1 0 0 0 Al Gulick 78-111C Holua Rd Kailua-Kona HI 96740 Dt reCtOf 1 0 0 0 See List of Offerers Etc Statement 43 021 0 0 75 Did any oNrcer, dvector, trustee, or key empbyee receive aggregate compensation of more than tit 00,000 from your organization and all related organizatrons, of which more than E10,000 was provided by the related organizations ? ? Y•s X? No If Yes; attsd+ schedule - xe irutructrons BAA tt>FUnra ~zreto9 Form 990 (1999) Form 990 t999 Brld a House Inc 99-0293418 Pa 5 Otho?Info?tna8on ee ecific Instructions yp ~ ~ of each ac awnizetion engage in any activity not previously reported to the IRS If 'Yes,' attach a detailed descriptron ~ h X 77 Were any changes made in the organizing or governing documents but not reported to the IRS 77 X If 'Yes,' attach a conformed copy of the changes 78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this reCUn~ 78a X b If 'Yes,' has it pled a tax return on Form 990•T for this years 7gb 79 Was there a liquidation, dissolution, termination, or substantial contraction during the years If 'Yes,' attach a statement 79 X 80a Is the organization related (other than by association with a statewide or nationwide organization) through common membership, governing bodies, trustees, officers, etc, to any other exempt or nonexempt organizations 80a X b lf'Yes,'enter the name of the organization? and check whether it is~axempt or nonexempt 81 a Enter the amount of political expenditures, direct or indirect as described in the instructions 181 a ~ 0 , b Did the organization file Form 1120•POL for this years 81 b X ffia Did the organization receive tlonatetl services or the use of materials, equipment, or facilities at no charge or at substantially less than fair rental values ffia X b If 'Yes,' you may indicate the value o} these items here Do not include this amount as revenue in Part I or as an expense in Part II (See instructions for reportng in Part III) ~ ffib 83a Did the organization comply with the public inspection requirements for returns and exemption applications 83¦ X b Did the orgarnzaton comply wrfh the disclosure requirements relating to qui0 pro quo contributions 83b X 84a Did the organization solicit any contributions or gifts that were not tax deductibles 84a X b It 'Yes,' did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? 84b 85 501(c)(4), (5), or (5) orgamzatrons a Were substantially all dues nondeductible by members 85a b Did the organization make only in house lobbying expendiG~res of $2,000 or less 85b Ii 'Yes' was answered to either 85a or 85b, do not complete 85c trirough 85h below unless the organization received a waiver for proxy tax owed for the prior year c Dues, assessments, and similar amounts from members 89c d Section 1fi2(e) lobbying and political expenditures 85d • Aggregate nondeductible amount of Section 6033(e)(1)(A) dues notices 85a t Taxable amount of lobbying antl pohbcal expenditures (line 85d less BSc) 851 i g Does the organization elect to pay the Section 6033(e) taz on the amount in 85P 85 h If Section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount in 85f to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax years 85h 86 501(c)(7) organ2ahons Enter a Initiation fees and capital contributions included on line 12 86a b Gross receipts, included on line 12, for public use of club facilities 86b 87 507(c)(12) orgarr2atrons Enter a Gross income from members or shareholders 87a b Gross income from other sources (Do not net amounts tlue or paid to other sources against amounts due or received from them) 87b 88 At any time during the year, ditl the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations Sections 301 7701-2 antl 301 7701-3~ If 'Yes,'rnmplete Part lX 88 X 89a 50I(c)(3) organ2ahons Enter Amount o} tax imposed on the organization during the year under Section 4911 ? 0 ,Section 4912? 0 ,Section 4955? 0 b 501(c)(3) and 501(c)(4) organ2ahons Did the organization engage in any Section 4958 excess benefit transaction during the year or did it become aware of an excess benefit transaction from a prior years If 'Yes,' attach a statement explaining each transaction 89b X c Enter Amount of tax imposetl on the organization managers or disqualified persons tluring the year under S eCGOfK 4912, 4955, and 4958 ~ 0 d Enter Amount of tax on line 89c, above, reimbursed by the organization 90a List the states with which a copy of this velum is filed ? None Re U1 red _ ------4-----------------------r 6Number of employees employed in the pay period that includes March 12, 1999 (see instructions) 190b 8 91 The books are in care of ? $r 1 d e HOUSE, InC _ _ _ _ _ _ _ _ _ Telephone number ? (808 322-3305 ---g---------- L«ated at?_P_0__BOx 2459_ Kallua_KOna HI_ ZIP+~? 967_45-2489__ 92 Section 4947(a)(1) nonexempt charrtabre trusts filing Form 990 m Ireu or Form 1011- Check here and enter the amount of tax exempt rnterest received or accrued during the taz year 92 BAA Form 990 (1999) n=raotos tznoss Form990 I Bride House, Inc 99-0293418 Pa e6 Anal s of Ineome•Produdn Activitles ee Instructions Unrelated business Income Excluded b section 512, 513, or 514 Enter gross amounts unless (A) (B) (L7 (D) Related(a exempt otherwise Indicated Business code Amount xclusien cotl Amount function Income 93 Program service revenue a Boarding Fees 40 637 bFOOd Stamp Income 7 334 c d • ( Madicve/Medicaid payments g Fees & contracts from plvxnment agencw 94 Membership dues and assessments 95 Interest on savmps 8 temporary cash mvmnb % Dividends & Interest hom securities 97 Net rental income or (loss) from real estate ¦ debt financed property b not debt-hnaneetl property 98 Net rmfal income or (loss) from pars Drop 99 Other investment income 100 Gain or (lass) from sales of assets other than Inventory 101 Net Income or (loss) hom special events 102 limas Pmht or dou) hom aaM of Irnanaory 103 Other revenue ¦ b c d • 104 Suhtotal (add columns (BJ (D), and (E)) 47 71 105 Total (add line 104, columns (8), (D), antl (E)) ? 47 , 971 Note: Line 105 lus Inre )d, Part I, should a ual the amount on Irne 12 Part 1 Relatlonshi of Activities to the Accom ishment of Exem t Pu oses ee InsoLChons Line No. Explain how each activity for which Income is reported in column (E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes (other than by providing lands for such purposes) 93a Boardin fees are received from clients for safe housin rovided to adult men and women Burin recover from substance abuse 93bFood stem s are received from clients to offset the cost of rovidln meals to clients to recover Information Rs ardin Taxable Subsidiaries and Disre arded Entities ee Instructions (A) (B) (~7 N) Name, address, and EIN of corporation, Percentage of Nature of activities Total End-of•year partrlershlp, or disregarded entity ownership mterest rnmme assets erid a House Nurser Inc 100 0000 % Nurser -A rtcultural 6 832 207 432 P 0. Box 2489 % Kailua-Kona HI 96745 % % UnEar PanalOn a1 I tlaelan Fat I have axaml,rE Fn nLm 1nPWm eomn• srh lea antl abbm1nta, antl to Yw bast o' my ~no.ia~a• oral bal,af, d ¦ Please true comet, anE wmplab Dadanborl of PnOarar (oFar Fan olfie.0 a baaitl on air inrbrlriaben o whrh Pnparn nag anY bnoMad7a (9.. nshueEwrs ) Sign ? ~ ? Hero epmtun of Olfiear Dab Typa er Pnnt Hama and 1 itla Dab Check if Praparara e5N or PTIN Paid PnPanrs ~ p ~ ~ ~ calf Pre- s'a""" ? ~w..tG:. 12/14/00 .mPhYaE ~ x1575-72-2863 paror's F~maNama Carbonaro CPA's & Ma a ement Grou Only cwf~^o~ ? 1043 MakaHao Ave #205 EIN ~ 99-0303190 and Marv. Makawao HI ZIP+a ~ 96758 BAA iEe~ola6 Iv27is5 Fonn 990 (1999) CIp11trl,rllt W M trwsiuy IniwrW Rw+niw Swrvo Schedule A Organization Fatempt Under 1999 ~ Sedwn 501(c)(~ IRS i,.. only - oe not vent a abpN nn w~. (Except Private Foundetlon) and Section 501((e). 507(f? 501(k1501(n~ or Section 4947(axl) one w ls<s aa~ onexempt Charitable Trust Supplemerdary fntorm on - (See separate Instructlona.) Must M com sled the above anlaatlorrs end attached to tl»Ir Forrn 990 or 990-EZ Nano el rr O,ymaeat EmDIWor IdrtitiRahen puirih~r Brfd a House Inc. 99-0293418 Compensation of the Five Highest Paid Employees Other Than Officers, Dirodoro, and T?ustees (See Instructions List each one If there are none, enter 'None (a) Name and address of each (b) Title and average (e) Compensation Contributwns (e) Expense employee paid more hours per weak to emDlore~~R account and other than Ep ,000 devoted to position Dcompentatwn allowances None Total number of other employees paid over S50 000 ~ None Compensation of the Five Highest Paid Independent Contractors for Professional Services (See Instructions Llst each one (whether intlividuals or firms) If there are none, enter 'None (a) Name antl address of each indepentlent contractor paid more than ESO,000 (b) Type of service (c) Compensation None Total number of otrters receiving over 550,000 for rofesswnel services ? NOne BAA For Paperwork Reduetltxt Act Notice, see the instrudlons for Form 990 end Form 990-EZ. SehtedWS A (Porto 990) 1999 rEE~orot oravD ScheduleA orm990 1999 Bride House Inc 99-0293418 Pa e2 Statetnsnts About Activities Yes No 1 Durng the year, has Cie orgarazation attempted to mfiuenee national, state, or local legislation, inNudmg any attempt to influence public opinion on a legislative matter or referendums 1 X l} 'Yes,' enter the total expenses paid or incumetl In connection wvih the lobbying activities ? $ Organizations that made an election under section 501(h) by Kling Form 5768 must complete Part VI•A Other organizations checking 'Yes,' must cpmplete Part VI 8 and attach a statement giving a detailed description of the lobbying attivibes 2 During the year, has the organization, either tlvectly or indirectly, engaged in any of the following acts with any of its trustees, directors, oKcers, creators, key employees, or members o then families, or wdh any taxabb orgamzaban with which any such person is alhllated as an officer, director, trustee, maloriry owner, or principal beneficiary a Sale, exchange. or leasing of proparry~ 2a X b Lending of money or other extension of credits 26 X c Furnishing of goods, services, or facillties~ 2c X d Payment of compensation (or payment or reimbursement of expenses if more than E1,000)~ SEE Pt V, Fm 990 2d X • Transfer of any part of its income or assets 2a X 1} the answer to any question is 'Yes,' attach a detailed statement explaining the transactions 3 Does the organization make grants for scholarships, fellowships, student loans, etc 3 X 4a Do you have a section 403(b) annuity plan for your employees 44 b Attach a statement to explain how the organization determines that intlivrduals or organizations receiving grants or loans from it in furtherance of its charitable ro rams uali to receive a ants tie instructions Reason for Non-Private Foundation Status (sea lnstivctions ) The organization is not a private foundation because it is (please check only Onrr applicable box) 5 A church, convention of churches, or association of churches Section 170(b)(1)(A)(i) 6 A school Section 170(b)(1)(A)(ii) (Also complete Part V, page 4 ) 7 X A hospital or a cooperative hospital service organization Section 170(b)(1)(A)(ifi) 8 A federal, state, or local government or governmental unit Section 170(b)(1)(A)(v) 9 A medical research organization operated in conjunction with a hospital Section 170(b)(1)(A)(iii) Enter the hosplLl's name, city, and steta~ 10 ~ An organization operated for the benefit of a college or university owned or operated by a governmental unit Section 170(b)(1)(A)(iv) (Also complete the Support Schedule in Part IV A ) 11 • ~ An organization that normally receives a substantial part of its support hom a governmental unit or from iha general public Section 170(b)(1)(A)(vi) (Also complete the support schedule in Part IV A ) 11 b ~ A community trust Section 170(b)(1)(A)(vi) (Also complete the Support 5chadula in Part IV•A ) i2 ~ An organization that normally receives (1) mon than 331/351 of its support from contributions, membership fees and gross receipts from activities related to its charitable, etc, functions - wblect to certain exceptions, and ~ no more than 331f~'i1 of its wpport hom gross investment income and urvelated business taxable income (less seMion 511 tax) from businesses acquired by the organization after June 30, 1975 See section 509(a)(2) (Also complete the Support 5chadula in Part IV•A ) 73 ~ An organization that is not controlled by any disqualifietl parsons (other than foundation managers) and supports or anizations described in (1) lines 5 through 12 above, or (7) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)~Zj (See section 509(a) ) ) Provide the fallowing information about the supported organizations (See instructions ) (a) Name(s) of supported organization(s) (b) Line number hom above 14 I I An organization organizetl and operated to test for public safeH Secton 509(a)(4) (See instructions ) gpA ~p103 fylpigq Schedule A (Form 990) 1999 ScheduleA orm990 1999 Bride House Inc 99-0293418 Pa e3 $U~O14 $Chedub (Complete only if you checked a box on line 10, 11, or 12) Use ceah nveyhod o/xcourrMny. N/A Hots: You may use the worksheet rn the msfructions for converting M1om the accrual to the cash method of accounting Glsstds>r ywr (or flsW ywr (a) (b) (c) (d) (s) bsglnnlrsq In) ~ 1998 1947 1946 1995 Total 15 Gifts, grams, antl contributions recervetl (Da not Include unuwel ants See tine 28 16 Membershi fees received 17 Grass rocelpb from admusions, merchandise sold ar servlw performed, or furmshmp of facddw in aIy activity that a not a bususw unrekhd to the or vatian~cfuintabl etc, u se 18 Gross Income ham Interest, dividends, amounts received from paymcots an secunties loans (Section 512(ax5)), rents, royalties, and unrelated business lovable income (bss Section 511 taxes) from businesses atgmred by the organ Imtion after June 30, 1975 19 Net income tiom unrelated business adrvdies net mdudetl m tine IB 20 Tax revenues levietl for the organizatlon's benefit and either paid to It or expentletl on ITs behalf 21 The value of services or facilities fumishetl to the organization by a govammental oral without charge Do not include the vaWe of services or facilities generally furnished to the Whc wdhout char e 22 Other income Atach a schedule Do not Include gain or (loss) M1om sale of c ital assets 23 Total of lines 15 throw h 22 24 Line 23 minus line 17 25 Enter 1 % of Ilne 23 26 Orgsnlzatlons dsscribsd on lines 10 or 11; ¦ Enter 2% of amount In column (e), line 24 ~ 26a b Attach a list (which is not open to public Inspection) showing the name of and amount contributed by each person (other than a govermmental unit or publicly supported organizatron) whose total gifts for 1995 through 1998 exceedetl the amount shown in line 26a Enter the sum of all these excess amounts ? 26b c Total support for Section 509(a)(1) test Enter line 24, column (e) ~ 26c d Add Amounts M1om column (e) }or lines 18 19 22 26 b ~ 26 d • Public support (line 26c minus Ilne 26d total) ~ 26• f Public su ort rcsrda • Ins 26s numsntor divided b Ilns 26c dsnominsfor ? 26f % 27 Orgamratlons described on tins 12. ¦ For amounts included in lines 15, 16, and 17 that were receivatl from a 'disqualified person,' attach a Ilst to show the name of, and total amounts receivetl in each year from, each 'disqualified person 'Enter the sum of such amounts for each year (1`~) (l~n------------ (1996)------------ (1~------------- bFor any amount included in Ilne 17 that was received from a nondisqusllfied person, attaM a list to show the name ot, and amount received for each year, that was more than the Isrgsr of (1) the amount on line 25 for the year or (2) 55,000 (Irxlude In Ilia Ilst organizations described in Imes 5 through 11, as well as individuals) After computing the difference between the amount received and the larger amount described in (1) or (Z). enter the sum o} these dltterenees (the excess amounts) for each year (1998) (1997) (1996) (1995) cAdd Amounts from column (e) for lines 15 16 17 20 21 ~ 27c d Add Lme 27a tote! and line 27b total ~ 27d • Public support (line 27c total minus line 27d total) ~ 27• f Total support for section 509(a)(Z) test Enter amount on Ilne 23, column (e) 27f p Publlt support psrcsnLgs Qlns 27~ (numsrstor) divided by Ilns 27f (dsnominslor)) ~ 27 % h Invwtmsnl Income sots Ilrss 18, column • numerator divided Ilns 27f dsraminator ~ Z7h % 28 Unuswl Grant: For an organization describetl in line 10, 11, or 12 that received any unusual grants tluring 1995 through 1998, attach a list (which is rat open to public inspection) for eacn year showing the name of the contributor, the date and amount of the grant, and a brief description of the nature of the grant Do net incWCle these grants in line 15 (See instructions ) BAA iEFaowa i~ys Schedule A orm ) 1 ScheduleA orm990 t999 Bride House, Inc 99-0293418 Pa ea Privab School Qwstionnairo (See instructioru ) (lb M complslsd Only by schools that chscksd 1M box on Iins 61n Pail M N ~ A Yss No 29 Does the organization have a raaally nondiscnminarory policy toward students by statement in i4 charter, bylaws, other governing instrument, or in a resolution of its governing body p9 30 Dces 71e organization include a statement of its racially nondtscrlmmatory policy toward students in all its brochures, catalogues, and other written communications with the public dealing with student admissions, programs, antl scholarships ~ 31 Has the organization publiazed its regally nondiscriminatory policy through newspaper or broadcast media during the period of solicitation }or students, or during the registration period if i has no solicitation program, in a way Ulat makes the polity known to all parts of the general community it serves 31 If 'Yes,' please describe, if 'No,' please explain (If you need more space, attach a separate statement ) 82 Ooes the organization maintain the following a Records indicating the racial composition of the student body, faculty, and atlministratrve staffr 32¦ b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis 32b c Copses o! all catalogues, brochures, announcements, and other written communications to the public dealmg with student admissions, programs, and scholarships 32e d Copies of all material used by the organization or on its behalf to soligt contribuhons~ 92d If you answered 'No' to any of the above, please explain (If you need more space, attach a separate statement ) 33 Does the organization tliscriminate by race in any way wiCl respect to a Students' rights or prrvileges~ 33¦ b Admissions policias~ 33b c Employment of faculty or administratwe staffs 39c d Scholarships or oUier fineness assistance' 33d a Educational policies 33• f Use of facilities' 33f g Athletic programs 3;1 h Other extracurricular actrvities~ 39h If you answered 'Yes' to any of the above, please explain (If you need more space, attach a separate statement ) 34a Does the organizabon recerva any financial aid or assistance horn a govemmantal agency 34• b Has the organization's rlgFlt to such aid ever been revoked or suspended 34b If you answered 'Yes' to other 34a or b, please explain using an attached statement 85 Does the organization cerary that it has compliatl with }he applicable requirements of sections 4 01 7lrough 4 OS of Rev Proc 550, 1975-2 C 8 587, coverin resat nondisenminaLOn~ If 'NO,' attach an ex lanahon 35 BAA iEEw01a It/IO199 ScheduleA orm ) I scheduteA orm990 1999 Br1d a House Inc 99-0293418 Pa e5 Lobbying Expendturos by Dectlng Public Charitles (see instructions ) (To be completed Only by an eligible orgarrzaban that pled Form 5768) N/ A Check here ? a if the orgrnimfian belongs td an aflihalsd group Check here ~ b if ou checked 'a' above and 'limited control' rovisians a I Limits on Lobbying Fapendituros (b) Affiliated group To be completed (The term 'expendihxes' means amounts paid or incurred) totals for all electing or anizabons 36 Total lobbying expenditures to Influence public opinion (grassroots lobbying) 96 37 Total lobbying expenditures to influence a legislative body (direct lobbying) 37 38 Total lobbying expenditures (add Imes 36 antl 37) 38 39 Otrter exempt purpose expenditures 39 40 Total exempt purpose expenditures (add Imes 38 and 39) 40 41 Lobbying nontaxable amount Enter the amount from the following table - If the amount on line 401s - Tha lobbying nontaxable amount Is - Not over $500,000 20% of the amount on tine 40 Over (500,000 but not aver 51,000,000 (100,000 plus I S%al the exrss war (500,000 Over (1,000,000 but not over 51,500,000 5175,000 plus 10% of the emus war (1,000,000 41 Over fI, S00,000 but not over (17,000,000 f125,000 plus 5% of the excess over (1,500000 Over $17,000,000 $1,000,000 42 Grassroots nontaxable amount (enter 25% of line 41) 42 43 Subtract line 42 from line 36 Enter 0- If line 42 is mare than line 36 49 44 Subtract line 41 from line 38 Enter 0- it line 41 is more than Ilne 38 44 Galion. 11 there xs an amount on either line 43 or Ime 44, ou must file Form 472(1 4 -Year Averaging Period Unds? Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below See the instructions far lines 46 through 50 ) Lobbying Expenditures Dunng 4 -Y~ar Averaging Period Glendaryear (a) (b) (c) (d) (a flxal year 1999 1998 1997 1996 Total Inning In) ~ 45 Lobbying nontaxable amount 46 Lobbyyrrrp eeihnp amount (150%01 line l e ) 47 Total lobbying ex enditures 48 Grassroots non- taxable amount 49 Grassroots calling amount (150% of Ilse /8(e)) 50 Grassroots lobbying ex enditures Lobbying Activity by Nonelecting Public Charities (For reporting only Dy organizations that did not complete Part VI A) (See instructions ) During the year, did fha organrzafion attempt to inltuence national, stele or local legislation, including any Yaa No Amount attempt to influence public opinion on a legislative matter or referendum, through the use of a Volunteers X b Paid sta!} or management (xxclude compensation in expenses reported on Imes c tfxrough h.) X c Media advertisements X d Mailings to members, legislators, or the public X • Publications, or published or broadcast statements X f Grants to other organizabons for lobbying purposes X q Direct contact with legislators, their staffs, government officials, or a legislatve body X h Rallies, demonstrations, seminars, eonventrons, speeches, lectures, or any other means X i Total lobbying expeMilures (add lines c through h) If 'Yes' to any of the above, also attach a statement giving a detailed description of the lobbying acbvihes BAA 7EElloeoe t7A01e9 SCt»dUb A (Form 990) 1999 ScheduleA orm990 t999 Brtd a House Inc 99-0293418 a e6 Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations (see instructlons) 51 Did the reporting orgenizatlon directly or indirectly engage in any of the following rnCt any other organization described in section 501(c) of the Code (other Than section 501(c)(3) organizations) or m section 527, relating ro political organizafions~ a Transfers from the reporting organization ro a noncharitable exempt organization of Yeis No (QCash 51 a X (I)Otlur assets a I X b Other transactions Q)Sales or exchanges of assets with a noncharitable exempt organization b i X (i)PUrchases of assets from a noncharitable exempt organization bit X pipRental of facilities, equipment, or other assets b W X pv)Reimbursement arrangements b X (v)Loans or loan guarantees b v X (vi)Parformance of services or membership or hmdraising solicitations b X c Sharing of facilities, equpment, mailing lists, other assets, or paid employees c X d If the answer to any of the above is'Yes,' com late the following schedule Column (b) should always show the fan market value of the goods, other assets, or services given by the reporon organization If the organiza4on received less Clan fair market value in an ansac4on or sharin err errant, show in ca umn a value of the oo ,other assets or services reeeived a b e Line no Amount involved Name of noncharilabla exempt organization Deuriptron of transfers, transae( hone, and sharing artantMmenfs 52a Is the organ2abon directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 507 (c) of the Code (other than sectlan 501(c)(3)) or in section 527 ? ~ Yas X[] No b If 'Yes,' com lets the followin schedule Name of organzation Type of organization DescnpGon of relationship BAA tEEA01a i7/lO199 Schedule A (Porto 990) 1999 4562 Depreciation and Amortization o~Ne is~s-0,n Form pnduding Information on Listed Property) ~9 DapaNnant of tM Traawry ? 5M lrotrucbarts. Inbrw Rawalw 5arviea (99 ? Attseh this form to your retum. Nama(a) Sfewn an RaLm BDaa1Ma M Aeeviry b Nhrh Thp Farm RNaba Naesplas N~ttY.! erld a House, Inc Form 990 a e 2 99-0293418 f]ection to F~lpense Certain Tangible Property (Sectlon 179) (Nola: if you haute any 'Irsted property 'complete Pert V e e you complete Part I ) 1 Maximum dollar Iimltabon It an enterprise zone business, see Instructions 1 j19 000 2 Total cost of Section 179 property placed in servce See Instructions 2 ~ Threshold cost of Section 179 properly before reduction In limitation 3 f200, 000 4 Retluction in limitation Subtract Ilne 3 from Ilse 2 If zero or less, enter -0- 4 5 Dollar limitation for tax year Subtract line 4 from Ilne 1 If zero or less, enter 0- If martied flung sa aratel ,see Instructions 5 a OaampOOn of property Cut (huunsa au anlY) C Elacbd coat 7 Listed properly Enter amount from line 27 7 B Total elected cost of Section 179 property Add amounts In column (c), lines 6 and 7 8 9 Tentative deduction Enter the smaller of Ilne 5 or Ilne 8 9 10 Carryover of tlisallowetl deduction from 1998 See instructions 10 11 Business income limitation Enter the smaller of business Income (not less than zero) or line 5 (see Instrs) 11 12 SeMlon 179 expense deduction Add lines 9 and 10, but do not enter more than line 11 12 13 Ca over of disallowed deduction to 2000 Add lines 9 and 10, k+ss line 12 ~ 13 Nots: Da not use Part !1 or Part below Poi lrsfed property (automobiles, certain other Yehrcles, cellular telephones, certain computers, or property used for entertainment, recreation, or amusement) Instead use Part V for listed property fiAACRS Depprocietion for Assets Placed in Ssrviu'Only During Your 1999 Taz Ysar (Do Not Inclutl~ Listed Propslty) Ssctlon A - Gsnsral Asast Account Election 14 If you are making the election under Section 168()(4) to group any assets placed In service during the tax year into one or more general asset accounts, check tt1ls box See Instructions ? n Stxtlon B - Gsnsrsl D rxlatlon S stem GDS ee Instructions (a) (b) Mena and (C) Bnn ror Eapraoaoon (d) (e) (Q (W Daprac.ean paw&aEOn of DreParty year Placed (buurwaaFmrhnant up Raeevary panetl Cernantlon MarreE tltlxren m orv~u enN - w msWeoonU 15.3- ear r b 5 ear ro e c 7- ear ro e d 10• ear ro e • 16- ear ro e t 20 ar ro e 25 ear roe 25 rs 5/L h Residential rental 27 5 r s MM L property 27 5 r s MM S/ L I Nonresidential real 39 r s MM S/ L property MM S / L Sttctlon C - AHsmsBvs D IticlaBon 5 slam ADS ee Instructions 16• Class life L b 12- ear 12 r 5 $ / L c40 ear 40 r5 MM S/L Other De rodation o Not Include Listtd P ee Instructions 17 GDS and ADS deductions for assets placed In service In tax years beginning before 1999 17 5 136 18 Property sub)ed to Section 168(Q(1) election 18 19 ACRS and other d reciation 19 Summa ee Instructons 20 Listed property Enter amount from Ilne 26 20 21 Total Add deductions on Ilna 12, Imes 15 and 16 In coumn (p), and Imes 17 through 20 Enter here and on the appropnate Imes of your return Partrierships an corporations -see Instructions 21 5 136 . 71 For assets shown above and placed In urvlce during the current year, enter the ortion of the basis attrttxrfabls to Section 263A costs 71 AA a spsrw on Ad p, see Inst Ftxmetz tadlN9 arm Form 4562 1 Brld a House Inc 99-0293418 Pa e2 Lisbd Propstly - Automobiles, Certain /kher Vehides, Cellular Telephones, Certain Computers, and Properly Ussd /or Enbrtainnlsrlt, Rscnadon, or AmuserrhM Notr. For any vehlck lbr which you are using the stentlard mikege rate or detluclrng lease expense, complete on/y23a, 23b, columns (a) through (c) o! Sec[ron A, all o/ Section B, and Becton C r! goplrcable Sactlon A - atlon and Other Nfonnatlon Cautlon: Sae mstructrons ibr !Worts rbr en er automoodes 23a Do lion endence m su the bumen/irnatment use claimed? Ye No 2~ It Yes; Is lM evgonu wilten7 Ya No cap ro~ c~,„~ , c~ (a~ m cap m> m Tm~ of propMMyy qst Deb Dbud Cut v Bnn M deDneaeon ~'ry sbeaei ro0on EMCbd v~hcM inrr m NrvIG arvwe,rnt oMr E~ua (hNOwrrinwhrrnt Prr„od Ce,mn?en d~idlcoon S~cem 119 P ur mM ust 24 Pro a used more than 50% in a ualihed business use see instructions 25 Pro a used 50% or less in a ualified business use see instructions 26 Add amounts in column (h) Enter the total here and on line 20, page 1 26 27 Atld amounts in column Enter the total here and on I~ne 7, page 1 27 Sectlon B - Intormalltsn on Usr of Vahlcloa: Camplde tMS sation bx veMeles used by a sde propndor, partnd, or dMr'mae than 5% owns' ar related person. I/ you prawded vebicles to your anployeet, first ensww the quesfiens m Section C to see d you med en aception to canpldirp fMs section tar tMsse vehicles U) (b) (c) (Q 28 Total business/investment miles driven during the tear Vehtcle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 (Do not include commuting miles -see instructions) 29 Total commuting miles driven during tin year 30 Total oUler personal (noncommuting) miles tlrrven 31 Total miles driven durvg the year Add lines 28 through 30 , Yaa No Yes No Yea No Yes No Yes No Yes No 32 Was the vehicle available for personal use During off duty hours 33 Was the vehicle used primarily by a more Than 5% owner or related person 34 Is another vehicle available for ersonal uses sactlon C - Quaatlons for Employers Who Provlda Vahlclaa for Use by TMIr Employees Answer these questions fo determine i/you meet an exception to completing Seetron B for vehicles usetl by employees who ono not more than 5% owners or related persons 35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, Yos No Dy your employees 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees See instructions for vehicles used by corporate officers, dvectors, or 1 % or more owners 37 Do you treat all use of vehicles by employees as personal uses 38 Do you prorlde more than five vehicles to your employees, obtain information from you employees about the use of the vehicles, and retain the information recervad~ 39 Do you meet the requirements concerning qualified automobile demonstretron uses See instructions Note: I/your answer to 35, 36, 37, 38, or 39 is 'Yes 'you need not compkfe Secfron B Ior the covered vehicles Amortization U) (b) (c) (0 Dwenpoon of cub Dab rnoroabn Arnvoabb Coda AmeAaeon MwYabn tw9ins amount Srrcoon prod v br ea yur pa,unbea 40 Amortization of costs that be ins dun our 1999 tax ear Il Amartizahon of costs that b an before 1999 dl 42 Total. Enter here and on 'Other Deductions' or 'OUer Ex sea' fine of ur return d2 FUZWIY !oiling Onn (1 ) Form 99o Schedule of Contributors Donating #5,000 or 1999 Liras ld More in Money, Securities, or Other Property Statement (Not Open For Public Inspection.) ? Attach to return Name as Shown on Relum Employer Identihcabon Nunber Bridge House, Inc 99-0293418 Page Number 1 Contributor's Name and Address Dascdpllon Data Amount Received Received Hawaii Island United Nay Cash Grant P 0 Box 745 Hilo HI 96721-0745 Various 17,296 State of Hawaii Department of Health Cash Grant 601 Kamokila Blvd Room 360 Kapolei HI 96707 Various 174,097 U S Dept of Housing & Urban Devel Cash Grant 500 Ala Moana Blvd Suite 500 Honolulu HI 96813-4918 Various 50,057 County of Hawaii Cash Grant 25 Aupuni Street, Room 18 Hilo HI 96720 Various 13,370 Child Protection Team of West Hawaii Cash Grant 74-5605 Alapa Street. Bay 5 b 6 Mezzanine Kailua-Kona HI 96740 Various 8,228 t~wnwi sar owisis9 Bridge House,lnc 99.0293418 1 Federal 990 Depreaation Report Regular Tax Activity Form 990 page 2 - 1999 Total cost of goods sold Description In Service Cost Land Bus Yo Type Class Conv Depr Cost of Disposed Basis Sec 179 Listed Mthd Life Year Prior Goods Sold Fu rnitu re 6E u1 merit 10/01/92 3.544 100 00 HACRS HY 388, ~-T 3,544 ~ 10 00 _ 2 217 FurnitureaE ui merit 10/01/93 4,233 100 00 MACRS HY 97 4,233 ~ 6 00 3 340 Furnitu rcaE ui ent 06/01/96 3,138 100 00 MACRS HY 406 3,138 ~ 7 00 1 235, Desk et Printer 08/01/97 396 lobo 00 18, Water 01/01/98 2, 995 lof o 0o HACRS 6 00 HY 299 2,995 ~ l0 00 150, "~La To Com uter 01/01/98 1,042 loo 00 174 1,042 ~ 6 00 87 Comluter 5 stem 04/01/98 1,686 loo 00 281 1,686 ~ 6.00 70 Kirkland Stove 11/01/99 625 loo 0o MACRS 63 625 ~ 5.00 _ Pentium III Com uter 10/01/99 1,978 100 0o MACRS 297 1,978 ~ 5 00 _ Laser etPrlnter 10/01/99 520 ~lfoo~o0 HACRS 78 Van 02/01/99 8,439 Iol 0 00 5 00 8,439 ~ 5 00 8 439 Van 10/01/98 27,782 loo 00 2 778. 27,782 ~ l0 00 2 088 Ram s 02/01/99 2,096 loo 00 210 2,096 ~ 10 00 86 ides for kitchen 03/27/00 777, loo 0o HACRS 28 777 ~ 5 00 Total 5 9 , 2 51 5 , 137 Federal 990 Depreciation Report Altematlve Minimum Tax Activity Form 990 page 2 - 1999 Passive adjustment Passive preference Description Real Passive AMT Cost AMT Life AMT Depr AMT AdJ AMT Basis AMT Mthd AMT Prior AMT Prcf Furniture 8 EQUtpeent Q Q 3, 544 Furniture tr Et1ulpTent ~ ~ 4, 233 Bridge House,lnc 99.0293418 2 Federal 990 Depreciation Report Continued Altamatlva Minimum Tax Activity Form 990 page 2 - 1999 Passive adjustment Passive preference Descnptian Real Passive AMT Cost AMT Life AMT Depr AMT AdJ AM7 Basis AMT Mthd AMT Pnor AMT Prat Furniture s equipment ~ Q 3.138 Desklet Printer 0 Q 396 Water Tank Q 0 2,995 Lap Top Computer Q Q 1,042 Computer System 0 0 1,686 Kirkland Stove Q Q 625 Pent1 um III Computer ~ ~ 1 , 978 Laser7et Printer Q Q 520 Van Q 0 8,439 Van Q Q 27,782 Ramps 0 0 2,096 Tiles for kitchen 0 0 777 Total 59, 251 990, 990-T and 990-PF Information Worksheet 1999 Part I - IdarNfylrtq Infotmaflon Employer ldenh}Katton Number 99-0293418 Name Brtdge House, Inc Address P 0 Box 2489 RoomlSuite City Kailua-Kona State HI ZIP Code 96745-2489 Telephone Number (808) 322-3305 Extension 2/15/01 Fax E-Mad Adtlress Part II -Typa of Ratum X Check the boz to prepare Form 990 Check this box to prepare Form 990-PF Check this box to prepare Form 990-T only (see tax help to prepare 990-T with 990 ar 990-pF) Part III -Typa of Oryaniratbn X 501(c) Corporation 3 (subsection number) 220(d) Trust 501(c) That _ (subsection number) 408A Trust 4947(a)(1) Trusf 529(a) Corporahon 408 Trust 529(a) Trtat 401(a) That 530(a) Trust Other (dascrdx) Part IV - Ta: Year Information Calendar year X Fiscal year - Entling month 6 Stan year - Bepinninq data Entling date Part V -1999 Eatlmabd Tuaa Pald Q Check this box rt the organization is a pnwte fotndabon Fam 990 T Forth 990-PF Due Actual Amount Actual Amatnt Voucher number Date Date Paid Paid Date Paid Paid 1 10/15/99 2 12/15/99 3 03/15/00 4 06/15/00 OwrpaymaM from Drior year Actual Amount Actual Amotstt Addmonal PaymeMS Date Paid Paid Date Paid Paid 1 2 3 4 Part VI - Inlormatlon for CIIaM Latter Form 990 Farm 990-PF Forth 990•T Extended Due Data ~ Letter Salutation ~ Barbara Check tfxs box d ttn argarnzatan is ervolled m the EkctronK Fetleral Tax Payment System (EFfPS) rzeva,oi sox or~»s Bridge House,lnc 99.0293418 1 Federal 990 Depreclatlon Report Regular Tax Activity Form 990 All Returns - 1999 Total cost of goods sold Description In Service Cost Land Bus Yo Type Class Conv Depr Cost of Disposed Basis Sec 179 Listed Mthd Llfe Year Pnar Goods Sold FormFOrm 9~,L FurnitureiE ui ent 10/01/92 3.544 100 00 MACRS HY 388. 3,544 II 10.00 2 217 FurnitureiE ui ~ment 10/01/93 4,233. l00 00 MACRS HY 97 4,233 II 6.00 3 340 ••'FurnitureiE u~ merit 06/01/96 3,138 100 00 MACRS HY 406 3,138 ~ 7.00 1 235 Desk et Printer 08/01/97 396 loo 00 18. 396 ~ 6,00 55. Water Tank 01/01/98 2,995 loo oo MACRS HY 299. 2,995 ~ l0 00 150 La To Com uter 01/01/98 1,042 l00 00 174 1,042 II 6 00 87 Com uter S stem 04/01/98 1,686 lobo 00 281 Kirkland Stove 11/01/99 1 625 solo 0o MACRS 6 00 83. 625 ~ 5.00 _ veneium Ill com uter 10/01/99 1, 978 100 00 MACRS Z97 1,978 ~ 5 00 _ Laser et Printer 10/01/99 520 100 0o MACRS 78 520 ~ 5 00 _ Van 02/01/99 8,439 loo 00 8,439 ~ 5 00 8,439 Van 10/01/98 27,782 loo 00 2,778 27,782 ~ 10 00 2 088 Ram 5 02/01/99 2,096 loo Oo 210 2,096 ~ 10 00 86 Ttles for kttthen 03/27/00 777 loo 00 MACRS 28 ~r 777 ~ 5 00 _ Total 59, 251 5, 137 5~- Federa1990 DepreaaUon Report Altematlve Mlnlmum Tax Achvlty Form 990 All Returns - 1999 Passive adjustment Passive preference Descrlp6on Real Passive AMT Cost AMT Life AMT Depr AMT AdJ AMT Basis AMT Mthd AMT Prior AMT Pnf Form 990 Q 0 Badge House, Inc 99.0293418 2 Federal 990 Depreciation Report Continued AltemaTlvs Minimum Tax Actrvtry Form 990 All Returns - 1999 Passive adjustment Passive preference Descrip0on Real Passive AMT Cost AMT Life AMT Depr AMT AdJ AMT Basis AMT Mthd AMT Pnor AMT Prcf Furniture 8 Equipment Q ~ 3,544 Furn1 [ure&Equlpment Q a 4,233 Furniture & Equipment ~ ~ 3, 138 - Desktet Printer 0 0 396 Water Tank 0 Q 2,995 Lea Top Computer 0 0 1,042 Computer SYStem 0 Q 1,686 Kirkland Stove 0 0 625 Pentt um III Computer ~ ~ 1,978 Lasertet Printer Q 0 520 Van 0 0 8,439 Van 0 0 27,782 Ramps 0 0 2,096 i Tiles for kitchen 0 0 777 Total 59.251 Bndge House,lnc 99-0293418 1 Form 990, Page 2, Part II, Line 43 Other Expenses Stmt U?) B) (C) Total Program Management Fundraising Other expenses (itemize) services and neral Insurance 9,123 8,211 912 0 Amorttzatton 3,855 3.469. 386 0 Professional Fees 9,583 6,056 _ 3,527 0 Provisions 23.442 23,442 0. 0 Uncollecttble accounts 26,745 26,745 0 0 Utilities 9,843 8,859 984 0. Gas and Oil 7,103 7,103 0. 0 Repot rs and Maintenance 6,813 6,813 0 0. Total 96,507 90,698 5,809 0 Forrn 990, Page 3, Part IV, Line 56 Investments -Other Statement Beginning End of Lins 56 -Investments -Other: of Yaar Yaar Investment in Bridge House Nursery, Inc. 52,734. 59,763 Total 52,734 59,763 Form 990, Page 3, Part IV, Lines 57a & 57b Land, Buildings and Equipment Statement CosUOther Accumulated Book Value Basis Depreciation Furniture and Equipment 12,589 3,974 8.615 vehicles 36,221. 13,305 22,916 Leasehold Improvements 2,889. 323 2,566 Total 51,699 17,602 34,097 Fonn 990, Page 3, Part IV, Lme 65 Other Liabllitlss Statement Beginning End of Line 65 -Other Liabilities: of Year Year Obligation Under Capital Lease 23,978 20,408 Total 23, 978 20, 408 Badge House,lnc. 99.0293418 2 Form 990, Page 4, Part V lJst of Offlcsrs, Etc. Statement W) (B) (C) (D) Name and address T~tie and Compensation Contributions Expense average hours per (If not paid, to employee account week devoted enter -0-) benefit plans and other to position and deferred allowances compensation Robert Trfantos, Esq 75-1090 Xenry St Ste 3091I~11u~-Kan Di rector 1 0 0 0 Cheryl Tauou PO box 2419 Kallua•KOns XI 96745 Exec Di r 40 43, 021 0 0. Total 43, 021. 0. 0 Bridge Nouse,lnc 99-0293418 3 Supportlng Statement of: Form 990 p 1/Ltne 20 Description Amount ' Valuation adtustment to Nursery Investment 6.832 Total 6, 832 Form 2758 Application for Extension of Time to File G,,a Ixealw t~~.» 191Q Certain E~ixccise, Income, Information, and Other RetYms apl+t fa..t:lt ..b,m. Pieces type or fw"'e tyaws.w..ea.,wa.r.. ~'"~irde 8rld a House Inc. 99-0293418 afw copy by ra.nea, atneel, ad faeoen > a..b rr,llra to P o bm ,..r...f eW ,st aeYrelal b .coat aldrw) the dw Gate P . 0 . Box 2489 fef fll~rg yOUr Town > PaY Clefs, ebb, rtl DP Cab Fa . F '"str'l~OflS Katlua-Kona HI 96745-2489 Nob: Caporofe mcarrro fax return llbrs must use Fafsrr 7qM to request ah extensxxl o! fens fo Ille Parfnersleps, REM/Cs, and trusts must use farm f7af fo requmf an extension o1 furls ro eie Fwm 1055, 1 Qti6, w IOd 1 1 I request an sxtsnsfan of tune untll Feb 15 _ _ _ , 2001 , to fits (thedc only one) Ftxm 706-GS(D) Form 990.7 (Sec 401(a) w 408(s) bust) Form 1120•fJD (Sec 4951 taxes) Frxm 8612 Form 706-GS(T) Fonn 990.7 (tlwt otlfer than above) Fonn 3520-A Form 8613 Form 990 or 990•EZ Form 1041 (estate) (see lrntrucbons) Fonn 4720 Form 8725 Form 990-BL Fonn 1041•A Fonn 5227 Form 8804 Form 990-PF Fonn 1042 Fonn 6069 Form 8831 It the organlzatlon does not have an office or place of bfuxtsss m the I,)nRed Stabs, check this box ? 2a For calendar year _ _ _ , w other tax year begmfrg Jul 1 _ _ _ _ 1999_ and endxq Jun _3_0 _ _ 2000 . b If this tax year Is for less than 12 months, t'hsdc reason: Q Inrtlal retun D Flrtal realmChange m a a tlng paria 3 Has an extermon of tine to fits been pevlotuly panted for this tax years Yes X YJo a sutaindenilwlryyauneedtlattdsntlon The annual audit is not yet comQlete._________________ - Addit~onal_time ~s needed to prepare amore correlate and accurate tax return________ 5¦ I1 this fo"n Is for Fonn 706-GS(D) 706-GS(f), 990-BL, 990-PF, 990.7, 1041 (estate), 1042, 1120•ND, 4720, 6069, 8612, 8613, 8725, 8804, or ~1, enter the bnbtlve tax, less any norveflrfd le cretlfts. See inatrteCtlorss S b I1 this form Is fw Form 990-PF, 990-T, 1041 (estate), 1042, w 8804, enter any reftxWable veNts and estimated tax payments made Irtclutle any poor year overpayment allowed as a wedlt f e Balance due. Subtract has 5b hom Ilne 5a Include your payment vnth this form, or deposit with FTD couponlfrsquxed Seelnatrucbora f Signature and VatitleaUon Undr PeneiOS of Oer,nY• I deden art I have enmerd bs b,m, nbWAnp atCe,npenyeq eehe4J~ end .bbnrnb, .red b ate Met of ay lnewfrdae erd lit, d R Oue, NrreeC eeW a.lipbb: red Mt I enl tua,er¢al b pngtn a,. tarn a,an.le. ? CPt,,,:,t,: Q,,;,,~,...Q~.,.,6t, TXN ? ePA t>~. ? tt-es-oo FIN OrfgirW and One Copy. The RS wIM wMthr or red your appllcatlon Is approved end will retvn 1M copy. NtMld b Applfcard - To be wmpleMd by tlta RS ? We Have approved yotr apphcstlon. Please attach mfs form to your realm l~_ll We Hwe Not approved yotr aapppplKatlon However, we have gaoled a 10•day grace perod hom the later of the dab shown below w the due date of yotr realm pncludug any error extensions) This gate period Is considered to bs a valid exterufon of hme for electloru otherwise required to be made on a timely filed return Please attach this form to your return We Have Not appproved your appllcabon After considenng Ne reasons stated In Item 4, we cannot gent yota request for en extension of Ome to hie We are not panting the 10•day grace period We carrot consider your appllcatlon because It was filed after the due date of the ret1JR1 }or wFIIClt an axbnaon was requested Other ar t]I.etx n.r If Yeii went a coq of tho tam m b ratllrliad m M iddroa atlrr Ihan Ihd shwa atxse, pMw tnbr tlM addrw to Welch tla uq shouts b sal N.n. w«a. John D Carbonaro CPA A P.C Typ. fYenM, arw, .red Mean > 7r{r Netter (a P O le. ,ureic, d naA n rot delvawe b •tnet aldnee) PNnt 1043 Makawao Ave. At205 Gtr Town a tbet Oefu, 7bb, nttl aP Gent Fa. Feraet Adb.ee, Sr Imbueeom Makawao HI 96768 BM For Paperwork Radta:tlon Act fbtlu, see sepanta Instructlorts. FlFaxal Ilnews Form 2738 (Rev 6.98) ~ THIS CERTIFICATE IS ISSUED AS A MATTER OF INFOAMATION Jaakias G Compaay, Iae . ONLY ANO CONFERS NO RIGHTS UPON THE CERTIFCATE Ilia Plasa, Suit• 600 HOLDER. THIS CERTIFCATE GOES NOT AMEND. EXTEND OR Naia Straat ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. tku ffi 96793 ~ INSURERS AFFORDING COVERAGE st1808-244-8700 )ass808-242-1412 INeIW®IA. Nastchastar lira 2asuranc• Co. INewres s• Brid4a Sousa, Inc. walRasc 8ailuietoaa 96745 INauasRD. i INeURp1 E CAGES suuu of INNeIANCe usTSO eLLOw ISAV[ eeW ISeI~ ro TS(e INalll® NA11®AeOVE roR TNi POL1C'I P91gD INDe'ars~. NOTM7TNSTANDIN(' iOUIISOIiI? Telal OR CaSID(TION OP ANY CDNSRACT OR OfSla1 DOLTJ1IBdT wllN RFleCf 70 5M1101 TSIO CORa1Pan wT IJSIJ® OR 9STAel TM! DItIlA11C(AfPORgO w TSIe PplJt7[ D[eCSeeiO N.IB/ N St1LIeCTTO Au TNe TERMa ~__xgNe ASN CONDITgNi OP RIGS fs AcDR[aATe WaTS 9101MS wr HAVE ea a®uc®w rluo cLAr~ TYP[Of INaIWCe POLIO NUAI[ER OA M DA MLYDDMVI LWRS NERAL LIM[JTY ~ EACH OCCURRBICE 51000000 coW1ERC1ALaeN91ALL1ANJTY Q~645112 10/07/01 10/07/02 fxveauusea~Yall.u.l :50000 CLAa1[A41De $ OCCUR M®OfP (bl'ar o~gR,l S JrQOQ PENSONALa ADV INJURY 11000000 GENEML xcREwrE f 2000000 N'L AGDR[WTE LWIT APPLIES PER PRODUCTS-counoP ACG s 1000000 P~pUCY'-• ~ LCC TOMO[RELWILITY ! COMeYND SWGLE LIMIT AMY AUTO lFa >ImCMlll 1 .u.l OwNED AUTOS aoolly INUIRV SCNEWLFD AUTOS lP~, otbAl 1 _ HIRED AUTOS SOOiY INJURY 1 NONON7IFD WTOS ~ i<Pw ~~1 _ ~ PROPERTY OAwGE S (Pra®nul WAGELWNTY AUTO ONLY•EA ACCIDENT 5 ANr AUro aTNER THAN EA ACC s AuroaNLr Acc s csss LIAEOlTY _ EACH occuRRe(cE s OCCUR CLAIW MADE AOGItEWTE S _ f OEOUCTIeLE S DETENTION S 5 ORrtEP3 COMPENSATION AND -4-'~v ~,7• TOM NR Wtia+ERSwsxJTv EL E1CN ACCSJEM 5 S LOLSEASE•EA EMPWYEES ` E L CIS'eASE • PaLIC/ l~M1T TNER i pT1ON Of OPERATgNi1LOGnON[NEiYCIESIE%CLUSIOW WOFO BY ENOORSFIIENT/SPECM~ PROVISgNS :i~icate Solder is Hamad Additioaal Iasurad tFICATE HOLDER Y AaamDNA~,NSUR[D N[uRERLET-ER CANCELI.LTION CO)'QI.17aT s,euLO ANr of *N[ A[ova oeec"eeto POUCJl7 st purse ~ wage TNe TJIMIUigN an rNauoP T7N LvuNa IMeUR01 Yn.L Eic[AVOR ro wIL ] 0 aAri wIRInN NOTIti ro TSN eERnPle"n NOSDM NANO ro TIN La'T [UT PAILUR[ ro o0 m anASJ. County o! IIaraii ~MPaaawawwrgnaRLNewTraf.NrwwuPaNnNINxa~wilnxxNno~ Dapareslaat o! tinane• 25 asapuni SGraae, is 118 R~~"TN[i Rl.lo 8S 967:0-6248 AMTNOROpaefRneNrArn[ _ _ Hlazaarae R. JaakSaa '0 :SS 17!971 ACCRO CORPORATION 1965 Bnid~s House, Inc. P.O.Boar 21tl~ KaAw-Kowa. HI >i67~6 Prianc~ f/r-s?I~JSe6~FYr. tes~sts•osor Fetxuary 8, 2001 Mr. Gary Tom County of Hawaii Dept of finance 25 Aupuni St, Room 118 Hilo, Hawaii 96720252 Dear Mr. Tom: Enclosed are the Bridge House Amides of Incorporation and draft of our most recent audited finarxial statarnerrt. The Board hays'read the draft of the audit and approved it without any changes. We are waiting for the final audited statements for the auditor, which will be identical to thQ draft. Thank you for your assistance m this matter. If you have any questions please call me at 322305. Sincerely, r--- Cheryl T ' Executive Director bly.ll~... netlrw ~ tlw wMf. der..rai.r. a G~~wbrdl~~,MRK~1~1 ,l/b~Y~~~MMlydw/1~/M~ ,wi? ~ t~w.r was FiNnp Fria: 170.00 DOMESTIC NONPROflT OWreneretl Cheek 17.30 Name ~hanga AmNWmant STATE OF HAWAII DEPARTMENT OF COMMERCfi AND CONSUMF31 AFFAIRS EXPEDITED fD ~ REVIEW rtar.l0 Aaerae P. o. Bm ao. t~ ?iawa. asa,o ARTICLES OF AMENDMENT TO CHANGE CORPORATE NAME rr'~ (~~1~1i~ (Sectlon 4156-38, Hawaii Revised Statutes) ~flr~ ~ S~P151~ '~70}r The urWsrmgnsd, duly authonzsd oHteers of the corporation submitting these Arire;as of Amendment. certify as folk„va: ' t . The present name of the eorporallon Is: "w U Z KONA HALFWAY HOUSE, INC. 2 Ths corporation's name Is charged to' WEST HAWAII OPTIONS FOR LIVING, INC. / 3 K adoption of the amendment was by the members, complete the tollowing: i A A meeting of the mempsrs was held on ' in4iM o.r w..l A gaxum was prosrxN al Ilw nwehnp, ,u~d al toast Iwo-thnds ul Ihu mumlxne V~uaunl vl Ihu rnutrtirg v.ao.l 1„ wrkya the brrMMmwol UH B The amerldmsM was adopted by Ute wntten consent of all of the members of the corporation entitbd to vote 4 If atloptlon of the amendment wee by the board of dinetors, complete the following: A A meetrng of Ute directors wes field an - August 13 199 2 ' (Ablllll Oar rwl A quorum was present at the meeting, and a malonty of the dueclors m otllce voted to adopt the amendment OR N/A $ M the amendment was adapted by the Board of Directors, check tins of the folbwug: ( ]Ths Corporelbn ties no members. OR There tie no members entitbd to vote. ~ We certlly under the parWtres of X158-i58, Hawaii Rewsed Statutes, that we have read the above statsmsnts, and that sle acme w true and correct Witrlses ov tw,ds rtlis ch deg of September , t9 92 Jose h Fa undes, III, Vice-Pres. John McClure, Treasurer ' .into ww. a na.1 ~ / Rr~" wnr a rr•1 rsanwi+ a once«1 (See Reverse Sltle For MaMUetksna) NpwelarWabN fYMp Fes taee00 ~Or DOMESTIC NONPROFIT SubaW OrglnM ane One Tnr Copy STATE OF HAWAII D DEPARTMENT Of COMMERCE AND CONEUMEII AFFAtitB .aeMeee ~s..°."'"°" i .Ali 1 S~ MrYrp Addiest: P O. Boa 10, NeneYe+. Flewtl asat0 s ,y. ARTICLES OF AMENDMENT TO CHANGE CORPORA (Section 41tt8-38. Flawaa Revised Statutes) The urlderalgrrd, duly auCrnxed oMkws of the twrporatlon auDmlttittg tl+sas Articles of Amendment. csrtiy as fdbws: t The present nano of the corporation ~s NEST E7INAII OP?IONS FOR LIOI]lTG, ILIAC. 2 The corporaton's name ~s changed to BRIDGE SOQSB, ZPC. 3 M adoptlon of the amendment was by tl?e members, tzrrtple6e the following; A A mestirp of the members was held an PA7nIh aY Mwl A quorum was prsaenl al the mesang, and u least two-tMroa of the members present at the meeting voted to adopt the amendment OR B The amslWmenl was adopted by ihs wntlen consent of all of the members of the corporation entitled Io vote. 4 N adoptlon of the amendment was by the board of dkectars, compNq the tolbwlrtg: A A mesurq of the Wrectors wu held on M Av /99te pMn w.r) A quorum was present at the meeting, and a mapny of uIS dlreetors In office voted ro adopt the amendment 'OR B. The amendment was adopted Dy tM written consent of all of the Board d dreclon 5. K the amerWnrnt was adopted by the Board of Dvecrors, check err d ur foltowing: [ 1 The corporation has ro members. OR ~ There are ra members entitled ro vor. We certiy urMer nr penalties a a15&ISS, Hawes Relnesd Statulse, that ws nave read the above statements, and that the same w titr and eorreet. YYdnsas our harWs t11Ia _L~.day of Jf~ AJE_ . 19~ Ka,fA. fu~rL PPrz rll,¢Air rAwr Baal ffYp~al/w ry _ ~ rs~v~ sore t w . Re11Mae SIOe Lvov InstruCtlOns1 F ma M ~M~ I ~ INSTRUCTIONS j A~tanhtjwtt bs lypevwNten a preNed in 81ack Ink. and must bs krplble. All s~giWura more be ~n Black ~ ktrsyn t W aubmMted Nnih the doctiansnt. Checks are b be payabN b the DEPARTMENT OF COMMERCE , for t11e exact arrant. Flirq fep an not rekxWabN There u a 17.50 charge on all t. Stab the present name of tM axporabon. 2. State tta new name of tlis eorporatlon. 3 If vobnp was dons by the member oompMOe roquested intarmation. Uns out enppNrabN staternern. ~ M vobnp was dons t1y the bond of dNecbra, complete requesbd mfarmatlon. Wte out knppkcabN statement 5 Compleu this Nns only M votlna was done by the board of dinetars. 8 Must bs stpned and csrbfxid by two ndrvxiwla who are corporals offleers. ~......~a: ~awncatr cr.ller eerr. a snares s+e pa.:w r. me D!:.e.uq Ceeet Brae srATl,~/ wweaa o~a+Rnsn a aa~s~s ero ao~llr¦~ nwaaas e.rll~e ~.rarlaa ow. one ~w,.uu.. rem aegis r. a ~ r. ~nerr nr.e. wao ARTiCL~S Ols INCORPORATION (~CtlOn 413B~i4, FlawsY R4viMd SbiWMs? 0 lS ~ ~ ~ l5 D The unOrgmL daerrq b loon a npprolk esporaaon ulcer sr lease d sle 3~s d ?lerer, oerefy n loaowe l Ths name d pls toippason ehea be: Rona Halfway House , Inc . n TM amen d sle eaparason'e e+isal olaee ~e: P . 0. Box 2837 , Railua-Kona, Hawaii 96745 In The p«~ d rte elraaon rs perpeanL N• o~..w.~ ~ ~ na puoaeelal tar wlerJl aM ealporason K argaleasa: (y To develop, alaiatsia and operate a residential institution for recovering alcoholics, their traatm~nt and reintegration into society as productive citisens. (b) The relleeeepn d any a a. i.*r aeeNres wlrrri nollplaM eolporasale nley be a+oorpore.o uwr chepnr ass. own 1Mrwee tirsea Beeson 2 Ms wt hAwess d sew puposes. s» mlpensoll slay nacre a• soars. rgrar. prMlsgse ens ~nrmrreee, ens rlap a allalast 4 r d ar asbasw mnlense or rnlpoees by len open oorporasou d ers nerre. alw 7flea be eurleat ens new all eM seaiMn d sA geneRl lane wd1 reepeot d COlpolasola v ~ awww ~w., rsf awr~r~ rra+r.. v TM nunbar d aweten aossasAYq ar nrlsl 8raw~a d OYaetors r 9 T!n labw~p are an Arses ens w~ea mat sti~aaa~ d ar iaYal daosw sea aYeetarc Nick iiright - Prea./Diractos T3-4340 Aaraama. Kailas-Cons. HI 96740 Joseph FaBuudee, III - V-P/Diractos 73-1009 Ahulaai St.. Lsilua-Cons. HI 96740 C. B. Jndd -Sac./Director Hualalai Colony. Holualoa. HI 96125 John McClure - Treas./Director 78-6831 Alii Dr.. Suite 134-A. iailua-Loos. SI 31r iihaston -Director 75-680 Bualalai Road. Lailua-Lone. HI 96740 Jill Lidner -Director 75-6016 ~lii Dr.. Ho. 110. Kailas-Long. HI 96740 Candy Beverly -Director 73-4338 Haiku Place. Lailua-ICooa. BI 96740 Marlie Tanoai -Director &8 1, Boz 519. Honaunau. HI 96726 Lathy Ari.Bht -Director 73-4340 Araama. Lailua-Long. HI 96740 / N (z 1 T1r eorp«aim nas masi0na [ 1 The eorporsasn fns ro nwibees. w Tlr cap«saon a nowpaAt n nrtaw ana afwl rwt suwerras «~sw anres d anek No dwdrWS a+na o. pad and ro pert of ar nests « great d ab arp«~on a11r1 b. dlataarsa b as mrnoses. areaora. « alders. acspt tar MraCM awr~r rarlaarea b ar erparasorr. and rrapt rrse aquaram d ks pnopany n Casa d eorp«re abtnkaon. Mr! Cff.t`~ trC+~P aw pa+~laea d Jamron 41tti•laB, MMe~ llnrasd Blasass. are we Acre red are above eetanwtts rr0 ant ar terse w sue errs aoneet tt IMtanas oir limas sae dq d 10~ . IY~Q,~. Nick Wsi6ht Joee h F uadee. III r BRIDGB HOUSB, INC. (A HawaH Non-Profit Corporadon) AUDITED COMBINED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2000 FOR DISCUSSION PURPOSES ONLY TABLE OF CONTENTS Page Independent Auditor's Report on the Combined Financial Statements 1 Financial Statements: Statement of Financial Position 2 Statement of Activity 4 Statement of Functional Expenses 5 Statement of Changes in Net Assets 6 Statement of Cash Flows 7 Notes to the Financial Statements 8 FOR DISCUSSIOY PUZPO~TS OiVLY Dlttriet PA. Bax 2350 Im Anp1a1, Ca1H. 90033 Dirretar ~y~ P~raon to L- BiIR&~f ' WEST B71W71II OPTIONS FOR LIVING II~iC C/O NICK B WttIGB'1' T~~ 313-894-2336 P O BOY 2489 1C11IIIAl 1C0lfA, ffi 96745-2489 FMIa~Fl~pgrto. EO(01O693) 11PRIL 8, 1993 RE: WEST AAii0?II OPTIONS FOR LIVING INC 99-0293418 • Gentleman: This is in response to your request for a determination letter of the above-named organization. A review of our records indicates that the above-named , organization waa recognized to be exempt from Federal income tax in April 1992, as an organization described in Internal Ravenua Code section 5O1(c)(3). It is further classified as an arganizatian 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)(iii). This latter is to verify your exempt status, and the Pact that the determination letter issued in April 1992 continues to be in effect. If you are in need of further assistance, please feel free to contact our office at the above address or telephone number. Sin`c~er~ly, 7d' yy CL~ L Barragan Disclosure Assistant r i .fit A1C Vr nw~wn ' Ot~PARTletetTOp COWt~Ctia A!W ~f/aBI AtiFAlli3 REd1EW ,ma ae.b. stte.t yrfrq AOdtttss: P. Q 8ai+0. HoWYaf4 hl~eiz 9CCf0 AATiCLES aF AAAENGNENT Ti0 CHANGE CARPaRATE NAME 1 , i i`:U! ~~O" 4tsB3s. Nzwan Rtaviaed Sta~ossl r-~ `...r ~'~..f.5anmsN rar z^,,..r T?» un0ersicpled, dWy at~tt,or,ssd otHcara of Ifte ~alporaGOn nibrtutang these Aromas of AmenOThent. ~N as rotfows The Present narttrat a,e eorparauon Is L / "a ~ Il 7i ItONA ver :G7AY HaQSc, INC. The etxporssbn's name Is etungeC to: WEST HAWAII OPT=ONS FQR LIVING, INC. ~ t! adopttort at tree artgffdntertt was by the members. camplea tt,e lollpwut¢ A. A mseenq of Itte members ras hsw on owns Oar teen A Ipaxurn r.ne pruswN at Utr rnoesrMt, .aaW .ri lw;t IwW1erUS ut Uw rnunuws yrusta+r rl Uw rnuwvr) •wNrl b. r•/IfMM Ih~ a1n~Il11TMN ' ur+ 4. The amshdrhem was adopted by the wnaert ctuatt of au of «te members of the cbrpcraoon attuned :o • votO. a. It aoopdan at t2te amendment was by the board of atretaors, samplers the rollowtn¢ A msemg of the CtreGOrs was hslb an Attstus t L 3 i 992 . t~ Cat. rwr A Qugrwt wu present az the maeang, artb a matonty of the atracars .n amts vateG :a atwpt ;ne altertdn,ent. ON -~-~s~.w+stftnest..est te~gtuo Gtr h+~"`=r~o:snt of i.,.. ,w- oo--~.,.~^:.w... ~l/A i tt ttte amendtttertt wee adopnd by the 2oard of 174ae~rs. c:teett one of the tolbwrt¢ ( I The earporseon has no members OF I There are na members enbttad tawte. ' Me CereN/ IY16N fhe pennuei Of at~B.i:$ Hewyl Rsweo Sti6Wi that we hide reed Vie aotrle SOtelnenR. area Ufa[ M Sine ale trees an4 CatreC Mttrnpa our haf1Q= nfi '9eh oay of Seot:eteoer 14 ? Z :osenh =att;ttades. II- Vice-2-t:s. ~uFr_ h!cC1~t== 'Ct;~astc,-~ ' - ~\(ltrnle w~r.~Nw ~ Irt~per.rnw•~:wt Maig A00tere P.0. 9s su, FIOr1tiYi4 Mrarfa 9aaf0 ~~9 .N• ARTICLES OF AlMENDMENT TO C}~(ANGE CORPORA ~ ~iis (S~COOn 4138.38. Flawrai Rwisad StrmtON) ' ~ The t+nusl¢+n0. Qtaty atrlttontOd ot'llears of tt1• carporaUOrt smmttln4 tttea ArOCea of AmerldmenC cemh at toYOwa: I . The pteearlt nartte Of the Cdfpdraban ~s: 1iEST t;~ttsrr OPTI08fS P'OB LIPLIfAG, IHC. " 2 The corporaoort's name ,s cttartged to: BRIDGH HOIISEr INC. 2. It adopddn of the amendment rues by tM members. complete ttte fOlbwm¢ A. A meefYlg Of the members was haW on fAb,an Cs Yw1 A quorum was present at the meeting, am at Isast Mro-UUrds of the mempsrs present at the meeting voted tb adopt the amertoment. OR B. The amendment was adopted by Ihs wnden consent of aY of Uts members of tfta corporation ensued to vote. If adoptbn of me amendment was by the board of dlreCLDra. eomploto the fotbwut¢ A. A meeting of tfte ctrerdrs was heat on /YI l~`.J ~e. l ~4(v (Abwn O~r~ rw) A ttuanlm wi4 present a< the meeting, artd 3 matortty Of the dueC.ors in OltlCe voted .d a60at the amendmeni OR 8~ fie amarldment was adopett0 by the wrtnen Cortser[t of ae of the BOVd of Direc~ors. If the amanarnem was adopted by ttte Board of C'veeaors, chetlrone of the touovnng: ( J The carporauon has no memtters. OR There are no members ermuad to van. Vs cerdfy under the pertaWa of at:B-158, Hawa geMSed SW~tea, that we htwe rsaC un above snoaments, and the[ >te samd an trw artd eortect. rertesa our Hanes u>.a ~,~daY ~ ~f, AlF . t9~ p ~ &wr !r rwr /"~/'7 LS i/ `jam/ isw~.• a rrevsr ~ ~r!ervrrr~ Nevetse Sld~ fei Insatretldrts f ~ ,M~ ' B Y-LAW S OF BRIDGE HOUSE, INC. ANon-Profit Corporatlon ARTICLE I 'PIfRPOSES AND NONPROFlT CHARACTER SECTION 1.1 •.Purposp. The purpose or mission of the corporation shall be speptkaYy set forth in Article IV of the ARicles of Incorporatbn. SECTION 1.2 Nonprofit Character. The corporation shall be a nonprofit corporaticn, and any net income ar earnings whictt may be derived from fts operations, in pursuance of the purposes of the corporation, shall not be distnbuted to any member, director, or ofRcer of the corporation, or any private individual but shall be used to promote the purposes of the corporation. ARTICLE it SECTION 2.1 Prinelpal Offlce. The principal office of the corporation shall be maintained at such place within the State of Hawaii, and the corporation may have other offices within or without the State of Hawaii, as the Board of Directors shalt determine. SECTION 2.2 Place of Meeting. All meetlngs of the Board of Directors shalt be held at the principal office of the corporation, unkaa some other place is stated in the call. Any meeting, regular or special, of the Board of Directors may be held by conference telephone or similar communication equipment. so long as all directors participating in the meeting can hear one another, and all such directors shall be deemed to be present in person at the meeting. ARTICLE 111 SECTION 3.1 Msmf~ers Defined. Every individual, business, chapter, foundation, and corporation who makes any contribution (financial, services or supplies) to or for the benefit of this corporation or who receives services from this corporation shall automatically, upon making such contribution, or receiving such services, become a member of this corporation and remain a member until the completion date of the next annual meeting. In addition, each member of the Board of Directors shall automatically upon his. her election, become a member of the corporation and remain a member of the corporation during his/her term of office. SECTION 32 Quorum. At any meeting of the corporate membership, of which due notice shall have been given, the members present shall constitute a quorum for all purposes. 1 NevnW 7/1U94 SECTION 32 AAember~ Voting Rtghb. Each member shall be entitled to one vote. Members may not vote by proxy, and shall only vote ff in attendance at a meeting. SECTION 3.3 Other Rights. No member shall have any right, title or interest, legal or otherwise, in or to the corporate property or in or to any glib, conMbutlons to this corporation. SECTION 3.4 Annual Meetlng. Members shall be invited to attend the annual meeting and at each annual meetlng, the members shall elect directors, receive the reports of the Board of Directors and the Executlve Director, and transact such other business as majr properly come beforo them. ARTICLE IV J~OARD OF DIRECTORS Section 4.1 Election. There shall be a Board of Directors of the corporaion, to consist of not less than three (3) members..The number of the directors for the ensuing year shah be fixed by the membership at the annual meet~g to hold office until the next annual meeting and thereafter until their successors shall be duly ebcted subject to eariier terminatlan by removal or resignation. Within the foregoing limitation as to the minimum number, the number of directors may be decreased or increased by ballot of the membership at any special meeting and, in case the number is increased, the addltionel directors shall be elected by ballot of the membership as if elected at an annual meeting. The qualification for board membership shall be the interest and ability to suppgrt and further the interests of the organization. In addition Board membership shay reflect the interests of the various communitles within West Hawaii. Notwithstanding the foregoing, the Board shall be elected in terms designed to stagger the tenure of members of the Board. In no event shall any Board member serve far more than the equivalent of 2 consecutive 3 year terms. Section 42 Annual meeting. At the annual meeting of the corporation, the Board of Directors shall be elected by the members and the Board shall elect the officers of the corporation for the ensuing year. Section 4.3 Removal. Any director may be removed from office without cause by the afflnnative vote of a majority of the directors in office at any meetlng called for such purpose. The Board of Directors may at any time, but for cause only, remove from office or discharge from employment any officer, subordinate officer, agent, or employee appointed by it or by any person under authority delegated by it Sector 4.4 Vacancies. In case of any vacancy occurring in the Board of Directors between annual meetings, through death, resignation, disqualiflc:atlon, removal or other cause other than temporary illness, the directors remaining. although less than a majority of them, may appoint a successor or successors to fill the vacancy or vacancies so occurring for the unexpired term or terms thereof, reapscwr~ely. The Board of Directors may elect a suaressar for any officer whose office becomes vacant for any of the foregoing reasons. 2 Rwrw~d 711 ~Na Section 4.5 Permanent Vagndes. If any permanent vacancy shall occur in the Board of Directors through dealtt, resignation, removal, ar other cause, the remaining directors. try the affirmative vote of a majority of all remaining members of the Board. may eNct a suocesaor dkector to hold o(Ifoes for the unexpired portlort of the term of the director whole place shah be vacant. Section 4.8 T~nnporary Vacancies, Substitute Directors. If any temporary vacancy shay occur in the Bond of Directors through the absence of any director from the State of Hawaii or the sk~ctees or disability of any director, the remaining directors, whether conatitudng a majorityr or a minority of the whole Board. msy by the afflmnative vote of a majorlly of such remaining directors appoint some person as a substitute director, who shall be a director during such absence. siclmess, or disability and urml such director shall retum~ to duty or the office of such director shall become penmanently vacant. ARTICLE V MEETING OF BOAAD OF DIRECTORS Section 5.1 Regular Maetlngs. Regular meethrgs of the Board et Directors shall be held, at least annually, at such tlmes and places as the Board of Directors may provide by resolution. No notice other than such resolution need be given. In attendants at these meetings shall be the Executtve Director and any other staff members as requested by the Board. Section 5.2 Annual Meeting. The Annual meeting of the Board of Directors shall be held during the month of January. Section 5.3 Special Hastings. Special meetings of the Board of Directors may be called by or at the request of the President, the Vice-President, or any two directors. The person or persons authorized to call special meetings of the Board of Directors may fix the place for holding such meeting. Notice shah bs given in writing by mailing the same not less than three days prior to the meeting or by giving notice personally or by telephone not less than one day prior to the msetrng. The failure to gyve such notice or by arty director to receive such notice shall not invalidate the proceedings of - yny meeting at which a quorum of the directors is present. Section 5.4. Quorum. A majority of the fatal number of directors fixed at arty green time shall' constitute a quorum to transact business, and, in order to be valid, any act or business must receive the approval of a majority of such quorum. A vacancy or vacancies in the membership of the Board of Directors shall not aflbct the validity of arty action of the Board of Directors, provided there is present at the meeting a quorum of all the directors at which the Board of Directors has been fixed. Section 5.5 Decision-Making. As much as possible, decisions will be made on a consensus basis. When necessary, decision-making will follow Roberts Rules of Order. 3 R~rr~d ?Wyss Sectbn 5.6 AdJouenmern. In the absence of a quorum at a meeting duly called, the . Presidert or a majority of the directors present may adjourn the meeting from time to time without further notice, and may convene or reconvene the meeting when a quonmt shall be present. Sectbrt 5.7 Actlon by Consent. Any actlon by the Board of Directors may be taken without a meettrtg ff a written consent thereto is signed by all the directors and filed' with the records of the meetlngs of the Board of Directors for all purposes. Seaton 5.8 Pm~des. Voting by proxy shall not be permitted at any meeting of the Board of Directors ar of any committees. boards, or bodies created by the Board. SeGion 5.9 Procedures. The Board of Directors shall fix its own rules of procedure which shall not be inconsistent with these By-rows. ARTICLE VI PAWEAS AND DU17ES OF THE BOARD OF DIRECTORS Section 6.1 Powers. The corporate powers of this Corporation shall be vested in the Board of Directors to the fullest extent permitted by the laws of the State of Hawaii. The Board of Directors shall have general charge of the affairs, funds and property of the Corporation, and shall have full power, and it shall be their duty, to enforce the By- laws. Sectibrt ~6.2 Dulles. It shall be the duty of the Board of Directors to conduct, manage and control the affairs and business of the Corporatlon and to promulgate and enforce rules and regulations consistent with law, the Articles of Incorporation and the By-Laws of the Corporetton. Section 6.3 Gifts and Contributions. The Board of Directors may accept on behalf of the corporation in any contribution, gift, bequest, or devise for the general purpose othhe corporatlon. ARTICLE VII - OFFICEAS- Section 7.1 Number. The officers of the Corporation shall be the President, the Vice- President: the Secretary, the Treasurer and such other officers, not to exceed three, as the Board of Directors shall from time to time elect. Section 7.2 Eleetlon' and Tenn of Office. All officers shall be elected by the Board of Directors and shall serve untU their successors are elected. Any two or more offices may be held try the same person. provided that the Corporation shall have not fewer than two parsons as officers. All officers shall be subject to removal at any time by the Board of Directors whenever in the judgment of the Board of Directors the best interests of the Corporetlan will be served thereby. The Board of Directors may, at its discretion, elect acting or temporary officers, elect officers to fill vacancies occurring for 4 fl~vs~d ?/1~IGa any reason whatsoever, and limit or enlarge the duties and powers of any officer elected by iL Of(Icers need not be directors of the Corporation. Sectbn 7.3 President. The President shall be the chief executhre officer of the corporation. Fie shell preside at all meetings of the members and in the absence of the Chairman of. the Board of Directors, or if no Chairman of the Board of Directors shay haw been appointed. the President shall preside at all meetktgs of the Board of Directors. He may call special meetings at his discretion. Subject to the discretion and control of the Board of Directors. the President sttelh (a) be in personal charge of the pdnapal office of the corporation; (b) haw the general management, supervision and control of all the property, business, and affairs of the corporatan: prescribe the duties of the managers of all branch offices, and exercise such other powers as the Board may from time to time comer upon him; (c) appoint heads of departments, and generally control the engagement, govemmertt, and discharge of all employees of the corporation, and fix their duties and compensation. He shall at all time keep the Board of Directors fully advised as to all of the corporation's business. Section 7.4 Vice-President. In the absence or disability or refusal to act by the President, the Vic~President shall, in the order designated by the Board of Directors, perform all of the duties of the President, and when so acting shall have all the powers of and be subject to all the restrictbns upon the President. The Vke-President shall have such powers and perform such other duties as from time to time may be prescribed by the President. the Board of Directors or By-Laws. Section 7.5 Treasurer. The Treasurer shall be the chief financial officer of the Corporation and exercise general supervision over the receipt, custody and disbursement of corporate funds. The Treasurer shall perform all other duties assigned by the Board of Directors. Section 7.6 Secretary. The Secretary shall keep the minutes of all meetings of the Board of Directors. The Secretary shall keep or cause to be kept a register showing the names of the current directors and officers with their addresses. The Secretary shall give notice on conformity with the By-Laws of all meeting of the Board of Directors. The Secretary shalt also perform all other duties assigned by the Hoard of Directors. Sectoon 7.7 Absenp of Officers. In the absence or disability of the President and Vice President the duties of the President (other then the calling of meetings of the Board of Directors) shall be performed by such persons as may be designated for such purpose by the Board of Directors. In the absence or disability of the Secretary or of the Treasurer, the duties of the Secr~ary or Treasurer, as the case may be, shall be performed by such person or persons as may be designated for such purposes try the Board of Directors. 5 Rwr~d 2/1~/G4 Section 7.8 Salaries. The salaries and compensation, if any, of oiflcers, agents, and. empbyees shall be determined by the Board of Directors. Bosh d Dln~etot'a shall aoarah In s vduntser ~tv. ARTICLE VIII COYYITTEES Sectbn 8.1 Carnnittees. The Board of Directors may create and appoint such general or spedel commidees of any kind as the bwiness of the corporation may require and deflirte the authority and duties of such committees; except that such committees shah not have the power to flll vacancies in the Bawd of Directors, or any such other powers ae may be reserved to the Board of Directors by statute or otherwise. All committees shall be chaired by a Director. Sectlon 82 Executlw Committee. The Executive Committee, which shall meet bi- monthly at a time a place designated by the President, is authorized to conduct the business of the Corporation. The F~cecutlva Committee shall have the full power and authority of the Board of Directors of the Corporation. Minutes shall be recorded and reported to the full Board upon request of the Board. ARTICLE IX AUDR OF THE BOOKS OF THE CORPORATION Section 9.1 Audits. The Board of Directors may cause a complete audit or an accounting review to be made of the. books of the corporation at least once in each fiscal year and more often as the Board of Directors shall deem appropriate and shall thereafter make appropriate reports to all members of the Board of Directors and of the corporatlon. The Boarcf of Directors may appoint some person, firm, or corporation engaged in the business of auditing to act as the auditor of the corporatbn. ARTICLE X CONTRACTS, CHECKS, DEPOSITS AND FUNDS Section 10.1 Contracts. The Board of Directors may be general or special _ resolution authorize the President and/or any other officer or officers of the corporation .to enter into any contract or to execute and deliver any document, instrument, or writing of any nature in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances. Section 10.2 Funds. All funds of the corporation shall be deposfted,from time to time to the credit of the corporation in such banks. trust companies, or other deposdories as the Board of Directors may select . Section 10.3 Checks, ate. All checks. letters of credit, drafts or orders for the payment of money, notes, or other evidences of indebtedness shall be signed by the President and/or such other officer or oiflcers of the corporation and/or suctr employee duly authorized by the Board and in such manner as shall from time to time be determined by general or special resolution of the Board of Directors. In the absence 6 R~vr~d 1ltv9a of such detemtinadon by the t3oard of Directors, such instruments shall be signed by the Preaidertt. ARTICLE XI INSPECTION OF CORPORATE RECORDS AND BY-LAWS Sectbn 11.1 Inspection of Corporate Records. The books of account and the minutes of procsedUttgs of the directors shall be open to inspedbn upon written demand of arty person at any reasonable time. Demand for inspection other than at a mewing shag be made in wntlng upon the Pr'eskient. the Setxetary, or any other officer designated by the Board of Direcbrs. Section 11.2 Inapsctlon of 8y-laws. The corporation shall keep in its principal office for the transactbn of business a copy of the By-Laws of the corporation as amended or otherwise altered to date, which shall be open to inspection at all reasonable times during office hours. ARTICLE Xll LIABILITY AND INDEMNIFlCATION Section 121 Uabillty. No director, officer, employee, or agent of the corporation, and no heir, executor, or administrator of any such person shall be liable to this corporation for any loss or damage suffered by it on account of any action or omission by him as such director, officer, employee, or agent if he acted 1n good faith and in a manner he reasonably believed to be in or not opposed to the best interests of this corporation, untses with respect to an action or salt by or in the right of the corporation to procure a judgment In its favor, such person shall have been adjudged to be liable for gross negligence or willful misconduct in the performance of his duty to this corporation. Section 122 Indemniflcatlon. (a) 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 completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (other than an actlon by or in the right of the corporatbn) because he was _ a director, officer, employee, or agent of the corporation ar any division of the corporation, against expenses (Including reasonable attorneys' fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with any action, suit, or proceeding if he acted in good faith and m a manner he 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 no reasonable cause to believe this conduct was unlawful. The termination of any acton, swt, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contender or its equlvalertt, shag nat. of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or riot opposed to the best interests of this corporation and, with respect to any criminal action or proceedirtQ, had reasonable cause to believe his conduct was unlawful. (b) The corporation shalt indemnify each person who was or is a parry or ~s threatened to be made a party to any threatened. pending, or completed action, sad by or m the right of the corporation to procure a judgment in its favor because he ~s or was 7 Rwe~d 1!14194 a director, oiftcer, empbyee, or agent of the corporation or of any division of the corporatbn, against expenses (including reasonable attorneys' fees) actually and reesonably incurred by him h oDnnedbrt with the delertse or settlement of such action or salt if he arced h good faitlt and b a manner he reasonably beNevett to be in or not opposed to the bast interests or this oorporatbrt, except that no Indemnification shall be made in respect of arty claim, issue, or matter as to which such person shall have been ad)udged to be fiabN for gross negliguence or willful misconduct in the performance of hie duty to this corporation unless and only to the extent that the court in whldt such atxbn or suit was luougtrt shay determine upon application that, despite the adjudk:atlort of Ifabigly but rn view of all the dreumstances of the case, such person is fairly and redeonabiy entitled to indemnity for such expenses whidt such court shall deem proper. (c) To the extern that a director, officer, empbyee. or agent of the corporation or of any division of the corporation has been successful on the merits or otherwise in defense of any acdon, suit, or proceeding referred in paragraph (a) and (b) of this Section, or in deisnse of any claim, issue, or matter therein, he shall be indemnified against expenses (including reasonable attorneys' fees) aMually and reasonably incurred by him in connection therewith. (d) Any indemnrficatbn under paragraph (a) and (b) of this Section (unless • ordered by a court) shall be made by the corporation only as authorized in the specific case upon a determination that indemnficatian of the director, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in paragraph (a) and (b). Such determination may be made (1) by the Board by a majority vote of a quorum consisting of directors who were not parties to such acdon, suit or proceeding, or (2) if such a quorum is not obtainable a quorum or disirterested members as the Board so directs, or (3) by independent legal counsel in a written opinion to the corporation. (e) 6cpenses incurred in defending a civil or criminal action, suit, or proceeding may be paid by the corporation in advance of the final disposition of such achon, suit, or proceeding as authorized by the Board of Dlrectors~in a particular case upon receipt or an undertaking by or on behalf of the director, officer, employee, or agent to repay such amount unless it shall ultimately be determined that he is entitled to be indemnified by the corporation as authorized in this Article. (f) The Indemnification provided by this Article shall not be deemed exclusive of _ any other rights to which those indemnified by be entitled, shall continua as to a person who has ceased to be a director, officer, employee, or agent. and shall inure to ~fte benefit of the heirs, executors, administrators, and personal representatives of such person. 8 R~vwd ~/1 Ui4 - - (g) The corporation may purchase and maintain insurance on behalf of any person who is or was a direr~or, officer, atitployee, or agent of the corporation or any division of the corporatbrt asainst any BabiNly asserted or incurred by hun in any such capacity or arising out of his states as such, whether or not the corporation would have the power to indemnify him agtinat such IiabNily under the provisions of this Article. Any such insurance may bs procured from any insurance company designated by the Board. ' ARTICLE X111 FlSCAL YF~4R The fiscal year of the corporation shall be such as may from time to time be established by the Board of Directors. ARTICLE XIV ' GOVERNMENTAL POLICIES Section 14.1 General Polley. The Rules sat forth in this Article XIV shall be consistent with and interpreted in conformity with the grant policies of the State of HawatT Departmerrt of Health. Section 14.2 No Compensation of Directors. The Directors of the corporation shell not roceivs compensetlon for their serviws as directors of the corporation. Section 14.3 No Nepotism. The corporation is anon-profit organization duly registered with the Department of Commerce and Consumer Affairs of the State of Hawaii. All empbyees of the corporation shall be hired on the basis of merit and not upon the basis of their family, blood or kin relationship to any member of the Board of Directors or any current officer or employee. Section 14.4 Conflict of Interest. No employee or board member of the corporation shall take any oifk;ial action on behalf of the corporation directly affecting (a) any business or other undertaking in which the person has a substantial financial interest, or (b) a private undertaking in which the person is engaged as legal counsel, advisor, consultant. representative, or in any other agency capacity. Section 14.5 Non-Smoking. Smoking is hereby prohibited at all times in all mtenor spaces under the control of Bridge House, Inc.. Section 14.6 Non-I)lacrlminatlon. There shall be no dlt3crlminatlon on the basis of race, color, religion, marital status, age or handicap with regard to hiring. aesignnrent, promotion, use of valuMeers, ar dekivery of other services. This polley shall apply to membership on the organization's governing body and Its duly organized committees. Section 14.8 Authorized Representative. The President ar the Executive Director ~s authorized to execute, form time to time, the actnnties of Bridge House, Inc.. They are authanzed to sign all documents, applications and contracts required for Bridge 9 N~,r~d 7/tUW House, Inc. for financial support, and other requirements necessary for the ' organ®tlon. a AR77CiLE XY AiIAENDMEM'S TO BY-U1WS The By-Laws, and every part thereof, may from tlme to time and at any time, be amended. altered. repealed. and new or additional 8y-Laws may be adopted by a majority vote of ti1e directors at which a Quorum is present. 1a R~va~d 1H~IY4 The imdersigaed pretidmt of Bridge I~ouaq lac., haceby artiflaa tlma the Soregoiag Bylaws waro doily adopted by the raaolutian of the Board of Dicaxas of Bridge 13ouse, la, on Anguat 13,1992, and that they • remain is full force and affect. DATE: Felm~sry 5, 1999. walber weiton 1?reaiaeat