Representative Town Meeting Budget and Special Meeting - DAY 2 (linked)

NL HOMELESS
HOSPITALITY
CENTER

Administrative Office
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Program Office
325 Huntington Street
New London, CT 06320
December 13, 2022 www.NLHHC.org
(860) 439-1573
Mr. Robert J. Brule
First Selectman
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Dear Mr. Brule,
lam writing to ask the Town of Waterford to join its southeastern Connecticut neighboring
towns in continuing to support the New London Homeless Hospitality Center. The work of the
New London Homeless Hospitality Center (NLHHC) provides an essential service to the
Waterford community, and as such we request funding from the Town of Waterford in the
amount of $7,500.
The New London Homeless Hospitality Center is in the thick of the affordable and available
housing crisis here in southeast Connecticut, offering emergency shelter to the homeless and
facilitating programs to help people avoid homelessness. Despite the many programs we offer
and the continued success we have getting people housed and staying housed, our winter, no-
freeze, no barrier warming center has 10x the number of participants as last winter (Last
winter we hosted approximately 40 individuals in the warming center all winter. This year we
have hosted an average of 40 people PER NIGHT in the winter warming center).
Our emergency shelter is a place of safety and welcome; our respite center also provides care
to individuals facing health crises, including pneumonia, broken bones, and cancer. We help
guests find affordable housing and manage four houses locally that offer extremely low rents.
We collaborate regionally with dozens of public and private programs and agencies to address,
as fully as possible, the underlying causes of homelessness for every individual. Guests receive
personalized support to connect to the help they need, whether it’s a new driver's license,
treatment for an addiction, or preparation for a job interview.

Our shelter beds were used over 10,000 nights by people who identified their last addresses as
from 38 Connecticut towns, including at least 5 individuals who identified Waterford as her or
his last known address in 2021. Over 2,000 people across southeast Connecticut utilized the
Housing Resource Center to tap into resources that would help them avoid becoming
unhoused. We believe that a regional approach makes sense, rather than each town
attempting to provide its own services for people experiencing homelessness. And we believe
that our entrepreneurial approach — based on best practices and the latest research — is the
most effective.
Municipal budgets are extremely tight, but the commitment of our region to help our
neighbors in crisis is so important. Homelessness is not a problem that affects only a single
town or our urban areas. It isa problem for all of us.
if you have any questions or need more information, please don’t hesitate to contact me. In
fact, it would be my pleasure to host you for a tour of our facilities and to meet just some of
the people your support would aid. Thank you for your time and consideration. | know that
you have many difficult choices to make.
Sincerely, fuel
Annah Perch
Development Manager

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Annual Report
July 1, 2021-June 30, 2021
The New London Homeless Hospitality Center does many things, but emergency shelter has
always been our foundation. How we think about emergency shelter, however, has changed
since our founding almost fifteen years ago. In this year’s annual report, we continue to report
on progress measured against specific goals that have guided our work in addressing
homelessness. We also outline some new directions we plan to explore.
This year’s report also shares some of the many ways Covid 19 has forced us to adapt in
order to continue providing essential supports in the safest possible way. With the hard work
of our staff, we have changed how we operate, but we have not missed a single day providing
essential supports to our neighbors experiencing homelessness. We have not done this alone.
Volunteers have continued to serve. Our board of directors has been fully engaged. The City of
New London under the leadership of Mayor Michael Passero and Social Service Director Jeanne
Milstein have been remarkable partners on many fronts. The network of providers that make
up the homeless response system continues to work as a team. Also critical has been support
from Ledge Light Health District, the CT Department of Housing, L+M Hospital, the Community
Health Center and the VNA of SE CT.
PROGRESS TOWARD CORE GOALS
I. FROM HOMELESSNESS TO SAFETY
Homelessness is a crisis. People need someone to talk with—quickly. People need help
figuring out steps they can take to address the crisis they are experiencing. People need to be
able to get a shelter bed if they have no other options.
When we began, people facing homelessness had to call from shelter to shelter, usually
being told the shelter was full. Today, all of Connecticut has a coordinated access system that
allows people to call 211 and be linked immediately to a face-to-face meeting to discuss their
situation. For individuals in our region, most of these initial appointments take place at NLHHC.
When we started, people faced long waiting lists for shelter entry, leaving many of our
neighbors outside while they waited for a shelter bed. Today, our system works more
effectively allowing us to offer much quicker access to life-saving supports.
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A. Quick access to help
Goal: People facing homelessness should have rapid access to a person who can discuss their
situation and provide information on services available.
Actual: Individuals facing homelessness in our region were able to access an appointment to
discuss their options in addressing their housing crisis within 2 days of their call to 211.
In the past fiscal year, we continued same day “emergency” appointments seven days a week:
a person who would otherwise be unsheltered that night was able to talk with an HHC staff
member that same day.
Our “front door” has stayed open this whole year though we have needed to adapt to the
Covid-19 crisis in a variety of ways. We are using virtual tools where possible. Most initial
appointments are now completed over the phone. Our CAN (Coordinated Access Network)
assessment staff have been trained in conducting health screenings and linking people to
appropriate quarantine and isolation options.
B. Diversion when possible
Goal: Our first effort should be to assist people in solving their housing crisis quickly, avoiding
their need for emergency shelter.
Actual: We continue to benefit from expanded diversion staffing with funding from the
federal Community Development Block Grant (CDGB), graciously administered for our region
through the Town of Stonington. Every initial CAN interview included an effective focus on
discussing alternatives to shelter. This effort helped people remain in housing and freed up
shelter beds for people without options. Approximately a quarter of those reporting to their
CAN assessment interview were diverted—that is, helped to find alternative solutions to their
housing crisis.
The effort to find shelter alternatives did not, however, end at the conclusion of the initial
CAN interview. Staff continued to encourage people waiting for shelter admission to explore
possible housing options. This added discussion has paid off, as over 25% of those who
initially felt shelter was their only option resolved their housing challenge and never came
into shelter.
C. Shelter bed when needed
Goal: People facing homelessness should have quick access to safe and well managed
emergency shelter if they need it.

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Actual: Vulnerable people in need of shelter were admitted immediately. Our shelter wait list
rarely required people without other options to wait more than a few days to get access. A
total of 283 different individuals were enrolled in our regular emergency shelter. In addition,
during the cold weather, HHC operated a winter warming center to assure that people
waiting for regular shelter had at least a warm place to be at night.
The Covid-19 crisis presented multiple challenges to achieving our goal of quick access to safe
shelter for all who need it. In March of 2020, we reconfigured our shelter layout to achieve
the social distancing required to control virus spread. Later in 2020 we had to further reduce
capacity by eliminating upper bunk beds that were proving increasingly unworkable for our
shelter population which has been trending older and with more physical limitations. Overall,
our bed capacity has been reduced by about 40% below our pre-Covid levels. Even with
fewer beds, however, we continue to meet the demand for shelter by helping people exit
shelter more quickly for housing. Shorter shelter stays means that each bed can serve more
people over the course of a year.
As the Covid crisis accelerated the Department of Mental Health and Addiction Services asked
us to open a Covid isolation site in Norwich. The site allowed us to provide isolation options
for a variety of treatment and residential programs across the state. As cases declined, we
were able to close the Norwich site, but we continue to have an organized isolation capacity
for any positive cases we encounter in our shelter.
In total, approximately 400 people accessed a shelter option through HHC during the last
fiscal year.
D. Fewer barriers to shelter use
Goal: Shelter needs to be organized to provide people facing multiple challenges, particularly
substance use disorders and mental health challenges, with the opportunity to use shelter
successfully. To operate safely and effectively the shelter must set behavioral expectations.
Staff must strive, however, to implement these expectations with flexibility and skill, so as to
minimize the number of people who need to be excluded from shelter involuntarily.
Actual: Overall, negative exits declined to 4%. Half of this 4% was related to guests with
income who would not agree to save a portion of this income toward future housing costs.
E. Treatment when requested
Goal: Individuals who seek assistance in addressing substance use disorders should have
access to recovery supports that complement rehousing efforts.
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|| Lit, Homeless
| Hospitality Center
Actual: Shelter staff worked closely with Recovery Navigators, treatment programs and
community-based options to help people link to recovery support. Last fiscal year we assisted
66 individuals to find intensive treatment options.
I, FROM SHELTER TO HOUSING
When we started, HHC provided only a place to sleep. Early on, however, we saw that
housing, not just emergency shelter, is the ultimate answer to homelessness. Today we have a
robust program of housing location support and short-term rental assistance that helps people
get back to housing more quickly. Someone who gets a job or has some income can now get
into housing right away, without having to wait weeks or even months to save enough for a
security deposit and first month’s rent. These supports are dramatically shortening the amount
of time people spend in shelter and allowing them to get back to their jobs and community
more quickly.
A. Shorter shelter stays
Goal: Shelter is a lifesaving resource but should be like a trampoline: helping people bounce
back to housing as soon as possible. Shorter shelter stays are better for our guests and also
free up capacity to serve new people in need. Our goal is to reduce the average length of stay in
shelter to 30 days by helping people exit more quickly for housing.
Actual: Our average shelter stay was about 38 days (compared to a statewide average of 138
days). We continue to work to achieve our target of 30-day average length of stay.
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B. More exits to housing
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Goal: With the right supports, many people can reconnect to housing quickly. HHC housing
location staff help people find vacancies, and our shelter staff help guests address other issues
that stand in the way of housing.
Actual: Housing is the answer to homelessness. NLHHC continued to make progress in
maximizing entries to housing, beginning with the CAN appointment and continuing through
shelter enrollment. Sixty-eight percent of NLHHC shelter exits were to permanent housing
compared with a statewide average of 46%. Housing placements were also achieved in the
diversion process and through outreach efforts to people who were unsheltered.
C. Greater housing stability
Goal: While housing is the start, keeping housing is the longer-term goal. Short-term rental
assistance (security deposits and help paying rent) is a critical resource to allow very lowincome
people to stabilize in housing. With the onset of the Covid crisis, the CARES act provided new
resources for housing assistance.
Actual: We began using new CARES Act resources to invest heavily in increasing our housing
capacity at the end of 2019-20 and this effort continue into the 2020-21 fiscal year. A key focus
has been on building relationships with local landlords. As these relationships brought housing
leads, we developed the infrastructure to process rental assistance requests and meet multiple
documentation requirements from different new funding sources.
In the 2020-21 fiscal year HHC processed over $800,000 in funding requests (outside HHC’s
budget!) to help in diverting people from homelessness and in providing housing supports for
people exiting shelter. This unprecedented level of investment flowing from Covid related
funding sources far exceeds the resources we have previously had. Hundreds of people have
been helped to secure stable housing demonstrating that, with appropriate investments, we
can bend the curve on homelessness.
In the past fiscal year we also extended our housing support efforts to include people at risk of
homelessness by providing support for people applying for UniteCT. UniteCT is Connecticut’s
roll out of the federal Emergency Rental Assistance (ERA) program to provide help with rent
and utilities for people impacted by Covid. HHC has provided one-on-one support (in person
and over the phone) to thousands of applicants from the shoreline area of New London County.
Given our location in New London, we have had a special ability to assist our neighbors to
access this critical resource.
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i) Hospitality Center
While the City of New London ranks 38" in population in the state, we had the 6" greatest
number of UniteCT cases. We believe our work at HHC contributed to people in New London
and the entire shoreline area getting access to assistance they needed to stay housed.
Top Cities (1.000 cases or more) wr
Hartford ieee A 5.0K
Bridgeport |
New Haven |
Waterbury 7
New Britain |
lew London 7.
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SS
(https://portal.ct.gov/DOH/DOH/Programs/UniteCT)
NEW DIRECTIONS
Improving Housing Affordability, Stability and Access in New
London
For over 15 years the New London Homeless Hospitality Center (NLHHC) has worked to
implement effective responses to the crisis of homelessness. Foundational to this effort is
offering safe, welcoming, low barrier emergency shelter. The solution to homelessness,
however, is quality affordable housing.
In recognition of the central role played by available affordable housing, NLHHC has
supplemented our emergency shelter work with an increasing focus on housing. A major
investment in rapid rehousing strategies (housing location, rental subsidies, and support
services) has dramatically reduced the time it takes people to move from homelessness to
permanent housing. Rapid rehousing has helped hundreds secure housing, has reduced our
shelter length of stay to among the shortest in the state and has allowed New London to avoid
the long waiting lists for shelter experienced in some areas.
In the year ahead we hope to apply the skills we have developed in addressing
homelessness to impact an area that is far too often the precursor to homelessness—people
who are housed but severely rent or cost burdened and struggling to maintain the housing they
have. Our goal is to reach both renters and homeowners with the supports they need before
they find themselves facing serious financial hardship and even homelessness. An additional
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jz, Hospitality Center
focus of our proposal is our desire to play a part in the effort to address historical inequities in
access to home ownership which have so seriously impacted housing options and financial
stability for people of color.
This new phase of our work builds upon (and will further strengthen) our work related
to homelessness. Our connections to the community, knowledge of available resources,
connections to landlords and the availability of our new Housing Resource Center at 727 Bank
Street all position NLHHC to partner with others enter this new phase of improve housing
affordability and options for New London residents.
A. KEY STRATEGIES
1. Add neighborhood focused outreach
While proposed supports would be available to all New London residents, we propose to
add focused outreach to extremely low-income renters and cost burdened homeowners in up
to four designated New London neighborhoods. Few social service interventions have tapped
the power of a neighborhood focus, but growing research indicates that geographically focused
strategies can have significant impact. We believe a commitment to neighborhood outreach
will help reach households with the greatest need, better integrate community assets into the
solutions people develop and achieve not just individual but also collective impacts.
Recent analysis by the Urban Institute has identified specific areas in New London with
the greatest need for housing related supports.
2. Offer flexible, comprehensive, person-centered supports
Many existing social safety net programs offer supports targeted to a very specific
need—such as utility assistance, help with back rent and food banks. These can help but often
address just one aspect of the housing challenge. Households who need help developing a
comprehensive plan and require access to multiple resources are too often left without some
key component needed to address their challenge. Our experience indicates that a radically
person centered and flexible approach to partnering with people to address their housing
challenges can amplify the impact of more narrowly targeted programs into greater change in
people’s lives.
We are seeking to employ a framework that begins with engagement of households at
risk...then moves to collaborating with households to assess root causes/create a plan...and
finally provides robust access to a wide variety of practical supports (including linkage to other
community resources) that people need to make their plan a reality.
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ann,
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Navigation support and access to flexible financial assistance are key components. In
addition to program design, implementation is also key. Our goal is to offer support that is easy
to access, offered in multiple languages and delivered by staff/volunteers reflective of the
community we serve.
Not every household would want or need every support available. Our vision is not so
much a program as a framework and a comprehensive menu of available supports from which
households can chose the components they need. Households could choose to use only a single
support (for example, emergency rental assistance or homebuyer support) or utilize more
comprehensive support with developing a plan and securing multiple needed resources.
Households would also be able to return on multiple occasions as their needs change. The key
is meeting people where they are rather than beginning with a predetermined set of offerings.
3. Establish a HUD sanctioned Housing Counseling Agency (HCA)
NLHHC is working to establish a HUD-Approved Housing Counseling Agency (HCA) to
provide an array of supports that increase housing stability and increase access to home
ownership. Many federal and state programs available to support low- and moderate-income
renters and homeowners also require the support of one-on-one housing counseling by a
certified HUD Housing Counselor. This vital resource is missing from Southeastern Connecticut.
The nearest locations to New London are East Berlin, Hartford, and New Haven placing housing
counseling services out of reach for most New Londoners who experience housing instability.
Establishing a HUD sanctioned HCA requires meeting a significant number of standards.
Staff must become certified housing counsellors which requires a significant level of training.
Managing this training effort is a key part of our first-year work plan. Given the structure of the
certification process, a new proposed HCA also needs to partner with an already approved HCA
during the application process. The Urban League of Southern Connecticut has agreed to work
with us to develop such a partnership.
The expertise and resources that an effective HCA will bring to New London will have a
direct impact on housing stability and provide support for efforts to increase home ownership.
THANK YOU
For more information on our work please visit our website at NLHHC.org where you will find
our financial statements, a list of our board of directors, more information on our services and
information about our donors.
None of this work would be possible without the financial and volunteer support of so many
generous members of our community. We appreciate your help and invite you into ever
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.avoon Homeless
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deeper partnership in the effort to make homelessness rare, brief and non-recurring in our
area. Information about volunteering and donating can be found on our website.
Catherine Zall
Executive Director
NLHHC.org
12/19/21

NEW LONDON HOMELESS
HOSPITALITY CENTER, INC.
FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
TOGETHER WITH
INDEPENDENT AUDITORS’ REPORT,
FEDERAL SINGLE AUDIT REPORTS
AND
STATE SINGLE AUDIT REPORTS
fa, FILIPPETTI &
mig) MMALAGHAN LLC
CERTIFIED PUBLIC ACCOUNTANTS

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
TABLE OF CONTENTS
JUNE 30, 2021
INDEPENDENT AUDITORS’ REPORT
FINANCIAL STATEMENTS
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
FEDERAL SINGLE AUDIT REPORTS
Federal Internal Control and Compliance Reports
Independent Auditors’ Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
Independent Auditors’ Report on Compliance for Each Major Program and
on Internal Control Over Compliance Required by the Uniform Guidance
Schedule of Expenditures of Federal Awards
Schedule of Expenditures of Federal Awards
Note to Schedule of Expenditures of Federal Awards
Schedule of Federal Findings and Questioned Costs
Schedule of the Status of Prior Year Audit Findings
13
15
17
18
19
24

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
TABLE OF CONTENTS (Continued)
JUNE 30, 2021
STATE SINGLE AUDIT REPORTS
State Internal Control and Compliance Reports
Independent Auditors’ Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Independent Auditors’ Report on Compliance for Each Major State Program
and Report on Internal Control Over Compliance Required by the State
Single Audit Act
Schedule of Expenditures of State Financial Assistance
Schedule of Expenditures of State Financial Assistance
Note to Schedule of Expenditures of State Financial Assistance
Schedule of State Findings and Questioned Costs
Summary Schedule of the Status of Prior State Audit Findings
25
27
29
30
3]
36

INDEPENDENT AUDITORS’ REPORT

- | HOYT Richard M. Hoyt, Jr., CPA PFS Jason E. Cote, CPA
/ FILIPPETTI & Paul R. Filippetti, CPA Dipti J. Shah, CPA
mmm) MALAGHAN LLC __ Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
a K. Eli H , CPA Stephanie F. B , CPA
CERTIFIED PUBLIC ACCOUNTANTS —s Sacan K Jones CPA ephanie * eTown
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of
New London Homeless Hospitality Center, Inc.
New London, Connecticut
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of New London Homeless Hospitality Center, Inc.
(the Center), which comprise the statement of financial position as of June 30, 2021, and the related
statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to
the financial statements.
MANAGEMENT?’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to the financial audits contained in the Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
-]-
1041 Poquonnock Road e Groton, CT e 06340 © T: 860-536-9685 F: 860-536-9684 e office@mysticcpa.com

OPINION
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Center as of June 30, 2021, and the changes in its net assets and its cash flows for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
REPORT ON SUMMARIZED COMPARATIVE INFORMATION
We have previously audited the Center’s 2020 financial statements, and we expressed an unmodified
audit opinion on those audited financial statements in our report dated February 25, 2021. In our opinion,
the summarized comparative information presented herein as of and for the year ended June 30, 2020, is
consistent, in all material respects, with the audited financial statements from which it has been derived.
OTHER MATTERS
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The
accompanying schedule of expenditures of federal awards and schedule of expenditures of state financial
assistance, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State
Single Audit Act, respectively, are presented for purposes of additional analysis and are not a required part
of the financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated, in all material
respects, in relation to the financial statements as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENTAL AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued a report dated March 1, 2022 on
our consideration of the Center’s internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Center’s internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the Center’s
internal control over financial reporting and compliance.
Hout, Filiyperts V Malaghan, LIC
Groton, Connecticut
March 1, 2022
at,

FINANCIAL STATEMENTS

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2021
(With Summarized Financial Information for 2020)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Grants receivable
Prepaid expenses
Total current assets
PROPERTY AND EQUIPMENT, net
Total assets
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Current maturities of long-term debt
Accounts payable
Deferred revenue
Accrued expenses
Security deposits
Total current liabilities
OTHER LIABILITIES
Long-term debt, less current maturities
Total other liabilities
Total liabilities
NET ASSETS
Without donor restriction:
Undesignated
Designated as investment in property and equipment, net of related debt
Total net assets without donor restrictions
With donor restrictions
Total net assets
Total liabilities and net assets
2021 2020
1,444,019 987,565
402,434 302,742
55,668 40,741
1,902,121 1,331,048
3,621,490 3,219,926
5,523,611 4,550,974
139,619 101,976
43,177 12,552
296,596 219,232
137,028 135,414
39,165 17,363
655,585 486,537
486,089 703,584
486,089 703,584
1,141,674 1,190,121
1,272,283 819,654
2,995,782 2,414,366
4,268,065 3,234,020
113,872 126,833
4,381,937 3,360,853
5,523,611 4,550,974
The accompanying notes are an integral part of these financial statements.
-3-
fers,

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
(With Summarized Financial Information for 2020)
Without Donor With Donor 2021 2020
Restrictions Restrictions Total Total
REVENUES
Grants and contracts $ 2,310,665 - 2,310,665 $ 1,762,152
Paycheck protection plan loan forgiveness 241,700 - 241,700 -
Contributions 1,146,031 100,000 1,246,031 757,444
Housing program rent 295,366 - 295,366 -
Non cash contributions:
Building rent - - - 13,500
Thrift shop sales - - - 84,357
Other income 12,802 - 12,802 14,174
Net assets released from restrictions 112,961 (112,961) - -
4,119,525 (12,961) 4,106,564 2,631,627
EXPENSES
Program services:
Day and night shelter 928,415 - 928,415 929,683
Thrift shop program - - - 115,334
Housing 1,755,708 - 1,755,708 903,515
Total program services 2,684,123 - 2,684,123 1,948,532
Supporting services:
Management and general 377,454 - 377,454 418,545
Fundraising 23,903 - 23,903 49,839
Total supporting services 401,357 - 401,357 468,384
Total expenses 3,085,480 - 3,085,480 2,416,916
Change in net assets 1,034,045 (12,961) 1,021,084 214,711
NET ASSETS, beginning of year 3,234,020 126,833 3,360,853 3,146,142
NET ASSETS, end of year $ 4,268,065 113,872 4,381,937 $ 3,360,853
The accompanying notes are an integral part of these financial statements.
-4-

Salaries
Payroll taxes and benefits
Total payroll related costs
Occupancy
Guest support
Professional fees
Repairs and maintenance
Supplies
Insurance
Casual labor
Telephone
Housing rent
Interest expense
Travel
Miscellaneous
Office expense and supplies
Staff development
Bank and credit card fees
Vehicle expense
Total expenses before depreciation
Depreciation
Total expenses
NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2021
(With Summarized Financial Information for 2020)
2021
PROGRAM SERVICES SUPPORTING SERVICES
Day and Management
Night and Total Total
Shelter Housing Total General Fundraising Total 2021 2020
$ 587,297 919,477 $ 1,506,774 $ 183,200 13,086 $ 196,286 1,703,060 1,330,259
67,195 107,071 174,266 48,370 3,153 51,523 225,789 177,661
654,492 1,026,548 1,681,040 231,570 16,239 247,809 1,928,849 1,507,920
13,661 92,536 106,197 16,396 - 16,396 122,593 135,451
14,400 174,143 188,543 - - - 188,543 104,007
4,044 105,735 109,779 55,106 - 55,106 164,885 70,311
58,355 63,206 121,561 4,516 - 4,516 126,077 66,892
27,518 38,283 65,801 12,649 - 12,649 78,450 69,065
34,631 3,465 38,096 34,631 - 34,631 72,727 86,172
4,976 54,373 59,349 - - - 59,349 26,500
8,660 30,212 38,872 4,910 - 4,910 43,782 47,904
25,506 78,563 104,069 - - - 104,069 60,050
3,551 14,528 18,079 8,585 - 8,585 26,664 24,568
4,549 20,771 25,320 - - - 25,320 17,569
4,529 15,011 19,540 1,655 - 1,655 21,195 56,257
4,630 1,701 6,331 - 7,664 7,664 13,995 29,301
- 4,170 4,170 3,068 - 3,068 7,238 3,022
- 7 7 311 - 311 318 3,405
~ - - - - - - 4,106
863,502 1,723,252 2,586,754 373,397 23,903 397,300 2,984,054 2,312,500
64,913 32,456 97,369 4,057 - 4,057 101,426 104,416
$ 928,415 $1,755,708 $ 2,684,123 $ 377,454 $ 23,903 $ 401,357 3,085,480 2,416,916
The accompanying notes are an integral part of these financial statements.
-5-
on,

NEW LONDON. HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
(With Summarized Financial Information for 2020)
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets $ 1,021,084 $ 214,711
Adjustments to reconcile the change in net assets to net
cash provided by operating activities:
Depreciation 101,426 104,416
Changes in operating assets and liabilities:
Grants receivable (99,692) (265,043)
Prepaid expenses (14,927) 8,135
Accounts payable 30,625 (3,059)
Accrued expenses 1,614 28,829
Security deposits 21,802 (6,104)
Deferred revenue 77,364 219,232
Net cash provided by operating activities 1,139,296 301,117
CASH FLOWS FROM INVESTING ACTIVITIES
Cash outlay for property and equipment (502,990) (171,684)
Net cash used in investing activities (502,990) (171,684)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt 150,000 375,700
Repayment of long-term debt (329,852) (82,528)
Net cash (used in) provided by financing activities (179,852) 293,172
NET INCREASE IN CASH AND CASH EQUIVALENTS 456,454 422,605
CASH AND CASH EQUIVALENTS, beginning of year 987,565 564,960
CASH AND CASH EQUIVALENTS, end of year $ 1,444,019 $ 987,565
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for interest $ 28,566 $ 27,150
Non cash investing and financing activities:
Land and building acquired through assumption of long-term debt $ 150,000 $ -
The accompanying notes are an integral part of these financial statements.
-6-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1 -
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PURPOSE OF ORGANIZATION
New London Homeless Hospitality Center, Inc. (the Center) was established to provide a
place of hospitality for the homeless. At night, the Center provides a shelter for single adults.
The goal is to provide a place of rest and safety in a setting that is welcoming and dignified.
On an average night, the Center provides a place of safety for about fifty (50) men and
women. During the day, the Center offers a hospitality center where the homeless can find
sanctuary and practical assistance. The hospitality center helps address some of the practical
aspects of being homeless such as getting mail, taking a shower, and finding a place to sit in
cold weather. The hospitality center also works to link people with the resources they need to
return to permanent housing. On an average day, eighty (80) people visit the daytime
hospitality center. The Center also provides a transitional housing program serving those
experiencing homelessness.
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 and disclosures in the financial statements.
Actual results could differ from those estimates.
PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION
The financial statements include certain prior year summarized financial information in total
but not by net asset class. 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 Center’s
financials as of and for the year ended June 30, 2020, from which the summarized
information was derived. Certain reclassifications have been made to the 2020 amounts to
conform with the current year presentation.
NET ASSET CATEGORIES
To ensure observance of limitations and restrictions placed on the use of resources available
to the Center, the accounts of the Center are maintained in the following net asset categories:
Without Donor Restrictions
Net assets without donor restrictions represent available resources other than donor-restricted
contributions.
With Donor Restrictions
Net assets with donor restrictions represent contributions and investment earnings thereon
that are restricted by the donor either as to purpose or as to time of expenditure.
ott
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NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1 -
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
REVENUE AND REVENUE RECOGNITION
Grants and Contracts
A portion of the Center’s revenue is derived from cost-reimbursable federal and state
contracts and grants, which are conditioned upon certain performance requirements and/or the
incurrence of allowable qualifying expenses. Amounts received are recognized as revenue
when the Organization has incurred expenditures in compliance with specific contract or
grant provisions. Amounts received prior to incurring qualifying expenditures are reported as
deferred revenue in the statement of financial position.
Contributions
Contributions are defined as voluntary, nonreciprocal transfers.
Unrestricted and unconditional contributions are recognized as support when received or
pledged, if applicable. The Center recognizes contributions of cash and other assets as support
with donor restrictions if they are received with donor stipulations that limit the use of such
assets. When a restriction expires, that is, when a stipulated time restriction ends or purpose
restriction is accomplished, net assets are reclassified and reported in the statement of
activities as net assets released from restrictions. Contributions received whose use is
contingent on the occurrence of a future event are presented as deferred support until such
conditions are substantially met, at which time they are recognized as support.
Donated Services
The Center recognizes contributions of services received if they create or enhance
nonfinancial assets or require specialized skills and would typically need to be purchased if
not provided by donation. General volunteer services do not meet this criteria for recognition
in the financial statements. However, a substantial number of volunteers have donated
significant amounts of time to the Center’s programs.
Donated Assets
Donated assets, including the usage of assets such as rent are recognized at their estimated
fair market value.
The Center reports gifts of land, buildings, and equipment as unrestricted support. Gifts of
long-lived assets with explicit restrictions that specify how the assets are to be used and gifts
of cash or other assets that must be used to acquire long-lived assets are reported as restricted
support. Absent explicit donor stipulations about how long those long-lived assets must be
maintained, the Center reports expirations of donor restrictions in full when the donated or
acquired long-lived assets are placed in service.
Housing Program Rent
A portion of the Center’s revenue is derived from housing program rent at various properties
owned by the Center. The Center reports the housing program rent from tenants on a monthly
basis.
-8-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1 -
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
CASH EQUIVALENTS
For purposes of the statement of cash flows, the Center defines cash equivalents as liquid
investments with an original maturity of three months or less. The Center had cash
equivalents totaling $443,875 as of June 30, 2021 which consist of money market accounts.
PROPERTY AND EQUIPMENT
Property and equipment acquisitions and improvements thereon that individually exceed
$5,000 are capitalized at cost, if purchased or at market or assessed value on the date of gift or
bequest. Depreciation is provided on a straight-line basis over the estimated useful lives of the
assets as follows:
Building and improvements 20 ~ 40 years
Vehicles 5 years
Furniture, fixtures, and equipment 5— 10 years
Repairs and maintenance are charged to expense as incurred.
INCOME TAXES
The Internal Revenue Service has determined that the Center is exempt from federal income
taxes on exempt function income as a public charity under Section 501(c)(3) of the Internal
Revenue Code. Consequently, no provision for income taxes has been made in the
accompanying financial statements.
The Center did not recognize any liability for uncertain tax positions as defined by accounting
principles generally accepted in the United States of America.
The federal tax return of the Center for the year ended June 30, 2021 is subject to examination
by the IRS, generally for three years after it has been filed.
METHODS USED FOR ALLOCATION OF EXPENSES AMONG FUNCTIONS
The financial statements of the Center report certain categories of expenses that are
attributable to more than one program or supporting function. Therefore, these expenses
require allocation on a reasonable basis that is consistently applied. The expenses that are
allocated include depreciation, office, insurance, and occupancy, which are allocated on a
square footage basis, as well as salaries and benefits, which are allocated on the basis of time
and effort studies.
SUBSEQUENT EVENTS
The Center has performed an evaluation of subsequent events through March 1, 2022, which is
the date the financial statements were available to be issued. There were no subsequent events
that require additional disclosure.
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NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 2 -
NOTE 3 -
NOTE 4-
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
CONCENTRATIONS OF CREDIT RISK
The Center’s financial instruments that are exposed to concentrations of credit risk consist
primarily of cash and cash equivalents and grants receivable. The Center places its cash
deposits in high quality financial institutions and such deposits are fully covered by federal
depository insurance. Grants receivable consist primarily of amounts due under a contract
with state and federal agencies. Based on historical experience, management believes these
receivables represent negligible credit risk. Accordingly, management has not established an
allowance for potential credit losses.
PROPERTY AND EQUIPMENT
A summary of property and equipment is as follows:
Land $ $34,353
Buildings and improvements 3,499,442
Furniture and equipment 90,746
Vehicles 154,91]
4,279,452
Less: accumulated depreciation 657,962
~$_3,621,490_
Depreciation expense for the year ended June 30, 2021 was $101,426.
LINE OF CREDIT
The Center has established a $100,000 line of credit with a local bank. The line of credit bears
interest at prime plus 1.5%. There was no activity with this line of credit during the year ended
June 30, 2021.
-10-

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
LONG-TERM DEBT
A summary of long-term debt follows:
Equity Trust, Inc. mortgage, due December 2021, annual
principal payments of $69,000 and monthly interest on the
unpaid balance at 5.0% $
Eastern Savings Bank mortgage, due September 2028, monthly
payments of $860 including principal and interest at 4.75%
Equity Trust, Inc. mortgage, due May 2024, monthly
payments of $664 including principal and interest at 5.0%
Equity Trust, Inc. mortgage, due July 2021, monthly
payments of $395 including principal and interest at 5.0%
Liberty Bank mortgage, due December 2035, monthly
payments of $1,090 including principal and interest at 4.59%
Equity Trust, Inc. mortgage, due May 2025, monthly
payments of $2,529 including principal and interest at 5.0%
Equity Trust, Inc. mortgage, due May 2023, lump sum principal
payment, and monthly interest on the unpaid balance at 5.0%
Less: current maturities
$486,089
Principal maturities of long-term debt in each of the succeeding years are as follows:
Year ending June 30:
2022 $ 139,619
2023 - 183,314
2024 34,966
2025 107,968
2026 24,398
2027 and thereafter 135,443
“3 625,708"
Interest expense on long term debt was $26,663 for the year ended June 30, 2021.
-ll-
NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
69,181
57,327
51,577
38,698
137,712
121,213
150,000
625,708
139,619
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NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 6 -
NOTE 7 -
NOTE 8 -
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
LIQUIDITY AND AVAILABILITY OF RESOURCES
The following reflects the Center’s financial assets as of the statement of financial position
date, reduced by amounts that are not available for general use due to contractual or donor-
imposed restrictions within one year of the statement of financial position date, Amounts
that are not available also include board designated amounts that could be utilized if the
Board of Trustees approved the use. However, amounts already appropriated from either
the donor-restricted endowment or quasi-endowment for general expenditure within one
year of the statement of financial position date have not been subtracted as unavailable.
Financial assets, at year-end
Cash and cash equivalents $ 1,444,019
Grants receivable 402,434
1,846,453
Less those unavailable for general expenditures within one
year, due to:
Security deposits 39,165
Client custodial accounts 22,265
Contractual or donor-imposed restrictions 113,872
Financial assets available to meet cash needs for
general expenditures within one year $ 1,671,151
NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions are restricted for the following at June 30, 2021:
Time-restricted $ 33,424
Purpose restricted: Housing program 80,448
$ 113,872
Net assets with donor restrictions that were released from donor restrictions during the year
ended June 30, 2021 by satisfying the following restrictions:
Time-restricted $ 50,134
Purpose restricted: Housing program 62,827
$ 112,961
OPERATING LEASES
The Center rents space for housing on a periodic basis as part of its Housing Program.
Rent expense under all these arrangements totaled $104,069 for the year ended June 30, 2021.
-12-

FEDERAL SINGLE AUDIT REPORTS

FEDERAL INTERNAL CONTROL AND
COMPLIANCE REPORTS

HOYT Richard M. Hoyt, Jr.. CPA PFS Jason E. Cote, CPA
|e FILIPPETTI & Paul R. Filippetti, CPA Dipti J. Shah, CPA
HEM, MALAGHAN LLC Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
: = K. Elise vonHousen, CPA Stephanie F. Brown, CPA ~~
CERTIFIED PUBLIC ACCOUNTANTS — Susan K. Jones, CPA
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors of
New London Homeless Hospitality Center, Inc.
New London, Connecticut
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of New London Homele