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HomeMy WebLinkAboutCOM 0667.012 1998-2000APPLICATION FOR FY 2000 -2001 HAWAII COUNTY HUMAN SERVICES NONPROFIT GRANTS Submitted to : County of Hawaii Department of Finance 25 Aupuni St., Room 118 Hilo, Hawaii 96720 -4252 Submitted by: Catholic Charities Community and Immigrant Services 250 Vineyard Street Honolulu, Hawaii 96813 For: The Kawaihae Transitional and Emergency Shelter Ka Hale O'Kawaihae scour ptel. FOnw .. o. • " Orb &7,01z(Igg1- zoc). - �SOnw Swell.. Comm. No. 66 01 File No. ADM Ref. To: t Ref. Date FEB 2 3 2000 Stephen K. Yamashiro Mayor GRANT APPLICATION FOR: Legal Name of Organization: Mailing Address: Facility /Site Address: Director /Site Manager: Organization President: Contact Person (Grant Writer) • seek permanent rental housing. (County of 3atuaii DEPARTMENT OF FINANCE 'S Aupuni Street Room 1 /8 • Hilo. Hawaii 967204252 (808) 961 -8274 • Fax (808) 961 -8248 HAWAII COUNTY NONPROFIT GRANTS (FY 2000 -01) HUMAN SERVICES NONPROFIT GRANTS REVIEW COMMITTEE (IISNPGRC) FISCAL YEAR ENDING:June 30, 2001 DATE OF APPLICATION: January 27, 2000 Ka Hale O'Kawaihae of Catholic Charities Community & Immigrant Services (Program Tine) Catholic Charities of the Diocese of Honolulu 250 Vineyard Street; Honolulu, HI 96813 62 - 3440 Kawaihae Rd., Laura Manuel - Arrighi Phone: 882 -7609 Robert Tong Phone: (808) 548 - 4953 Morris Masuda Phone (808) 536 - 5774 ext 13 Amount of request for County funds: $ 8,925 Total annual budget of organization: $ 13, 389, 200 Has the applicant applied for any other funds from the County of Hawaii this fiscal year? 0 Yes Source/Department: ( No Agency /Program(s): (.. Social Services 0 Youth Programs .) Elderly Programs Check Category (ies) 0 Culture and Arts U Education V Other Homeless Shelter Briefly, define the program for which funding is being requested: Funding is requested to provide respite child care for the residents of the Ka Hale O'Kawaihae family transitional shelter. These services allow the homeless parents to keep appointments for medical services, social services, job interviews, and to I Kawaihae, HI 96743 Harry A. Takahashi Drrnlo. S. K. Schutte Deputy 4 • • L QUALIFYING STANDARDS FOR APPLICANTS An applicant must meet all of the following standards: l°1 Be chartered or otherwise authorized to do business in the State for charitable purposes and exempted from the Federal income tax by the Internal revenue Service. Have a governing board whose members serve without compensation and have no conflict of . 1 interest between their regular occupations and the services provided. Have bylaws or policies which describe the manner in which business is conducted, including management, audit, fiscal policies and procedures, policies on nepotism, and policies on management of potential conflict of interest. Have at least one year's experience with the service or activity for which the appropriation is sought or can otherwise demonstrate to the satisfaction of the County sufficient expertise to successfully carry out the service or activity. Be licensed and accredited in accordance with applicable requirements of Federal, State and County laws. II. GRANT CONDITIONS The applicant agrees to comply with the following terms & conditions prior to receiving a grant award. A. Comply with applicable Federal and State laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, or handicap. B. Agree not to use any public funds for purposes of entertainment or perquisites. C. Comply with such other requirements as the Director of Finance may prescribe to ensure adherence by the nonprofit organization with Federal, State, and County taws, and established standards for fiscal and program management. D. Allow the Director of Finance, the committees of the council and their staffs, and the Legislative Auditor access to records, reports, files, and other related documents in order that the program, management, and fiscal practices of the nonprofit organization may be monitored and evaluated to assure the proper and effective expenditure of public funds. III. RECORDS AND REPORTS A. The applicant shall follow generally accepted accounting procedures and practices and shall maintain books, records, documents, and other evidence, which sufficiently and properly account for the expenditure of County funds. The books, records and documents shall be subject at all reasonable times to inspection, reviews, or audits by the County expending agency, the Director of Finance, and the Legislative Auditor, or by their representatives. B. The County expending agency, Director of Finance, or County Council may request periodic written reports on the use of County funds. C. The nonprofit organization shall submit a final written report to the Legislative Auditor within sixty (60) days after June 30 of the fiscal year. The report shall include an explanation of the public benefits derived from the awarding of the grant and a listing of other funding sources and amounts obtained during the award period. 2 ,• • a • IV. QUARTERLY ALLOCATION Under no circumstances shall grant funds be disbursed in a lump sum payment. Grant funds will be disbursed to Grantees only through a quarterly allocation process. The disbursement of grant funds can be formulated on an equal quarterly apportionment basis. V. GRIEVANCE PROCEDURE The applicant will adopt and maintain a grievance procedure to assure proper accounting for any concerns and complaints about its programs or services that may arise from its members, employees, clients or from other members of the public. VI. DISCLOSURE OF INFORMATION All information, data, or any other material provided to the County by virtue of this application shall be subject to the Uniform Information Practices Act (UIPA), ch. 92F, Hawaii Revised Statutes. All such material is deemed government record and shall be open to the public and may be provided to other public and/or private funding sources. VII. CONTINUED ELIGIBILITY • • Any applicant or recipient who withholds or omits any material facts or deliberately misrepresents such facts to the County of Hawaii shall: 1) Immediately be disqualified from consideration for Nonprofit Grant funding; OR 2) be in violation of the terms of the Grant Agreement of County funds in which case a grant agreement can be terminated by the County and the recipient or provider may be liable to reimburse all or a portion of any funds received therein. VIII. ACKNOWLEDGMENT Catholic Charities of the Diocese of Honolulu (Legal Name of Organization) Ka Hale O'Kawaihae hereby agrees to administer the of the Catholic Charities Community & Immigrant Services (Program Title) in accordance with the regulations, policies and procedures prescribed by the Hawaii County Finance Department. Distribution of grant funds is limited to grantees, which are in compliance with County regulations, policies and procedures. The County reserves the right to withhold grant distributions at any time the grantee is not in compliance. It is the policy of the County of Hawaii and for those who do business with the County to provide equal employment opportunities to all persons regardless of race, physical disabilities, color, religion, sex, age, or national origin as mandated by the Federal Civil Rights Acts, as amended, and any other federal or state laws relating to equal employment opportunities. IX. AMENDMENTS TO THE APPLICATION/EVALUATION The applicant assures that it will submit to the HSNPGRC for prior review and approval, a written request and justification for any changes, additions, or deletions to any portion(s) of the grant application or a duly executed Grant Agreement of County Funds. The applicant will cooperate and assist in any effort undertaken by the HSNPGRC to evaluate, inspect or otherwise monitor the effectiveness, feasibility, and/or cost efficiency of any and all practices, policies and procedures or activities pursuant to this application or any grant designation or allocation received as a result of this application. 3 • • X. AUTHORITY AND CAPACITY OF APPLICANT The applicant certifies that it has the authority and capacity to develop and submit this application, and to fully administer the program(s) pursuant to this application. UNSIGNED PROPOSALS WILL NOT BE ACCEPTED! Signature of President/Chairperson Robert Tong ignature of Executive Director/Manager Morris Masuda 4 1/27/00 Date 1/27/00 Date • 4 • RESOLUTIONS OF THE BOARD OF DIRECTORS Of CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU WHEREAS, Catholic Charities of the Diocese of Honolulu, a Hawaii non- profit corporation (the "Corporation "), is composed of Affiliated Agencies, which currently include Catholic Charities Family Services, Catholic Charities Elderly Services, and Catholic Charities Community and Immigrant Services, each of which has its own Executive Director, and WHEREAS, Article IX, Section 9.1, of the Bylaws of the Corporation provides that the Board of Directors of the Corporation may from time to time by resolution authorize contracts and instruments of any nature to be signed, executed, and delivered by such officers, agents, or employees of the Corporation or any one of them, as may be determined from time to time by the Board of Directors, NOW, THEREFORE, be it RESOLVED, that all contracts, agreements, proposals, grant requests, certificates, and other documents or instruments relating to services to be provided by the Corporation or any of its Affiliated Agencies by virtue of grant -in -aid, purchase of service contract, agreement, or other arrangement with any government or private entity shall be signed, executed, and delivered by any of the following officers of the corporation: President; Chairman: Secretary; Treasurer; Diocesan Director of Catholic Charities; or Executive Director of Affiliate Agency involved. Revised: January 18, 2000 RESOLVED, that all notes, bonds, deeds, leases, contracts, agreements, and other documents or instruments providing for expenditures by the Corporation shall be signed, executed, and delivered by any one of the following officers of the Corporation: President; Chairman: Secretary; Treasurer; Diocesan Director of Catholic Charities; or Executive Director of Affiliate Agency involved. PROVIDED, HOWEVER, that any such note, bond, deed, lease, contract, agreement, or other document or instrument which constitutes a binding commitment of the Corporation or any Affiliated Agency for more than one year, or a commitment to expend more than $10,000 shall be signed, executed, and delivered by any two of the foregoing officers of the Corporation or its Affiliated Agencies, one of which shall be the Diocesan Director or his/her designee; and PROVIDED, FURTHER, that no sale, conveyance, other alienation, mortgage, or other encumbering of real property of the Corporation shall be effected unless it shall first have been approved or authorized by the Board of Trustees of the Corporation and the Bishop of the Diocese of Honolulu. Revised: January 18, 2000 • • • CERTIFICATE I, CATHY LEE SEKIGUCHI, Secretary of Catholic Charities of the Diocese of Honolulu, a Hawaii nonprofit corporation, do hereby certify that the attached is a full, true and correct copy of resolutions adopted at a meeting of the Board of Directors of said corporation duly called and held on January 18, 2000, at which a quorum was present and acting throughout; and that said resolutions have not been modified, amended or rescinded and continue in full force and effect. IN WITNESS THEREOF, I have hereunto set my hand and affixed the corporate seal of said Catholic Charities of the Diocese of Honolulu, this lath day of January , 2000 • Secretary Catholic Charities, Diocese of Honolulu — 250 Vineyard Street — Honolulu, Hawaii 96813 • • NARRATIVE RESPONSES PROGRAM /SERVI( DESCRIPTION A. Overview NARRATIVE QUESTIONS 1) Describe the program for which funding is being requested. The Program provides respite and child care services at the Ka Hale O'Kawaihae transitional shelter for homeless families. These supportive services allow the residents to make and keep important appointments with their doctors, dentists, other health services, counselors, potential landlords, and attend life skills classes. Parents are also enabled to participate in employment interviews as they seek jobs and continue to strive for self - sufficiency. 2) What unique or significant service will be provided? No similar service is available in the geographic vicinity for homeless families. A part time child care worker (averages 50 hours per month) provides day care, supervision, and socialization for preschool children. This program is a significant component of a range of services provided at the shelter to empower the homeless to gain self - sufficiency. The full range of supportive services include case management, adult education, anger management classes, budgeting classes, pre- employment training, computer familiarity, community volunteer opportunity, transportation, emergency assistance (financial, food, and clothing) and health screening services. 3) What are the specific outcomes to be achieved? a. Twenty (20) homeless families will transition to permanent rental housing. b. Thirty (30) homeless adults will secure full -time or part -time employment. c. Five individuals (5) will no longer require Temporary Assistance to Needy Families entitlement. d. Three parents (3) will enroll and gain General Equivalency Diplomas at an off -site Adult Education program. e. Thirty (30) adults will complete Life Skills Classes (Computer Familiarity, Anger Management, or Budgeting). • • 4) How will the proposed program empower participants /clients to become self - sufficient and facilitate positive change? B. Problem/Need: The homeless residents of Ka I-Iale O'Kawaihae will become self- sufficient by learning new life skills, gaining a high school diploma, learning responsibility, making positive social changes, gaining positive work ethics and will gain employment. They will also learn how to become good rental tenants. Families will end their dependency on government entitlement programs. 1) What is the problem/need the proposed program is designed to meet? This program will provide the supportive services required to end homelessness for many families. Child respite services enable the homeless parents to attend classes, receive needed medical services and maintain employment. The low income homeless families cannot afford to pay for respite, day care or child care services while they strive to improve their life situation. 2) Who are the target populations and what are the specific needs? The target population is the homeless who are willing to make changes in their lives. The specific need this proposal targets is child respite service so that the clients can work to improve their life situation. Child respite care offers the opportunity for parents to keep appointments, attend classes, receive health services and other support in order to eventually become self sufficient. 3) What is the geographic area(s) to be served, facility and hours of operation? The program serves the entire island of Hawaii. Ka Hale O'Kawaihae has twenty (20) efficiency cabins, a child respite care /computer resource center, an administration office, and community pavilion. The program operates twenty - four (24) hours daily throughout the year. Office hours for intake and admission are from 8:00 a.m. to 5:00 p.m.. Admission during non - office hours may be arranged for early evenings and on Saturdays. C. Collaboration/Coordination: 1) What specific measures will be taken to collaborate /coordinate with other community resources to achieve maximum program efficiency and cost effectiveness? The program already works in close collaboration with many community resources, such as, Hawaii Care -A -Van, Medical Mobile Van, Hawaii Island Food Bank, Hawaii Island Social Ministry, the Department of Education, Department of Health, Department of Human Services, the County of Hawaii, Office of Housing and Community Services, West Hawaii Family Services, and The Institute For Family Enrichment. Networking with other agencies is an 2 A • • • operational necessity due to a limited budget, island resources. Without the collaboration, many of the agencies noted above would need to hire additional staff, open new programs and seek new government funds to provide the wide range of services currently available. Additionally, the shelter staff works closely with the public and other private agencies to assure that each client receives only appropriate services, counseling, referrals. 2) How will these measures reduce or eliminate any existing duplication of sery ices to your designated target group? The staff of the collaborating agencies works to eliminate duplication of services. In a few cases, chronic "users" of services attempt to gain donations and services from multiple resources. These individuals become known to the agencies and are not served. While policies may differ among the nonprofit agencies, most will provide emergency financial assistance just once to a family. This practice also helps to eliminate duplication of services. Additionally, Ka Hale O'Kawaihae is the only homeless family shelter in the southern region of Hawaii. As such, the majority of clients served are from the region and have not received prior shelter services available in Hilo. D. Goals and Objectives: 1) What are the major goals/benchmarks of the proposed program? The primary goal is to assist homeless families through all barriers in seeking and maintaining permanent residence. Imperative to reaching this goal is the provision of adequate shelter and services. Child respite care is a significant component of the services. Each shelter participant is expected to attain the following benchmarks while residing in the shelter: I) Attend a minimum of one Life Skills Class per six month period; 2) Participate in and gain a GED high school equivalency certificate for those who have not completed high school; 3) Secure part -time or full time employment. These benchmarks help each resident to attain the objective of acquiring and maintaining a permanent residency for a minimum of six months after transitioning from the shelter. Client progress to attain the benchmarks are reviewed and evaluated twice a month by the case manager. Follow -up service and phone or mail contact is made with each former resident to evaluate their success in the maintenance of their permanent residence. 2) What specific objectives /action steps are planned for each goal? The specific objectives: a. Child respite care will be provided to one hundred twenty (120) children, duplicated count, for the project year. The outcome measure is the actual count of participating children. E. Service Delivery: b. One hundred twenty -five (125) adults, duplicated count, will have been given the time to seek employment. The outcome measure is the actual duplicated count of adults who attended job interviews while their child or children participated in child care. c. Two hundred (200) adults, duplicated count, will have been given the time to attend life skills, computer and formal adult education classes. The outcome measure is the actual count of the adults' attendance in classes. d. Twenty (20) adults will have been given the time to attend drug or alcohol dependency counseling sessions and related services. The outcome measure is the actual count of adults who attend the sessions. 3) What is the time line (start and end dates) for each action step? The time line for achieving each objective is the funding year, staring on the first day funding is received and ending twelve (12) months later. Each participant's personal benchmarks begin at their date of admission into the program. Ideally, Each participant will move on a continuum from learning new life skills, gaining their high school equivalency, job training, employment and finally to their successful transition to permanent housing. However, the actual sequence of events takes various paths. Each objective is reviewed and evaluated monthly by the participant and the Case Manager. Program modifications may be made at any time by the participant and Case Manager in order to keep personal goals realistic, achievable and motivating. 4) What significant client - centered outcome(s) will the program achieve? include in your answer how many participants /clients will: a) Attain at least one personal program outcome; or b) Show measurable progress towards your program goals. Sce Section A -3. All of the outcomes as delineated in Section A -3 are client - centered outcomes. Each program participant will complete a minimum of one life skills class per every six -month period while residing at Kawaihae. Each program participant will have completed an employment training class. Each participant will have participated in a minimum of one job interview after completing the employment training. 1) What methodology will be used in the proposed program's delivery of service(s)? One child respite care worker provides care and supervision to a maximum of five preschool aged children at any given time. Older children are also provided with care when on school break. Every resident of the shelter is informed of the child care service and how to avail them for the service. The Case Manager arranges for child care services for individual families as specific needs arise. 4 • F. Evaluation' • • 1) What process will be used to evaluate the program and services? Data is kept on the number of clients who benefit from the child care / respite services. The data is kept by the Case Manager. Data is also collected on the clients' ongoing progress in achieving their client- centered objectives. This data is gathered and evaluated by the shelter's Program Director. The Program Director's data and summary program reports are submitted monthly to the agency's Program Development Specialist who is responsible for contract compliance, client outcome tracking, program modifications and keeping the Executive Director informed of all program outcome measures. Evaluation is ongoing and program modifications are made as necessary to improve each of the agency's programs in collaboration with direct staff and administration. The Executive Director is responsible for keeping the Board of Directors informed of program achievements and problems. The Housing and Community Development Corporation of Hawaii (HCDCH) conducts their own independent quarterly or semiannual evaluation by reviewing all case records, interviewing staff, reviewing staff personnel files and interviewing the clients. They initiate a program compliance report with emphasis placed on the need to correct items that do not meet the program standards. The HCDCH compliance outcome measures are based on the outcomes projected by this agency and minimum standards established in the State Homeless Program statutes. The agency makes the appropriate program modification to correct any reportable deficiencies. Independent program and financial audits are also conducted by an HCDCH contracted certified public accounting firm approximately every other year. 2) How will this process measure the outcome specified in Item D, (1 -4)? Precise counts of children and adult beneficiaries will be maintained by the Child Care Worker and Case Manager. Counts of class attendance, test scoring and job interviews completed are also maintained by the Case Manager. That information will be checked by the Program Director who in turn presents the information to this agency's administration. Program modifications may he made as necessary in order to achieve the proposed outcome measures. G. Pro ram Fees: I) Does your organization charge a membership fee for service participants? There are no membership fees. 2) Does the proposed program charge participants a fee for service provided by your organization? H. Viability: • • There are no service fees. However, each family pays rent of $270.00 per month. I) Homelessness is a major social / poverty issue faced by the County and entire state. Homelessness can lead to significant increases in health problems, crime, reduction in the community's quality of life, reduced business, loss of tourism, and the loss of productive citizens. Alleviating the problems of homelessness requires tremendous resources, a significant upturn in the economy and the partnership of the entire community. The partnership of public County funding, State funding, public agencies and nonprofit agencies' services help to address the problem of homelessness in a cost - effective way. A. Board of Directors. The HCDCH reported that in fiscal year 1997, one thousand one hundred thirty - five (1,135) unsheltered homeless individuals were contacted by the Hawaii Island Care -A -Van Outreach Program in the County of Hawaii. Of that figure, just fifty-two (52) families were able to attain residency and services from the two homeless shelters on Hawaii (Ka Hale O'Kawaihae and East Hawaii Coalition for the homeless). Both homeless shelters cannot serve all of the homeless families in the County and usually maintain a waiting list of applicants. 2) What are your financial and programmatic plans to sustain the proposed program beyond the upcoming fiscal year? This agency's Long Range Plan targets increased fund development for the next four years. Increased funding will be gained through the agency's golf tournament (Sam Choy Poke Shootout), direct mail campaigns, and other donations. While State funding has decreased for this shelter, the agency has increased its fund raising revenue by approximately 10% annually. For FY 2000, Ka Hale O'Kawaihae received a new HUD Continuum of Care, Homeless Supportive Services Grant of $126,862 (year 2000 to 2002). This funding expands adult education and job training activities at the shelter. The Child Respite Care Program makes it possible for the parents to attend these services. Catholic Charities will continue to increase unrestricted fund raising to assure that the child respite services can continue beyond this fiscal year. The agency already decreased its request to the County of Hawaii by approximately $1,500 from 1998 to 1999. I. RS The budget tables are attached. ORGANIZATION /AGENCY INFORMATION 6 • • • • 1) Has the organization's Board of Directors received formal training within the past two (2) fiscal years? [If yes]: Attach certification /verification of board training. Each new Board member has to complete an orientation session. Topics covered at the orientation include Board members' responsibilities, Board member job descriptions, the agency mission, goals, objectives, human resources, finances, and values /ethics. The next Board Orientation will be presented on February 29, 2000. In 1999, Robert Tong, Board President, and Member Fred Yamashiro attended a HUD Community Builders workshop on Preserving Project -based Section 8 Affordable Housing. [If no]: a) What plans do you have to provide formal training to your current Board of Directors? Catholic Charities provides a board orientation to all new board members annually. b) When will the next board training be completed? The agency wide orientation for new board members will again take place on February 29, 2000. c) Flow will you provide formal training to newly arrived board members or board members who miss a scheduled training? All new members are provided with an orientation. All training written materials are provided to all board members who cannot make a session. The Board President or an appointed representative covers the major points of the training at the immediate board meeting following the session. 2) What are the primary roles and responsibilities of your organization's Executive Director? The primary roles of the Executive Director of Catholic Charities Community Services include: a) Develop, execute and administer all programs and contracts for services with the stated purpose and long range plans of the Board; b) Serve as chief executive and administrative officer of the agency; c) Exercise leadership in keeping agency programs and services relevant to current and changing community needs; and d) Serve as a participating member of the overall Catholic Charities administrative team. 3) What are the primary roles and responsibilities of your organization's Board of Directors? (Clarify roles of executive officers vs. general membership). B. Past Performance: • • The primary roles of and responsibilities of the Board of Directors are: a) To adopt policies governing the general organization, program, and conduct of Catholic Charities Community and Immigrant Services; b) To elect officers; c) To appoint and remove with the concurrence of the Diocesan Director of Catholic Charities, the Executive Director of the agency; d.) To implement personnel standards and practices and compensation of all positions of the agency within the guidelines set by the Catholic Charities Corporate Board; and e) to perform such other duties as may be necessary for the conduct of business of the agency. The President presides at all meetings of the Board, appoints members of committees, serves as an ex- officio voting member of all committees, and serves as the agency representative on the Board of Directors of Catholic Charities (the legal entity). The Vice President assists the President and may be assigned to perform such other duties assigned by the President. The Secretary, with the aid of staff, is responsible for keeping the minutes of all meetings, giving notice of all meetings and may be assigned other duties. The Treasurer is the chief financial officer and with the aid of staff exercises general supervision over the receipt, custody and disbursement of agency funds. The Officers also serve as the Executive Committee and are responsible to carry out business, if necessary, between meetings of the full Board. 1) How effective has your organization been in achieving program goals in the past two (2) fiscal years? Include the following information: a) Quantitative data on numbers served; and b) Quantitative data showing number and % of participants achieving measurable outcomes. The Shelter met or exceeded all of the program's output objectives for the two fiscal years. Most of the projected outcomes were within the program's anticipated achievements. The 1999 data on individuals transitioning off welfare is skewed as 70% of the new shelter residents are from Micronesia and were never on any U.S. welfare assistance. Thus, the pool of residence who would have moved off welfare was initially overstated. On the other hand, threats of welfare reductions in FY 1998 spurred many of the local families to successfully gain employment earlier than anticipated. (Note: Certain outcome number objectives were revised from 1998 to 1999.) a) 9utpnt data on numbers served (summarized): FY 1998 FY 1999 Total Number Served (Transitional): 186 189 Total Number Served (Emergency): 124 113 Total Classes Provided (All Subjects) 224 244 Total Served in Child Respite Care: 182 204 Total Participants Completed Training: 176 249 8 • C. Financial: • ll. Monitoring: • b) Outcome data showing number and % of participants achieving measurable outcomes (summarized): FY 1998 Total Retained Perm. Hsng (+ 6 mos.): 79 (94 %) * Total Transitioned (new) 64 (110 %) Total Sustained Emplymt (+ 3 mos.): 41 (413 %) Total Gained New Employment: 18 (350 %) Total Transitioned Off Welfare: 38 (375 %) FY 1999 71 (85 %)* 66 (92 %) 23 (96 %) 11 (92 %) 0 ( -100 %) * Percentages are plus or minus from the outcomes measures proposed. Have your organization's current program operations remained the same as last year? What major program or financial changes will be incurred next year? The programs of Ka Hale O'Kawaihae have essentially remained the same as last year. One significant addition for this year is the successful acquisition of a new HUD Continuum of Care Homeless Supportive Services Grant of $128,600 to provide adult education and employment training from the year 2000 to 2002. The program will now be able to provide full time education and employment training to the residents without having to schedule classes on the availability of volunteers. The agency also completed its merger of the Catholic Charities Community Services and Catholic Charities Immigrant Services affiliate agencies. This merger allows Catholic Charities to continue to provide immigrant and refugee services by eliminating some duplicated administrative and personnel costs. The merger also will help the shelter to gain better access to bilingual services from the agency's staff located in Kona. The annual budget for the newly merged affiliate agency is $1.2 million. The total budget for Catholic Charities is $16,129,600. 2) What is the status of all your organization's major contracts or agreements for the coming year? All of the contracts for the Ka 1 - Tale O'Kawaihae shelter have been approved at approximately the same level as last year. As noted above, the shelter acquired a new HUD grant of $128,600 for the years 2000 to 2002. 3) How does the proposed program fit into your organization's long range financial plan? The proposed program is vital to the overall service component of Ka Hale O'Kawaihae. Increased fund development is a significant objective of this agency's Long Range Plan and there is a commitment to raise funds for the respite /child care program. E. • • 1) During the past two (2) fiscal years, what financial and /or administrative monitoring has your organization received from any and all funding sources? Please list the monitoring sources, contact names and phone numbers. The program has been monitored by the HCDCH, KPGM Peat Marwick, Eamst and Young, and Choo, Osada and Lee, CPA. The HCDCH provides regular administrative and program monitoring, KPGM conducts the HCDCH homeless program's financial audit and Choo, Osada and Lee conducts this agency's annual and federal single program audits. Contacts : HI-IA: June Tong (808) 832 -5930 KPGM: Timothy Kaneshiro (808) 541 -9234 Choo, Osada and Lee: Vicky Nakagaki (80S) 734 -1921 III II. 1 . 11 I I 1) Information: How does your organization address alcohol, tobacco, and other drug prevention information dissemination as part of your workplace and /or program environment? All of the topics are addressed in Catholic Charities Personnel Policies. Each employee received the policies at point of hire from the agency's Personnel Department. After reading the policies, each employee signs a statement of having read and understood the document. That statement is returned to the Personnel Department. When any new policies arc approved by the Board, the new or amended policies are distributed to all employees. The affiliate agencies then hold staff meetings to explain the new policies. 10 • • • NARRATIVE ATTACHMENTS g anization/Agency Information Question El 20. DRUG -FREE WORKPLACE 20.1 STATEMENT ON DRUG -FREE WORKPLACE • 20.1.01 The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in Catholic Charities workplaces and /or while on duty. Disciplinary action shall be taken against employees for violation of this policy in accordance with the provisions of Section 14. 20.1.02 Catholic Charities, shall provide an on -going drug -free awareness program to inform employees about: The dangers of drug abuse in the workplace; Catholic.Charities's policy of maintaining a drug - free workplace; Available drug counseling, rehabilitation and employee assistance programs in the community; and Penalties that may be imposed upon employees for drug abuse violations. 20.1.03 Each employee shall be notified that, as a condition of employment, the employee will: Abide, in writing, by the terms of the policy, Notify their Executive Director in writing of his /her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction. "Conviction" includes pleas of guilty or "Nolo Contendere "; "criminal drug statute" includes any state or federal prohibitions against the manufacture, distribution, dispensing, use or possession of any "controlled substance ". "Controlled substance" means any substance that is listed in Schedule I through V in Section 202 of the Controlled Substances Act, 21 USC Subsection 812. ■ e • • 20.1.04 The Executive Director shall notify the relevant federal granting agency in writing, within ten calendar days after receiving notice under subparagraph of Section 20.1.03 from an employee or otherwise receiving actual notice of such conviction. The Executive Director shall provide notice, which includes the position title, to every grant officer or other designee on whose grant activity the convicted employee was working. Notice shall include the identification number(s) of each affected grant. - 20.1.05 The Executive Director shall concurrently notify the Personnel Officer and take one of the following actions within 30 calendar days of receiving notice under subparagraph of Section 20.1.03, with respect to any employee who is so convicted: Take appropriate personnel action against such an employee, up to and including termination consistent with the requirements of the Rehabilitation Act of 1973 as amended and the Americans with Disabilities Act; or Require such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state or local health, law,enforcement or other appropriate agency. • 19.1 SMOKING POLICY 19_ SMOKING 19.1.01 Smoking is not permitted in any Catholic Charities office facility. 19.1.02 Smoking is not permitted in any Catholic Charities residential facility, provided that the Executive Director of the agency responsible for the facility may permit smoking within living quarters. 19.1.03 "No Smoking" signs shall be posted in all common areas. • • • BUDGET TABLES 4. rla P. J• . OSTQ NTI' -E'1 �;: 'f ' � ,.F. ` ,ii!!“ ixG ^1, s,.. t!a; '.i -'., y ;. pa y ?� ^ nS'i.:fi '. t :p p� ' ,i +;,r•:�).: C D S ",:: AL..YCAR:. ' ;'�.'s�, S' � .t71 P"f�'!). r n , .u. ,..r r2 ; 'v l" :: �N: ; : ) ;if F : .,,. „'.. ,lit_:a.' S )~AR' .in... 1 k., .:1 n r, . �. '1... . C ., lien) N .,Jo. "'rt,'; ;';;(rpploy,eG a ;)' latne '{ t n V ttu i y ,rl. {,�iPr ,tR,,'t: �i'V, t.` '1:. ; t 'I 'fN, r 's6+ v ,o r P r:tr,d.r (,,.'1 : ,k�, r $ gttis:,I ""p rc d, ' er p'p° Total Agency Budget FY 99 -00 Total Program Budget FY 99 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 " Grapt, Bequest Only ( Projected,. • Expendtures , i Title: Program Director $�k ( ¢tt, �� Manuel— Arrighi, Name: Laura y pp' j '''' d ' t;r''S� .ii l Title: Case Manager Al N ame: Hewett, Sherri ( F : it .r d /'rttV '�,h et � I4 IIII Title: Child Care Worker +{a';r< ll; .41 .41 .41 Name: Yamamura, Lisa yr 1 (r LA 7,595.00 7,975.00 7,975.00 Title: , `Pnri. ./ at t''. tt11;'SSnFil at Name: Other Staff .I r z +•t t }'; a�,,t,•,,; 7,466,200 8,569,902 Title: 4 a sl, l 1 t 1 , 7aP Name: i $q;ir Title: [rg ; Name: , 7t Nit'0 ir,{t,iQQt )t'. Title: • Name: � ' t dl _; �:� _ :.. ... L r.i IY, t ,. a;.�`i,�,. TPA ,'Pn S�Tio } c.QUN' -t, ,M � 4 , �� ra; { :l iya, ;a';?,,,;rr „,. 218F /T 16P T / 257F/T 16P T / .`+. rp,': ti i ( Qb led,.�r?,;Tal�(S;,�� i,i:p 1: ? °:tin' r Irt i +'' " 7,466,200 7,595.00 8,569,902 7,975.00 positions) 7,975.00 I NSTRUCTI O NS' I. All admin strative and Direct Program Salar'es must be included. (Please exclude non- orooram Ka Hale O'Kawaihae of AGENCY /ORGANIZATION: Catholic Charities PROJECT NAME Catholic Charities Community & Immigrant Services BUDGET TABLE I DETAILS OF PERSONNEL SERVICES a) b) Salaries P= indicate if whether employee is -- F/T =Full Time Employed (30 -40 hours per week) P /T= Part-Time Employed (20 or less hours per week) a DESCRIPTION - - PRECEDING FISCAL -YEAR -• ;-.' FISCAL YEAR 2000 -01 Item # . Employee Benefits /Payroll Taxes,; " Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 Groh( Request Only `, Projected Expenditures 2. EMPLOYEE BENEFITS (TOTAL) . 1,039,200 1,142, 830 Health Insurance Dental Insurance Other Benefits (Specify) 3. PAYROLL TAXES (TOTAL) 743,500 789.050 950.00 950.00 FICA /.6S% 582.00 611.00 611.00 SUI (Unemployment Ins.) 2.25 % 171.00 179.00 179.00 Workers' Compensation 1 . % 76.00 80.00 80.00 TDI (Disability) 1. % 76.00 - 80.00 80.00 ,TOTAL (to he Ie ieet tii Tablel4) E ' ; ; .. 1,782,700 905.00 1,931 880 950.00 950:00 AGENCY /ORGANIZATION: Catholic Charities TABLE . 2 EMPLOYEE BENEFITS /PAYROLL TAXES Ka Hale O'Kawaihae of Catholic PROJECT NAME: Charities Community & Immigrant r Services * = MUST itemize as attachment(s). Applicable only to the' Grant Request Only Projected Expenditures" column. DESCRIPTION PRECEDING FI .' -;;,'. :... 1 ,. ... .. FIS C AR 2000 -01 ;\ ` ` ., ,.: YEAR Item # Expenses Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000 -01 Total Program Budget FY 2000 -01 Grant Request Only Projected Expenditures 1. PROFESSIONAL FEES (TOTAL) 1,268,800 2,895,287 Legal Accounting/Bookkeeping Audit Fees * Administrative Fees % • * Other 2. SUPPLIES (TOTAL) 399,000. 627,123 Office Program Consumable 3. TELEPHONE 84,900 106,537 4. POSTAGE & FREIGHT 30,600 30,898 5, OCCUPANCY (TOTAL) 1,103,100 844,906 Rent • Utilities Janitorial * Repairs and Maintenance 6. EQUIPMENT (TOTAL) * Purchase 104,700 240,695 * Rental Repairs and Maintenance d, • AGENCY /ORGANIZATION: Catholic Charities TABLE 3 DETAILS OF OTHER CURRENT EXPENSES = MUST itemize as attachment(s). Applicable only to the "Grant Request Only Projected Expenditure" column. Ka Hale O'Kawaihae of PROJECT NAME: Catholic Charities Community & Immigrant Services .. .. ...... . . . .: _. -.. ... .....:..., .. ,.. ... f, :J.' it r'I' r1l r' ,..:'• .,:: '.D ESCR1P.TjbN;,. i, r .. :. ..,•., : -. ,.: o , ; L ., -.,✓ ;, •x1 +:: Cr .. 1_ . S'�" 1 fiT':;x.., i'.jy f . .: I r # ,� L Y E AR'i',..:id'.;' a.; 1..1' fiPR$C6DTT�{G'ffSCA ! r,. !• . y'' ;i bi;r „v:: ;ti a ti':. :;r_: '- n.',Tip:. .'m .: �... ".a. .:4 "Yr: ; y :,., vl"r.�' !.M': 5. ^'.`f'r ' S1 ' J:$. a l.._,., A =s .JSCpL;YEARr2000 =Oa � �' na�l, ,.: i. . ... ": bt ,�..,t � „a; „. ;, ;a,, ,,o',,r, • 1 i r:.� # r Fri it • •y ti E :Jp Y 14 S: r i "it 1 r'r4i:rl f ' .P xpensessa' ; i , " „; °;ta- ;•h' %tl:r ? °''f'tr :, '' %' `k W „Y, #,r,r',TtR; +ri;`l .q,t;i' °s.'l,r "F:iS•: 1r;e sr ! Total Agency Budget FY 99 -00 Total Program Budget FY 99 -00 Total Agency Budget FY 2000.01 Total Program Budget FY 2000 -01 fra t x o t GranTRegues( Only rtz. `ojec ed h pc dl ores'' 7 INSURANCE (TOTAL) i I (1 t " ain:ky' ?; „ ;: , ly % : !. i.r}. Lti; t . , l' !t) 5 1 rlj = r °1 txrYn,I ,;' 1f.Y { Y8i%4i "� i . •,�, : ^ 1 0 t "*'” 1 t 4 k fi l,; t ., •r General Liability lt'i.'j, y.,r %;�:fid ? :JI''ss' "�; •. « .:; ' , .j'y +Lir l'� a 1P[�A r,, r ['. ': i'if > �'s P ' "Z: ;X •s $.i ry„f "'�; y rr _ - i. • Fire 1# 1 Ri ll# Y t " t'rr ' I ' � ' II "y � x i r d. ) „!7i ! r I i; 1 il Fx �l i i i ,. '., 1 ' ( , rii ,' % : r r AulO (,dpx + n' t " yt i.. '{ I . £t ' 7 ? .., - }.: ; dk > r.. ,a 1 r I ;?1.2 ' •YF .I Ir • i v �i • #Y rt r F,'il{ 4e ; I+ CI,.. lt . : 1 '�..`Gl i , 1 , j s l ;I, i 1- ; fb i! , „ 1 . .i ;C, T F2, i i . F :< kit.) • N DOA (Board Insurance ) ^' trl1 ,i PI r, .,a;. ly' "rrld V 'yli r h � ? 'lStGf'r^. q r , t ; d ' ^ 'S F i;;.1 ? : r - tv " N : r -' x t , )j ,f4ifp {r °y; #�ir!i p ;,;ji, i;..:r,; 8. PRINTING ^I ; ;:r 7.r , . I , ; ' p = 4 8 ;200 r . . F.r w ''' " f Si` / Z . F S .iL n °'1.,• fD r ;7 w {: : 5 .,+? yr Y .,;, r, 46.729 i c ! 'F. q : (, Ii. :i [ 11. r {• v, °. s:.:n! Yi „+* : (� i ' r Er' vi r < +' :;. ` v f'ti 9 PUBUCAI'ION i? ma i,; ` .` F ' .r L . !'( ,! :(4"'1II'I�,;; �r Tn�' ,i [! ..,B,X ir1 .� ...V:r i �?,i. .;t,tt #;�ti,;'e'd , : ; ,0 ;1� t r. 4:Z!'t "I` 1. ,, K il a'n. i'r :,�''i'iN: J�`,f'r r. 1. �•At. 1. 'l I , rt U r(p�'p31: ,.i � a�:�.y.,l: : :. •r1�4 _- l ,ta. 10. TMVGL (TOTAL) I 2 ' r '� #;' c tis: 292 900 r' 9 i u" . rt I "1, r) t} (Q r • 'v .t• r :. r « ','� , )T J I.I l Lv, f 1 , ? 1 ,'I" ii +, 4: «,fS i '(!''i:: , 3 �r:a 230,192 . rrll',. r = {L�l ^.'IMrri rz 9: k ■ f1434=�' " ek'F.�+yi� +' `,':1ee " "::': 1,1 Air Pare a.r. i % '; S 1 N' ,, ,:' •I� ,:i 1 ,•; ;'vrklt�;i.(r 1. ; n ;i; •: ;, Ni �P i ,u�'IbJ: }•y sl. 9 ;J ;:S;!r ;at:h . a . ' : :, Atfl1cu;i ' ;�h �FSt` lY'i s < 't( ^i ?1+ K [ 41:I. : SQ w. :,0 P -7•r: s. • n ,;v:I i•, .�.:,'.: , Per Diem : '' � " I Si '"N ,,..,��i :reY'v.• n p ,:� w' ^`I''i',)i}� 15`:V'j I, i"1't',h'y r ?i u i , , i t ' - anf l)- J'F:I •,a. ' @ r ;l % %' Auto Rental t r . i 1:IE i [4i';:'� ,. { yi ..,, {. �i .fl 2 IN d, . al ... ;�' 1 or Eiji l L: t i.,. 1 jl di. aly rt i l ;.. S / f'_ Y.'J .. ZS,1A I l r ; ' S 7 iJ fi �' >.K )r� .:': 1tt i a lYi 9,i , ;tl k l 'i,h w i'rf �3,' � i' e � e , I ,w F4 1'.t }. fJr,CYr�); ,.. it. AUTO MILEAGE REIMBURSEMENT N, '. . il 'S.i L ;✓x; :A�; ki' vq •r. ,,,._{ ,. .. ;1'14n f i:; r 1'L 'EI:,';') y :d�: ^h'I: ? ,,a 11 .I 5!;ri j ;i 11:.) :i' yrf^... i; , L,: • , y I r:..i7 12. AUTO GASOLINE PURCHASES A'� ,,IS{j 1 LiIY ;Lri.rt 4'(:f r ,'I V' i,( f R j1r h i �4' l s <set °,i'(S'J 1 , ' 4, i� Ic F a.p ,ti• i' . '��4' : Y ,.) �'rr . Ytt • -IRY 7,i j .... It (If, „�:, � #tk r� R4�� i y:.Y: ( ti(; 1 M1: ii ii r 4' xt ck'.4spS�,'.;t IF_'S ? (: :; S,i ^: c:' 1�' • r(y, i. e•,ii..�. 1.:i • U. MEMBERSHIP DUES I Q' ,'q . ,�: .I li `•,.wkii r h ? I,n 5, 700 .`I� A'd:4lir , , , ; , t f' J.IsI . ',i +,rl;, , ;iM1 µ ! ' .5 } "I; 11,1..4:1 {! "'' srt, l 6 117 , tp n'' i;P °Lit • !'k' °��:' �n4PJ'.. , a' pt'�ri.[; i4 le ; A SS, •14. STAFF TRAINING 3ii �, ; ,i., if i ; ? . ' 54,700 • Ir , ( r ' os tit),(, i:u .iy ft o-1 F _ .;�. , :1. P j' ?c;Jf 4g '• •al!'j;'.lr'�rnl;H . 1 c ! ?r. - 73,113 ih,l • ; r } V� - ;,<q. % �, �1 ,'•i'r'`j c) :6 „'f I'' r 1 `''!fix. .r: .:h.. 'F :. •Is OTHER i ,r n'Y9J.Y ,1 i ^ [ . ; s,:`r.! t. ;,i;,.:lai, t' i`fi" i ( 1. . wlf r:;;v: t - "c "'r;; : , ,.,tic: �ali ; Y IN �„ aY :rI'1r + )l a: :G :h re, ;,,,.;,;�;F :. #:1:. s( ,.., 7R'•'i °:1;'(� is !ii;' r Specific Assistance r-, i;•:1.' ✓S?: i r '- ':te' ?;;a`r% 323,100 %r'r''.ii .eXl itl ... i ( :; 71F' t.' .3a3.vi'� �Irx'.). Y' � F • 1. i r . L; CS[ {;i 394 532 , .'�7euG�• j.iT `7 ; , . " , , r o•L- i'� i_ 4.:ir ?';r'H. ",`h ;ll, . ' i ,;( ": ": Capital Purchases : {Mil 1 (13 xr til u,, 48,900 4 h�rMIF't'('r �t . r ;: c. .1 l f " y',' �:Y j '' . ' '! 60 479 r 4 ' Miscellanous it4. 80,100 ;`j:;ci;)�'� "' j( +;' ry# i;15(i,I'' 56,210 r;;Y.`'' '3i r'' S. rayments to Affiliated i • , • 0 • ; ,,rap;.;: =; nfs1.ri;:.iit;l ' i::'r. 15 000 ;: rs -; , ?':alTn'S!'P? ;i a )'y;: ,Pisa;: t 'f::: r: ;fs { ,.r, ;. 15 000 } _ Si +iJi 1`,::; "; •'A; ... '' . _ ;.�.;n.:x tdt.•Pp ". •.e. " "T y P's I1� T i 4 = ,.t : a,, 3 700 5,627,818 AGENCY /ORGANIZATION: Catholic Charities TABLE 3 (Continued) DETAILS OF OTHER CURRENT EXPENSES (OPERATING COSTS) • = MUST itemize as attachment(s). Applicable only to the "G rant Request Onl Protected Expen column. Ka Hale O'Kawaihae of Catholic Charities PROJECT NAME: Cnmmunityr & Immigrant Services I( iA - ;:'d�i!'• ° {..... : t,.. I( • ' C35L��ii'. s;� " '_t.. - " l':• - ns gyc, .. '•gar S ire•a.. % dt: , x ,,i(t: osifions. t�:n )' f- •..:r'.: ��c r r ,:�r { :�. : :' ,- r. t ( r 7liF . $ = � .^: 1 1 .'a, {e��, ^•:'Lu!i i' `'j ?)I('� "•� ,.1!ia iw q.: ,.i # }(' !.: r ?1'' kA `; ; .,;F K' t.Yll'i} {p� ` h; " ? r {x „�;p' {. � ;4{,� - ,,,,�I,,. i�? j:� r r aPdr';t {�grj';`ti ;�i- s "ti::1 Utl',vt Isc•',;t- .= ,! %Ltxlu jJr+ ^t',Zrlult 1G,t`4i;,w,,d,t� ti'rl F r: k +: �,, r,t `.1 : :),I, J r 6.[1:;c., , ,ic: s ; j t.1. { t{ ,•. r ^iii' .✓ . ri r ,�[ �i ! - . -k 7, E, , 2rnt'F .: s2`•ERECEbING=F i. " R , � - .a ,r•- ra`h, t >. Q ( >:: «,i: s: •'.SY e1,?I'{.:AJ.:S'dn..i. _nrtr ?n. r t F(.t _ r Sr.4 rna'V , 1.n •.m.fi , �tl ari(. :�'{.;. a , t . - v:bl. , t'.�� i�dFr �`L' "':ee. :..7 Npm. "a, . st`( ,:.,:' .�..' 9 -_� °': •- , t,. ?l .•5- t.`.t [SCAC'�'EAi2:2000�01'i::: •- Ck,!3 a :�.:: •yr+m -s; >rz iF2 ro:. l .,i3Y rS. kxdfr:; ^tM L.r: b.:�rf. • t Total Agency Budget B y B FY 99 -00 Total Program Budget g g FY 99 -00 Total Agency Budget B Y B FY 2000.01 Total Program og Budget FY Z000.OI - -'a:;r-. Orz " �"GranhRegU %4'r (Table I) TOTAL POSITION COUNT (P) 218 F/T 16 P/T FTE .41 257 FIT 16 PIT FEE .41 FTE.41 (Table l) TOTAL SALARIES ($) 7,466,200 7,595.00 8,569,902 7,975.00 7,975.00 (Table 2) EMPLOYEE BENEFITS/PAYROLL TAXES 1,782,700 905.00 1,931,880 950.00 950.00 !';o 0!:'; �fi �1' ., l M.r l'.! ;: TOTAU 1 FTr, ` I Ijj •. : °� •= ��' .w : ' .., -'. , -, .. ,,,. ,,::,. ,Stc �� #z _ ;v,{t "::, 9,248,900 8,500.00 10, 501, 782 8,925.00 e 8,925.00 FTE.41 „ yr }(IG Ft ..'n¢ .. o itsi4' 1't,z':.!su,I• , ,a , , ' o mq +TO A11,1 fvf$E191:1eg {d,[(s )> ' €: "�; ... ,...a.. ., ,� ,., r ,; t„ �, .!) {; )� nr, 218 F/T 16 P/T FTE 41 . 257F/T 16 P T / FTE .41 Ka Hale 0`Kawaihae of Catholic Charities AGENCY /ORGANIZATION: Catholic Charities PROJECT NAME: Community & Immigrant Services TABLE 4 SUMMARY OF PERSONNEL REQUIREMENTS Personnel Requirements: Salary ($) and Number of Positions (P) TABLE 5 SUMMARY OF EXPENSES Total Budget Summary of Personnel Services and Other Current Expenses (Table 4) TOTAL PERSONNEL SERVICES (Table 3) TOTAL OF OTHER CURRENT EXPENSES ,I,a'a,. c r :. 1 ,I:4kk'f i 9EI,SOALT- r Total Agency Budget FY 99-00 9,248,900 3,859,700 13,108,600 Total Program Budget FY 99 -00 8,500.00 8,500 Total Agency Budget FY 2000.01 10,501,782 5,627,818 16,129,600 AL 1 EAk i 20000 Total Program Budget FY 2000 -01 8,925.00 8,925.00 14 Req 8,925.00 8,925.00 to ' % :x „ ,F,, 4 iiilic ,hti ' " : 1' ' 'il l ti t ' l g f ficeg:- I fil l; '•■• 0 : 'ir • ,, z s Li ik.gc!, OJ i: iii, c --4:1;;:,,344,,,scivAtiv--igteAgstrotp.,,vg'?Ziea.9Vicliattp,glil . ', E;94ki l itlaWft - VP,(4 . 4L - yrj - ctn i ,,/,,,,, : „ ; •:;w:e.p e :.,,■,:., - sirs,. ' ' '' •' ' • ''• • • Ipiriolv 'fr- .. 11,4 (at4116.,}ctithnkicadirs-P,114,4A4S1:#V-t-{Wi'''-*);CI'-'ati'''''41-`7" Total Agency Amount Total Program Amount Amount Requested Amount Projected County of Hawaii 8,500 8,925 state of Hawaii 8,373,900 11,377,179 fiViztVlik,.11:::Alli;),?5,;4/,'Otle 0i Federal Funds 1,183,400 1,171,896 • '‘,t4.--.,.* ll *I' Private Foundations* 162,300 , P. 1.„.1),.',,b;,;,tfile,;(41,.}-0I,E tIZIK AitiVii(rilflrii,,:tt'Ailiu United Way Funds 664,700 681,200 ,.., i'o , , , ,,( ,,,, i•d.,, .5itift',4i.•ti:s .,,, Admissions ci, Donations . 1 / 031 no: ,NWr,:.•W+N't{tilgi V cist`i.lnistttirlk 1,317,000 F undraising tr ItligiLiiie,Mili:ii.4'llikwl:reff:fic.F1lfr.hl Pay Phone r . io le.iiril.D i*X4tIt?.:}if IilhOrntitti Vending Machines 4 Service/Program Fees 242,900 .t. 4 ..YP6V4,1 1 /I.i'AII-IAVIi`CIAI;t:1"....p. 193,500 Third-party reimbursement(s) b . ,. , Rfireli ,.:?-4 Id 1 • -,,,,-.• ., .i'lf: 't gril Ail e ` ? '-''' 4;1 Tuition -ht;('.1i:c1:?")•• riti,■21040,401? ts)ill):400iCirigitilrotr,kiltqlrit*Ntlig,.Tm.yr Others (Please list) Investment Income 93,800 93,800 Special Events 58,500 55,000 Miscellanous 1,189,400 1,081,100 r. i,1TOTAIJ:REV.ENIJ,ES it;',I?:, 12 8,500 13 2,740,400 AGENCY/ORGANIZATION: Catholic Charities TABLE 6 Summary of Income Ka Hale O'Kawaihae of Catholic Charities PROJECT NAME: Community & Immigrant Services cnurre r) a senarate sheet and indicate the amount requested, • • • • SUPPORTING DOCUMENTS • • FINANCIAL QUESTIONNAIRE and ATTACHMENT Stephen K. Yarnashiro Mayor • • ountp of JOathaii DEPARTMENT OF FINANCE 2$ Aupum Street. Room n8 • Hilo, Hawaii 96720 -4252 (808) 961-8234 • Fax (808) 961 -8248 HAWAII COUNTY NONPROFIT GRANTS (FY 2000 -01) Harry A. Takahashi Director S K. Schutte Deputy FINANCIAL QUESTIONNAIRE Please include as an attachment an explanation for all "NO" answers to questions #1 thru 11 below: Yes No • CS I . Has the agency operated continuously for the past three (3) years? • 2. Has the agency operated with a positive cash flow for the past (3) years? 40 (5 3. Does your Board of Directors approve a detailed cash flow budget before the beginning of each fiscal year? CS 40 4. Do your Board meeting minutes show that quarterly financial statements are approved? • 0 5. Is your equity balance at least 20% of your Total Liability balance? 40 0 6. Is your Total Current Asset balance larger than your Total Current Liability balance? S 0 7, Are bank reconciliations and accounting performed by someone other than the check signatory? • 0 8. Are you fully insured for the agency's vehicle(s) and building(s)? 0 • 9. Is your Workers' Compensation at least 2% of payroll? • 0 10. Are you current (not delinquent) on all payroll and payroll tax payments? 40 CS II. Is the agency free of any pending litigation, liens or judgments? 0 • 12. Within the past 12 months, has the agency applied for vendor or bank credit and was denied credit? If yes, please explain. Prepared by: ahuler K. (tt l3A- Print N ,pmJCitle Certified by: /Ho, M. / '!¢S�/oH Print Name of Executrie Director Signat S ;nature Dale v As the grant applicant, I certify that the agency has satisfactorily responded to each of the above questions and explained as needed. I hereby certify that this information is true and correct to the best of my knowledge. Agency: Phone: Date 0 0 9 • Catholic Charities Responses to Financial Questionnaire • 01/27/2000 2. Has the agency operated with a positive cash flow for the past three years? No, Catholic Charities has operated with a positive cash flow for the fiscal years ended 1996 and 1997 with a negative cash flow for 1998 due to the delay of payment for several of our government contracts. It is anitcipated that 1999 will have a positive cash flow. 4. Does your Board meeting minutes show that quarterly financial statements are approved? No, the Corporate Board of directors meets six times a year and the financial statements reviewed at the meetings are not necessarily the quarter's end financials but rather the most recent financial statements. 9. Is your Workers' compensation at least 2% of your payroll? No, for the past several years including 1998, the premium for Workers' Compensation has been below 2% The 1999 premium is less than 2.0% of payroll. • • ANNUAL FINANCIAL STATEMENTS and CURRENT AUDIT (1998) 9 • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION YEAR ENDED DECEMBER 31, 1998 (With Independent Auditors' Reports Required by OMB Circular A -133) TABLE OF CONTENTS Independent Auditors' Report on Compliance and Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A -133 Page Independent Auditors' Combined Report on the Basic Financial Statements and Additional Information 1 Financial Statements Statements of Financial Position__ 2 Statement of Activity 3 - 4 Statement of Functional Expenses 5 Statements of Cash Flows 6 Notes to Financial Statements 7 - 13 Additional Information Schedule 1 - Schedule of Expenditures of Federal Awards 14 - 15 Note to Schedule of Expenditures of Federal Awards 16 17- 18 19 -20 Schedule of Findings and Questioned Costs 21 - 22 Response of Catholic Charities of the Diocese of Honolulu 23 0 0 0 3536 HARDING AVENUE SUITE 605 HONOLULU, HAWAII 96816 INDEPENDENT AUDITORS' COMBINED REPORT ON l at. BASIC FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION To the Board of Directors Catholic Charities of the Diocese of Honolulu Honolulu, Hawaii Honolulu, Hawaii May 14, 1999 - 1 - • CHOO, OSADA & I FF, CPAs. INC. CERTIFIED PUBLIC ACCOUNTANTS TELEPHONE 1808) 734-1921 We have audited the accompanying statements of financial position of Catholic Charities of the Diocese of Honolulu (a nonprofit corporation) as of December 31, 1998 and 1997, and the related statements of cash flows for the years then ended, and the statements of activity and functional expenses for the year ended December 31, 1998. These financial statements are the responsibility of the management of Catholic Charities of the Diocese of Honolulu. 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, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 financial statements referred to above present fairly, in all material respects; the financial position of Catholic Charities of the Diocese of Honolulu as of December 31, 1998 and 1997, its cash flows for the years then ended, and the changes in its net assets for the year ended December 31, 1998 in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards we have also issued a report dated May 14, 1999, on our consideration of Catholic Charities of the Diocese of Honolulu's internal control over financial reporting and our tests of its compliance with laws and regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the basic financial statements of Catholic Charities of the Diocese of Honolulu taken as a whole. The accompanying additional information on pages 14 and 15 is presented for purposes of additional analysis, as required by U.S. Office of Management and Budget Circular A -133, Audits of States. Local Governments, and Non - Profit Organizations and is not a required part of the basic financial statements Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole. • • CATHOLIC CHARITIES OF 1tir, DIOCESE OF HONOLULU STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 1998 AND 1997 ASSETS 1998 Cash and cash equivalents - unrestricted S 612,899 Cash and cash equivalents - restricted 1,000,000 Investments 1,519,527 Receivables Government grants 1,897,686 Bequests 200.000 Program service fees and other, net of allowance for doubtful accounts of 5115 and 51,119 in 1998 and 1997, respectively 128,195 Promises to give 413,716 Property, plant and equipment, net 786,429 Prepaid expenses and other assets 11,434 LIABEL 1LES AND FUND BALANCES Liabilities Note payable to the Roman Catholic Church in the State of Hawaii Obligations under capital leases Accounts payable Advance from the Roman Catholic Church in the State of Hawaii Revenue received in advance Accrued liabilities The accompanying notes are an integral part of these financial statements. - 2 S 6.569,886 S 353,595 147 222 421,522 16.147 282,196 200 995 1,421, 677 /997 1,807,460 1,000.000 1.185 ,277 9 0 834.120 97.171 413,716 842.056 118,266 6.298.066 366.402 135,878 328.002 76,976 312.482 179.378 1.399.118 Net assets (deficit) Unrestricted Undesignated 422,347 ( 36,466) Designated 658,875 760,005 Property, plant and equipment 310,069 345,985 Temporarily restricted 2,756,918 2,829,424 Permanently restricted l 000.000 1.000.000 5 148,209 4.898.948 5 6.569.886 6,298.066 e CATHOLIC cnARrr FS OF THE DIOCESE OF HONOLULU • STATEMENT OF ACITVI7'Y YEAR ENDED DECEV{BER 31, 1998 (With Summarized Fimncd Information for 1997) Public support and revenue • Public support Conmbutions (including support from fund raising activities of $989,051 in 1998 and S454,215 in 1997) Non - monetary conmbutions (including donated materials of 59,338 in 1998 and S 5,087 in 1997) Indirect contributions Aloha United Way Catholic Diocese of Honolulu United States Catholic Conference Catholic Charities USA Revalue Government contracts Program service fees Project income Investment income Other Realized and unrealized gains on investments Net assets released from restrictions Sadsfaetion of usage restrictions Total public support and revenue The accompanying notes are an integral pan of these financial statemecn. Unrestricted S 644.817 550.739 55,677 646.691 - 421,838 83,448 5.352 - 28.422 1 802 797 ' 634 187 9,851,551 23,067 346,130 120.344 93,903 - 46,:75 113380 20,314 - 233 201 10158173 49019& 12,160,970 1.124,385 1 196 891 (I 196 391) S II 357_8§2 C=2,5919 Temporarily Permanently Restricted Restricted 1998 1997 Tara 1,195,556 723 551 55,677 66.262 646,691 650,274 505,286 496,346 5,352 2.450 a27 764 2 436 984 2 7.08078 9,874,618 8,458,613 466,474 395.266 93,903 98,415 159.855 135,776 20,314 16,565 231 207 117. 10,848 171 9.222.196 13,285355 11,930 ,204 13.285.355 II 930 704 CATHOLIC CHAR1T1FS OF THE DIOCESE OF HONOLULU STATEMENT OF ACTIVITY - continued YEAR ENDED DECF2IDER 31, 1998 (With Suounanzed Financial Information for 1997) Expenses Program service Comprehensive services for senior citizens $ 2,179,302 - 2,179,302 2,159.893 Child protection 2,083,517 - - 2,083,517 1,003,954 Counseling and youth services 400,199 - - 403,199 309,473 Residence for birth parent 334,048 - _ 334.048 310,712 Residence for mentally dl 39,899 - _ 39,899 109.275 Cultural transition 367.387 - - 367,387 389,325 Adoption - 188,733 - - 188,783 178,613 Therapeutic foster care 4486.7 - - 4,486,7 3,741,013 Weinberg ffokna)poor ftud 120.803 - 120,803 70,656 Shelter for homeless 785,599 - - 785,599 776,171 Intensive home -based services 249,115 - - - 249,115 236,712 Home and community-based services 626.902 - 626,902 756,209 Housing assistance 139,488 - 139,488 79,790 Children's mental health 89,378 - - 89,378 - Care- A- Van/Food Bank 62 036 - - 67,036 64 417 12 153 179 - - 12 151 179 10 186 263 Supporting services Mamm geem and general 663,250 - 663,250 696,567 Fundraising 219 665 - - 219 665 ill 541 Sall 15 - - 882.915 809 108 Total expenses 17 1116 096 11.016 094 10 995 expenses Increase (decrease) in net assets 321,767 ( 72 ,506) 249,261 934,333 Na astute, at bcginnivg of ye r l 069 524 2,829,424 I.00f) 000 d 39K 94 fl 1 964 1 l5 Na assert, at coal of year $ 1.391.291 2 / 75 6,911 l 000.000 5 I. 48:109 4.898.9x8 The accompanying rotes are an integral part of these financial ^- ftme^^- Temporarily Pemunendy 1998 1997 Unresoiaed Restricted Resin ed Tod Tod CA1NOIJC CHA9J11F3 OF TUE DIOCESE OF HONOLULU 6rA1o.awr OF FUNCTIONAL Da•ENSES YEAR 8340W DECEMBER 51.14 14111.6unwuiW Flamm 141 Salmi Employe Mew Payroll inn Total Wanes and reload aapanuu nu aaanp,nyml now are m i seam) pan of thug financial pawnma. Urynunwn and unoniurwn Imam) Carprr8Oerre CwmcLag Raider. Residence loamrra Non and Cane -A Sara. and For Fw TMnpeum Wankn' Shelia Han. Commumry- CMMaui; Vera Foe. Sons. CpiId Taub BIM McNally Cultural Fain KoevsWnor F. hued Based Hamm, Memal Foo6 Man;Cment 1991 1997 rocs n Prn.rno0 Sorry, Panna _JILL 7l45IBm d9➢RD120 fat_ Fmd Mrmr101 ' rtr t sr yljBHXI H oat .J1n6_ and n:89:21 9urdnn919 Val Ls) 5 1.329,157 113,034 219,693 177.533 19,64 237,166 134,121 2,112.139 229.542 109.151 29,301 20,523 1,302 28,414 13.052 273.966 144 015 ells _17.1.21 15119 ._1.621 20771 _ILJ1 196661 1,702,751 1,076,106 277,617 214,179 22,641 386,352 161,053 3,211,516 ProluawW H4 43,142 142,011 2.139 9,413 129 2,656 1.306 61,775 • Sappho 45,460 9.155 10,406 7.122 )0 6.525 1.396 721.154 942 14. ltltmn 21,435 11.784 3.767 3.256 103 7.265 3,091 21.730 • Pupate and a61ppm6 3,719 1.295 464 995 29 1.441 609 4,244 32 Occupancy 150,040 74,477 13,992 51,696 14,212 21.925 9,109 10,177 • Renal and maintenance. of cqupmm 26,870 9.567 6 4217 1.109 130 2,613 1.64 29,566 • Pannm, aid publication 5,257 2.307 1.106 639 )0 1.153 119 5.347 106 Tonal ardoanpornlan 119,211 14.231 9.970 4.991 14 1.996 4,163 99.614 366 Conlanenu, wnreauwu and cannabis 5,116 14.147 6,569 2.193 • 1.126 2.717 11.264 • Specific issuance la udnrduall 11,464 66,519 1,075 • 11.945 745.209 31,147 A.arda and Anna - 60.508 Maaanuuom 711 236 4 392 _3222 1I2I 961 _1112 140 133 130 local aapeau team, pnapoay mined 4pemu 2,169,163 2,061,117 391.513 301,177 39,649 362,926 186,34 4,415,516 110,193 5.257 11.521 17 4.310 230 3,759 1.931 55.160 S 3 . 1 62 _1143 21361 301 408 5157 3 21 L2227. 112 489.199 2i,2 22.142 367157 115 763 !aim 13 A6tnm carmen Swrgmnr Stn. m 369,759 176.353 596,911 86,715 60,905 58,076 16.018 6,094 10,771 8,011 _12_821 47 256 1.921 _LIU _6911 411.726 117,619 617,950 105,381 15,137 129,981 62,491 7.116.152 14,906 7,811 338,972 10 6`0 6416 197 135,507 76,739 6,752,162 6.513.715 767,311 526 363 7,607,727 20,076 947 2.310 475 1,403 19,014 44.475 1,111.421 399,119 22,616 2.113 44 755 915 16,796 1).7)1 371.706 361,691 9,078 3,039 1.371 1.443 1,096 14,30 2,047 112,160 11.471 3,011 52 104 251 11 5.253 13,414 36,164 26.441 167.514 11,501 4,603 11.313 2,025 217,104 5,560 1.040,101 990,41 5,927 1,169 11.533) 163 2,386 11,195 6,131 97,299 31.533 1,951 184 0 60 431 6,116 30,159 57.719 N.939 22,495 5,133 1,361 4,710 3,42 32.090 5.491 313.791 365.916 6,606 7,321 1,104 7.205 1,340 14,563 5.504 13.519 45.145 33,16 10.564 425.717 405,606 • 10508 2,06 15 875 702 3.73! 619 46l W 615 13141 266 245 '08 117 771.000 146,619 621533 131,911 19.318 623.116 119,665 12757,110 10,06.739 3.417 2.107 1,137 577 620)6 31,341 205,511 151,69 II2 11 222 1153 43 471 5 963 115121 149.115 626991 120411 12.221 62016 1L229 L19.45 91) .16 JO 995371 • • • • CATHOLIC CHARITIES OF IHE DIOCESE OF HONOLULU STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1998 AND 1997 1998 1997 Cash flows from operating activities Increase in net assets $ 249,261 934,833 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation and amortization 205,511 152,669 Realized and unrealized gains on investments ( 233,207) ( 117,561) Increase in receivables (1,294,590) ( 32,817) Decrease (increase) in prepaid expenses and other assets 106,832 ( 11,671) Increase in accounts payable and accrued liabilities 54,308 77,984 Decrease in revenue received in advance ( 30 286) ( 240,574) Net cash provided (used) by operating activities ( 942,171) 762 863 Cash flows from investing activities Proceeds from sale of investments Purchase of investments Payments for equipment Net cash used by investing activities Cash flows from financing activities Principal payments on capital lease obligations Principal payments on note payable to the Roman Catholic Church in the State of Hawaii Proceeds from long term borrowings Net cash used by financing activities Schedule of noncash investing and financing activities Equipment acquired under capital lease obligations Land and equipment acquired with note payable The accompanying notes are an integral part of these financial statements. - 6 - 550,735 ( 651,778) ( 84 864) ( 185,907) ( ( 503,086 (1,181,597) ( 28,822) ( 707 333) 53,676) ( 15,408) 12,807) 1.402 ( 66,483) ( 14,006) Net increase (decrease) in cash and cash equivalents (1,194,561) 41,524 Cash and cash equivalents at beginning of year 2.807.460 2.765.936 Cash and cash equivalents at end of year S 1,612 899 2,807,460 G • Summary of cash and cash equivalents Unrestricted 5 612,899 1,807,460 Restricted 1.000.000 1.000.000 $ 1.612.899 2.807.460 Supplemental disclosure of cash flow information Cash paid during the year for Interest 5 43,473 5,963 S 65,020 124,895 365,000 • • CATHOLIC CHARITIES OF IHE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMEN'T'S DECEMBER 31, 1998 NOTE 1 - ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES Organization Catholic Charities of the Diocese of Honolulu (Catholic Charities) is a voluntary nonprofit corporation. Its trustees are the Bishop of the Roman Catholic Church in the State of Hawaii and other persons who are appointed by the Bishop. Its principal purpose as presented in the preamble to its bylaws is described in the following words: "Catholic Charities of the Diocese of Honolulu is an expression of the servant Church, guided by Scripture and Catholic social teaching. In charity and justice it seeks to identify and respond to the needs of persons in Hawaii, at all times respecting those persons served as equals. Its mission and that of its affiliate agencies (Catholic Charities Community Services, Catholic Charities Elderly Services, Catholic Charities Family Services, and Catholic Charities Immigrant Services) is to provide service to those in need, to advocate for justice in societal structures and to empower the entire church and all people of good will to do the same. It seeks to exercise its mission with individuals, families and communities of every religion, race, and ethnic origin." Contributions Contributions received are recorded as unrestricted, temporarily resuicted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Contributions are recognized when the donor makes a promise to give to Catholic Charities that is, in substance, unconditional. Recognition of donor restrictions Donor - restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Cash and cash equivalents For the purposes of the statement of cash flows, Catholic Charities considers all highly liquid debt securities purchased with a maturity of three months or less to be cash equivalents. Investments Marketable securities included in investments are stated at fair value. Gains or losses on the sale of marketable securities are recognized on an average cost basis. Property, plant and equipment Owned property, plant and equipment is stated at cost or at fair value at date of donation. Major renewals and betterments are charged to the property accounts while replacements, maintenance, and repairs which do not extend the lives of assets are charged to operations. -7- • • CATHOLIC CHARITIES OF 1HE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1998 NOTE 1 - ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES - continued Property plant and equipment - continued Equipment under capital leases is stated at the lower of the present value of minimum lease payments at the beginning of the lease or fair value at the inception of the lease Owned property, plant and equipment is depreciated using the straight -line method over the estimated useful lives of the assets as follows: Furniture and equipment 3 to 5 years Automobiles 5 years J easehold improvements 15 years Equipment under capital leases is included in the statement of financial position and amortized over the lesser of the lease term or the estimated useful life of the related asset. Certain property items acquired with government grant support that must be returned after the grant period are excluded from the financial statements. Donated materials Donated materials are reflected as contributions at their estimated values at dace of receipt. Public support and revenue All public support and revenue is considered available for unrestricted use, unless specifically restricted by the donor or the terms of the grant. Income taxes Catholic Charities is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and is classified as an organization that is not a private foundation by the Internal Revenue Service. Catholic Charities is also exempt from Hawaii income taxes. Financial information for 1997 The accompanying statements of activity and functional expenses include prior year summarized information in total but not by net asset class or functional category Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly. such information should be read in conjunction with Catholic Charities' financial statements for the year ended December 31, 1997, from which the summarized information was derived. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. -8- • 0 CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1998 NOTE 1 - ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES - continued Reclassifications Certain reclassifications have been made to the 1997 financial statements to conform to the 1998 presentation. These reclassifications do not affect the increase in net assets as previously reported. NOTE 2 - CASH AND CASH EQUIVALENTS Cash consists primarily of deposits with Hawaii banks. At December 31, 1998, cash deposits not covered by federal insurance amounted to approximately $1,490,000. At December 31, 1998, restricted cash consisted of endowment funds required by the donor to be deposited with a federally insured Hawaii financial institution. Deposits to and withdrawals from that account are subject to the prior approval of the donor's representatives. NOTE 3-INVESTMENTS • • At December 31, 1998, the aggregate cost and market value of investments was as follows: Government bond funds Corporate bonds Equity securities funds Cost $ 567,673 29,654 632.508 $ 1,229,835 1.519 527 Investment income included on the statement of activity for 1998 consisted of the following: Interest and dividends $ 165.829 I ns custodial and investment advisory fees 5.974 - 9 - 5 159.855 Fair Value 587,294 31.032 901.201 CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1998 • • NOTE 4 - UNCONDITIONAL PROMISES TO GIVE At December 31, 1998, unconditional promises to give are as follows: Receivable in 1999 Receivable in 2001 Pus amount representing discount at 5.5% Present value of unconditional promises to give $ 411 7161 NOTE 5 - INTEREST IN CHARITABLE TRUSTS $ 320,325 160 162 480,487 66 771. A donor has established a trust which gives Catholic Charities a partial interest in trust assets after the death of the trust's beneficiaries. Management believes that the present value of the estimated future proceeds from this partial interest is not material to the financial statements. NOTE 6 - PROPERTY, PLANT AND EQUIPMENT At December 31, 1998, property, plant and equipment consisted of the following: NOTE 7 - LEASES Building $ 135,000 Furniture and equipment 986,892 Automobiles 535,161 Leasehold improvements 97 597 1,754,650 Less accumulated depreciation and amortization 1 198 771. 556,429 Land 230.444 • - 10 - $ 786 479 Catholic Charities leases (as lessee) both office space and residential units used in the Comprehensive Services for Senior Citizens, Family and Community Services programs under noncancellable operating leases expiring at various dates through 2009, some of which provide for renewals subject to renegotiation. Catholic Charities also leases equipment under capital leases that expire at various dates to 2001. • • CATHOLIC CHARITIES OF 1HE. DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1998 NOTE 7 - LEASES - continued Included in property, plant and equipment are the following amounts related to capital leases: Furniture and equipment $ 230,979 Less accumulated amortization 97.337 Future minimum lease payments under noncancellable operating and capital leases and the present value of future minimum capital lease payments at December 31, 1998 are as follows: Capital Operating Year ending December 31, Leases Leases 1999 $ 76,334 192,663 2000 64,846 157,652 2001 45,404 135,066 2002 10 220 2003 2,210 Thereafter 9.393 Total minimum lease payments I ess amounts representing interest at 7.5% to 10.5% Obligation under capital leases Annual rental expense included in occupancy expense on the statement of functional expenses for 1998 was as follows: Minimum rentals under noncancellable operating leases $ 192,663 Related party rentals (Note 11) 240,185 Other 160.733 186,584 507.204 39.362 S 147.222 $ 1 33.642 $ 593,581 CATHOLIC CHARfITIS OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1998 NOTE 7 - LEASES - continued Maturities of capital lease obligations for each of the five years succeeding December 31, 1998 are as follows: Year ending December 31 1999 71,302 2000 58,230 2001 17,690 2002 2003 - NOTE 8 - RESTRICTIONS ON NET ASSETS At December 31, 1998, temporarily restricted net assets were primarily restricted to the following programs and will be considered released from donor restrictions when expenses are incurred which satisfy the restricted purposes: Program activities Family services $ 766,251 Elderly services 1,297,422 Immigration services 111,186 Community services 5R2 059 Permanently restricted net assets consist of endowment fund investments to be held indefinitely, the income from which is expendable to support all program services. NOTE 9 - PENSION PLAN • • $775691$ Catholic Charities' non -contributory defined contribution pension plan covers all employees who meet the age and length of service requirements specified in the plan. Employer contributions to the plan are made at the discretion of the Board of Directors. For the year ended December 31, 1998, contributions were based on six percent of eligible salaries and wages and amounted to approximately $363,000, which have been included in employee benefits in the accompanying statement of functional expenses. - 12 - • • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1998 NOTE 10 - BANK LINES OF CREDIT Catholic Charities has lines of credit with two commercial banks totaling 3250,000. Advances bear interest at 1/2% above the banks' prime or base rates, and are secured by accounts receivable, inventory, furniture. fixtures and equipment. There were no outstanding borrowings under these arrangements at December 31, 1998. The terms of the lines of credit provide, among other things, for restrictions on additional borrowings, fixed asset additions, or the making of loans or advances. The terms also require the maintenance of a specified debt to net worth ratio, the furnishing of periodic financial statements, and the maintenance of insurance coverage. ' NOTE 11 - RELATED PARTY TRANSACTIONS Catholic Charities' note payable to the Roman Catholic Church in the State of Hawaii bears interest at 7% and is due on demand. Certain land and buildings used by Catholic Charities for program and supporting services are owned by the Roman Catholic Church in the State of Hawaii, and Catholic Charities pays no rent for the use of such premises. The fair value of such rent, approximately $240,000 for the year ended December 31, 1998. has been reflected in the financial statements as a contribution from the Diocese and as occupancy expense. NOTE 12 - YEAR 2000 ISSUE Catholic Charities could be adversely affected if the computer system it uses and those used by significant third parties (e.g. vendors, customers, third party administrators, etc.) do not properly process and calculate date - related information and data This is commonly known as the "Year 2000 (Y2K) Issue ". Management is assessing its computer' systems and business processes and intends to initiate actions to address the Y2K needs identified. Management is also assessing the actions being taken by significant third parties that interface with Catholic Charities. There can be no assurance that there will not be a material adverse effect on Catholic Charities if its actions and /or those of related third parties fail to address all significant issues in a timely manner. The costs of Catholic Charities' Y2K compliance efforts are expensed as incurred and are being funded with cash flows from operations. At this time, the costs of these efforts are not expected to be material to Catholic Charities' financial position or the results of its operations in any given period. Time and cost estimates are based on currently available information. Actual results could differ from those estimated. - 13 - CATHOLIC CHARITIES OF7HE DIOCESE OF HONOLULU SCHEDULE OF EXPENDITURES OF IEDERAL AWARDS YEAR ENDED DECEMBER 31, 1998 Federal Grantor/Pass-through Grantor/Program Tide Department of Health and Human Services Passed through City and County of Honolulu Department of Community Services State and Community Programs on Aging Grants Preventive Health Services Passed through State of Hawaii Department of Labor and Industrial Relations - Office of Community Services Refugee and Entrant Assistance Programs Social Services Department of Human Services Child Abuse and Neglect Grant University of Hawaii Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances Denotes a major program. See accompanying note to Schedule of Expenditures of Federal Awards. - 14 - Federal CFDA Grant Federal No. Number Eroendit 93.044 93.043 C -57068 S 49,741 C-65659 37,574 C -57108 105,945 C-64629 99,857 C -57138 20,116 C65649 199 182 332,415* C -57148 7,980 C-64699 7, 15268 93.566 OCS- POS-98 -48 22,582 OCS -POS -99-48 22.640 45, 222 93.669 DHS- 97 -CLTCB -6178 154,498 DHS- 99 -CLTCB -7174 159,132 313 630* 93.104 PC) #9584014 45`17 5 HS5 SM516L1-02 • A CATHOLIC CHARIT OF THE DIOCESE 4111 NOLULU SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - continued YEAR ENDED DECLAIMER 31, 1998 Federal Grantor /Pass - through Granmr/Proeam Title Department of Housing and Urban Development Passed through Catholic Charities - USA Housing Counseling Assistance Program Passed through City' and County of Honolulu Department of Community Services Community Development Block Grant Passed through State of Hawaii Department of Human Services • Emergency Shelter Grant Programs Passed through City and County of Honolulu Department of Community Services Emergency Shelter Grant Programs Passed through City and County of Honolulu Depan rent of Community Services Supportive Housing Program Department of State Passed through United States Catholic Conference Reception and Placement Program Federal Emergency Management Agency Passed through Hawaii Community Service Center Emergency Food Shelter Program ' Denotes a major program. See accompanying note to Schedule of Expenditures of Federal Awards. - 15 - Federal CFDA Grant No Number 14.169 14.218 14.231 14.231 14235 NONE 83.523 Federal Exnenditureg NONE S 31903 F- 38025(A) 109 758 ESGP AGREEMENT 97 17,739 F61258 40,000 F-61278. 17 545 75 284 C -54867 109 876 NONE 7 627 NONE 85.196 S 1.171,896 CATHOLIC CHARrlIFS OF IDE DIOCESE OF HONOLULU NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS DECEMBER 31, 1998 BASIS OF PRESENTATION • • 4 • The accompanying schedule of expenditures of federal awards includes the federal grant activity of Catholic Charities of the Diocese of Honolulu and is presented on the accrual basis of accounting The information in this schedule is presented in accordance with the requirements of OMB Circular A -133 Audit of States Local Governments, and Non -Profit Organzations. - 16 - S 3536 HARDING AVENUE SUITE 605 HONOLULU, HAWAII 961316 To the Board of Directors Catholic Charities of the Diocese of Honolulu Honolulu, Hawaii • • CHOO, OSADA & LEE CPAs. INC. CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of Catholic Charities of the Diocese of Honolulu (a nonprofit corporation) as of and for the year ended December 31, 1998, and have issued our report thereon dated May 14, 1999. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Catholic Charities of the Diocese of Honolulu's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Catholic Charities of the Diocese of Honolulu's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. _17_ TELEPHONE 18001 734 -1921 4 Honolulu, Hawaii May 14, 1999 • • This report is intended for the information of the Board of Directors, management, and the federal awarding agencies and pass - through entities. However, this report is a matter of public record, and its distribution is not limited. C4 4t c z 42, C 0i2 . 18- 3536 HARDING AVENUE SUITE 605 HONOLULU. HAWAII 96816 To the Board of Directors Catholic Charities of the Diocese of Honolulu Honolulu, Hawaii • • CHOO, OSADA &I FF, CPAs, INC. CERTIFIED PUBLIC ACCOUNTANTS - 19 - TELEPHONE 1 -1921 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 Compliance We have audited the compliance of Catholic Charities of the Diocese of Honolulu with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 1998. Catholic Charities of the Diocese of Honolulu's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Catholic Charities of the Diocese of Honolulu's management. Our responsibility is to express an opinion on Catholic Charities of the Diocese of Honolulu's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A -133 Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Catholic Charities of the Diocese of Honolulu's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Catholic Charities of the Diocese of Honolulu's compliance with those requirements. In our opinion, Catholic Charities of the Diocese of Honolulu complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1998. Internal Control Over Compliance The management of the Catholic Charities of the Diocese of Honolulu is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Catholic Charities of the Diocese of Honolulu's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133. We noted a matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect Catholic Charities' ability to administer a major federal program in accordance with the applicable requirements of laws, regulations, contracts, and grants. A reportable condition is described in the accompanying schedule of findings and questioned costs as item 98 -1. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would, be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose, all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe that the reportable condition described above is not a material weakness. This report is intended for the information of the Board of Directors, management and the federal awarding agencies and pass - through entities. However, this report is a matter of public record and its distribution is not limited. Honolulu, Hawaii May 14, 1999 • • - 20 - 4 • I Federal Awards • CATHOLIC CHARITIES OF 1138 DIOCESE OF HONOLULU SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 1998 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: Material weaknesses identified? yes X no Reportable conditions identified aot considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Internal Control over major programs- Material weaknesses identified? - Reportable conditions identified not considered to be material weaknesses? Type of auditor's report issued on compliance for major programs: unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A -133, Section .510(a)? X yes no Identification of major programs: CFDA Number 93.044 State and Community Programs on Aging Grants 93.669 Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low -risk auditee? Section II - Financial Statement Findings No matters were reported. • unqualified yes X no Name of Federal Program or Cluster Child Abuse and Neglect Grant X yes none reported S 300.000 X yes no • • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU SCHEDULE OF FINDINGS AND QUESTIONED COSTS - continued YEAR ENDED DECEMBER 31, 1998 Section $ - Federal Award Findings and Questioned Costs Finding 98-1 Federal program: All 9 • Criteria: Catholic Charities is required to identify all Federal awards received and expended in its various programs. Conditions: Two contracts containing federal awards were not listed in the schedule of expenditures of federal awards. Additionally, expenditure totals on the schedule did not agree with related detail records. Recommendation: The schedule of expenditures of federal awards should be reviewed for completeness and accuracy and copies of all contracts should be obtained by Administrative Services. PRIOR YEAR FINDINGS Catholic Charities resolved all findings for the year ended December 31, 1997, except for a finding that is repeated and has been rcported to the management of Catholic Charities of the Diocese of Honolulu as item number 98 -1. -22- • 9 • • N CATHOLIC CHARITIES the Diocese of Honolulu Board of Directors Most Reverend Francis X. Di Lorenzo' President Sandra Ohara - Board Chair Cathy Sekiguchi Vice - Chair Sharon Weiner Secretary Robert Tong Treasurer David Bello Rev. John Bolin, SW Mary Lou Brogan William Burton' Cliff Cisco Ray Depa Rose Domondon• Brandt Farias Rev. Clarence L. Fisher Gino L. Gabrio' William Gilardy Kent M. Keith Sr. Alicia Damien Lau, OSF Marianita Lopez Michael Y. Magaoay Rev. Raymond Malley, SM Lila Maranlz William Powell' Rev. Gary Secor Douglas C. Smith Michael Tikms Pauline Ventura Roger J. Wall James Walsh Rosemary Zais Executive Staff Jerome E. Rauckhorst' Diocesan Director Morris Masuda CCCS Executive Director Stella M. Q. Wong CCES Executive Director Ana Rosal CCFS Executive Director Sr. Earnest Chung, MM CC'S Executive Director • Trustee 250 Vineyard Street / Honolulu, Hawaii 96813-2495 / (808) 537 -6321 / Fax (808) 523 -8773 July 20, 1999 Choo, Osada & Lee, CPAs, Inc. Certified Public Accountants 3536 Harding Avenue, Suite 605 Honolulu, Hawaii 96816 Dear Sirs: As part of your audit of the records of Catholic Charities of the Diocese of Honolulu, you have issued an independent auditor's report in compliance with specific requirements applicable to nonmajor federal award program transactions. The report cited a recommendation that "the schedule of expenditures of federal awards should be reviewed for completeness and accuracy and copies of all contacts should be obtained by Administrative Services ". We will reinforce the procedure of reviewing documents prepared for the auditors for completeness and accuracy. Additionally, we will also reinforce the procedure that copies of all contracts be obtained by Administrative Services. If you have any questions regarding our response, please do not hesitate to contact us. Very truly yours, E. Ra ckhorst Diocesan Director — 23 — COMMUNITY SER' IMMIGRANT SERV ELDERLY SERVICE FAMILY SERVICES r • • S CATHOLIC CHARITIES OF lab, . DIOCESE OF HONOLULU FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION YEAR ENDED DECEMBER 31, 1997 (With Independent Auditors' Reports Required by OMB Circular A -133) q • TABLE OF CONTENT'S • • Independent Auditors' Report on Compliance and Internal Control Over Financial Reporting Based on an Audit of Financial Statements in Accordance with Government Auditing Standards Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A -133 Schedule of Findings and Questioned Costs Independent Auditors' Combined Report on the Basic Financial Statements and Additional Information 1 Financial Statements Statements of Financial Position 2 Statement of Activity 3 - 4 Statement of Functional Expenses 5 Statements of Cash Flows 6 Notes to Financial Statements 7 - 13 Additional Information Schedule 1 - Schedule of Expenditures of Federal Awards 14 - 15 Schedule 2 - Schedule of State Awards - Department of Health 16 17 -18 19 -20 21 -22 Response of Catholic Charities of the Diocese of Honolulu 23 C 3536 HARDING AVENUE SUITE 605 HONOLULU. HAWAII 96616 To the Board of Directors Catholic Charities of the Diocese of Honolulu Honolulu, Hawaii Honolulu, Hawaii May 5, 1998 • • CHOO. OSADA as LEE. CPAS. INC. CERTIFIED PUBLIC ACCOUNTANTS • ' INDEPENDENT AUDITORS' COMBINED REPORT ON THE BASIC FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION Q TELEPHONE 16081 734 -1921 We have audited the accompanying statements of financial position of Catholic Charities of the Diocese of Honolulu (a nonprofit corporation) as of December 31, 1997 and 1996, and the related statements of cash flows for the years then ended, and the statements of activity and functional expenses for the year ended December 31, 1997. These financial statements are the responsibility of the management of Catholic Charities of the Diocese of Honolulu. 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, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 financial statements referred to above present fairly, in all material respects, the financial position of Catholic Charities of the Diocese of Honolulu as of December 31, 1997 and 1996, its cash flows for the years then ended, and the changes in its net assets for the year ended December 31, 1997 in conformity with generally accepted accounting principles. 0 In accordance with Government Auditing Standards, we have also issued a report dated May 5, 1998, on our consideration of Catholic Charities of the Diocese of Honolulu's internal control over financial reporting and our tests of its compliance with laws and regulations, contracts and grants. Our audit was made for the purpose of forming an opinion on the basic financial statements of Catholic Charities of the Diocese of Honolulu taken as a whole. The accompanying additional information on pages 14 to 16 is presented for purposes of additional analysis, and, for the information on page 14 and 15, as required by U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments and Non -Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the basic financial statements taken as a whole. C oo; c'- a-ale ._ L �t , (Azc , A . -1- Cash and cash equivalents $ 2,807,460 2,765,936 Investments 1,185,277 389,206 Receivables Government grants 834,120 1,195,811 Bequests - 213 Program service fees and other, net of allowance for doubtful accounts of $1,199 and $1,149 in 1997 and 1996, respectively 97,171 116,166 Premiers to give 413,716 - Property, plant and equipment 842,056 476,006 Prepaid expenses and other assets 118.266 106.595 CATHOLIC CHARI IIIL THE DIOCESE OF HONOLULU • STATE4IENTS OF FINANCIAL POSITION DECEMBER 31, 1997 AND 1996 ' ASSEth LIABILITIES AND FUND BALANCES The accompanying notes are an integral part of these financial statements. - 2 - 1997' 1996 $ 6 298.066 5,049.933 Liabilities Note payable to the Roman Catholic Church in the State of Hawaii $ 366,402 Obligations under capital leases 135,878 26,390 Accounts payable 328,002 221,763 Advance from the Roman Catholic Church in the State of Hawaii 76,976 104,049 Revenue received in advance 312,482 553,056 Accrued liabilities 179.378 180.560 1.399.118 1.085.818 Net assets (deficit) Unrestricted Undesignated ( 36,466) ( 30,020) Designated 760,005 621,771 Property, plant and equipment 345,985 454,827 Temporarily restricted 2,829,424 1,917,537 Permanently restricted 1.000.000 1,000 000 4,898 948 3.964.115 $ 6.298.066 5,049,933 • • Public support and revenue Public support Contributions (including support from fund raising activities of $454,225 y in 1997 and $447,762 in 1996) S 391,860 336,691 - 728,551 628,429 Non - monetary contributions (including donated materials of S 5,087 in 1997 and $3,996 in 1996) 66,262 66,262 77,331 Indirect contributions Aloha United Way 650,214 - 650,274 646,691 se Catholic Diocese of Honolulu 297,835 198,511 - 496,346 486.173 United States Catholic Conference 2,450 - 2,450 4,025 Catholic Charities USA 764,125 764,125 49,252 Government grants 64.401. 64 401 12,918 1,408,681 .1,7_0_171 7.772 409 1.904.819 ✓ Revenue Government contracts 8,394,212 - - 8394,212 7,566,821 Program service fees 324,518 70,748 395.266 559.006 Project Income 98,415 - 98,415 73,037 Investment income - 28,962 106,814 135,776 124,016 Other 16,565 - 16,565 21,593 le Realized and unrealized gain (loss) on investments - 117 561. 117,561. ( 73,602) 62 7 295 123 9.157,795 8.270.871 10,271,353 1,658,851 11,930,204 10,175,690 toe Net assets released from restrictions Satisfaction of usage restrictions 746.964 ( 746 964) Total public support and revenue $ 11,018317 911.887 I 1 930 204 10.175,690 v se 4 STATEMENT OF ACTIVITY YEAR ENDED DECEMBER 31, 1997 (With Summarised FTnanclaldnforrnnllon for 1996) The accompanying notes are an integral part of these financial statements, Temporarily Permanently 1997 1996 Unrestricted Restricted Restricted lQta) jai V V v V I • STATEMENT OF AC17V1 Y - continued YEAR ENDED DECEMBER 31, 1997 (With Summarized Financial Information for 1996) V Expenses Program services Comprehensive services for senior citizens S 2,159,893 Child protection 1,003,954 Counseling and youth services 309,473 Residence for birth parents 310,722 Residence for mentally ill 109,275 Cultural transition 389,325 Adoption 178,613 Therapeutic foster care 3,741,013 Weinberg Kokua/poor fund 70,656 V Shelter for homeless 776,171 Intensive home -based services 236,712 Home and community-based services 756,209 Disaster response 79,790 Care -A- Van/Food Dank . 64.457 10.186.263 Supporting services Management and general 696,567 Fundraising 112 541 809.108 Total expenses J0.995371 Increase in net assets 22,946 911,887 Net assets, at beginning of year, as restated 1.046.578 1.917.537 tv Net assets, at end of year S 1.069.524 7 829.424 The accompanying notes are an Integral part of these financial statements. Temporarily Permanently 1997 1996 Unrestricted Restricted Restricted Total MLA 2,159,893 2,146,681 1,003,954 596)27 309,473 349,698 310,722 275,357 109,275 110,287 389,325 523.527 178,613 169,797 3,741,013 2,918,475 70,656 59,194 776,171 1,157,720 236,712 253,118 756,209 403,163 79,790 51,015 4.457 41.760 10.186 263 9. 056,519 696,567 695.426 112.541 91.363 809 108 786.789 14.995.371 9.843.308 934,833 332,382 7,000.000 3.964,111 3.631.733 1.000.000 4,898,94' 64.115, 6 • • c.rnlouc CIURnn OrT71L MCCDSE or HONOLULU 576173 1X7 of n r'CnONAL Qr()150 YEAR INDDO DECEMBER M. MI 031a S.nnvind Im.vw W .nnelen le 19911 Salarke Employee benerm Payroll uerr Tmal ubrkr and related tutMe The mentry r ylne urn are an M9tfn1 pen of here Droves Iuteena. Con9eehenlne Couvelby Rot-knee Reldece Soviets and For For For Senior Child youth Birth Mentally Chinni 00.1051t1 _ham ,Jp_ Pvmm 9n.kn 3 1,241.415 511.103 166,421 176.191 47.911 131.019 117,990 2,160,191 730.342 61.115 21,190 31.215 1197 22.260 13.141 241,121 131_411 19111 76.211 _11102 _338 12,212 _1L721 IT1612 1.610.444 679,722 209.043 213.912 37,617 115 101 133,911 2.779,631 PrereOmul Feu 27,131 236.993 1,162 2,724 460 1.950 960 31.524 Supplier 113.301 ' 6.350 2402 11.411 36 6,036 1.124 236.993 Telephone 19.551 5.991 1.514 2.111 161 7.410 2.060 23.114 'Drupe and ahlryml 1.706 726 505 563 39 673 793 4.659 Oren 151.549 13.711 11.457 57.9 :1 47,151 29.125 9.561 257.609 Rr' al EC mrlmrmme of ryulymenl 32.341 7.117 2.411 111 470 2.117 2.052 11.620 PrMIn) and publknkn 9.674 2,054 1,017 2,161 4 2,609 224 5.952 Travel and tampon/Hon 164,271 11016 591 6,636 991 9,101 3.411 11175 Conlennen, umrmbm and meningt 171 1623 1,190 291 15 1.015 566 7,765 Spectre inhume to Mlrtluah 12.316 • 33,341 4,707 • 3.161 • 210.711 Avert and run Mherllrnerm _14]y _SIB ...1.121 1191 125.2 5.111 1.617 11 97I Taal operate before leopeny related raptures 2.151,731 1.000,102 109,465 307,699 101.44 315,011 177,772 3.699,411 Deperrlebn and rmenlulien 6,971 2.701 1 3,025 731 3,669 141 39.716 Inman .--1.112 y1 • 61e -_ I.MO $ L199692 2.091.12 222471 112211 12122.2 119225 71.1ll 1.711.011 • Intensive Hoene ant Care -A Tlnpenk Weinberg Shelter Hoene. Community. Van Cohan! Foner KobJPeor For Dared Based Diune Feed Mrmpnne 1977 1 2n7RIikJ Ad2also S Fond Hmtkil Inku. _ 11=1 .BSR9_, tend Curd fimuhhu 71111 7 61.130 2,126 • 70,654 22.019 373.129 171.142 130,111 56,222 11.162 7.111 39765 _16112 7.113 169.114 207.419 715,114 13,105 6.611 _UM 60.021 59e Se..lm 246.334 24.233 6.513.713 5.76 27.256 1,001 767,312 77 JL452 .1602 SKI JD 321.559 29.117 7.107.777 7,07' 19.161 1,013 2.111 422 52,610 9.154 199,119 231 16,451 1.907 450 201 20,969 11.915 361.693 316 4.997 1.571 1.125 3.713 10.167 1.117 11,471 96 1.017 79 113 95 2.191 10.0,0 riUl 19 131.050 12.119 1.669 7.070 139.111 1.359 990.111 1.011 2.170 3,274 615 (121 6.256 1.157 71,511 61 3,439 320 410 350 4.901 19.606 34.939 16 30,760 6.011 1,736 2,699 31.277 2.665 165,916 AI 11.117 ( 574) 154 519 12,371 4.511 11,145 3! 31,110 • 1.627 • • 101.606 III 2.426 2: .1.722 1010 _1.222 21.1.1 _127111 _Li11 __ma ..14! 773,362 135,916 755.174 79.591 661.313 112,511 10.116,739 9.191 2197 716 115 199 61157 26.231 152.669 III 12 _LUl _l.ffiI _I 11L171 229121 221194 22219 2117 MALI 113.19 10.991.111 L061. V a • • CATHOLIC CHARIT. ES Or THE DIOCESE OF HONOLULU STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1997 AND 1996 1997 1996 ' Cash flows from operating activities Increase in net assets $ 934,833 332,382 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation and amortization 152,669 141,274 Reali7Pd and unrealized gain on investments ( 117,561) ( 26,398) Impairment of investment in real estate - 100,000 Decrease (increase) in receivables ( 32,817) 506,953 Decrease (increase) in prepaid expenses and other assets ( 11,671) 134,141 Increase (decrease) in accounts payable and accrued liabilities 77,984 ( 212,073) Decrease in revenue received in advance ( 240,574) ( 85,381) Net cash provided by operating activities 762,863 890,898 Cash flows from investing activities Proceeds from sale of investments 503,086 405,910 Purchase of investments (1,181,597) ( 70,079) Payments for equipment ( 28,822) ( 315,889) Net cash provided (used) by investing activities ( 707,333) 19,942 Cash flows from financing activities Principal payments on capital lease obligations ( 15,408) ( 6,729) Proceeds from long term borrowing 1,402 Net cash used by financing activities C 14.006) ( 6 729) Net increase in cash and cash equivalents 41,524 904,111 Cash and cash equivalents at beginning of year 2,765,936 1.861,825 Cash and cash equivalents at end of year 5 2.807 460 2 765 936 Supplemental disclosure of cash flow information Cash paid during the year for Interest $ 5,963 4,263 Schedule of noncash investing and financing activities Contributions of investments in marketable securities and real estate $ - Equipment acquired under capital lease obligations 124,895 Land and equipment acquired with note payable 365,000 The accompanying notes are an integral part of these financial statements. - 6 - 647,439 • • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 6 S NOTE 1 - ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTENG POLICIES AND USE OF • ACCOUNTING ESTIMATES Organization Catholic Charities of the Diocese of Honolulu (Catholic Charities) is a voluntary nonprofit corporation. Its trustees are the Bishop of the Roman Catholic Church in the State of Hawaii and other persons who are appointed by the Bishop. Its principal purpose as presented in the preamble to its bylaws is described in the following words: "Catholic Charities of the Diocese of Honolulu is an expression of the servant Church, guided by Scripture and Catholic social teaching. In charity and justice it seeks to identify and respond to the needs of persons in Hawaii, at all times respecting those persons served as equals. Its mission and that of its affiliate agencies (Catholic Charities Family Services, Catholic Charities Elderly Services, Catholic Charities Immigrant Services, and Catholic Charities Community Services) is to provide service to those in need, to advocate for justice in societal structures and to empower the entire church and all people of good will to do the same. It seeks to exercise its mission with individuals, families and communities of every religion, race, and ethnic origin." Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and /or nature of any donor restrictions. Contributions are recognized when the donor makes a promise to give to Catholic Charities that is, in substance, unconditional. Recognition of donor restrictions Donor - restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the name of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Cash and cash equivalents For the purposes of the statement of cash flows, Catholic Charities considers all highly liquid debt securities purchased with a maturity of three months or less to be cash equivalents. Investments Marketable securities included in investments are stated at fair value. Real estate included in investments are recorded at fair value. Gains or losses on the sale of marketable securities are recognized on an average cost basis: Property, plant and equipment Owned property, plant and equipment is stated at cost or at fair value at date of donation. Major renewals and betterments are charged to the property accounts while replacements, maintenance, and repairs which do not extend the lives of assets are charged to operations. -7- • • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1997 NOTE 1 - ORGANIZATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND USE OF ACCOUNTING ESTIMATES - continued Pronertv, plant and 'equipment - continued Equipment under capital leases is stated at the lower of the present value of minimum lease payments at the beginning of the lease or fair value at the inception of the lease. Owned property, plant and equipment is depreciated using the straight -line method over the estimated useful lives of the assets as follows: Furniture and equipment 3 to 5 years Automobiles 5 years Leasehold improvements 15 years Equipment under capital leases is included in the statement of financial position and amortized over the lesser of the lease term or the estimated useful life of the related asset. - Certain property items acquired with government grant support that must be returned after the grant period are excluded from the financial statements. Donated materials Donated materials are reflected as contributions at their estimated values at date of receipt. Public support and revenue All public support and revenue is considered available for unrestricted use, unless specifically restricted by the donor or the terms of the grant Income taxes lrholic Charities is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code and is classified as an organization that is not a private foundation by the Internal Revenue Service. Catholic Charities is also exempt from Hawaii income taxes. Financial information for 1996 The accompanying statements of activity and functional expenses include prior year summarized information in total but not by net asset class or functional category. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with Catholic Charities' financial statements for the year ended December 31, 1996, from which the summarized information was derived. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts . of revenues and expenses during the reporting period. Actual results could differ from those estimates. -8- CATHOLIC CHARTTT S OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1997 NOTE 2 - CASH AND CASH EQUIVALENTS * Cash consists primarily of deposits with Hawaii banks. At December 31, 1997, cash deposits not covered by federal insurance amounted to approximately $2,820,000. NOTE 3 - INVESTMENTS • • At December 31, 1997, the aggregate cost and market value of investments was as follows: Government bond funds $ 473,813 485,744 Corporate bonds 55,391 55,697 Equity securities funds 568 362 643.836 Investment income included on the statement of activity for 1997 consisted of the following: Interest and dividends I Piss custodial and investment advisory fees NOTE 4 - UNCONDITIONAL PROMISES TO GIVE At December 31, 1997, unconditional promises to give are as follows: Cost $ 1.097,566 1,185,277 $ 141,435 5,659 $ 135 776 Receivable in two years $ 320,325 Receivable in four years 160.162 480,487 Less amount representing discount at 5.5% 66.771 Present value of unconditional promises to give $ 413.716 - 9 - Fair Value a o D • • CATHOLIC CHARrr1FS OF i i - i1: DIOCESE OF HONOLULU NOTES TO FINANCIAL STAltrMErNTS - continued DECEMBER 31, 1997 NOTE 5 - INTEREST IN CHARITABLE TRUSTS - ' A donor has established a tnut which gives Catholic Charities a partial interest in trust assets after the death of the trust's beneficiaries. Management believes that the present value of the estimated future proceeds from this partial interest is not considered material to the financial statements. NOTE 6 - PROPERTY, PLANT AND EQUIPMENT At December 31, 1997, property, plant and equipment consisted of the following: Building $ 135,000 Furniture and equipment 901,481 Automobiles 476,235 J ra'ehold improvements 97,597 1,610,313 J its accumulated depreciation and amortization 998 257 612,056 Land 230,000 NOTE 7- LEASES Catholic Charities leases (as lessee) both office space and residential units used in the Comprehensive Services for Senior Citizens, Family and Community Services programs under operating leases expiring through 2009, some of which provide for renewals subject to renegotiation. Catholic Charities also leases equipment under capital leases that expire at various dates to 2001. Included in property, plant and equipment are the following amounts related to capital leases: Furniture and equipment $ 173,745 Less accumulated amortization 36.193 - 10 - $ 842.056 $ 137.552 NOTE 7 - LEASES - continued • • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STAILMENTS - continued DECEMBER 31, 1997 Future minimum lease payments under noncancellable operating and capital Leases and the present value of future minimum capital lease payments at December 31, 1997 are as follows: Year ending Dezember 31, 1998 $ 52,976 180,186 1999 54,192 159,976 2000 40,222 124,009 2001 33,396 106,304 2002 - 10,220 Thereafter 11.603 Total minimum lease payments Less amounts representing interest at 7.5% to 10.5% Obligation under capital leases Year ending December 31, Capital Operating Leases Leases 180,786 592.298 44.908 $ 135.878 Annual rental expense included in occupancy expense on the statement of functional expenses for 1997 was as follows: Minimum rentals under noncancellable operating leases $ 162,545 Related party rentals (Note 9) 238,160 Other 123.951 $ 524656 Maturities of capital lease obligations for each of the five years succeeding December 31, 1997 are as follows: 1998 $ 45,980 1999 48,382 2000 35,662 2001 5,854 2002 G CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1997 NOTE 8 - RESTRICTIONS ON NET ASSETS At December 31, 1997, temporarily restricted net assets were primarily restricted to the following programs and will be considered released from donor restrictions when expenses are incurred which satisfy the restricted purposes: Program activities Family services Elderly services Immigration services Community services Permanently restricted net assets consist of endowment fund investments to be held indefinitely, the income from which is expendable to support all program services. NOTE 9 - PENSION PLAN Catholic Charities' non - contributory defined contribution pension plan covers substantially all employees who meet the age and length of service requirements specified in the plan. Contributions to the plan are made at the discretion of the Board of Directors. For the year ended December 31, 1997, contributions were based on six percent of eligible salaries and wages and amounted to approximately 5312,000, which have been included in employee benefits in the accompanying statement of functional expenses. NOTE 10 - BANK LINES OF CREDIT Catholic Charities has lines of credit with two commercial banks totaling $250,000. Advances bear interest at 112% above the banks' prime or base rates, and are secured by accounts receivable, inventory, furniture, fixtures and equipment. There were no outstanding borrowings under these arrangements at December 31, 1997. The terms of the lines of credit provide, among other things, for restrictions on additional borrowings, fixed asset additions, or the making of loans or advances. The terms also require the maintenance of a specified debt to net worth ratio, the furnishing of periodic financial statements, and the maintenance of insurance coverage. -12- $ 733,728 1,158,485 121,478 815.733 $ 2,829 424 NOTE 13 - LITIGATION • CATHOLIC CHARITIES OF tHh DIOCESE OF HONOLULU NOTES TO FINANCIAL STATEMENTS - continued DECEMBER 31, 1997 NOTE it - NOTE PAYABLE TO t a ROMAN CATHOLIC CHURCH IN 1'HE STATE OF HAWAII - Catholic Charities has an unsecured 7% demand note payable of approximately $366,000 to the Roman Catholic Church in the State of Hawaii. Interest will be accrued quarterly and added to the principal balance. NOTE 12 - RELATED PARTY TRANSACTIONS Certain land and buildings used by Catholic Charities for program and supporting services are owned by the Roman Catholic Church in the State of Hawaii, and Catholic Charities pays no rent for the use of such premises. The fair value of such rent, approximately $238,000 for the year ended December 31., 1997, has been reflected in the financial statements as a contribution from the Diocese and as occupancy expense. A lawsuit related to fire damages in a residence rented by Catholic Charities has been filed against Catholic Charities, and is being contested. Another lawsuit by a former employee claiming wrongful termination is in arbitration. In the opinion of management, the outcome of any related proceedings will not materially affect Catholic Charities' financial position. NOTE 14 - PRIOR PERIOD ADJUSTMENT 3 D Certain errors resulting in an overstatement of previously reported property, plant and equipment were discovered during the current year. Accordingly, an adjustment of $216,031 was made to write -down Property, plant and equipment and net assets, for the year ended December 31, 1996. A corresponding entry was made to reduce previously reported depreciation and to increase net assets by $20,498 for the year ended December 31, 1996. - 13 - v v LI v • 0%4 tr.uuLt. I - oLIlr•uuLt, Ut GAl'rI'rUll VI(L.S Vr rLUENAL A WANUS YEAR ENDED DECEMBER 31, 1997 Federal Grantor/Pass - through Grantor/Program Ti0e Department of Health and Human Services Passed through City and County of Honolulu Department of Human Resources State and Community Programs on Aging Grants Preventive Health Services Passed through State of Hawaii Department of Labor and Industrial Relations - Otfce of Community Services • Refugee and Entrant Assistance Programs Social Services Department of Human Services Community Mental Health Block Grant University of Hawaii Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances • Denotes a major program. Child Abuse and Neglect Grant - 14 - Federal CFDA Grant Federal No. Pinter Expenditures 93.044 93.043 O C -48807 S 57,196 C -57068 38.243 C -48977 106,695 C -57108 89,888 C -48857 19.860 C -57138 C -49457 7,578 C -57148 6.610 14 188 93.566 OCS- POS -97 -37 27,401 OCS- POS -98 -48 26.668 54.069 93.667 DHS- 96-POS -4966 25.199 93.669 93.104 D 145- 91 -CLTCB -5534 189,713 DHS -97 -CLTCB -6178 j87.388 377.301' PO 19584014 • 5 1455 SM51611412 , ' 73.076 he v v • V V v b u .a .a. urwa �t aonoavu. n r. /10.1./10.1.00 . • •mnmutu YEAR ENDED DECEMBER 31, 1997 Federal Grantor/Pass- through Grantor/ProErarn Title Department of Housing and Urban Development Passed through City and County of Honolulu Department of Housing and Community Development Community Development Block Grant Passed through State of Hawaii Department of Human Services Emergency Shelter Grant Programs • Denotes a major program. Federal CFDA Grant Federal No. J4umbec Exvendiwret 14.219 F -62680 S 10 84Z 14.231 ESGP AGREEMENT 95 2,874 ESGP AGREEMENT 96 21,973 Passed through City and County of Honolulu Department of Housing and Community Development Emergency Shelter Grant Programs 14.231 F -49787 2 F -49987 36.611 Passed through City and County of Honolulu 86.478 Department of Housing and Community Development Supportive Housing Program 14.235 C -54867 _72./41 Department of State Passed through United States Catholic Conference Reception and Placement Program NONE NONE 2.950 Federal Emergency Management Agency Passed through Hawaii Community Service Center Emergency Food Shelter Program 83.523 NONE 88 619 Corporation for National and Community Services Passed through United States Catholic Conference Refugee Assistance Program 94.006 94ADNDCOI6 41,944 O 9 • v V V V V V V Uw a - oLItLUULG tit J 1 A lb A W ARUS - DEFAR&MEM' OF HEALTH YEAR ENDED DECEMDER 31, 1997 Program Title Community - Based Mental Health s+ Residential Services on the Island of Oahu Intensive Support Services and Community Based Treatment Home Services Mental Health Residential Treatment Services on the Islands of Oahu and Hawaii Outpatient Services Residential Treatment • Therapeutic Group Home/Therapeutic Poster Care Home Short-term Crisis Residential Services - 16 - ASO Contract Amount Expenditures Log (Excluding Prior Current No, federal Ponion) MO Period Total 96 -010 , S 129,402 S 32.351 64 701 97.05. 98-116 2,000,000 628 861 628.86 96-143 877,840 244 394 490503 735,29 98 -134 100,000 107 20Q 107.22 97 -015 133,498 60,416 60,059 120,475 97-019 267,011 )21.013 120.29$ 241 311 18L429 180.357 361 786 96-183 75,601 29.07$ 43,520 72 598 S:187,253 1,515.548 ?.902,809 3536 HARDING AVENUE SUITE 605 HONOLULU. HAWAII 96816 r i L . - REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORIVIED LN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Catholic Charities of the Diocese of Honolulu Honolulu, Hawaii • • CHOO. OSADA & LEE CPAs, INC. CERTIFIED PUBLIC ACCOUNTANTS a • TELEPHONE 100817]4.1921 We have audited the financial statements of Catholic Charities of the Diocese of Honolulu (a nonprofit corporation) as of and for the year ended December 31, 1997, and have issued our report thereon dated May 5, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance As part of obtaining reasonable assurance about whether Catholic Charities of the Diocese of Honolulu's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express :such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Catholic Charities of the Diocese of Honolulu's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not ner.searily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over financial reporting, which we have reported to management of Catholic Charities of the Diocese of Honolulu in a separate letter dated May 5, 1998. - 17 - I- C C C. L Ii e • • This report is intended for the information of the Board of Directors, management, and the federal awarding agencies and pass - through entities. However, this report is a matter of public record, and its distribution is not limited. Honolulu, Hawaii May 5, 1998 Chao--/ & ctcL -aier_ .0 Z C C-ac , R.c • - 18 - 3536 HARDING AVENUE SUITE 605 HONOLULU. HAWAII 96816 r r C L i • • CHOO. OSADA & LEE CPAs, [NC. To the Board of Directors Catholic Charities of the Diocese of Honolulu . Honolulu, Hawaii CERTIFIED PUBLIC ACCOUNTANTS e • TELEPHONE 18081 734_1921 "INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 Compliance ._ We have audited the compliance of Catholic Charities of the Diocese of Honolulu with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 1997. Catholic Charities of the Diocese of Honolulu's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of Catholic Charities of the Diocese of Honolulu's management. Our responsibility is to express an opinion on Catholic Charities of the Diocese of Honolulu's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133 Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Catholic Charities of the Diocese of Honolulu's compliance with those requirements and performing such other procedures as we considered nerensary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Catholic Charities of the Diocese of Honolulu's compliance with those requirements. In our opinion, Catholic Charities of the Diocese of Honolulu complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1997. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements, which is required to be reported in accordance with OMB Circular A -133 and which is described in the accompanying schedule of findings and questioned costs as item 97 -1. . - 19 - • 0 • • Internal Control Over Compliance The management of the Catholic Charities of the Diocese of Honolulu is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Catholic Charities of the Diocese of Honolulu's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal . control over compliance in accordance with OMB Circular A -133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. However, we noted other matters involving the internal control over compliance, which we have reported to management of Catholic Charities of the Diocese of Honolulu in a separate letter dated May 5, 1998. This report is intended for the information of management and federal awarding agencies and pass - through entities. However, this report is a matter of public record and its distribution is not limited. Honolulu, Hawaii May 5, 1998 use off, Duda. 4. 4- , G -c, }C.c. - 20 - CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 1997 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued Internal control over financial reporting: Material weaknesses identified? yes X no Reportable conditions identified not considered to be material weaknesses? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal Control over major programs: Material weaknesses identified? yes X no Reportable conditions identified not considered to be material weaknesses? yes X none reported • Type of auditor's report issued on compliance for major programs: unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A -133, Section .510(a)? X yes no Identification of major programs: Cl DA Number 93.044 State and Community Programs on Aging Grants 93.669 Child Abuse and Neglect Grant Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low -risk auditee? Section II - Financial Statement Findings No matters were reported. - 21 - • unqualified Name of Federal Program or Cluster $ 300,000 Yes X no s S C I. C C L • • CATHOLIC CHARTIIFS OF THE DIOCESE OF HONOLULU SCHEDULE OF FINDINGS AND QUESTIONED COSTS - continued YEAR ENDED DECEMBER 31, 1997 Section III - Federal Award Findi as and Questioned Costs - Finding 97 -1 Federal program: CFDA No. 93.044 State and Community Programs on Aging Grants Criteria: Services provided under the State and Community Programs on Aging Grants are limited to clients who are 60 years or older. Conditions: Although Catholic Charities personnel attempt to obtain documentation to verify the age of clients for the program, such documentation is not required for the provision of program services. Recommendation: Catholic Charities should require that documentation of a potential client's age be reviewed prior to the provision of program services. PRIOR YEAR FINDINGS Catholic Charities resolved all findings for the year ended December 31, 1996, except for a fording that is repeated and has been reported to the management of Catholic Charities of the Diocese of Honolulu as item number 9 of a separate letter dated May 5, 1998. t Board of Directors Most Reverend Francis X. DiLorenzo' President Cliff Cisco Chairman Sandra Ohara Chair -Elect Cathy Sekiguchi Vice -Chair Sharon Weiner Secretary William Powell' Treasurer David Bello Rev. John Bolin, SM' Mary Lou Brogan William Burton' Rose Domondon• Brandt Farias Rev. Clarence L Fisher Gino L Gabrio' William Gilardy Rev. Clyde Guerreiro, SSCC Kent M. Keith Sr. Alicia Damien Lau, O5F Marianita Lopez Mjfjael Y. Magaoay Rev. Raymond Malley, SM Lila Marantz Alexander Marrack Michael Pearring Rep. Alexander Santiago Michael Tiknis Robert Tong Pauline Ventura lames Walsh Rev. Msgr. Terrence AM. Watanabe { Executive Staff Jerome E Rauckhorst Diocesan Director Morris Masada CCCS Executive Director Stella M.Q. Wong CCES Executive Director Ana Rosa! CCFS Executive Director Sr. Earnest Chung, MM CCIS Executive Director • ® CATHOLIC DL. CHARITIES of the • Trustee 250 Vineyard Street / Honolulu, Hawaii 96813 -2495 / (808) 537 -6321 ( Fax (808) 523 -8773 May 8, 1998 Chao, Osada & Lee, CPAs, Inc. Certified Public Accountants 3536 Harding Avenue Suite 605 Honolulu, Hawaii 96816 Dear Sirs: As part of your audit of the records of Catholic Charities of the Diocese of Honolulu, you have issued an independent auditor's report on compliance with specific requirements applicable to nonmajor federal award program transactions. The report cited a recommendation that "Catholic Charities should require that documentation of a potential client's age be reviewed prior to the provision of program services ". We will reinforce the procedure of requiring some form of documentation (i.e. driver's license, Medicaid card, senior citizen's bus pass, State ID.) of a potential client's age before we provide program services. If you have any questions regarding our response, please do not hesitate to contact us. Very truly yours, Rauckho Director Diocese of Honolulu - 23 - • • COMMUNITY SE. IMMIGRANT SER ELDERLY SERVCCi FAMILY SERVICE • • IRS FORM 990 •UF • 990 rgan tion) .S Sc Sc 4 Al F I Tax Number and street (or P.O. box if mail is not delivered to street address) Room/suite JsA For Paperwork Reduction Act Notice, see page 1 of the separate instructions. D Employer identMcation number 99- 0073597 E Telephone number F Ora ► I I OMB No. 1543.0047 1 ®98 This Fenn is Cpaib Poe& sopemion , 19 B exemption applxaeal is pending 12,015,741. 560,377- 159,855- 31 226. 20,319- 12,787,513- 12,007,267- 513,300- 219,665- 12,740,231 47,281- 9,898,998- 201,980 - 5,198,209- Form 990 (1998) Fain 2758 (Rev. June 1998) Department Of the Treasury Internal Revenue Serves Please type or pnnt. Fee the original and one copy by the due date for filing your remm. See Insbuc5ms on bark Name 250 VINEYARD BOULEVARD Applicauon for ureuness..... ....... Certain ise, Income, information, and Other Returns a separate appiratlmtreadr rein _CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU Number, street. and room or suite e te rin(a P.U. Ow no finale met WSW .beet addreal • City. town or post Max state- and ZIP ®a Fora *mien edema see eofomun HONOLULU, HAWAII 96814 Note: Corporate income tax return fifers must use Form 7004 to request an extension d time to file. Partnerships RFJNICs, and trust must use Form 8736 to request an extension d time to file Fonn 1065. 1066, or 1041. 1 I request an extension of time until AUGUST 15, 1999 • to t@e� check only one): N Form 706 -GS(D) Form 99 T(sec401(2) Form 1120- ND(secstartam _ Form 6612 Form 706 -GSM Form 990 -T (trustodetranatom) Form 3520 -A Form 6613 Form 990 or 990 -Q Form 1041 (esnte>Im:tmpmon) Form 4720 _ Form 8725 Form 990-BL Form 1041-A Form 5227 Form 8804 Form 990-PF Form 1042 .r Form 6069 Form 8831 If the organization does not have an office or place of business in the (Lied States. check this box 2a For calendar year _ 1998 , or otter tax year beginning_ and 0 If this tax year is for less than 12 months. check reamc =radial realm ED Final retest Change in accounting period 3 Has an extension of time to file been previously granted fortis to yea ? ❑ yes ❑y No 4 State in detail why you need the extension _THE AUDIT OF THE ACCOUNTING RECORDS OF THE ORGANIZATION HAVE NOT BEEN COMPLETED IN ORDER THAT FORM 990 CAN BE PREPARED BY THE ORIGINAL DUE DATE • -OF THIS RETURN. _ 5a If this form is for Form 706- GS(D). 706- GS(T), 990-BL 990 -PF, 990 - 1,1041 (estate). 1042. 1121 - 10.4720, 6069. 8612. 8613. 8725. 8804. or 8831, enter the tentative tax, less any nonrefundable credits. See instructions b If this form is for Form 990 -PF, 990-T. 1041 (estate), 1042. or 8804. eras any refundable credits and estimated tax payments made. Include any prior year urapayrnam allowed as a credit S c Balance due. Subtract line 5b from line 5a. Include your payment withthisform, a deposit with ETD coupon if required. See instructions $ Signature and Verification Under penalties of penury. I declare that t have examined this firm, itnatsig aommpawidq schedules all St anerne. and to the best of my krWedge and belief. Ins true. correct and cosmetic and that 1 an aanor®d to prepare tee forma si ► 0 ''^r mfrs ► ^ERTIFIED PUBLIC ACCOUNTANT D II ' APRIL 29, 1999- - FILE ORIGINAL AND ONE COPY. The IRS will show below whether or not your application is approved and will return the copy. Notice to Applicant - To Be Completed by the IRS We HAVE approved your application. Please attach this form to your return. We HAVE NOT approved your application. However, we have granted a 10-day grace period Nom the later of the date shown below or the due date of your return (including arty prior extensions). This grace period is considered to be a valid extension of time for elections otherwise required to be made on a timely return. Please attach this form to your return. n We HAVE NOT approved your application. After considering the reasons stated in item 4, we cannot grand your request for an extension of time to file. We are not granting the 10 -day grace penod. n We cannot consider your application because it was fled after the due date of the return for which an extension was requested. ❑ Other. Please type Director ..CHOO, OSADA & LEE CPAs INC Number. street. and room or suite no, (or P.O. ben in imam is note daunt to creel address) or Print .3536 HARDING AVENUE SUITE 605 City. town or post Mee. state. and ZIP code. Fora tamp adducts. see ans. HONOLULU, HAWAII 96816 For Paperwork Keductlon ACt Notice. see the next page 8590F 1 5 000 JSA CUB Nn 1545-0145 • O Employer Meet; - .number -99- 0073947 Data If you want a copy of this form to be returned to an address other than that shown above please enter the adbess to which the copy should be sent Name Fenn 2758 (Rev 6 -98) Fonn 1998) X90 �� Statement of Functional Expenses Page 2 rganeshons must complete column (A). Commis (B). late required b section 501(cx3) and (4) agancations and section 4947 nonexem t chantable toots but ethers. See S Do not include amounts reported on line 66, Bb, 96, 1Ob, or 16 of Pan I. (D) Wndreving 22 Grants and allocations (attach schedule) Klan narmh ) 23 Specific assistance to individuals (attach schedule) ch 24 Benefits paid to or for members (attach schedule) 25 Compensation of officers, directors etc. 26 Other salaries and wages 62,491 27 Pension plan contributions 4, 526 28 Other employee benefits 3,306 29 Payroll taxes 6,416 30 Professional fundraising fees 31 Accounting fees 32 Legal fees 33 Supplies Telephone 35 Postage and shipping 36 Occupancy 37 Equipment rental and maintenance , 38 Printing and publications 39 Travel 40 Conferences, conventions, and meetings 41 Interest 42 Deprecation, depletion, etc (attach (atta schedule), , 43 Other expenses (itemize): a b PROFESSIONAL FEES c MI SCELLANEOUS d (A) Total 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43a 43b 43c 43d 43e 44 t p op (B) Program services 80,508 80,508 425,787 425,787 7,283,878 7,091,40 480,793 467,652 351,113 341,516 597,738 5 80,702 368,868 324,339 112,860 96,435 36,264 17,527 799,924 726,510 97,299 8 1,272 57,729 20,846 337,297 83,519 43,473 205,511 299,716 63,452 41, 581 167,269 1,118,423 259,248 994, 934 185,815 i Ilk (c) Management and 6 129,981 8,61 6,291 10, 620 26,798 14,38 5,25 67,854 11,895 6,124 32,090 14,563 1,892 38,242 79, 59, 685 e 44 Taal functions/ expenses (add lines 22 through 43) Ocpamzabons cam:debug columns (8)-{0), cany these totals to hoes 13-15 If "Yes," enter (I) the aggregate amount of these joint costs $ What is the organization's primary exempt purpose? _ PROVIDE SERVICE TO THOSE IN NEED- -- - All organizations must describe their exempt purpose achievements in a clear and concise manner. Slate the number of clients served, publications issued, etc. Discuss achievements that are not measurable. (Section 501(c)(3) and (4) organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.) a - SERVICES TO THE ELDERLY - SEE ATTACHED- Instructions an page 17.) 17,731 2,042 13,484 5,560 4,132 30,759 5,491 5,504 0 0 44,475 13,748 12,740,232 - 12,007,267 513,3001 219,665 Reporting of Joint Costs. - Did you report in column (B) (Program services) any joint costs from a combined educational campaign and fundraising solicitation? ► n Yes LXJ No ; (g) the amount allocated to Program services S I the amount allocated to Management and general $ • and (Iv) the amount allocated to Fundraising $ Statement of Program Service Accomplishments(See Specific Instructions on page 20.) Ptoprsm service Expenses Requited for 501(0(3) and (4) cogs., and 4947('x1) trusts; but optional for others.) (Grants and allocations $ ) 2,055,112 b - SERVICES TO FAMILIES - SEE ATTACHED (Grants and allocations $ ) 8,677,130 c - SERVICES TO IMMIGRANTS - SEE ATTACHED- (Grants and allocations $ ) 349,939 d - SHELTER FOR THE HOMELESS - SEE ATTACHED_ (Grants and allocations $ ) 925, 086 e Other program services (attach schedule) (Grants and allocations $ ) re f Total of Program Service Expenses (should equal line 44, column (B), Program services) • 12 007, 267. 8E1020 1.000 Form 990 (199 9) Part IV S m m 'C d a 3 co z Balance Sheets (See fic Instructions on page 2(L) Note: Where required, attached schedules and amounts within the description column should be for end-of-year amounts only. .iSA 8E1030 1.000 45 Cash - non - interest- bearing 46 Savings and temporary cash investments 47a Accounts receivable b Less: allowance for doubtful accounts 48a b 49 50 Pledges receivable Less' allowance for doubtful accounts Grants receivable (A) Beginning of year 47a 128,195 III 47b 97,1714 328,195 MININIENIC 48a 413,716 48b 413,716 913,716 834,120 49 1,897,686 Receivables from officers, directors trustees, and key employees (attach schedule) 50 51a Other notes and loans receivable (attach I schedule) 51a Less: allowance for doubtful accounts 51b 51c Inventories for sale or use 52 Prepaid expenses and deferred charges ................ 118,266 53 Investments - securities (attach schedule) SEE SCHEDULE 9 54 1, 185,277 55b 55c b 52 63 54 66a Investments - land, buildings, and equipment: basis b Less* accumulated deprecation (attach schedule) 56 Investments - other (attach schedule) 57a Land, buildings, and equipment basis b Less' accumulated depreciation (attach schedule) 58 Other assets (describe ► 55a b7a 57b 1,984,650 1,198,221 59 Total assets (add lines 45 through 58) (must equal line 74) 60 Accounts payable and accrued expenses 61 Grants payable 62 Deferred revenue 63 Loans from officers, directors, trustees, and key employees (attach schedule) 56 842, 056 58 63 (B) End of year it Pale S 673,943 46 246,514 2,133,517 46 1,366,385 11,434 1,519,527 786,929 6 298,066 59 6,569,886 584,356 60 638,664 61 312,982 282,196 64a Tax - exempt bond liabilities (attach schedule) 64a b Mortgages and other notes payable (attach schedule) 366, 402 64b 353,595 65 Other liabilitiestdescribe► _SEE SCHEDULE 10 ) 135, 87 8 65 147, 222. 66 Total liabilities (add lines 60 through 65) 1, 399, 118 66 1, 421, 677 Organizations that follow SFAS 117, check here le Lxi and complete lines 67 through 69 and lines 73 and 74. IN 67 Unrestricted 1,069,524 1,391,291 68 Temporarily restricted 2,829,424 68 2,756,918 69 Permanently restricted 69 r� 1, 000, 000 1, 000, 000 Organizations that do not follow SFAS 117, check here • I I and complete lines 70 through 74. El 70 Capital stock, trust principal, or currert kinds 70 71 Paid -in or capital surplus, or land, building, and equipment fund 71 72 Retained earnings, endowment, accumulated income, or other funds 72 73 Total net assets or fund balances (add lines 67 through 69 OR lines 70 through 72; column (A) must equal line 19 and column (B) must equal line 21) 4, 898, 948 73 5,148,209 74 Total liabilities and net assets /fund balances (add lines 66 and 73) 6,298,066 74 6, 569, 886. 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 determined by the . nformation presented on its return. Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments. (A) Name and address (B) Title and average hours per week devoted to postal (C) Compensator (If not paid, order 4.) (o) Contnbuow to employes benefit pan a deferred mmpeneebon (q Excels', account and other allowances SEE SCHEDULE 2 _ ® Form rag (1998) Reconciliation of nue per Audited Financial Stateme with Revenue per Return (See Specific Instructions, page 22.) a Total revenue, gains, and other support per audited financial statements , lo- b Amounts included on line a but not on line 12, Form 990: (1) Net unrealized gains on investments . S 201,981- (2) Donated services and use of facilities $ 295,861- (0) Recoveries of prior year grams , - , , f (4) Other (specify):_ _ _ _ f Add amounts on lines (1) through (4) ► c Line a minus line b d Amounts included on line 12, Form 990 but not on line a: (1) Investment expenses not included on line 6b, Form 990 , , $ (2) Other (specify):_ _ _ _ $ Add amounts on lines (1) and (2) ► e Total revenue per line 12, Form 990 line c plus line d) List of Officers, Directors, Instructions on page 22.) JsA 9E1040 1.000 iliation of Expenses per Audited Financial Statements with Expenses per Return a Total expenses and losses per audited financial statements ► b Amounts included on line a but not on line 17, Form 990: (1) Donated services and use offao1 s $295,861- (2) Prior year adustments reported on lineal, Form 990 S (3) Losses reported on line 20, Fonn 990 f (4) other(speciyk_ _ _ f Add amounts on lines (1) through (4) - ► e Line a minus Fine b d Amounts included on line 17, Form 990 but not on line a: (1) Investment expenses not included on fine 6b. Fonn 990 .5 (2) Other (specify):_ _ _ s e 75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than 5100,000 from your f' -� organization and all related organizations, of which more than 510,000 was provided by the related organizations? lie I I Yes If 'Yes,' attach schedule - see Specific Instructions on page 22. e a 295,861 — 12,790,232. . Add amounts on lines (1) and (2) ► d e Total expenses per line 17, Form 990 ► e 12 787,513 (linec pluslined) ► e 12 790,232 Trustees, ana Key employees (List each one even if not compensated; see speonc n No Form 990 1998) ■ Other Information (See S structions on page 23.) � enI S description of each activity this return? a statement common 85c 85d 85. 85f s reasonable 86a 86b a7a 87b • 295,861 N/A N/A N/ N/A N/A 76 77 78a 78b 79 80a X 81b 82a 83a 83b 84a 84b 85a 85b 85g 85h 88 89b X X 76 Did the organization engage in any activity not previously reported to the IRS? If 'Yes' attach a detailed 77 Were any changes made in the organizing or governing documents but not reported to the IRS? If 'Yes.' attach a conformed copy of the changes. 78 a Did the organization have unrelated business gross income of $1,000 or more during the year covered by b If "Yes,' has it filed a tax return on Form 990-1' for this year? 79 Was there a liquidation, dissolution, termination, or substantial contraction dreg the year? If 'Yes," attach 80a Is the organization related (other than by association with a statewide or nationwide organization) through membership, governing bodies, trustees, officers, etc., to any other exempt or nonexempt organization? b If "Yes," enter the name of the organ P. • and check whether it is U exempt OR ' I none�'npt 81 a Enter the amount of political expenditures, direct or indirect, as described in the instructions for line 81 b Did the organization file Form 1120 -POL for this year? 82a Did the organization receive donated services or the use of materials, equi x ad, or facilities at no charge or at substantially less than fair rental value? b If "Yes," you may indicate the value of these Bens here. Do not include this amoard as revenue in Part I or as an expense in Pat II. (See instructions for reporting it Pat III) 1 82b 1 83a Did the organization comply with the public inspection requirements for returns and exemption appliations? b Did the organization comply with the disclosure requirements relating to quid pe quo contributions? , , 84a Did the organization solicit any contributions or gifts that were not tax deductible? b If "Yes," did the organization include with every solicitation an express statement that such canbibutions or gifts were not tax deductible? 85 501(c)(4), (5), or (6) organizat - a Were substantially all dues nondeductible by members? b Did the organization make only in -house lobbying expenditures of $2,000 or less? If 'Yes" was answered to either 85a or 85b, do not complete 85c through 85h below unless the organizati received a waiver for proxy tax owed for the prior year. c Dues, assessments, and similar amounts from members N/A d Section 162(e) lobbying and political expenditures N/A e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices WA. f Taxable amount of lobbying and political expenditures (line 85d less 85e) N/A g Does the organization elect to pay the section 6033(e) tax on the amount in 85f? Ih If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount in 85f to i estimate of dues allocable to nondeductible lobbying and political expenditures for the following taxyear? 86 501(c)(7) organizations.— Enter. a Initiation fees and capital contributions inc4drd on line 12 N/A b Gross receipts, included on line 12, for public use of dub facilities N/A 87 501(c)(12) organizations. —Entec a Gross income from members or shareholders N/A b Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or received from them.) N /A 88 At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership? If "Yes," complete Part IX 89 a 501(c)(3) organizations.— Enter: Amount of tax imposed on the organization during the year under: section 4911 P. ' section 4912 P. • section 4955 b 501(c)(3) and 501(c)(4) organizations —Did the organization engage in any section 4958 excess benefd transaction during the year? If "Yes,' attach a statement explaining each transaction c Enter. Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955, and 4958 • d Enter: Amount of tax in 89c, above, reimbursed by the organization • 90 a List the states with which a copy of this return is filed ► b Number of employees employed in the pay period that includes March 12, 1998 (See instructions.) [ 90b I 91 The books are in care of Ili -DENNIS IKED Telephone no. ► ( 808)537 -6321— Located at ► 250 SOUTH VINEYARD ST. Z113+4 I -96813 92 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041 —Check here 11•1 and enter the amount of tax - exempt interest received or accrued during the tax year JSA 13E1041 1 000 • 192 I Palle Yes 6 No X X— X- X X— I Jl Analysis of Income-1111.cing Activities (See Specific Instructio age 27.) gross amounts unless otherwise Program service revenue: HOUSING RENT Unrelated business income Excludeg 512, 513, or 514 (E) Related or exempt function income (A) Business code ( o Am ((C). F Code col Amount 271,753 - 16,526 ADOPTION FEES COUNSELING FEES - 167,114. .IMMIGRATION SVC. FEES- INCOME % 11,081 Please Sign Here Under penalties ands a it �i true, r r correct, S ' and complete. Declaration a of prepa - 93,903. .PROJECT Medicare/Medicaid payments Fees and contracts from government agencies Membership dues and assessments , , . Interest on amino* and to por°r °d' neebesn. • Dividends and interest from securities . Net rental income or (loss) from real estate: debt - financed property not debt - financed property Net rental Income a goes) trorn personal propene . Other investment income Gem a Woe) from sales at ousts other elan sedentary Net income or (loss) from special events . Gross profit or (loss) from sales of inventor ' - Si g r c D a t e Type or print name and title. Paid Preparer's Use Only Preparers signature 9 Data Check f self- employed .1 Preparer's SSN Firm's name (or -CHOO, OSADA, yours ifsen<mployed)' - 3536 HARDING and address Hr1Nf1T.TIT.tl & LEE CPAS INC. AVENUE SUITE 605 NT ON Oh 99 0284479 14 159,855 4. � = =rt. -*-° ° ' "c " ul>� . - pYrr -t_ tiF-Vira'at% : " 11 �.tret - 18 31,226 Other revalue: a SCHEDULE 3 20,314. .SEE Subtotal (add columns (B), (D), and (E�) je z - = -, ••r.• _ 191.081 580 691. pxotawr.‘ Inrormanon rtegarulnq I axauie Auoslulanes ttlontylete Ions ran IT me res uox on line cos Is cnecReu.t Name, address, and employer identification number of corporation or partnership Percentage of ownership interest - Nature of business activities Total income End-of-year assets N/A % % % Please Sign Here Under penalties ands a it �i true, r r correct, S ' and complete. Declaration a of prepa r (other accompanying � officer) is based on all n informal/4n an cl witch prspwar � Amy kn edge. I 0 olq� ilk J Y2oMc R&clY iCbia s I �)o( r�s�n) 'Ditu cirort_. ' - Si g r c D a t e Type or print name and title. Paid Preparer's Use Only Preparers signature 9 Data Check f self- employed .1 Preparer's SSN Firm's name (or -CHOO, OSADA, yours ifsen<mployed)' - 3536 HARDING and address Hr1Nf1T.TIT.tl & LEE CPAS INC. AVENUE SUITE 605 NT ON Oh 99 0284479 ZIP •4 9f,R1 F. • Form 98o (1998) Enter indica 93 a b c d e f 9 94 96 96 97 a b 98 99 100 101 102 103 b e d • 104 106 Total (add line 104, columns (B). (D), and (E)) Note: Line 105 plus line 1 d, Pad ,, should equal tie anrount on line 12, Pad t) Relationship of Activities to the Accomplishment of Exempt Purposes (See Specific Instructions on page 28.) Line No. Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment .isa 13E1050 2.000 of the organization's exempt purposes (other than by providing funds for such purposes). SEE SCHEDULE 4 Page 6 771,772. (See instructions on page 1. LIST eacn one. it mere are none, enter - - None. - - ) (a) Name and address of earls employee paid more than $50,000 (b) Type of serene (b) Title and avenge hours pawed( devmnd triennia (c) Compensation (d) Contribution to employee barekt plans & drfenr.d r e- mew.atoai (e) Espana account and other allnwanrm -SEE SCHEDULE 6 - Total number of others receiving over $50,000 for professional services ► _0_ 1 ' ys -„ .- . -. _ � *'- 'r� - " -' : r $uwr-�s °''r�- t" "- -- """fir ^`° . Total number of other employees $50.000 over ► ; :v .. > >. ?_i:^- �..,`' st (See instructions on page 1. List each one (whether individuals or firms) If there are none enter "None.") (a) Name and address of each independent contractor paid more than $50,000 (b) Type of serene (c) Compensation -NONE Total number of others receiving over $50,000 for professional services ► _0_ 1 ' ys -„ .- . -. _ � *'- 'r� - " -' : r $uwr-�s °''r�- t" "- -- """fir ^`° . '('' SCHEDULE A (Form 990) Department cf the Treasury Internal Revenue Service Name of the organization CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU 99-0073597 — Lung eompensanon or me rive ntgnest ram tmptoyees Other Than Officers, Directors, ana I rustees Part II Org F ion Exempt Under Section 1(c)(3) ( Private Foundation) and Section 501(e), 50 1(k), ) , or Section 4947(a)(1) Nonexempt Cha Supplementary Information See separate instntl orss. • Must be completed by the above organizations and attached to their Form 990 or 990 Compensation of the Five Highest raid Independent Contractors for Professional Services For Paperwork Reduction Act Notice, see page 1 of the Instructions for Forth 990 and Form 990 JSA 8E1210 1.000 OMB No. 1915 -0017 • 1098 Employer ldentelesmon number Schedule A (Form 990)1998 Sched ere A (Form 990) 1998 Part IV (a) Name(s) of supported organ ization(s) Page 2 Reason for Non - Private Foundation Status (See instructions on pages 2 through 4.) The organization is not a private foundation because it is' (Please check only ONE applicable box.) 6 — A church, convention of churches, or association of churches. Section 170(b)(t)(A)0). 6 A school. Section 170(b)(1)(A)(i). (Also complete Part V, page 4.) 7 A hospital or a cooperative hospital service organization. Section 170(b)(1)(A)(ru). 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 t70(b)(1)(A)(iii). Enter the hospltars name, city, and state ► 10 n An organization operated for the benefit of a college or university owned or operated by a governmental unit Section 170(b)(1)(A)(w). f � (Also complete the Support Schedule in Part N-A) 11a LXJ An organization that normally receives a substantial part of its support from a governmental unit or from the general public. Section 170(b)(1)(A)(vi). (Also complete the Support Schedule it Part IV-A,) 11 b A community trust. Section 170(b)(t)(A)(w). (Also complete the Support Schedule in Part IV-A.) 12 An organization that normally receives: (1) more than 33 113% of its support from contributions, membership fees and gross receipts from activities related to its charitable, etc., functions - subject to certain exceptions. and (2) no more than 33 113% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Also complete the Support Schedule in Part N-A.) 13 El An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations described in: (1) lines 5 through 12 above; or (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)(2). (See section 509(a)(3).) Provide the following information about the supported organizations. (See instructions on page 4.) JSA 14 n An organization organized and operated to lest for public safety. Section 509(a }(4). (See instructions on page 4.) 8E1220 1 (b) Line number from above Yes No Part III Statements AbouSivities IP 1 During the year, has the organization attempted to influence national, state, or loci legislation, including any attempt to influence public opinion on a legislative matter or referendum? 1 X If "Yes, enter the total expenses paid or incurred in connection with the lobbying activities • $ 7 7 7 Organizations that made an election under section 501(h) by filing Form 5768 must complete Part VI -A. Other organizations checking 'Yes,' must complete Part VI-13 AND attach a statement giving a detailed description of the lobbying activities. 11417 Siat,Alkaa '11W4, 2 During the year, has the organization, either directly or indirectly, engaged in any of the following ads with any of its trustees, directors, officers, creators, key employees, or members of their famines, or with any taxable organization with which any such person is affiliated as an officer, dire tor, trustee, majority owner, or principal beneficiary. a Sale, exchange, or leasing of property? r41/4.; 2 X— b Lending of money or other extension of craft? - 2b X c Furnishing of goods, services, or facilities? d Payment of compensation (or payment or reimbursement of expenses if more than 51,000)7 e Transfer of any part of its income or assets? 2c X 2d X X— 2 e If 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? b Attach a statement toe lain how the organization determines that individuals or receiving grants x� rg organizations receivi or loans from it in furtherance of its charitable programs qualify to receive payments. (See instructions on page 2.) 4a X Sched ere A (Form 990) 1998 Part IV (a) Name(s) of supported organ ization(s) Page 2 Reason for Non - Private Foundation Status (See instructions on pages 2 through 4.) The organization is not a private foundation because it is' (Please check only ONE applicable box.) 6 — A church, convention of churches, or association of churches. Section 170(b)(t)(A)0). 6 A school. Section 170(b)(1)(A)(i). (Also complete Part V, page 4.) 7 A hospital or a cooperative hospital service organization. Section 170(b)(1)(A)(ru). 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 t70(b)(1)(A)(iii). Enter the hospltars name, city, and state ► 10 n An organization operated for the benefit of a college or university owned or operated by a governmental unit Section 170(b)(1)(A)(w). f � (Also complete the Support Schedule in Part N-A) 11a LXJ An organization that normally receives a substantial part of its support from a governmental unit or from the general public. Section 170(b)(1)(A)(vi). (Also complete the Support Schedule it Part IV-A,) 11 b A community trust. Section 170(b)(t)(A)(w). (Also complete the Support Schedule in Part IV-A.) 12 An organization that normally receives: (1) more than 33 113% of its support from contributions, membership fees and gross receipts from activities related to its charitable, etc., functions - subject to certain exceptions. and (2) no more than 33 113% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Also complete the Support Schedule in Part N-A.) 13 El An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations described in: (1) lines 5 through 12 above; or (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)(2). (See section 509(a)(3).) Provide the following information about the supported organizations. (See instructions on page 4.) JSA 14 n An organization organized and operated to lest for public safety. Section 509(a }(4). (See instructions on page 4.) 8E1220 1 (b) Line number from above note: you may use me wonrsneer In me insnVanxis ran convening norm me accrual m me casn memo, or acoountinq Calendar year (or fiscal year beginning In) ► (a) 1997 (b) 1996 (c) 1995 (d) 1994 (e) Total 15 Gifts, grants, and contributions received. (Do not include unusual grants. Seeline28.) 10,983,529 -10,383, 915 --8,826,890 192 -38,549,526 16 Membership fees received --8,355, 17 Gross receipts Fran admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is not a business unrelated to the organization's charitable etc. purpose 512,676----633,338----936,889----784,842--2,867,745 144, 808 175,348 349 18 Gross income from interest, dividends, amounts received from payments on securities loans (section 512(a)(5)), rents, royalties, and unrelated business taxable income (less section 511 taxes) from businesses acquired by the organization after June 30, 1975 135,776 19 Net income from unrelated business activities not included in line 18 -156,417 ----612, 20 Tax revenues levied for the organization's benefit and either paid to it or expended on its behalf 21 The value of services or facilities furnished to the organization by a governmental unit without charge. Do not include the value of services or facilities generally furnished to the public without charge 22 Other income. Attach a schedule. Do not Schedule A Form 990) 1998 Support Schedule (Complete 23 Total of lines 15 through 22 24 Line 23 minus line 17 25 Enter 1 %of line 23 16,565 21,593- 168,163 47,325- 253,646 11, 648,546 -11, 183, 654- 10,088,359- 9,362,707 - 42,283,266 11, 135,870 - 10,550, 316 - 9,151,470- 8,577,865- 39,415,521 116,485 111,836 100, 883 93, 62T °'" - 26 Organizations described In lines 10 or 11: a Enter 2% of amount in column (e), line 24 ► 26a 388,310 b Attach a list (which is not open to public inspection) showing the name of and amount contributed by each person (other than a governmental unit or publicly supported organization) whose total gifts for 1994 through 1997 exceeded the amount shown in line 26a. Enter the sum of all these excess amounts • JSA Suitor)) 26b 26c 26d 26e 261 c Total support for section 509(a)(1) test Enter line 24, column (e) d Add: Amounts from column (e) for lines: 18 612,349 22 253,646- e Public support (line 26c minus line 26d total) f Public support percentage (line 26e (numerator) divided by line 26c (denom 27 Organizations described on line 12: a For amounts included in lines 15, 16, and 17 that were received from a 'disqualified person' attach a list to show the name of, and total amounts received in each year tram, each 'disqualified person." Enter the sum of such amounts for each year. N/A (1997) (1996) (1995) (1994) b For any amount includedin line 17 that was received from a nondisqualified person, attach a list to show the name of, and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) 35,000. (Include in the list organizations described in lines 5 through 11, as well as individuals.) After computing the difference between the amount received and the larger amount described in (1) or (2), enter the sum of these differences (the excess amounts) for each year (1997) (1996) (1995) (1994) c Add: Amounts from column (e) for lines: 15 • 27d 27e 27g 27h 20 17 d Add: Line 27a total e Public support (line 27c total minus line 27d total) Total support for section 509(a)(2) test Enter amount on line 23, column (e) •I 271 g Public support percentage (line 27e (numerator) divided by line 271(denominatv)) 8E1221 2.000 ou checked a box on tine 10, 11, or 12.) Use ca 19 26b 16 21 and line 27b total , 940,000 • ► ► • 27c • • h Investment Income percentage (line 18, column (e) (numerators divided by line 271 (denominator)) ' 28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 1994 through 1997, attach a list (which is not open to public inspection) for each 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 not include these grants in line 15. (See instructions on page 4.) AI Pa& 3 940,000 39,415,521 1,805,995 37,609,526 95 % School A (Form 990) 1998 JSA 9E1230 1 000 Private School Que afire (See instructions on page 4.) (To be completed 0 by schools that checked the box on li n Part IV) 29 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws, other governing instrument, or in a resolution of its governing body? 30 Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures, catalogues, and other written communications with the public dealing with student admissions, programs, and scholarships? 31 Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during the period of solicitation for students, or during the registration period if it has no solicitation program, in a way that makes the policy known to all parts of the general community it serves? If "Yes," please describe; if "No," please explain. (If you need more space, attach a separate statement) 32 Does the organization maintain the following: a Records indicating the racial composition of the student body, faculty, and administrative staff? b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships? d Copies of all material used by the organization or on its behalf to solicit contributions? If you answered "No" to any of the above, please explain. (If you need more space attach a separate statement) 33 Does the organization discriminate by race in any way with respect to a Students' rights or privileges? b Admissions policies? c Employment of faculty or administrative staff? d Scholarships or other financial assistance? e Educational policies? f Use of facilities? g Athletic programs? h Other extracurricular activities? 34a Does the organization receive any financial aid or assistance from a governmental agency? b Has the organization's right to such aid ever been revoked or suspended? If you answered "Yes" to either Ma or b, please explain using an attached statement N/ A If you answered "Yes" to any of the above, please explain. (If you need more space, attach a separate statement.) 35 Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 4.05 of Rev. Proc. 75 -50, 1975 -2 C.B. 587, covering racial nondiscrimination? If "No," attach an explanation Page 4 Check here ► a Check here ► b _ if the organization belongs to an affiliated group. if you checked "a" above and limited contror provisions apply. Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.) W Affiliated group totals WI To be completed for ALL electing organization 36 Total lobbying expenditures to influence public opinion (grassroots lobbying) 37 Total lobbying expenditures to influence a legislative body (direct lobbying) 38 Total lobbying expenditures (add lines 36 and 37) 39 Other exempt purpose expenditures 40 Total exempt purpose expenditures (add lines 38 and 39) 41 Lobbying nontaxable amount. Enter the amount from the following table If the amount on line 40 is - The lobbying nontaxable amount Not over 5500,000 20% of the amount on line A0 Over 5500,000 but not over 51,000,000 , , ,$100.000 plus 15% of the excess over $500,000 Over 51,000,000 but not over 51,500,000 , , 5175.000 plus 10% of the excess over$1,000,000 Over $1,500,000 but not over 577,000.000 $225,000 plus 5% of the excess over 51,500.000 Over $17,000,000 $1,000,000 42 Grassroots nontaxable amount (enter 25% of fine 41) 43 Subtract line 42 from line 36. Enter -0- if line 42 is more than line 36 44 Subtract line 41 from line 38. Enter -0- if line 41 is more than line 38 Caution: If there is an amount on either line 43 or line 44, you must file Form 4720. 36 (e) Total 37 38 3 40 ' Lobbying ceiling amount 46 (150% of line 45(e)) • • - - •,rl<_ -_: -; r .� - - ° * :�.. •., a f A :may = - - -- "'. t r - �.i.. `: ..f V] vi = ' . : t,- " " �.' � ' _ � - ... r • , ..-at- - —_.^ 47 Total lobbying expenditures 42 43 44 _ 4441 _ ` M 1 3 �' = _ ivy- s -"' ' - Calendar year (or fiscal year beginning in) • (a) 1998 (b) 1997 (c) 1996 (d) 1995 (e) Total Lobbying nontaxable 46 amount ' Lobbying ceiling amount 46 (150% of line 45(e)) • • - - •,rl<_ -_: -; r .� - - ° * - __ _ : � ; , - _ . ; . « -...: _'- °':kc - - : , ` - -' .; = ' . : t,- " " �.' � ' _ � - ... r • , - —_.^ 47 Total lobbying expenditures Grassroots nontaxable 48 amount - Grassroots ceiling amount 49 (150% of line48(e)) - I^ ., „•ii�, „ = .',.a!' - -• '- -:: ,i ".: >.' - - -; :•,�_. e- _ .^_ ,._ __,. >.HU,. -- - - =� « -- _...r: m ..' ._ -=:..; ri. _._; — l ad:,'. :. - � .- - _ i' - Grassroots lobbying 50 expenditures Schedule A (Form 990) 1998 Lobbying Expenditures lecting Public Charities (See instructio age 6.) (To be completed ONL an eligible organization that filed Form 5 Part VI -A JSA Part VI -B 8E1240 1 000 N/A 4-Year Averaging Period Under 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 for lines 45 through 50 on page 7.) Lobbying Expenditures During 4 -Year Averaging Period Lobbying Activity by Nonelecting Public Charities For reporting only by organizations that did not complete Part VI -A) (See instructions on page 8.) During the year, did the organization attempt to influence national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of: a Volunteers b Paid staff or management (Include compensation in expenses reported on lines cthrough h.) , c Media advertisements d Mailings to members, legislators, or the public e Publications, or published or broadcast statements f Grants to other organizations for lobbying purposes g Direct contact with legislators, their staffs, government officials, or a legislative body h Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means I Total lobbying expenditures (add lines c through h) ( Yes v X— X No X X X X X If "Yes" to any of the above, also attach a statement giving a detailed descnption of the lobbying activities. Amount Page Y Sch• 1e A (Form 990) 1998 ir Part VII Information Regan ransfers To and Transactions and Ref hips With Noncharitable Exempt Organizatl 51 Did the reporting organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations? a Transfers from the reporting organization to a noncharitable exempt organization of (f) Cash (1q Other assets b Other transactions: (I) Sales of assets to a noncharitable exempt orgartaation (11) Purchases of assets from a noncharitable exempt organization (iii) Rental of facilities or equipment (N) Reimbursement arrangements (v) Loans or loan guarantees (vi) Performance of services or membership or fundraising so& itatiors c Sharing of facilities, equipment, mailing lists, other assets, or paid employees d If the answer to any of the above is 'Yes; complete the following schedule Cohan (b) should always show the fair market value of the goods, other assets, or services given by the reporting organization. If the organization received less than fair market value in any transaction or sharing arrangement, show in column (d) the value of the goods other assets or services received (a) Line no. (b) Amount involved (_) Name of nontanhable exempt aaan¢atim N/A -N /A JsA eE1250 1.000 la) Name of organization (d) Description of transfer, trarsaradts and shoring arrangements lc) Description of relationship Page 6 Sla(i) a)) Yes N o X X 52a Is the organization directly or indirectly affiliated with, or related to, one or more tax - exempt organizations described in section 501(c) of the Code (other than section 501(c)(3)) or in section 5277 ► Yes E No b If "Yes " complete the following schedule: (b) Type of organization CATHOLIC CHARITIES OF THESE OF HONOLULU FORM 990 PART I - SALE OF NON - INVENTORY ASSETS SCHEDULE 1 PART I I IMF 8 SALE OF INVFSTMENTS JAI SECURITIES FIRST HAWAIIAN BANK SERVICES ENDOWMENT FUND FIRST HAWAIIAN BANK INVESTMENT MONITOR ACCOUNT • SALES GAIN PRICF COST {I OSSI 238,014 222,611 15,403 47,184 31,361 15,823 285,198 253,972 31,226 a a FEI#99 -0073547 o t CATHOLIC CHARITIES OF FORM 990 PART V - OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES NAME AND ADDRESS SANDRA OHARA 1001 BISHOP STREET #2920 PACIFIC TOWER HONOLULU, HAWAII 96813 COMPENSATION !IMF AND AnnRFSS ME HRS_/WEEEK BISHOP FRANSCIS X. DILORENZO PRESIDENT 0 1184 BISHOP ST. HONOLULU, HAWAII 96813 COMPENSATION NAME AND ADDR SS 1111 F HRSPNEEK CATHY SEKIGUCHI VICE - CHAIRMAN 0 737 BISHOP STREET, #2600 HONOLULU, HAWAII 96813 COMPENSATION NAME AND ADDRESS TITI F HRSIWEEK SHARON WEINER SECRETARY 0 737 BISHOP STREET #2860 HONOLULU, HAWAII 96813 COMPENSATION NAME AND ADDRESS TITI F HRSM/EEK ROBERT TONG TREASURER 0 1164 BISHOP STREET #1164 HONOLULU, HAWAII 96813 COMPENSATION 0 0 0 0 0 DIOCESE OF HONOLULU TITI F CHAIRMAN OF THE BOARD • CONTRIBUTION TO EXPENSE ACCT BENEFIT PLANS & OTHER ALLOWS 0 0 CONTRIBUTION TO EXPENSE ACCT BENEFIT PLANS & OTHER ALLOWS O 0 CONTRIBUTION TO EXPENSE ACCT BENEFIT PLANS & OTHER ALLOWS O 0 CONTRIBUTION TO EXPENSE ACCT BENEFIT PLANS & OTHER ALLOWS O 0 CONTRIBUTION TO EXPENSE ACCT BENEFIT PLANS & OTHER ALLOWS O 0 FEl#99 -0073547 SCHEDULE 2 HRS_IWEE_K 0 CATHOLIC CHARITIES OF TH•CESE OF HONOLULU FORM 990 PROGRAM SERVICE REVENUE SCHEDULE 3 PART VII. LINE 103 - OTHER REVENUE LAUNDROMAT, PAY PHONE AND SODA MACHINE COMMISSIONS, AND OTHER MISC. INCOME FORM 990 PART VIII - ACTIVITIES RELATING TO EXEMPT PURPOSE SCHEDULE 4 LINE NO. 93A - 93E CATHOLIC CHARITIES PROVIDES, AMONG OTHER PROGRAM SERVICES, HOUSING TO THE ELDERLY AND THE HOMELESS, COUNSELING AND ADOPTION SERVICES TO LOW INCOME INDIVIDUALS AND FAMILIES AND RESIDENTIAL CARE PROGRAM FOR YOUNG UNMARRIED PREGNANT WOMEN. CATHOLIC CHARIITES CHARGES ITS CLIENTS FEES TO HELP DEFRAY THE OPERATIONAL COSTS OF THESE PROGRAMS. 103A IN PROVIDING HOUSING TO THE ELDERLY AND THE HOMELESS, CATHOLIC CHARITIES COLLECTS COMMISSIONS ON SERVICES PROVIDED FOR THE CONVENIENCE OF ITS CLIENTS. FORM 990 - CHANGES IN NET ASSETS OR FUND BALANCES SCHEDULE 5 PART I. LINE 20 - OTHER CHANGFS IN NET ASSETS OR FUND BA! ANCFS NET UNREALIZED GAIN ON INVESTMENTS 201,980 FORM 990, SCHEDULE A, PART I - 5 HIGHEST PAID EMPLOYEES NAM _ AND ADDRESS JEROME RAUCKHORST 327 HOLOKAI PLACE HON, HI 96825 COMPENSATION 86,507 NAME AND ADDRESS TITI F HRSWEEK ANA ROSAL EXECUTIVE DIRECTOR 50 46 -302 HAIKU ROAD #97 KANEOHE, HI 96744 COMPENSATION 68,975 CONTRIBUTION TO BENEFIT PLANS 5,190 1111 F DIOCESAN DIRECTOR CONTRIBUTION TO BENEFIT PLANS 4,138 $ 20,314 • EXPENSE ACCT & OTH ALLOWS EXPENSE ACCT & OTH ALLOWS F EI#99-0073!47 Y SCHEDULE 6 HRSM_/F_F_K 50 CATHOLIC CHARITIES OF *DIOCESE OF HONOLULU NAME AND ADDRESS MORRIS MASUDA 2525 DATE STREET #2202 HONOLULU, HI 96826 COMPENSATION 67,272 DENNIS IKEDA 98 -788 LANIKUAKAA STREET AIEA, HI 96701 COMPENSATION 64,500 NAME AND ADDRESS STELLA WONG 2261 - AAULII STREET HONOLULU, HI 96817 COMPENSATION 61,293 CONTRIBUTION TO BENEFIT PLANS 4,036 TITI F EXECUTIVE DIRECTOR TITI F FINANCE OFFICER CONTRIBUTION TO BENEFIT PLANS 3,870 CONTRIBUTION TO BENEFIT PLANS 3,678 TITI F EXECUTIVE DIRECTOR FORM 990, SCHEDULE A, PART IV - SUPPORT SCHEDULE SCHEDULE 7 SOWN II E A. PART IV -A. LINF 77 - OTHFR REVENUE LAUNDROMAT, PAY PHONE AND SODA MACHINE COMMISSIONS, AND OTHER MISC. INCOME CORPORATF STOCK SEE ATTACHED EXPENSE ACCT & OTH ALLOWS EXPENSE ACCT & OTH ALLOWS EXPENSE ACCT & OTH ALLOWS $ 16,565 FEI#99 -0073547 HRS_IWEE_K 50 HRSM_IF_F_K 50 HRS_IW_F_F_K 50 FORM 990, SCHEDULE A, PART IV - EXCESS CONTRIBTUTORS SCHEDULE 8 PART IV -A. LINE 26b - GIFTS Fr7FFDING AMOIINT_SHOWN IN LINE 26a RECEIVED IN 1996 MARY HASWELL TRUST $940,000 FORM 990 - INVESTMENTS IN GOVT SECURITIES SCHEDULE 9 METH BOOK VAIIIF VALIIF MARKET 1 519 527 TOTAL TO PART IV, LINE 54 1,519,527 CATHOLIC CHARITIES OF TH•CESE OF HONOLULU FORM 990 PART IV - OTHER LIABILITIES OTHFR 1 IARII ITIFS OBLIGATIONS UNDER CAPITAL LEASES • TOTAL TO FORM 990 PART IV, LINE 65 147 222 a FEI#99 -0073547 SCHEDULE 10 FND OF YR 147 222 9 CATHOLIC CHARITIES OF DIOCESE OF HONOLULU FORM 990 FOR YEAR ENDED DECEMBER 31, 1998 FEI#99 -0073547 PART IV. LINE 57 - LAND. BUILDINGS AND FOI&IPMFNT BUILDING 135,000 FURNITURE AND EQUIPMENT 986,892 AUTOMOBILES 538,161 LEASEHOLD IMPROVEMENTS 97,597 LAND 230,000 1,987,650 LESS ACCUMULATED DEPRECIATION AND AMORTIZATION 1,198,221 PART IV. LINE 64b - MORTGAGES AND OTHER NOTES PAYABLE • 789,429 NOTE PAYABLE TO ROMAN CATHOLIC CHURCH IN THE STATE OF HAWAII 353,595 • • CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU FORM 990 FOR YEAR ENDED DECEMBER 31, 1998 FEI #99- 0073547 PART 111 - STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS a) SERVICES TO THE ELDERLY: PROVIDES CASE MANAGEMENT, ESCORT CHORES, FRIENDLY VISITS, TRANSPORTATION, ADVOCACY, COUNSELING, HOUSING ASSISTANCE, TELEPHONE REASSURANCE, GROUP LIVING LEISURE, RECREATION, EDUCATION ACTIVITIES & VOLUNTEER OPP. TO APP. 7,500 ELDERLIES. b) SERVICES TO FAMILIES: PROVIDES COUNSELING, ADOPTION, FOSTER CARE, CHILD SEXUAL ABUSE PROTECTION AND TREATMENT, THERAPEUTIC FOSTER CARE, RESIDENTS FOR BIRTH PARENTS AND MENTALLY ILL AND YOUTH SERVICES. PROGRAM SERVED APP. 2,200 INDIVIDUALS. c) SERVICES TO IMMIGRANTS: PROVIDES RESETTLEMENT SERVICES TO INDOCHINESE REFUGEES AND IMMIGRANTS, EDUCATION AND TRAINING IN LANGUAGE, CITIZENSHIP AND ECONOMIC DEVELOPMENT, BILINGUAL AND BICULTURAL COUNSELING AND REFERRAL SERVICES TO APP. 2,500 REFUGEES. d) SHELTER FOR THE HOMELESS: PROVIDES SHELTER, FOOD AND CLOTHING FOR "STREET PEOPLE ". THE SHELTER HELPS THE INDIVIDUALS WITH TEMPORARY PLACE OF REFUGE AND THE COMMUNITY BY GIVING TO THE LEAST - FORTUNATE. THE SHELTER HOUSED APP. 1,200 INDIVIDUALS. CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU FORM 990 PART IV LINE 54 INVESTMENTS FIRST HAWAIIAN BANK AS OF 12/31/98 VALUATION OF ASSETS CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT NO. 63- 1578 -01 -0 ENDOWMENT FUND FACE AMOUNT/ DESCRIPTION N0. OF SHARES 30,000 30,000 30,000 30,000 30,000 30,000 30,000 25,000 50,000 CASH EQUIVALENTS 2,097.600 BISHOP STREET MONEYMKT FO INSTL CL A 2,097.60 6965 TOTAL CASH EQUIVALENTS FIXED INCOME BONDS U.S. GOVERNMENTS U 8 TREAS NTS DTD 05/31/95 6.250% 05/31/2000 U 5 TREAS NTS DTD 05/31/96 6.500% 05/31/2001 U 9 TREAS NTS DTD 08/15/92 6.3759 08/15/2002 U S TREAS NTS DTD 02/15/93 6.250t 02/15/2003 U S TREAS NTS DTD 08/15/94 7.250% 08/15/2004 U S TREAS NTS DTD 05/15/95 6.500% 05/15/2005 U S TREAS NTS DTD 07/15/96 7.000% 07/15/2006 U S TREAS NTS DTD 08/15/97 6.125t 08/15/2007 U5 TREAS NTS DTD 05/15/98 5.625% 05/15/2008 COST/ 12/31/98 % OF ESTIMATED ANNUAL. INC t YLD AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT 2,097.60 30,032.81 100.109 30,187.50 31,275.00 2.74 .065 1,950 6.24 100.625 104.250 30,004.69 100.016 29,775.00 99,250 31,303.13 104.344 29,910.94 32,878.20 2.68 .065 1,950 5.93 99.703 109.594 30,843.75 102.813 27,132.81 108.531 53,257.81 106.516 ADMINISTRATOR; JERELYN A BROWN (808) 525 -5869 PORTFOLIO MANAGER: BAL PAGE 1 2,097.60 .18 .04537 95 4.53 1.000 1.000 _ 2,097.60 .18 95 4.53 30,656.25 2.69 .0625 1,875 6.12 102.187 31,668.75 2.78 .06375 1,912 6.04 105.562 31,706.25 2.78 .0625 1,875 5.91 105.687 33,740.70 2.96 .0725 2,175 6.45 112.469 34,237.50 3.00 .07 2,100 6.13 114.125 27,359.38 2.40 .06125 1,531 5.60 109.437 53,375.00 4.68 .05625 2,812 5.27 106.750 b • • FIRST HAWAIIAN BANK AS OF 12/31/98 VALUATION OF ASSETS PAGE 2 CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT N0. 63- 1578 -01 -0 ENDOWMENT FUND FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 1 OF ESTIMATED ANNUAL INC 4 YLD N0. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT FEDERAL AGENCIES 25,000 FEDERAL HOME LOAN BANK BONDS DTD 10/24/1997 B 6,0551 DUE 10/24/2000 30,000 FHLB CONS BD DTD 06/12/95 6.1% 06/12/2002 25,000 FNMA MED TERM NT DTD 06/30/93 6.051 06/30/2003 30,000 FNMA MEDIUM TERM NTS DTD 05/21/97 6.41% 05/22/2000 25,000 FNMA MED TERM NTS DTD 04/29/97 6.82% 04/29/2002 20,000 FNMA MEDIUM TERM NTS DTD 05/13/97 6.74% 05/13/2004 25,000 FNMA DTD 11/12/97 5.81% 11/12/99 UTILITIES 30,000 GTE FLA INC DEB SER A DTD 12/15/93 6.31% 12/15/2002 25,090.50 100.362 TOTAL BONDS 501,866.36 TOTAL FIXED INCOME ADMINISTRATOR: JERELYN A BROWN (808) 525 -5869 PORTFOLIO MANAGER: BAL 25,500.00 2.24 .06055 1,513 5.93 102.000 29,250.00 31,031.25 2.72 .061 1,830 5.90 97.500 103.437 25,289.25 25,962.50 2.28 .0605 1,512 5.82 101.157 103.850 29,903.10 30,600.00 2.69 .0641 1,923 6.28 99.677 102.000 25,386.72 26,365.00 2.31 .0682 1,705 6.47 101.547 105.460 19,884.40 21,452.00 1.88 .0674 1,348 6.28 99.422 .107.260 24,960.45 25,185.00 2.21 .0581 1,452 5.77 99.842 100.740 29,653.50 31,032.00 2.12 .0631 1,893 6.10 98.845 103.440 501,866.36 524,024.78 524,024.78 45.98 31,356 5.98 45.98 31,356 5.98 • VALUATION OF ASSETS CATHOLIC CHARITIES ELDERLY SERVICES ENDOWMENT FUND FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 6 OF ESTIMATED ANNUAL INC 8 YLD NO. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT COMMON STOCKS CAPITAL GOODS AEROSPACE AND RELATED 200 DU PONT E I DE NEMOURS & CO COM ELECTRICAL EQUIPMENT 200 BELLSOUTH CORP COM TOTAL CAPITAL 000DS CONSUMER DURABLES APPLIANCES 100 AT &T CORP COM 100 GENERAL MTRS CORP CL H NEW COM 300 MCI WORLDCOM INC COM AUTOMOTIVE AND RELATED 150 COCA COLA CO COM TOTAL CONSUMER DURABLES FIRST HAWAIIAN BANK AS OF 12/31/98 10,995.00 54.975 53.063 7,642.50 9,975.00 .88 .76 152 1.52 18,637.50 20,587.60 6,063.43 7,575.00 .66 .88 88 1.16 4,418.90 38.213 49.875 60.634 75.750 _ 44.189 39.688 9,881.25 32.938 71.750 9,236.50 61.577 67.000 29,600.06 • 43,118.80 ACCOUNT NO. 63- 1578 -01 -0 r ADMINISTRATOR: JERELYN A BROWN (808) 525 -5869 PORTFOLIO MANAGER: BAL 10,612.60 .93 3,968.80 .35 21,525.00 1.89 1.40 PAGE 3 280 2.64 1.81 432 2.10 10,050.00 .88 .64 96 .96 3.78 184 0.43 • • FIRST HAWAIIAN BANK AS OF 12/31/98 VALUATION OF ASSETS PAGE 4 CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT NO. 63- 1578 -01 -0 ENDOWMENT FUND FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 % OF ESTIMATED ANNUAL INC Y YLD NO. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT CONSUMER NON - DURABLES PHOTOGRAPHY 50 CLOROX CO COM 200 UNILEVER N V NEW YORK SHS MEDIA 200 HOME DEPOT INC COM RETAIL TOTAL CONSUMER NON- DURABLES 4,188.13 83.763 116.813 74,322.28 111,597.25 ADMINISTRATOR; JERELYN A BROWN (808) 525-5869 PORTFOLIO MANAGER: BAL 5,840.65 .51 16,587.60 1.46 8,563.75 42.619 82.938 20.527 61.188 1.44 72 1.23 1.281 256 1.54 4,105.33 12,237.60 1.07 .12 24 .20 150 CVS CORP COM 6,417.66 8,250.00 .72 .23 34 .41 42.784 55.000 100 COSTCO COS INC COM 4,237.50 7,218.80 .63 42.375 72.188 200 DAYTON HUDSON CORP COM 7,165.33 10,850.00 .95 .40 80 .74 35.827 54.250 200 MEYER FRED INC DEL NEW 8,605.83 12,050.00 1.06 COM 43.029 60.250 TOBACCO 300 DISNEY WALT CO CON 6,657.50 9,000.00 .79 .202 60 .67 22.858 30.000 250 MEDIAONE GROUP INC 10,441.80 11,750.00 1.03 COM 41.767 47.000 200 TIME WARNER INC COM 7,955.00 12,412.60 1.09 .18 36 .29 39.775 62.063 150 UNIVISION COMMUNICATIONS INC 5,784.45 5,400.00 .47 CL A 38.563 36.000 9.79 562 0.50 CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT NO. 63- 1578 -01 -0 ENDOWMENT FUND FIRST HAWAIIAN BANK AS OF 12/31/98 VALUATION OF ASSETS PAGE 5 FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 % OF ESTIMATED ANNUAL INC % YLD N0. OF SHARES ENERGY INTERNATIONAL OIL 200 CARNIVAL CORP CL A COM FHA CARNIVAL CRUISE LINES INC OIL SERVICE OTHER FINANCIAL 100 AMERN HOME PRODS CORP COM 100 BRISTOL -MYERS SQUIBB CO COM 450 CISCO SYS INC COM ADMINISTRATOR: JERELYN A BROWN (8081 525 -5869 PORTFOLIO MANAGER: SAL AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT 6,465.38 9,600.00 .84 .36 72 .75 100 PROCTER 4 GAMBLE CO COM 6,282.33 9,131.30 .80 1.14 114 1.25 62.823 91.313 TOTAL ENERGY 12,747.71 18,731.30 1.64 186 0.99 FINANCIAL BANKS 100 AHERN EXPRESS CO COM 7,936.25 10,250.00 .90 .90 90 .88 79.363 102.500 150 AMERN INTL GRP INC COM 12,100.68 14,493.75 1.27 .224 33 .23 80.725 96.625 250 CITIGROUP INC 11,426.60 12,422.00 1.09 .84 210 1.69 COM 45.706 49.688 50 GEN RE CORP COM 7,763.75 10,006.25 .88 2.36 118 1.18 155.275 200.125 100 TRANSAMERICA CORP COM 7,982.50 11,550.00 1.01 1.00 100 .87 79.825 115.500 5,148.75 5,637.50 .49 .90 51.488 56.375 6,341.25 13,381.30 1.17 .86 63.413 133.813 15,012.50 33.361 32.327 48.000 41,765.85 3.66 92.813 90 1.60 86 .64 Ott r • • VALUATION OF ASSETS FIRST HAWAIIAN BANK AS OF 12/31/98 CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT NO. 63- 1578 -01 -0 ENDOWMENT FUND ADMINISTRATOR: JERELYN A BROWN (808( 525-5869 PORTFOLIO MANAGER: BAL PAGE 6 FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 % OF ESTIMATED ANNUAL INC % YLD NO. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT 200 COMPAQ COMPUTERS CORP COM 4,772.50 8,400.00 .74 .08 16 .19 23.863 42.000 100 DELL COMPUTER CORP COM 4,588.42 1,318.80 .64 45.884 73.188 150 ELAN PLC ADR 9,339.64 10,490.70 .92 62.264 69.938 100 INTL BUS MACHS CORP COM 7,213.75 18,437.50 1.62 .96 96 .52 72.138 184.315 100 JOHNSON & JOHNSON COM 7,344.06 8,387.50 .74 1.12 112 1.34 73.441 83.875 100 LUCENT TECHNOLOGIES INC COM 6,330.00 10,993.80 .96 .08 8 .07 63.300 109.938 100 MERCK & CO INC COM 9,245.00 14,750.00 1.29 1.08 108 .73 92.450 147.500 100 PFIZER INC COM 4,201.25 12,500.00 1.10 .88 88 .70 42.013 125.000 400 SCHERING PLOUGH CORP COM 11,237.30 22,100.00 1.94 .50 200 .90 28.093 55.250 100 SUN MICROSYSTEMS INC. COM 5,081.25 8,562.50 .75 50.813 85.625 100 WATSON PHARMACEUTICALS INC COM 3,692.50 6,287.50 .55 36.925 62.875 TOTAL FINANCIAL 146,765.95 247,734.95 21.74 1,355 0.55 • OP VALUATION OF ASSETS CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT N0. 63- 1578 -01 -0 ENDOWMENT FUND FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 1 OF ESTIMATED ANNUAL INC 1 YLD NO. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT RAW MATERIALS /INTERMEDIATE GOODS CONTAINERS AND GLASS 250 GEN ELEC CO COM 12,672.92 25,500.00 2.24 1.40 350 1.37 50.692 102.000 150 TYCO INTL LTD NEW 7,967.96 11,315.70 .99 .10 15 .13 COM 53.120 75.438 TOTAL RAW MATERIALS /INTERMEDIATE G 20,640.88 36,815.70 3.23 365 0.99 TRANSPORTATION AIRLINES ' 100 INTEL CORP COM 7,663.33 11,856.30 1.04 .12 12 .10 76.633 118.563 200 MICROSOFT CORP COM 9,662,50 27,737.60 2.43 48.313 138.688 150 STERLING COMM INC COM 6,307.50 6,750.00 .59 42.050 45.000 200 KILINX INC 6,956.87 13,025.00 1.14 COM 34.784 65.125 OTHER TRANSPORTATION 300 AES CORP COM 12,454.58 14,212.50 1.25 41.515 47.375 TOTAL TRANSPORTATION FIRST HAWAIIAN BANK AS OF 12/31/98 ADMINISTRATOR: JERELYN A BROWN (808) 525 -5869 PORTFOLIO MANAGER: BAL 43,044.78 73,581.40 ' 6.46 PAGE 7 12 0.02 FIRST HAWAIIAN BANK AS OF 12/31/98 VALUATION OF ASSETS PAGE 8 CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT NO. 63 -1578 -01-0 ENDOWMENT FUND FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 % OF ESTIMATED ANNUAL INC % YLD NO. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT UTILITIES OTHER UTILITIES 200 BANK NEW YORK INC COM 6,354.12 8,050.00 .71 .56 31.771 40.250 100 BANKAMERICA CORP NEW 5,157.50 6,012.50 .53 1.80 COM 51.575 60.125 100 CHASE MANHATTAN CORP NEW COM 5,682.13 7,100.00 .62 1.64 56.821 71.000 250 HALLIBURTON CO COM 8,364.08 7,406.25 .65 .50 33.456 29.625 100 MOBIL CORP COM 6,363.75 8,712.50 .76 2.28 63.638 87.125 100 ROYAL DUTCH PETE CO NY REGISTRY 4,341.25 4,787.50 .42 1.80 SH PAR N GLDR 1.25 43.413 47.875 100 SCHLUMBERGER LTD COM 8,367.50 4,637.50 .41 .75 83.675 46.375 100 TEXACO INC COM 5,276.25 5,300.00 .47 1.80 52.763 53.000 200 US BANCORP DEL 6,683.74 7,100.00 .62 .78 COM 33.419 35.500 50 UNION PLANTERS CORP COM 3,102.50 2,265.65 .20 2.00 62.050 45.313 TOTAL UTILITIES 59,692.82 61,371.90 5.39 TOTAL COMMON STOCKS ADMINISTRATOR: JERELYN A BROWN (8081 525 -5869 PORTFOLIO MANAGER: BAL 405,452.00 613,538.90 53.84 112 1.39 180 2.99 164 2.31 125 1.69 228 2.62 180 3.76 75 1.62 180 3.40 156 2.20 100 4.41 1,500 2.44 4,596 0.75 FIRST HAWAIIAN BANK AS OF 12/31/98 VALUATION OF ASSETS PAGE 9 CATHOLIC CHARITIES ELDERLY SERVICES ACCOUNT NO. 63- 1578 -01 -0 ENDOWMENT FUND CASH INCOME CASH ADMINISTRATOR: JERELYN A BROWN (800) 525 -5869 PORTFOLIO MANAGER: BAL FACE AMOUNT/ DESCRIPTION COST/ 12/31/98 t OF ESTIMATED ANNUAL INC t YLD N0. OF SHARES AVG.UNIT COST MARKET VAL /PRICE TOTAL RATE AMOUNT MKT .00 .00 PRINCIPAL CASH .00 .00 TOTAL CASH .00 .00 .00 TOTAL ACCOUNT 909,415.96 1,139,661.28 100.00 36,047 3.16 4'55.045h d Cash �Quivaho<s 2,097. - 2 , 09>.6 0 Q 907 ;34.31, 4 437,sG3.44 • • FRIENDS OF CATHOLIC CHARITIES IMA INDIVIDUAL INVESTMENTS EQUITIES FIDELITY ADV EQ GROWTH PD CL 1 (86) FIDELITY ADV MID CAP FD CL 1(533) FIDELITY ADV ORWTH & INC FD CL I (276) FIDELITY ADV EQ INCOME FD CL I (80) TOTAL EQUITIES FIXED INCOME FIDELITY ADV GOVNMT INVESTMENT FD CL 1 (697) FIDELITY ADV HIGH YIELD FD CL I (644) CURRENT OUANTITY YIELD 1,100.241 2,803.204 8,872.069 1.354.097 5,789.850 5.7% 3,331.682 8.4% TOTAL FIXED INCOME Sub /o/O/ - /n w5 1- me7 1 -S- 4w "64.7/4,3 -0/ -3 frees /✓IOPS/n'r,t- .Q- 2 -` 6 3- /57€ 0 PAGE 2 OF 4 ACCOUNT NO. 64- 7163 -01 -3 COST 50,101.78 33,670.41 111,481.13 31,802.98 MARKET VALUE 63,857.99 40,338.11 144,792.17 38,673.01 227,056.30 287,661.28 4\ 55,079.42 57,319.52 40,380.75 36,981.67 95,460.17 ;422, sq. `/7 96Z,54. 3L, 4 814.53 94,301.19 941 91 /37,56368 4,5/7576 /S • • a • • IRS LETTER -6 + 1731 King Street. Suite 200. Alexandria Yirguna 22314. Phone: (703)549 -1390 Fax: (703) 549-1656 • Catholic- .` Charities U' Sri To: Catholic Charities USA Agency and Supporting Group Members From: Fred Kammer, SJ Date: August 25, 1999 • • Re: 1999 Annual 501c3 Group Ruling for Federal Tax Exemption Enclosed you will find a copy of the 1999 ruling letter, which states that organizations listed in the Official Catholic Directory are exempt from federal income taxes. Please keep this on file, as you may be required to produce this documentation for legal reasons, grant proposals, and the like. The second enclosure is a memo from the Office of the General Counsel regarding the public inspection and disclosure requirements of Section 6014 (d) of the Internal Revenue Code. Please share this material with your fiscal officers, legal counsel, and development staff. = STATES A S CON FF,RE \CE • • Office of the General Counsel 3211 4th Street N.E. Washington. DC 20017.1194 12021541 -3300 FAX (2021541 -3337 TELEX 7400424 IMPORTANT GROUP RULING INFORMATION June 25, 1999 FOR THE INFORMATION OF: Most Reverend Archbishops and Bishops, Diocesan Attomeys and Fiscal Managers, and State Conference Directors SUBJECT: 1999 Group Ruling FROM: Mark E. Chopko, General Counsel (Staff: Deirdre Dessingue Halloran Associate General Counsel) Enclosed is a copy of the Group Ruling issued on June 3, 1999 by the Internal Revenue Service ( "IRS "), with respect to the federal tax status of Catholic organizations listed in the 1999 edition of the Official Catholic Directory ( "OCD " ?. As explained in greater detail below, this ruling is important for establishing: (1) the exemption of such organizations from: (a) federal income tax; (b) federal unemployment tax (but see ¶5 of "Explanation" below); and (2) the deductibility, for federal income, gift and estate tax purposes, of contributions to such organizations. The 1999 Group Ruling is the latest in a series that began with the original determination of March 25, 1946. In the 1946 document, the Treasury Department affirmed the exemption from federal income tax of all Catholic institutions listed in the OCD for that year. Each year since 1946, in a separate letter, the 1946 ruling has been extended to cover the institutions listed in the current OCD. The language of these rulings has remained relatively unchanged, except to reflect intervening modifications in the Internal Revenue Code ( "Code "). The 1999 Group Ruling is consistent with the 1998 ruling. The 1999 OCD reflects certain changes that have been made in USCC's administration of the group exemption. Catholic organizations with independent IRS exemption determination letters are listed in the 1999 OCD with an asterisk ( "), which is explained at page A -13 and indicates that such organizations are not covered by the Group Ruling. Annual group rulings clarify important tax consequences for Catholic institutions listed in the OCD, and should be retained for ready reference. Rulings from earlier years are important to establish the tax consequences of transactions that occurred during those years. A copy of the Group Ruling may also be found on the USCC website at www.nccbuscc.org /ogc. 6 a • • • r- .. • 1• • r • Diocesan officials who compile OCD information for transmittal to the OCD publisher are responsible for the accuracy of such information. This means that they must ensure that only qualified organizations are listed, that organizations that cease to qualify are deleted promptly, and that qualified, newly- created organizations are listed as soon as possible. The current legal and procedural requirements for inclusion in the Group Ruling and OCD, as well as the application form, are contained in the OGC Memo dated January 13, 1995. If you need a copy of this document, please contact OGC. EXPLANATION 1. Exemption from Federal Incom Tax. The latest ruling reaffirms the.exemption from federal income tax under section 501(c)(3) of the Code of "the agencies and instrumentalities and educational, charitable, and religious institutions operated, supervised or controlled_by or in connection with the Roman Catholic Church in the United States, its territories or possessions appearing in the Official Catholic Directory for 1999" (with the exception of organizations noted with an asterisk and foreign organizations). •' 2. Federal Fxcise Taxes Inclusion in the Group Ruling has no effect on an organization's liability for federal excise taxes. Exemption from these taxes is very limited. Please refer to your attorney any questions you may have about excise taxes. 3. State /Local Taxes. inclusion in the Group Ruling does not automatically establish an organization's exemption from state or local income, sales or property taxes. Typically, separate exemptions must be obtained from the appropriate state or local tax authorities in order to qualify for any applicable exemptions. Please refer to your attomey any questions you may have about state or local tax exemptions. 4. Dedurtihility of Contributions The Group Ruling assures donors that contributions to the institutions listed in the 1999 OCD and covered by the Group Ruling are deductible for federal income, gift, and estate tax purposes. (See OGC Memo dated December 21, 1993 conceming substantiation and disclosure requirements applicable to contributions over $250 and quid pro quo contributions over $75 respectively.) 5. Unemployment Tax. The Group Ruling establishes exemption from federal unemployment tax only. Individual states may impose unemployment tax on organizations included in the Group Ruling, even though they are exempt from the federal tax. Please refer to your attomey any questions you may have about state unemployment tax. 6. Social Security Tax. All section 501(c)(3) organizations, including churches, are required to pay taxes under the Federal Insurance Contributions Act (FICA) for each employee who is paid $100 or more in a calendar year! Services performed by diocesan priests in the Section 3121(w) of the Code permits certain church- related organizations to make an irrevocable election to avoid payment of FICA taxes, but only if such organizations are nppnsed for religinrrc ma was to payment of social security taxes. -2- 3 • 5 6 7 8 • • exercise of their ministry are not considered "employment" for FICA ( Socal Security) purposes" and FICA should not be withheld from their salaries. For Social Security purposes, diocesan priests are subject to self - employment tax ( "SECA ") on their salaries as well as on the value of meals and housing or housing allowances provided to them," Neither FICA nor income tax withholding is required on compensation paid to members of religious institutes who are subject to vows of poverty and obedience and are employed by organizations included in the Official Catholic Directory.' 7. Form 990. All organizations included in the OCD must file Fonn 990, Retum of Organization Exempt from Income Tax, unless they are eligible for a mandatory or discretionary exception. There is no automatic exemption from the Form 990 filing requirement simply because an organization is listed in the OCD. Organizations required to file Form 990 must do so by the 15th day of the fifth month after the close of their fiscal year.' Among the organizations not required to file Form 990 under section 6033 of the Code are: churches; integrated auxiliaries of churches the exclusively religious activities of religious orders; schools below college level affiliated with a church or operated by a religious order; organizations with gross receipts normally not in excess of $25,000;' and certain church- affiliated organizations that finance, fund or manage church assets, or maintain church retirement insurance programs, and organizations controlled by religious orders that finance, fund or manage assets used for I.R.C. § 3121(b)(8)(A). 1R.C• § 1402(a)(8). Rev. Rut 77 -290, 1977 -2 C.B. 26. The penalty for failure to tile the Form 990 is .$20 for each day the failure continues, up to a maximum of S10,000 or 5 percent of the organization's gross receipts, whichever is less. However, organizations with annual gross receipts in excess of 51 million are subject to penalties of $100 per day, up to a maximum of $50,000. LR.C. § 6652(c)(1)(A). I.R.C. § 6033(a)(2)(A)(i); Treas. Reg. § 1.6033 -2(h). Effective December 20, 1995, the internal support test formerly contained in Rev. Proc. 86-23, 1986 -1 C.B. 564, is the sole test for determining whether an organization qualifies as an integrated auxiliary of a church. To qualify, an organization must be described in section 501(c)(3), qualify as other than a private foundation, be affiliated with a church, and qualify as intemally supported. An organization will be considered intemally supported ,list it both: (1) Offers admissions, goods, services, or facilities for sale, other than on an incidental basis, to the general public (except goods, services, or facilities sold at a nominal charge or substantially below cost), and (2) normally receives more than 50 percent of its support from a combination of governmental sources; public solicitation of contributions (such as through a community fund drive); and receipts from the sale of admissions, goods, performance of services, or furnishing of facilities in activities that are not unrelated trades or businesses. Announcement 82 -88, 1982 -25 IR.8. 23. -3- 0 v +i exclusively religious activities v Organizations that are required to file Form 990 must upon request make a copy of the form and its schedules and attachments (other than contributor lists) available for public inspection during regular business hours at the organization's principal office and at any regional or district offices having three or more employees. Form 990 for a particular year must be made available for a three year period beginning with the due date of the retum 10 In addition, effective June 8, 1999, organizations that file Form 990 must comply with written or in- person requests for copies of the Form 990. The organization may impose no charge other than a reasonable fee to cover copying and mailing costs. If requested, copies of the Form 990 for the past three years must be provided. In -person requests must be satisfied on the same day. Written requests must be satisfied within 30 days » 8. Revenue Pracerbire 75 -50. Rev. Proc. 75 -50' ' sets forth notice, publication, and recordkeeping requirements regarding racially nondiscriminatory policies that must be complied with by private schools, including church- related schools, as a condition of establishing and maintaining exempt status under section 501(c)(3) of the Code. Under Rev. Proc. 75 -50 private schools are required to file an annual certification of racial nondiscrimination with the IRS. For private schools not required to file Form 990, the annual certification must be filed on Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt from Federal Income Tax. This form may be obtained from your local IRS office. Form 5578 must be filed by the 15th day of the fifth month following the dose of the fiscal year. Form 5578 may be filed individually or by the diocese on behalf of all its diocesan schools. The requirements of Rev. Proc. 75 -50 remain in effect and must be complied with by all schools listed in the OCD. Diocesan or school officials should insure that the requirements of Rev. Proc. 75 -50 are met since failure to do so could jeopardize the exempt status of the school and, in the case of a school operated by a church, the exempt status of the church itself. 9 Rev. Proc. 96 -10, 1996 -1 C.B. 577. to The penalty for failure to permit public inspection of the Form 990 is .520 for each day during which such failure continues, up to a maximum of $10,000. I.R.C. § 6652(c)(1)(C). 11 I.R. § 6104(d). Generally, a copy of an organization's exemption application and supporting documents must also be provided on the same basis. However, since Catholic organizations covered under the Group Ruling did not file exemption applications with IRS, nor did USCC, organizations covered under the Group Ruling should respond to requests for public inspection and written or in -person requests for copies by providing a copy of the page of the current OCD on which they are listed. If a covered organization does not have a copy of the current OCD, it has two weeks within which to make It available for inspection and to comply with in -person requests for copies. Written requests must be satisfied within the general time limits. For more information on the section 6104(d) requirements, see OGC Memo dated May 18, 1999. == 1975 -2 C.B. 587. • • -4- • • 9_ 1 nhbying Activities. Organizations included in the OCD may Lobby for changes in the law, provided such lobbying is not more than an insubstantial part of their total activities. Attempts to influence legislation both directly and through grassroots lobbying are subject to this restriction. The term "lobbying" includes activities in support of or in opposition to referenda, constitutional amendments, and similar ballot initiatives. There is no distinction between lobbying activity that is related to an organization's exempt purposes and lobbying that is not. There is no fixed percentage that constitutes a safe harbor for "insubstantial" lobbying. Please refer to your attorney any questions you may have about permissible lobbying activities. 10. Political Activities Organizations included in the Group Ruling may not participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office. Violation of the prohibition against political activity can jeopardize the organization's tax- exempt status. In addition to revoking exempt status, IRS may also impose excise taxes on an exempt organization and its managers on account of political expenditures. Where there has been a flagrant violation, IRS has authority to seek an injunction against the exempt organization and immediate assessment of taxes due. If you have any questions in this regard, please refer them to your attorney. (See OGC Memo dated February 14, 1996). 11. Private Foundation Status The latest Group Ruling affirms that organizations included in the OCD are not private foundations under section 509(a) of the Code. However, the Group Ruling does not identify the subsection of section 509(a) under which a particular organization is covered. Organizations must determine for themselves whether they qualify for such status under the provisions of section 509(a)(1), (a)(2) or (a)(3). Newly- created or newly- affiliated organizations must establish that they are not private foundations as a condition of inclusion in the Group Ruling and OCD. 12. Group Fxemptinn Number. The group exemption number assigned to USCC is 928 or 0928. This number must be included on each Form 990, Form 990 -T, and Form 5578 required to be filed by any organization exempt under the Group Ruling. We recommend against using the group exemption number on Form SS -4, Request for Employer Identification Number, because in the past this has resulted in IRS including USCC as part of the organization's name when it enters the organization in its database. If you have questions conceming the Group Ruling or this memorandum, please contact Deirdre Dessingue Halloran at 202- 541 -3300 or by e -mail at dhalloran @nccbuscc_org. Enclosure =' IRS has expressed concern about organizations covered under the Group Ruling that fail to include the group exemption number, 0928, on their Form 990 filings, particularly the initial filing. -5- 4 Date: June 3, 1999 Dear Ms Halloran: • Internal Revenue Service District Director Ms. Deirdre Halloran Associate General Counsel United States Catholic Conference 3211 4" Street, N.E. Washington, D.C. 20018 -1194 • Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Person to Contact: Myrna Huber #31 -01141 Telephone Number: 877 -829 -5500 FAX Number 513 -684 -5937 ECEOVED JUN - 9 1999 JUN - 9 1999 In a ruling dated March 25, 1946, we held that the agencies and instrumentalities and all educational, charitable and religious institutions operated, supervised, or controlled by or in connection with the Roman Catholic Church in the United States, its territories or possessions appearing in The Official Catholic Directory 1946, are entitled to exemption from federal income tax under the provisions of section 101(6) of the Internal Revenue Code of 1939, which corresponds to section 501(c)(3) of the 1986 Code. This ruling has been updated annually to cover the activities added to or deleted from the Directory. The Official Catholic Directory for 1999 shows the names and addresses of all agencies and instrumentalities and all educational, charitable, and religious institutions operated by the Roman Catholic Church in the United States, its territories and possessions in existence at the time the Directory was published. It is understood that each of these is a non - profit organization, that no part of the net earnings thereof inures to the benefit of any individual, that no substantial part of their activities is for promotion of legislation,' and that none are private foundations under section 509(a) of the Code. • Based on all information submitted, we conclude that the agencies and instrumentalities and educational, charitable, and religious institutions operated, supervised, or controlled by or in connection with the Roman Catholic Church in the United States, its territories or possessions appearing in The Official Catholic Directory for 1999, are exempt from federal income tax under section 501(c)(3) of the Code. Donors may deduct contributions to the agencies, instrumentalities and institutions referred to above, as provided by section 170 of the Code. Bequests, legacies, devises, transfers or gifts to them or for their use are deductible for federal estate and gift tax purposes under sections 1055, 2106, and 2522 of the Code. Ms. Deirdre Halloran • • Beginning January 1, 1984, unless specifically excepted, you and your subordinates must pay tax under the Federal Insurance Contributions Act (Social Security taxes) for each employee who is pay $100 or more in a calendar year You and your subordinates are not liable for the tax under to Federal Unemployment Tax Act (FUTA). By May 31, 2000, please send three copies of The Official Catholic Directory for 2000 to the IRS EPO /EO Division in Cincinnati, one copy to the _RS EP /EO Divisions in Baltimore, Brooklyn, Dallas, and Los Angeles, and three copies to the IRS National Headquarters. The conditions concerning the retention of your group exemption as set forth in our previous determination letter of August 17, 1983, remain in full force and effect. Sincerely, C. Ashley BuY - District Director �'` 44 / = e rATE9'E • IS = • Office of the General Counsel CO \PEKE: \CF: 3211 4th Street N.E. Uashington. DC 2001 7 -1 194 (2021541-3300 FAX (20215413337 TELEX 7400424 IMPORTANT. TIME - SFNSITIVF I EGAL INFORMATION BACKGROUND TO: State Conference Directors FROM: Mark E. Chopko, General Counsel? (Staff Contact: Deirdre Dessingue Halloran) RE: Archbishops, Bishops, Diocesan Attorneys and DATE: May 18, 1999 64 Fed. Reg. 17279 (April 9, 1999). Public Disclosure of Group Ruling Information and Form 990 IRS recently issued final regulations relating to the public disclosure requirements of section 6104(d) of the Internal Revenue Code.' Section 6104(d) sets forth the obligations of organizations exempt under section 501(c) and (d) of the Code (other thari private foundations) to permit inspection and provide copies of their exempt status application materials and Form 990s. Organizations exempt under section 501(c)(3) by virtue of their inclusion in the USCC Group Ruling are subject to the section 6104(d) regulations. These regulations are effective June 8. 1999. The Omnibus Budget Reconciliation Act of 1987 added section 6104(e) of the Code, which required tax- exempt organizations, including private foundations, to allow public inspection of their applications for recognition of tax exemption, Form 1023 or 1024. It also required tax - exempt organizations, other than private foundations, to allow public inspection of their three most recent annual information retums, Form 990. The Taxpayer Bill of Rights 2, enacted in 1996, amended section 6104(e) to require tax- exempt organizations, including private foundations, to comply with requests made in person or in writing for copies of their applications for exemption. It also required tax - exempt organizations, other than private foundations, to comply with requests made in person or in writing for copies of their three most recent annual information 'returns. • The Tax and Trade Relief Extension Act of 1998 amended section 6104(e) to subject private foundations to the same rules regarding public disclosure that applied to other tax - exempt organizations. It also repealed section 6104(d), and redesignated amended section 6104(e) as new section 6104(d). PURi IC INSPECTION • • These final section 6104(d) regulations provide guidance for tax- exempt organizations, other than private foundations, on compliance with applicable public disclosure rules, including (a) when and where documents must be made available for public inspection, (b) conditions an organization may place on requests for copies, (c) the amount, form and timing of permitted charges, (d) instructions on making documents widely available, and (e) special rules for organizations included in a group tax exemption. Application for Exemptinn Under the final regulations, an exempt organization must make its application for exemption available for public inspection without charge at its principal, regional and district offices during regular business hours. The application for exemption includes Form 1023 and 1024, as well as all supporting documents filed by or on behalf of the organization in connection with the application. It also includes any letter or other document issued by IRS conceming the • application, such as an information letter or favorable determination letter. An application for exemption does not include (a) any application filed by an organization that has not yet been recognized as exempt, (b) any application filed before July 15, 1987, unless the organization had a copy of the application on that date, or (c) any materials not available for public inspection under section 6104. Annual information Return. An exempt organization must also make its three most recent annual information retums available for public inspection without charge at its principal, regional and district offices during regular business hours. Each annual return must be made available for three years beginning on the later of its filing due date or the date it is actually filed. The annual information return includes an exact copy of the Form 990 (including Forms 990 -EZ or 990 -BL) or Form 1065 filed by the organization, as well as all schedules, attachments and supporting documents, except for the name or address of any contributor to the organization. It does not include Schedule A of Form 990 -BL, Form 990 -T, Schedule K -1 of Form 1065, Form 1120 -POL, or any return of a private foundation. Perrrtirsib!e Cnnrfitinns nn Public inspection, An exempt organization may have an employee present in the room during an inspection. However, the organization must permit the individual inspecting the documents to take notes freely during the inspection and to photocopy documents at no charge, if the individual provides his own photocopying 2 A regional or district office is any office of the exempt organization, other than its principal office, that has paid employees, whether part -time or full -time, whose aggregate number of paid hours per week are normally at least 120. However, a site is not considered a regional or district office if the only services provided at the site further exempt purposes, e.g., health care or day care, and the site does not serve as an office for management staff, other than managers involved solely in the exempt activity conducted on the premises. 2 0 9 0 RFQUESTS FOR CflelFS • • equipment at the place of the inspection. An exempt organization with no permanent office is expected to comply with the public inspection rules by making its application for exemption and annual information; returns available for inspection at a reasonable location of its choice. It must permit inspection within a reasonable amount of time after receiving a request for inspection (normally not more than two weeks) and at a reasonable time of day. At the organization's option, it may mail, within two weeks of receiving a request, a copy of the documents requested in lieu of permitting inspection. However, it may charge the requester for copying and actual postage costs only with the requester's consent. An exempt organization must also provide to any individual who makes a written or in- person request, with charges limited to a reasonable fee for reproduction' and actual postage costs, a copy of all or part of any application for exemption or annual information return required to be made available for public inspection. A request for a copy of less than an entire application or return must specifically identify the requested part or schedule. A regional or district office must satisfy the same rules as an organization's principal office with respect to provision of copies. However, regional or district offices are not required to make the annual information retum available for inspection or copying until 30 days after the date the retum would have to be available at the principal office. In Penn Requests, An exempt organization must respond to a request for copies made in person on the same business day. However, where unusual circumstances exist such that fulfilling the request on the same business day would place an unreasonable burden on the exempt organization, the organization must provide the copies on the next business day after the unusual circumstances cease to exist or the frfth business day after the date of the request, whichever occurs first. Unusual circumstances include, but are not limited to, receipt of a volume of requests exceeding the organization's capacity to make copies, requests involving extensive copying that are received shortly before the organization's closing time, or requests received when the organization's managerial staff capable of fulfilling the request is conducting special duties, e.g., student registration or off -site meeting, rather than regular duties. A principal, regional or district office of an exempt organization may retain a local agent to process in person requests copies. The local agent must be located within' reasonable proximity to the organization's office. The same rules that apply to the organization apply to the local agent retained for this purpose. When the exempt ' The reasonabte fee for providing copies may not exceed the per -page fee charged by IRS for ' providing copies to a requester (see Treas. Reg. §601.702(f)(5)(iv)(B)), currently 51 for the first page and 15 cents for each page thereafter. 3 • • organization receives an in person request for copies, it must immediately provide the name, address and telephone number of its local agent. Thereafter, it is not required to respond further to the requester. However, applicable penalties will be imposed on the organization if the local agent fails to provide documents as required. If the exempt organization charges a fee for copying and postage, it must accept payment by cash and money order. It may also accept other forms of payment, such as personal check or credit card. Written Requests. An exempt organization must honor a written request for copies of documents that (a) is addressed to, and delivered by, mail, electronic mail, fax or private delivery service, to its principal, regional or district office; and (b) identifies the address to which the copies should be sent. If the organization charges a fee for copying and postage, it must accept payment by certified check, money order, and either personal check or credit card. It may accept other forms of payment. Generally, copies must be mailed within 30 calendar days from the date the organization receives the request. However, if the organization requires payment in advance, it is only required to provide copies within 30 days from the date it receives payment. If an organization requiring payment in advance receives a written request without payment or with an insufficient payment, the organization must, within seven days from the date it receives the request, notify the requester of its prepayment policy and the amount due. If the organization does not require prepayment and the requester does not enclose prepayment, the organization must receive consent from the requester before providing copies for which fees would exceed $20. Copies are deemed provided on the date of the postmark or private delivery mark, or if sent by certified or registered mail, on the date of registration or the date of the postmark on the sender's receipt. With the consent of the requester, an exempt organization may provide copies of requested documents exclusively by e -mail. In such a case, the copies are deemed provided on the date the e-mail is successfully transmitted. An exempt organization may retain an agent to process written requests for copies. The same rules for processing written requests that apply to the organization apply to the agent. If the organization receives the request first, the deadline for providing copies is determined by reference to the date the organization received the request, not the date the agent received the request. Once the organization transmits the request to the agent, it is not required to respond further to the requester. However, applicable penalties will be imposed on the organization if the agent fails to provide documents as required. In the absence of evidence to the contrary, a request or payment that is mailed is deemed to be received seven days after the date of the postmark. A request transmitted by e-mail or fax is deemed received the day the request is transmitted successfully. 4 • • SPECIAI PROVISIONS FOR GROUP RUI INGS The final regulations contain special provisions relating public disclosure under xi section 6104(d) by organizations covered under a group tax exempt ruling, which are intended to reduce compliance burdens. Applications for Exemption An exempt organization that did not file an application for exemption because it was covered by a group exemption letter, must, upon • request, make available for public inspection or provide copies of the application for exemption, if any, submitted to IRS by the organization holding the group exemption letter ant! those documents submitted by the group exemption holder to include the covered • organization in the group ruling. However, if the group exemption holder submits to IRS a directory of covered' organizations, a covered organization is required to provide only the application for exemption, if any, and the pages of the directory that refer to it. An organization covered under a group exemption must permit public inspection, or comply with requests for copies made in person, within a reasonable amount of time (normally not more than 2 weeks) after receiving an in person request. Where a requester seeks inspection, the covered organization may mail a copy of the applicable documents to the requester, within the same time period, in lieu of permitting inspection. In this case, the organization may charge for copying and postage only with the consent of the requester. A covered organization must comply with written requests for copies within the general time limits set forth above. At its option, a requester may seek inspection at the principal office of the organization holding the group ruling. The group ruling holder must make its directory available for public inspection, but is required to make copies of only those pages that refer to covered organizations specified by the requester. Such requests presented to the group ruling holder must be fulfilled according to the general rules set forth above. Organinatinns Covered Under the USCC Group Riding USCC did not file an application for exemption. Therefore, there is no application that USCC or any organization covered under the USCC Group Ruling is required to make available for inspection or for copying . Accordingly, each exempt organization covered under the USCC Group Ruling is required to provide for inspection or copying only the page(s) of the current Official Catholic Directory ( "OCD') on which it appears. If a covered organization does not have a copy of the current edition of the OCD, it has two weeks in which to obtain a copy of the appropriate page(s) in order to comply with the provisions of section 6104(d) as set forth above. Since the OCD is updated annually, current page(s) should be provided. Compliance with section 6104(d) is required independently by each organization that constitutes a separate entity under civil law. Thus, for example, where parishes or 5 schools are separately incorporated, requests for disclosure may not simply be referred to the diocese. On the other hand, in a corporation sole diocese, where parishes and schools may not be separate civil entities, requests could be referred to the diocese, except if the parish or school were to be considered a regional or district office of the diocese. This is unlikely since generally the only services provided at a diocesan parish or school further exempt purposes and the only managers on premises are involved solely in those services (see footnote 2). Diocesan counsel should be consulted with particular compliance questions. Dioceses should consider making a copy of their full current OCD listing available at the Chancery Office in anticipation of disclosure requests. In addition, dioceses and other organizations covered under the USCC Group Ruling may wish to prepare, in consultation with their legal advisors, a statement similar to the one statement set forth below, to explain why certain documents are not available. Any such statement will need to be adapted to particular circumstances. Section 6104(d) Disclosure Statement Diocese X is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code by virtue of its inclusion in the group tax exemption (GEN # 0928) of the United States Catholic Conference ( "USCG "). Because of its inclusion in the USCC Group Ruling, Diocese X did not file an application for exemption, Form 1023. In addition, USCC, whose group ruling was issued in 1946, did not file Form 1023. Accordingly, there is no application for exemption subject to public inspection under section 6104(d) of the Code. A copy of the USCC 'Group Ruling reaffirmation letter is available at www.nccbuscc.org /ogc. As provided in section 301.6104(d )-3(f) of the Regulations, Diocese X will provide for public inspection and copying the pages of the current edition of the Official Catholic Directory ( "OCD') on which it appears. The OCD is the directory submitted by USCC in order to cover Diocese X under its group tax exemption. [Insert individual policy concerning fees for copying and postage.] Under the provisions of section 6033(a)(2)(A)(i) of the Code, Diocese X is not required to file annual information retum, Form 990. Accordingly, there is no Form 990 subject to public inspection under section 6104(d). [Amend or delete according to individual circumstances (see below).] Annual Information Returns, The final regulations set forth special rules applicable to covered organizations that do not file their own annual information retums because they are covered under a group exemption, the holder of which files a group retum. These provisions are inapplicable to organizations covered under the USCC Group Ruling, since USCC does not file a group return. Accordingly, organizations covered under 6 • • the USCG Group Ruling are subject to the general rules regarding disclosure of annual information returns set forth above. PFNAI TIES FOR FAILURE TO OMPLY Exempt organizations that fail to comply with the provisions of section 6104(d) are subject to penalties under (1) section 6652(c)(1)(C) [relating to the Form 9901 of $20 per day up to a maximum of $10,000; (2) section 6652(c)(1)(D) [relating to the Form 10231 of , $20 per day, with no cap; and (3) section 6685 of $5,000 for each retum or application. ,, The final regulations indicate that if an exempt organization denies a request for inspection or copying of documents, and the requester wishes to alert IRS to the possible need for enforcement, the requester may provide a statement to the district director for the IRS key district in which the organization's principal office is located, describing the reason why he believes the denial violated section 6104(d). THE INTFRNET At TFRNATIVE A tax - exempt organization is not required to provide copies of its application for exemption or annual information retum if the organization makes these documents widely, • available. As defined in the final regulations, this means posting the documents on its own World Wide Web page or as part of a database of similar documents of other tax - exempt organizations on the Web page of another organization. A document will be considered widely available only if (a) the Web page clearly informs readers that the doument is available and provides instructions for downloading it; (b) the document is posted in a format that, when accessed, downloaded, viewed and printed, exactly reproduces the image of the original as it was filed with IRS, except for information permitted by statute to be withheld from public disclosure; and (c) any individual with access to the Internet can access, download, view and print the document without speical computer hardward or software, and without payment of a fee. The exempt organization must also develop procedures to insure the reliability and accuracy of documents posted on a Web site and take reasonable precautions to prevent alteration, destruction or accidental loss of posted documents. The organization must notify requesters where its documents are available, including its Web address. information must be provided immediately with respect to in- person requests, and within 7 days of receiving a written request. The organization maintaining the Web page must have procedures for insuring reliability and accuracy of documents posted on the page. 5 USCC did not file Forrn 1023, and thus is not subject to section 6104(d) with respect its original group ruling letter or subsequent annual reaffirmations. Nonetheless, USCC has voluntarily made the current group ruling reaffirmation letter available on its Web site at www.nccbuscc.org/ooc. 7 HARASSMENT CAMPAIGNS • • Even if an organization satisfies the copying requirements of section 6104(d }1by posting its documents on its Web page, it must nonetheless make these documents available for public inspection as required under section 6104(d)_ The final regulations provide that if, upon application by the subject organization an IRS key district director determines that an exempt organization is the subject of a harassment campaign and that compliance with requests for documents that are part of such a campaign would not be in the public interest, the organization is not required to fulfill requests for copies that it reasonably believes are part of such campaign'. If the district director rules against the organization, it will be subject to applicable penalties for failure to comply with section 6104(d). A group of requests for an organization's documents is indicative of a harassment campaign if the requests are part of a single coordinated effort to disrupt the operations of the organization, rather than collect information. Facts and circumstances indicating that an organization is the subject of a harassment campaign include: (a) a sudden increase in the number of requests; (b) an extraodrdinary number of requests made through form letters or similarly worded con (c) evidence of a purpose to deter significantly the organization's employees or volunteers from pursuing the organization's exempt purpose; (d) requests that contain language hostile to the organization; (e) direct evidence of bad faith by organizers of the harassing group; (f) evidence that the organization has already provided the requesting documents to a member of the group; and (g) demonstration that the organization routinely complies with section 6104(d). In addition, an organization may disregard any request for copies of all or part of any document beyond the first two received within any 30-day period or the first four received within any one -year period from the same individual or the same address, regardless of whether the key district director has made a harassment determination. The organization must continue to comply with public inspection requirements. Please address any questions regarding section 6104(d) to Deirdre Dessingue Halloran at 202 -541 -3300 or dhalloran @nccbuscc.org, or your diocesan attomey. 6 The application consists of a written statement giving the organization's name, address and contact phone number, and a detailed description of the facts and cirumstances supporting a determination that the organization is subject to a harassment campaign. The organization may suspend compliance based on its reasonable belief that a request is part of a harassment campaign, provided that it files an application for determination within 10 business days from the day it first suspends compliance, and may continue to suspend compliance until it receives a response to its application. 8 a • CERTIFICATE OF INSURANCE PJL -21 -99 WED ,055 �i :37 FM CATEC RITIES 7 t - La ' iL, oc qH L' 012E Real Property Personal Property Deductible THE CATHOLIC MUTUAL RELIEF SOCIETY 4223 CENTER ST, OMAHA, NE 68105 CERTIFICATE OF COVERAGE FAX:523 6773 PAGE 2 0 .944 PP.2/3 This is to certify that the following coverage is in force issued in tha name of: THE ROMAN CATHOLIC CHURCH IN THE STATE OF HAWAII CHANCERY OFFICE 1184 BISHOP STREET HONOLULU. HI 96813 -2859 Certificate Number: 8546 Tern: 7/01/99 - 7/01/00 Covered Premises: Location /Property CATHOLIC CHARITIES COMMUNITY SERVICES 250 S. VINEYARD ST., HONOLULU, 11I 96813 Coi Additional COUNTY OF HAWAII Protected Person(e) Liability 1,000,000 Medical Payments Limits (Each person - excluding school Students) COMMENTS: COVERAGE ONLY EXTENDS TO THE COUNTY OF HAWAII POR CLAIMS, WHICH DIRECTLY ARISE OUT OF CATHOLIC CHARITIES FULFILLMNOT OF ITS OBLIGATIONS AS OUTLINED IW THE AGREEMENT TO PROVIDE BONELESS SHELTER SERVICE AT THE KAWAIHAE EMERGENCY TRAVStTIONAL SHELTER. In the event of cancellation of this coverage the Society will mail notice thereof to: CHANCERY OFFICE HONOLULU, HI ' Should any of the above described coverages be candelled before the expiration dates thereof, the carrier will endeavor to mail 30 days written notice to the certificate holder, but failure to mail such notice will impose no Obligation nor liability upon the Society. Unless so designated, this certificate of coverage does not amend, extend, or alter the °overage evidenced by thin certificate of coverage and has bean issues as a matter of information only. Dated at OMAHA, NEBRASKA This 15TH Day of JULY Fora Humber 090192 JUL -20-99 TUE 08:49 AM FROM:808 540 4301 TO:CP.THOLIC CRARIT :ES PAGE 2 1999 i`- WEE 05:3$ FM CATIthi C CHCHARITIES IZ. CV. IJ7J 0Etzs (� 's�i + .i. V' _ Gip ENDORSEMENT (TOtZATT Ca®masRTWcA1 FAX:523 8773 • FAGE 3 1 PS: 373 EfbcWe ores oftedomanwe diy t, t Charge Credit Cametaten Date ot esnarsareent .biy t , moo t:ertna Molder 131o03ee at Haaecsu Location Maotuh , NI CestiraeeeNo, adds a /he Cat horx WSW Ref Sack* azmdedasSam SECTION 11- ADDMONAL PROTECTED PERSON(S) Y is ,e un � derstood and agreed nut Section A • Lfeblb (On& WO reenact0 COsetaae D - General Liability. y. Cow age F - Medical Paymentsta Payments Others end Coverage M - Carding Emma erd Omissions) b emendedb/ WJtdees alAdllbefplPrefee0ed Peramp )ambersot theofpankaboassbawn In te schedule. but aty with reared tetbdr tetdly WS Pmided Perean(q tinges or edhttes they palm on tenetef eta Protected Pa lat(a). It is tarost tndetslocd tad Weed V'* moersge extended undermi eadorse%oant in 6mbd to and applksoNywih mend b4tbtEy mourned by *snout aware ttandEsteextensionof awerege ;Nye not entwooen same d comma plSAted under Ina wt4osteorticte seme of Reny thereunder. Unless agar; egeod by !mead or weetsad, Owe ago idsnded!Alder 1hls uMatementb the A dlonalProtege dPrwartit $pldotpeoedethedledlva tartl4cato of cowrie atgorcamadar Wad beyond Eta cancellation dab. Cour& at Rani Sahoddo •ADDITIONAL PRO VECTED PERSON(S) Rematkt COVeraae only Went to the Ceuta of Nawen tor dales, elhltle d iroly else out d Cantoac Chases tdtruntdf b °Wagons as caned In the agreement b ran* homeless shelter sanite at the aasednee eragentyTrenedlfl $tae(. JUL - 20 - 99 TIDE 08:49 AN FROM:808 540 430: TO:CATHOLIC CHARITIES PAGE 3 • CHARTER OF INCORPORATION Of CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU (As Amended December 19, 1989) TO ALL TO WHOM THESE PRESENTS SHALL COME: 1, WALTER D. ACKERMAN, JR., Treasurer of the Territory of Hawaii, send Greetings: WHEREAS, JAMES J. SWEENEY, Bishop of the Diocese of Honolulu of the Roman Catholic Church, REV. ROBERT SCHOOFS, REV. EDWIN J. KENNEDY, SISTER VICTORIA FRANCIS LARMOUR and JOSEPH O'DONNELL, hereinafter called the Petitioners, have made application to me as Treasurer of the Territory of Hawaii as aforesaid that a Perpetual Charter of Incorporation be granted to them whereby they and those who may hereafter become associated with them and their successors may be made a body corporate of the Territory of Hawaii, in perpetuity, under the name of CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU, with all the rights, powers, privileges and immunities which are now or may thereafter be secured by law to a corporation of such nature; NOW THEREFORE, know ye that 1, the said WALTER 0. ACKERMAN, JR., as such Treasurer aforesaid, by and with the advice and consent of the Acting Governor of said Territory and in the exercise and execution of every power and authority in anywise enabling me in this behalf hereby constitute the said petitioners and their associates and successors a perpetual body corporate under the laws of the Territory of Hawaii, under the name of "CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU: The objects and purposes of the corporation shall be as follows (a) To take over and carry on the charitable work of the Roman Catholic Bishop of Honolulu, a corporation sole, which work is presently being carried on by it under the name of "Catholic Charities "; (b) To educate, place and care for dependent, delinquent and destitute children; • • ARTICLES OF INCORPORATION • • CHARTER OF INCORPORATION Of CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU (As Amended December 19, 1989) TO ALL TO WHOM THESE PRESENTS SHALL COME: I, WALTER D. ACKERMAN, JR., Treasurer of the Territory of Hawaii, send Greetings: WHEREAS, JAMES J. SWEENEY, Bishop of the Diocese of Honolulu of the Roman Catholic Church, REV. ROBERT SCHOOFS, REV. EDWIN J. KENNEDY, SISTER VICTORIA FRANCIS LARMOUR and JOSEPH O'DONNELL, hereinafter called the Petitioners, have made application to me as Treasurer of the Territory of Hawaii as aforesaid that a Perpetual Charter of Incorporation be granted to them whereby they and those who may hereafter become associated with them and their successors may be made a body corporate of the Territory of Hawaii, in perpetuity, under the name of CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU, with all the rights, powers, privileges and immunities which are now or may thereafter be secured by law to a corporation of such nature; NOW THEREFORE, know ye that I, the said WALTER D. ACKERMAN, JR., as such Treasurer aforesaid, by and with the advice and consent of the Acting Governor of said Territory and in the exercise and execution of every power and authority in anywise enabling me in this behalf hereby constitute the said petitioners and their associates and successors a perpetual body corporate under the laws of the Territory of Hawaii, under the name of "CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU." The objects and purposes of the corporation shall be as follows (a) To take over and carry on the charitable work of the Roman Catholic Bishop of Honolulu, a corporation sole, which work is presently being carried on by it under the name of "Catholic Charities "; (b) To educate, place and care for dependent, delinquent and destitute children; .ti • • (c) To establish , maintain, operate and conduct schools, orphanages, asylums and hospitals within the United States, its territories and dependencies: (d) To function as the central diocesan organization to which the Roman Catholic Bishop of Honolulu may delegate the responsibility for the conduct, supervision and the development of the charitable works within the Roman Catholic Diocese of Honolulu; (e) To coordinate and correlate charitable agencies, to direct the work of the Roman Catholic Diocese of Honolulu in the major functional fields of health, social action, social group work and social case work, including child placing and child care in institutions and family foster homes; (1) To function as the official representative of the Roman Catholic Diocese of Honolulu, its dealings with kindred agencies in the Territory of Hawaii and its participation in community movement for the promotion of the general welfare; (g) To carry on all and every variety of charity work connected directly or indirectly with the religious work of the Roman Cathoiic Church in the Territory of Hawaii. (h) To carry on any work of a charitable nature within the United States, its territories and dependencies, which it may deem expedient or desirable; (1) To organize and direct any subsidiary agencies, units or auxiliaries needed to carry out any of the above works; and (j) To operate exclusively for charitable and educational purposes within the meaning of Section 501 (c) (3) of the Internal Revenue Code, including, for such purposes, the making of distributions to organizations that qualify as tax - exempt organizations under Section 501 (c) (3) of the Internal Revenue Code (or any future corresponding provisions) II. The corporation shall have the following powers: (a) To provide buildings and grounds and to maintain the same for the purposes and objects of the corporation; (b) To purchase, lease or to acquire by exchange or by gift or otherwise any lands, buildings and property, real or personal, which may be requisite for the purposes of or conveniently used in connection with any of the objects of the corporation, and to own, hold, use, sell, demise, mortgage, exchange or otherwise dispose of the same: • • (c) To hire and employ professional, clerical, maintenance and other employees as found necessary or convenient and to pay them reasonable compensation in return for service's rendered to the corporation; (d) To invest in securities of any other corporation or in any other investment, and to deal with the moneys and securities of the corporation in such manner as may from time to time be determined by the corporation; (e) To borrow, raise and give security for money by the issuance of promissory notes and /or other obligations or by mortgage, pledge, or hypothecation of all or any part of the property of the corporation and to raise funds for corporate purposes by public or private donation, subscription, contribution, or otherwise; (f) To purchase, furnish and supply equipment and paraphernalia convenient and necessary for all the purposes and objects of the corporation; (g) To merge or consolidate with any other corporation having any like corporate purposes and /or to acquire the property of any other such corporation and to assume any of its debts and liabilities; (h) To do all other such lawful things as are incident and conducive to the attainment of the purposes and objects of the corporation; and (1) To exercise all powers granted by law. III. The location of the principal office of the corporation shall be in Honolulu, City and County of Honolulu, Territory of Hawaii. Iv. The Corporation is a non - profit corporation and shall not authorize or issue any shares of stock. No dividend shall be paid and no part of the income or profit of the Corporation shall be distributed to the members, directors of officers of the Corporation. No loans shall be made by the Corporation to its directors or officers. The Corporation may, however, pay compensation in a reasonable amount to its members, directors, or officers for services rendered. Except as permitted by this Section 3.2 , no part of the assets or earnings of the Corporation shall inure to the benefit of any member of the Corporation nor any individual. The Corporation shall not participate in or intervene in (including publication or distribution of statements) any political campaign on behalf of any candidate for public office. Notwithstanding any other provision of the Corporation's articles of incorporation, the Corporation shall not carry on any activities not permitted (i) by a corporation exempt from Federal Income Tax under Section 501 (c) (3) of the Internal Revenue Code of 1986 (or corresponding provision of any future United Sates internal revenue law); or (ii) by a corporation, contributions to which are deductible under Section 170 (c) (2) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States internal revenue law). • • V. The Bishop of the Diocese of Honolulu of the Roman Catholic Church shall always be a member of the corporation. The other members of the corporation shall consist of those persons who may from time to time be appointed as members of the ' Roman Catholic Bishop of Honolulu, a corporation sole. Membership in the corporation shall be evidenced from time to time by the membership roll of the corporation. The Roman Catholic Bishop of Honolulu, a corporation sole, may by an insturment in writing filed with the corporation, expel, remove, or replace any member of the corporation for any reason at any time. VI. The By -laws of the corporation shall be adopted and amended by the affirmative vote of a majority of all the members of the corporation present in person or by proxy at a members' meeting, regular or special. VII. If upon the winding up or dissolution of the corporation there remains after satisfaction of all its debts and liabilities any property whatsoever, the same shall be distributed to the Roman Catholic Bishop of Honolulu, a corporation sole. . VIII. The corporation is not organized for profit and it will not issue any stock. IX. There shall be a Board of Directors, the number of which shall be fixed from time to time by the members, but which Board shall always consist of not less than three directors. The Board of Directors shall be elected as provided in the By -laws. At Least one director shall be a resident of the State of Hawaii. The Board of Directors shall have and may exercise all powers of the corporation except as otherwise provided by law, this Charter of Incorporation or by the By -laws. Provided that, until their successors shall be duly elected, the members of the Board of Directors shall be: JAMES J. SWEENEY, Bishop of the Diocese of Honolulu of the Roman Catholic Church REV. ROBERT SCHOOFS REV. HUBERT WINTHAGEN. • • X. The 13y-laws of the Corporation may provide for an executive committee and other committees of the Board of Directors, the method of their appointment, the number of their members, qualifications of members, tenure of office and the powers of such committees. XI. The principal officers of the corporation shall be a President, one or more Vice - Presidents, a Secretary and a Treasurer, all of whom shall be elected or appointed as the By -laws shall prescribe. Provided, that until their successors shall be so elected or appointed, the officers shall be: JAMES J. SWEENEY, Bishop of the Diocese of Honolulu of the Roman Catholic Church President REV. ROBERT SCHOOFS Vice - President REV. HUBERT WINTHAGEN - Secretary and Treasurer The president of the corporation shall at all times be the Bishop of the Diocese of Honolulu of the Roman Catholic Church. The corporation may have such other officers and agents as may be provided by the By -laws The offices of Secretary and Treasurer may be held by the same person. Officers other than the President need not be members of the corporation. Xfl. The corporation shall have power in and by said corporate name to sue and be sued, to make and use a corporate seal and to alter the same at its pleasure, to make and adopt and from time to time to amend or repeal By -laws not inconsistent with law or with the Charter of the corporation governing the qualifications, admission, suspension and expulsion of members and the voting and other rights, privileges and obligations of members and providing for the election, government and removal of its directors and officers and the management of its property and affairs. XIII. The property of the corporation shall alone be liable in law for the payment of its debts and liabilities. XIV. • • • Notice to and process against the corporation may be given to or served upon any of its principal officers. X V. The corporation will complete its organization within sixty (60) days from the granting of its Charter. IN WITNESS WHEREOF, I have hereunto set my hand and the Seal of the Treasury Department of the Territory of Hawaii, at Honolulu this 2tday of July, 1947. ' Treasurer of the Territory of Hawaii I consent to and approve the granting of the foregoing Charter. Governor of the Territory of Hawaii APPROVED AS TO FORM; /s/ Michiro Watanabe Deputy Attorney General /s/ W. D. Ackerman..Jr /s/ Ingram M. Stainback • • BY -LAWS glg/nih dw/nbyl.wa3 • BYLAWS • of Catholic Charities Community and Immigrant Services an Affiliate Agency of Catholic Charities of the Diocese of Honolulu As of July 1, 1999 ARTICLE 1 Name and Location Section 1.1. Name. The name of the agency is CATHOLIC CHARITIES COMMUNITY and IMMIGRANT SERVICES. The agency is an affiliate agency of the nonprofit Hawaii corporation, CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU. In these Bylaws, CATHOLIC CHARITIES COMMUNITY and IMMIGRANT SERVICES is called "CC Community and Immigrant Services" and CATHOLIC CHARITIES OF THE DIOCESE OF HONOLULU is called "Catholic Charities ". Section 12. Location. The principal office of CC Community and Immigrant Services shall be at such place in Honolulu, Hawaii as the Board of Directors of CC Community and Immigrant Services may determine. CC Community and hrunigranI Services may have other offices, either within or without the State of Hawaii as the Board of Directors of CC Community and Immigrant Services may designate, or as the activities. of CC Community and Immigrant Services may require from time to time. ARTICLE II Board of Trustees Section 2.1. General. The members of Catholic Charities consist of eight persons appointed from time to time as the members of the Board of Trustees of Catholic Charities by the Bishop of the Diocese of Honolulu of the Roman Catholic Church, who is hereinafter called the "Bishop." Section 2.2. Powers of Trustees. The Board of Trustees of Catholic Charities is vested with and exercises, either directly or as such Board of Trustees may delegate to the Board of Directors of Catholic . Charities, all of the corporate powers reserved to the Board of Trustees by the Bylaws of Catholic Charities, as reserved to the members of Catholic Charities by the Charter of Incorporation of Catholic Charities and the Bylaws of Catholic Charities, and as reserved to the members of a nonprofit Hawaii corporation which has a board of directors pursuant to the Hawaii Nonprofit Corporation Act, including but not limited to, the power to: (1) Approve, amend or repeal these Bylaws; (2) Remove members of the Board of Directors of Catholic Charities and of CC Community and Immigrant Services; (3) Authorize the sale, lease, exchange, or mortgage of all or substantially all of the property and assets of Catholic Charities; or (4) Adopt or modify the mission statement, vision statement or statement of core values of CC Community and Immigrant Services. ARTICLE III 'Reserved" ARTICLE IV Board of Directors • • Section 4.1. Powers of Board of Directors. All of the powers of CC Community and Immigrant Services, whether set forth generally, specifically, by law, or in these Bylaws, shall be vested in and exercised by the Board of Directors of CC Community and Immigrant Services, except those powers reserved to the Board of Trustees of Catholic Charities or the Board of Directors of Catholic Charities as provided herein and those reserved to members of Catholic Charities by iLs Charter of Incorporation. In addition, and without limitation to the foregoing powers, the Board of Directors of CC Community and Immigrant Services shall also possess the power: (a) To adopt policies governing the general organization, program, and conduct of CC Community and Immigrant Services; To elect officers provided in these Bylaws; To appoint and remove, with or without cause, with the participation and concurrence of the Diocesan Director of Catholic Charities (or in the absence of the Diocesan Director, the Bishop), the Executive Director of CC Community and Immigrant Services; (b) (c) (d) To implement personnel standards and practices and compensation of all positions of CC Community and Immigrant Services within the guidelines set by Catholic Charities; (e) To define the jurisdiction, duties and powers of all committees except as otherwise provided in these Bylaws; (f) To make and enforce rules not inconsistent with these Bylaws, regulating from time to time the affairs and conduct of CC Community and Immigrant Services and the conduct of its directors in connection with CC Community and Immigrant Services, and to give effect to such rules of the Board of Directors of CC Community and immigrant Services, or of committees as shall meet with the approval of the Board of Directors of CC and Immigrant Community Services; all as in the judgment of such Board shall seem advisable from time to time; (g) To approve the CC Community and Immigrant Services budget for submission and approval by the Board of Directors of Catholic Charities and, subject to such approved budget, make and authorize expenditures necessary for the conduct of the affairs of CC Community and Immigrant Services; (h) To delegate such of the powers listed above, or portions thereof, as it deems appropriate to the Executive Director of CC Community and Immigrant Services; and (i) To perform such other duties as may be necessary for the conduct of business of CC Community and Imm ogrant Services. Section 4.2. Number and Qualification of Directors. The authorized number of directors of CC Community and Immigrant Services shall be not fewer than nine (9) and not more than twenty-one (21) and may be changed annually by the Board of Directors of CC Community and Immigrant Services. The directors constituting the Board of Directors of CC Community and Immigrant Services shall be as follows: (a) The person acting from time to time as the Chair of the Board of Catholic Charities; and (b) Persons representing the Catholic Church and the community at large, who are hereinafter called the "Elected Directors," as may be elected by the Board of Directors and confirmed by the Board of Directors of Catholic Charities. At least one director shall be a resident of the State of Hawaii. Section 4.3. Appointment and Election of Directors. (a) The appointed director who serves on the Board of Directors of CC Community and Immigrant Services by virtue of appointment as Chair of the Board of Catholic Charities as described in Section 4.2(a) hereof shall automatically be appointed to the Board of Directors upon appointment as Chair of the Board of Directors of Catholic Charities without further action. 2 r A • • (b) Elected Directors shall be elected at a regular November meeting of the Board of Directors of CC Community and Immigrant Services or at any special meeting of the Board of Directors of CC Community and Immigrant Services called and held for that purpose. Elected Directors shall be elected for terms of three years except that Directors may be elected for a term equal to the unexpired term of a Director who shall have died, resigned or been removed and that Directors may be elected to a term of one year or two years such that the temrs of approximately one -third of all Elected Directors shall expire each year. Section 4.4. Term of Office. Terms of office shall commence immediately following confirmation by the Board of Directors of Catholic Charities, unless provided otherwise by the Board of Trustees of Catholic Charities. Each Elected Director shall hold office until December 31st of the third year following his or her election, or the final year of the unexpired term being filled by such Director, as the case may be, or until his or her death, resignation or removal, whichever is earliest. The appointed director shall hold office until death, resignation, or removal from the office set forth in Sections 4.3, 4.5 and 4.6. No Elected Director who shall be elected on or after July I, 1997 may hold office for more than six consecutive years, including any term as an officer of the Board of Directors. • Section 4.5. Vacancies. Should any permanent vacancy occur among the Elected Directors through death, resignation, removal or other cause, a successor to hold office for the unexpired term so vacated shall be selected by the Board of Directors of CC Community and Immigrant Services, subject to confirmation by the Board of Directors of Catholic Charities. Section 4.6. Removal. A majority of the Board of Directors of CC Community and Immigrant Services, after due consideration, may remove any director for any reason determined by such Board of Directors, in its sole discretion. Without limiting the foregoing, three absences from regular meetings of the Board of Directors of CC Community and Immigrant Services in any one calendar year are grounds for removal. ARTICLE V Actions of the Board of Directors and Committees 3 Section 4.7. Reduction. No reduction of the authorized number of directors shall have the effect of shortening the term of any incumbent director. Section 4.8. Liability. No director shall be personally liable for the debts, liabilities or obligations of Catholic Charities or its affiliate agencies. Section 4.9. No Compensation. Directors shall serve without remuneration. The Board of Directors of CC Community and Immigrant Services may provide for reimbursement of all or part of directors' expenses of attending meetings of the Board of Directors of CC Community and immigrant Services or committees. Section 4.10. Conflicts of Interest. No director shall discuss or vote on any matter under consideration' by the Board of Directors of CC Community and Immigrant Services or committee in which the director has a conflict of interest. The minutes of such meeting shall reflect that a disclosure was made and that the director having the conflict of interest abstained from discussion and voting. Any director may request the President of the Board of Directors of CC Community and Immigrant Services to determine whether a conflict of interest exists in any matter. The President of the Board of Directors of CC Community and Immigrant Services shall resolve the question. The decision of the President of the Board of Directors of CC Community and Immigrant Services shall be determinative for all purposes. In the event the President of the Board of Directors of CC Community and Immigrant Services is unable to resolve the question, the question shall be resolved by the Vice President of the Board of Directors of CC Community and Immigrant Services. Section 5.1. Regular Meetings. A regular meeting of the Board of Directors of CC Community and Immigrant Services shall be held at least annually upon call of the President or any four (4) directors. The Board of Directors of CC Community and Immigrant Services may provide, by resolution, the time and place for the holding of additional regular meetings. No notice other than such resolution need be given. • • Section 5.2. Special Meeting& Special meetings of the Board of Directors or of a committee may be called by or at the request of the President of the Board of Directors of CC Community and Immigrant Services or any four (4) directors or committee members. The person or persons authorized to call special meetings of the Board of Directors of CC Community and Immigrant Services or the committees may fix any place within the State of Hawaii as the place for holding any special meeting of the Board of Directors of CC Community and Immigrant Services or committee called by them. Section 5.3. Telephone Meetings. Subject to the provision below regarding notice, members of the Board of Directors of CC Community and Immigrant Services or any committee may participate in a meeting of the Board of Directors of CC Community and Immigrant Services or committee by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can communicate with each other at the same time. Participating by such means shall constitute presence in person at the meeting. Section 5.4. Notice. The Secretary or Executive Director shall give notice of each meeting of the Board of Directors of CC Community and Immigrant Services or any committee. Notice shall be in writing and be mailed to the director's mailing address, not less than three days before the meeting. Notice may be given personally, by telephone or facsimile not less than one day before the meeting. Notice may also be given as otherwise prescribed in advance by the Board of Directors of CC Community and Immigrant Services_ The failure of any director to receive notice shall not invalidate the proceedings or any meeting at which a quorum of directors is present. Notice need not be given to any director who shall, either before or after the meeting, sign a waiver of notice or who shall attend the meeting without protesting, prior to or at its commencement, the lack of notice. Except as otherwise provided by law or these Bylaws, a notice or waiver of notice need not state the purposes of the meeting. Section 5.5. Quorum and Adjournment. A quorum for the conduct of business of the Board of Directors of CC Community and Immigrant Services shall be the number of directors equal to forty percent (40 %) of the aggregate number of directors then duly acting (but not including directors who shall have died, resigned or have been removed). Forty percent (40 %) of the members of a committee then duly acting shall constitute a quorum of the committee. Except as otherwise required by law or these Bylaws, the act of a majority of all directors or committee members present at any meeting, at which a quorum is present, shall be the act of the Board of Directors of CC Community and Immigrant Services or committee. In the absence of a quorum, the presiding officer or a majority of directors present may adjourn the meeting from time to time without further notice until a quorum is present. Section 5.6. Action Without Meeting. Any action required or permitted to be taken at any meeting of the Board of Directors of CC Community and Immigrant Services or a committee may be taken without meeting if all of the directors or all the committee members consent in writing to the action. The consent shall be filed with the minutes of the Board of Directors meetings or committee meetings and shall have the same effect as a unanimous vote. ARTICLE VI Officers Section 6.1. Principal Officers and Terms. The principal officers of CC Community and Immigrant Services shall be a President, a Vice President, a Secretary, a Treasurer and an Executive Director. There may be such other officers and agents of CC Community and Immigrant Services with such powers and duties as the Board of Directors of CC Community and Immigrant Services may deem appropriate and who may be appointed to serve at the pleasure of the Board of Directors of CC Community and Immigrant Services. Section 6.2. The President. The President shall be an Elected Director and shall preside at all meetings of the Board of Directors of CC Community and immigrant Services. The President shall appoint members of standing and ad hoc committees and shall be an ex- officio voting member of all standing committees. The President shall serve as the CC Community and Immigrant Services representative on the Board of Directors of Catholic Charities. I 4 at • • Section 6.3. The Vice President. The Vice President shall be an Elected Director and shall assist the President in the performance of the President's duties. The Vice President shall preside at meetings of the Board of Directors of CC Community and Immigrant Services in the absence of the President. The Vice President shall also perfonn such other duties as may be required by the President, the Board of Directors of CC Community and Immigrant Services or these Bylaws. Section 6.4. The Secretary. The Secretary shall be an Elected Director and with the aid of staff shall be responsible for keeping the minutes of all meetings of CC Community and Immigrant Services and giving notice of all meetings of the Board of Directors of CC Community and Immigrant Services. The Secretary shall also perform such other duties as may be required by the President, the Board of Directors of CC Community and Immigrant Services or these Bylaws. Section 6.5. The Treasurer. The Treasurer shall be an Elected Director and shall be the chief financial officer of CC Community and Immigrant Services and with the aid of staff shall exercise general supervision over the receipt, custody and disbursement of CC Community and Immigrant Services' funds. The treasurer shall also perform such other duties as may be required by the President, the Board of Directors of CC Community and Immigrant Services or these Bylaws. Section 6.6. Executive Director. The Executive Director shall be the chief professional officer of CC Community and Immigrant Services and shall exercise general supervision over the affairs of CC Community and Immigrant Services. The Executive Director shall execute the policies and directives of the Board of Directors of CC Community and Immigrant Services and the President. The Executive Director shall keep the President, the Board of Directors of CC Community and Immigrant Services and the Diocesan Director fully informed to meet their responsibilities. Section 6.7. Election and Terms of Office. All officers other than the Executive Director shall be elected by the Board of Directors of CC Community and Immigrant Services, shall serve at the pleasure of the Board of Directors of CC Community and Immigrant Services, and shall be subject to removal at any time without cause by the Board of Directors of CC Community and Immigrant Services. Unless otherwise • determined by the Board of Directors of CC Community and Immigrant Services, the terms of office of officers • shall be one (1) year. The Board of Directors of CC Community and Immigrant Services may, in its discretion, elect acting or temporary officers and may elect officers to fill vacancies occurring for any reason whatsoever, and may limit or enlarge the duties and powers of any officer elected by it. The term of office of all officers shall commence immediately upon election to office by the Board of Directors of CC Community and Immigrant Services, subject to confirmation by the Board of Directors of Catholic Charities. Officers shall not serve more than three consecutive terms in the same office_ ARTICLE VII Nominations Section 7.1. Nominations Committee. There shall be a Nominations Committee of not.less than three (3) nor more than ten (10) members, including a chairperson, appointed annually by the President of the Board of Directors of CC Community and Immigrant Services. Vacancies in the committee shall be filled by appointment by the President of the Board of CC Community and Immigrant Services. Section 7.2. Nominations for Officers of the Board. The Nominations Committee shall prepare the slate of officers to be submitted, in a report, (1) for consideration by the Agency Relations and Nominations Committee of the Board of Directors of Catholic Charities each October and (2) to the Board of Directors of CC Community and Immigrant Services for election at the regularly scheduled meeting of the Board of D of CC Community and Immigrant Services in November or at a special meeting called for that purpose. Further nominations of officers may be made by any director from the Boor. Such election shall be subject to, confirmation by the Board of Directors of Catholic Charities Section 7.3. Secret Ballot. If there are any nominations in addition to those made by the Nominations Committee, the election shall be by secret ballot. 5 • • ARTICLE VIII Committees Such standing and ad hoc committees of the Board of Directors of CC Community and Immigrant Services may be formed as the Board of Directors of CC Community and Immigrant Services shall from time to time deem proper for carrying on the activities of CC Community and Immigrant Services or for the conduct of its business or affairs. The duties, time limit, jurisdiction and powers of each standing or ad hoc committee shall be defined by the Board of Directors of CC Community and Immigrant Services. There shall be at least one (1) director on each committee. The chair of each committee shall be a director. The remaining members of the committee may be persons other than directors. ARTICLE IX Execution of Instruments Section 9.1. Proper Officers. Except as otherwise provided by law, the Charter of Incorporation of Catholic Charities or these Bylaws, the Board of Directors of Catholic Charities may authorize any officer or officers, employee or employees, agent or agents, to enter into any contract or to execute any instrument in the name of and on behalf of Catholic Charities, and such authority may be general or confined to specific instances; and unless so authorized by the Board of Directors of Catholic Charities, no officer, employee or agent shall have any power or authority to bind Catholic Charities by any contract or engagement or to pledge its credit or to render it liable for any purpose or to any amount. Section 9.2. Restrictions on Signature Authority. No sale, conveyance, mortgage or other alienation or encumbrance of real property owned by Catholic Charities shall be effected unless it shall have first been approved by the Bishop and the Board of Trustees of Catholic Charities. ARTICLE X JReserved( ARTICLE XI Indemnification of Directors and Officers Section 11.1. No Liability to CC Community and Immigrant Services or to Catholic Charities. No director or officer of CC Community and Immigrant Services who serves without remuneration or expectation of remuneration shall be liable to CC Community and Immigrant Services or to Catholic Charities for damage, injury, or loss caused by or resulting from the person's performance of, or failure to perform, duties of any position to which the person was appointed, unless the person was grossly negligent in the performance of, or failure to perform, such duties. Section 11.2. Indemnification Generally. Catholic Charities shall defend and indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending or complete action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of Catholic Charities) by reason of the fact that the person is or was a director, officer, employee or agent of CC Community and Immigrant Services or is or was serving at the request of CC Community and Immigrant Services as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attomey's fees), judgment, fines and amounts paid in settlement, actually and reasonably incurred by the person in connection with the action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of CC Community and Immigrant Services, and, with respect to any criminal action or proceedings, had no reasonable cause to believe the person's conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that the person did not act imgood faith and in a manner which the person reasonably 6 a • • believed to be in or not opposed to the best interests of CC Community and Immigrant Services or, with respect to any criminal action or proceedings, create a presumption that the person had reasonable cause to believe that the person's conduct was unlawful. Section 11.3. Suits by or in the Right of Catholic Charities. Catholic Charities 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 or suit by or in the right of Catholic Charities to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of CC Community and Immigrant Service§, or is or was serving at the request of CC Community and Immigrant Services as a director, officer, employee or agent for another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attomey's fees) actually and reasonably incurred by the person in connection with the defense or settlement of the action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interest of CC Community and immigrant Services and except that no indemnification shall be made in respect of any claim, issue or matter as to which the person shall have been adjudged to be liable for negligence or misconduct in the performance of the person's duty to CC Community and Immigrant Services unless and only to the extent that the court in which the action or suit was brought shall detennine upon application that, despite the adjudication of liability but in view of all the circumstances of the case the person is fairly and reasonably entitled to indemnity for expenses which the court shall deem proper. Section 11.4. Effect of Success in Defense. To the extent that a person who is or was a director, officer, employee or agent of CC Community and Immigrant Services has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections 11.1 and 11.2, or in defense of any claim, issue or matter therein, the person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by the person in connection therewith. . Section 11.5. Indemnification not Exclusive. The indemnification provided by the article shall not be deemed exclusive of any other rights to which those indemnified may be entitled and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of the person. ARTICLE XII Rules of Order In all meetings under these Bylaws, at the request of any member of the body meeting, Robert's Rules, of Order latest edition, shall be used as a guide to govem procedure. ARTICLE XII1 Amendments These Bylaws may be amended by an affirmative vote of a majority of the Board of Trustees of Catholic Charities. 7 Certificate of Catholic Charities • Pursuant to Section 3 of Article VI of the Bylaws of Catholic Charities, the undersigned Secretary of Catholic Charities hereby certifies that the Trustees of Catholic Charities approved these Bylaws of Catholic Charities Community Services at a meeting duly called and held on the 13th day of December , 1997 DATED: Honolulu, Hawaii, January 10. 1998 ,: CATHOLIC CHARITIES of the Diocese of Honolulu, a Hawaii nonprofit corporation. By: Secretary, Corporate.Board