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

UNITED
COMMUNITY & FAMILY
SERVICES

a WDUSTRy a
TOWN OF WATERFORD
15 Rope Ferry Road
Waterford, CT 06385
860-442-0553
SOCIAL SERVICES GRANT FUNDING REQUEST
ORGANIZATION NAME: United Community & Family Services
REQUEST DATE (FISCAL YEAR): FY2024
REQUESTED AMOUNT: $8,000
BENEFIT STATEMENT (Describe how these funds will be used)
Many of the people that UCFS serves have nowhere else to turn for the essential professional
healthcare they need and deserve. UCFS provides services regardless of ability to pay, accepts
all insurance types, including Medicaid and Medicare, and provides an income-based sliding
fee scale for low income uninsured and underinsured clients. This amount will be used to
offset the costs of our healtcare programs in the following ways: $2,000 for Dental Services
$2,000 for Primary Care Medical Services, $1,000 for Women's Health Services, and $3,000 for
Behavioral Health Services.
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.
= | ) i j | 12/14/2022
Signature Date

CS UCFS Healthca re Healthcare that begins with you
34 East Town Street
Norwich, Connecticut 06360-3509
telephone (860) 889-2375
fax (860) 889-3450
www.ucfs.org
December 14, 2022
Board of Selectmen
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
Dear Board of Selectmen:
On behalf of Waterford residents in need, United Community and Family Services, Inc. (UCFS) is
requesting that the Town of Waterford include $8,000 in its FY 2023-2024 budget to help subsidize
the services we will provide to Waterford residents.
During the fiscal year ending June 30, 2022, UCFS provided dental, medical, and behavioral health
to 235 unduplicated Waterford residents at a total cost of $397,343. UCFS provided:
e 126 dental visits to 59 Waterford residents at a cost of $34,289
259 primary care medical visits to 112 Waterford residents at a cost of $68,902
17 Women’s Health visits to 11 Waterford residents at a cost of $3,247
1,829 behavioral health visits to 103 Waterford residents at a cost of $282,084
82 adult day center visits to 2 Waterford residents at a cost of $8,821
Based on conservative growth projections, we anticipate the cost to provide services to Waterford
residents to be approximately $409,263 for the fiscal year ending June 30, 2024.
On average, the amount of uncompensated care provided to our clients is 10% of our total costs to
provide these services. Annually we request the cities and towns we serve to assist us in paying for
uncompensated care provided to their residents. For the fiscal year ending June 30, 2024,
Waterford residents’ amount is projected to be $40,926. At this time, we are limiting our request
to $8,000. This amount will be used to subsidize the cost of providing services to the
uninsured/underinsured from Waterford.
a $2,000 for Dental Services
a $2,000 for Primary Care Medical Services
a $1,000 for Women’s Health Services
a $3,000 for Behavioral Health Services
Many of the people that UCFS serves have nowhere else to turn for the essential professional care
‘hey need and deserve. UCFS provides services regardless of ability to pay, accepts all insurance
types, including Medicaid and Medicare, and provides an income-based sliding fee scale for low-

“ncome uninsured and underinsured clients. UCFS was awarded $269,677 from the United Way
‘for FY 2022, which represents <1% of the total agency budget.
UCFS employees 371 staff for a total preliminary FY2024 budget amount of $30,737,710 inclusive
of benefits.
To support our request, you will find the following:
e List of municipalities who support UCFS and the amount of funding they provide
FY24 (preliminary)
FY23 Year to date Actual as compared to budget
FY21 Audit Report
- FY22 Annual Report
Please note that our proposed FY24 budget is only a rough estimate at this stage since the budget
will not be completed until June 2023.
Waterford’s continued support is critical to ensuring that care is available to Waterford residents
who would otherwise be unable to afford its full cost. With Waterford as an ongoing partner, UCFS
will continue to make a positive impact on the lives of your residents in need.
If you require any additional information, please feel free to contact me at (860) 822-4143. Thank
_ you for your past support and your consideration of this request.
“ Sincerely,
Jennifer Granger
President & CEO

~ Detail of FY24 Funding Request
Dental Program:
126 patient visits
Subsidy Requested: $2,000
Medical Program:
259 patient visits
Subsidy Requested: $2,000
Women’s Health Program:
17 patient visits
Subsidy Requested: $1,000
. Behavioral Health Services:
“1,829 sessions of direct professional care
Subsidy Requested: $3,000

United Community & Family Services, Inc.
Financial Statements and
Independent Auditor's Report
June 30, 2021 and 2020
CohnReznick
ADVISORY * ASSURANCE + TAX

United Community & Family Services, Inc.
index
independent Auditor's Report
Financial Statements
Statements of Financial Position
Statements of Activities
Statements of Functional Expenses
Statements of Cash Flows
Notes to Financial Statements
Page
11

CohnReznick LLP CohnReznick@)
cohnreznick.com ADVISORY » ASSURANCE « TAX
Independent Auditor's Report
To the Board of Directors
United Community & Family Services, Inc.
Report on the Financial Statements
We have audited the accompanying financial statements of United Community & Family Services, Inc.,
which comprise the statements of financial position as of June 30, 2021 and 2020, and the related
statements of activities, functional expenses and cash flows for the years 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with 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. 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 auditor's 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 auditor considers 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.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of United Community & Family Services, Inc. as of June 30, 2021 and 2020, 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.

CohnReznick
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 22, 2021, on our consideration of United Community & Family Services, Inc.'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 United Community & Family
Services, Inc.'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 United
Community & Family Services, Inc.'s internal control over financial reporting and compliance.
CodrKeynicK REI
Hartford, Connecticut
December 22, 2021
ere,f \

United Community & Family Services, Inc.
Statements of Financial Position
June 30, 2021 and 2020
Current assets
Cash and cash equivalents
Patient services receivable, net
United Way contribution receivable
Investments - Board designated for capital
Grants receivable
Prepaid expenses
Total current assets
Property and equipment, at cost
Buildings and improvements
Furniture and fixtures
Motor vehicles
Land improvements
Total
Less accumulated depreciation
Total
Land
Construction in progress
Total property and equipment, net
Other assets
Beneficial interest in perpetual trust
Investments - in perpetuity
Investments - restricted for time/purpose
Investments - functioning as an endowment
Total other assets
Total assets
Assets
2021 2020
4,044,435 $ 5,657,283
1,848,231 1,363,554
333,910 334,058
493,326 672,634
588,318 697,898
289,432 501,246
7,597,652 9,226,673
21,591,276 21,568,458
8,274,358 7,042,313
526,647 489,519
70,976 70,976
30,463,257 29,171,266
(16,085,505) (14,735,132)
14,377,752 14,436,134
1,112,499 1,112,499
137,040 913,347
15,627,291 16,461,980
3,683,057 2,907,498
1,213,263 1,213,263
1,056,530 794,397
7,361,177 5,654,643
13,314,027 10,569,801
36,538,970 _$ 36,258,454

United Community & Family Services, Inc.
Statements of Financial Position
June 30, 2021 and 2020
Liabilities and Net Assets
Current liabilities
Accounts payable and other
Accrued expenses
Refundable advances - grants
Current portion of notes payable
Refundable advance - PPP
Current portion of capital lease obligations
Total current liabilities
Long-term liabilities
Notes payable, net of current portion
Capital lease obligations, net of current portion
Total long-term liabilities
Total liabilities
Commitments and contingencies
Net assets
Net assets without donor restrictions
Net assets with donor restrictions
Time/purpose
In perpetuity
Total net assets with donor restrictions
Total net assets
Total liabilities and net assets
See Notes to Financial Statements.
2021 2020
626,444 1,197,053
2,905,856 2,268,385
148,597 1,173,498
329,016 317,630
- 6,339,100
39,427 41,012
4,049,340 11,336,678
3,528,454 3,861,576
24,502 63,928
3,552,956 3,925,504
7,602,296 15,262,182
22,409,730 15,506,346
1,451,889 1,190,430
9,075,055 4,299,496:
6,526,944 9,489,926
28,936,674 20,996,272
$36,538,970 $36,258,454

aan
United Community & Family Services, Inc.
Statements of Activities
Years Ended June 30, 2021 and 2020
Changes in net assets without donor restrictions
Operating revenue and support
Patient service revenue, net of contractual allowances and discounts $
Grants from government and other agencies
Pharmacy revenue
Investment income
Rental income
Other revenue
Realized loss on investments
Special events
Contribution - PPP
Contributions
Net assets released from restrictions
Total operating revenue and support
Expenses
Program services
Support services
Total expenses
Change in net assets without donor restrictions before other income
Other income
Gain on disposal of property and equipment
Unrealized gain on investments
Total other income
Change in net assets without donor restrictions
Changes in net assets with donor restrictions - time/purpose
United Way funding
Investment income
Realized loss on investments
Unrealized gain on investments
Net assets released from restrictions
Change in net assets with donor restrictions - time/purpose
Changes in net assets with donor restrictions - in perpetuity
Change in value of beneficial interest in perpetual trust
Change in net assets with donor restrictions - in perpetuity
Change in net assets
Net assets, beginning
Net assets, end $
2021 2020
19,635,659 $ 20,558,535
13,862,201 11,643,909
1,401,814 1,441,327
221,527 232,715
231,919 226,416
697,550 403,223
(3,661) (55,977)
42,759 6,792
6,339, 100 -
232,337 323,010
42,661,205 34,779,950
336,368 460,734
42,997,573 35,240,684
32,311,825 32,002,986
5,162,127 5,950,485
37,473,952 37,953,471
5,523,621 (2,712,787)
11,500 -
1,368,263 79,723
1,379,763 79,723
6,903,384 (2,633,064)
335,725 335,189
24,788 33,737
(509) (9,724)
237,823 8,180
(336,368) (460,734)
261,459 (93,352)
775,559 (15,922)
775,559 (15,922)
7,940,402 (2,742,338)
20,996,272 23,738,610
28,936,674. $ 20,996,272
See Notes to Financial Statements.

Salaries and wages
Fringe benefits
Total personnel expenses
Contracted serices
Office and medical supplies
Rent and occupancy
Insurance
Utilities
Transportation
Repairs and maintenance
Telephone
Rental and maintenance of equipment
Conferences and training
Advertising
Interest expense
Membership dues
Awards and grants
Special assistance to individuals
Printing and publications
Program expenses
License fees
Allocated occupancy
Provision for uncollectible accounts
Miscellaneous
Total other expenses
Total expenses before depreciation
Depreciation
Total expenses
United Community & Family Services, Inc.
Year Ended June 30, 2021 (With Comparative Totals for 2020)
Statements of Functional Expenses
See Notes to Financial Statements.
Program senices Support senices 2021 2020
Total Management Total
Behavioral Medical ElderCare program and support
health services services senices general Fundraising senices Total Total
$ 13,352,400 $ 6,401,712 $ 916,806 20,670,918 $ 2,719,761 $ - 2,719,761 23,390,679 22,930,454
3,381,712 1,533,268 236,478 5,151,458 161,357 - 161,357 §,312,815 6,070,966
16,734,112 7,934,980 1,153,284 25,822,376 2,881,118 - 2,881,118 28,703,494 29,001,420
365,223 2,140,229 98,066 2,603,518 1,700,192 - 1,700,192 4,303,710 2,598,565
118,753 618,449 112,894 850,096 86,243 - 86,243 936,339 2,149,062
- - - - 258,642 - 258,642 258,642 250,267
3,676 424 46,737 50,837 346,938 - 346,938 397,775 347,570
- - 73,770 73,770 210,266 - 210,266 284,036 286,120
67,331 7,688 33,497 108,516 30,383 : 30,383 138,899 277,268
30 106 5,085 5,221 50,901 - 50,901 56,122 76,246
67,406 10,776 12,044 90,226 231,995 503 232,498 322,724 325,939
5,267 2,753 - 8,020 103,396 - 103,396 111,416 125,790
52,765 4,335 49 57,149 28,912 2 28,914 86,063 125,627
36,030 50,645 9,961 96,636 83,113 - 83,113 179,749 185,107
- - 10,960 10,960 127,769 ~ 127,769 138,729 166,095
14,777 7,988 1,764 24,529 33,202 - 33,202 57,731 39,812
1,508 - - 1,508 29,706 - 29,706 31,214 16,771
23,381 30,913 - 54,294 31 - 31 54,325 53,512
751 542 - 1,293 2,336 - 2,336 3,629 8,595
220 3,775 ~ 3,995 2,653 - 2,653 6,648 3,252
36,569 1,900 700 39,169 1,841 - 1,841 41,010 7,401
710,200 422,589 - 1,132,789 (1,137,756) 4,967 (1,132,789) - -
- - - - - - - - 485,229
3,331 8,404 (1,060) 10,675 (34,202) 15,540 (18,662) (7,987) 69,926
1,507,218 3,311,516 404,467 §,223,201 2,156,561 21,012 2,177,573 7,400,774 7,598,154
18,241,330 11,246,496 1,557,751 31,045,577 5,037,679 21,012 5,058,691 36,104,268 36,599,574
503,028 586,337 176,883 1,266,248 103,436 : 103,436 1,369,684 1,353,897
$ 18,744,358 $ 11,832,833 $ 1,734,634 32,311,825 $ 5,141,115 $ 21,012 5,162,127 37,473,952 37,953,471
a

Salaries and wages
Fringe benefits
Total personnel expenses
Contracted services
Office and medical supplies
Rent and occupancy
Insurance
Utilities
Transportation
Repairs and maintenance
Telephone
Rental and maintenance of equipment
Conferences and training
Advertising
Interest expense
Membership dues
Awards and grants
Special assistance to individuals
Printing and publications
Program expenses
License fees
Allocated occupancy
Provision for uncollectible accounts
Miscellaneous
Total other expenses
Total expenses before depreciation
Depreciation
Total expenses
United Community & Family Services, Inc.
Statement of Functional Expenses
Year Ended June 30, 2020
Program services Support serices 2020
Total Management Total
Behavioral Medical ElderCare program and support
health services sernices services general Fundraising sernices Total
$ 12,899,239 6,531,833 $ 952,956 $ 20,384,028 $ 2,546,426 $ - 2,546,426 $ 22,930,454
3,400,965 1,782,383 287,960 5,471,308 599,658 - 599,658 6,070,966
16,300,204 8,314,216 1,240,916 25,855,336 3,146,084 - 3,146,084 29,001,420
612,234 632,350 97,927 1,342,511 1,256,054 - 1,256,054 2,598,565
143,983 932,249 137,562 4,213,794 935,268 - 935,268 2,149,062
- - - - 250,267 - 250,267 250,267
5,639 250 12,798 18,687 328,883 - 328,883 347,570
- - 78,146 78,146 207,974 - 207,974 286,120
200,695 8,841 44,230 253,766 23,470 32 23,502 277,268
309 644 7,587 8,540 67,706 - 67,706 76,246
66,617 7,774 12,482 86,873 238,773 293 239,066 325,939
2,263 9,195 - 11,458 114,332 - 114,332 125,790
63,889 20,375 (667) 83,597 42,027 3 42,030 125,627
85,043 10,553 3,308 98,904 86,203 - 86,203 185,107
- - 20,843 20,843 145,252 - 145,252 166,095
19,875 14,992 1,639 36,506 3,306 - 3,306 39,812
4,445 40 - 4,485 12,286 - 12,286 16,771
52,731 781 - 53,512 - - - §3,512
3,280 1,922 239 5,441 3,154 - 3,154 8,595
267 - - 267 2,985 - 2,985 3,252
821 4,678 940 6,439 962 - 962 7,401
687,663 393,067 - 1,080,730 (1,085,228) 4,498 (1,080,730) -
266,823 218,406 - 485,229 - - - 485,229
21 (2,670) 1,220 (1,429) 70,911 444 71,355 69,926
2,216,598 2,253,447 418,254 4,888,299 2,704,585 5,270 2,709,855 7,598, 154
18,516,802 10,567,663 1,659,170 30,743,635 5,850,669 5,270 5,855,939 36,599,574
502,616 568,071 188,664 1,259,351 94,546 - 94,546 1,353,897
$ 19,019,418 11,135,734 $ 1,847,834 $ 32,002,986 $ 5,945,215 $ 5,270 §,950,485 $ 37,953,471
See Notes to Financial Statements.

United Community & Family Services, Inc.
. Statements of Cash Flows
_ .Years Ended June 30, 2021 and 2020
Cash flows from operating activities
Change in net assets .
Adjustments to reconcile change in net assets to net
cash used in operating activities
Depreciation
Provision for uncollectible accounts
Realized loss on investments
Unrealized gain on investments
Contribution - PPP
Amortization of deferred financing costs
Gain on disposal of property and equipment
Change in value of beneficial interest in perpetual trust
Changes in operating assets and liabilities
Patient services receivable ~
United Way contribution receivable
Grants receivable
Prepaid expenses
Accounts payable and other
Accrued expenses __
Refundable advances - grants
Net cash used in operating activities
Cash flows from investing activities
Proceeds from sales of investments
Purchases of investments
Purchases of properiy and equipment
Net cash used in investing activities
2021 2020
7,940,402 $ (2,742,338)
1,369,684 1,353,897
- 485,229
4,170 65,701
(1,606,086) (87,903)
(6,339,100) -
1,155 1,155
(11,500) -
(775,559) 15,922
(484,677) (711,904)
148 (2,573)
109,580 842
211,814 (202,876)
(570,609) 117,480
637,471 (255,851)
(1,024,901) 923,876
(538,008) (1,039,343)
716,887 552,970
(904,330) (515,122)
(523,495) (1,247,934)
(710,938) (1,210,086)
rm,

aaf a
United Community & Family Services, Inc.
Statements of Cash Flows
Years Ended June 30, 2021 and 2020
2021 2020
Cash flows from financing activities
Borrowings on line of credit - 550,000
Repayments on line of credit - (550,000)
Repayment on capital lease obligations (41,011) (45,766)
Refundable advance - PPP - 6,339,100
Payments on notes payable (322,891) (392,258)
Net cash (used in) provided by financing activities (363,902) 5,901,076
Net (decrease) increase in cash and cash equivalents . (1,612,848) 3,651,647
Cash and cash equivalents, beginning 5,657,283 2,005,636
Cash and cash equivalents, end $ 4,044,435 $ 5,657,283
Supplemental disclosures of cash flow information
Cash paid for interest $ 138,729 $ 166,095
See Notes to Financial Statements.
10

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
Note 1 - Organization and summary of significant accounting policies
Organization
The mission of United Community & Family Services, Inc. (the "Organization") is "to improve the
health and well-being of the community". The Organization provides comprehensive healthcare
services that strengthen those in need throughout greater southeastern Connecticut.
Accounting pronouncements
The Organization adopted Financial Accounting Standards Board ("FASB") Accounting Standards
Update ("ASU") 2014-09, Revenue from Contracts with Customers. This ASU provides new
revenue recognition guidance that superseded existing revenue recognition guidance. The update, .
as amended, requires the recognition of revenue related to the transfer of goods or services to
customers, which reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services, as well as additional qualitative and quantitative disclosures about ©
revenue. The Organization adopted ASU 2014-09 on July 1, 2020 using the modified retrospective
method of transition. The Organization performed an analysis of revenue streams and transactions
under ASU 2014-09. In particular, for patient service revenue net of contractual allowances and
discounts and for pharmacy revenue, the Organization performed an analysis into the application of
the portfolio approach as a practical expedient to group patient contracts and group pharmacy
contracts with similar characteristics, such that revenue for a given portfolio would not be materially
different than if it were evaluated on a contract-by-contract basis. Upon adoption, the majority of
what was previously classified as provision for uncollectible accounts and presented as reduction to
patient revenue net of contractual allowances and discounts on the statements of activities is now
treated as a price concession that reduces the transaction price, which is reported as net patient
services revenue. The new standard also requires enhanced disclosures related to the
disaggregation of revenue and significant judgments made in measurement and recognition. The
impact of adopting ASU 2014-09 was not material to total revenue without donor restrictions,
change in net assets without donor restrictions, or total net assets.
The Organization adopted ASU 2018-13, Fair Value Measurement (Topic 820). This accounting
standard changes the disclosure requirements for fair value measurement. The Organization
adopted the provisions of ASU 2018-13 on July 1, 2020. There is no effect on net assets in
connection with the implementation of ASU 2018-13.
Basis of presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America. The
Organization reports information regarding its financial position and activities according to the
following net asset categories:
Net assets without donor restrictions - Net assets without donor restrictions represent available
resources other than donor-restricted contributions. Included in net assets without donor
restrictions are funds that may be earmarked for specific purposes by the Board of Directors.
Net assets with donor restrictions - Net assets subject to donor (or certain grantor) imposed
restrictions are temporary in nature, such as 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.
11
Tm

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
Performance indicator
The statements of activities include the change in net assets without donor restrictions before other
income as the performance indicator.
Concentrations of credit risk
The Organization's financial instruments that are exposed to concentrations of credit risk consist
primarily of cash and cash equivalents, patient service revenue and receivables, grants revenue
and receivables and investments.
The Organization maintains cash and cash equivalents in bank accounts which, at times, may
exceed federally insured limits. The Organization has not experienced any losses in such accounts
and believes it is not exposed to any significant credit risk for cash. As of June 30, 2021, the
Organization has approximately $3,800,000 of cash and cash equivalents in excess of the federally
insured limits.
The Organization invests in various debt and equity securities. These investment securities are
exposed to interest rate, market, credit and other risks depending on the nature of the specific
investment. Accordingly, it is at least reasonably possible that these factors will result in changes in
the value of the Organization's investments, which could materially affect amounts reported in the
financial statements. Management is of the opinion that the diversification of its invested assets
among the various asset classes should mitigate the impact of changes in any one class.
Cash equivalents
The Organization considers all highly liquid investments purchased with a maturity of three months
or less to be cash equivalents.
In-kind contributions
In-kind contributions consist primarily of medical supplies and are recorded at the fair value of the
supplies provided. The fair value of those goods as provided by the funding sources is $308,248
and $347,495 for the years ended June 30, 2021 and 2020, respectively, and is recorded as grants
from government and other agencies on the statements of activities, along with a corresponding
charge to office and medical supplies in the accompanying statements of functional expenses.
Income taxes
The Organization is exempt from federal income taxes under the provisions of Internal Revenue
Code Section 501(c)(3). However, certain operations of the Organization may qualify as unrelated
business taxable income and to the extent that these operations generate income, they will be
subject to federal and state taxes.
The Organization has no unrecognized tax benefits at June 30, 2021 and 2020. The Organization's
federal and state information and unrelated business income tax returns prior to fiscal year 2018
are closed and management continually evaluates expiring statutes of limitations, audits, proposed
setilements, changes in tax law and new authoritative rulings.
If the Organization has unrelated business income taxes, they will recognize interest and penalties
associated with uncertain tax positions as part of the income tax provision and include accrued
interest and penalties with the related tax liability in the statements of financial position.
12

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
Perpetual trust
The Organization is one of several income beneficiaries of a perpetual trust. The Organization
regularly receives income distributions from the perpetual trust, the amounts of which are recorded
as contributions in the statements of activities. The income from the perpetual trusts is for general
operations of the Organization and for use of Sheltering Arms. The principal is controlled by a bank
trustee independent of the Organization. The Organization has recorded its proportionate share of
the trust principal as net assets with donor restrictions - in perpetuity. The Organization's estimate
of fair value at each reporting date is based on fair value information received from the trustee.
Trust assets consist of, but are not limited to, cash and cash equivalents, corporate and
government bonds, mutual funds, and equity securities.
Investments
The Organization reports investments at their current fair values and reflects any gains or losses in
the statements of activities. Gains and losses are considered without donor restriction unless
restricted by donor stipulation or law. Nonmonetary investments received as gifts are immediately
sold and recorded at the realized value.
Net patient services revenue and receivables
Patient care service revenue is reported at the amount that reflects the consideration to which the
Organization expects to be entitled in exchange for providing patient care. These amounts are due
from patients, third-party payors (including health insurers and government programs), and others
and includes variable consideration for retroactive revenue adjustments due to settlement of audits,
reviews, and investigations. Generally, the Organization bills the patients and third-party payors
several days after the services are performed. Revenue is recognized as performance obligations
are satisfied.
Performance obligations are determined based on the nature of the services provided by the
Organization. Revenue for performance obligations satisfied over time is recognized based on
actual charges incurred in relation to total expected (or actual) charges. The Organization believes
that this method provides a faithful depiction of the transfer of services over the term of the
performance obligation based on the inputs needed to satisfy the obligation. Generally,
performance obligations satisfied over time relate to patients receiving services in the centers. The
Organization measures the performance obligation from the commencement of an encounter, to the
point when it is no longer required to provide services to that patient, which is generally at the time
of completion of the encounter.
Because all of its performance obligations relate to contracts with a duration of less than one year,
the Organization has elected to apply the optional exemption provided in FASB Accounting
Standards Codification ("ASC") 606-10-50-14a and, therefore, is not required to disclose the
aggregate amount of the transaction price allocated to performance obligations that are unsatisfied
or partially unsatisfied at the end of the reporting period. The Organization's performance
obligations consist primarily of outpatient services that occur within one day of a patient's visit, thus,
there were no unsatisfied or partially unsatisfied performance obligations at the end of the reporting
period.
13

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
The Organization determines the transaction price based on standard charges for goods and
services provided, reduced by contractual adjustments provided to third-party payors, discounts
provided to uninsured patients in accordance with the Organization's policy, and implicit price
concessions provided to uninsured patients. The Organization determines its estimates of
contractual adjustments and discounts based on contractual agreements, its discount policies, and
historical experience. The Organization determines its estimate of implicit price concessions based
on its historical collection experience with this class of patients.
Agreements with third-party payors typically provide for payments at amounts less than established
charges. A summary of the payment arrangements with major third-party payors follows:
Medicare - Outpatient services are paid using prospectively determined rates.
Medicaid - Reimbursements for Medicaid services are generally paid at prospectively
determined rates per visit or per covered member.
Other - Payment agreements with certain commercial insurance carriers, health maintenance
organizations, and preferred provider organizations provide for payment using prospectively
determined rates per visit, discounts from established charges, and prospectively determined
daily rates.
Laws and regulations concerning government programs, including Medicare and Medicaid, are
complex and subject to varying interpretation. As a result of investigations by governmental
agencies, various health care organizations have received requests for information and notices
regarding alleged noncompliance with those laws and regulations, which, in some instances, have
resulted in centers entering into significant settlement agreements. Compliance with such laws and
regulations may also be subject to future government review and interpretation, as well as
significant regulatory action, including fines, penalties, and potential exclusion from the related
programs. There can be no assurance that regulatory authorities will not challenge the
Organization's compliance with these laws and regulations, and it is not possible to determine the
impact (if any) such claims or penalties would have upon the Organization. In addition, the contracts
the Organization has with commercial payors also provide for retroactive audit and review of claims.
Settlements with third-party payors for retroactive adjustments due to audits, reviews, or
investigations are considered variable consideration and are included in the determination of the
estimated transaction price for providing patient care. These settlements are estimated based on
the terms of the payment agreement with the payor, correspondence from the payor, and the
Organization's historical settlement activity, including an assessment to ensure that it is probable
that a significant reversal in the amount of cumulative revenue recognized will not occur when the
uncertainty associated with the retroactive adjustment is subsequently resolved. Estimated
setilements are adjusted in future periods as adjustments become known (that is, new information
becomes available), or as years are settled or are no longer subject to such audits, reviews, and
investigations. Adjustments arising from a change in the transaction price were not significant for
the years ended June 30, 2021 and 2020.
Generally, patients who are covered by third-party payors are responsible for related deductibles
and coinsurance, which vary in amount. The Organization also provides services to uninsured
patients, and offers those uninsured patients a discount, either by policy or law, from standard
charges. The Organization estimates the transaction price for patients with deductibles and
coinsurance and from those who are uninsured based on historical experience and current market
conditions. The initial estimate of the transaction price is determined by reducing the standard
14

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
charge by any contractual adjustments, discounts, and implicit price concessions. Subsequent
changes to the estimate of the transaction price are generally recorded as adjustments to patient
service revenue in the period of the.change. For the years ended June 30, 2021 and 2020, there
was no additional revenue recognized due to changes in its estimates of implicit price concessions,
discounts, and contractual adjustments for performance obligations satisfied in prior years.
Subsequent changes that are determined to be the result of an adverse change in the patient's
ability to pay are recorded as provision for uncollectible accounts.
Consistent with the Organization's mission, care is provided to patients regardless of their ability to
pay. Therefore, the Organization has determined it has provided implicit price concessions to
uninsured patients and patients with other uninsured balances (for example, copays and
deductibles). The implicit price concessions included in estimating the transaction price represent
the difference between amounts billed to patients and the amounts the Organization expects to
collect based on its collection history with those patients.
The Organization is open to all patients, regardless of their ability to pay. In the ordinary course of
business, the Organization renders services to patients who are financially unable to pay for
healthcare. [he Organization provides care to these patients who meet certaln criterla under Its
sliding fee discount policy without charge or at amounts less than the established rates. Charity
care services are computed using a sliding fee scale based on patient income and family size.
The Organization maintains records to identify and monitor the level of sliding fee discount it
provides. For uninsured self-pay patients that do not qualify for charity care, the Organization
recognizes revenue on the basis of its standard rates for services provided or on the basis of
discounted rates, if negotiated or provided by policy. On the basis of historical experience, a
significant portion of the Organization's uninsured patients will be unable or unwilling to pay for the
services provided. Thus, the Organization records an explicit concession to uninsured patients in
the period the services are provided based on historical experience.
Community benefit represents the cost of services for Medicaid, Medicare, and other public patients
for which the Organization is not reimbursed.
Based on the cost of patient services, charity care amounted to approximately $186,000 and
$342,000, respectively, and community benefit amounted to approximately $10,400,000 and
$11,108,000, respectively, for the years ended June 30, 2021 and 2020.
Such amounts determined to qualify as charity care are not reported as revenue.
The Organization has determined that the nature, amount, timing, and uncertainty of revenue and
cash flows are affected by the following factors: payors, geography, service lines, method of
reimbursement, and timing of when revenue is recognized.
The Organization has elected the practical expedient allowed under FASB ASC 606-10-32-18 and
does not adjust the promised amount of consideration from patients and third-party payors for the
effects of a significant financing component due to the Organization's expectation that the period
between the time the service is provided to a patient and the time that the patient or a third-party
payor pays for that service will be one year or less.
15

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
The Organization has applied the practical expedient provided by FASB ASC 340-40-25-4 and all
incremental customer contract acquisition costs are expensed as they are incurred, as the
amortization period of the asset that the Organization otherwise would have recognized is one year
or less in duration.
The beginning and ending patient services receivable balances were as follows as of June 30, 2021
and 2020:
2021 2020 2019
Patient services receivable, net $ 1,848 231 $ 1,363,554 $ 1,136,879
Pharmacy revenue and receivable
The Organization participates in Section 340B of the Public Health Service Act ("PHS Act"),
Limitation on Prices of Drugs Purchased by Covered Entities. Participation in this program allows
the Organization to purchase pharmaceuticals at discounted rates for prescriptions to eligible
patients. Pharmacy revenue is generated through the 340B program that the Organization operates
through its agreements with contracted pharmacies. Under this program, the Organization uses the
contracted pharmacies as its agents for the purpose of operating and providing pharmacy services.
Because all of its performance obligations relate to pharmacy sales contracts with a duration of less
than one year, the Organization has elected to apply the optional exemption provided in FASB ASC
606-10-50-14a and, therefore, is not required to disclose the aggregate amount of the transaction
price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of
the reporting period. The Organization's performance obligations in relation to pharmacy revenue
consist primarily of pharmacy sales that occur as the patient purchases the prescription, thus, there
were no unsatisfied or partially unsatisfied performance obligations at the end of the reporting
period.
The Organization determines the transaction price based on standard charges for prescriptions
provided, reduced by contractual adjustments provided to third party payors, discounts provided to
uninsured patients in accordance with the Organization's policy, and implicit price concessions
provided to uninsured patients. The Organization determines its estimates of contractual
adjustments and discounts based on contractual agreements, its discount policies, and historical
experience. The Organization determines its estimate of implicit price concessions based on its
historical collection experience with this class of patients.
Revenue for performance obligations satisfied at a point in time is generally recognized when goods
are provided to the Organization's pharmacy revenue patients and customers and the Organization
does not believe it is required to provide additional goods or services related to that sale.
16

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
Property and equipment
The Organization capitalizes all expenditures for property and equipment in excess of $5,000.
Purchased property and equipment are carried at cost, less accumulated depreciation. Donated
property and equipment are carried at the approximate fair value at the date of donation.
Depreciation is computed using the straight-line method over the estimated useful lives of the
assets. Estimated lives for financial reporting purposes are as follows:
Asset Estimated lives
Buildings and improvements 5 - 20 years
Furniture and fixtures 2 - 15 years
Motor vehicles ; 4-10 years
Land improvements 3 - 30 years
Expenditures for repairs and maintenance are charged to expense as incurred. For assets sold or
otherwise disposed of, the cost and related accumulated depreciation are removed from the
accounts, and any resulting gain or loss is reflected in the statements of activities.
The Organization reviews its long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. In performing
a review for impairment, the Organization compares the carrying value of the assets with their
estimated future undiscounted cash flows. If it is determined that impairment has occurred, the loss
would be recognized during the period. The impairment loss is calculated as the difference between
the asset carrying values and the present value of estimated net cash flows or comparable market
values, giving consideration to recent operating performance and pricing trends. The Organization
does not believe that any material impairment currently exists related to its long-lived assets.
Capital assets (personal property) purchased with funds received from all state funding agencies
are expensed in the year acquired and are charged to the program benefited. Title to the equipment
remains with the funding agency and the capital assets revert to that agency at the termination of
the program. The amount of equipment purchased and expensed as incurred was $0 and $8,500
for the years ended June 30, 2021 and 2020, respectively.
During the years ended June 30, 2021 and 2020, the Organization incurred costs associated with
various Capital projects. Upon completion, these projects will be placed into service and depreciated
over their applicable estimated useful lives.
Contributions
Transactions where the resource providers often receive 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 the Organization 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 the Organization fails to overcome the barrier. The
Organization recognizes the contribution revenue upon overcoming the barrier or hurdle. Any
funding received prior to overcoming the barrier is recognized as refundable advance.
Unconditional contributions are recognized as revenue and receivable when the commitment to
contribute is received.
17
\
en,

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
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. 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 statement of activities as net assets released from restriction.
Donor-restricted contributions whose conditions and restrictions expire during the same fiscal year
are recognized as contribution without donor restrictions.
Grants and contracts
Revenue from grants and contracts with resource providers such as the government and its
agencies, other organizations and private foundations are accounted for either as exchange
transactions or as contributions. For purposes of determining whether a transfer of asset is a
contribution or an exchange, the Organization 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 granis and contracts that are accounted for as exchange transactions is recognized when
performance obligations have been satisfied. Grants and contracts awarded for the acquisition of
long-lived assets are reported as nonoperating revenue, in the absence of donor stipulations to the
contrary, during the fiscal year in which the assets are acquired. Cash received in excess of
revenue recognized is recorded as refundable advances.
On the other hand, when the resource provider does not receive commensurate value, the
transaction is accounted for as a contribution.
Donated services
Donated services are recognized if the services received (a) create or enhance non-financial assets
or (b) require specialized skills, provided by individuals possessing those skills, and would typically
need to be purchased if not provided by donation. There were no donated services during the years
ended June 30, 2021 and 2020.
Cost settlement
The Organization is subject to cost settlement procedures prescribed by various state agencies. As
of June 30, 2021 and 2020, management has recorded a cost settlement payable of $95,152 and
$416,185, respectively, which is included within accounts payable and other in the accompanying
statements of financial position.
Deferred financing costs
Deferred financing costs, net of accumulated amortization, are reported as a direct deduction from
the face amount of the debt to which such costs relate. Amortization of deferred financing costs is
reported as a component of interest expense and is computed using an imputed interest rate on the
related loan.
18

United Community & Family Services, Inc.
Notes to Financial Statements
June 30, 2021 and 2020
Endowment and spending policies
The Organization has adopted investment and spending policies for endowment assets that attempt
to provide a predictable stream of funding to programs supported by its endowment, while seeking
to maintain the purchasing power of the endowment assets. Endowment assets include those
assets of donor-restricted funds that the Organization must hold in perpetuity as well as board-
designated funds. Under this policy, as approved by the Board of Directors, the endowment assets
are invested in accordance with sound investment practices that emphasize long-term investment
fundamentals. It is recognized that short-term market fluctuations may cause variations in account
performance.
To satisfy its long-term rate of return objectives, the Organization relies on a total return strategy in
which investment returns are achieved through both capital appreciation (realized and unrealized)
and current yield (interest and dividends). The Organization targets a diversified asset allocation
that places a greater emphasis on equity-based investments to achieve its long-term return
objectives within prudent risk constraints.
The Board of Directors approves annual appropriations for distribution. When deciding the
appropriation amount, the Board of Directors considers the long-term expected return on its
endowment in order to maintain the purchasing power of the endowment assets held in perpetuity
or for a specified term, as well as to provide additional real growth through new gifts and investment
return.
Use of estimates
The preparation of financia