Audit 362352

Title: NATURE OF OPERATIONS Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Description of organization: The Rhode Island Coalition for the Homeless, Inc., D/B/A Rhode Island Coalition to End Homelessness (RICEH) is a Rhode Island nonprofit corporation exempt as a public charity from federal and state income taxes under Section 501 (c)(3) of the Internal Revenue Code. RICEH’s mission is to provide shelter and services to the homeless, impact legislation to address the lack of affordable housing, and to educate the general public on issues surrounding the homeless population. The Coalition is located in Providence, Rhode Island. Services are provided statewide.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Basis of Accounting RICEH prepares its financial statements using the accrual method of accounting in accordance with accounting principles generally accepted in the United States. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Basis of Presentation The financial statements of RICEH have been prepared on an accrual basis in accordance with accounting principles generally accepted in the United States of America. The financial statements are presented in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958 dated August 2016, and the provisions of the American Institute of Certified Public Accountants (AICPA) “Audit and Accounting Guide for Non-Profit Organizations” (The “Guide”). Under the provisions of the Guide, net assets and revenues, and gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, the net assets of RICEH and changes therein are classified as follows: Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of RICEH. The Coalition’s board may designate assets without restrictions for specific operational purposes from time to time. The Board has not designated any assets as of June 30, 2023. Net assets with donor restrictions: Net assets subject to stipulations imposed by donors, and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of RICEH or by the passage of time. Other donor restrictions are perpetual in nature, where the donor has stipulated the funds be maintained in perpetuity. Grants Receivable The grants receivable consists of reimbursement grants. It is RICEH’s policy to charge off uncollectable balances when management determines these amounts will not be collected. RHODE ISLAND COALITION FOR THE HOMELESS, INC. (D/B/A RHODE ISLAND COALITION TO END HOMELESSNESS) NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 8 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Cash and Cash Equivalents For the purposes of the cash flow statement, RICEH considers cash equivalents all highly liquid investments, which can be converted into cash and have a maturity period of ninety days or less at the time of the purchase. Accounts receivable Accounts receivable consist of amounts due for license fees. RICEH uses the specific identification method in recording uncollectible amounts. Prepaid expenses Any expenses paid prior to the related services rendered will be recorded as a prepaid expense or an asset. The value of the prepaid is expensed over a time consistent with the value of the asset. Property and equipment and depreciation Property and equipment, if any, are stated at cost except donated property and equipment which is capitalized at its fair market value at the date of donation. RICEH capitalizes furniture, equipment and building improvements having a cost basis of over $2,500. Depreciation is computed on the straight-line method over the following estimated useful lives: Years Furniture and fixtures 5 -7 Equipment 3-20 Donations of property and equipment are reported as unrestricted support unless the donor has restricted the donated assets for a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted support. Absent donor stipulations regarding how long those donated assets must be maintained, RICEH reports expirations of donor restrictions when the assets are placed in service at which time RICEH reclassifies net assets with donor restrictions to net assets without donor restrictions. Contract and Grant revenue Contract and grant revenue are recognized as earned when services have been rendered and RICEH fulfills the terms of the grant and or contract. Revenue received, but not earned, is classified as deferred revenue on the financial statements. Contributions RICEH receives support from individuals, foundations, and corporations in support of their mission. Contribution revenue is recognized at the fair value on the earlier of the receipt of cash on an unconditional promise to give from time to time. RICEH received contributions that name certain restrictions. RHODE ISLAND COALITION FOR THE HOMELESS, INC. (D/B/A RHODE ISLAND COALITION TO END HOMELESSNESS) NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 9 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Contributions (Continued) When a restriction expires, that is, when a stipulated time restriction ends or a purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the Statement of Activities as net assets released from restrictions. Donor-restricted contributions whose restrictions are met in the same reporting period are reported as net assets without donor restriction support. Donations of property and equipment are recorded as support as their estimated fair value at the date of donation. Contributions restricted for the acquisition of land, buildings, and equipment are reported as net assets without donor restriction upon acquisition of the assets and the assets are placed in service. Donated services RICEH records donated goods and services at fair value at the date of the donation in accordance with accounting profession requirements. Donated goods and services are recognized as contributions if the services create or enhance nonfinancial assets, or require specialized skills, are performed by people with those skills, and would otherwise be purchased by RICEH. Promises to Give Written unconditional promises to give, less an allowance for uncollectible amounts, are recognized as revenue in the period received and as assets or decreases of liabilities, depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. Deferred Revenue Deferred Revenue consists of funds received, but not earned, and are classified on the financial statements as liability or as net assets with donor restrictions. These funds are deemed to be earned and are reported as revenues when the Coalition has rendered services. Fair Value Measurements Authoritative guidance relating to fair value establishes a framework for measuring fair value and establishing a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad areas: RHODE ISLAND COALITION FOR THE HOMELESS, INC. (D/B/A RHODE ISLAND COALITION TO END HOMELESSNESS) NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 10 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Fair Value Measurements (Continued) Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that RICEH has the ability to access. Level 2 Inputs to the valuation methodology include:  Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in inactive markets;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.  If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Functional Allocation of Expenses The costs of providing program and other activities have been summarized on a functional basis in the Statement of Activities. Accordingly, certain costs have been allocated among program services and supporting services benefited. Such allocations are determined by management on an equitable basis. The expenses that are allocated include the following: Expense Method of Allocation Salaries, Payroll taxes, and benefits Time and effort Advertising Time and effort Computer expenses Time and effort Conference and travel Time and effort Consultants Time and effort Copier lease and maintenance Time and effort Dues and subscriptions Time and effort Miscellaneous Time and effort Occupancy costs Time and effort Office expenses Time and effort Payroll processing Time and effort Printing and postage Time and effort Telephone and internet Time and effort RHODE ISLAND COALITION FOR THE HOMELESS, INC. (D/B/A RHODE ISLAND COALITION TO END HOMELESSNESS) NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 11 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Measure of Operations The Statements of Activities report all changes in net assets, including changes in net assets from operating and non-operating activities. Operating activities consist of those items attributable to RICEH’s ongoing activities. Income Taxes RICEH is exempt from income taxes as a public charity under section 501(c)(3) of the Internal Revenue Code. Management believes that RICEH operates in a manner consistent with their tax-exempt status at both the state and federal levels. RICEH annually files IRS Form 990 – Return of Organization Exempt from Income Tax reporting various information that the IRS uses to monitor the activities of tax-exempt entities. There were no unrecognized tax benefits identified or recorded as liabilities for the year ending June 30, 2023. Uncertainty in Accounting for Income Taxes When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the tax authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. The benefit of a tax position is recognized in the financial statements in the period which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset against or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying Statement of Financial Position along with any associated interest and penalties that would be payable to the taxing authority upon examination. The open tax years are 2020-2022. Management has determined there are no uncertain income tax positions. Recent Accounting Pronouncements The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting, and/or disclosure of financial information by RICEH. RHODE ISLAND COALITION FOR THE HOMELESS, INC. (D/B/A RHODE ISLAND COALITION TO END HOMELESSNESS) NOTES TO THE FINANCIAL STATEMENTS June 30, 2023 12 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Recent Accounting Pronouncements (Continued) In February 2016, the FASB issued ASU 2016-02, Leases, which is effective for annual periods beginning after December 15, 2021. The standard requires all leases with lease terms over 12 months to be capitalized as a right-of-use asset and lease liability on the Statement of Financial Position at the date of lease commencement. Leases will be classified as either financing or operating. This distinction will be relevant for the pattern of expense recognition in the Statement of Activities. This standard was effective for RICEH’s year ending June 30, 2023. Management evaluated the financial statements with the applied standard and concluded there was no impact. Advertising Advertising costs are expensed in the year incurred. For the year ended June 30, 2023, and 2022, advertising expenses were $694 and $3,722, respectively.

Title: GRANTS RECIEVABLE Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Grants receivable at June 30, 2023 and 2022 totaled $758,313 and $472,223 respectively, due from local government agencies. RICEH uses the specific identification method in estimating bad debts. $7,738 of grants receivable were considered uncollectible at June 30, 2023.

Title: PROPERTY AND EQUIPMENT Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance At July 1, 2022, RICEH wrote off all assets and switched primarily to remote work; total write off 6,825. Changes in property and equipment accounts for the year ended June 30, 2023, are summarized as follows: Changes in property and equipment accounts for the year ended June 30, 2022, are summarized as follows: Category Balance, Start of the Year Additions Deletions Balance, End of the Year Equipment $ 42,052 $ (42,052) - $ $ - Furniture and Fixtures 3,774 (3,774) - - Total 45,826 (45,826) - - Less: Accumulated Depreciation (39,001) 39,001 - - Net Property and Equipment $ 6,825 $ 39,001 $ (45,826) $ - Category Balance, Start of the Year Additions Deletions Balance, End of the Year Equipment $ 42,052 $ - $ 42,052 - $ Furniture and Fixtures 3,774 - 3,774 - Total 45,826 - 45,826 - Less: Accumulated Depreciation (37,756) (1,245) (39,001) - Net Property and Equipment $ 8,070 $ (1,245) $ 6,825$ -

Title: LINE OF CREDIT PAYABLE Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance RICEH has a line of credit, with a local bank which provides for maximum borrowings of $100,000 and a credit card with another institution which provides maximum borrowings of $31,200. The interest rate on the lines of credit are 8.99% and 18.99%, respectively and are secured by substantially all RICEH’s assets. The outstanding balance on the credit card was $17,651 at June 30, 2023.

Title: FUNDS HELD FOR OTHERS Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance On April 3, 2023, the Coalition received funds of $1,331,382 from the Executive Office of Health and Human Services (EOHHS) for its Pay for Success (PFS) program, which launched in the ensuing fiscal year. The funds are currently held in an interest-bearing savings account with a balance of $1,341,797 at the June 30, 2023, year-end. Funds will be unlocked in increments over a period of four years, in pertinence to yearly outcomes achieved by the program.

Title: COMMITMENTS AND CONTINGENCY Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Contingency - Contract audits RICEH receives certain funding through federal and state grants and contracts which obligate RICEH to keep the related financial and program records available for inspection or audit for three to five years following the submission of the final reports to the funding sources. These audits take place at the discretion of the funding sources.

Title: NET ASSETS WITHOUT DONOR RESTRICTIONS Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance At June 30, 2023 Net Assets Without Donor Restrictions consisted of the following: \ 2023 2022 Operating Funds, Available for General Purposes 184,641$ 156,980$ Invested in Property and Equipment, Net of Accumulated Depreciation - 6,825 Total 184,641$ 163,805$

Title: NET ASSETS WITH DONOR RESTRICTIONS Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Blue Cross Blue Shield Angel Grant $ 514 $ 100,000 $ (93,444) $ 7,070 Helen Hudson - 17,000 (11,320) 5,680 IOLTA - 6,000 (4,765) 1,235 RIF - DEI - 15,000 - 15,000 United Way 59,465 (59,465) - - Woman's Grant - 7,500 (7,454) 46 Total $ 59,979 $ 145,500 $ (176,448) $ 29,031

Title: FUNDRAISING Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Fundraising is shown net of direct benefit costs to participants as follows: Event 2023 2022 Annual Event $ 10,957 $ 6,744 Less: Cost of direct benefits to participants 4,640 2,256 Net proceeds $ 6,317 $ 4,487

Title: CONCENTRATION OF FUNDING Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance RICEH received 10% or more of its revenue and contributed support from the following sources for the year ended June 30, 2023: RICEH received 10% or more of its revenue and contributed support from the following sources for the year ended June 30, 2022: Source Revenue Percentage of Total Revenue and Support U.S. Department of Treasury $ 675,376 17.45% U.S. Department of Housing and Urban Development 1,575,751 40.72% Total $ 2,251,127 58.17% Source Revenue Percentage of Total Revenue and Support Office of Housing and Community Development $ 4,854,059 65.22% Total $ 4,854,059 65.22%

Title: LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance Financial assets at year-end: Cash $ 419,844 Cash held for program 1,341,797 Accounts receivable - Grants receivable 758,313 Less amounts not available to be used within one year Funds Held for Program 1,341,797 Net assets with donor restrictions 29,031 Financial assets available to meet general expenditures over the next twelve months 1,149,126 The Organization has a policy to manage their liquidity and revenue with the objective of maintaining adequate liquidity to fund near-term operations and maintaining sufficient reserves to provide reasonable assurances that long-term obligations will be met. The Organization’s primary sources of financial assets are contributions, grants, and fundraising. Much of that support is not subject to restriction. Management believes that currently available financial assets are adequate to fund operations for the coming six months. Additional grants, fund-raising and donations will be utilized to fund operation for the balance of the year.

Title: SUMMARIZED FINANCIAL INFORMATION AS OF JUNE 30, 2022 Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance The financial statements include certain prior year summarized comparative information in total but not by net asset class or functional expense classification. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Coalition’s financial statements for the year ended June 30, 2022, from which the summarized information was derived.

Title: SUBSEQUENT EVENTS Accounting Policies: Summary of significant accounting policies - Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. - Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect cost rate The Coalition has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance In preparing these financial statements, RICEH’s management has evaluated events and transactions for potential recognition or disclosure through March 28, 2024, the date the financial statements were available to be issued. Through that date, there was one event requiring disclosure. The Coalition has launched its Pay for Success (PFS) program as of September 2023. The PFS program is a social impact bond that aims to provide supportive housing to individuals who are high utilizers of the Department of Justice system and/or Medicaid. This impacts the Coalition's finances as the program is set up to receive funds from the Executive Office of Health and Human Services (EOHHS) in an escrow over the course of four years. Funds of $1,331,382 have already been received and will be "unlocked" in increments upon evaluation of successful outcomes achieved by the program. This evaluation will be completed by an independent source. The program is financially backed by private investors who will assume the financial risk of the program.