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HomeMy WebLinkAboutCOM 0667.038 1998-2000 µ((q Secured- r/wvn' • l 0 N Stephen K. Yamashiro ` , •' Ul;• � a. Harry A. Takahashi V -' Mayor . f6 .3 Uvrc vr•, ...o.�.. \• Pi .. , 7 S. K. Srhutte . ._. E pp .4.4" Depot • County of jjat DEPARTMENT OF FINANCE 25 Aupuni Street. Room 118 • Hilo. Hawaii 96720-4252 I I • (808) 961-8234 • Fax(808)961 -8248 • HAWAII COUNTY NONPROFIT GRANTS (FY 2000 -01) I IUMAN SERVICES NONPROFIT GRANTS REVIEW COMMITTEE (1- ISNPGRC) FISCAL YEAR ENDING: June 30, 2001 DATE OF APPLICATION: January 31. 2000 GRANT APPLICATION FOR: Mental Help Haw • ii/Hawaii Island Services Legal Name of Organization: Mental Help H • waii • Mailing Address: 193 Kinoole St., Rm. #9. Hilo. HI 96720 II Facility/Site Address: 360 I•ehua St., Hilo. HI 96720/75 -5750 Alanoe Pl.. Kailua -Kona. HI 96740 Hawaii Services Director: Gary Michell Phone: (808) 331 -1468 Organization President: Walter Ozawa Phone: (808) 737 -2523 Contact Person (Grant Writer): Gary Michell. MS Phone: £808) 331 - 1468 Amount of request for County funds: $20.000 Total annual budget of organization: $3.022.600 Has the applicant applied for any other funds from the County of Hawaii this fiscal year? Yes Source/Department: X No • Agency /Programs(s): &Social Services Youth Programs Elderly Programs Check Category(ies) Culture and Arts _ Education Other Briefly; define the program for which funding is being requested: Residential Rehabilitation.Services Staff provide 24 hour residential supervision, transitional rehabilitation services, and supportive housing services with the goal of enabling clients to move on to more independent housing. . While in placement, clients are assisted in acquiring personal and so,;cial survival skills necessary for sustained community living. Social, recreational and educational activities are planned and implemented with Mental Help Hawaii consumers, to enhance daily living skills and to engage • and involve participants with community resources and facilities. /y p Gomm. No, & 03 0 File No. • ADM Ref. To: 15eDG • Ref. Date F EB 2 3 2000 • • 4r 4 QUALIFYING STANDARDS FOR APPLICANTS An applicant must meet all of the following standards: (� 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. • 0 Have a governing board whose members serve without compensation and have no conflict of interest between their regular occupations and the services provided. (0 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. • (5 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. (5 Be licensed and accredited in accordance with applicable requirements of Federal, State and County laws. 11. 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 laws, 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 ivithin ! ' •, ` t • 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. r: .a, 2 • 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: I) 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 • 41FN /-,LEG.P / /I (Legal Name of Organization) hereby agrees to administer the 8651 D 6.4) m41- r'R E N4 &R- /TATIO.J .SEk.V/C.CS (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 • l }. 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! ' — /4/ 6� Signature of Presiders hai erson Date Signature of Executive Direc • anager Date • • 4 t. ) • • PROGRAM /SERVICE DESCRIPTION A. Overview: 1) Describe the program for which funding is being requested: Funding is requested for our transitional residential services. Our transitional rehabilitation facility in Hilo opened in August 1991 and in Kona, the Stabilizing Urgent Residential Facility (SURF) opened in October 1998 to fill critical gaps in Hawaii County mental health services, . providing residential care and rehabilitation services for adults in Hawaii who are recovering from serious mental illnesses. As community resources, these projects provide cost effective, humane alternatives to institutional care and/or homelessness. Transitional bed day costs for FY 2000 are estimated at $72. Comparatively, a bed day in Hilo Hospital or Kona Hospital psychiatric unit costs in excess of $600. 2) What unique or significant service will be provided? Mental Help Hawaii is the only not - for - profit agency providing residential and social rehabilitation services exclusively to adults with serious mental illness. Services are complementary to other services in the community. 3) What specific outcomes are to be achieved? Changes in assessment of independent living scores are used to determine level of improvement in self -care. Additionally, evidence of sustained independent living capability is obtained through follow -up three months after discharge. 4) How will the proposed program empower participants /clients to become self - sufficient and facilitate positive social change? Our services will enable persons with severe mental illnesses to improve their living and social skills which are necessary for sustained community placement. Clients are involved in designing, implementing and developing their own residential service plan, thereby setting the expectation for investment and involvement in successfully achieving objectives. This can empower them to sustain placement in the community and will avert unnecessary and costly psychiatric hospitalizations. Social, recreational and educational activities are planned and implemented with Mental Help Hawaii consumers, to enhance daily living skills and to engage and involve participants with community resources and facilities. B. Problem/Need: 1) What is the problem/need the proposed program is designed to meet? Mental Help Hawaii focuses services on adults with serious mental illness, who number more than 20,000 in the State of Hawaii, with a prevalence of 1562 for the Island of Hawaii noted in 1995 by the Department of Health. Specific problems and needs of this population include difficulty in accessing affordable, appropriate housing, limited social skills, lack of • • experience in self -care and independent living, and inadequate and/or inconsistent follow through with mental health services. 2) Who are the Target population and what are the specific needs? We serve adults from Hawaii County with a serious mental illness whose specific needs are transitional housing, with 24 hour on -site staffing and social rehabilitation services leading to increased independence. • 3) What is the geographical area(s) to be served, facility and hours of operation? The geographical areas are East and West Hawaii. Hale Lehua, our residential rehabilitation program, consists of two (2) houses located at 360 Lehua Street, Hilo. Hilo Hale is at 208 Wainaku and our Stabilizing Urgent Residential Facility (SURF) House project is at 75- 5750 Alanoe Place in Kona. Mental Help Hawaii provides on -site or on -call services 24 hours a day, 365 days a year. 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? Mental Help Hawaii is an integral part of Hawaii's resources for mentally ill persons, and the agency works in close collaboration with a number of public and private human service organizations, including the regional community mental health centers of the Department of Health, Hilo and Kona Hospitals, Mental Health Association, Hawaii Island Health and Human Services Council, United Way, and Community Care Services. Mental Help Hawaii is a direct service provider, and is not currently contracting with other agencies. 2) How will these measures reduce or eliminate any existing duplication of services to your designate target group? Staff work collaboratively with Hawaii County Community Mental Health Center staff and mental health professionals, including case managers, prior to and during placement to ensure treatment goals are met, clients have follow -up placement and support after leaving, and services are complementary. D. Goals and Objectives: 1) What are the major goals /benchmarks of the proposed program? The goals are to provide residential and social rehabilitation services to 50 unduplicated persons with serious mental illnesses. • • 2) What specific objectives /action steps are planned for each goal? Changes in assessment of independent living scores are used to determine level of improvement in self -care. Additionally, evidence of sustained independent living capability is obtained through follow -up three months post discharge. Finally, client feedback is solicited through client satisfaction survey forms. 3) What is the timeline (start and end dates) for each action step? Services are on - going 4) What significant' client- centered outcomes(s) will the program achieve? Include in your answer how many participants /client will: a) Attain at least one personal program outcome; Of the 50 persons served 90% will move to more independent living settings. b) Show measurable progress towards your program goals. Of the 50 persons to be served 90% will show significant improvement in their daily living skill scores after three or more months of service. • E. Service Delivery: 1) What methodology will be used in the proposed program's delivery of service(s)? Residential and rehabilitation services include transitional housing staffed 24 hours each day as well as social, educational and recreational activities including training in daily living skills, respite services and day activities. Millieu therapy, modeling, individual counseling groups, and one on one teaching sessions, as well as medication monitoring, are incorporated into the environment of our residential rehabilitation projects. F. Evaluation: 1) What process will be used to evaluate the program and service(s)? Client progress is assessed through measurement tools approved by the State and by Community Care Services, and client follow up after discharge. Mental Help Hawaii residential programs are accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF). • • F A 2) How will this process measure the outcomes specified in Item D, (1 -4)? The Adult Mental Health Division, the Housing and Community Development Corporation of Hawaii, and Community Care Services/HMSA monitor the quality of care, as well as achievement of outcome objectives through quarterly reports and annual reviews. Quality assurance reviews occur throughout the year at the project sites and through CARF standards review. G. Program Fees: • 1) Does your organization charge a membership fee for service participants? [If yes]: Describe or attach fee for service information. No. 2) Does the proposed program charge participants a fee for service(s) provided by your organization? Yes [If yes]: a) Describe or attach fee for service information; a) Fee policy for transitional housing is as follows: $280 Monthly rent - to cover basic shelter expenses. $120 Monthly Basic Needs - to cover food and household supplies. b) Describe how you will ensure that all interested participants will be included despite an inability to pay the entire fee. b) Mental Help Hawaii fees are based on what persons receiving the minimum • disability benefits can afford. H. Viability: 1) What is your justification or rationale for the expenditure of public funds for the proposed program? Transitional residential placement is provided for persons with serious mental illness who might otherwise be in jail, in Hilo or Kona Hospital, and/or on the streets. These are the primary such resources in Hawaii County targeted for this population. • r , • • 2) • What are your financial and programmatic plans to sustain the proposed program beyond the upcoming fiscal year? Mental Help Hawaii is a multi- funded non - profit agency and has a 27 year history of providing community based services in the State. Residential services, funded with Hawaii County support, have been in existence since 1991, and meet a critical community need. Ongoing support is anticipated from the multiple funding services. I. Budget: 1) Complete the attached Budget tables; and 2) Provide appropriate attachments, as indicated. ORGANIZATION /AGENCY INFORMATION A. Board of Directors: 1) Has the organization's Board of Directors received formal training within the past two (2) years? Yes. See board retreat agenda. [If yes]: Attach certification /verification of board training. [If no]: . a) What plans do you have to provide formal training to your Current Board of Directors? Board retreats are held on an annual basis. Board training occurs on an ongoing basis. Formal Board member handbooks are distributed to each Board member and updated annually. b) When will the next board training be completed? Strategic Board planning will re -occur early in 2000. c) How will you provide formal training to newly arriving board members or board members who miss a scheduled training? The Board Chair and CEO provide training materials to members who miss scheduled training. • • • 2) What are the primary roles and responsibilities of your organization's Executive Director. The primary roles of the Executive Director include the management of the professional and business affairs of the corporation including the hiring, setting of salaries, supervision and direction of the employees of the corporation, and the development and maintenance of services of the corporation in fulfillment of its aims and purposes. The CEO is expected to establish and maintain effective liaison with the Board of Directors. 3) What are the primary roles and responsibilities of your organization's Board of Directors? (Clarify role of executive officers vs. general membership). The Board of Directors has the power to formulate corporate policy and objectives, to acquire and dispose of property, to appoint officers, agents, and to hire the CEO of the corporation, to make rules and regulations for the operation of the corporation, to create committees of the Board of Directors and generally to do any and every lawful act necessary and proper to carry into effect powers, purposes and objectives of the corporation. The roles of the executive officers include: The chair shall represent the organization at all appropriate meetings of other national organizations, preside at meetings of the Board of Directors, and appointed committees. The vice chair shall be the chair elect and in the absence of the chair perform the duties of the office. The secretary shall have custody and care of the corporate seal and minutes of the corporation. The treasurer shall chair the finance committee and submit the accounts and records for audit. B. Past performance: 1) How effective has your organization /agency been in achieving program goals in the past two (2) fiscal years? Include the following information: a) Quantitative data on numbers served; In FY 1998 forty -eight (48) persons in Hawaii County received transitional and rehabilitation services. In FY 1999 forty -six (46) persons in Hawaii County received transitional and rehabilitation services. b) Qualitative data showing number and % of participants achieving measurable outcomes. In FY 1998, 90% of residents showed an increase in living skills scores after three (3) months of service. In FY 1999, 90% showed an increase in living skills scores after three (3) months of service. t ' • • C. Financial: 1) Have your organization's current program operations remained the sane as last year? What major program or financial changes will be incurred next year? Four Crisis Stabilization beds at our Stabilizing Urgent Residential Facility (SURF House) in Kona are being added to our residential treatment program. Funding for these services will be provided through the Department of Health, Adult Mental Health Division. 2) What is the status of all of your organization's major contracts or agreements for the coming year (employment agreements, office leases, primary grant revenue /supplier, etc.)? No significant changes. 3) How does the proposed program fit into your organization's long range financial plan? Residential facilities fit into the spectrum of community based services for persons with psychiatric disabilities and fit well with the agency plan. Mental Help Hawaii is committed to working with Housing and Urban Development(HUD), Housing and Community Development Corporation of Hawaii(HCDCH), the State Department of Health, County of Hawaii, Hawaii Island United Way, Community Care Services and other funders to ensure services are available to this vulnerable population. D. Monitoring: 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 all monitoring sources, contract names and phone numbers. Mental Help Hawaii receives annual fiscal and program services monitoring from the following organizations: Adult Mental Health Division Community Care Services - Hawaii Island State Department of Health Paula Vickery Ida Otaki at (808) 974 -4300 (808) 935 -3481 Catha Combs, Auditor Wikoff, Combs & Co., CPAs Housing & Community Development 900 Fort Street Mall Suite 1040 Corporation of Hawaii Honolulu, Hawaii 96813 Gary Nakatsu (808) 528 -7322 (808) 832 -5930 • • i f E. Alcohol Tobacco and Dru. -Free Work lace Policie and Information: 1) How does your organization address alcohol, tobacco, and other drug prevention information dissemination as part of your workplace and /or program environment? 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' O vl O 1 5 r t $ ,�, ,w '� 4nr t X E: V'1 N - a N 00 M Oa o- fiiat i, rat v } l "3 i 'Sz, Z 1471.4p4: i O 4j p i l t i EE �� 4 x i s tr i p, 446 cn a. p v O O O O O O p ' t �: O N O O W O O N O \O O O1 Q' o E f X ; M V1 ci gin E O ' t ,' t +'' p r't' t p Y ON„ i„ a,j .. _ I . Y d ¢ �Si t`°,� •U b 4 1 • O ll O en O O O O 'd ' x O O N 0 V' W O t: O M O ‘.0 in M O a 0 o O f � O .t p; <4 in" O t W t N t'' 00 to rn 0) ifs H 4:-.01 z A'i 0n w w i¢ ti >,t,' o z • L f- ° pf O t� 7 Yy 2 H AP � N .t N tt,rt ` x . "° -- i + '1 0n'3 n y ❑ p E o w : a 0 ' O f ; ,7. N P c') 0•0 , p T ' X C 'O 0:0 r r n O ct 'G t 'd O a s N 4 . N .0 O O 3 t t ¢ u ,,, r . c i, V w a ¢ 0 w a> H F 0 U + r r • • 4 ^ l V OF p • y Stephen K. Yamashiro \,,1 /; \'; Harry A. Takahashi Mayor — 1 t Director • ( S. K. Schutte • Countp of 3athaii • DEPARTMENT OF FINANCE • 25 Aupuni Street, Room 119 • Hilo, Hawaii 96720 -4252 , (908) 961 -8234 • Fax (808) 961 -8248 • HAWAII COUNTY NONPROFIT GRANTS (FY 2000 -01) . FINANCIAL QUESTIONNAIRE Please include as an attachment an explanation for all "NO" answers to questions ti 1 thru 11 below: Yes No i (5 1. Has the agency operated continuously for the past three (3) years? 0 (S 2. Has the agency operated with a positive cash Flow for the past (3) years? ( 0 3. Does your Board of Directors approve a detailed cash flow budget before the beginning of each fiscal year? (!V (5 4. Do your Board meeting minutes show that quarterly financial statements are approved? V' (0 5. Is your equity balance at least 20% of your Total Liability balance? 0 6. Is your Total Current Asset balance larger than your Total Current Liability balance? (5 7. Are bank reconciliations and accounting performed by someone other than the check signatory? J 0 8. Are you fully insured for the agency's vehicle(s) and building(s)? W (5 9. Is your Workers' Compensation at least 2% of payroll? ( (5 10. Are you current (not delinquent) on all payroll and payroll tax payments? (5 11. 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? I f yes, please explain. As the grant applicant, 1 cert5 that the agency has satisfactorily responded to each of the above questions and explained as needed. 1 hereby certify that this i fornm n is true and rrect to the best of my knowledge. Agency: rnb4'�L 64T1/° kv,4% i Phone: nes 737 -as0 Prepared by: Lin/ 006&'31 12/24- tb 1 ' / /i co Print Namefritle / " BITS /�k 5 anent Sign Lure Dale Certified by: J n' hJG %tln12)6 002 / /—A1-1,0 Print Name of Executive Director 'I, Signature r Da(c • • • • MENTAL HELP HAWAII Financial Statements June 30, 1999 and 1993 % • • O Wikoff, Combs & Co. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report Board of Directors 'Mental Help Hawaii We have audited the accompanying statements of financial position of Mental Help Hawaii (a nonprofit organization) as of June 30, 1999 and 1998, and the related statements of activities and changes in net assets, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted 'auditing standards, Government Auditing Standards issued by the Comptroller General of the United States and the provisions of Office of Management and Budget Circular A -133, "Audits of Institutions of Higher Education and Other Nonprofit Institutions". 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 audits provide 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 Mental Help Hawaii as of June 30, 1999 and 1993, and the changes in its net assets and its cash flows for the years then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated September 17, 1999, on our consideration of Mental Help Hawaii's internal control structure and a report dated September 17, 1999, on its compliance with laws and regulations. Honolulu. Hawaii September 17, 1999 900 Fort Street Mall, Suite 1040, Honolulu, HI 96813 -3711, Tel (8081528-7322, Fax (808) 536 -0364 waikea Villas, 400 Hualani St., Suite 193A. Hilo, HI 96720, Tel /Fax 18081 9331932 MENTAL HELP HAWAII Statements of Financial Position June 30, 1999 and 1998 ASSETS 1999 1998 Current assets: Cash $ 141,311 $ 259,551 Receivables: Govemment agencies 197,313 263,049 Residents and other 36,774 57,311 Program development (Note 12) 22,173 27,833 Prepaid expenses 26,123 36,687 Total current assets • 423,694 644,431 Property and equipment (Notes 2 and 3): Land 853,519 853,519 Buildings and improvements 803,515 810,015 Furnishings and equipment 128,861 139,164 Vehicles 136,979 130.739 1,922,874 1.933,437 Less accumulated depreciation and amortization 371.371 327,471 Total property and equipment 1,551,503 1.605,966 Other assets: Investments held in trust (Note 4) 153,429 1 1 1,724 Restricted cash and funded reserves for H.U.D. project 11,390 19.469 Annuity investment (Note 9) 43.015 3.974 Deposits and other 24,169 20.892 Total other assets 232,003 156.059 Total assets $ 2,207,200 $ 2.406,456 See accompanying notes to financial statements. 2 } • • MENTAL HELP HAWAII Statements of Financial Position June 30, 1999 and 1998 LIABILITIES 1999 1998 Current liabilities: Bank overdraft - $ 33,790 Mortgage notes payable - current portion (Note 3) 4,697 4,283 Accounts payable 83,680 88,301 Accrued interest payable 3,183 3,216 Financed insurance premiums 2,768 2,768 Resident deposits and other 11,168 9,018 Accrued vacation 36,624 35,820 Total current liabilities 142,120 177,196 Mortgage notes payable, net of current portion (Note 3) 834,736 839,433 Total liabilities 976,856 1,016,629 Commitments (Note 7) NET ASSETS • Unrestricted: Undesignated 176,344 196,451 Board designated (Note 5) 110,000 110,000 Invested in property and equipment 712,071 762,250 Total unrestricted 998,415 1,068,701 Temporarily restricted: Endowment (Note 4) 153,429 111,724 Restricted for designated purposes 78,500 209,402 Total temporarily restricted 231,929 321,126 Total net assets 1,230,344 1,389,827 Total liabilities and net assets $ 2,207,200 $ 2,406,456 See accompanying notes to the financial statements. 3 • • • • z z m b > z �zsznxa � bn � R • T1'0 w n .'O In W -i 0= y ',1 n ^. g d O O 9, o v D'. d rt t7 H o . a o ^ a R b '� n o � io c �r y v 4A a r R c o c m m s e. c 3 j . 7 v n d 7- n D 7 v r. ° "', a `° ? 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J IJ w J J N W w O, Q, V. 0 . w 4 — W O, J J , O V• � .— — T O y 1..., 10 CO 0 w 1 0 I J W 0 V Va ,p • O . J O W J - 4 J J v 0 IJ W ■ 0 - 4 O 0 V. J CO CO ' 4 ' 0 ' 0 0 1 4 . _ ! 0 ■ 144 ' • O • W q I I I w w w Va N CO — 0 0 00 O, W. V• _ r 4 4 '0 v. -a .� IJ 0, 00 J J , V 0 0 0 . 4.., I I 4 N '0 1J O v . W ,0 10 N ■ 0 0 1J , V W W . w W .00 J r IV J •.�. V. 00 O J I V' P w O w 'CO IJ W 1 '0 •--. w V ,O 0, J W 4. CO CO V. w ON CO 0. O, J 0 1J 4 J 0 110J . • t i • _ - 4 dl . N r I I M I A E „ , _ o '. u o l 1, - E ` . , - N nl N u r n - 4 _• 7 .... ._ •• G . G J [ L '4 A 5 6 A A L : i u E ', E E '' e E n g;• 1 a ' — c 5 1 . • • # MENTAL HELP HAWAII Statements of Cash Flows . For the Years Ended June 30, 1999 and 1998 • 1999 1998 Cashflows from operating activities: Changes in net assets $ (159,483) $ 89,394 Adjustments to reconcile changes in net assets to net cash (used) provided by operating activities: Depreciation and amortization 67,092 66,235 Loss on disposal of equipment 2,763 - Unrealized (gain)/loss on investxnents (17,279) (19,641) (Increase) decrease in assets: Receivables 91,933 45,573 Prepaid expenses 10,564 35,435 Investment held in trust • (24,426) (34,937) Deposits and other (3,277) 22,617 Increase (decrease) in liabilities: Accounts payable (4,621) 37,867 Financed insurance premiums - (23,237) Contract advance payment - (17,379) - Resident deposits and other 2,150 (1,453) Accrued interest (33) (30) Accrued vacation 804 4.145 Net cash (used) provided by operating activities (33.813) 204,592 Cash flow from investing activities: Capital expenditures (15,392) (52,432) Purchase of investment (39,041) (3,974) Net transfers to restricted cash and funded reserve 8.079 (2501) Net cash used by investing activities (46.354) (58.907) Cash flows from financing activities: Bank overdraft (33,790) 33,790 Repayment of long -term debt (4,283) (3,906) - Proceeds from long -tern debt - 21.747 Net cash (used) provided by financing activities (38.073) 51.631 Net (decrease) increase in cash • (118,240) 197,316 Cash at beginning of year 259551 62.235 Cash at end of year $ 141,311 $ 259,551 Supplemental cash flow information: Interest paid $ 38,412 $ 38.789 • See accompanying notes to the financial statements. 6 MENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 Background and Organization Mental Help Hawaii (Organization) is a nonprofit organization which was granted a Charter of Incorporation on June 7, 1973, for the purposes of providing social rehabilitation services through housing facilities and rehabilitation programs specially designed to meet the physical, social and psychological needs of persons recovering from severe mental or emotional disorders and assisting such persons in achieving their optimum level of self - maintenance in the community. The majority of the Organization's operating funds are provided by government sources and provider fees from Hawaii Medical Service Association's (HMSA) Community Care Services. Other sources of support and revenue are program service fees, contributions, and allocated shares of Aloha United Way and Hawaii Island United Way funds. The Organization's programs are: Transitional Housing - The Sierra House and Hale Lehua and the newest project, the Stabilizing Urgent Residential Facility (SURF) are community -based residences offering 24 -hour supervision and social rehabilitation services as an alternative to hospitalization. SURF. located in Kailua -Kona, opened in October 1998. The Transitional Residential Assistance Center (TRAC) consisting of four homes located on the grounds of the Hawaii State Hospital, served as re -entry and rehabilitation resources for Hawaii State Hospital patients prior to moving on to community living. This project was closed effective June.30. 1999, due to the reduction of Department of Health funding. Supportive Housing — Projects in this program include the Duplex, Housing Assistance Project, the Project for Assisted Living, and Hilo Hale. These residential programs provide affordable rental housing resources, on -site and on -call tenant staff support, and encouragement to sustain community living. Social Rehabilitation - The Clubhouse on Oahu provided day activity center services including educational, social, prevocational, and recreational activities to facilitate meaningful community participation through June 30, 1998, after which the project was closed due to the reduction of Department of Health funding. Respite - The Respite program offers temporary care and supervision to disabled persons to relieve family caretakers. Care Coordination - The Organization provides care coordination services on the Island of Hawaii for which HMSA pays on a case basis. 7 • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 Background and Organization, continued Safe Haven - Safe Haven is a multi - service program for persons who are mentally ill and homeless. The Organization leases a residential facility in downtown Honolulu for this program and manages the on -site residential placement and social rehabilitation services. Under a sub- contract arrangement with the Organization, Kalihi Palama Health Center provides outreach, case management, and on -site psychiatric and urgent medical care services. 1. Summary of Significant Accounting Policies Basis of Presentation The Organization reports information regarding its financial position and activities according to the following classes of net assets: Unrestricted net assets represent resources over which the Board of Directors has discretionary control. Temporarily restricted net assets result from contributions whose use is limited by donor stipulations that either expire with passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently restricted net assets are from contributions whose use is limited by donor stipulations that do not expire. The Organization has no permanently restricted net assets. Property and Equipment Land, buildings, furnishings and equipment are recorded at cost or fair market value at date of donation. Depreciation is calculated using the straight -line method based on the respective estimated useful lives, ranging from 3 to 7 years for furnishings. equipment. and vehicles, and 10 to 40 years for the buildings. Expenditures for maintenance, repairs and renewals of minor items are charged to earnings as incurred. Major renewals and improvements are capitalized. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in the statement of activities. 8 • • • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 1. Summary of Significant Accounting Policies, continued ' Property and equipment with a net depreciated value of $427,270 ($390,238 of The Duplex project's HUD assets and $37,032 of a vehicle) as of June 30, 1999, have been purchased with funds from prior year government contracts which stipulate that title to the assets remain with the government agency or department. Upon termination of the contract, the assets or proceeds from the sale of the assets revert to the government, unless otherwise agreed upon. Investments Investments are stated at market value. Unrealized gains and losses resulting from changes in market value between years for unsold investments, and all related income are reported in the statement of activities. Gains and investment income that are limited to specific uses by donor - imposed restrictions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Restricted and Unrestricted Support Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor - restricted support is reported as an increase in temporarily or permanently restricted net assets. depending on the nature of dip restriction. When the restricted purpose is accomplished. temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Functional Classification of Expenses In accordance with generally accepted accounting principles, expenses are categorized principally in terms of the Organization's individual program activities or functions. Use of Estimates Preparing financial statements according to generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported, the disclosure of contingent assets and liabilities, and the revenues and expenses reported during the stated period. Actual results could differ from management's estimates. 9 • • .. • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 1. Summary of Significant Accounting Policies, continued . ' Change in Presentation Certain amounts in the prior year financial statements have been reclassified for comparative purposes to conform with the current year financial statement presentation. 2. Property and Equipment Property and equipment by project as of June 30, 1999, was as follows: Bldg. & Furnish. Land Improv. & Equip. Vehicles Total Transitional Housing $ 556,705 $ 537,928 $ 43,238 $ 18,155 5 1,156,026 Supportive Housing 296,814 173,114 45,981 57,104 573,013 Social Rehabilitation - - 855 61,720 62,575 Care Coordination - - 1,135 - 1,135 Safe Haven - 92.473 24,544 - 117.017 Management and general - - 13.108 - 13.108 5 853.519 5 803,515 5 128.861 $ 136.979 S 1.922.874 Property and equipment by project as of June 30, 1998, was as follows: Bldg. & Furnish. Land Improv. & Equip. Vehicles Total Transitional Housing $ 556,705 $ 537,928 5 65,403 5 4.687 5 1.164,723 Supportive Housing 296,814 173,114 26,666 52.332 548.926 Social Rehabilitation - 6,500 15,160 73,720 95.380 Care Coordination - - 1,135 - 1.135 Safe Haven - 92,473 23,441 - 115,914 Management and general - - 7,359 - 7,359 $ 853,519 5 810,015 $ 139,164 $ 130,739 $ . • 10 • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 3. Mortgage Notes Payable The Duplex Project - A $450,000 direct loan was obtained on June 21, 1983, from the U.S. Department of Housing and Urban Development ( "HUD ") for the acquisition of two duplex buildings in Pearl City, Hawaii. The note is secured by the duplex buildings and land, and bears interest of 9.25% per annum and is payable in monthly principal and interest installments of $3,558 until maturity November 1, 2023. The outstanding principal balance at June 30, 1999 and 1998, was $412,917 and $417,200, respectively. Sierra House Project - A $426,516 loan from the City and County of Honolulu is for renovation of the Sierra House residence. The note is secured by the Sierra House buildings and land, and bears interest of 4% per annum. The twenty -year loan agreement allows the Organization to defer monthly payments of principal and interest until April 2001. Maturities of the mortgage notes are as follows: Year Ending June 30 Amount 2000 $ 4,697 2001 15,092 2002 21,623 2003 22.653 2004 23,750 Thereafter 751.618 $839.433 4. Temporarily Restricted Endowment A $10,000 charitable contribution was made in 1993, for the purpose of forming an endowment fund for the benefit of the Organization. The funds are held in a trust by Pacific Century Trust, as trustee, with the Hawaii Community Foundation (Foundation) as administrator of the trust agreement. With recommendations from the Organization's Board of Directors and approval of the Governors of the Foundation, the net income and principal of the fund may be used for the support of operations, programs or projects. The market value of the fund at June 30, 1999 and 1998, was $153,429 and $111,724, respectively. Net unrealized gains and interest earned on the investments are included as temporarily restricted support and revenue. The Board of Directors sets annual goals for increasing the endowment fund. 11 MENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 • 5. Board Designated Reserve The Board of Directors has designated $110,000 of unrestricted funds as a reserve for the development of future projects and contributions to the Organization's employee benefit plan. 6. Restrictions on Net Assets • Temporarily restricted net assets are released from donor restrictions primarily by incurring expenses that satisfy the restricted purposes. Net assets released from restriction were as follows: 1999 1998 Program start-up costs $166,869 $ - Consultants 10,027 - Furnishing and equipment - 3,578 Program supplies 931 - Endowment investment fees . 938 575 $178.765 $ 4.153 7. Lease Commitments • The Organization's administrative office space is rented on a month -to -month basis for $2,054 per month. The Organization leases the Safe Haven residential facility under an operating lease expiring in 2001. In addition to the monthly base rent, the Organization pays a prorata portion of operating expense and general excise tax. Minimum future rental payments as of June 30, 1999, under the Safe Haven non - cancelable operating lease is as follows: Year Ending June 30 Amount 2000 $144,996 2001 144.996 $289.992 12 • • NIENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 8. Tax Deferred Annuity Plan The Organization has a contributory tax deferred annuity plan (Plan) under the provisions of the Internal Revenue Code Section 403(b). The Plan covers all employees who are 21 years of age and over, with a minimum of one year of service as defined in the Plan. The employer's contribution to the Plan is determined annually by the Organization for the Plan's calendar year end. Employees may also make contributions through salary reduction deferrals. Contributions of $26,039 and $21,824 for the years ended June 30, 1999 and 1998, respectively, are included in payroll taxes and employee benefits in the accompanying statements of functional expenses. 9. Deferred Compensation Plan • On January 30, 1998, the Organization entered into a deferred compensation agreement with its Executive Director. The Organization contributes $800 per month for the purchase of an annuity. Providing continued employment under the terms of the plan, the Organization will transfer ownership of the annuity to the Executive Director. The value of the annuity at June 30, 1999, was $43,015. 10. Concentration of Credit Risk The Organization places its cash with financial institutions located in Honolulu, Hawaii. Cash balances at each institution are insured by the Federal Deposit Insurance Corporation (up to $100,000 per institution). At June 30, 1999, the uninsured bank balances totaled $90,007. The Organization has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. 11. Economic Dependency/Financial Support The Organization received approximately 26% and 30% of its 1999 support and revenue from federal and state /county government contracts, respectively. A significant reduction in the level of this support, without an increase in other sources of support and revenue, could have an adverse effect on the Organization's programs and activities. The government contracts require the fulfillment of certain conditions as set forth in the contractual agreements, noncompliance of which could result in the return of funds to the government. 13 • • P + '-.♦ NIENTAL HELP HAWAII Notes to Financial Statements June 30, 1999 and 1998 12. Related Party Transactions The Organization received approval of HUD Section 811 loan mortgage funds to acquire additional residences for placement of persons recovering from mental illness. As required by HUD, sole source borrower corporations, Sierra House, Inc. and the Lighthouse, Inc., (incorporated in 1989), and Oahu House, Inc., and Hilo House, Inc., (incorporated in 1994), received their tax - exempt status under the Internal Revenue Code section 501(c)(3). Several of the Organization's members of the Board of Directors are also Board members of the corporations. During the years ended June 30, 1999 and 1998, Mental Help Hawaii advanced $73,701 and $74,521, respectively, and was reimbursed for $79,361 and $80,201 for operations of the separate corporations. The unreimbursed costs of $22,173 and $27,833 at June 30, 1999 and 1998 are recorded as program development receivables in the financial statements and are to be reimbursed. 13. Reclassification The balance of restricted net assets and temporarily restricted net assets as of July 1. 1997, has been restated by $61,376 from amounts previously reported to reflect the release of temporarily restricted assets that were expended in the 1997 fiscal year. 14. Subcontract Service Fees Subcontract service fees represent government funds awarded to the Organization which are reimbursed to Kalihi Palama Health Center for the provision of outreach and case management services, on -site urgent medical care, and psychiatric supervision of Safe Haven clients. In addition, funds were awarded to the Organization by the City of County of Honolulu to explore alternative sites for Safe Haven operations. The Organization used consultants to achieve this purpose. Funds were also awarded to the Organization to develop plans for the use of federal property for transitional housing for homeless veterans. The Organization used consultants to achieve this purpose. 15. Income Taxes As a non - profit organization qualifying under the Internal Revenue Code Section 501(c)(3), the Organization is exempt from Federal and Hawaii income taxes and has been determined not to be a private foundation within the meaning of the Internal Revenue Code Section 509(a). 14 • • MENTAL HELP HAWAII Financial Statements June 30, 1998 • • Wikoff, Combs & Co. Independent Auditors' Report Board of Directors • Mental Help Hawaii We have audited the accompanying statement of financial position of Mental Help Hawaii (a nonprofit organization) as of June 30, 1998, and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States and the provisions of Office of Management and Budget Circular A -133, "Audits of Institutions of Higher Education and Other Nonprofit Institutions ". 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 Mental Help Hawaii as of June 30, 1998, and the changes in its net assets and its cash flows for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated September 11, 1998, on our consideration of Mental Help Hawaii's internal control structure and a report dated September 11, 1998, on its compliance with laws and regulations. OVg/ &I (X/. eld Honolulu. Hawaii September 11. 1998 900 Fort Street Mall, Suite 1040, Honolulu, HI 95813 -3711, Tel (8081528-7322. Fax (808) 536 -0364 94 -249 Leonui St., Waipahu, HI 96797 -2301, Tel (808) 671 -2608 • • ' f . MENTAL HELP HAWAII Statement of Financial Position June 30, 1998 ASSETS Current assets: Cash in bank, including $249,110 in interest bearing accounts $ 259,551 Receivables: Government agencies $ 263,049 Residents and other 66,956 Program development (Note 4) 18,188 348,193 Prepaid expenses 36,687 Total current assets 644,431 • Property and equipment (Notes 3 and 5): Land 853,519 Buildings and improvements 810,015 Furnishings and equipment 139,164 Vehicles 130,739 1,933,437 Less accumulated depreciation and amortization 327,471 1,605,966 Other assets: Investments held in trust (Note 2) 1 1 1,724 Restricted cash and funded reserves 19,465 Investment (Note 10) 3,974 Deposits and other 20,892 156,055 Total assets $ 2,406,452 See accompanying notes to financial statements. 2 a • • • MENTAL HELP HAWAII Statement of Financial Position June 30, 1998 LIABILITIES Current liabilities: Bank overdraft $ 33,790 Mortgage notes payable - current portion (Note 5) 4,283 Accounts payable 84,401 Financed insurance premiums 2,768 Resident deposits and other 12,234 Accrued vacation 35,820 • Total current liabilities 173,296 • Long term liabilities: Mortgage notes payable, net of current portion (Note 5) $ 839,433 Deferred compensation plan (Note 10) 3,900 843,333 Total liabilities 1,016,629 Commitments (Note 6) NET ASSETS Unrestricted: • Undesignated 196,447 Board designated (Note 7) 110,000 Invested in property and equipment 762,250 1,068,697 Temporarily restricted: Endowment (Note 2) 1 1 1,724 Restricted for designated purposes 209,402 321,126 Total net assets 1,389,823 Total liabilities and net assets • $ 2,406,452 See accompanying notes to the financial statements. 3 • .. . MENTAL HELP HAWAII Statement of Activities and Changes in Net Assets For the Year Ended June 30, 1998 Temporarily Unrestricted Restricted Total Support and revenue: Government appropriations and assistance $ 2,172,281 $ - $ 2.172.281 Provider fees 470,392 - 470.392 Program service fees 280,850 - 280.850 Aloha United Way 61,857 - 61.857 • Hawaii Island United Way 22,014 - 22.014 Contributions 11,130 208.702 219,832 Net unrealized investment gains (26) 19,667 19,641 Interest 7,842 658 8.500 Net assets released from restrictions (Note 8) 4,153 (4153) - Transfer of funds to HUD replacement reserve (2.497) 2.497 - Total support and revenue 3.027.996 • 227.371 3.255.367 Expenses: Program services: Transitional housing 590,72.6 - 590.726 Supportive housing 472,040 - 472.040 Social rehabilitation 249,998 - • 249 Respite 112,516 - 112.516 Care coordination 154.190 - 154,190 Safe Haven 1.432.789 - 1 Total program services . 3,012,259 - 3,012,259 Support services: Management and general 153.718 - • 153.718 Total expenses 3.165,977 - 3.165.977 Change in net asscts (137981) 227.371 89.390 Net assets at beginning of year, as previously reported 1,145,302 155.131 1.300.433 Reclassification (Note 14) 61,376 (61.376) - As restated 1.206.678 93.755 1.300.433 Net assets at end of year $ 1.068,697 $ 321.126 $ 1.389.823 See accompanying notes to financial statements. 4 • • ;- 0 a r- Mx r. z n v0 r 7 r K, n_ 0 I ry I`n x x rr, -- _ . ^ . ". 4 VI M N .O S co T Y. 7 "n ' n N- N C-. x N 7 - - L_ r, 4A A vI v L x O 0 7 n . 7 O N .. . .. M. Y x _$ P D N 'O T - Ir N - C c .c c oc z ' - , E4 _ _ x . G ri r, r, n E C: x 0 N - - - C. 0 s 7 - i n M FM -it c7 - O Ca O 7 - in r x 1'- N - . - - i ` O a .. n- N r- N N x Y 0--r - c N ' _1) N T r- C C a N r r x r' In N K. 'n - - N K. -- j-- T N - N V - _ N - L - r. 4, ■ _ 'T 7 0' T NO O N m r N x ON N 'K % - N x - N x' O n- x N x N y - 5.3 , 0 V _ r cc ' N r-: - .. - T N N ./ n `! Y tA CAI U - ^ N 'n r N r1 r N 0. - - c _ - , r o' - o ri r Y x U , - o 7 O N N r. N- N n ? - ^ - DC J N - N c - J U 4 - ... M - / li cc C 0 T or r T 1_ Y N '. IN - x n -- 1 n-, - r 1 x Y- C. - E. O N - N - - - O _ = ir, - N - U O Y - CA to .q '7 - _ x .n - ' r Pc x - ' n r r1 V 0 - Pn' N T- T - .7 - - 0) U U_ 'I. sc. U J ch r CI '' T x n i. - _ - rl n . 0 C - - 7 - 00 z Y N x =- in x "i = .d ? -r n ` x o r - 7 ._ _ ^ n ^ M N r .1: _ N a. N ry v . `- - r G - Y T. WI _ 4, _ - N r- S _ T - r In - -7 u N - T - rl C. - r M � - n - - r1 x x -r - _ W rl Nn r.1 - rl r' -r In CA t v JI - z v _ s - z . J i 6 a i i C G - - 2. j z G 7 C c C J j 7 7 ;.- G O L._, _12, 4 L =2, G- - • • • MENTAL HELP HAWAII • Statement of Cash Flows For the Year Ended June 30, 1998 Cash flows from operating activities: Change in net assets $ 89,390 Adjustments to reconcile change in net assets to net cash used by operating activities: Depreciation and amortization $ 66,235 (Increase) decrease in assets: Receivables 45,573 Prepaid expenses 35,435 Cash held in trust (34,937) Deposits and other 2,976 Increase (decrease) in liabilities: Accounts payable 38,967 Financed insurance premiums (23,237) Contract advance payment (17,379) Resident deposits and other (1,483) Deferred compensation plan (1,100) Accrued vacation 4,148 115,198 Net cash provided by operating activities 204,588 Cash flow from investing activities: Capital expenditures (52,432) Purchase of investment (3,974) Net transfers to restricted cash and funded reserve (2,497) (58,903) Cash flows from financing activities: Bank overdraft 33,790 Repayment of long -term debt (3,906) Proceeds from long -term debt 21,747 51,631 Net increase in cash 197,316 Cash at beginning of year 62,235 Cash at end of year $ 259,551 Supplemental cash flow a formatiomr. Interest paid $ 38,759 See accompanying notes to the financial statements. 6 • ry MENTAL HELP HAWAII Notes to Financial Statements June 30, 1998 Background and Organization Mental Help Hawaii (Organization) is a nonprofit organization which was granted a Charter of .Incorporation on June 7, 1973, for the purposes of providing social rehabilitation services through housing facilities and rehabilitation programs specially designed to meet the physical, social and psychological needs of persons recovering from severe mental or emotional disorders and assisting such persons in achieving their optimum level of self - maintenance in the community. The majority of the Organization's operating funds are provided by government sources and provider fees from Hawaii Medical Service Association's (HMSA) Community Care Services. Other sources of support and revenue are program service fees, contributions, and allocated shares of Aloha United Way and Hawaii Island United Way funds. The Organization's programs are: Transitional Housing - The Sierra House and Hale Lehua are community -based residences offering 24 hour supervision and social rehabilitation services as an alternative to hospitalization. The Transitional Residential Assistance Center (TRAC) consists of four homes located on the grounds of the Hawaii State Hospital, that serve as re -entry and rehabilitation resources for Hawaii State Hospital patients prior to moving on to community living. Supportive Housing - The Duplex, Housing Assistance Project, the 'Project for Assisted Living, and Hilo Hale are residential programs that provide rental housing resources, tenant staff support, and encouragement to sustain community living. Social Rehabilitation - The Clubhouse on Oahu provided day activity center services including educational. social, prevocational, and recreational activities to facilitate meaningful community participation through June 30, 1998, after which the project was closed because the Department of l- lealth funding was no longer available for this service. Respite Service - The Respite program offers temporary care and supervision to disabled persons to relieve family caretakers. Care Coordination - The Organization provides care coordination services on the Island of Hawaii for which HMSA pays on a case basis. Safe Haven - Safe Haven is a multi- service program for persons who are mentally ill and homeless. The Organization leases a residential facility in downtown Honolulu for this program and manages the on -site residential placement and social rehabilitation services. 7 MENTAL HELP HAWAII Notes to Financial Statements June 30, 1998 Background and Organization, continued Under a sub - contract arrangement with Mental Help Hawaii, Kalihi Palama Health Center provides outreach, case management, and on -site psychiatric and urgent medical care services. 1. Summary of Significant Accounting Policies Basis of Presentation The Organization reports information regarding its financial position and activities according to the following classes of net assets: Unrestricted net assets represent resources over which the Board of Directors has discretionary control. Temporarily restricted net assets result from contributions whose use is limited by donor stipulations that either expire with passage of time or can be fulfilled and removed by actions of the Organization pursuant to those stipulations. Permanently restricted net assets are from contributions whose use is limited by donor stipulations that do not expire. • Property and Equipment Land, buildings, furnishings and equipment are recorded at cost or fair market value at date of donation. Depreciation is calculated using the straight -line method based on the respective estimated useful lives, ranging from 3 to 7 years for furnishings, equipment, and vehicles, and 10 to 40 years for the buildings. Expenditures for maintenance, repairs and renewals of minor items are charged to earnings as incurred. Major renewals and improvements are capitalized. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in the statement of activities. Property and equipment with a net depreciated value of $444.632 ($395.600 of The Duplex project's HUD assets and $49,032 of a vehicle) as of June 30, 1998, have been purchased with funds from prior year government contracts which stipulate that title to the assets remain with the government agency or department. Upon termination of the contract, the assets or proceeds from the sale of the assets revert to the government. unless otherwise agreed upon. 8 t • • MENTAL HELP HAWAII Ndtes to Financial Statements June 30, 1 998 1. Summary of Significant Accounting Policies, continued Investments Investments are stated at market value. Unrealized gains and losses resulting from changes in market value between years for unsold investments, and all related income are reported in the statement of activities. Gains and investment income that are limited to specific uses by donor- imposed restrictions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Allowance for Doubtful Accounts The Organization uses the specific write -off method for recognizing uncollectible receivables. As of June 30, 1998, the receivable balances are considered collectible by management and, therefore, no allowance has been provided. The effect of using the direct write -off method approximates that of the allowance method. Restricted and Unrestricted Support Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor - restricted support is reported as an increase in temporarily or permanently restricted net assets. depending on the nature of the restriction. When the restricted purpose is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Donated Property and Equipment Donations of property- and equipment are recorded as support at their estimated fair value at the date of donation. Such donations are reported as unrestricted support unless the donor has restricted the donated asset for a specific purpose. Assets donated with explicit restrictions regarding their use and cash contributions that must be used to acquire property and equipment are reported as temporarily restricted support. The Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service unless donors stipulate how long the donated assets must be maintained. The Organization reclassifies temporarily restricted net assets to unrestricted net assets to recognize the release of restrictions on these assets. 9 • • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1998 1. Summary of Significant Accounting Policies, continued Functional Classification of Expenses In accordance with generally accepted accounting principles, expenses are categorized principally in terms of the Organization's individual program activities or functions. Use of Estimates Preparing financial statements according to generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported, the disclosure of contingent assets and liabilities, and the revenues and expenses reported during the stated period. Actual results could differ from management's estimates. 2. Temporarily Restricted Endowment A $10,000 charitable contribution was made in 1993, for the purpose of forming an endowment fund for the benefit of the Organization. The funds are held in a trust by Pacific Century Trust, as trustee, with the Hawaii Community Foundation (Foundation) as administrator of the trust agreement. The net income and the principal of the fund may be used with recommendations from the Organization's Board of Directors and approval of the Governors of the Foundation for the support of operations, programs or projects. The goal of $25.000 was exceeded during 1995. As of June 30, 1998, the • fund's market value was $111,724. Net unrealized gains on the investments amounted to $19,667 for the year ended June 30, • 1998. The Board of Directors is setting annual goals for increasing the endowment fund. • 3. Property and Equipment Property and equipment by project as of June 30, 1998, were as follows: • Bldg. & Furnish. Land Improv. & Equip. Vehicles Total Transitional Housing $ 556,705 $ 537,928 $ 65.403 $ 4.687 S L164,723 Supportive Housing 296,814 173.114 26,666 52,332 548.926 Social Rehabilitation 6,500 15,160 73,720 95.380 Care Coordination - - 1,135 - 1,135 Safe Haven - 92,473 23,441 - 115.914 Management and general - - 7,359 - 7,359 $ 853,519 $ 810,015 $ 139,164 $ 130,739 $ 1.933.437 10 • MENTAL HELP HAWAII Notes,to Financial Statements June 30, 1998 4. Related Party Transactions The Organization received approval of HUD Section 811 loan mortgage funds to acquire additional residences for placement of persons recovering from mental illness. As required by HUD, sole source borrower corporations. Sierra House, Inc. and the Lighthouse, Inc., (incorporated in 1989), and Oahu House, Inc., and Hilo House, Inc., (incorporated in 1994) received their tax exempt status under the Internal Revenue Code section 501(c)(3). Several of the Organization's members of the Board of Directors are also Board members of the corporations. During the year ended June 30, 1998, Mental Help Hawaii advanced a total of $8,974 for operations of the separate corporations. The unreimbursed costs of $18,188 at June 30. 1998, are recorded as program development receivables in the financial statements and are to be reimbursed. 5. Mortgage Notes Payable The Duplex Project - A $450,000 direct loan commitment was obtained on June 21, 1983, from the U.S. Department of Housing and Urban Development ( "HUD ") by the acquisition of two duplex buildings in Pearl City, Hawaii. The note is secured by the duplex buildings and land, bears interest of 9.25% per annum and is payable in monthly principal and interest installments of $3,558 until maturity November 1. 2023. Sierra House Project - The Organization received a $431,000 loan commitment from the City and County of Honolulu to renovate the Sierra House residence. The twenty year. 3% loan agreement allows the Organization to defer payment of principal and interest for three years from the date of the Certificate of Occupancy. As of June 30. 1998. the Organization had drawn $426,516 on the loan. Completion of the renovations is expected to occur in the 1999 fiscal year. Maturities of the mortgage notes are as follows: Year Ending June 30 Amount 1999 $ 4.283 2000 4,697 2001 5.150 2002 23.499 2003 22,398 Thereafter 783.689 $843.716 11 • • • Y .. MENTAL HELP HAWAII Notes to Financial Statements June 30, 1998 6. Commitments The administrative office space is rented on a month -to -month basis for the amount of $2,054 per month. The Organization leases the Safe Haven and two Hale Lehua residential facilities under operating leases expiring in 1999. In addition to the monthly base rent, the Organization pays a prorata portion of operating expense and general excise tax. Minimum future rental payments as of June 30, 1998, under the non - cancelable operating leases are as follows: Year Ending June30 Amount 1999 $108,255 2000 3.440 $11 1.695 7. Board Designated Reserve The Board of Directors has designated a total of $.110,000 of unrestricted funds as a reserve for the development of future projects and contributions to the Organization's employee benefit plan. 8. Restrictions on Net Assets Temporarily restricted net assets are released from donor restrictions primarily by incurring expenses that satisfy the restricted purposes. Net assets released from restriction during 1998 were for the following: Furnishings and equipment $3.578 Endowment investment fees 575 $4.153 9. Tax Deferred Annuity Plan Effective January 1. 1992, the Organization adopted a contributory tax deferred annuity plan (Plan) under the provisions of the Internal Revenue Code Section 403(b). The Plan covers all employees who are 21 years of age and over, with a minimum of one year of service as defined in the Plan. 12 • • • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1998 9. Tax Deferred Annuity Plan, continued The employer's contribution to the Plan is determined annually by the Organization for . the Plan's 'calendar year end. Employees may also make contributions through salary reduction deferrals. The Organization contributed $21.824 for the plan year ended December 31, 1997. 10. Deferred Compensation Plan On January •30, 1998, the Organization entered into a deferred compensation agreement with its Executive Director. The Organization contributes $800 per month for the purchase of an annuity. Providing continued employment .until age 65, thereafter. the Organization will transfer ownership of the annuity to the Executive Director. Until the Organization makes the transfer, the annuity shall be an asset of the Organization subject to the claims of unsecured creditors of the Organization. The present value of the Organization's obligation under the agreement is estimated at $3.900, assuming a 10% present value factor. 11. Income Taxes As a non -profit organization qualifying under the Internal Revenue Code Section 50l(c)(3), the Organization is exempt from Federal and Hawaii income taxes and has been determined not to be a private foundation within the meaning of the Internal Revenue Code Section 509(a). 12. Economic Dependency /Financial Support The Organization received approximately 51% and 16% of its 1998 support and revenue from federal and state /county government grants, respectively. A significant reduction in the level of this support, without an increase in other sources of support and revenue. could have an adverse effect on the Organization's programs and activities. The government grants require the fulfillment of certain conditions as set forth in the contractual agreements. noncompliance of which could result in the return of funds to the government. 13. Subcontract Service Fees Subcontract service fees represent government funds awarded to Mental Help Hawaii which are reimbursed to Kalihi Palama Health Center for the provision of outreach and case management services, on -site urgent medical care, and psychiatric supervision of Safe Haven clients. 13 • • • MENTAL HELP HAWAII Notes to Financial Statements June 30, 1998 14. Reclassification The balance of restricted net assets and temporarily restricted net assets as of July 1, 1997, has been restated by $61,376 from amounts previously' reported to reflect the release of temporarily restricted assets that were expended in the 1997 fiscal year. 15. Concentration of Credit Risk The Organization places its cash and cash equivalents with financial institutions located in Honolulu, Hawaii. Cash balances at each institution are insured by the Federal Deposit Insurance Corporation (up to $100,000 per account). At June 30, 1998. $258,247 was not insured. The Organization has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash. 14 4 • • . MENTAL HELP HAWAII Single Audit Reports For the Year Ended June 30, 1999 • • • MENTAL HELP HAWAII Single Audit Reports June 30, 1999 Page • Report on Compliance and on internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 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 5 Schedule of Expenditures of Federal, State, and County Awards 7 • • ;lO Wikoff, Combs & Co. (ruiii ire rotas ArruuNiaNrti • • REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS • Board of Directors Mental Help Hawaii We have audited the financial statements of Mental Help Hawaii as of and for the year ended June 30, 1999, and have issued our report thereon dated September 17, 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 Mental Help Hawaii's financial statements are free of material misstatements, 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 Stiuufards. • Internal Control Over Financial Reporting En planning and performing our audit, we considered Mental Help Hawaii'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 notes[ 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 that we have reported to management of Mental Help Hawaii in a separate letter dated September 17, 1999. • 'WO Furl Street rilnll, Suite 10 -10, Honolulu, Ell 96811 -3711, Tel 1808) 528 -7332, Fax (808 536 -0364 VA'.,il.c(i A'illie). 400 l- ualani SI., Suite I95A, 1 - 1110, HI 967 Tel /Fax 1808) 933 -193.1 • • . . This report is intended for the information of the audit committee, management, federal awarding, agencies and pass - through entities. However, this report is a matter of public record and its distribution is not limited. • ?kale de in ;Cy trl I lonolu.lu. I Iawai1 September 17, 1999 • • • • 2 Wikoff, Combs & Co. • (WHIN) ILP I'U f111C Am OCN I AN ti • REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 • • Board of Directors Mental Help •Hawaii Compliance We have audited the compliance of Mental Help Hawaii 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 June 30, 1999. Mental Help Hawaii's major federal programs are identified in the summary of auditors' 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 Mental Help Hawaii's management. Our responsibility is to express an opinion on Mental Help Hawaii'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 OivIB 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 Mental Help Hawaii's compliance with those requirements and performing such other procedures as Nye 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 Mental Help Hawaii's compliance with those requirements. As described in item 99 -1 in the accompanying schedule of findings and questioned costs, Mental Help Hawaii did not comply with the requirements regarding eligibility that is applicable to its Safe Haven program. Compliance with such requirements is necessary, in our opinion, for Mental Help Hawaii to comply with requirements applicable to that program. 3 900 HO Sircd Mall, Suite 1040, Honolulu, 1 - 11 96013-T711, Tel (8081 523- 7322, Fac 1 536 -016 -1 waikea A'illa>, 400 Hualani Si., Suite 195A, Hilo, 1 - 11 96720, lel /Fax 1808 933 -1'I)2 • • , In our opinion, except for the noncompliance described in the preceding paragraph, Mental Help Hawaii 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 June 30. 1999. Internal Control Over Compliance The management of Mental Help Hawaii 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 Mental Help Hawaii'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 wealcnesses. 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. Schedule of Expenditures of Federal. State and County Awards We have audited the basic financial statements of Mental Help Hawaii as of and for the year ended June 30, 1999, and have issued our report thereon dated September 17, 1999. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal, State and county awards is presented for purposes of additional analysis as required by OMB Circular A -133 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 stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended for the information of the audit committee. management and federal awarding agencies and pass - through entities. However, this report is a matter of public record and its distribution is not limited. • • Cri-da- 5 do 01A Honolulu. Hawaii September 17, 1999 • 4 • MENTAL HELP HAWAII • Schedule of Findings and Questioned Costs Year Ended June 30, 1999 :A. Summary of Audit Results • 1. The auditors' report expresses an unqualified opinion on the financial • statements of Mental Help Hawaii. • 2. No material weaknesses were identified during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements of Mental Help Hawaii were disclosed during the audit. 4. No material weaknesses were identified during the audit of the major federal award program. - 5. The auditors' report on compliance for the major federal award program for Mental Help I- Iawaii expresses a qualified opinion. 6. There was an audit finding relative to the major federal award program for Mental Help Hawaii. • 7. The program tested as a major program included: U.S. Department of 1- lousing and Urban Development. Supportive Housing Program (CFDA No. 14.235). 8. The threshold for distinguishing Types A and B programs was $300,000. • 9. The auditee did not qualify as a low -risk auditee as defined in OMB Circular A -133, Section 5I0(a). B. Findings - Financial Statements Audit None C. Findings and Questioned Costs - Major Federal Award Programs Audit • Finding No. 99 -1 • 5 • • ' MENTAL HELP HAWAII • Schedule of Findings June 30, 1999 FINDINGS Reference Number 99 -1 Client Income Verification - One of the nine Safe 1 -Iaven client files tested did not include documentation of the income verification procedures performed to verify that tenants meet the criteria for residing in the Safe Haven facilities. 6 • • ti .G O c 0 N 0 0' -t 7 O cc O O O a • - ? N in N •Y K O x 0 x O O O 'J in, C x K ^ . = O - .T - - N O G . T N O N •t - N ,.� x N Y^ x V V - 1'1 In N .... 'y O c". O C. x 1•'. M. O in O in O O 0 b O 't O Y O O 0 x O- h N O n o n O O O M In rn r N O 0 O V O r 0 CC •- 'Y rl O ^ N N N x o N V O a 0' ^ N V t` rl N N to N N O ri) cc O x O O 0 co % x O O O W, x • s - r 4 i . . i O v '' x n ^ N • C N > N 0. 3 w < 9 O in O in x tf. rr. 0 -t O n <- v r r- o n O 1 ` t o i • r N o 0 •r. - •n In N N ' re N J �' t-. N N 'Y N '_ O f/i N 0 ▪ J ^-J 7 ? O a O rl O 0 0 0 ry J �� N " N S < b in O O • • • • ' •n j 9 % N O O O O _ 5 r _ O rl - r x N 1 O, ▪ 7 i ri 't - C V) CA 7... V y - - - .� - r - L p x rl. !`1 L _ 7 _ a r z - " ' r L = , ic ¢ — G r :U C1 5-.4) z - . - 1 . : 1 -7 _ f /. =- . ue c x - < s < < < < • / • % - ', L; '1' Y K Z Z Z Z .Z Z -J z - - - 3 'J f 7 JI L C = i L 1 - - 0 - T _ j - _ _ _ . S p -E ., y v ^ - -U L 'J C _ i D 1 0 73 r. .. _ L H F ..= == - ul _ _ F-3 y -4 C t - - - v v o . O 7 so v 3 - y _•y v - n _ 9 7 2 _v. 2 z 7 v ' 1 r :3 :3 C ^ 7 _ 5 • C C C v 3 � I ° 'v VI C C o - G T. c L : C J c L - ` Z . • MENTAL IIELP HAWAII Single Audit Reports For the Year Ended June 30, 1998 • MEN'I'AL IIELI' HAWAII Single Audit Reports June 30, 1998 Page Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMI3 Circular A -133 Schedule of Findings and Questioned Costs 5 6 Schedule of Prior Audit Findings Schedule of Expenditures of Federal, State and County Awards 7 • • • • I<orf, Combs & CO. REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT • OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WI'I'I1 GOVERNMENT AUDJTJNG STANDARDS • Board of Directors Mental I lclp 1 facvai1 We have audited the financial statements of Mental I -lclp I lawaii (a nonprofit organization) as of and for the year ended June 30, 1998, and have issued our report thereon dated September I I, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Governulen! Auditing SYaudurdr, issued by the Comptroller General of the United States. Compliance • As part of obtaining reasonable assurance about whether Mental Help Hawaii's financial statements are free of material misstatements, we performed tests of its compliance . with certain provisions of laces, regulations. contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. I lowever, providing an opinion on compliance with those provisions was 1101 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 am required to be reported under Government Auditing udiihii. Sto n/ardv. Internal Control Over Financial Reporting In planning and perlbrming our audit, we considered Mental Help Hawaii'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 011 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 he 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 0 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. 91111 toll Sheet MA, Suite 1010, Honolulu, 1 - 11 968 13-371 I, Tel 180815111- 7311, •.1y 1811/415 16•1 o f -' 19 l romp SI., Willies u, 1.11'16797 -80 Tel 1RN1) 671-1608 • This report is intended for the information of the audit co mittce, management, federal awarding agencies and pass- through entities. However, this report is a matter of public record and its distribution is not limited: ?kali effn,4 e,a4, • Honolulu, Hawaii September 11, 1998 • • • • • • • • • 2 i Combs & Co. • REPORT ON COf II'LIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL • 'OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 • Board of Directors Mental llclp Hawaii Compliance We have audited the compliance of Mental I-Ielp Hawaii (a nonprofit organization) with the types of compliance requirements described in the U.S. Office of Management and Budget (O\1/)) Circular 1 -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 1998. Mental I•Iclp Hawaii's major federal programs are identified in the summary of auditors' 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 Mental Ilclp Hawaii's management. Our responsibility is to express an opinion on Mental I•Iclp Hawaii'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 Slates; and ()NIB 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 Mental Help Hawaii'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 Mental Help Hawaii's compliance with those requirements. In our opinion Mental I lelp I lawaii 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 June 30, 1998. 3 • '11)1) 1 nil Slmrl Mall S,n 116111, 111111011.111I, 1-11 9611 1 1 -17 11, Tel 1808) 5211.7122, lily 171011) i 16.1)16-1 '1-1J19 teonai 51., W,lip,thu, 1 96797- 2101, Tel 1801/1 671 -26(18 • • • Internal Control Over Compliance The management of Mental Help Ilawaii is responsible for establishing and maintaining r &Tcoivc internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered Mental Help Hawaii'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 Ibr the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -I33. • 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. Schedule of Expenditures of Federal. State and Countv Awards We have audited the basic financial statements of Mental Help Hawaii as of and for the year ended .tune 30, 1998, and have issued our report thereon dated September I I, 1998. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal, State and County awards is presented for purposes of additional analysis as required by OMB Circular A -I 33 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 stated, in all material respects, in relation to the basic financial • statements taken as a whole. This report is intended for the information of the audit committee, management, federal awarding agencies and pass - through entities. However, this report is a matter of public record and its distribution is not limited. • Ykill Stit 6., deb Honolulu. Hawaii September I I. 1998 4 • • " ,• MENTAL HELP HAWAII • Schedule of Findings and Questioned Costs Year Ended June 30, 1998 • _. A. Summary of Audit Results 1. The auditors' report expresses an unqualified opinion on the financial • statements of Mental Help Hawaii. Z. No reportable conditions were identified during the audit of the financial statements. 3. No instances of noncompliance material to the financial statements of Mensal l lelp Hawaii were disclosed during the audit. 4, No reportable conditions were identified during the audit of the major federal award program. 5. The auditors' report on compliance for the major federal award program for Mental llclp Hawaii expresses an unqualified opinion. 6. There were no audit findings relative to the major federal award program fix Mental I Ielp 1lawaii. • 7. The programs tested as major programs included: U.S. Department of !lousing and Urban Development Supportive !lousing Program CTDA No. 14.235 • 8. The threshold for distinguishing Types A and B programs was $300.000. 9. ;victual Help I lawaii was determined not to be a low -risk auditec. 13. Findings - Financial Statements Audit • None C. Findings and Questioned Costs - Major Federal Award Programs Audit Prior Audit Findings 97 -1 to 97 -4 5 • • • MENTAI, IIEI,I' IIn�Vnll Schedule of Prior Audit Findings • June 30, 1998 • Reference Number 97 -1 Procurement Policies - The procurement policies the Organization follows are in accordance with the standards set forth in 0M13 Circular A -110, except that written documentation is required by ONIB A -I 10. Resolution: The Organization has adopted a written procurement policy. 97 -2 Subrecipicnt Notification - The OMB Circular A-133 Compliance Supplenient requires subrccipicnts be informed of the federal award information so the subrccipicnt is aware of the -federal requirements related to the specific awarding agency. The Organization did not disclose the CFDA (Catalog of Federal Domestic Assistance) number to its subrccipicnt of the Supportive I lousing Project (Sale haven). Resolution: The subrccipicnt has been informed of the CFDA number. 97 -3 Cost Allocation - The OMl3 Circular A -122 "Cost Principles for Nonprofit Organizations." requires costs that are not identifiable to a specific program or activity, "indirect costs ", be allocated based on a cost allocation plan which documents the methods used to allocate costs. While a considerable effort is made to estimate time expended on programs by administrative personnel, there is limited documentation of the actual basis for the development of the allocation rates. Resolution: The Organization has adopted a written cost allocation schedule. 97 -4 Client Income Verification - Two of the eight Safe Haven client files tested did not include documentation of the income verification procedures performed to verify that tenants meet the criteria for residing in the Safe Ilavcn facilities. Resolution: The Organization has documented client income verification for Sale Haven. • 6 • • M L :. , _ _ - 'O _ ° = d t 0 0 S _ •n v' - N _ a V N. h I K ti T _ fl rl v' r- ^ P •V rl X ^ • -- fl 'I - P V -t ✓ — .. N K n 31 NO J V tI _.. N 9. N . E 1 r = v. r- -;". r r I` 7. N ' ' . • • L. •.. v T • r1 I_ fI . r 1 v r• _ K N - N 4. - rl I r rl fl r N N = E 2 .- J = — i • a o n J = - - E a o. a' a m = - ? _ V' 1 )l I _ J Z. - - E - = C • G _ � j r- ... Y ] i f f - c... _ __ t .. = C • .5 Ti 'T.' C - j 2 2 2 2 E 7 v u .1 _ .E ;L. Z 71 L 4 t 4 'd . _ ' > E _ v ° = 11 u n c o - ' 4 - E - c 7 I� - -. _ c ;' - SS 2S _ s s •s% E -t -- B o '•-• 0 9 '. i S 7, . C n [ 1— O E y L". F 6 1 p a ~ 2 ' , l 1 .. . V "!. Q 0 0 c; J V f FOrm 2758 Application for Extension of Time • (Rev. May Ce Excise, Income, Information, and O r Returns OMB No. 1545 -0148 Department of the Treasury ► File a separate application for each return. Intemtl Revenue Service _ Name Employer idenollcaeon number Please type or MENTAL HELP HAWAII INC. . /� a a 0154505 print. File the i� Number, street (or P.O. box no. if mail is not delivered to street address) V original and one ) vi copy by the due date for tiling 1122 11TH AVENUE your return. • • • City. town, or post office, state, and ZIP code. For a foreign address, see instructions • HONOLULU, HI 96816 Note: Corporate income tax return filers must use Form 7004 to request an extension of time to file. Part ershi Sam trusts must use Form 8736 to request an extension of time to file Form 1065. 1066, or 1041. �' � 1;Q M83 & CO 1 I request an extension of time until 05/15 , , to file (check only o • . CPAs I 'Form 706-GS (0) 1 1 Form 990 -T (401(a) or 408(a) trust) 1 1 Form 1120 -NO (4951 taxes) Mil Form 8612 FT Form 706 -GS (T) 1 1 Form 990 -T (trust other than above) 1 I Form 3520 -A n Form 8613 X 1 Farm 990 or 990 -EZ Q Form 1041 (estate) 1 1 Form 4720 I 1 Form 8725 I f Form 990 -13L I 1 Form 1041 -A I 1 Form 5227 1 1 Form 8804 1 Form 990 -PF 1 1 Form 1042 0 Form 6069 I 1 Form 8831 If the organization does not have an office or place of business in the United States, check this box 10,1 I 2a For calendar year 19 ,or other tax year beginning 07/01/1997 and ending 06/30/1998 b If this tax year is for less than 12 months, check reason: 1 I Initial return I 1 Final return 1 1 Change in accounting period 3 Has an extension - of time been previously granted for this tax year? 1 X I Yes 1 I No 4 State in detail why you need the extension • ADDITIONAL TIME IS REQUIRED TO GATHER ALL OF THE INFORMATION NECESSARY TO PROPERLY PREPARE A COMPLETE AND ACCURATE RETURN. 5a If this form is for Form 706- GS(D), 706- GS(T), 990-BL. 990 -PF, 990 -T, 1041 (estate), 1042, 1120 -ND, 4720, 6069,8612,8613,8725,8804.0(8831, enter the tentative tax, less any nonrefundable credits. $ b If this form i5 for Form 990 -PF, 990 -T, 1041 (estate), 1042, or 8804, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit $ c Balance due. Subtract line 5b from tine 5a. Include your payment with this form, or deposit with FTQ coupon if required. $ N / A Signature and Verification Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it i5 true, correct, ct�a"n�/d complete; and that , 1 am authorized d I to prepare this form. Signature ► " Le-- -- ' {' 1. 1, - Title ► C / - Date ► "/ v �lp/ ' 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 1118 • I We HAVE approved your application. Please attach this form to your return. I We HAVE NOT approved your application. However, we have granted a 10 -day grace period from the later of the date • shown below or the due date of your return (including any prior extensions). This grace period is considered a valid extension of time for elections otherwise required to be made on a timely return. Please attach this form to your return. 1 We HAVE NOT approved your application. After considering your reasons stated in item 4. we cannot grant your request tor an extension of time to file. We are not granting the 10 -day grace period. 1 We cannot consider your application because it was filed after the due date of the return for which an extension was requested. 1 Other: By: Director Date If you want a copy of this form to be returned to an address other than that shown above, please enter the address to which the gopy should be sent. Name \ • Please WIKOFF, COMBS & CO., CPAS Type Number, street (or P.O. box no. if mail is not delivered to street address) or 900 FORT STREET MALL, SUITE 1040 Print City, town, or post office, state, and ZIP code. For a foreign address, see instructions. HONOLULU, HI 96813 -3711 LHA For Paperwork Reduction Act Notice, see separate instructions. Form 2758 (Rev. 5-95) 1'3941 3 -30 -97 .3270215 758513 11125 092 MENTAL HELP HAWAII, INC. 11125 1 Form 2758 plication for Extension of Time To • • (Rev. May 1995) Certa cise, Income, Information, and Other Returns OMB No 1545 -0148 Department of the Treasuy Is File a separate application for each return. Interval Revenae Service Name MENTAL HELP HAWAII, INC. Employer identification number Please type or (FKA THE HOUSE, INC.) 99 0154505 print. File the Number, street (or P.O. box no. if mail is not delivered to street address) original and one copy by the due dateforfiling 1122 11TH AVENUE, SECOND FLOOR your return. City, town, or post office, state, and ZIP code. For a foreign address, see instructions. HONOLULU, HI 96816 Note: Corporate income tax return filers must use Form 7004 to request an extension of time to file. Partnerships, REMICS, and trusts must use Form 8735 to request an extension of time to file Form 1065, 1066, or 1041. 1 I request an'extension of time until 02/15 .19 99 to file (check only one): Form 706 -GS (0) 1 1 Form 990-T (401(a) or 408(a) trust) F 1 Form 1120 -ND (4951 taxes) 1 Form 8612 1 Form 706 -GS (T) 1 1 Form 990 -T (trust other than above) 1 1 Form 3520-A L 1 Form 8613 1 X 1 Form 990 or 990 -EZ 1 1 Form 1041 (estate) n Form 4720 1 1 Form 8725 1 Form 990 -BL • I I Form 1041 -A • 1 1 Form 5227 [ 1 Form 8804 1 Form 990 -PF 1 ' 1 Form 1042 1 1 Form 6069 1 Form 8831 If the organization does not have an office or place of business in the United States, check this box ► 1 2a For calendar year 19 _ ,or other tax year beginning 07/01/1997 and ending 06/30/1998 b If this tax year is for less than 12 months, check reason: 1 1 Initial return 1 1 Final return 1 1 Change in accounting period 3 Has an extension of time been previously granted for this tax year? 1 Yes 1 X 1 No 4 State in detail why you need the extension THE ORGANIZATION.REQUIRES ADDITIONAL TIME TO GATHER THE INFORMATION NECESSARY TO FILE A COMPLETE AND ACCURATE RETURN. 5a If this form is for Form 706 - 05(0), 706- GS(T), 990 -BL, 990 -PF, 990 -T, 1041 (estate), 1042, 1120 -ND, 4720, 6069, 8612, 8613, 8725, 8804, or 8831, enter the tentative tax, less any nonrefundable credits. $ b If this form is for Form 990 -PF, 990 -T, 1041 (estate), 1042, or 8804, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit S c Balance due. Subtract line 5b from line 5a. Include your payment with this form, or deposit with FTD coupon if required. g N/A 'Signature and Verification Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct,,afr4 complete; and that I am authorized to prepare this form. Signature /���, n! /Cy'' Title CPA Date ► / ` 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 IRS 1 1 We HAVE approved your application. Please attach this form to your return. • 1 1 We HAVE NOT approved your application. However, we have granted a 10 -day grace period from the later of the date shown below or the due date of yotir return (including any prior extensions). This grace period is considered a valid extension of time for elections otherwise required to be made on a timely return. Please attach this form to your return. 1 1 We HAVE NOT approved your application. After considering your reasons stated in item 4, we cannot grant your request for an extension of time to file. We are not granting the 10-day grace period. 1 We cannot consider your application because it was filed after the due date of the return for which an extension was requested. 1 I Other: By: Director Date If you want a copy of this form to be returned to an address other Than that shown above, please enter the address to which the copy should be sent. Name Please WIKOFF, COMBS & CO., CPAS Type Number, street (or P.O. box no, if mail is not delivered to street address) or 900 FORT STREET MALL, SUITE 1040 Print City, town, or post office, state, and ZIP code. For a foreign address, see instructions. HONOLULU, HAWAII 96813 • LHA For Paperwork Reduction Act Notice, see separate instructions. Form 2758 (Rev. 5 -95) 713941 1080 -9J • 15561 1 16 7 5R 5 1 " 1 1 1 1 "5 non VIPMTnr rrnr n r r n TT* 7 7 1 1 1' 1 a OMB Na. 15aS00d) Re f Organization. Exempt F. Income Tax 997 Form 990 Und action 501(c) of the Internal Revenue Code (except blac lung benefit trust or Department of t Treasury private foundation) or section 4947(a)(1) nonexempt charitable trust This Form Is Open • Internal Revenue Service Note: The organization may have to use a copy of this return to satisfy state reporting requirements. to Public Inspection A For the 1997 calendar year, OR tax year period beginning 7i 1 , 1997, and ending 6 /3 0 , 1998 B check it Rl eaae C Name of•organization ch - 0 Employer identification number X for ange uselRS address label or pdntor MENTAL HELP HAWAII, INC. 99- 0154505 n Initial "Pe. retvm see Number and street (or P.O. box if mail is not delivered to street address) Room /suite E State registration number n�a?m .specific 1122 11TH AVENUE Amended In atom e City, town, or post office, State, and ZIP +4 F Check • 1 I if exemption {«Safe oho - IONOLULU , HI 96816 nparo^41 application is pending G Type.pf organ — • 1 X 1 Exempt under 501(c) ( 3 ) 4 (insert number) OR • I] Section 4947(a)(1) nonexempt chartitable trust Note: Section 501(c)(3) exempt organizations and 4947(a)(1) nonexempt charitable trusts MUST attach a completed Schedule A (Form 990). H(a) Is this a'group return fled for affiliates? n Yes I X 1 No I If either box in H is checked 'Yes; enter four -digit group (b) If 'Yes; enter the number of affiliates for which this exemption number (GEN) • return is filed: • J Accounting method: 1 1 Cash 1 X 1 Accrual (c) Is this a separate return Bled by an organization covered by a group ruling? 1 Yes 1 X.1 No O Other (specify) • If Check here • 0 if the organization's gross receipts are normally not more than $25,000. The organization need not file a return with the IRS; but if it received a Form 990 Package in the mail, it should file a return without financial data. Some states require a complete return. Note: Form 990 -EZ may be used by organizations with gross receipts less than $100,000 and total assets less than $25Q000 at end of year. [Pam' Revenue, Expenses, and Changes in Net Assets or Fund Balances 1 Contributions, gifts, grants, and similar amounts received: a Direct public support la 219,832. h Indirect public support lb 83,871.:.: c Government contributions (grants) lc • 2,172,281.M.; d Total (add lines la through lc) (attach schedule of contributors) STMT 1 (cash$ 2,475,984. noncash$ ) 1d 2,475,984. 2 Program service revenue including government fees and contracts (from Part VII, line 93) 2 751,242. 3 Membership dues and assessments 3 4 Interest on savings and temporary cash investments 4 8,500. 5 Dividends and interest from securities 5 6 a Gross rents ' 6b • • b Less: rental expenses u c Net rental income or (loss) (subtract line 6b from line 6a) _,6c. c 7 Other investment income (describe • • ) 7 u ' 6 a Gross amount from sale of assets other (A) cc than Securities B ) Other than inventory 8a - b Less: cost or other basis and sales expenses _ - Bb c Gain or (loss) (attach schedule) 8c d Net gain or (loss) (combine line 8c, columns (A) and (8)) ..8tl 9 Special events and activities (attach schedule): a Gross revenue (not including $ of contributions reported on line la) I 9a 0 Less: direct expenses other than fundraising expenses 96 • c Net income or (loss) from special events (subtract line 9b from line 9a) 9c 10 a Gross sales of inventory, less returns and allowances 10a h Less: cost of goods sold 106 c Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) 10c 11 Other revenue (from Part VII, line 103) 11 12 Total revenue (add lines 10 2, 3 4 5 6c 7 8d 9c 10c and 11) 12 3,235,726. 13 Program services (from line 44, column (B)) 13 3,012,259. N a 14 Management and general (from line 44, column (C)) • 14 153,718. a 15 Fundraising (from line 44, column (D)) 15 w 16 Payments to affiliates (attach schedule) 16 17 Total expenses (add lines 16 and 44 column (A)) 17 3,165,977. 18 Excess or (deficit) for the year (subtract line 17 from line 12) - 18 69,749 . N m w 19 Net assets or fund balances at beginning of year (from line 73, column (A)) 19 1,300,437. ZQ 20 Other changes in net assets or fund balances (attach explanation) S EE S TAT E M E 2 .................. .. ........ .. . ..........NT 20 1 , 6 3 7 . .. 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) 21 1,389,823. LHA For Paperwork Reduction Act Notice, see page 1 of the separate instructions. • Form 990 (1997) 723001 03 -12 -98 1 16450410 758513 11125 097 MFNTAT. HFLP HA1a1TT Try, 1 11 "" 1 • Firm 990(199;) MENTAL 111,P HAWAII, INC. 99- 0154505 Paget Statement of A nizations must complete column (A). Columns (B), (C . (0) are required for section 501(c)(3) and i Part.. Functional Expenses (4) organizations and section 4947(a111) nonexempt charitable trusts but optional for others. Do not include amounts reported on line (B) Program (C) Management 6b, 8b, 9b, 10b, or 16 of Part I. (A) Total services and general (D) Fundraising 22 Grants and allocations (attach schedule) cash $ noncash $ • 22 23 Specific assistance to individuals (attach schedule) 23 24 Benefits paid to or for members (attach schedule) 24 25 Compensation of officers, directors, etc. 25 64,260. 3 8, 5 5 6. 25,704. 0 . 26 Other salaries and wages 26 1,503,830. 1,440,446. 63,384. 27 Pension plan contributions 27 21,824. 21,133. 691. - 28 Other employee benefits 28 29 Payroll taxes 29 281,693. 272,768. 8;925. 30 Professional fundraising tees 30 31 Accounting fees 31 32 Legal fees . 32 33 Supplies 33 34 Telephone 34 38, 311. 34,479. 3,832. 35 Postage and shipping 35 36 Occupancy • 36 266,194. 239,594. . 26,600. 37 Equipment rental and maintenance 37 • . 38 Printing and publications 38 39 Travel 39 58,565. 52,130. 6,435. 40 Conferences, conventions, and meetings 40 41 Interest 41 38,759. 38,759. 42 Depreciation, depletion, etc. (attach schedule) : 66,235. 5 9 , 0 9 2 . 7,143. 43 Other expenses (itemize): a 43a b 434 c 43c d 43d e SEE STATEMENT 3 43e 826,306. 815,302.. 11,004. 44 Total Junctional expenses (add lines 22 through 43) Organizations completing columns (B) -(0), cany these totals to tines 13-15 44 3,165,977. 3,012,259. 153,718. 0 Reporting of Joint Costs. - Did you report in column (8) (Program services) any joint costs from a combined educational campaign and fundraising solicitation? ► 1 1 Yes 1 X I No If 'Yes; enter (1) the aggregate amount of these joint costs $ ; (ii) the amount allocated to Program services $ , • (iii) the amount allocated to Management and general $ ; and (iv) the amount allocated to Fundraising $ • ( Part:1111 Statement of Program Service Accomplishments What is the organization's primary exempt purpose? ► SEE STATEMENT 4 Pro gEam Service All organizations must describe their exempt purpose achievements in a clear and concise manner. State the number of clients served, xo eases p (R equ i red for 473) and achievements that are not measurable. (Section 501([73) and (4) organizations and 4947(ax1) nonexempt chartable trusts must also enter r the publications the amount issued, etc. Discuss nt of grants and (tl aug49 to, and a9for(ot aulloc oca[ions to to M organizations ) trysts; but optional for others.) a SAFE HAVEN: PROVIDED MENTALLY ILL AND HOMELESS CLIENTS WITH SHELTER, SOCIAL, MEDICAL AND PSYCHIATRIC SERVICES. THE PROGRAM SERVED 43 CLIENTS. • (Grants and allocations $ ) 1,432,788. b SEE STATEMENT 5 (Grants and allocations $ ) 590,726. o SUPPORTIVE HOUSING: PROVIDED 86 MENTALLY —ILL CLIENTS WITH RENTAL HOUSING, SOCIAL SERVICES AND TENANT STAFF SUPPORT TO ENCOURAGE SUSTAINED COMMUNITY LIVING. (Grants and allocations $ ) 472,040. d SOCIAL REHABILITATION: PROVIDED EDUCATIONAL, SOCIAL,' VOCATIONAL AND RECREATIONAL ACITIVITES TO ALLOW CLIENTS MEANINGFUL COMMUNITY PARTICIPATION. THE PROGRAM SERVED 161 CLIENTS. (Grants and allocations $ ) 249,998. e Other program services (attach schedule) STATEMENT 6 • (Grants and allocations $ ) 266,707. f Total of Program Service Expenses (should equal line 44, column (B). Program services) ■ 3,012,259. 723011 03 -27 -96 2 1 657!)41 0 75 fir, 12 1 11n5 non PPT1mnr rTPTP rrnr•r'Tt Trrn 111nr 1 Porm 990 (1997) MENTA ELP HAWAII, ?3NC. • - 99- 0154505 Page3 IF nil Balance Sheets Note: Where required, attached schedules and amounts within the description column should be (A) (6) for end -of -year amounts only. . Beginning of year End of year 45 Cash - non - interest- bearing 16,004. 45 10,441. 46 Savings and temporary cash investments 46,231. 46 249,110. 47 a Accounts receivable 47a 85,144. b Less: allowance for doubtful accounts 470 138, 695. 47 c .. 85,144. 48 a Pledges receivable 48a b Less: allowance for doubtful accounts 48h 48c 49 Grants receivable 2 4g 263,049. 50 Receivables from officers, directors, trustees, and key employees (attach - w schedule) 50 N 51 a Other notes and loans receivable • 51 a a b Less: allowance for doubtful accounts 516 51c 52 Inventories for sale or use 52 53 Prepaid expenses and deferred charges 72,122. 53 36,687. 54 Investments - securities (attach schedule) 54 55 a Investments - and buildings, and equipment: basis 55a b Less: accumulated depreciation (attach schedule) 556 55c 56 Investments - other 0 • 56 0 . 57 a Land, buildings, and equipment: basis 57a 1,933,437. b Less: accumulated depreciation STMT 7 576 327,471. 1,619,769. 57c 1,605,966. 58 Other assets (describe ■ SEE STATEMENT 8 ) 117,623. 56 156,055. 59 Total assets (add lines 45 through 58) (must equaf fine 74) 2,265,515. 59 2,406,452. 60 Accounts payable and accrued expenses • 77,102. 60 120,221. 61 Grants payable 61 w 62 Deferred revenue 62 Z 63 Loans from officers, directors, trustees, and key employees 63 . 64 a Tax - exempt bond liabilities 643 b Mortgages and other notes payable STMT 9 - 825, 875. 64t, 843, 716. 65 Other liabilities (describe ■ SEE STATEMENT 10 ) 62,101. 65 52,692. 66 Total liabilities (add lines 60 through 65) 965,078. 66 1,016,629. Organizations That follow SFAS 117, check here ► 1 X 1 and complete lines 67 through 69 and lines 73 and 74 w 8 67 Unrestricted 1,145,306. 67 1,068 697. _ `m 68 Temporarily restricted 155,131. 68 321,126. m 69 Permanently restricted 69 Is Organizations that do not follow SFAS 117, check here ► I i an d complete lines u. 70 through 74 o 70 Capital stock, trust principal, or current funds 70 h 71 Paid -in or capital surplus, or land, building, and equipment fund 77 a 72 Retained earnings, endowment, accumulated income, or other funds 72 2 73 Total net assets or fund balances (add lines 67 through 69 OR lines 70 through 72; i 3 > 1,389,823. column (A) must equal line 19 and column (B) must equal line 21) 1,300,437. 74 Total liabilities and net assets / fund balances (add lines 66 and 73) 2,265,515. 74 2,406,452. 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 information 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. 723021 W -12 -9e 3 6450410 758513 11125 092 MENTAL HELP HAWATT TNr 111'r5 1 Form 990(1997 MENTAL P HAWAII, INC. 99- 0154505 Page Part IV-A Reconciliation of Reve per Audited Pad IV-111 Recon tion of Expenses per Audited Financial Statements with Revenue per Financial Statements With Expenses per Return Return a Total revenue, gains. and other support - - ^ a Total expenses and losses per >1 per audited financial statements • a 3,255,367. audited financial statements ► 11 3,165,977. h . Amounts included on line a but not on b Amounts included on line a but not on line 12, form 990: line 17, Form 990: (1) Net unrealized gains (1) Donated services 9 and use of facilities . $ on investments $ 19,641. (2) Prior year adjustments (2) Donated services reported on line 20, and use of facilities $ Form 990 $ (3) Recoveries of prior (3) Losses reported on yeargrants $ line 20, Form 990 ,.. $ (4) Other (specify): - (4) Other (specify): $ $ Add amounts on lines (1) through (4) • b 19 641. r Add amounts on lines (1) through (4) ► b c Line a minus line b ■ c 3 , 235 , 7 2 6 . c Line minus line b ► c 3,165,977. d Amounts included on line 12, Form d Amounts included on line 17, Form 990 but not on inc I a: 990 but not on line a: (1) Investment expenses (1) Investment expenses not included on . not included on line 6b, Form 990 ... $ line 6b, Form 990 $ (2) Other (specify): (2) Other (specify): • $ $ Add amounts on lines (1) and (2) ■ d Add amounts on lines (1) and (2) ► d e Total revenue per line 12, Form 990 e Total expenses per line 17, Form 990 (line c plus line ■ e 3,235,726. (line c plus line ■ e 3,165,977. 1 Part V 1 List of Officers, Directors, Trustees, and Key Employees (List each one even it not compensated.) (8) Title and average hours (C) Compensation (D )_Con mbueons io (E) Expense (A) Name and address - per week devoted to (if not paid, enter 7,7 , a eeeRea account and position -U-) comoensat,on Other allowances SEE STATEMENT 11 64,260. 1,882. 0. g R 75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your or anization and all related organizations, of which more than $10,000 was provided by the related organizations? If 'Yes," attach schedule. • I I Yes I X 1 No orm 990(t997) MENTELP HAWAII , ;INC . • 99 - 0154505 Pages E Part VI) Other Information Yes No 76 Did the organization engage in any activity not previously reported to the IRS? 1f'Yes; attach a detailed description of each activity 76 X 77 Were any changes made in the organizing or governing documents but not reported to the IRS? 77 X If "Yes' attach a conformed copy of the changes. _ 78 a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? 78a X b If Yes; has it filed a tax retum on Form 990 -T for this year? N / A 78h 79 Was there a liquidation, dissolution, termination, or substantial contraction during the year? 79 X If Yes; attach a statement; • 80 a Is the organization related (other than by association with a statewide or nationwide organization) through common membership, governing bodies, trustees, officers, etc., to any other exempt or nonexempt organization? 80a X b If 'Yes; enter the name of the organization ► SEE STATEMENT 12 and check whether it is 1 1 exempt OR 1 1 nonexempt 81 a Enter the amount of political expenditures, direct or indirect, as described in the instructions for line 81 81a 1 0. b Did the organization file Form 1120-POL for this year? 81b X 82 a Did the organization receive donated services or the use of materials, equipment, or facilities at no charge Or at substantially less than fair rental value? 62a X b If Yes' you may indicate the value of these items here. Do not include this amount as revenue in Part I or as an expense in Part 11. (See instructions for reporting in Part III) 1 82b I N/A 83 a Did the organization comply with the public inspection requirements for returns and exemption applications? 83a X b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? N/A 83b 84 a Did the organization solicit any contributions or gifts that were not tax deductible? 84a X b If Yes; did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? N/A 84b 85 501(c)(4), (5), or (6) organizations. - a Were substantially all dues nondeductible by members? N/A 85a b Did the organization make only in -house lobbying expenditures of $2,000 or less? N/A 85h If Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year. c Dues, assessments, and similar amounts from members 85c N/A d Section 162(e) lobbying and political expenditures ggd N/A e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices 85e N /A 1 Taxable amount of lobbying and political expenditures (line 85d less 85e) 851 N/A g Does the organization elect to pay the section 6033(e) tax on the amount in 85f? N/A 85g h If section 6033(e)(1)(A) dues notice were sent, does the organization agree to add the amount in 85f to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax year? N/A 85h 86 501(c)(7) organizations. - Enter: a Initiation fees and capital contributions included on line 12 • 86a N/A b Gross receipts, included on line 12, for public use of club facilities 86b N/A 87 5 0 1 (c)(12) organizations. - Enter: a Gross income from members or shareholders 87a N/A b Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or eceived from them.) 87b N/A 88 At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership? It 'Yes; complete Part IX 88 X 89 a 501(c)(3) organizations. - Enter: Amount of tax imposed during the year under: section 4911 ► 0 • ; section 4912 ► 0 • ; section 4955 ■ 0 . b 501(c)(3) and 501(c)(4) organizations. - Did the organization engage in any section 4958 excess benefit transaction during the year? If 'Yes; attach a statement explaining each transaction 89h X c Enter: Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955, and 4958 ► 0 d Enter: Amount of tax in 89c, above, reimbursed by the organization ■ 0 . 90 a List the states with which a copy of this return is filed • NONE b Number of employees employed in the pay period that includes March 12, 1997 1 gab I 78 91 The books are in care of 111 MENTAL HELP HAWAII, INC. Telephone no, ( 808) 737 -2523 Located at ■ 1122 11TH AVENUE HONOLULU, HI ZIP +4 ► 96816 92 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041.- Check here • ►( and enter the amount of tax - exempt interest received or accrued during the tax year ■ 192 + N/A 723041 03-12-98 5 16450410 7 5 R 9 1 '1 1 117 f191 MRATT TT TIRT P 1f7\1-771 T T TT7• 1 11'1 r 1 Form 990 (1997) MENTAL HAWAII, INC. , 99- 0154505 Page6 !Part 1111 > I Analysis of Income -Prod ng Activities Enter gross amounts unless otherwise Unrelated business income Excluded by section 512, 513, or 519 (E) indicated. (A) (B) � (C) (D) Related or exempt Business Amount aion Amount function income 93 Program service revenue: code cede (a)ROOM AND BOARD 751,242. (b) (c) (d) (e) (I) Medicare/Medicaid payments (g) Fees and contracts from government agencies 94 Membership dues and assessments 95 Interest on savings and temporary cash investments 14 8,500. 96 Dividends and interest from securities • 97 Net rental income or (loss) from real estate: • (a) debt-financed property (h) not debt-financed property 98 Net rental income or (loss) from personal property 99 Other investment income 100 Gain or (loss) from sales of assets other than inventory 101 Net income or (loss) from special events 102 Gross profit or (loss) from sales of inventory 103 Other revenue: a b c d e 104 Subtotal (add columns (8), (D), and (E)) 0. 8,500. 751,242. 105 TOTAL (add line 104, columns (8), (D), and (E)) ► 759,742. Note: (Line 105 plus line 1d, Part I, should equal the amount on line 12, Part I.) 1 Part Vlli Relationship of Activities to the Accomplishment of Exempt Purposes Line No. Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment of the organization's • exempt purposes (other than by providing funds for such purposes). 93 ENABLED THE ORGANIZATION TO CONTINUE PROVIDING RESIDENTIAL AND 93 REHAB ILIATION PROGRAMS AND SERVICES FOR PERSONS RECOVERING FROM MENTAL 93 ILLNESS ( Part t Information Regarding Taxable Subsidiaries (Complete this Part it the 'ins" box on 88 is checked.) Name, address, and employer identification Percentage of Nature of business activities Total income End -of -year number of corporation or partnership ownership interest assets N/A io sp Under penalties of penury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, It is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which prepare, has any knowledge. Please 1-/ Sign , -- , Wet rM.Ozt --,C4 ,- Here / Sign ure o � w 0 icer Date Type or print name and title Preparers / Date Check if self - Preparees59N Paid signature //Pfi5 employed ► 1 1 575 46 1315 Preparer's Firm's name (or yours WIKOFF, COMBS & CO., CPAS EIN ► 99 0246411 Use Only ifself- employed) ,900 FORT STREET MALL, SUITE 1040 and address • HONOLULU, HI ZIP +4 ■ 96813 -3711 723161 03.12 -38 6 1F1Sh41n - Ir0r1 - , 1 11'lr „ L S CHEDULE A •ganization Exempt Under•I (C)(3) OMB No 1545.0041 (Form 990) (Except Private Foundation), and Section 501(0), 501(1), 501(k), 501(n) or Section 4947(a)(1) Nonexempt Charitable Trust 1997 Department of the Treasury Supplementary Information Imams! Rmenue Service ► Must be completed by the above organizations and attached to their Farm 990 (or Form 990EZ). Name of the organization - Employer identification number MENTAL HELP HAWAII, INC. 99 0154505 { Part t I Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees (See instructions.) (List each one. If there are none, enter 'None') (a) Name and address of each employee paid (h) Title and average hours (e) Expense more than $50,000 per week devoted to (c) Compensation account and other position compensabon allowances NONE .. • Total number of other employees paid over $50,000 • 0 Part 111 Compensation of the Five Highest Paid Independent Contractors for Professional Services (See instructions.) (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 service (c) Compensation • NONE • Total number of others receiving over $50,000 for professional services ► 0 LHA For Paperwork Reduction Act Notice, see page 1 of the Instructions to Form 990 (or Form 990 -EZ). Schedule A (Form 990) 1997 723101 03 -12 -98 7 16450410 758513 11125 097 MENTAT, HALF H7\GTATT TNr 111") 1 Schedule A (Form 990) 1997 MENTAL •P HAWAII , INC . • 9 9 — 015 4 5 0 5 Page 2 artalt?! Statement About Activities Yes No 1 During the year, has the organization attempted to influence national, state, or local 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 activites. ► $ Organizations that made an election under section 5O1(h) by filing Form 5768 must complete Part VI -A. Other organizations checking 'Yes' must complete Part VI -B AND attach a statement giving a detailed description of the lobbying activities. 2 During the year has the oganization, either directly or indirectly, engaged in any of the following acts with any of its trustees, directors, officers, creators, key employees, or members of their families, or with any taxable organization with which any such person is affiliated as an officer, director, trustee, majority owner, or principal beneficiary: ' a Sale, exchange, or leasing of property? 2a X Lending of money or other extension of credit? • 2b X c Furnishing of goods, services, or facilities? 2c X • d Payment of compensation (or payment or reimbursement of expenses if more than $1,000)? 2d X e Transfer of any part of its income or assets? 2e X 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 4 Attach a statement explaining how the organization determines that individuals or organizations receiving grants or loans from it in furtherance of its charitable programs qualify to receive payments. (See instructions.) Part IV' Reason for Non - Private Foundation Status (See instructions.) The organization is not a private foundation because it is (please check only ONE applicable box): 5 A church, convention of churches, or association of churches. Section 17O(b)(1)(A)(i). 6 A school. Section 17O(b)(1)(A)(ii). (Also complete Part V, page 4.) 7 A hospital or a cooperative hospital service organization. Section 17O(b)(1)(A)(iii). 8 A Federal, state, or local government or governmental unit. Section 17O(b)(1)(A)(v). 9 A medical research organization operated in conjunction with a hospital. Section 17O(b)(1)(A)(iii). Enter the hospital's name, city, and state » • 10 An organization operated for the benefit of a college or university owned or operated by a governmental unit. Section 170(b)(1)(A)(iv). (Also complete the Support Schedule in Part IV -A.) 11a X An organization that normally receives a substantial part of its support from a governmental unit or from the general public. Section 17O(b)(1)(A)(vi). (Also complete the Support Schedule in Part IV -A.) 11b A community trust. Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Part IV -A.) 12 An organization that normally receives: (1) more than 33 1/3% 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 1/3% 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 5O9(a)(2). (Also complete the Support Schedule in Part IV -A.) 13 1 1 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 5O9(a)(2). (See section 5O9(a)(3).) Provide the following information about the supported organizations. (See instructions on page 4.) (b) Line number (a) Name(s) of supported organization(s) from above 14 1 1 An organization organized and operated to test for public safety. Section 5O9(a)(4). (See instructions on page 4.) 723111 03 -12.98 8 16 450410 7 58517 111 ')S /l nn narPPP 71 T Trr.r in f7 11171 T 7 T11^ 1 11 '1 r 1 • 1 ScheduleA (Form 990)1997 MEN HELP HAWAII,.'INC. 99- 0154505 Page3 l Part 1V -A'] Support Schedule (Co a only if you checked a box on line 10, 11, or 12 ove.) Use cash method of accounting. Note: You may use the worksheet in the instructions for converting from the accrual to the cash method of accounting. Calendar year (or fiscal year beginning In) • (a) 1996 (h) 1995 (c) 1994 (d) 1993 (e) Total 15 Gifts, grants, and contnbutions received. (Do include unusual grants. See 2,374,742. 1,414,067. 2,041,374. 1,220,517. 7,050,700. 16 Membership fees received 17 Gross receipts from 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 687,207. 644,706. 228,994. 143,996. 1,704,903. 18 Gross income from interest, dividends, amounts received from payments on securities loans (sec- tion 512(a)(5)), rents, royalties, and unrelated business taxable income (less section 511 taxes) from businesses acquired by the organization after June 30, 1975 • 4,731. 8,581. 2 , 2 6 4 . 2,276. 17 , 8 5 2 . 19 Net income from unrelated business ' activities not included in line 18 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 Othe rincome.Attachaschedule.Donot SEE STATEMENT 13 include gain or (loss) from sale of capital assets 10,859. 9,427. 18,943. 39,229. 23 Total of lines 15 through 22 3,066,680. 2,078,213. 2,282,059. 1,385,732. 8,812,684. 24 Line 23 minus line 17 2,379,473. 1,433,507. 2,053,065. 1,241,736. 7,107,781. 25 Enter l %of line 23 30,667. 20,782. 22,821. 13,857. 26 Organizations described in lines 10 or 11: a Enter 2% of amount in column (e). line 24 ' 26a 142,156. 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 tor 1993 through 1996 exceeded the amount shown ' in line 26a. Enter the sum of all these excess amounts ► 25b 0. c Total support for section 509(a)(1) test: Enter line 24, column (e) • la-26c 7 , 10 7 , 7 81 d Add: Amounts from column (e) for lines: 18 17,852. 19 22 39,229. 26b ■ 26d 57,081. e Public support (line 26c minus line 26d total) ► 25e 7,050,700. r Public support percentage (line 26e (numerator) divided by line 26c (denominator)) ► 26f 99.1969% 27 Organizations described an 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 from each 'disqualified person.' Enter the sum of such amounts for each year. N/A (1996) (1995) (1994) (1993) b For any amount included in 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 thelarger of (1) the amount on line 25 for the year or (2) $5,000. (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 decribed in (1) or (2), enter the sum of these differences (the excess amounts) for each year: N/A (1996) (1995) (1994) (1993) c Add: Amounts from column (e) for lines: 15 16 17 20 21 ► 27c N/A d Add: Line 27a total and line 27b total • 27d N/A e Public support (line 27c, total minus line 27d total) • 27e N/A 1 Total support for section 509(a)(2) test: Enter amount on line 23, column (e) ► 1 271 I $ N/A . g Public support percentage (line 27e (numerator) divided by line 27f, (denominator)) ► 27q N/A % h Investment income percentage (line 18 column (e) (numerator) divided by line 271 (denominator)) ■ 27h N/A 28 Unusual Grants: For an organization described in line 10, 11, or 12, that received any unusual grants during 1993 through 1996, 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.) NONE 723121 03 -12 -98 9 16450410 75R512 11115 non 71rrTm➢T rtrrn Tt.,, -,r Schedule A (Form 990) 1997 MENTAL ii HAWAII, INC. • 99- 0154505 Pane Part vI Private School Question (To be completed ONLY by schools that checked the box on line 6 in Part IV) N/A 29 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws, other governing Yes No instrument, or in a resolution of its governing body? 29 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? 30 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? 31 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? 32a b Records documenting that scholarships and other financial assistance are awarded an a racially nondiscriminatory basis? 32b c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships? 32c d Copies of all material used by the organization or on its behalf to solicit contributions? 32d 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? 33a b Admissions policies? 33b c Employment of faculty or administrative staff? 33c d Scholarships or other financial assistance? 33d e Educational policies? - 33e f Use of facilities? 331 g Athletic programs? 33g h Other extracurricular activities? 33h If you answered 'Yes' to any of the above, please explain. (If you need more space, attach a separate statement.) • _. _..3! 34 a Does the organization receive any financial aid or assistance from a governmental agency? 34a b Has the organization's right to such aid ever been revoked or suspended? 34b If you answered Ives' to either 34a or b, please explain using an attached 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? It'No; attach an explanation 35 723131 03.12.96 10 16450410 758513 11175 09) MFMT11 T. AFT ,P TT11WTTT Tenn 11nr S MENTALP HAWAII, INC. • 99- 0154505 Pages t Part Vi A I Lobbying Expenditu y Electing Public Charities (To be completed ONLY by an eligible organization that filed Form 5768) N/A Check here I► a n If the organization belongs to an affiliated group. Check here I► b n If you Checked a above and 'limited control' provisions apply. . • Limits on Lobbying Expenditures (al To be comp e for ALL (The term 'expenditures' means amounts paid or incurred) Affiliated group totals electing organizations N/A 36 Total lobbying expenditures to influence public opinion (grassroots lobbying) 36 37 Total lobbying expenditures to influence a legislative body (direct lobbying) 37 38 Total lobbying expenditures (add lines 36 and 37) 38 39 Other exempt purpose expenditures 39 40 Total exempt purpose expenditures (add lines 38 and 39) 40 41 Lobbying nontaxable amount. Enter the amount from the following table - II the amount an line 40 is - The lobbying nontaxable amount is - Not over $500.000 20% of the amount on line 40 Over $500,000 but not over $1.000,000 - $ 100,000 plus 15% of the excess over $500,000 2 Over 51.1303,000 but not over $1.500,000 5175,000 plus 10% of the excess over $1.000,000 41 Over $1,500,000 but not over $17,000.000 $225,000 plus 5% of the excess over $1,500,000 Over $17.000,000 31,000,000 42 Grassroots nontaxable amount (enter 25% of line 41) _. 42 43 Subtract line 42 from line 36. Enter -0- if line 42 is more than line 36 43 44 Subtract line 41 from line 38. Enter -0- if line 41 is more than line 38 44 • Caution: II there is an amount on either line 43 or line 44, you must file Form 4720. 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.) Lobbying Expenditures During 4 -Year Averaging Period N/A Calendar year (or (a) (b) (c) ' (d) (e) fiscal year beginning in) $ 1997 1996 1995 1994 Total 45 Lobbying nontaxable amount . 0. 46 Lobbying ceiling amount (150% of line 45(e)) 0 . 47 Total lobbying expenditures 0 . 48 Grassroots nontaxable amount .. 0. 49 Grassroots ceiling amount (150% of line 48(e)) 0 50 Grassroots lobbying expenditures • 0 i'Parti -B Lobbying Activity by Nonelecting Public Charities (For reporting only by organizations that did not complete Part VI -A) N/A 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: Yes No Amount • a Volunteers b Paid staff or management (include compensation in expenses reported on lines c through h) c Media advertisements d Mailings to members, legislators, or the public e Publications or published or broadcast statements 1 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) 0 . If 'Yes' to any of the above, also attach a statement giving a detailed description of the lobbying activities. 723141 03 -12 -9e 11 6450410 75851"1 111 flnf rap r TTrr7NT TTPTP rTT *TT T1 1 11flr- Schedule A (Form 990) 1997 MENTAL P HAWAII, INC. 99- 0154505 P1 age [pa-will Information Regarding T fors To and Transactions and Relati hips With Noncharitable Exempt Organizations 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: Yes No (I) Cash 51a(I) X (II) Other assets a(ii) X h Other transactions: (I) Sale's of assets to a noncharitable exempt organization b(i) X (If) Purchases of assets from a noncharitable exempt organization b(ii) X (III) Rental of facilities or equipment b(iii) X (Iv) Reimbursement arrangements b(iv) X (v)' Loans tit loan guarantees b(v) X (vi) Performance of services or membership or fundraising solicitations b(vi) X c Sharing of facilities, equipment, mailing lists, other assets, or paid employees c X d If the answer to any of the above is 'Yes' complete the following schedule. Column (b) should always indicate 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. N/A (a) (h) (c) (d) Line no. Amount involved Name of noncharitable exempt organization Description of transfers, transactions, and sharing arrangements • • • • • 52 a 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 527? ► } Yes 1 X 1 No b It 'Yes; complete the following schedule. N/A (a) (b) (c) Name of organization Type of organization Description of relationship • 723151 0.'112 -98 12 1F45(1A1n 7Sr7'1fl 111'1c nnn . ,. nr ..n. 1 t Depreciation and Amortization FORM 990 PAGE 2 • 990 Asset - Description of property Number Date Method/ Life Line Cost or Basis Accumulated in se vice I sec. or rate No. other basis reduction depreciation /amortization C deductionar r LAND I I I 1 I 1 1 I 1LAND VA I RI I ESISL 1.000 19 1 853,519.1 1 0. ** 990 PAGE 2 TOTAL LAND 1 1 1 1 1 1 853,519.J 0.1 0. ** 990 PAGE 2 TOTAL — 1 i • 1 1 1 1 853,519.1 1 0.1 0. BUILDINGS I 11 1 1 1 1 1 I 2BUILDINGS & IMPROVEMENTS IVARI I ESSL 130.00119 1 810, 015. 1 136, 399.1 28,670. ** 990 PAGE 2 TOTAL BUILDINGS 1 1 1 1 1 1 1 810,015.) 136,399. 28,670. ** 990 PAGE 2 TOTAL — 1 1 1 I 810,015. 136,399. 28,670. FURNITURE & FIXTURES 1 1 1 1 1 1 1 3FURNITURE & EQUIPMENT NA 1 1ti i ESSL 17.00 119 139,164.1 93,024. 12,042. ** 990 PAGE 2 TOTAL FURNITURE & FIXTURES 1 1 1 1 1 1 139,1641 93,024. 12,042. ** 990 PAGE 2 TOTAL — 1 1 1 1 1 .,139,164.1 93,0241 12,042. TRANSPORTATION EQUIPMENT III I SVEHICLES • VAIRIIESJSL 5.00 119 130,739. 1 31,813. 25,523. ** 990 PAGE 2 TOTAL TRANSPORTATION EQUIPMENT 1 1 1 1 130,739. 31,813. 25,523. ** 990 PAGE 2 TOTAL — 1 1 1 1 1 130,739. 31,8131 25,523. ** GRAND TOTAL 990 PAGE 2 DEPRECIATION 1 1 1 1 1 1,933,437. 261,236. 66,235. 1 i 1 1 11 1 1 1 1 11 1 1 1 I 1 1 1 1 1 1 1 I I J 111 1 1 1 I I I I 1 1 11 1 1 1 1 1 • ( I 1 1 [ 11 1 716261 M Current year section 1 1 3 (D) Asset disposed 10 -07.97 [6450410 758513 11125 097 MENTAL HFT.P HAWATT TNr 1 11 1 MENTAL'HELP HAWAII, IN� • 99- 0154505 FORM 990 CASH CONTRIBUTIONS OF $5000 OR MORE STATEMENT 1 INCLUDED ON PART I, LINE 1D * ** NOT OPEN TO PUBLIC INSPECTION * ** CONTRIBUTOR'S NAME CONTRIBUTOR'S ADDRESS AMOUNT MCINERNEY FOUNDATION C/O PACIFIC CENTURY TRUST, TRUSTEE P. 0. BOX 3170 HONOLULU, HI 96802 -3170 10,000. GWENFRED ELAIN ALLEN FUND C/O HAWAII COMMUNITY FOUNDATION 900 FORT ST MALL #1300 HONOLULU, HI 96813 20,000. HMSA, QUEST ADMINISTRATION P. O. BOX 3520 HONOLULU, HI 96811 137,000. COOKE FOUNDATION, LIMITED 900 FORT ST MALL #1300 HONOLULU, HI 96813 7,000. ATHERTON FAMILY FOUNDATION 900 FORT ST MALL #1300 HONOLULU, HI 96813 7,500. FREAR ELEEMOSYNARY TRUST C/O PACIFIC CENTURY TRUST P. 0. BOX 3170 HONOLULU, HI 96813 5,000. ROBERT EMENS BLACK FUND C/O HAWAII COMMUNITY FOUNDATION 900 FORT ST MALL #1300 HONOLULU, HI 96813 15,000. 14 STATEMENT(S) 1 6450410 758513 11125 092 MENTAL HELP HAWATT TNr 111 - )5 1 MENTAL HELP HAWAII, INC • 99.0154505 FORM 990 OTHER CHANGES IN NET ASSETS OR FUND BALANCES STATEMENT 2 DESCRIPTION AMOUNT NET UNREALIZED INVESTMENT GAINS 19,641. ROUNDING , <4.> TOTAL TO FORM 990, PART I, LINE 20 19,637. FORM 990 OTHER EXPENSES STATEMENT 3. (A) (B) (C) (D) PROGRAM MANAGEMENT DESCRIPTION TOTAL SERVICES AND GENERAL FUNDRAISING SUBCONTRACTOR SERVICE FEES 481,100. 481,100. PROJECT EXPENSES 196,755. 196,741. 14. PROFESSIONAL SERVICES 35,411. 32,716. 2,695. INSURANCE 43,377. 39,731. 3,646. OFFICE EXPENSES 9,704. 8,868. 836. UTILITIES 20,939. 19,413. 1,526. REPAIRS AND MAINTENANCE 17,832. 16,119. 1,713. OTHERS 21,188. 20,614: 574. TOTAL TO FM 990, LN 43 826,306. 815,302. 11,004. FORM 990 STATEMENT OF ORGANIZATION'S PRIMARY EXEMPT PURPOSE STATEMENT 4 PART III EXPLANATION TO PROVIDE RESIDENTIAL AND REHABILITATION PROGRAMS AND SERVICES FOR PERSONS RECOVERING FROM MENTAL ILLNESS. 15 STATEMENT(S) 2, 3, 4 16450410 75R512 1111c fn't p r'mmTr nrrn rt **."Tr r•• . , , MENTAL HELP HAWAII, I • 99- 0154505 FORM 990 STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS STATEMENT 5 DESCRIPTION OF PROGRAM SERVICE TWO TRANSITIONAL HOUSING: PROVIDED MENTALLY ILL CLIENTS WITH RENTAL HOUSING, SUPERVISION AND SOCIAL REHABILITATION AS AN ALTERNATIVE TO HOSPITALIZATION AND PROVIDED SUPPORTIVE CARE TO CLIENTS DISCHARGED FROM THE HAWAII STATE HOSPITAL. THE PROGRAM SERVED 110 CLIENTS. GRANTS EXPENSES TO FORM 990, PART III, LINE B 590,726. FORM 990 OTHER PROGRAM SERVICES STATEMENT 6 GRANTS AND DESCRIPTION ALLOCATIONS EXPENSES RESPITE PROGRAM SERVED APPROX. 300 CLIENTS. 112,516. CARE COORDINATION PROGRAM SERVED APPROX. 100 CLIENTS. 154,191. TOTAL TO FORM 990, PART III, LINE E 266,707. FORM 990 DEPRECIATION OF ASSETS NOT HELD FOR•INVESTMENT STATEMENT 7 COST OR ACCUMULATED DESCRIPTION OTHER BASIS DEPRECIATION BOOK VALUE LAND 853,519. 0. 853,519. BUILDINGS & IMPROVEMENTS 810,015. 165,069. 644,946. FURNITURE & EQUIPMENT 139,164. 105,066. 34,098. VEHICLES 130,739. 57,336. 73,403. TOTAL TO FORM 990, PART IV, LN 57 1,933,437. 327,471. 1,605,966. 16 STATEMENT(S) 5, 6, 7 16450410 758513 11125 092 MFNTAL HFLP HAWATT TNr 111fR 1 MENTAL HELP HAWAII, INC.• • 99 0154595 FORM 990 OTHER ASSETS STATEMENT 8 DESCRIPTION AMOUNT DEPOSITS AND OTHER 20,892. TRUST FUNDS 111,724. RESTRICTED CASH AND FUNDED RESERVES 19,465. ANNUITY 3,974. TOTAL TO, FORM 990, 'PART IV, LINE 58, COLUMN B 156,055. FORM 990 MORTGAGES PAYABLE STATEMENT 9 DESCRIPTION BALANCE DUE HUD CITY AND COUNTY OF HONOLULU 426,516. 426,516. TOTAL INCLUDED ON FORM 990, PART IV, LINE 64B, COLUMN B 843,716. FORM 990 OTHER LIABILITIES STATEMENT 10 DESCRIPTION AMOUNT DEPOSITS AND OTHER 12,234. FINANCED INSURANCE PREMIUMS 2,768. DEFERRED COMPENSATION PLAN 3,900. BANK OVERDRAFT 33,790. TOTAL TO FORM 990, PART IV, LINE 65, COLUMN B 52,692. 17 STATEMENT(S) 8, 9, 10 6450410 758513 11125 097 MENTAT, HFTP HAWITT TMC l>>flr M$NTAL HELP HAWAII, IN• • 99- 0154505 FORM 990 PART V - LIST OF OFFICERS, DIRECTORS, STATEMENT 11 TRUSTEES AND KEY EMPLOYEES EMPLOYEE TITLE AND COMPEN- BEN PLAN EXPENSE NAME AND ADDRESS AVRG HRS /WK SATION CONTRIB ACCOUNT WALTER OZAWA CHAIR 5307L KALANIANAOLE HWY. PART -TIME 0. 0. 0. HONOLULU, HI. 96821 CAROL EBLEN VICE -CHAIR 1310 HEULU ST. #2101 PART -TIME 0. 0. 0. HONOLULU, HI 96822 PAT DUARTE VICE -CHAIR 616 HAMAKUA PL. PART -TIME 0. 0. 0. KAILUA, HI 96734 RANDOLPH HACK SECRETARY 1117 12TH AVE. PART -TIME 0. 0. 0. HONOLULU, HI 96816 RODNEY FUKUYA TREASURER 1379 MAKAIKOA ST. PART -TIME 0. 0. 0. HONOLULU, HI 96821 RICHARD CHUNG DIRECTOR 7724 KALOHELANI PL. PART -TIME • 0. 0. 0. HONOLULU, HI 96825 USON EWART DIRECTOR 3765 ANUHEA ST. PART -TIME 0. 0. 0. HONOLULU, HI 96816 BARBARA HASTINGS DIRECTOR 38 KEPOLA PL. PART -TIME 0. 0. 0. HONOLULU, HI 96817 CHERYL HOLLAND DIRECTOR 44 -176 NANAMOANA ST. PART -TIME 0. 0. 0. KANEOHE, HI 96744 JOHN HOSHINO DIRECTOR 2658 PACIFIC HEIGHTS PART -TIME 0. 0. 0. HONOLULU, HI 96813 MARK ITO DIRECTOR 1576 ULUPUNI PART -TIME 0. 0. 0. KAILUA, HI 96734 18 STATEMENT(S) 11 16450410 798511 11125 097 MFNTAL HFLP HAWATT TNr 1115 1 MENTAL HELP HAWAII, INC • 99 GARY MALINOSKI DIRECTOR 4185 KEANU ST. #4 PART -TIME 0. 0. 0. HONOLULU, HI 96816 KAREN MURANAKA DIRECTOR 1221 VICTORIA ST. #1501 PART -TIME 0. 0. 0. HONOLULU, HI 96814 ALLENE RICHARDSON- SUEMORI DIRECTOR 339 MAMAKI ST. PART -TIME 0. 0. 0. HONOLULU, HI. 96821 FATHER TERRANCE WATANABE DIRECTOR 3300 ALA LUALANI ST. PART -TIME 0. 0. 0. HONOLULU, HI 96818 JANICE WOLF DIRECTOR 2418 OAHU AVE. PART -TIME 0. 0. 0. HONOLULU, HI 96822 JOANNE LUNDSTROM EXECUTIVE DIRECTOR 3045 PUALEI CIRCLE FULL TIME 64,260. 1,882. 0. HONOLULU, HI 96815 TOTALS INCLUDED ON FORM 990, PART V 64,260. 1,882. 0. FORM 990 IDENTIFICATION OF RELATED ORGANIZATIONS STATEMENT 12 PART VI, LINE 808 NAME OF ORGANIZATION EXEMPT NONEXEMPT THE LIGHTHOUSE, INC. X SIERRA HOUSE, INC. X OAHU HOUSE, INC. X HILO HOUSE, INC. X SCHEDULE A OTHER INCOME STATEMENT 13 1996 1995 1994 1993 DESCRIPTION AMOUNT AMOUNT AMOUNT AMOUNT MISCELLANEOUS 10,859. 9,427. 18,943. TOTAL TO SCHEDULE A, LINE 22 10,859. 9,427. 18,943. 19 STATEMENT(S) 11, 12, 13 16450410 798511 11195 nn) MFTTmnT TTFT T+ TJ7T TT T7 111 - 1 r 1 C OMB No. 1545 -0172 perm 4 •epreciation and Amortizailil ��� Department of the Treasury (Including Information on Listed Property) 990 Internal Revenue service lib Attach this form to your return. Sequencer Sequence t No 67 Name(s) shown on return Business or activity to which this ben relates Identifying number ( MENTAL HELP HAWAII, INC. FORM 990 PAGE 2 99- 0154505 1 Part..I I Election To Expense Certain Tangible Property (Section 179) (Note: If you have any 'listed property; complete Part V before you complete Part I.) 1 Maximum dollar limitation. If an enterprise zone business, see instructions 1 18,000. 2 Total cost of section 179 property placed in service 2 3 Threshold cost of section 179 property before reduction in limitation 3 $200,000 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- 4 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter O. If married filing separately, see instructions 5 6 (a) Description of property (b) Cost (business use only) (c) Elected cost 7 Listed property. Enter amount from line 27 1 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 8 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 10 Carryover of disallowed deduction from 1996 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 11 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 12 13 Carryover of disallowed deduction to 1998. Add lines 9 and 10, less line 12 ► I 13 I ' Note: Do not use Part II or Part III below for listed property (automobiles, certain other vehicles, cellular telephones, certain computers, or property used for entertainment, recreation, or amusement). Instead, use Part V for listed property. [Part j MACRS Depreciation For Assets Placed in Service ONLY During Your 1997 Tax Year (Do Not Include Listed Property.) Section A - General Asset Account Election 14 If you are making the election under section 168(i)(4) to group any assets placed in service during the tax year into one or more general asset accounts, check this box. See instructions ■ U Section 8 - General Depreciation System (GDS) (See instructions.) (b) Month and (c) Basis for depreciation (a) Classification of property year placed (buslnessTinvestment use (tl) Recovery m service only - see instructions) period (e) Convention (e Method (g) Depreciation deduction 15 a 3 -year property b 5/ear property c 7-year property d 10-year property e 15-year property - 1 20-year property g 25/ear property 25 yrs. S/L h Residential rental property / 27.5 yrs. MM S/L / 27.5 yrs. MM _ S/L i Nonresidential real property / MM S/L / MM S/L Section C - Alternative Depreciation System (ADS) (See instructions.) 16 a Class life S/L b 12-year 'a 12 yrs. S/L ................. c 40•year / 40 yrs. MM S/L Part. III( Other Depreciation (Do Not Include Listed Property.) (See instructions.) 17 GDS and ADS deductions for assets placed in service in tax years beginning before 1997 17 18 Property subject to section 168(0(1) election 18 19 ACRS and other depreciation 19 66,235. I ' pert lvl Summary (See instructions.) 20 Listed property. Enter amount from line 26 20 21 Total. Add deductions on line 12, lines 15 and 16 in column (g), and lines 17 through 20. Enter here and on the appropriate lines of your return. Partnerships and S corporations - see instructions 21 66,235. 22 For assets shown above and placed in service during the current year enter the portion of the basis attributable to section 263A costs 22 LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 4562 (1997) 5251 20 •12 -99 6450410 758513 11125 092 MENTAL HELP HAWATT, TNC. 11129 1 t Farm 4562 (1997) Page` 1 .Part V I Listed Property - Automobiles, n Other Vehicles, Cellular Telephones, Certai mputers, and Property Used for Entertainment, Recreation, or Amusement Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 23a. 23b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other Information (Caution: See instructions for limits for passanger automobiles.) 23a Do you have evidence to support the businessrinvestment use claimed? n 'Yes n No 23b1f 'Yes,' is the evidence written? 1 1 Yes 1 I No (a) (b) Date (c) (d) (e) (1) (g) (h) (') Type of property placed in Business/ Cost or Bash ror depreeiavon Recovery Method/ Depreciation Elected (list vehicles first) service investment other basis (businesslnvestment period Convention deduction section 179 use percentage use only) cost 24 Property used more than 50% in a cualified business use: . % % 25 Property used 50% or less in a qualified business use: % S/L - % S/L % S /L- % S/L 26 Add amounts in column (h). Enter the total here and on line 20, page 1 1 26 27 Add amounts in column O. Enter the total here and on line 7, page 1 27 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other 'more than 5% owner,' or related person. If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles. (a) (b) (c) (d) (e) (f) 28 Total business /investment miles driven during the Vehicle -. Vehicle Vehicle Vehicle Vehicle Vehicle year (DO NOT include commuting miles) 29 Total commuting miles driven during the year , 30 Total other personal (noncommuting) miles driven 31 Total miles driven during the year. Add lines 28 through 30 - Yes No Yes No Yes No Yes No Yes No Yes No 32 Was the vehicle available for personal use during off -duty hours? 33 Was the vehicle used primarily by a more than 5% owner or related person? 34 Is another vehicle available for personal use? Section 0 - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons. Yes No 35 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your . employees? 36 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See instructions for vehicles used by corporate officers, directors, or 1% or more owners 37 Do you treat all use of vehicles by employees as personal use? 38 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? 39 Do you meet the requirements concerning qualified automobile demonstration use? Note: If your answer to 35. 36, 37, 38, or 39 is 'Yes,' you need not complete Section 8 for the covered vehicles. I pa v i Amortization (a) (b) (c) (d) (e) ( Cescv ption of costs Dalamotzabon Amortizable Coda Amwtizaoon Amortization beams amount section period or percentage for this year 40 Amortization of costs that begins during your 1997 tax year. • 41 Amortization of costs that began before 1997 .. ' 41 .......................................... ........................... 42 Total. Enter here and on 'Other Deductions' or 'Other Expenses' line of your return 42 716252 )J -12 -9e 21 16450410 758513 11125 09? MFNTAT, HELP HAWATT TATr 1 1120 1 n De merit of the I reasury L Internal Avenue Service i e . me 1979 District Director • 1 Our Letter Dated: December 26, 1973 Date: . DEC 2 2 1970 Person to Contact: W. E. Pure Contact Telephone Number. (213)688-5787 The House 4510 Sierra Drive Honolulu, Hawaii 96016 • • This modifies our letter of the above date in which we stated that you would be treated as an organization which is not a private foundation until the expiration of your advance ruling period. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Internal Revenue Code,'because you are ansorganizatioonsoftthe typ d s) in section 170.(b) (A)..(v). code is still in effect. Grantors and contributors may rely on this determination t he Internal Revenue Service publishes notice to the contrary. nwun grantor or a contributor may not rely on this determination if ho or she was in part responsible for, or was award of, the act or failure to act that resulted in your loss of section 17O(h)( L_.- status, or acquired • knowledge that the Internal Revenue Service had given notice that you would be removed from classification as a section 1ZQTh)(1i(A)_(vi)_ organization. Because this letter could help resolve any questions about your private foundation status. please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, N • District Director Form L -399 (Rev. 1 -76) P.O. Box 2350, Los Angeles, Calif. 90053 11 1 1 111 1 1 1 1 1 1 1 � I0I11 U 1�1►1 11111 sup�s�� DEC. 12. 19Y4 D.ite of this nouc 99-0154 J 1nIeii linen( UI I u� I t ice Taxpayer IdanU1 umber Tex Period: �ahl liter fl 3 Form: 'l1 FRESNO, C 91888 For assistance you may r. ali us a': • --- t ���,I nn, Iuln, I��lan�n� ,�,��n,.lnl,lnfuil,nn, „nl 541 -1040 ISLAND OOFE00AF l 1- 800 - 82 9-1040 MENTAL HELP HAWAII 1122 11TH AVE FIRST FLOOR HONOLULU HI 96816- 2409221 • WE CHANGED YOUR NAME AND /OR ADDRESS IIYOYUCESPONDECE AS YOU REQUESTED, WE'VE MADE THE FOLLOWING CHANGES TO YOUR NAME AHD/OR S NAME AHD ADDRESS HOW S ANN ADDRESS PREVIOUSLY OWN 011 YOUR ACCOUNT • • SfIOWN ON YOUR ACCOUNT MENTAL HELP HAWAII 6 51 II SUES OHO LULU H 1122 11TH AVE FIRST FLOR 10 HL U HI DR 96816- 4C24109 HONOLULU NI 96816 � • IF YOU DON'T AGREE WITH THIS CHANGE, PLEASE LET US KNOW. • • • • 1 1 • ACORb ;°CERTIFIC *.OF °LIABILITY INSI►NCR Doiiio /oo PRODUCER THIS CERTIFICATOPIPSSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Aon Risk Services, Inc. of HI HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 201 Merchant Street, Ste 2400 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Honolulu HI 96813 COMPANIES AFFORDING COVERAGE ' COMPANY PhoneNo. 808- 533 -4900 Faallo.808- 540 -4301 A Royal Surplus Lines Ins. Co INSURED COMPANY B • COMPANY Mental Help Hawaii, etal C 1122 llth Avenue COMPANY Honolulu HI 96816 D COVERAGES' THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 15 SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE ,POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MM /DDNY) DATE (MM /DD/YY) GENERALLIABIUTY GENERAL AGGREGATE $3,000,000 A X COMMERCIAL GENERAL LIABILITY KZC521755 07/01/99 07/01/00 PRODUCTS - COMP/OP AGG 51,000,00 X CLAIMS MADE OCCUR _ PERSONAL AADV INJURY $1,000,000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $ 1 , 000 , 000 FIRE DAMAGE (Any one fire) S 50,000 MED EXP (Any one person) $ 5,000 AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT S 1 , 00 , 000 A ANY AUTO KZC521755 - 07/01/99 07/01/00 ALL OWNED AUTOS BODILY INJURY SCHEDULED AUTOS (Per person) $ X HIRED AUTOS BODILY INJURY S X NON -OWNED AUTOS (Per accident) PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT 1 ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ _ AGGREGATE S EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE S OTHER THAN UMBRELLA FORM S WORKERS COMPENSATION AND TO I EMPLOYERS' LIABILITY EL EACH ACCIDENT $ THE PROPRIETOR/ INCL EL DISEASE - POLICY LIMIT S PARTNERS/EXECUTIVE — OFFICERS ARE: EXCL EL DISEASE - EA EMPLOYEE S OTHER A Professional Liab KXC521755 07/01/99 07/01/00 Ea Occurr $1,000,000 Aggregate $3,000,000 DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLESISPECIAL ITEMS It is agreed that the Certificate Holder is named as an additional insured but only to the extent set forth in the policy provisions. ' CERTIFICATE HOLDER : CANCELLATION HA00001 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL Hawaii County 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Purchasing Department BUT FAILURE TO MAIL SUCH NOTIOtlabiURJAAbSL4tPT o ih4BILITY 25 Aupuni Street Li Hilo HI 96720 OF ANY KIND UPON THE COMPANY, ITS AGENTSOR T AUTHORIZED REPRESENTATIVE iJ /,{// r� 2}�� /� ACORD 25S (1/95) - " ACORD CORPORATION 1988 • 1 (Ceti: i. Cical lon charltc 1 I File.' in Duplicate optional) STATE OF HAWAII DEPARTMENT OF REGULATORY AGENCIES Business Registration Division .,•~ 1010 Richards Street Mailing address: P. O. Box 40, Honolulu, Hawaii 96310 p r In the 21st ter of the Incorporation ) I f- ! : - 1 ) I . '. -') : .., i U L . a • ; 1. .. Of ) Alt.! , 0/ o f% 1 111E MUM �YF( is i - i i1 i•; °v0!AfOnY - PRTITION FOR CHARTER OF INCORPORATION `f{ E.1!VA9 The undersigned, a majority of whom are resident. of the State of Hawaii, hereby petition, under the provisions of Section 416 -19 and 416 -20, Hawaii Revised Statutes, for a charter of incorporation, for themselves and their associates, . as o non - profit corporation under the name of 781 IlOU • and in connection herewith do hereby incorporate herein by reference thereto the accompanying proposed charter of incorporation wherein are set forth various matters required under Section 416 -20 aforesaid. A Dated at Honolulu, Hawaii, thlsl8th -da y of ril , 19 � '1 . -314f VI 'niSIDU'ff 5 STATE OF HAWAII ) .... ) as sr — SEC 1%)R /1'Hrnsuwal CITY AND COMFY OF HONOLULU ) r Gary Y. Funasaki Janes 11. Waters , and . Margaret S. Johnson ' , being first duly sworn on oath, depose and say that they are the petitioners above named, that they have read the foregoing petition and attached proposed charter of incorporation and know the contents thereof; and that the matters and statements therein set forth are true' to the best of their knowledge and belief. # / ate, IA.. Vi Subscriber! and sworn to before me T V� �++�r'' 5, this 6 . day of (2tea , 19 7 /. r-' ,;X (5�_e Notary Pablic,__; w�._., Jndicl c, r, ' Sento of Hawaii Ny aun.miaalan aspirant (, • s A. Rev. 5/71 • • , • STATE! OF HAWAII • rnuw i ;a r OF REGULATORY AGENCILES • BUSINESS IL GIS11J1FION DIVISION In the Fatter of the Incorporation ) ) of ) ) THE lI'J'JSIi . ) . ) ) • UlARTT:R OF INCORPORATION • TO ALL 70 imam THESE PRESENTS SHALL COYJ3: I, the undersigned Director of Regulatory Agencies of the State of Hawaii, send Greeting: I'RThJ IiAS, GARY Y. FUN,ASAKI , JN1ES H. WATERS and PARGAFTT S. JOHNSON a majority of whom are residents of the State of Hawaii, have filed with me as Director of Regulatory Agencies a verified petition to grant to them and their associates a charter of incorporation 'as a nonprofit corporation in accordance with the provisions of Section 41.6-20, Hawaii Revised Statutes; NOW TERIEFOlaf, KNOY1 YE, That I, the said Director, in the exercise and execution of every power and authority in anywise enabling inc in behalf, do hereby constitute the said petitioners and their associates a corporation under the laws of the State of Hawaii for the purposes and in the form hereinafter set forth. I The i ma e of . 4111 • • II The location of the principal office of the cor- ''poration shall be in HONOLULU, State of Hawaii, and the specific address of its initial office shall be 200 NORTH VINEYARD BLVD., SUITE 101, State of Hawaii. III The corporation shall be organized exclusively for the following purposes: 1. To provide a residential, social, rehabili- tation program for socially and /or emotionally disabled persons. 2. To assist such persons in achieving their optimum level of self maintenance in the community. 3. To coordinate fund raising efforts in the community to support the purposes set forth in subpara- • graphs 1 and 2 above provided, however, that the foregoing shall be limited to charitable and educationo.l purposes t :i.n the meaning of Internal - Revenue Code Section 501(c)(3). , 'i'Iw corporation is not organized for profit and it will not issue any stock. No part of its assets, income or earnings shall inure to the benefit of any member, director or officer, or any private • individual, except that reasonable compensation may be paid for services fendcrcd to or i': i:l,:: co pca af . ('cc i.i!, one or more of its objcct nnd purl'o::ca, No member, direc- tor or officer or the cor;'or t..v::, or any private i.!1U.L 'wdual, 4111 4111 shall be entitled to share in the distribution of - any of the • corporation's assets on dissolution of the corporation. No • part..Of the activities of the corporation Shall include (i) carrying on Of propaganda, (ii) attempting in any manner to :influence legislation, or (iii) participating in, or inter- vening in (including the publishing or distributing of state- . merits), any political campaign on behalf of any candidate for public office. • • Further, and without limiting the generality of the foregoing, • (1) The corporation shall distribute 'its income for each taxable year at such time and :in such manner as not to become subject to the fax on undistributed illeMIC imposed by Section 4942 of the Internal Revenue Code of ' 1954, or corresponding provisions of any subsequent Federal fax laws. • (2) The corporatie shall not engage in any act of self-dealing as defined in Section 4941(d) of the Internal .Revenue Code of 1954, or corresponding provisions of any • • subsequent Federal fax laws. (3) The corporation shall not retain any excess business . holdings as defined ih Section 4943(c) of the Internal Revenue Code of 1954, or corresponding previsions of any subsequent Federal fax laws. (4) The corporation shall not make any invest- merits in such manner as to subject it to fax under Section 4944 of the internal Revenue Code of 1954,..yr corresponding provisions of any subsequent Federal fax lawS. • ' • (5) The corporation shall not make any taxable expenditures as defined in Section 1 :9 of the Internal fldvenue Code of 195)1, or corresponding provisions of any subsequent Federal tax .law's. IV The duration of' the corporation shall be per- petual. • V The officers shall consist of': President, Vice President and Secretary /Treasurer. • VI There shall be a board of directors consisting of not less than three mcabers.. ilia following persons shall be the initial officers and &rectors, and shill hold office for the first year or until their successors are duly elected pursuant to the by -laws of the corporation Office Held Name Rcsidcnce Address President Cary Y. Funasaki 3337 Ilinuno Street Honolulu, Hawaii 96915 Vice President Janes 11. Waters Hawaii State hospital 45 -700 Keaaiala Road Kaneohe, Hawaii 96744 Secretary/Treasurer I4argaret S. Johnson 2447 ■kikiki heights Drive Honolulu, Hawaii 96822 VII The corporation shill have only such powers as provided for by law necessary to accomplish its stated purposes. • • • ... e' • VIII The corporation is organized for G ARITA.UL° purposes only and is not organized for profit, it will not issue any stocks, and no part of its assets, incoato or earnings shall be distributed to its members, directors, or officers, except for services actually rendered to the corporation. lip nt dissolution; all of the assets of the corporation after paqmeut of its just debts shall•be transferred or distributed to an organization or organizations as shall at the time qualify as an exempt organization or - • organizations ttndc.:r Section Sm (c)(3) of the int_•rnal Rc enue Code of 1654 IN ; ;rl'iecs hltURFop, I have hereunto set my hand and seal. of the lloparunont of Regulatory Agencies, at Honolulu, this 7,ry day of y • • 1973. /f • Director of Ilegula ry LCs rporatron and bocuraties Attainistra for — 'l — «: • • .. z D A.rwWment .a Charter _ H . 4 Nrn J.elll Ce.peress.e p F IN In Duelleem . Q 15 • FILING: 17.50 • Dishonored Chock S TATE O F HAWAII CenIllation NvP S .10 Per paewpllon.l DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS • Owens. Retention 01dnon • 1010 Richards Siren Moline Addr•u: P 0 On• 40, Honolulu, in 90010 r L' � a • _( ' .. In ma Matter of the Amendment of 1 _ • �_ Fri t�� ;' I ' !v CTert,t of Incorporation of 1 I . . .. I L 19;33 ij • TIIE HOUSE � 2:,'. I /: ' Dept al Cumi h 1 }m ;unmr Ai:..0 • STATE OF HAWAII I • CERTIFICATE OF AMENDMENT The undersigned duly authorized officers of TIIE ItOUSE a Hawaii non-pn,f11 corporation. do hereby certify that at a special meeting of the members of said corporation duly called and held at 4510 Sierra Drive, Honolulu, Ilai 96016 an the 26th d o f October , 19 B 2 , for the purpose of amending the Charter of Incorporation. it was voted by not leis than two-thirds of the members present at the meeting to amend the Charter of Incorporation of said corporation. as set forth in the exhibit attached hereto and made a part of thii Certificate. IN WITNESS WHEREOF, the undersigned have hereunto set their hands this 1 day 01 February 19 0 3 . • atce- Office held: Treasurer • .. / I /}` Office hold J y u gl vn[✓ STATE OF HAWAII I ) ss. CITY & COUNTY CF HONOLULU f PAULI NE BECKER ano LYNNE KAZAMA beim; first duly lworn.on oath depose and say that they are the and Secretary rnpe<tively, of TIIE HOUSE • ; that as such officers they are duly authorized to sign the foregoing Certificate of Amendment; and that' they have read the said Certificate end attached • Exhibit, knoW the contents thereof, and that she same are true. /I 14 V �-l-. Lki .Fn.-/ Office held: AIWA e(I::U r0r S..mrnanl and swans 10 »fore Inc rate ✓ I iAt (th n 1)U;`._.. J Oflico held: JSecret • G-t,,,• G�--..//(( l.._. - ;oh•v�1)elr. role n16e « mi I J ,1 . -- .1 r m cuMb6vn �. i1) 1.) _ /' the wrayouly amulwnan; a ne...uv •.duww tans .. of '•✓• c -r u• • - � l:(iq •'�I'''I: lti J _ - I -, 46,.._„ Director ul Commerce and Consumer Affairs dV f +r �/C r Cr potation and 5 . rdies Administrator - - '-- -, n... 14'51 (See reserved. for mruua.o,H 41/0 k% • 4 • AMENDMENTS TO TIIE HOUSE CIIAIf1'EI1 OP INCORPORATION 1. Article III, Subsection 1 is amended to read as follows: To provide a residential, social, rehabilitation program • for socially and /or emotionally disabled persons and to • provide emotionally handicapped persons with housing • facilities and services specially designed to meet • their physical, social and .psychological needs, the charges for such facilities and services to be predicated upon the provision, maintenance and operation thereof on a • non - profit basis. 2. Article VII is amended to read as follows: • The corporation is empowered: (a) to buy,' own, sell, sign, mortgage or lease any interest in real estate and personal property and to construct, maintain and operate improvements thereon necessary or incident to the accomplishment of the purposes set forth in Article III hereof; (b) to borrow money and issue evidence of indebtedness in furtherance of any and all of the objects of its business, and to secure the same by mortgage, pledge or other lien on. the corporation's property; (c) to do and perform all acts reasonably necessary to accomplish the purposes of the corporation, including the execution of a Regulatory Agreement with the Secretary of (lousing and Urban Development, and of such other instruments and undertakings • as may be necessary to enable the corporation to secure • • • the benefits of financing under Section 202 of the Housing Act of 1959. Such Regulatory Agreement and • other instruments undertaking shall remain binding upon the corporation, its successors and assigns, so long as -a mortgage on the corporation's property is held by the'Secretary of Housing and Urban Development; (d) in the event of the dissolution of the corporation or their winding up of its affairs, or other liquidation of its assets, the corporation's property shall not be conveyed to any organization created or operated for profit or to any individual for less than the fair market value of such property, and all assets remaining after the payment of the corporation's debt shall be conveyed or distributed only to the organization or organizations created and operated for non - profit purposes similar•to those of the • • corporation; provided, however, that the corporation shall at,all times have the power to. convey any all of its property to the Secretary of (lousing and • Urban Development; and (e) the corporation shall have such other and further powers as provided for by law. 3. Article VI is amended to add the following: The Directors shall serve without compensation. 4. The Charter of Incorporation is amended by adding a new Article IX to read as follows: New By-Laws of the corporation may be adopted by the Directors at any regular meeting or any special sleeting called for • • _2_ • that purpose, so long as they are not inconsistent with the, provisions of these articles or. of the Regulatory Agreement between the corporation and the Secretary of (lousing and Urban Development pursuant to Article III hereof. 5. The Charter of Incorporation is amended by adding Article X to read as follows: So long as a mortgage on the corporation's property is • held by the Secretary of (lousing and Urban Development, these articles may not be amended without the prior written approval of the said Secretary. • • BY -LAWS OF THE HOUSE, INC. • ARTICLE I • • Purpose. • The purpose of the corporation 'Shall be as follows: 1. To provide social rehabilitation services through housing facilities and rehabilitation programs designed to meet the physical, social and psychological needs of persons recovering from severe mental or emotional disabilities. 2. To assist such persons to achieve their optimal level • of -self-maintenance in the community. 3. To coordinate fundraising efforts in the community to support the purposes set forth in subparagraphs 1 and 2 above. The corporation is not organized for profit and it will I not issue any stock. No part of its assets, income, or earnings shall inure to the benefit of any member, director of officer, or any private individual, except that reasonable compensation may be paid for services rendered to or for the corporation affecting one or more of its objects and purposes. • • ARTICLE II Membership Section 1. Members at the rnrporat»on. Members of the corporation shall consist of the members of the Board of Directors and such other persons as shall be admitted by a majority vote of the members at a meeting held for that purpose. The Board of Directors shall have the power to expel members of the corpo- 1 • 1 , • ration, to adopt such ill'es and regulations gove.ng membership, classes and classifications of membership in the corporation, not inconsistent with law, the Charter of Incorporation or these By -Laws, as the Board of Directors shall deem advisable. ARTICLE III Board of Directors Section 1. Bembershiv. The Board of Directors shall consist of not less that six (6) nor more than twenty -four (24) persons. At each annual meeting, the members of the corporation shall elect Directors, to replace those whose terms expire at that meeting or additional Directors. Section 2. Ian. The term of the members of the Board of Directors, shall be for a period of three (3) years or until a successor shall be appointed or elected as herein provided, provided :that one -third of the members of the Board shall initially be appointed for a one (1) year term , one -third for a two (2) year term, and one -third for a three (3) year term, and that thereafter the term of one -third of the board shall expire each year. • Section 3. &emovnl af Board Members and Officers. Any member of th. Board of Directors or any Officer may be removed from Board membership or Office with or without cause upon the affirmative vote and not less than three - fourths (3/4) of the members of the corporation. A member who is absent for any three (3) consecutive meetings without a valid reason shall be notified that the Board may consider a removal motion. 2 O R Sectio Vacancies. Should a va y occur in the Board of Directors for any reason, the remaining members of the Board of Directors may elect a successor to fill the vacancy to serve for the unexpired term so vacated. Section 5. Election of. New Board Members. It shall be the duty of the nominating committee annually to prepare a slate pf nominees to be elected as Directors for the succeeding year and at the request of the Board of Directors submit 'nominations to fill vacancies in the Board. A nominating committee shall search for nominees and appraise their potential as Board Members. At the meeting prior to the annual meeting, the slate presented will be Presented to the entire Board of Directors. Additional nominations may be made at this meeting. By a majority vote of the members at the annual meeting, new persons may be elected as Boar'd members. Section 6. Powers Qj the Board of Directors. All of the powers of and authority of the corporation shall be vested in and be exercised by the Board of Directors, except as limited by law, the Charter, or these By -Laws, and in furtherance and not in limitation of said general powers, the Board of Directors shall have the power to formulate corporate policy and objectives, to acquire and dispose of property, to appoint officers, agents, or employees of the corporation as in !its judgment the best interests of the corporation may require and to confer upon and delegate to them the power of attorney or otherwise such power. and authority as it shall determine; to fix the salaries or compensation of any and all of the paid employees and agents of the corporation; and in its discretion require security of any of them for the faithful 3 • performance of any of Sir duties; to make rul�nd regulations . e , • not inconsistent with law, or the Charter, or By -Laws for the operation of the corporation; to create such committees (including an executive committee or committees) of the Board of Directors and to designate as members of such committees such persons as it shall determine and to confer upon such committees such powers and authority as may by resolution be set forth for the carrying out or exercising of the powers of the corporation; to remove or suspend any officer with or without cause and generally to do any and every lawful act necessary and proper to carry into effect powers, purposes, and objects of the corporation. ARTICLE IV Officers The officers of the 'corporation shall be the Chairman of the Board, the Vice- Chairman who shall be Chairman Elect, the Secretary, the Treasurer, and other officers as elected by a majority vote of the Board. All officers shall be elected to the Board of Directors and from its membership at the annual meeting of the corporation for a term of two (2) years or shall hold office until their sudcessors are chosen and approved or unless sooner removed. Section 1. C a rm.n. The Chairman shall: (a) preside at all meetings of the Board of Direc- tors and of the membership and Executive Committee, and shall represent the organization at all appropriate meetings of other national organizations as deemed wise; 4 s 9 s (Sppoint chairmen and mem. of all standing committees and special committees not otherwise provided for, and may appoint a corresponding secretary and parliamentarian. All appointments shall be approved by the Executive Committee and may be approved by mail; (c) issue the Call to the Annual„Meeting on behalf of the Executive Committee. Section 2. Vice- Chairman. The Vice - Chairman shall be designated the Chairman Elect, and shall: (a),in the absence of the Chairman, perform the duties of the office and serve as a member of standing committees; (b) perform such other duties as assigned by the Chairman. Section 3. $ecretarv. The Secretary shall have custody and care of the corporate seal and minutes of the corporation. He or she shall attend all meetings of the membership and of the Board of Directors and shall keep, or cause to be kept, a book containing a true and complete record of the proceedings of such meetings. He or she shall notify all members and directors of all meetings and shall perform such other duties as the Board of Directors may from time to time prescribe. Section 4. Treaurer. (a) The Treasurer or his /her authorized deputy shall in general perform all duties incident to'the office of the treasurer. (b) He or she shall chair the Finance Committee b and shall present a wsten report at meetings •the Executive t • Committee or the Board of Directors: He or she ll be an ex- officio member of the Program Committee and the Community. Relations Committee. (c) Submit the accounts and records for an annual audit to a firm of independent public accountants (the Auditor) elected at the annual general membership meeting.. • (d) Submit the accounts and records for audit at such other times as the Board of Directors may determine. • ARTICLE V • Chief Executive Officer Section 1. Chief Execut'v.- Officer. The Chief Executive Officer (CEO) shall be nominated and elected by the Board of Directors for a term and at such compensation as the Board of ( Directors may decide. Upon election as CEO, he or she shall be a member of all committees. He or she shall have active direction and management of the business and affairs of the corporation, and shall perform such duties as may be adopted by resolution of the • Board of Directors. He or she shall be responsible to the Board of Directors, and shall report to them at regular intervals and upon their recuest. (a) He or she shall be charged with the control and management of the professional and business aff of the corporation including the hiring, setting of salaries, supervision • and d i rection of the employees of - the corporation, the development and maintenance of services of the corporation in fulfillment of its aims and purposes. • (b) He or she shall establish and maintain effec- tive liaison with the Board of Directors. 6 s At or she shall be presenlikr represented at all meetings of the Board of Directors and shall be present or represented at meetings of standing committees except when his or her personal status is under consideration. (d) He or she will orient new members of the Board of Directors to the operations of, the organization. (e) He or she shall assist the Board of Directors in the formulation of policy by presenting and interpreting operating reports including reports reflecting the efficiency and effectiveness of the organization, and by presenting and inter- preting financial statements, short -term and long -term plans, changing concepts, needs, and related information. (f) He or she shall assist the Board of Directors as required in such functions as fund raising, community rela- tions, and related duties. ( (g) He or she shall coordinate and direct activi- ties of the organization in accordance with the policies of the Board of Directors. (h) He or she shall maintain personnel policies. (i)He ox she shall control the _operation of the organization through day -to -day decisions, authorization of expenditures, and other procedures in accordance with the policies established by the Board of Directors. (j) He or she shall upgrade the operation of the organization by analyzing reports of the various services, com- paring the performance against budgetary, administrative, and 7 • • t professional standards and the extent to which organization goals and objectives are being attained, and by taking appropriate, measures. (k) He or she shall keep abreast of mental health - related developments locally, nationally, and :internationally. (1) He or she-shall keep currently informed of applicable laws and regulations affecting the organization. (m) He or she shall represent the corporation in professional and business affairs of the corporation. (n) He or she shall perform other duties the Board of Directors may from time to time properly require. The CEO shall be considered an employee of the corporation. The CEO may be terminated as an employee of the corporation upon thirty (30) days written notice by the corporation with or without cause upon the, affirmative vote of not less than three - fourths (3/ of the Board of Directors. ARTICLE VI i &ud for The fiscal year shall be July 1 through June 30. The Auditor shall at the end of each fiscal year, and oftener when so directed by the Board of Directors, audit the books and accounts of the corporation and certify the findings thereon in writing to the Board of Directors; and shall make such other audits, inves- tigations and reports as the Board of Directors shall from time to time determine. 8 r ! • ARTICLE VII • Meetingss • • Section 1. Regular Meetings. Regular meetings of the Board of Directors shall be held at a minimum of six (6) times a year. Section 2. Annual Meeting. The annual meeting of the members of the corporation shall be held each year at a time and place to be set by the Board of Directors.•The annual meeting shall be a general meeting and at any such meeting any business within the power of the corporation, without special notice of such business, may be transacted except as limited by law or these By -Laws. Section 3. Special Meetings. Special meetings of the Board of Directors may be called by or at the request of the CEO, the Chairman of the Board of Directors, or any two members of the Board of Directors. Section 4. Notice of Meetings. The Secretary shall give notice of each meeting of the Board of Directors either orally or in writing by mailing or delivering the same not less that forty -eight ( 43) hours before the meeting unless otherwise prescribed by the Board of Directors. The failure of the Secretary to give such notice or the non- receipt of such notice by any Director shall not invalidate the proceedings any meeting of the Board of Directors at which a quorum of the Directors is °resent. 9 r ! t . Section 5. . All members of theWrd of Directors (excepting non - voting members if a class or classes of non - voting members shall be created) shall be entitled to one vote, in • person, at all meetings of the corporation. Section 6. Attendance. The CEO and the members of the Board of Directors are expected to attend all Board meetings. Staff members of The House, Inc. may attend all Board meetings if interested or if requested to attend by the CEO or any Board member. Other interested persons may attend with the approval of the CEO or any Board member. Section 7. Parliamentary Authority. Any rules of par- liamentary procedure not covered by these By -Laws shall be gov- erned by the latest edition of "Robert's Rules of Order ". Section S. Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business. In the absence of a quorum, the presiding officer or the majority of the members of the Board of Directors then in attendance may adjourn the meeting from time to time without further notice until a quorum be held. ARTICLE VIII Committees af. the Board There may be established from the membership of the Board of Directors the following standing committees: (a) An Executive Committee composed of the officers of the Board. (b) A Finance Committee composed of at least two members of the Board one of whom is the Treasurer, and whose 1. 10 duties shall include; • (1) Assess fiscal needs and resources; (2) Identify funding sources; and (3) Participate in resource development. (c) A Program.Committee composed of at least two (2) members of the Board and whose duties shall include: (1) Review mission and goals; (2) Review program policies and procedures; (3) Review community needs and resources; and (4) Advise the Board of appropriate responses and actions relative to the mission and goals of the corporation, (d) A Community Relations Committee composed of at least two (2) Members of the Board whose duties shall include: (1) Provide advocacy for community -based services; (2) Enhance the public recognition of the corporation; (3) Promote the mission, goals, and objectives • of the corporation; and (4) Assist in the development of resources. (e) A Nominating Committee composed of at least two (2) members of the Board, which shall perform the duties described in ARTICLE III, Section 5 of these By -Laws. (f) Other committees, as deemed necessary to carry out the business of the Board of Directors, composed of members 11 I 1 and non - members of thZf Board as the Board may ermine.' Committees shall be appointed by the Chairman of the ( Board of Directors subject to approval.of the Board and shall' perform any specific duties assigned to them by the Chairman and all duties incident to the normal functions of committees. • ARTICLE IX Executive Committee Section 1. Meetings. The Executive Committee shall meet when called by any member of the Committee. Section 2. Powers 4.f the Executive Committee. Except as limited by the resolution creating it or by other resolution of the Board of Directors, the Executive Committee shall have, and may exercise, all the powers of the Board of Directors in the management of the business and affairs of the corporation in the intervals between the meetings of the Board of Directors. The . Executive Committee may also from time to time, formulate and recommend to the Board of Directors for approval, general policies regarding the management of the business and affairs of the • corporation. Designation of the Executive Committee and delegation of authority thereto shall not operate to relieve the Board of Directors or any member thereof from any responsibility imposed upon it or him or her by law, by the Articles of Incorporation, or by these By-Laws. (a) Quorum. A majority of the Executive Committee shall be necessary to constitute a quorum for the transaction of • business. 12 a , (the Executive Committee 411/all the powers and authority of the Board; however, its actions concerning the employment and termination of the CEO,.the amendment of By -Laws, and the purchase, sale, or lease of real estate must be ratified by the Board of Directors before they become.effective. Specific responsibilities of the Executive Committee - shall include, but not be limited to: 1. Long -range Planning; 2. Organizational Design; 3. Compensation of the paid officers; 4. By -Laws; and 5. Corporate finance and capital appropriations. ARTICLE X Execution of Instruments Section 1. Prnoer Officers. Except as otherwise provided by law, all checks, notes, bonds, leases, contracts, and other documents or instruments shall be signed, executed and delivered by the CEO and one officer of the corporation, provided further that the Board of Directors may from time to time by resolution authorize checks; agreements, certificates, and documents of any nature to be signed, executed and delivered by such officers, agents, or employees of the corporation, or any one of them, in such manner as may be determined by the Board of Directors. 13 ® • e: 4 �. ARTICLE XI Conflict of.Tntereet ( Any person who receives compensation for services rendered or commissions of any kind frbm the corporation shall be ineligible for voting membership on its Board of Directors, unless such proposed contract for the production of goods or the performance of services of any type between the corporation and any Director or any corporation, firm, or partnership, owner or controlled by such Director has been approved by an affirmative vote of at least two - thirds (2/3) of the members of the Board of Directors, and written notice of any such action must be given to all Board members at least one week prior to any such proposed action. ARTICLE XII Trdemni fic.at i on EjEht to Indemnification. Any person made or threatened to be made a party to any action, suit, or proceeding (other than one brought by the corporation) because such person served on the Board of Directors, or on a committee, or as an officer of the corporation, shall be provided appropriate defense, and be indem- nified and held harmless against any and all claims, judgments, fines and amounts paid in settlement, provided that such persons give adequate notice to the corporation as set forth in pertinent corporate insurance policies. Said indemnification shall include, but not necessarily be limited to, reasonable costs and expenses, 14 1 � 7 reasonable attorn fees and any other liabilities that may be imposed or incurred as a result of such action, suit, or proceed- ing, if such person acted in good faith for a purpose which'he or she reasonably believed to be in the best interest of the corpo- ration, and if (with respect to any criminal action, suit, or proceeding) such person had no reasonable cause to believe that his or her conduct was unlawful. Such indemnification shall be provided whether or not such person is holding office at the time of such action, suit, or proceeding, and whether.or not such liability is incurred prior to the adoption of this Article, provided timely notice of the threatened action, suit, or pro- ceeding, is given to the corporation. • The termination of any action, suit, or proceeding by judgment, settlement, conviction, or upon a plea of nolo conten- dere or its equivalent, shall not in itself create a presumption that any such person did not act in good faith for a purpose which he or she reasonably believed to be in the best interest of the corporation or that he or she had reasonable cause to believe that his or her conduct was unlawful. Such right to indemnification shall pass to the succes- sors, heirs, executors, or administrators of such persons. Determii of. Risht,s pf Indemnification. In each instance in which a question of indemnification arises, entitle- ment thereto shall be determined by the joint- action of the Board of Directors and the appropriate corporation insurance carrier; such joint action will also determine the-time and manner of payment or other implementation of such indemnification, 1 • te If any actW, suit, or proceeding illiompromised, it must be with the approval of the Board of Directors, in accordance with the terms of the appropriate insurance policy. • Nothing shall preclude any person who is refused indem- nification by the Board of Directors from asserting a right to indemnification by legal proceedings or in any other appropriate day. The right to indemnification shall be in addition to any other right or remedy such person may have. Nothing shall be deemed to limit or restrict any right or indemnification that such person may be entitled to assert under the provisions of any applicable law of the State of Hawaii now or hereafter in force. Officers and Directors insurance. The cQrporation shall maintain errors and omissions and such other general liability insurance for its officers and directors as named insureds. The amount of insurance shall be set by the Board of Directors but shall be not less than One Million Dollars ($1,000,000) per incident. ARTICLE XII Amendments These By -laws may be altered, amended or repealed at any annual meeting or at any special meeting called for the purpose by • a majority vote of all members of the corporation present at the meeting provided that written notice of the. meeting has been given stating that one of the purposes .of the meeting is the. consideration of the amendment of the By -Laws and further provided that the By -Laws may not be amended without the Department of 16 Q O e • • Housing and Urban Development approving the amendment, such Department of Housing and Urban Development approval being necessary no long as the Department of Housing and Urban Development Regulatory Agreement with The House, Inc. is in effect. a E E T i E I E A T E I Barbara Furugen , Secretary of THE HOUSE, INC., a Hawaii eleemosynary corporation, do certify that the foregoing is a full, true, and correct copy of the revised By Laws of said corporation as adopted by the majority vote of the Board of Directors of the corporation at a meeting of said corporation duly called and held on September 21, 1990 and that the same are now in full force and effect. DATED: October 17, 1990 Secretary 17 11 ;“' r.-4...7-99 10 :25 MEHTA ELP HAW!•rl 1 1 808 734 1208 k' 02 OTHER CONDITIONS OF EMPLOYMENT i Mental Help Hawaii will initiate an investigation in those cases handled by a spen- lion may be imposed. Such investigation as warranted may neutral party. I Com itm t • Mental Help Hawaii is committed to excellence and staff are expected to respond to that commitment to strive for excellence through their performance of their job. No employee shall hold a position when he /she or a nnember of t1ieir immediate family serve on the Board of the agency, and no employee shall hold a position over which he /she supervises, or is supervised by a member of hisiher imr/'e Ja e I family and no two members of an immediate feinil y can be employ ed in the same children, ( grandpa ent grandchildren brothers' sisters, t spo ses, ani domestic is • partners. • • Hate Employees whose positions are funded in part or in whole by federal funds are se, or be a candidate fur public subject to the provisions of the Hatch Act. Specifically, such employees may not use official authority for any public political purpo elective office in a partisan election. Co list of In Brest proper No employees shall permit their pr' ',ate interest to conflict with the p ro p discharge Of official duties, nor shall tney use their position or the knowledge Le., gained from it to give the appearznce of conflict, improper personal gain or advantage, unnecessarily adverse effect upon the agency's interests, or improper p' gain or advantage to a third ?arty. Employees and paid consultants are required to disclose any financial interest i they have in the assets, leases, business transactions, and professional services of the agency. Source; Mental Help Hawaii Employee Handbook, January 1998 91 I -6-