Board of Finance Budget Hearing Agenda (linked)

FY22
BUDGET REQUEST
NL HOMELESS
HOSPITALITY CENTER


NEW Administrative Office
| Loncon Homeless a
i i New London, CT 06
=| Hospitality Center ew London, CT 06320
Program Office
325 Huntington Street
New London, CT 06320
November 30, 2020 www.NLHHC.org
(860) 439-1573
Mr. Rob Brule
First Selectman
Town of Waterford
15 Rope Ferry Road
Waterford CT 06385
Dear Mr. Brule,
We appreciate the Town of Waterford’s past partnership in supporting the work of the New
London Homeless Hospitality Center (NLHHC). With the help of our federal, state, local and community
partners we were able to provide emergency shelter to over 400 single adults. | am writing to ask for
your continued support of regional services to be provided by the Homeless Hospitality Center in FY22. |
hope that you will be able to provide $5,000 toward this critically important work in your FY22 budget.
Our guests came from all parts of New London County. Determining the town of origin for those
we served is difficult. People often descend slowly into homelessness leaving their town of origin for a
larger city well before they finally reach the stage of being literally homeless and in need of emergency
shelter.
Because Connecticut does not have a county government, financing regional services of any kind
is a challenge. And yet we know that regional services make sense. It would not be effective or practical
to ask each town in our region to provide emergency shelter for its residents experiencing
homelessness. We can provide better and more cost-effective support by centralizing services such as
emergency shelter.
This is what we have done in New London County. But centralization of services can only work if
all the municipalities in our region help support the cost of these services. Over 85% of all the single
adult emergency shelter nights in our region are provided by NLHHC. In addition, every day between 30-
50 people visit our daytime hospitality center to get out of the elements, take a shower, pick up mail or
simply have a place they are welcome to sit.
During the winter we provide a warming center option. We also offer the one-on-one supports
and practical assistance our guests need to rebuild their lives and find permanent housing. We help our
guests address the underlying causes of their homelessness, thereby reducing the likelihood that they
will end up homeless again and in need of services. We are able to help hundreds of those we serve to
quickly return to permanent housing.
Our work has been particularly important and challenging due to the Covid 19 crisis. We have
remained open and worked hard to provide a setting where our neighbors experiencing homelessness
can observe CDC recommended precautions thereby reducing the spread of Covid 19 in our community.
As detailed in the attachment, we have a total of 18 FTE’s supporting our shelter related work at
a total cost of approximately $765,000. State and federal funding provides (about 40%) of the funding
we need for basic shelter operation. We receive $16,250 (about 1% of our shelter budget) from the


an
United Way. Local towns currently cover 4% of our costs. Private funding (foundations, private donors
and L+M Hospital) currently covers the remaining more than half of the cost of offering day and
overnight access to shelter. Every dollar matters and only continued support from so many partners
makes our work possible.
We serve as the primary shelter resource for New London County. Surrounding municipalities
have been supporting us in the work we do.
City of New London ($7,000) Town of Old Lyme ($1,500)
Town of East Lyme ($3,500) Town of Preston ($1,500)
Town of Groton ($7,125) Town of Stonington ($2,500)
Town of Montville ($3,000) Town of Waterford ($5,000)
Town of North Stonington ($1,000) Town of Lisbon ($1,000)
We rely on support from surrounding towns to make this regional resource available to our
neighbors experiencing homelessness. We are hoping for your continued support. | have enclosed both
our total agency budget and a more detailed breakdown of our budget for shelter related activities. An
annual report on our activity last fiscal year and our most recent audit are also attached.
Thank you for considering us for funding in FY22. If you have any questions, need more
information or have special forms you would like us to complete, please don’t hesitate to contact me. |
am also available to attend budget hearings or other forums to provide more information about our
work. I can be reached by cell phone at 860-227-2188 or by email at czall@snet.net.
“Co
Cea |
“Co Director
Enclosures:
FY2020 Annual Shelter Report
Organization budget
Emergency shelter budget


TOWN OF WATERFORD
15 Rope Ferry Road
Waterford, CT 06385
860-442-0553
SOCIAL SERVICES GRANT FUNDING REQUEST
ORGANIZATION NAME: Homeless Hospitality Center
REQUEST DATE (FISCAL YEAR): FY2022
REQUESTED AMOUNT: $5,000
BENEFIT STATEMENT (Describe how these funds will be used)
During the winter we provide a winter cenrter warming option. We offer one on one support
and practical assistance to our guests need to rebuild thier lives. We are able to help hundreds
of those we serve quickly return to permanent housin Our work has been hard during the covid crisis
yet we remained open and were able to contiue our programs. Your grant will help us acheive
these goals and beyond.
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.
Steve Elci 12/20/20:


aa
Signature.
‘Date


New London Homeless Hospitality Center
Shelter Operating Budget (FY 20-21)
(excluding special Covid related costs funded by FEMA and CARES Act funding)
Shelter
Operations Respite
Volunteer Coordinator 13,932
Facilities Manager 8,916
Health Initiatives Manager 52,632
Shelter Manager 54,696
Shelter operations supervisor 41,280
Shelter admin and reporting 39,216
Direct Hourly cost-shelter staff 90,236 11,280
Shelter Support-cleaning, lockers, sup} 30,960
Driving 12,384
weekend coverage 6,605 6,605
winter extra staffing 10,500
Hourly vacation coverage . 28,438
Total Staff 337,163 70,516
Fringe Benefits 53,440 11,177
Health Reimbursement (HSA account) 4,619 966
Equipment Purchase/Replacement 7,875
Insurance 35,000
Loan Amortization (State Pier Road) 10,400
Payments for Guests 5,000
Professional Fees 3,000
Repairs & Maintenance 48,150
Supplies 38,414
Utilities (gas, electric, water) . 30,000
Total Direct Expenses 565,061 90,659
Allocation of shared costs 94,976 15,238
Total Cost 660,037 105,897

c~

New London Homeless Hospitality Center
Approved Budget
Mental Health Waiver (Medicaid)
FY 2020-21
Income
Foundations 265,000
Faith community Gifts 24,000
Individual and Business 350,000
Respite 80,000
Surrounding Towns 21,000
Special Events 25,000
Rental income (SSVF) 12,000
Rental Income (net after write-offs) 248,000
Government Grants 1,288,000
185,000
2,498,000
Expenses
Total Staff 1,444,000
Fringe Benefits 229,000
Health Reimbursement 38,000
Staff Training 9,000
Accounting Fees 30,500
Equipment Purchase/Replacement 22,000
Travel (mileage and gas) 24,000
HUD Rent payments 28,000
Insurance 70,000
Loan amortization (Rental Properties) 45,000
Loan Amortization (State Pier Road) 10,500
Master Lease payments 16,800
Miscellaneous (including Holiday gift) 25,000
Payments for Guests 197,200
Printing/Postage 10,000
Professional Fees 26,000
Property Taxes 
28,000
Repairs & Maintenance 71,500
Supplies 50,000
Telephone 38,000
Utilities (gas, electric, water)
Total Expenses
85,000
2,497,500


TOWN OF WATERFORD
15 Rope Ferry Road
Waterford, CT 06385 ‘
860-442-0553
ORGANIZATION NAME:
Homeless Hospitality Center
REQUEST DATE (FISCAL YEAR}: FY2022
REQUESTED AMOUNT: $5,000
BENEFIT STATEMENT (Describe how these funds will be used)
Over 85% of all the single adult emergency shelter nights in our region are
provided by NLHHC. In addition, every day between 35-50 people visit our
daytime hospitality center to get out of the elements, take a shower, pick up mail
or simply have a place they are welcome to sit. We help our guests address the’.
underlying causes of their homelessness, thereby reducing the likelihood that
they will end up homeless again and in need of services. We are able to help
C hundreds of those we serve to quickly return to permanent housing.
Per Town of Waterford Budget Guidelines: please attach a certified audit report of all funds
appropriated during the jast completed fiscal year to your funding request.
DECLARATION
il, the requester, understand that | amy requesting public funds from the Town of Waterford.
i 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 C } Date |

(—

NEW
\eqj| conpon Homeless
Hospitality Center
December 1, 2020
Town of Waterford
Social Service Grant Funding Request
Administrative Office
730 State Pier Road
Post Office Box 1651
New London, CT 06320
Program Office
325 Huntington Street
New London, CT 06320
www.NLHHC.org
(860) 439-1573
Our FY 2019-20 Audit is still in process. A copy of our FY 2018-19 audit is attached.
As soon as our FY 2019-20 audit is completed, we will forward a copy to your office. To
provide some information on our last fiscal year, attached is a preliminary report of our actual
vs. budget for the fiscal year just ended. This report shows only the results from operations and
does not include the adjustments that are made by our auditors.


New London Homeless Hospitality Center
PRELIMINARY Year End 2019-20
Operations
(including loan payments and excluding captial grants for Friendship Street)
Does not yet include impact of PPP loan forgiveness
July 2019-June 2020
Jul'19-Jun20 Jul'19-Jun20 Actual vs. budget
Actual Budget
Income
Total Medicaid Billing 106,970 123,000 (16,030)
Respite Income 95,120 90,000 5,120
Insurance Proceeds 1,405 - 1,405
Total Rent Activity 219,835 234,000 (14,165)
Faith Community Contrib 20,143 24,000 (3,857)
Government Grants 1,148,580 985,200 163,380
Foundations/Grants 292,530 195,000 97,530
Total Individual/Business 387,764 272,400 115,364
Local government grants 19,725 21,000 (1,275)
Other Income 10,000 6,000 4,000
Rent Reimbursements--HUD 27,168 27,960 (792)
Special Event Donations 22,075 30,000 (7,925)
Thrift Store Sales 78,679 150,000 (71,321)
Thrift Store Truck Income 2,492 - 2,492
Total Income 2,432,487 2,158,560 273,927
Expense
Property Taxes 29,433 25,500 3,933
Empl health reimburse 19,500 30,000 (10,500)
Total Guest Support 94,513 111,600 (17,087)
HUD Rent Payments 28,688 27,900 788
Insurance 74,629 74,400 229
Loan Payments 37,600 37,600 -
Master Lease Payments 16,800 16,800 -
Misc expenses 20,573 19,100 1,473
Equipment. 21,226 10,740 10,486
Total Payroll 1,494,897 1,423,200 71,697
Printing copying and postage 13,322 9,192 4,130
Total Professional fees 50,544 56,940 (6,396)
Total Supplies 58,673 43,200 15,473
Total Property Management 43,336 30,000 13,336
Repairs Maintenance 55,598 31,000 24,598
Rent or Lease of Buildings 27,000 34,500 (7,500)
Staff Development 4,274 9,000 (4,726)
Telephone/Internet 46,476 29,600 16,876
Total Travel Expense 17,316 20,640 (3,324)
HBT Other Expenses 7,743 10,500 (2,757)
Total Utilities 90,289 87,600 2,689
Total Expense 2,252,430 2,139,012 113,418
July 2020-June 2021
Budget
185,000
80,000
248,000
24,000
1,260,000
265,000
350,000
21,000
12,000
28,000
25,000
2,498,000
28,000
38,000
197,200
28,000
70,000
55,500
16,800
25,000
22,000
1,673,000
10,000
56,500
50,000
71,500
9,000
38,000
24,000
85,000
2,497,500
combined


NEW LONDON HOMELESS
HOSPITALITY CENTER, INC.
FINANCIAL STATEMENTS
AS OF JUNE 30, 2019
TOGETHER WITH
INDEPENDENT AUDITORS’ REPORT,
SUPPLEMENTARY INFORMATION
AND
STATE SINGLE AUDIT REPORTS

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
TABLE OF CONTENTS
JUNE 30, 2019
INDEPENDENT AUDITORS’ REPORT
FINANCIAL STATEMENTS
Statement of Financial Position
Statement of Activities
Statement of Functional Expenses
Statement of Cash Flows
Notes to Financial Statements
STATE SINGLE AUDIT REPORTS
State Internal Control and Compliance Reports
Independent Auditors’ Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
Independent Auditors’ Report on Compliance for Each Major State Program and
Report on Internal Control Over Compliance Required by the State Single Audit Act
Schedule of Expenditures of State Financial Assistance
Schedule of Expenditures of State Financial Assistance
Note to Schedule of Expenditures of State Financial Assistance
Schedule of State Findings and Questioned Costs
Schedule of the Status of Prior Year Audit Findings
14
16
18
19
20
22

co
INDEPENDENT AUDITORS’ REPORT

HOYT Richard M. Hoyt, Jr., CPA PFS Jason E. Cote, CPA
FILIPPETTI & Paul R. Filippetti, CPA Dipti J. Shah, CPA
M AL AGH AN LLC Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
ee ~ = K. Elise vonHousen, CPA Stephanie F. Brown, CPA_..
CERTIFIED PUBLIC ACCOUNTANTS Susan K. Jones, CPA C
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of
New London Homeless Hospitality Center, Inc.
New London, Connecticut
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of New London Homeless Hospitality Center, Inc.
(the Center), which comprise the statement of financial position as of June 30, 2019, and the related
statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to
the financial statements.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to the financial audits contained in the Government Auditing
Standards, issued by the Comptroller of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for <
our audit opinion. ~
. -|-
1041 Poquonnock Road e Groton, CT e 06340 ¢ T: 860-536-9685 e F: 860-536-9684 e office@mysticcpa.com

CY
OPINION
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of New London Homeless Hospitality Center, Inc. as of June 30, 2019, and the changes
in its net assets and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
EMPHASIS OF A MATTER
As discussed in Note J, during the year ended June 30, 2019, the Organization adopted Accounting
Standards Update No. 2016-14, Not-For-Profit-Entities (Topic 958); Presentation of Financial
Statements of Not-For-Profit-Entities. Our Opinion is not modified with respect to this matter.
OTHER MATTERS
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The accompanying schedule of expenditures of state financial assistance, as required by the State Single
Audit Act, is presented for purposes of additional analysis and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated, in all material
respects, in relation to the financial statements as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENTAL AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued a report dated December 5,
2019 on our consideration of the Center’s internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the Center’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
Center’s internal control over financial reporting and compliance.
REPORT ON SUMMARIZED COMPARATIVE INFORMATION
We have previously audited New London Homeless Hospitality Center, Inc.’s 2018 financial statements,
and we expressed an unmodified audit opinion on those audited financial statements in our report dated
December 4, 2018. In our opinion, the summarized comparative information presented herein as of and
for the year ended June 30, 2018, is consistent, in all material respects, with the audited financial
statements from which it has been derived.
Hoyt, Filippetti % Malaghan, LLC
Groton, Connecticut
December 5, 2019

FINANCIAL STATEMENTS
(f_\

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2019
(With Summarized Financial Information for 2018)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Grants receivable
Prepaid expenses
Total current assets
PROPERTY AND EQUIPMENT, net
Total assets
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Current maturities of long-term debt
Accounts payable
Deferred revenue
Accrued expenses
Security deposits
Total current liabilities
OTHER LIABILITIES
Long-term debt, less current maturities
Total other liabilities
Total liabilities
NET ASSETS
Without donor restriction:
Undesignated
Designated as investment in property and equipment, net of related debt
Total net assets without donor restrictions
With donor restrictions
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.
-3-
2019 2018
564,960 $ 870,103
37,699 45,365
48,876 32,872
651,535 948,340
3,152,658 2,611,302
3,804,193 $ 3,559,642
89,953 $ 81,807
15,611 78,117
- 78,947
106,585 95,334
23,467 8,900
235,616 343,105
422,435 266,032
422,435 266,032
658,051 609,137
354,180 316,411
2,640,270 2,263,463
2,994,450 2,579,874
151,692 370,631
3,146,142 2,950,505
3,804,193 $ 3,559,642

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
(With Summarized Financial Information for 2018)
Without Donor With Donor 2019 2018
Restrictions Restrictions Total Total
REVENUES
Grants and contracts $ 1,483,101 $ - $ 1,483,101 1,050,687
Contributions 496,389 18,000 514,389 834,617
Non cash contributions:
Building rent 19,625 - 19,625 18,375
Thrift shop sales 139,958 - 139,958 125,303
Other income 11,597 - 11,597 16,422
Net assets released from restrictions 236,939 (236,939) - -
2,387,609 (218,939) 2,168,670 2,045,404
EXPENSES
Program services:
Day and night shelter 711,964 - 711,964 675,764
Thrift shop program 175,117 - 175,117 164,694
Housing 786,122 - 786,122 595,283
Total program services 1,673,203 - 1,673,203 1,435,741
Supporting services:
Management and general 261,452 - 261,452 286,051
Fundraising 38,378 - 38,378 12,625
Total supporting services 299,830 - 299,830 298,676
Total expenses 1,973,033 - 1,973,033 1,734,417
Change in net assets 414,576 (218,939) 195,637 310,987
NET ASSETS, beginning of year 2,579,874 370,631 2,950,505 2,639,518
NET ASSETS, end of year $ 2,994,450 $ 151,692 $ 3,146,142 2,950,505
The accompanying notes are an integral part of these financial statements.
-4.
C

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2019
(With Summarized Financial Information for 2018)
2019
PROGRAM SERVICES SUPPORTING SERVICES
Day and Management
Night Thrift Shop and Total Total
Shelter Program Housing Total General Fundraising Total 2019 2018
Salaries $ 394,926 59,433 446,153 $ 900,512 $ 118,103 31,342 $ 149445 $ 1,049,957 $ 905,941
Payroll taxes and benefits 63,322 9,529 71,536 144,387 18,937 5,024 23,961 168,348 157,346
Total payroll related costs 458,248 68,962 517,689 1,044,899 137,040 36,366 173,406 1,218,305 1,063,287
Supplies 41,672 295 1,741 43,708 12,487 - 12,487 56,195 72,561
Repairs and maintenance 14,287 1,242 8,807 24,336 9,406 ~ 9,406 33,742 31,659
Insurance 16,270 7,000 18,235 41,505 7,000 - 7,000 48,505 27,135
Occupancy 20,037 13,395 65,075 98,507 16,862 - 16,862 115,369 89,862
Rent 16,497 55,750 35,630 107,877 2,048 - 2,048 109,925 91,075
Office expense and supplies 13,294 453 2,204 15,951 11,778 2,012 13,790 29,741 18,743
Casual labor 6,079 10,146 4,190 20,415 257 - 257 20,672 10,959
Professional fees 4,720 533 6,970 12,223 38,418 - 38,418 50,641 54,587
Travel 1,126 - 8,554 9,680 805 - 805 10,485 9,922
Staff development 1,152 - 2,110 3,262 4,832 - 4,832 8,094 8,766
Guest support 30,440 - 47,170 77,610 1,016 - 1,016 78,626 101,583
Vehicle expense 6,775 10,655 1,369 18,799 - - - 18,799 18,645
Telephone 10,438 1,222 15,330 26,990 9,856 - 9,856 36,846 23,790
Interest expense 4,497 - 19,115 23,612 - - - 23,612 17,773
Bank and credit card fees - 3,017 - 3,017 3,179 - 3,179 6,196 3,430
Miscellaneous 7,196 1,145 1,826 10,167 2,322 - 2,322 12,489 11,424
Total expenses before depreciation 652,728 173,815 756,015 1,582,558 257,306 38,378 295,684 1,878,242 1,655,201
Depreciation 59,236 1,302 30,107 90,645 4,146 - 4,146 94,791 79,216
Total expenses $ 711,964 $ 175,117. $ 786,122 $ 1,673,203 $ 261,452 §$ 38,378 $ 299,830 $ 1,973,033 $ 1,734,417
The accompanying notes are an integral part of these financial statements.
-5-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019
(With Summarized Financial Information for 2018)
CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets
Adjustments to reconcile the change in net assets to net
cash provided by operating activities:
Depreciation
Changes in operating assets and liabilities:
Grants receivable
Prepaid expenses
Accounts payable
Accrued expenses
Security deposits
Deferred revenue
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Cash outlay for property and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of capital lease
Repayment of long-term debt
Net cash used in financing activities
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of year
CASH AND CASH EQUIVALENTS, end of year
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for interest
Non cash investing and financing activities:
Land and building acquired through assumption of long-term debt
2019 2018
195,637 $ 310,987
94,791 79,216
7,666 48,765
(16,004) 4,811
(62,506) 69,356
11,251 24,718
14,567 8,900
(78,947) 78,947
166,455 625,700
(451,147) (172,984)
(451,147) (172,984)
- (1,988)
(20,451) (18,380)
(20,451) (20,368)
(305,143) 432,348
870,103 437,755
564,960 $ 870,103
17,809 $ 17,773
185,000 $ -
The accompanying notes are an integral part of these financial statements.
-6-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1-
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PURPOSE OF ORGANIZATION
New London Homeless Hospitality Center, Inc. (the Center) was established to provide a
place of hospitality for the homeless. At night, the Center provides a shelter for single adults.
The goal is to provide a place of rest and safety in a setting that is welcoming and dignified.
On an average night, the Center provides a place of safety for about fifty (50) men and
women. During the day, the Center offers a hospitality center where the homeless can find
sanctuary and practical assistance. The hospitality center helps address some of the practical
aspects of being homeless such as getting mail, taking a shower, and finding a place to sit in
cold weather. The hospitality center also works to link people with the resources they need to
return to permanent housing. On an average day, eighty (80) people visit the daytime
hospitality center. The thrift shop sells donated goods and the proceeds from the shop
contribute to the support the Center’s programs. The Center also provides a transitional
housing program serving those experiencing homelessness.
CHANGE IN ACCOUNTING PRINCIPLE
In August 2016, the Financial Accounting Standards Board issued Accounting Standards
Update (ASU) No. 2016-14, Not-For-Profit-Entities (Topic 958): Presentation of Financial
Statements of Not-For-Profit Entities. The Amendment changes the previous reporting model
for nonprofit organizations and enhances the disclosure requirements. The major changes
include (a) requiring the presentation of only two classes of net assets rather than three, (b)
modifying the presentation of underwater endowment funds and related disclosures, (c)
requiring the use of the placed in service approach to recognize the expirations of restrictions
on gifts used to acquire or construct long-lived assets absent explicit donor stipulations
otherwise, (d) requiring that all nonprofits present an analysis of expenses by function and
nature in either the statement of activities, a separate statement, or in the notes and disclose a
summary of the allocation methods used to allocate costs, (e) requiring the disclosure of
quantitative and qualitative information regarding liquidity and availability of resources, (f)
presenting investment return net of external and direct internal investments expenses and (g)
modifying other financial statement reporting requirements and disclosures intended to
increase the usefulness of nonprofit financial statements. This ASU is effective for annual
periods beginning after December 15, 2017. Management has adopted ASU 2016-14 for the
year ended June 30, 2019. The amendments have been retrospectively applied.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1 -
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION
The financial statements include certain prior year summarized financial information in total
but not by net asset class. Such information does not include sufficient detail to constitute a
presentation in conformity with accounting principles generally accepted in the United States
of America. Accordingly, such information should be read in conjunction with the Center’s
financials as of and for the year ended June 30, 2018, from which the summarized
information was derived. Certain reclassifications have been made to the 2018 amounts to
conform with the current year presentation.
NET ASSET CATEGORIES
To ensure observance of limitations and restrictions placed on the use of resources available
to the Center, the accounts of the Center are maintained in the following net asset categories:
Without Donor Restrictions
Net assets without donor restrictions represent available resources other than donor-restricted
contributions.
With Donor Restrictions
Net assets with donor restrictions represent contributions and investment earnings thereon
that are restricted by the donor either as to purpose or as to time of expenditure.
RECOGNITION OF SUPPORT AND REVENUE
Grants and Contracts
Grants and contracts are generally characterized as exchange transactions in which the
grantor or contractor requires the performance of specific activities.
Entitlement to cost reimbursement grants and contracts is based on the expenditure of funds
in accordance with grant restrictions. Therefore, revenue is recognized to the extent of grant
expenditures. For performance-based grants and contracts, revenue is recognized to the extent
of the performance achieved. Grant receipts in excess of revenue recognized are presented as
deferred revenue.
Contributions
Contributions are defined as voluntary, nonreciprocal transfers.
Unrestricted and unconditional contributions are recognized as support when received or
pledged, if applicable. The Center recognizes contributions of cash and other assets as
support with donor restrictions if they are received with donor stipulations that limit the use
of such assets. When a restriction expires, that is, when a stipulated time restriction ends or
purpose restriction is accomplished, net assets are reclassified and reported in the statement
of activities as net assets released from restrictions. Contributions received whose use is
contingent on the occurrence of a future event are presented as deferred support until such
conditions are substantially met, at which time they are recognized as support.
-8-
{_\

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1-
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
RECOGNITION OF SUPPORT AND REVENUE (Continued)
Donated Services
The Center recognizes contributions of services received if they create or enhance
nonfinancial assets or require specialized skills and would typically need to be purchased if
not provided by donation. General volunteer services do not meet this criteria for recognition
in the financial statements. However, a substantial number of volunteers have donated
significant amounts of time to the Center’s programs.
Donated Assets
Donated assets, including the usage of assets such as rent are recognized at their estimated
fair market value.
The Center reports gifts of land, buildings, and equipment as unrestricted support. Gifts of
long-lived assets with explicit restrictions that specify how the assets are to be used and gifts
of cash or other assets that must be used to acquire long-lived assets are reported as restricted
support. Absent explicit donor stipulations about how long those long-lived assets must be
maintained, the Center reports expirations of donor restrictions in full when the donated or
acquired long-lived assets are placed in service.
CASH EQUIVALENTS
For purposes of the statement of cash flows, the Center defines cash equivalents as liquid
investments with an original maturity of three months or less. The Center had cash
equivalents totaling $256,711 as of June 30, 2019 which consist of a money market account.
PROPERTY AND EQUIPMENT
Property and equipment acquisitions and improvements thereon that individually exceed
$1,000 are capitalized at cost, if purchased or at market or assessed value on the date of gift
or bequest. Depreciation is provided on a straight-line basis over the estimated useful lives of
the assets ds follows:
Building and improvements 20 — 40 years
Vehicles 5 years
Furniture, fixtures and equipment 5 ~— 10 years
Repairs and maintenance are charged to expense as incurred.
SALES TAX
The Center collects Connecticut sales tax from customers on the sale of taxable goods at the
Thrift Shop. The Center remits the entire amount to the state. The Center’s accounting
policy is to exclude the sales tax collected and remitted to the state from revenue and
expenses.

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 1 -
NOTE 2 -
NOTE 3 -
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
INCOME TAXES
The Internal Revenue Service has determined that the Center is exempt from federal income
taxes on exempt function income as a public charity under Section 501(c)(3) of the Internal
Revenue Code. Consequently, no provision for income taxes has been made in the
accompanying financial statements.
The Center did not recognize any liability for uncertain tax positions as defined by
accounting principles generally accepted in the United States of America.
The federal tax return of the Center for the year ended June 30, 2019 is subject to
examination by the IRS, generally for three years after it has been filed.
SUBSEQUENT EVENTS
The Center has performed an evaluation of subsequent events through December 5, 2019,
which is the date the financial statements were available to be issued. There were no
subsequent events that require additional disclosure.
CONCENTRATIONS OF CREDIT RISK
The Center’s financial instruments that are exposed to concentrations of credit risk consist
primarily of cash and cash equivalents and grants receivable. The Center places its cash
deposits in high quality financial institutions and such deposits are fully covered by federal
depository insurance. Grants receivable consist primarily of amounts due under a contract
with a federal agency. Based on historical experience, management believes these receivables
represent negligible credit risk. Accordingly, management has not established an allowance
for potential credit losses.
PROPERTY AND EQUIPMENT
A summary of property and equipment is as follows:
Land $ 468,124
Buildings and improvements 2,890,935
Furniture and equipment 90,746
Vehicles 154,909
3,604,714
Less: accumulated depreciation 452,056
$ 3,152,658
Depreciation expense for the year ended June 30, 2019 was $94,791.
-10-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
(— NOTE 4- LINE OF CREDIT
The Center has established a $100,000 line of credit with a local bank. The line of credit
bears interest at prime plus 1.5%. There was no activity with this line of credit during the year
ended June 30, 2019.
NOTE 5- LONG-TERM DEBT
A summary of long-term debt follows:
Equity Trust, Inc. mortgage, due December 2020, annual
principal payments of $69,000 and monthly interest on the
unpaid balance at 5.0%. $ 185,000
Eastern Savings Bank mortgage, due September 2028, monthly
payments of $860 including principal and interest at 4.75% 71,743
Equity Trust, Inc. mortgage, due May 2024, monthly
payments of $664 including principal and interest at 5.0% 61,413
Equity Trust, Inc. mortgage, due July 2021, monthly
payments of $395 including principal and interest at 5.0% 43,824
C Liberty Bank mortgage, due December 2035, monthly
payments of $1,090 including principal and interest at 4.59% 150,408
512,388
Less: current maturities 89,953
$422,435
Principal maturities of long-term debt in each of the succeeding years are as follows:
Year ending June 30:
2020 $ 89,953
2021 90,979
2022 70,057
2023 24,199
2024 25, 371
2025 and thereafter 211,829
$ 512,388
Interest expense on long term debt was $23,612 for the year ended June 30, 2019.
-ll-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6- LIQUIDITY AND AVAILABILITY OF RESOURCES
The following reflects New London Homeless Hospitality Center’s financial assets as of
the statement of financial position date, reduced by amounts that are not available for
general use due to contractual or donor-imposed restrictions within one year of the
statement of financial position date. Amounts that are not available also include board
designated amounts that could be utilized if the Board of Trustees approved the use.
However, amounts already appropriated from either the donor-restricted endowment or
quasi-endowment for general expenditure within one year of the statement of financial
position date have not been subtracted as unavailable.
Financial assets, at year-end
Cash and cash equivalents $ 564,960
Grants receivable 37,699
602,659
Less those unavailable for general expenditures within
one year, due to:
Security deposits 23,467
Client custodial accounts 21,299
Contractual or donor-imposed restrictions 151,692
Financial assets available to meet cash needs for
general expenditures within one year ¢ 406,201
NOTE7- NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions are restricted for the following at June 30, 2019:
Time-restricted $ 133,692
Purpose restricted:
Housing program 18,000
$ 151,692
Net assets with donor restrictions that were released from donor restrictions during the
year ended June 30, 2019 by satisfying the following restrictions:
Time-restricted $ 50,134
Purpose restricted:
Training and education 5,355
Respite center 153,450
Housing program 28,000
$ 236,939
-12-

NEW LONDON HOMELESS HOSPITALITY CENTER, INC.
NOTE 8 -
NOTE 9-
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
OPERATING LEASES
The Center leases the space for its Thrift Store Program under a month to month operating
lease. The monthly lease amount is $4,000 plus utilities.
The Center also rents space for housing on a periodic basis as part of its Housing Program.
Rent expense under all these arrangements totaled $109,925, which includes $19,625 of
donated rent, for the year ended June 30, 2019.
METHODS USED FOR ALLOCATION OF EXPENSES AMONG FUNCTIONS
The financial statements of The New London Homeless Hospitality Center report certain
categories of expenses that are attributable to more than one program or supporting
function. Therefore, these expense require allocation on a reasonable basis that is
consistently applied. The expenses that are allocated include depreciation and office and
occupancy, which are both allocated on a square footage basis, as well as salaries and
benefits, which are allocated on the basis of time and effort studies.
-13-

STATE SINGLE AUDIT REPORTS

STATE INTERNAL CONTROL AND
COMPLIANCE REPORTS

HOYT Richard M. Hoyt, Jr., CPAPFS Jason E. Cote, CPA
FILIPPETTI & Paul R. Filippetti, CPA Dipti J. Shah, CPA
MALAGH AN LLC Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
oo — ~ K. Elise vonHousen, CPA Stephanie F. Brown, CPA ..
CERTIFIED PUBLIC ACCOUNTANTS Susan K. Jones, CPA <
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors of
New London Homeless Hospitality Center, Inc.
New London, Connecticut
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of New London
Homeless Hospitality Center, Inc. (the Center) which comprise the statement of financial position as of June
30, 2019, and the related statements of activities, functional expenses and cash flows for the year then
ended, and the related notes to the financial statements, and have issued our report thereon dated
December 05, 2019.
INTERNAL CONTROL OVER FINANCIAL REPORTING C
In planning and performing our audit of the financial statements, we considered New London Homeless
Hospitality Center, Inc.’s internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Center’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Center’s internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than material weaknesses, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
-14-
1041 Poquonnock Road e Groton, CT e 06340 T: 860-536-9685 @ F: 860-536-9684 e office@mysticcpa.com

COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the Center’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not provide an opinion on the effectiveness of the Center’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
How, Filigperti Y Malaghan, LLC
Groton, Connecticut
December 5, 2019
-15-

HOYT Richard M. Hoyt, Jr., CPAPFS Jason E. Cote, CPA
FILIPPETT] & Paul R. Filippetti, CPA Dipti J. Shah, CPA
MALAGHAN LEC Terence J. Malaghan, CPA Fiona J. LaFountain, CPA
~ : — - nn K. Elise vonHousen, CPA Stephanie F. Brown, CPA_~.
CERTIFIED PUBLIC ACCOUNTANTS Susan K. Jones, CPA (
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
STATE PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE STATE SINGLE AUDIT ACT
To the Board of Directors of
New London Homeless Hospitality Center, Inc.
New London, Connecticut
REPORT COMPLIANCE FOR EACH MAJOR STATE PROGRAM
We have audited New London Homeless Hospitality Center, Inc.’s (the Center) compliance with the types
of compliance requirements described in the Office of Policy and Management’s Compliance Supplement
that could have a direct and material effect on each of the Center’s major state programs for the year ended
June 30, 2019. New London Homeless Hospitality Center, Inc.’s major state programs are identified in the
summary of auditors’ results section of the accompanying schedule of state findings and questioned costs.
MANAGEMENT?’S RESPONSIBILITY
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to each of its state programs. C ;
AUDITORS’ RESPONSIBILTTY
Our responsibility is to express an opinion on compliance for each of the Center’s major state programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the State Single Audit Act (C.G.S. Sections 4-230 to 4-236).
Those standards and the State Single Audit Act require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to
above that could have a direct and material effect on a major state program occurred. An audit includes
examining, on a test basis, evidence about the Center’s compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major state
program. However, our audit does not provide a legal determination of the Center’s compliance.
OPINION ON EACH MAJOR STATE PROGRAM
In our opinion, the Center complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major state programs for the
year ended June 30, 2019.
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1041 Poquonnock Road e Groton, CT e 06340 ¢ T: 860-536-9685 @ F: 860-536-9684 e office@mysticcpa.com

REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Management of the Center is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the Center’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major state program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion
on compliance for each major state program and to test and report on internal control over compliance in
accordance with the State Single Audit Act, but not for the purpose of expressing an opinion on the
effectiveness of the internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Center’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
state program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a state
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control
over compliance with a type of compliance requirement of a state program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph and was not designed to identify all deficiencies in internal control over compliance that might
be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the State
Single Audit Act. Accordingly, this report is not suitable for any other purpose.
Hout, Filippett ¥ Malaghan, UC
Groton, Connecticut
December 5, 2019
-|7-

SCHEDULE OF EXPENDITURES OF STATE FINANCIAL
ASSISTANCE

po Hospitality Center
Annual Report
Jul