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

TVCCA

TOWN OF WATERFORD
15 Rope Ferry Road
Waterford, CT 06385
860-442-0553
SOCIAL SERVICES GRANT FUNDING REQUEST
ORGANIZATION NAME: Thames Valley Council for Community Action, Inc.
REQUEST DATE (FISCAL YEAR): 2023-2024
REQUESTED AMOUNT: $6,050
BENEFIT STATEMENT (Describe how these funds will be used)
See attached benefit statement
Per Town of Waterford Budget Guidelines: please attach a certified audit report of all funds
appropriated during the last completed fiscal year to your funding request.
DECLARATION
|, the requester, understand that | am requesting public funds from the Town of Waterford.
| declare that this request does not pose any potential conflict with the Town of Waterford
and | will provide any documentation requested by the Town of Waterford to authorize
funding this request or review the appropriateness of the request.
Signature Datia 6/22

@) _ ) Thames Valley Council
C for Community Action, Inc.
ot! = Partnering for Prosperous Communities Since 1960
December 6, 2022
Mr. Robert J. Brule, First Selectman
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Dear Mr. Brule:
Thames Valley Council for Community Action (TVCCA) respectfully submits the following request for
public funding from the Town of Waterford.
Amount of Funding Request: $6,050
On average, TVCCA provides services valued at more than $1.1 million to Waterford residents. Most of
this Waterford allocation is passed on to local businesses in the form of payments to home heating
vendors, landlords, and food markets, creating a major impact on the well-being of low-income
residents and the community at large.
Benefits Statement / Description of Services
As we moved from the pandemic protocols, employment (especially increased wages) is the key to long-
term sustainability. TVCCA provided employment services to 38 Waterford residents - providing them
with the opportunity to complete training in manufacturing and the trades and to receive assistance
with resume writing, interview skills, and developing soft-skills that are not industry specific. As we
move further from the pandemic, we are seeing signs of increased need for mental health services;
housing, and basic needs.
With a recession looming and inflation and rising interests stretching every dollar, more people are
slipping into poverty. This continues to be the greatest challenge in TVCCA’s 57-year history; and while
we cannot foresee the details of its resolution, our staff and our partners continue to provide services
and support for the most vulnerable community members. We continue to offer our services in-person
or remotely — based on client preference.
As the area’s Community Action Agency, TVCCA is currently administering multiple state and federal
contracts to meet many of the basic needs of area residents experiencing rising costs. We continue
implementing programs that will provide equitable resources for community members.
Additionally, following the state’s closure of non-essential businesses, including senior centers through
which many seniors received their main meal of the day, TVCCA’s Senior Nutrition Program stepped up
and began delivering meals to 38% more clients and increased meal production by 40%. Our team has
worked closely with the Waterford Senior Center throughout the pandemic to ensure that Waterford
seniors receive the nutritious meals that they need in order to stay safe in their homes. The Meals on
Wheels service is now more important than ever in keeping seniors safe and out of managed care
facilities.
Administrative Office - One Sylvandale Road, Jewett City, CT 06351 | P: 860.889.1365 F: 860.376.8782
Norwich Office - 401 West Thames Street, Unit 201, Norwich, CT 06360 | P: 860.889.1365 F: 860.885.2738
New London Office - 83 Huntington Street, New London, CT 06320 | P: 860.444.0006 F: 860.444.0059
www.tveca.org

Highlighted Information Requested:
e Number and cost of personnel: TVCCA’s employs 232 full-time and 108 part-time employees.
Personnel costs for salaries and benefits are $15,237,931.
e Number of Waterford residents served: 1,012 — Please see attached Services Rendered Report for
breakdown of all services provided to Waterford.
e United Way Funding: $29,625; approximately 0.08% of our annual operating budget of $35,212,832.
On behalf of our Board and the residents we serve, thank you for this opportunity and | look forward to
working with you in the coming year.
Best regards,
Barbara Crouch
Senior Director, Marketing & Development
Enclosures: Original plus 5 copies of the following — Social Services Grant Funding Request form; statement of
services rendered to the Town of Waterford for the twelve-month period ending September 2022; TVCCA annual
report; TVCCA’s most recent audit; TVCCA municipal funding information
cc: The Honorable Kathleen McCarty
Deborah Monahan, TVCCA CEO
Brian Vanasse, TVCCA CFO

THAMES VALLEY COUNCIL FOR COMMUNITY ACTION, INC,
SERVICES TO THE TOWN OF WATERFORD
10/1/21 - 9/30/22
putacococuensces
Jobs First Employment Services
$12,848.00
Manufacturing Pipeline Initiative
$6,134.00
Workforce Innovation & Opportunity Act (WIOA)
$36,912.00
Head Start
$153,384.00
Little Learners
$189,703.00
Tax Preparation Services (VITA)
43
$74,429.00
Next Steps Supportive Housing Program
$7,563.00
Home Again Project
$3,746.00
Housing Choice Voucher Rental Assistance (Section 8)
$405,650.00
CSBG CARES
10
$24,599.00
CSBG Case Management
72
$24,489.00
SSBG Case Management
11
$4,376.00
Community Resource Coordination
Connecticut Energy Assistance Program
521
$76,947.00
Senior Nutrition Program - Home Delivered
$72,687.00
Senior Nutrition Program - Congregate
$14,960.00
Women, Infants & Children (WIC)
$60,438.00
SENIOR CITIZEN PROGRAMS _
Retired and Senior Volunteer Program - Service Hours to Town
547
$14,878.00
meet

MUNICIPAL DONATIONS TO TVCCA
2022-2023
New London County
DONATION AMOUNT
Bozrah $1,210
East Lyme $1,650
Franklin $2,750
Griswold $3,300
Groton $31,342
Lisbon $1,100
Montville $4,000
New London $29,180
North Stonington $1,250
Norwich $36,500
Old Lyme $660
Salem $1,100
Sprague $1,100
Stonington $10,000
Voluntown $550
Waterford $5,500
Total $131,192

THAMES VALLEY COUNCIL FOR COMMUNITY ACTION, INC.
AND SUBSIDIARY
PRO FORMA OPERATING BUDGET
FOR THE YEARS APRIL 1, 2022 THROUGH MARCH 31, 2023
SUPPORT AND REVENUE
Grants and Contracts:
Federal and State
Local and Other
Contributions:
Noncash
Program and Other Income
Debt Service Paid on Behalf of TVCCA
by the State of Connecticut
Total Support and Revenue
EXPENSES
Salaries and Benefits
Client Assistance
Materials and Supplies
Administrative and General
Contributed good and services
Contractual Services
Repairs and maintenance
Rent and Leasing
Other Expenses
Depreciation and Amortization
Utilities
Insurance
Travel and Transportation
interest
Total Expenses
NOTES:
FY 2023
31,446, 188
547,092
265,902
2,599,846
$353,804
$35,212,832
$14,747,556
13,622,438
808,876
691,573
265,902
2,523,246
886,134
267,379
137,409
569,381
204,958
175,365
124,980
187,635
$35,212,832
FY 2022
24,075,828
646,346
286,150
1,924,369
$385,782
$27,318,475
$13,778,254
8,832,106
556,423
547,927
286,150
806,075
686,190
217,728
307,717
587,993
177,318
226,470
97,367
210,757
$27,318,475
TVCCA has reported and filed consolidated financial reports on this post results
schedule, Timing of revenue streams vary program to program because funding
source levels and project periods vary. We are 89% dependent on governmental
funding. Although we anticipate at least level funding, historically it has proven
unreliable to forecast budgets for future years.
EXHIBIT 6.3

Thames Valley Council for
Community Action, Inc. and Subsidiary
Consolidated Financial Statements, Federal Awards
in Accordance with the Uniform Guidance,
State Financial Assistance in Accordance
with the State Single Audit Act
(With Supplementary Information)
and Independent Auditor's Reports
March 31, 2022 and 2021
CohnReznick¢/)
ADVISORY * ASSURANCE « TAX

Thames Valley Council for Community Action, Inc. and Subsidiary
Index
Independent Auditor's Report
Consolidated Financial Statements
Consolidated Statements of Financial Position
Consolidated Statements of Activities and Changes in Net Assets
Consolidated Statements of Functional Expenses
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Supplementary information
Schedule 1 - Statement of Financial Position Information
Schedule 2 - Statement of Activities Information
Schedule 3 - Statement of Cash Flows Information
Independent Auditor's 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 Auditor's Report on Compliance for Each Major Federal Program;
Report on Internal Control over Compliance; and Report on the Schedule
of Expenditures of Federal Awards Required by the Uniform Guidance
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Independent Auditor's Report on Compliance for Each Major State Program; Report on
Internal Control over Compliance; and Report on the Schedule of Expenditures of
State Financial Assistance Required by the State Single Audit Act
Schedule of Expenditures of State Financial Assistance
Note to Schedule of Expenditures of State Financial Assistance
Schedule of Findings and Questioned Costs
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”~ CohnReznick LLP CohnReznick@{)
cohnreznick.com ADVISORY » ASSURANCE © TAX
Independent Auditor's Report
To the Board of Trustees
Thames Valley Council for Community Action, Inc. and Subsidiary
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Thames Valley Council for Community
Action, Inc. and Subsidiary, which comprise the consolidated statements of financial position as of
March 31, 2022 and 2021, and the related consolidated statements of activities and changes in net
assets, functional expenses and cash flows for the year then ended, and the related notes to the
consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of Thames Valley Council for Community Action, Inc. and
Subsidiary as of March 31, 2022 and 2021, and the changes in its net assets and its cash flows for the
years then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of Thames Valley Council for
Community Action, Inc. and Subsidiary and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion. The financial statements
of TVCCA Information Systems, LLC were not audited in accordance with Governmental Auditing
Standards.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there
are conditions or events, considered in the aggregate, that raise substantial doubt about Thames Valley
Council for Community Action, Inc. and Subsidiary's ability to continue as a going concern for one year
after the date that the consolidated financial statements are available to be issued.

CohnReznick
Auditor's Responsibility for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the consolidated financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
e Exercise professional judgment and maintain professional skepticism throughout the audit.
e Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to those
risks. Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements.
e Obtain an understanding of internal control relevant to the audit 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 Thames Valley Council for Community Action, Inc. and
Subsidiary's internal control. Accordingly, no such opinion is expressed.
e Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
consolidated financial statements.
e Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about Thames Valley Council for Community Action, Inc. and
Subsidiary's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audits.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements
as a whole. The schedule of expenditures of federal awards and state financial assistance, as required
by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards and the Connecticut State Single Audit Act, and
Schedules 1 through 3 are presented for purposes of additional analysis and are not a required part of
the consolidated 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
consolidated financial statements. The information has been subjected to the auditing procedures
applied in the audit of the consolidated financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the consolidated financial statements or to the consolidated 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 consolidated financial statements as a whole.
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CohnReznick
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 24,
2022, on our consideration of Thames Valley Council for Community Action, Inc. and Subsidiary's
internal control over financial reporting and on 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 Thames Valley
Council for Community Action, Inc. and Subsidiary'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 Thames Valley Council for Community Action, Inc. and Subsidiary's
internal control over financial reporting and compliance.
Hartford, Connecticut
August 24, 2022

Thames Valley Council for Community Action, Inc. and Subsidiary
Consolidated Statements of Financial Position
March 31, 2022 and 2021
Assets
2022 2021
Current assets
Cash and cash equivalents $ 5,501,488 4,018,147
Receivables
Grants and contracts 2,479,140 3,905,331
Other current assets 267,842 435,149
Total current assets 8,248,470 8,358,627
Property, plant and equipment 5,143,880 4,948,006
Other assets
Restricted cash equivalents 122,335 122,322
Total assets $ 13,514,685 13,428,955
Liabilities and Net Assets
Current liabilities
Accounts payable and accrued expenses $ 2,519,809 3,520,302
Current portion of long-term debt 282,988 316,813
Refundable advances 1,474,792 314,427
Total current liabilities 4,277,589 4,151,542
Long-term liabilities
Long-term debt, less current portion 3,503,906 4,271,201
Total liabilities 7,781,495 8,422,743
Commitments and contingencies
Net assets
Without donor restrictions 4,165,016 3,440,376
With donor restrictions 1,568,174 1,565,836
Total net assets 5,733,190 5,006,212
Total liabilities and net assets $ 13,514,685 13,428,955
See Notes to Consolidated Financial Statements.
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Thames Valley Council for Community Action, Inc. and Subsidiary
Consolidated Statement of Activities and Changes in Net Assets
Year Ended March 31, 2022
Net assets Net assets
without donor with donor
restrictions restrictions Total
Support and revenue
Federal and state grants and contracts $ 38,859,377 $ - $ 38,859,377
Local and other grants and contributions 1,019,742 12,576 1,032,318
Program and other income 1,897,346 - 1,897,346
Contributed goods and services 200,850 - 200,850
Debt service paid on behalf of TVCCA
by the State of Connecticut 378,788 - 378,788
Net assets released from restrictions 10,238 (10,238) -
Total support and revenue 42,366,341 2,338 42,368,679
Expenses
Program services
Children services 13,076,223 - 13,076,223
Energy related services 17,974,776 - 17,974,776
Elderly services 3,742,054 - 3,742,054
Employment and training services 1,676,128 - 1,676,128
Housing and shelter services 2,498,243 - 2,498,243
Other community services 966,713 - 966,713
Total program 39,934,137 - 39,934,137
Management and general 1,707,564 - 1,707,564
Total expenses 41,641,701 - 41,641,701
Change in net assets 724,640 2,338 726,978
Net assets, beginning 3,440,376 1,565,836 5,006,212
Net assets, end $ 4,165,016 $ 1,568,174 $ 5,733,190
See Notes to Consolidated Financial Statements.

Thames Valley Council for Community Action, Inc. and Subsidiary
Consolidated Statement of Activities and Changes in Net Assets
Year Ended March 31, 2021
Net assets Net assets
without donor with donor
restrictions restrictions Total
Revenues and support
Federal and state grants and contracts $ 27,202,728 §$ - $ 27,202,728
Local and other grants and contributions 829,577 5,620 835,197
Program and other income 1,203,050 - 1,203,050
Contributed goods and services 162,165 - 162,165
Debt service paid on behalf of TVCCA by
the State of Connecticut 381,961 - 381,961
Net assets released from restrictions 17,871 (17,871) -
Total revenues 29,797,352 (12,251) 29,785,101
Expenses
Program services
Children services 10,963,123 - 10,963,123
Energy related services 8,904,848 - 8,904,848
Elderly services 3,516,975 - 3,516,975
Employment and training services 1,644,553 - 1,644,553
Housing and shelter services 2,389,138 - 2,389,138
Other community services 698,427 - 698,427
Total program 28,117,064 - 28,117,064
Management and general 1,556,928 - 1,556,928
Total expenses 29,673,992 - 29,673,992
Change in net assets 123,360 (12,251) 111,109
Net assets, beginning 3,317,016 1,578,087 4,895,103
Net assets, end $ 3,440,376 $ 1,565,836 $ 5,006,212
See Notes to Consolidated Financial Statements.

Salaries and benefits
Client assistance
Contractual services
Materials and supplies
Depreciation and amortization
Administrative and general
Repairs and maintenance
Contributed goods and services
Other expenses
Interest
Travel and transportation
Utilities
Insurance
Rent and leasing
Allocation of management and
general to program services
See Notes to Consolidated Financial Statements.
Thames Valley Council for Community Action, Inc. and Subsidiary
Consolidated Statement of Functional Expenses
Year Ended March 31, 2022
Supporting
Program services services
Energy- Employment Housing Other Management
Children related Elderly and training and shelter community and
services services Services services services services Total general Total
$ 7,515,456 $ 727,088 $ 1,524,037 $ 1,374,475 $ 887,074 $ 680,840 $ 12,708,970 $ 2,528,961 $ 15,237,931
2,138 16,887,165 657,096 - 934,393 113,078 18,593,870 97,873 18,691,743
2,446,819 - - - 345,117 12,769 2,804,705 131,196 2,935,901
395,270 61,868 173,795 41,634 38,203 20,687 731,457 57,577 789,034
435,381 11,400 39,810 21,550 13,910 10,670 532,721 39,649 572,370
262,009 49,869 93,265 10,170 24,984 22,955 463,252 228,788 692,040
162,486 11,262 74,484 - 12,810 1,702 262,744 369,514 632,258
197,689 - 3,161 - - - 200,850 - 200,850
42,361 77,793 621,835 1,018 60,936 27,637 831,580 112,376 943,956
134,943 - - - - - 134,943 15,937 150,880
40,675 1,592 78,226 766 23,730 3,319 148,308 54,853 203,161
127,092 1,113 52,106 - - - 180,311 22,918 203,229
43,020 1,488 33,000 1,268 2,728 1,851 83,355 93,831 177,186
1,254 7,878 104,484 6,729 9,290 482 130,117 81,045 211,162
1,269,630 136,260 286,755 218,518 145,068 70,723 2,126,954 (2,126,954) -
$ 13,076,223 $ 17,974,776 $ 3,742,054 $ 1,676,128 $ 2,498,243 $ 966,713 $ 39,934,137 $ 1,707,564 $ 41,641,701

Salaries and benefits
Client assistance
Contractual services
Materials and supplies
Depreciation and amortization
Administrative and general
Repairs and maintenance
Contributed goods and services
Other expenses
Interest
Travel and transportation
Utilities
Insurance
Rent and leasing
Allocation of management and
general to program services
Consolidated Statement of Functional Expenses
Year Ended March 31, 2021
Thames Valley Council for Community Action, Inc. and Subsidiary
Supporting
Program services services
Energy-~ Employment Housing Other Management
Children related Elderly and training and shelter community and
services services Services services services services Total general Total
$ 6,875,272 583,225 $ 1,406,136 $ 1,351,625 $ 694,275 $ 416,345 $ 11,326,878 $ 2,618,999 $ 13,945,877
- 7,971,406 931,783 1,000 764,385 129,350 9,797,924 108,914 9,906,838
4,063,302 18,995 - - 616,923 23,544 1,722,764 156,925 1,879,689
356,684 59,011 202,035 28,739 39,196 32,687 718,352 175,452 893,804
448,309 9,990 24,080 23,140 11,890 7,130 524,539 44,841 569,380
170,334 34,750 61,617 9,656 33,338 14,383 324,078 209,490 533,568
236,518 6,902 95,869 - 12,997 2,910 355,196 85,369 440,565
131,392 - 30,773 - - - 162,165 - 162,165
10,985 80,536 309,672 3,804 41,716 3,421 450,134 59,922 510,056
163,081 - - - - - 163,081 40,508 203,589
14,609 188 48,113 506 14,783 3,080 81,279 10,690 91,969
101,735 - 50,554 - - - 152,289 23,582 175,871
47,363 2,086 36,241 1,183 3,426 2,017 92,316 94,143 186,459
11,033 15,210 43,572 6,241 23,005 2,494 101,555 72,607 174,162
1,332,506 122,549 276,530 218,659 133,204 61,066 2,144,514 (2,144,514) -
$ 10,963,123 8,904,848 $ 3,516,975 $ 1,644,553 $ 2,389,138 $ 698,427 $ 28,117,064 $ 1,556,928 $ 29,673,992
See Notes to Consolidated Financial Statements.

Thames Valley Council for Community Action, Inc. and Subsidiary
Consolidated Statements of Cash Flows
Years Ended March 31, 2022 and 2021
Cash flows from operating activities
Changes in net assets
Adjustments to reconcile changes in net assets to
net cash provided by (used in) operating activities
Depreciation
Loss on disposal of asset
Principal reduction on long-term debt
Income from refinancing of debt
Changes in operating assets and liabilities
Grants and contracts receivable
Other current assets
Accounts payable and accrued expenses
Refundable advances
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property plant and equipment
Cash flows from financing activities
Proceeds from issuance of long-term debt
Principal repayments on long-term debt
Net cash (used in) provided by financing activities
Net increase (decrease) in cash, cash equivalents
and restricted cash
Cash, cash equivalents and restricted cash, beginning
Cash, cash equivalents and restricted cash, end
Supplemental disclosure of cash flow information:
Interest paid
Non cash financing transactions
Proceeds from refunding bonds
Payment to refunded bonds escrow agent
On-behalf payments for interest
See Notes to Consolidated Financial Statements.
10
2022 2021
726,978 $ 111,109
572,370 569,380
1,747 -
(185,089) (213,055)
(327,540) -
1,426,191 (2,635,243)
167,307 (141,849)
(1,000,493) 2,129,862
1,160,365 (240,300)
2,541,836 (420,096)
(769,991) (78,709)
- 300,000
(288,491) (63,067)
(288,491) 236,933
1,483,354 (261,872)
4,140,469 4,402,341
5,623,823 $ 4,140,469
93,311 $ 40,497
1,887,460 $ -
(2,215,000) -
108,114 166,267

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
Note 1 - Principles of consolidation
Reporting entity
Thames Valley Council for Community Action, Inc. (the "Council") was established in 1965 as
Southeastern Connecticut's community action agency. The Council provides a wide range of
services to disadvantaged and at-risk clients, including Head Start, daycare, energy assistance,
senior nutrition, housing and shelter services and various others. Support and revenue consists
of federal, state and local government grants, individual, corporate and foundation contributions,
and participant fees received in the operation of certain programs.
The Council's subsidiary, TVCCA information Systems, LLC (the "LLC"), is a limited liability
company organized in October 2007 for the purpose of developing energy and case management
software to other nonprofit organizations. The Council is the sole member of the LLC.
The accompanying consolidated financial statements include the accounts of the Council and the
LLC (collectively referred to as "TVCCA"). All significant intercompany balances and transactions
have been eliminated.
Note 2 - Significant accounting policies
Basis of accounting
The consolidated financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America ("GAAP").
Use of estimates
The preparation of consolidated financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts and disclosures
in the consolidated financial statements. Actual results could differ from those estimates.
Cash equivalents
For purposes of the consolidated statements of cash flows, TVCCA considers all highly liquid
investments with an original maturity of three months or less to be cash equivalents.
Restricted cash
Certain amounts have been deposited into escrow accounts under terms of the CHEFA mortgage
financing. Such funds are restricted for allowable purposes related to repairs and renovations of
CHEFA financed child daycare facilities. The following table provides a reconciliation of cash, cash
equivalents, and restricted cash reported within the consolidated statements of financial position
that summarized the total of such amounts shown in the consolidated statements of cash flows:
2022 2021
Cash and cash equivalents $ 5,501,488 $ 4,018,147
Restricted cash 122,335 122,322
$ 5,623,823 $ _ 4,140,469
Property, plant and equipment
Property, plant and equipment acquisitions and improvements thereon individually exceeding
$5,000 are capitalized at cost and depreciated on a straight-line basis over estimated service lives
ranging from 5 to 30 years. Maintenance and repairs are charged to expense as incurred.
11

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
Funding sources retain a reversionary right to certain property acquired with grant funds. No
significant grant programs ended during the years ended March 31, 2022 or 2021 that would
require disposition of such property in accordance with applicable grant requirements.
Net asset categories
To ensure observance of limitations and restrictions placed on the use of resources available to
TVCCA, the accounts of TVCCA are maintained in the following net asset categories:
Net assets without donor restrictions - Net assets without donor restrictions are available for use
at the discretion of the Board of Trustees and/or management for general operating purposes.
From time to time, the Board of Trustees may designate a portion of these net assets for
specific purposes, which makes them unavailable for use at management's discretion. No
amounts have been designated by the Board of Trustees as of March 31, 2022 and 2021.
Net assets with donor restrictions - Net assets subject to donor- (or certain grantor-) imposed
restrictions are temporary in nature, such as those that will be met by the passage of time or
other events specified by the donor. Other donor-imposed restrictions are perpetual in nature,
where the donor stipulates that resources be maintained in perpetuity.
Revenue recognition
Grants and contracts - TVCCA receives a substantial portion of its revenue from grants and
contracts executed with federal and state agencies. Revenue from grants and contracts with
resource providers such as the government and its agencies, other organizations and private
foundations is accounted for either as exchange transactions or as contributions. When the
resource provider receives commensurate value in return for the resources transferred to TVCCA,
the revenue from the grant or contract is accounted for as an exchange transaction. For purposes
of determining whether a transfer of asset is a contribution or an exchange transaction, TVCCA
deems that the resource provider is not synonymous with the general public, i.e., indirect benefit
received by the public as a result of the assets transferred is not deemed equivalent to
commensurate value received by the resource provider. Moreover, the execution of a resource
provider's mission or the positive sentiment from acting as a donor is not deemed to constitute
commensurate value received by a resource provider. Revenue from grants and contracts that are
accounted for as exchange transactions is based on the expenditure of funds in accordance with
grant and contract restrictions and, therefore, revenue is recognized to the extent of the
attainment of specific performance goals and, as a result, revenue is recognized to the extent of
performance achieved. Cash received in excess of revenue recognized is recorded as deferred
revenue for exchange transactions and refundable advances for contributions.
Contributions - Transactions where the resource provider often receives value indirectly by
providing a societal benefit, although the societal benefit is not considered to be of commensurate
value, are deemed to be contributions. Contributions are classified as either conditional or
unconditional. A conditional contribution is a transaction where TVCCA has to overcome a barrier or
hurdle to be entitled to the resource and the resource provider is released from the obligation to
fund or has the right of return of any advanced funding if TVCCA fails to overcome the barrier.
TVCCA recognizes the contribution revenue upon overcoming the barrier or hurdle. Any funding
received prior to overcoming the barrier is recognized as a refundable advance.
Unconditional contributions are recognized as revenue and receivable when the commitment of a
contribution is received. Conditional and unconditional contributions are recorded as either with
donor restriction or without donor restriction. Contributions are recognized as contributions with
donor restrictions if they are received with donor stipulations that limit the use of the donated asset.
12

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
Contributions received with no donor stipulations are recorded as contributions without donor
restrictions. When a donor restriction expires, that is, when a stipulated time restriction ends or
purpose restriction is accomplished, net assets with donor restrictions are reclassified as net assets
without donor restrictions and are reported in the consolidated statement of activities and changes
in net assets as net assets released from restriction. Donor-restricted contributions whose
restrictions expire during the same fiscal year are recognized as contributions without donor
restrictions.
Contributed services - TVCCA recognizes contributed services if they create or enhance
nonfinancial assets or require specialized skills and would typically be purchased if not provided by
donation. General volunteer services do not meet the criteria for recognition in the consolidated
financial statements. However, a substantial number of volunteers have donated significant
amounts of time to TVCCA's programs.
Program fees - Program service fees consist primarily of daycare and school readiness fees from
program participants in southeast Connecticut. The fees are recognized at a point in time as revenue
when the services are performed. Program service fees received in advance of the applicable
program period are presented as deferred revenue. Payments are due weekly.
The opening and ending balances of customer contract related amounts were as follows as of
March 31, 2022, 2021, and 2020:
2022 2021 2020
Accounts receivable $ 220,597 $ 106,869 $ 77,882
Deferred revenue - - -
Debt service paid on-behalf of TVCCA by the State of Connecticut - As described more fully in
Note 6, the State of Connecticut Office of Early Childhood ("OEC") has agreed to pay a
percentage of the qualifying debt service required by TVCCA's mortgage loan agreements
executed with the State of Connecticut Health and Educational Facilities Authority ("CHEFA").
TVCCA recognizes revenue for debt service paid on-behalf of TVCCA when the amounts are
actually paid by the State of Connecticut.
Income taxes
TVCCA qualifies as an organization under Section 501(c)(3) of the Internal Revenue Code and,
therefore, is exempt from federal and state income taxes on exempt function income. TVCCA's
informational and tax returns for the last three years generally remain open for examination.
The LLC reports all of its activities, including any unrelated business income, on TVCCA's federal
and state informational returns. TVCCA has no unrecognized tax benefits at March 31, 2022 and
2021. TVCCA's federal and state information returns prior to fiscal year 2020 are closed and
management continually evaluates expiring statues of limitations, audits, proposed settlements,
changes in tax law and new authoritative rulings.
If applicable, TVCCA would recognize interest and penalties associated with tax matters as part of
interest expense in the consolidated statement of activities and changes in net assets and include
accrued interest and penalties in accrued expenses in the consolidated statement of financial
position. No provision for unrelated business income taxes was recorded for the years ended March
31, 2022 and 2021.
13

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
Expenses by function
The consolidated financial statements report certain categories of expenses that are attributed to
more than one program or supporting function. Therefore, expenses require allocation on a
reasonable basis that is consistently applied. The expenses that are allocated include occupancy,
depreciation and amortization, which are allocated on a square footage basis, as well as salaries
and wages, benefits, payroll taxes, professional services, office expenses, information technology,
interest, insurance, and other which are allocated on the basis of estimates of time and effort.
Expenses incurred for various education programs are allocated based on classroom size.
Operating measure
TVCCA has defined the change in net assets from operating activities to include all support,
revenue, expenses, and gains and losses, except for gains or losses resulting from unusual or
infrequent transactions.
Subsequent events
Subsequent events were evaluated through August 24, 2022 which is the date the consolidated
financial statements were available to be issued.
Note 3 - Liquidity and availability of resources
The following table reflects TVCCA's financial assets as of March 31, 2022 and 2021, reduced
by amounts not available for general expenditure within one year or have a restricted purpose:
2022 2021
Current assets, excluding nonfinancial assets at year-end
Cash and cash equivalents $ 5,501,488 $ 4,018,147
Grants and contracts receivable 2,479,140 3,905,331
Total financial assets 7,980,628 7,923,478
Adjustments
Less amounts not available to be used within one year
Net assets with program restrictions not expected
to be released within one year (1,568,174) (1,565,836)
Add financing available under revolving line of credit
within one year 400,000 400,000
Total adjustments ; (1,168,174) (1,165,836)
Financial assets available to meet cash needs for general
expenditures within one year $ 6812454 $ 6,757,642
TVCCA's revenues are primarily derived by federal and state grants. TVCCA has a policy to
structure grant drawdowns as its general expenditures, liabilities, and other obligations come due.
In addition, TVCCA maintains a line of credit of $400,000 with a bank that could be drawn upon as
needed during the year to further manage cash flows. Financial assets are considered unavailable
when illiquid or not convertible to cash within one year or because the governing board has set
aside the funds for a specific contingency reserve.
14

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
Note 4 - Concentrations
Concentrations of credit risk
TVCCA's financial instruments that are exposed to concentrations of credit risk consist
primarily of cash and cash equivalents and receivables.
Cash and cash equivalents - TVCCA places its cash and cash equivalents with highly rated
financial institutions, which are continually reviewed by management for financial stability.
Generally, TVCCA's cash and cash equivalents in interest-bearing accounts exceeds financial
depository insurance limits. At March 31, 2022, balances in excess of FDIC insurance were
approximately $4.9 million. However, TVCCA has not experienced any losses in such accounts
and believes that its cash and cash equivalents are not exposed to significant credit risk.
Receivables - Receivables primarily consist of grants and contracts due from a variety of
federal, state and local governments. Based on historical experience, management believes
these receivables represent negligible credit risk. Accordingly, management has not established
an allowance for potential credit losses.
Support and revenue concentrations
TVCCA receives a significant portion of its grants and contracts from the U.S. Department of
Health and Human Services, the State of Connecticut, and certain nonprofit pass-through
agencies. As with all governmental funding, these grants and contracts are subject to reduction
or termination in future years. Any significant reduction in these grants and contracts could have a
negative impact on TVCCA's program services.
Note 5 - Property, plant and equipment
A summary of property, plant and equipment is as follows:
2022 2021
Land $ 212,500 $ 212,500
Buildings and improvemenis 11,118,497 10,472,654
Leasehold improvements 374,483 374,483
Vehicles 678,363 761,831
Appliances 451,404 451,404
Computer equipment 475,731 634,798
Telephone equipment 329,511 329,511
Furniture and fixtures 384,884 377,942
Office equipment 29,404 29,404
14,054,777 13,644,527
Less accumulated depreciation 8,910,897 8,696,521
Net property and equipment $ 5,143,880 $ 4,948,006
Depreciation and amortization expense for property, plant and equipment totaled $572,370 and
$569,380 for the years ended March 31, 2022 and 2021, respectively.
15

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
Note 6 - Debt
A summary of debt is as follows:
March 31, 2022 and 2021
2022 2021
CHEFA mortgage notes payable
Taftville facility 1,157,412 1,465,000
Windham facility 364,980 465,000
Vernon facility 226,070 285,000
New London facility 1,975,000 2,050,000
Other mortgage notes payable 63,432 323,014
3,786,894 4,588,014
Less current portion 282,988 316,813
Long-term portion 3,503,906 4,271,201
CHEFA mortgage notes payable
Taftville facility
In April 2001, TVCCA entered into a Loan Agreement and Open-End Mortgage (collectively the
“Taftville Agreements") with CHEFA to finance the construction of a qualifying child care facility
through CHEFA's sale of $3,865,000 Child Care Facilities Series E Revenue Bonds (the "Series
E Bonds"). TVCCA's share of the Series E Bond proceeds totaled $2,745,000 or 72.3% of total
Series E Bond proceeds. Payments by TVCCA are based on interest costs and principal
payments on 72.3% of the Series E Bonds, amounts required to establish and maintain trust
funds required under the Taftville Agreements, annual fees and certain expenses of CHEFA.
TVCCA also pays the cost of insuring the property and of operation and maintenance. In June
2021 the bonds were refunded resulting a net present value savings of $226,190. Interest is
payable semi-annually 5.0% with principal payable in various installments through July 2031.
Windham facility
In January 2003, TVCCA entered into a Loan Agreement and Open-End Mortgage (collectively
the "Windham Agreements") with CHEFA in connection with the assumption of CHEFA
mortgage financing and acquisition of related real property, consisting of a qualifying child care
facility, previously held by an unrelated entity. The qualifying child care facility acquired was
constructed through CHEFA's sale of Child Care Facilities Series A Revenue Bonds (the "Series
A Bonds"). Payments by TVCCA are based on interest costs and principal payments on the
Series A Bonds, amounts required to establish and maintain trust funds required under the
Windham Agreements, annual fees and certain expenses of CHEFA. TVCCA also pays the cost
of insuring the property and of operation and maintenance. In June 2021 the bonds were
refunded resulting a net present value savings of $64,110. Interest is payable semi-annually at
5.0% with principal payable in various installments through July 2028.
Vernon facility
In January 2003, TVCCA entered into a Loan Agreement and Open-End Mortgage (collectively
the "Vernon Agreements") with CHEFA in connection with the assumption of CHEFA mortgage
financing and acquisition of related real property, consisting of a qualifying child care facility,
previously held by an unrelated entity. The qualifying child care facility acquired was constructed
through CHEFA's sale of Child Care Facilities Series A and B Revenue Bonds (the "Series A
and B Bonds"). Payments by TVCCA are based on interest costs and principal payments on the
16

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
Series A and B Bonds, amounts required to establish and maintain trust funds required under
the Vernon Agreements, annual fees and certain expenses of CHEFA. TVCCA also pays the
cost of insuring the property and of operation and maintenance. In June 2021 the bonds were
refunded resulting a net present value savings of $37,240. Interest is payable semi-annually at
5.0% with principal payable in various installments through July 2028.
New London facility
In October 2008, TVCCA entered into a Loan Agreement and Open-End Mortgage (collectively
the "New London Agreements") with CHEFA to finance the construction of a qualifying child
care facility through CHEFA's sale of $16,875,000 Child Care Facilities Series G Revenue
Bonds (the "Series G Bonds"). TVCCA's share of the Series G Bond proceeds totaled
$2,465,000 or 14.6% of total Series G Bond proceeds. Payments by TVCCA are based on
interest costs and principal payments on 14.6% of the Series G Bonds, amounts required to
establish and maintain trust funds required under the New London Agreements, annual fees
and certain expenses of CHEFA. TVCCA also pays the cost of insuring the property and of
operation and maintenance. Interest is payable semi-annually at rates ranging from 1.5% to
5.0% with principal payable in various installments through July 2038.
CHEFA refinancing
During April 2015, CHEFA refinanced approximately $2.3 million of Child Care Facilities
Series G bonds relating to the New London facility through the issuance of State Supported
Child Care Revenue Bonds, Series 2015 (the "Series 2015 Bonds"). TVCCA's share of the
Series 2015 Bonds totaled $2,465,000 or 7.4% of total Series 2015 Bond proceeds,
resulting in an overall increase in principal owed by TVCCA of $195,000. Payments by TVCCA
are based on interest costs and principal payments on 7.4% of the Series 2015 Bonds,
amounts required to establish and maintain trust funds required under the New London
Agreements, annual fees and certain expenses of CHEFA. TVCCA is also responsible for the
cost of insuring the properties and of operation and maintenance. The refinanced loan requires
interest payable in semi-annual payments at rates ranging from 1.5% to 5.0%, with principal
payable in various installments through July 2038.
During June 2021, CHEFA refinanced approximately $2.2 million of Child Care Facilities bonds
including the Taftville Series E bonds, Windham Series A bonds and Vernon Series A&B bonds
through the issuance of State Supported Childcare Revenue Series 2021 bonds. TVCCA's
share of the Series 2021 bonds is approximately $1.9 million or 14% of the total Series 2021
bond proceeds, resulting in an overall decrease in principal owed by TVCCA of approximately
$300,000. Payments by TVCCA are based on interest costs and principal payments on 14% of
the Series 2021 bonds, amounts required to establish and maintain trust funds required under
the Taftville, Windham, and Vernon agreements, annual fees and certain expenses of CHEFA.
TVCCA is also responsible for the cost of insuring the properties and of operation and
maintenance. The refinanced loans require interest payable in semi-annual payments at 5%,
with principal payable in various installments for the debt maturing throughout the original life of
the bonds.
Each of the CHEFA mortgages provide, among other things, that principal and interest on the
mortgage loans are payable by TVCCA, which is obligated to make such payments so long as
the applicable bonds are outstanding. The underlying collateral of the mortgage loans is the
buildings constructed with bond proceeds. As additional collateral, TVCCA has pledged the gross
receipts of each qualifying child care facility to CHEFA. Additionally, TVCCA is subject to certain
17

Thames Valley Council for Community Action, Inc. and Subsidiary
Notes to Consolidated Financial Statements
March 31, 2022 and 2021
financial and nonfinancial covenants, noncompliance with which may be considered to be an
event of default and could provide CHEFA with the right to demand repayment currently. For
the years ended March 31, 2022 and 2021, TVCCA was in compliance with these covenants.
In connection with the State of Connecticut's school readiness initiative, the State of
Connecticut Office of Early Childhood ("OEC") has agreed to pay a portion of qualifying debt
service payments. The OEC has agreed to pay 91.5% of the qualifying debt service of the Taftville
facility mortgage loan (85.7% prior to the June 2021 refunding), 94.9% of the qualifying debt
service of the Windham facility mortgage loan (90.0% prior to the June 2021 refunding), 85.6% of
the qualifying debt service of the Vernon facility mortgage loan (81.9% prior to the June 2021
refunding), and 77.3% of the qualifying debt service of the New London facility mortgage loan.
Principal and interest payments made by the OEC on behalf of TVCCA totaled $185,089 and
$213,055 for the year ended