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HomeMy WebLinkAboutAttch 2a Axis Community Health~ ~ 12-15-09P03:36 RCVD CITY OF DUBLIN Fiscal Year 2010-2011 ' ~ tm,~.'~a°° , ~ ~ i. , , , ~~ ! ' ~~ I idents f}~/'71~}~? 17E`l~'1~ r~T' .~~. ~ ~ ~ _ CITY OF DUBLIN Fiscal Year 2010-2011 APPLICATION "FOR- FUNDS i. Please select one;expei~'se category: ? Capital ~ operating 2. ApplicantInfor•niation: Organization/:~.gency Name Axis ~~;~mmunit_~ Health 4361 Railrc~i:~ Avenue P1eac~anron, CA 94566 Mailin~* :-~ddress Street Address sa"`- as dk~~v~ City same `as above _ 'S1~U~ _ 'Lip 94566 Sue Compton 9~5 ~'O1 6005. scomptonc~axishealth.org Executive Director/Chairperson Work Ph~~nc - Email Janes ~~xson ~~~~-:734-651(; jamesChacE-n~? .org BoardPresident (if applicable) «r~~~l.`Ph~u~c Email Please list the Primacy Project Contact Persvu wily would be~xble ~o answer questions about this application and projecbprogram dmang the funding period. Carol Beddome' Development Director Contact Person for ProjectlPi-ogram Job Title 925-201-6068 cbeddcel~~axshealth.org 925-417-1503 Work Phone Email Fax Federal Tax Identification No. (required) 9 4- 2 2 3 2 3 9 4 City of Dublin Business License No. (required) "10 8 3 2 a:. ~ L City of Dublin Fiscal Year 2010-2011 Application for Funds 3. Proposed Project/Pro~ram Inf~~rrnation_m~ not describe organization.) Amount of Funds Requested $ ' ~~~"n ~ ~ ~ (Maximum $25,00 prl project. i Proposed ProjecttYrogram°Name: Access to Health Care foi Uninsured Lou:-Income Dublin Families Proposed Project/Progran~ Date(sl: Start ~Ol X10 and;End 06 ~~G X11 nun. d,iv vr. m~,. ~1a~~ ~ r. Please Hole: Cite Council Grant;Fun~l~ ~u~c ~listribu~c~i un a rrir7~hur~~ment.basis. If your ~,«cncy nee~i~ I f)i~% disbursement at the hcginning cif the f~i~~cal fear, please indicate this hcl~~w~an~l provide justification f~~r this need. ? A~ cncY'~~ r~yu~~ting 100°Ie disbur~cment ~~t the bc~~innin~~ ofthe Fiscal Yctir. ~if ~c~le~tin~~ this option, please pro~id~ ju~titir~~ti~~u i~ the blank space b~ 1~~~~. C~ Agencyis r~c~t requesting 100°Io ~lisbur~~emenr at thr heyinning of the Fiscal Year. Rlease pr~>vide the frequency Thal rcimhur~ements will be submitted t~~ she Ci<< iu the blank helr~~~~: c.~., monthly;quar~erl~~, ac project completi~~n. r~r. We will send a bill on a yuarterll~ basis based on the number of Dublin families we enroll izlto publicly supported health plans. ~ . ' , ' ' ~ F - ~ I r, 'i : . ~ I ~ ~i I a, ~ ~ i ' ~ i L City of Dublin Fiscal Year 2010-2011 Application for Funds a. How would the requested funds be used? ¦ Describe, in detail, the PROPOSED-PROTECT/PROGRAM (not the Agency). ¦ Bulleted text is acceptable. ¦ Identify if the proposed project/,program i~ nc~~ Service, or extension of an existing one. ¦ An additional page nri~~ b~ a~i~ird, if needed. Axis is seel~~izg $9,000 in support for its innovative Enrollment and Eligibilit,.r service 'which is making health care available for many low income Dublin families who do not have access to medical services. With your support, we will be able t~ eT,_roll 243 Dubin'residents in publicly supported health insurance"plans which will give them full access to medical care. v?~ ~zr seekinc: support t,, continue a .25FTE Enro~llmert ~~~ecialist posit:icn. icontinued) b. _Ho~~ ~ti~nuld the PROPOSED PRO.JI:LT/YROGlt~1.M addre~~ an u~~niet cummunity need and improve the quality ~~f 1'ite for Dublin residents. Why is phis project/program needed? (Additional~page~may he added, if~ needed r. Liviz~~~ ~raitho~~lt he Atli insura~_c~ forces :people to gc~ without medical ca~~. ~~h`ronic illzi~s:=e ~~o .without. tz~atment. Chi1d-~~r. ~z unimmunized. Minor health issues arr left untreated and become significant~~health issues.-Research has'-found that those whQ are uninsured do not seek health care until they are cri ically"ill. This results in .going to`the emergencli room, where ca=~~ is expensive and hospitals are left with unpaid bills--a cost that is_(continued) e. What-documantation/datalrecords support the need for this PROPOSED PROJECT/PROGRAM? Please-identify„your data sources.,(Additional page may be added, if needed.) - County of Alameda. Uninsured Sur~-~lr, ..September '?001 - The Relationship Between Health Insurance Coverage and Clinical Outcomes Among Women Witri Breast Cancer," New England Journal of Medicine - The Kaiser Commission on Medicaid and the Uninsured, September 2009, The Henry J. Kaiser Family Foundation - California Healthcare Foundation Report California's Uninsured, 2008 - Tri-Valley Needs Assessment, May 2003, Cities of Livermore and Pleasanton. ~ r I . City of Dublin Fiscal Year 2010-2011 Application for Funds d. Specify the PROPOSED PROJECT/PRO(::R:~M-population to be served. This program targets Dublin familie. that are low income and uninsured. C?~.-er the course c,L rl;e one-year project period, we anticipate that our Enrollment Specialist-wil'1 enroll 243 uninsured Dublin residents... in publicly supposed health plans . Demographic data from o~,ir current servi;~e.show that 96% of these families have an income th=?t ~`i=s in HUD's "extremely low" category . e. Pr~~jert~/probrams must be evaluated to determine i F they are being carried out efficiently ~m~l if project/program n~ril ~ are heirs,-~ met. ~Pleu~e de~crihe how you plan to monitor y~>tirpcoject/program~~ ~ucce~~ anti i~T~pact. ¦ ' Ate additional page may be, ~~~lcfed, ifneeded. The goal of this project ~ s s decreaee th_ n,~~<<~l ~r ~ ~ ow ..income Dublin residents who do not have lie:zlth insurancE. This wily result in access to health care, wr~ich in turn, decreases ,c r~~~li~atiohs of chronic diseases-and pzevents a wide ~~-a~iet-; of acute anal chronic illnesses,among Dublin :residents. It~aiso his a hugely t~ositive effect amc~~a- ~hi~'dren, as immunizat`io:irates increase, ~ minor' illnes~cs do not becom` serious illn~.sses, anti obesity` and diabetes `r ztcs are minimized. This program ~~lso decreases. the rate of unc~>mpensated care in i~c~~ emergency zooms and urgent care centers,....f;~`~ntinued) f. Specify numbers of clients served by a~cnc~. than by FROPOSED PROJECT/PROGR~M: I ;11;ex?cY Particd~ant Int'd??~m~tit?n ~ _ - - ~ t Total Number of Particiants S~r~~c~l b~ ;~~;enc~~ ~ i [ a liable) Total Number of Duhlin Residents Ser~~cd h~_1~;enc~- (if applicable) 1, 200 - - _ _ _ Pro'ecUhr~a~;r~an~ Partac~p~?r~t I~afor?nalior~ _ _ Total Pro osed Partici ants Served by this Project/Program 2 , 5 0 0 Total Number of Dublin Residents Served b this Project 243 °i L City of Dublin ' Fiscal Year 2010-2011 Application for Funds b. Revenue Budget F~' 2~~1 ~-2(?l l I~l?i'i1~i;F I3L'Df~FT ~?12(:~~~;ifA'Tli)ti P[~z),lE(~T/PltO(;~,~,:tV C~~s~a~tiit~edJRtsta~~~tetl f~~zYdti ecify scn~rce St~~.te of California $580,8~~.;~0 Federal' ~$~717,OC~~.00 Alameda County $2,309,310.00 Fees Private Pay Insurance 3,836,406.00 ~1Q~r~-~`o~iir~~tt~~d/F~egt~-i~ted ~+~zad5 I s ~~cifv source) lJV J . VV Foundation. ~3, 000.00 Yam„ ~OO.IOIO` Community Danaticns $50,500.00 $~----,0,00:^`! T~rAL $7, 649, e70. 00 $198, 806 .40 Further CommentsBxplanations (if necessary): The revenue projections are at risk, as we anticipate decreases in reimbursement rates `from Medical and other publicly funded programs, as state officials develop plans to alleviate the current state budget crisis. If this project does not receive funding support we may have to cut back the program hours. SECTION 2 Page 8 of 16 City of Dublin Fiscal Year 2010-2011 Application for Funds 5. Financial Information -Operating Budget a. Ex ense Bud et Y 2@r~8-2009 "Chas pl~~,lti;~~~t~/ E~_~1~,~,~~t~>~tn3c~r.~~~ Oi~can[~.a~r[t~v P'lt~)c~i2:!]~l ~~:~~~r ~t;~cl~.~~r Pe~~~sonnci C'os~ts Em}~I~~}~e< Salaries ~C I3en~~lit~ ~(~,O~~,(~~?.QO ~ 1 9~,~O(~.-~U ~~),(IUU.(I(1 R~~~-t'erg~a~l~el 1?aSEs Contracted Services $226,003.00 Occupancy $397,775.00 Consumable Supplies $562,775.00 Other (insurance/fees/dues/record $689,451.00 storage/pagers/telephone/training/tr avel/equipment/equipment maintenance/uniforms Ca ~~~t~ ~'~~t~ GM Clinic Renovation $100,000.00 Clinic Conversion $250,000.00 TOTAL $8,274,686.00 $198,806.40 $9,000.00 Enrollment and Eligibility Specialist ($9,000) Axis is requesting $9,000 in support to continue a 0.25FTE position. Based on an hourly salary of $15.00 and 18% fringe benefits ($36,816 annually). He/she will be responsible for enrolling families into publicly support health plans. Axis's Enrollment and Eligibility Department is currently staffed with 5.4 FTE Enrollment Specialists. City of Dublin Fiscal Year 2010-2011 Application for Funds 6. General Agency Information ® Past grant applicants~may check this box in lieu of completing item 6(a-d) if the program organizational descn~~tion on`~file with the Cit1 i~ correct and current. a. List all~~~~e~us that Organization I~a~~ prey iuu~~l~ received City of Dublin funding (not Community,Development Ble>ck Grant - CDk~Gi: b. .Describe the p~~F~ulation(s) served by the Organization. e. Describeall the services the Organization currently Pr~wides to Dublin residents. Anadditional page may be added,=il~ needed. d. Has your agency ever previously received funds from the-City of Dublin? If yes, please specify in what Fiscal Years and the `aalount received each year. r~ City of Dublin Fiscal Year 2010-2011 Application for Funds Section A. How would the requested funds be used? (continued) In June 2009, in an effort to expand and to make our Enrollment and Eligibility services more convenient for Dublin residents, we entered into an agreement with the Dublin Library to provide office space to Axis in order to provide Enrollment and Eligibility services one day each week at the Dublin Library. Funding will be used to offset the salary and fringe benefit costs of the 0.25FTE Enrollment Specialist who will be stationed at the Dublin Library one day each week. We project that a 0.25 FTE Enrollment Specialist will be able to enroll 243 low income Dublin residents in health plans in the twelve month project period. The cost of this service is $36.36 per person. Our Enrollment and Eligibility Specialists work. directly with each family to first identify programs where they meet eligibility requirements, and then to enroll family members in appropriate programs. Our Enrollment and Eligibility service is making a difference. Last year (July 1 -June 30, 2008) with a staff of 5.4 FTE Enrollment Specialists, we provided over 3,086 visits helping low income Tri-Valley residents enroll in health care plans, and over 300 of these visits were to enroll Dublin residents in publicly-supported health care plans. City of Dublin Fiscal Year 2010-2011 Application for Funds Section B. How would the proposed project/program address an unmet community need and improve the quality of life for Dublin residents. Why is this project/program needed? (continued) ultimately borne by the public. Research bears this out. More than one third of uninsured adults in Alameda County who have asthma are untreated (County of Alameda Uninsured Survey, September 2001). Uninsured women who develop breast cancer are twice as likely to die as women who have coverage ("The Relationship Between Health Insurance Coverage and Clinical Outcomes Among Women with Breast Cancer," New England Journal of Medicine). Uninsured children are 70% more likely than insured children to not receive medical care for common conditions such as ear infections, and 30% less likely to receive medical attention when they are injured (The Kaiser Commission on Medicaid and the Uninsured, Feb. 2002, The Henry J. Kaiser Family Foundation). Public health data consistently shows that those who do not have health insurance do not get health care. This is an issue that is acutely felt in the Tri-Valley, where the local emergency room provides several million dollars of uncompensated care annually for uninsured patients. Most of these emergency room visits could have been prevented if these patients had had access to primary care medical services. The cost of a typical emergency room visit for an acute asthma attack approaches $2,000. This compares to an average visit cost of $175 at a community clinic, where the same patient receives medications and educational services that prevent or minimize future asthmatic episodes. These savings in health care costs are far greater when heart attacks and strokes are prevented in adults and when communicable diseases are prevented in children. There are also enormous, but unquantifiable, costs in human suffering. Even more troubling is that over the past 20 years, the percent of uninsured Californians under age 65 continues to rise as employer-sponsored health insurance has declined. Between 1987 and 2007, employer-sponsored health insurance has declined. Although Medicaid and individually purchased coverage partially offsets that decline, more than 20 percent of Californians remain uninsured. The problem, though national, is more prominent in California, which has a lower percentage of individuals with,j employer- sponsored coverage and a higher proportion of uninsured. Ina 2008 report,~released'; by California Healthcare Foundation (CHCF) it was found that the number of people living in California without insurance is the highest in the nation, with nearly 60 percent of the state's uninsured are Latino. In light of current economic conditions in California; with companies large and small laying off workers and government considering cuts to health care programs to help lessen burgeoning budget deficits, the ranks of uninsured are likely to grow in the coming year. Based on Dublin's current estimated population ~of 46 934 i' this CHCF report would indicate that there are more than 9,200 Dublin residents without health insurance. According to the Tri-Valley Needs Assessment Survey in May 2003, the local health care infrastructure is not meeting the needs of the Tri-Valley's growing population. Axis is the sole provider of medical services for local residents who are indigent and uninsured. To stem the tide of uninsured residents in the Tri-Valley Axis established an Enrollment and Eligibility department which provides direct assistance for low income families to enroll in publicly-supported health care programs such as Medi-Cal, Medi-Cal managed care plans, Healthy Families, CHDP-Gateway. The vast majority of the families we work with are completely overwhelmed with the complexities of the health care network. They are not aware of existing programs and cannot navigate the complicated enrollment processes that most plans require. The enrollment processes are complicated because many programs are limited to very specific services (such as the Breast Cancer Detection program), so it is common for patients to be enrolled in two or more plans. Additionally, many plans serve only children. As a result, it is common for a single family to be enrolled in three or more different plans. In addition to the complexities involved in the initial enrollment processes, most plans require frequent re-enrollment processes which, if not completed correctly and according to established timeframes, result in dis- enrollment from the health plan. More than 60% of the families we serve do not speak English, which makes it yet more difficult to navigate the enrollment process. Once residents are enrolled in health plans, they have immediate access to medical care. We track emergency room and urgent care center use of our patients and have found that the rate of inappropriate use of emergency services is less than 1 We have also documented dramatic declines in the use of emergency room services by our patients who have asthma, diabetes and other chronic illnesses. Our Enrollment and Eligibility services bring about a demonstrable I decrease in health care costs in our community. More importantly, by making health care available for low income residents, we are able to improve the lives of many people while also improving the overall health of the community. ~ „ , j , ~I "i City of Dublin Fiscal Year 2010-2011 Application for Funds Section E. Projects/programs must be evaluated to determine if they are being carried out efficiently and if project/program goals are being met. Please describe how you plan to monitor your project/program's success and impact. (continued) The success of this program is based upon decreasing the number of uninsured residents. Evaluation is performed by maintaining statistical data regarding the number of persons served, the number of enrollments completed and the number of re-enrollments completed. We also monitor emergency room and urgent care center usage to ensure that utilization of these services is appropriate; if we find that the use of these facilities was not appropriate, we provide follow-up with the patient to make certain that they understand how to use the medical system and we re-educate them regarding the availability of our triage nurse for medical advice. 6i City of Dublin Fiscal Year 2010-2011 Application for Funds 7. Required Attachments: o On1V one (1) conv ..per 1~ency ofeach of the follm~in,~ i~ required, even ~sith multiple projects/prugrams submitted. o Applecations ~~ithout the following documents «ill nol be re~ic~~e[1 fur funding. o Please label attachmeut5: A, B, C, etc. ? A. ?Names of Governin<~ 13uard: idcntif~~ ~urrci7t Board officers. B. Current total Or~aniza~ion~~uratin« hud«~~~, including reven~i~. ¦ ClearlylabeUi~lcntif~y the pru«ram that inelude~5 the PROPUSI?U PR(l.~E('"I'/PkOGR;~1i. ~ C. Mr}st;rea:nl audit rcpr>rl or ta.r' return (i1~ applicablrl. u D. Re~nlution. lctt~r or other doc~um~nt providin~~ c~ idenc~~ of I3oard/Organization approval i)I~ application, and date apps al was granted. BOacd/(>r~~~anizati~~n appro~~al may bz pen~in~. 1. nrganization'~ certificate ~~t in~uirunr~~ ~ho~~ing coverage fur liahilit~~ and ~tiorkers' compensation. F. ,application Verification Urrlaratiun Signature Page.. u G. Si~~ncd affida.~it f~~rm fre~m ~~arh c~~lla.boratin~ a~_~~n~~~ nam~~~l in proposed project/program plan (iI appli~~ahlc). ? H. Copy uf~ IKS Letter of I~etrrmination in~lic~itin~~ tai r.~.empt status. s s, y`F-?`f~ V1 hna-c-l~i " 1~' Axis Community Health Board of Directors 2009 Officers Name Positlon/Committees Phone E-Mall James Paxson, General Manager Chair (hm) (510) 524-0679 jamesCa~hacienda.oro Hacienda Owners Association Finance (wk) (925) 734-6510 4473 Willow Road, Suite 105 Facility ~ Pleasanton, CA 94588 Ted Kaye, Ph.D. Vice Chair , (hm) (925) 417-1201 tkave a(~laspositascolleae.edu Las Positas College Foundation Goverance (wk) (925) 424-1010 4131 Garibaldi Place Nominating Pleasanton, CA 94566 Aida White Secretary (hm) (925) 455-4708 awhite ancapeheadstart.org CAPE/Head Start Finance (wk) (925) 443-3434 6125 Augusta Way (home address) Audit Livermore, CA 94550 Bert Brook Treasurer (hm) (925) 846-0789 bertbrook@comcast.net 852 Castlewood Place Finance Pleasanton, CA 94566 Foundation Facility Members Yolanda Brown PatienUClient Adv. (hm) (925) 485-4459 yolanda.r.brown(a~kp.org 3128 Paseo Granada (wk) (925) 243-2740 Yrooks onaol.com Pleasanton, CA 94566 (cell) (925) 699-3754 Yolanda De Santillan Arias PatienUClient Adv. (hm) (925) 719-2978 vabrvl[a~hotmail.com 2323 Santa Rita Road, #9 Pleasanton, CA 94566 , Mark Eaton Finance (hm) (925) 373-9249 markleatonCa~comcast.net 2109 Fourth Street Audit (wk) (925) 373-3455 Livermore, CA 94550 Thelma Fones Nominating (hm) (925) 443-7320 tfonesCcillivermore.kl2.ca.us Livermore School District (wk) (925) 454-5596 750 Del Mar Avenue Livermore, CA 94550 Michael Fraser, Chief of Police Goverance (hm) (925) 846-8847 mfraserCcilci.pleasanton.ca.us Pleasanton Police Department (wk) (925) 931-5100 4833 Bernal Avenue Pleasanton, CA 94566 L. James Ghilardi, MFT Governance (hm) (925) 484-2449 volvosaoCcilaol.com Arroyo Counseling Audit (wk) (925) 462-0220 4713 First Street, #250 Pleasanton, CA 94566 Frank A. Hunter, Ph.D. PatienUClient Adv. (hm) (925) 449-1714 hunterfrankalex@yahoo.com 1550 Springtown Blvd., Apt. 18G Marketing (cell) (925) 518-3253 Livermore, CA 94551 Audit Rhenae Keyes PatienUClient Adv. (hm) (925) 339-8548 keves2thecap(a~aol.com 6700 Dougherty Rd. # 101 Dublin, CA 94568 Gladys Montalvo-Campo (hm) (925) 479-9314 _gladys montalvoCn)hotmail.com 3115 Finnian Way #311 (cell) (925) 427-0070 Dublin, CA 94568 Farzana (Farzi) Najeeb Marketing (hm) (925) 399-5131 farzinaieeb(a~vahoo.com 9302 Benzon Drive Pleasanton, CA 94588 Jeri Steiger Governance (hm) (925) 484-3699 pizzarobCcilaol.com 3819 Vineyard, #68 PatienUClient Adv (wk) (925) 846-2520 Pleasanton, CA 94566 Staff Sue Compton, CEO (wk) (925) 201-6005 scomoton@axishealth.org Joe Flaherty, CFO (wk) (925) 201-6012 iflahertvC~axishealth.org Meena Rijhwani, MD, Medical Director (wk) (925) 201-6097 mrihiwani onaxishealth.orq Sandy English, Executive Assistant (wk) (925) 201-6017 senolish(a axishealth.oro AXIS COMMUNITY HEALTH FY 2009- 2010 CONSOLIDATED BUDGET SUMMARY Clinic BH WIC Total REVENUE: CONTRACTS 2,635,316 766,010 562,550 3,963,876 MEDICAL SERVICES-PATIENT/CLIENT FEES 2,800,965 0 0 2,800,965 COUNSELING SERVICES-PATIENT/CLIENT FEES 0 738,829 0 738,829 FOUNDATION 90,000 3,000 0 93,000 DONATIONS 50,000 500 0 50,500 OTHERS 2,500 0 0 2,500 TOTAL REVENUE 5,578,781 1,508,339 562,550 7,649,670 EXPENSES: DIRECT ~ PERSONNEL 3,825,026 1,005,236 385,185 5,215,448 CONTRACTED SERVICES 148,435 35;800 32,468 216,703 OCCUPANCY 126,670 181,265 73,300 381,235 CONSUMABLE SUPPLIES 497,000 34,000 18,400 549,400 _ OTHER 517,215 113,395 21,850 652,460 TOTAL DIRECT EXPENSES 5,114,347 1,369,696 531,203 7,015,246 INDIRECT S PERSONNEL 575,538 230,278 27,417 833,234 CONTRACTED SERVICES 6,500 2,800 0 9,300 OCCUPANCY 11,390 5,150 0 16,540 CONSUMABLE SUPPLIES 9,500 3,875 0 13,375 OTHER 26,330 10,661 0 36,991 TOTAL INDIRECT EXPENSES 629,258 252,764 27,417 909,440 TOTAL EXPENSES 5,743,605 1,622,460 558,621 7,924,686 NET OPERATING INCOME (LOSS) BEFORE DEPRECIATION {164,824} (114,121) 3,929 {275,016 DEPRECIATION EXPENSES (96,797) (38,150) - (134,947) NET.OPERATING INCOME (LOSS) AFTER DEPRECIATION EXPEN {261,621} {152,271) 3,929 (409 963} G~9 CLI<JIG Rero~~tion Fun--.ling, ~ ~ 100,000 100,000 Exp~.~nses (100,000} ~ (100,000) Clirnc Cor3~~e~sion Funding 250,000 250,000 Expenses (250,000) {250,000) TOTAL PROJECT BALANCE 0 0 0 0 TOTAL BUDGET (164,824) (114,121) 3,929 (275,016) ~ AXIS COMMUNITY HEALTH, INC. AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2008 AXIS COMMUNITY HEALTH, INC. TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR' S REPORT 1 FINANCIAL STATEMENTS: Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows 4 Notes to Financial Statements 5-12 SUPPLEMENTARY INFORMATION Statement of Units of Service for County of Alameda Grants 13-14 Statement of Expenditures for County of Alameda Grants 15-16 Schedule of Expenditures of Federal Awards 17 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS 18-19 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 20-21 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 22-23 STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS 24 Patel & Associates Telephone: (510) 452-5051 2G6 17'h Street, Suite 200 Fax: (510) 452-3432 Certified Public Accountant Oakland, California 94612-4124 e-mail: ramesh(F~patelcpa.com INDEPENDENT AUDITOR'S REPORT The Board of Directors Axis Community Health, Inc. Pleasanton, California We have audited the accompanying statement of financial position of Axis Community Health, Inc. (a Nonprofit Organization) as of June 30, 2008 and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of Axis Community Health, Inc.'s management. 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 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Axis Community Health, Inc. as of June 30, 2008 and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2008 on our consideration of Axis Convnunity Health, Inc.'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 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was performed for the purpose of forming an opinion on the basic financial statements of Axis Community Health, Inc. taken as a whole. The accompanying supplementary information is presented for purpose of additional analysis. Also, the accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Gover~rments, and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. Oakland, California December 18, 2008 1 AXIS COMMUNITY HEALTH, INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2008 ASSETS Current assets: Cash and cash equivalents $ 1,411,440 Accounts receivable -net (Note 3) 921,835 Grants and contracts receivable (Note 5) 528,200 Prepaid expenses 41,415 Total current assets 2,902,890 Property and equipment -net (Note 6) 1,503,307 Total assets $ 4,406,197 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable $ 166,291 Accrued liabilities 401,929 Unemployment reserve (Note 7) 37,959 Current portion of note payable (Note 8) 17,717 Total current liabilities 623,896 Long term portion of note payable (Note 8) 667,804 Total liabilities I ,291,700 NET ASSETS: Unrestricted 3,087,644 Temporarily restricted 26,853 Total net assets ~ 3,114,497 Total liabilities and net assets $ 4,406,197 The accompanying notes are an integral part of these financial statements. 2 AXIS COMMUNITY HEALTH, INC. STATEMENT OF ACTIVITIES JUNE 30, 2008 Temporarily Permanently Unrestricted Restricted Restricted Total Support: Grants and contracts (Note 4) $ 2,950,958 $ $ $ 2,950,958 Contributions (Note 12) 102,483 25,000 127,483 Tota] support 3,053,441 25,000 3,078,441 Revenue: Patient fees (Net) 3,705,350 3,705,350 Interest income 21,169 21,169 Other 22,427 22,427 Total revenue 3,748,946 3,748,946 Total support and revenue 6,802,387 25,000 6,827,387 Net assets released from restrictions: satisfaction of program resMctions 67,475 (67,475) Total support and revenue 6,869,862 (42,475) 6,827,387 Expenses (Note 17): Program services 5,357,190 5,357,190 Management and general 886,815 886,815 Total expenses 6,244,005 6,244,005 Revenue over expenses 625,857 (42,475) 583,382 Net assets, beginning of the year 2,461,787 69,328 2,531,115 Net assets, end of year $ 3,087,644 $ 26,853 $ $ 3,114,497 The accompanying notes are an integral part of these financial statements. 3 AXIS COMMUNITY HEALTH, INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2008 Cash flows from operating activities: Change in net assets $ 583,382 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 238,954 Decrease/(Increase) in: Accounts receivable (306,366) Grants and contracts receivable 95,326 Prepaid expenses (17,229) Increase/(Decrease) in: Accounts payable 8,470 Accrued liabilities 75,079 Net cash provided by operating activities 677,616 Cash flows from investing activities: Purchase of property and equipment (52,784) Net cash used by investing activities (52,784) Cash flows from financing activities: Repayment of long term loans (16,695) Net cash used by financing activities (16,695) Net increase in cash and cash equivalents 608,137 Cash and cash equivalents at beginning of year 803,303 Cash and cash equivalents at end of year $ 1,411,440 Supplemental disclosures: Interest paid $ 45,544 The accompanying notes are an integral part of these financial statements 4 AXIS COMMUNITY HEALTH, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2008 NOTE 1: GENERAL Axis Community Health, Inc. (Axis) is a private nonprofit 501(c)(3) community clinic that has been serving the residents of the Tri-Valley area since 1972. Axis's mission is to foster the physical, emotional and social well-being of individuals, families and the Tri-Valley community through the provision of services which promote wellness and a positive quality of life. Axis operates from four sites that are located in Pleasanton, Livermore and Dublin. Axis's services include pediatrics, adult internal medicine, women's health care, mental health counseling, drug and alcohol services, WIC nutrition services and community health education. NOTE 2: SUIVIMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accountinu 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. Net assets, revenues and expenses are classified on the existence or absence of donor-imposed restrictions. Accordingly, net assets of Axis and changes therein are classified and reported as follows: Unrestricted net assets -Net assets are those currently available for use and are not subject to donor-imposed stipulations. Temporarily restricted net assets -Net assets subject to donor-imposed stipulations that may or will be met, either by actions of Axis and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Permanently restricted net assets -Net assets subject to donor-imposed stipulations that they be maintained permanently by Axis. There were no permanently restricted net assets as of June 30, 2008. Property and Equipment ' Property and equipment is stated at cost at the date of acquisition. Depreciation of property and equipment is computed on the straight-line method over the estimated useful lives of the individual assets. The lives of the assets range from 5 years to 30 years. Repairs and maintenance are charged to operations and major improvements are capitalized. Donated assets are recognized at market value at the time of donation. Expenses for assets in excess of $1,000 are capitalized and assets purchased with government grants are expended in accordance with government program guidelines. 5 Support and Revenue Support for government contracts is recognized when earned, primarily as expenditures are incurred. Support from unrestricted sources including grants and contributions is recognized when received. Revenue from patient fees is recognized when services are provided. Axis receives revenues from third-party payors and patients. Axis has agreements with third-party payors that provide for payments at amounts different from its established rates. Payment arrangements include prospectively determined rates per discharge, reimbursed costs and discounted charges. Net patient service revenue is reported at the estimated net realizable amounts from patients, third-party payors, and others for services rendered. Cash received in advance of earnings is reported as deferred revenue. Contributions and Promise to Give Contributions, including unconditional promise to give, are recorded as made. All contributions are available for unrestricted use unless specifically restricted by the donor. Conditional promises to give are recognized when the conditions on which they depend are substantially met. In Kind Contributions Axis records in kind support including contributed assets and professional services. Contributed professional services are recognized if the services received (a) create or enhance anon-financial asset or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. Contributions of tangible assets are recognized at fair market value when received. During the fiscal year, Axis received a significant amount of contributed services from non-professional volunteers to assist in the program services and fund raising activities. No amounts have been recognized in the statement of activities because they did not meet the ;two criteria described above. Cash and Cash Eauivalents Cash and cash equivalents include short-term highly liquid investments with original maturities of three months or less: Functional allocation of Expenses The costs of providing the, various programs and other activities -have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. 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 certain reported amounts of assets grid disclosures. Accordingly, actual result could differ from those estimates. 6 Income Taxes Axis is exempt from Federal Taxes under Section 501 (c) (3) of the Internal Revenue Code as amended and Section 23701 (d) of the Revenue and Taxation Code of the State of California. Accordingly, no provision for Federal and Franchise taxes has been recognized in the financial statements. NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable totaled $921,835 and a provision of $74,581 has been made for doubtful accounts. NOTE 4: GRANTS AND CONTRACTS REVENUE Axis is funded primarily by Federal, State and County grants/contracts, which generally restrict the use of such funds to cover the operating expenses directly related to providing primary care and special services. Grants/contracts are recognized as revenue over the period specified in the related grant award agreements. The grants and contracts are as follows: State WIC $ 506,201 Alameda County General Fund 1,478,684 Alameda County Immunization Project 20,000 Alameda County Homeless 28,454 Alameda County-CYS 61,424 Alameda County ODF (Drug and Alcohol) 192,099 Alameda County Drug and Alcohol Teens 213,975 Alameda County Primary Prevention 157,668 Alameda County Prop 36 162,085 Alameda County SSA 31,891 CDBG Pleasanton -Women's Clinic 23,030 Pleasanton City Grant -Clinic 24,370 State EAPC 17,089 AHC- General Medicine 23,485 Livermore City Grant -Clinic 10,503 $ 2,950,958 ' 7 NOTE 5: GRANTS AND CONTRACTS RECEIVABLE Grants and Contracts receivable balances are as follows: Alameda County Measure A $ Alameda County SSA 13,805 Alameda County Homeless 5,740 State -WIC 89,760 Immunization Project 1,667 Alameda County General Fund 337,497 Alameda County ODF 11,574 Alameda County Primary Prevention 10,512 Alameda County Teens 20,381 Alameda County Prop 36 3,931 Alameda County CYS (Comprehensive Youth Services) 10,237 Pleasanton Primary Care 1,371 Pleasanton CDBG -Women's clinic 21,725 $ 528,200 NOTE 6: PROPERTY AND EQUIPMENT Property and equipment is summarized as follows: Land $ 210,460 Buildings 1 486 776 Leasehold improvements 462,982 Furniture and office equipment 666,362 Medical equipment 81,615 Computers 347 660 3,255,855 Less: accumulated depreciation (1,752,548) Net book value $ 1,503,307 NOTE 7: UNEMPLOYMENT RESERVE Axis has established aself-funded unemployment benefit fund, electing not to participate in the California State Unemployment Insurance Plan. Axis has recognized accrued unemployment benefits liability of $37,959 in the fiscal year 2008. 8 NOTE 8: NOTE PAYABLE Note payable consist of the following: Note Payable to Mt. Diablo National Bank, secured by real property, bearing interest at 6.5% per annum, payable in monthly principal and interest installments of $4,887. The entire unpaid balance is due on October 1, 2010. $ 681,921 Unsecured note Payable to City of Livermore, non-interest bearing, payable in monthly principal and interest installments of $300. The maturity date is June, 2010. 3,600 Total Note Payable 685,521 Less: Current Portion (17,717) Long-Term Portion $ 667,804 Following are maturities of long-term debt for each of the next three years: Year ending June 30, 2009 $ 17,717 2010 15,077 2011 652,727 $ 685,521 NOTE 9: LEASE COMIVIITMENTS Axis leases office space for its Programs located in Pleasanton, Livermore and Dublin California, under operating leases expiring in various years through 2010. Minimum future rental payments under noncancelable operating leases having remaining termsin excess of one year as of June 30, 2008, for each of the next two years are: Year ending June 30: 2009 $ 28,200 2010 28,200 Total minimum future rental payments $ 56,400 The rental expense for the year ended June 30, 2008 was $107,086. 9 NOTE 10: PENSION PLAN Axis has established a 401(K) retirement plan to provide eligible employees with retirement benefits. All employees over age 21 and after completion of 3 months of employment service are eligible for the retirement contribution. All eligible employees may elect to have employee elective deferrals of not less than $200 annually contributed to the plan. Axis did not contribute to the plan during the year ended June 30, 2008. NOTE 11: CONTINGENT LIABILITIES Grant Expenditures Conditions contained within the various contracts awarded to Axis are subject to the funding agencies criteria and regulations under which expenditures may be charged against and are subject to audits under such regulations and criteria. Occasionally, such audits may determine that certain costs incurred against the grants may not comply with the established criteria that govern them. In such cases, Axis could be held responsible for repayments to the funding agency for the costs or be subject to the reductions of future funding in the amount of the costs. Management does not anticipate any material questioned costs for the contracts and grants administered during the period. NOTE 12: CONTRIBUTIONS Contributions are generally from foundations and are as follows: Tri-Valley Community Foundation $ 18,750 Alameda Health Consortium/Alta-Bates Summit Foundation 32,300 Blue Shield California Foundation 30,000 Kaiser Foundation 25,000 Foresters bf Amer7ca 5,000 Wellness Foundation/Alameda Health Consortium ' 1,883 Others 14;550 $ 127,483 NOTE 13: COMPENSATED ABSENCES Axis encourages employees to take their vacation during the year it is earned. When this is not possible, employees may accumulate time up to the limits according to their length of service in the organization. The employees do not gain a vested right to accumulated sick leave. The accumulated employee sick leave benefits are not recognized as liabilities of Axis since payment of such benefits are recorded as expenditures in the period sick leave is taken. 10 NOTE 14: RELATED PARTY TRANSACTIONS Community Health Center Network (CHCN) is a partnership between seven health service organizations to provide a comprehensive range of professional health care and social services in a manner respectful of the community values and traditions. Incorporated in 1996, CHCN introduced the managed care business to its member clinics by serving as a network of management service organization which administers a risk sharing arrangement between the member clinics. Under the risk sharing arrangement Axis receives capitated payments from CHCN by providing Primary Care Physician services to its covered patients. Axis periodically receives cash payments under the risk sharing arrangement, and a certain amount of cash receipts are withheld on behalf of the member clinics to pay their respective outstanding claims for services. At June 30, 2008, the expenditure incurred in excess of revenue received was $13,752. The management feels that the net resultant amount is not material and accordingly, no due to/from CHCN at June 30, 2008 has been recorded. In addition, Axis received $293,676 towards risk pool and surplus distribution. NOTE 15: LINE OF CREDIT: ' The facility has a line of credit with Wells Fargo Bank for $150,000. No amount was drawn and outstanding at June 30, 2008. NOTE 16: AXIS COMMUNITY HEALTH FOUNDATION Axis Community Health Foundation was created to enhance community support for Axis, carrying out a variety Hof activities that generate support for the organization. There were no significant transactions between the two organizations during the year. 11 NOTE 17: TOTAL EXPENSES The total expenses incwred for the year are detailed as follows: SUPPORTING - PROGRAM SERVICES SERVICES General Women Total Clinical Drug and Mental Infants Program Management Services Alcohol Health Children Expenses & General Total EXPENSES .Salaries $ 2,204,805 $ 634,471 $ 157,790 $ 297,456 $ 3,294,522 $ 662,552 $ 3,957,074 Fringe benefits 152,995 60,357 11,065 30,739 255,156 85,087 340,243 Contractors 14,941 165 135 150 15,391 29,564 44,955 Professional services 6,426 2,110 1,055 21,350 30,941 3,438 34,379 Janitorial services 14,965 4,201 2,584 3,890 25,640 2,175 27,815 Laboratory 67,570 5,114 72,684 72,684 Other contracted services 353,792 18,056 10,256 13,995 396,099 8,246 404,345 Rent/mortgage interest 63,629 31,439 6,831 27,616 129,515 23,115 152,630 Repairs and maintenance 16,010 2,251 1,469 4,489 24,219 678 24,897 Utilities 39,596 11,267 5,843 2,743 59,449 3,925 63,374 Office supplies 37,586 5,428 2,344 7,973 53,331 5,573 58,904 Postage 5,143 1,286 778 2,450 9,657 1,181 10,838 Medical supplies 77,019 10,598 270 87,887 87,887 Pharmacy _ 234,425 234,425 234,425 Maintenance supplies 3,925 1,160 773 305 6,163 376 6,539 Other supplies 35,521 6,060 6,879 4,584 53,044 1,249 54,293 - Insurance 67,512 21,140 10,865 15,931 (15,448 16,790 132,238 Telephone/pagers 58,354 20,125 10,404 2,230 91,113 8,578 99,691 Equipment maintenance contracts 55,105 14,054 7,083 1,672 77,914 77,914 Travel 4,922 2,783 31 2,029 9,765 4,508 14,273 Fees & dues - - - 19,655 13,184 3,760 2,458 39,057 1,169 40,226 Conferences/training - 3,617 1,331 255 2,400 7,603 3,549 11,152 Bad debts 23,927 469 2,495 26,891 26,891 Other 23,030 23,030 1,167 24,197 Depreciation 177,773 23,197 14,089 215,059 23,895 238,954 - - _ , _ _ Miscellaneous 2,140 930 117 3,187 3,187 _ _ _ -Total expenses _ - ~ . _ $ 3,764;383_ _ 891,176 $ 256,901 $ 444,730 $ 5,357,190 $ 886,81.5 $ 6,244,005 I2 SUPPLEMENTARY INFORMATION AXIS COMMUNITY HEALTH, INC. STATEMENT OF UNITS OF SERVICE FOR COUNTY OF ALAMEDA GRANTS FOR THE YEAR ENDED JUNE 30.2008 Program Homeless Program Contract Number C-93-0689 Contract Period 7!1/07- 6!30!08 Contract Amount $ 41,450 NUMBER RATE TOTAL TYPE OF SERVICE OF UNITS PER UNIT Medical 347 $ 82.00 $ 28,454 Amount Reimbursed by County $ 28,454 13 AXIS COMMUNITY HEALTH, INC. STATEMENT OF UNITS OF SERVICE FOR COUNTY OF ALAMEDA GRANTS FOR THE YEAR ENDED JUNE 30, 2008 Program SSA-Children & Family services Contract Number C-93-0916 Contract Period 7/1/07- 6/30/08 Contract Amount $ 36,000 NUMBER RATE TOTAL TYPE OF SERVICE OF UNITS PER UMT Drug testing 682 $ 30.00 $ 20,460 Group session 209 25.00 5,225 Intake 3 60.00 180 Individual 8 60.00 480 Case Management 36 39.61 1,426 Lab-Drug Testing 70 40.00 2,800 Additional Lab 1,320 Amount Reimbursed by County $ 31,891 14 AXIS COMMUNITY HEALTH, INC. STATEMENT OF EXPENDITURES FOR COUNTY OF ALAMEDA GRANTS FOR THE YEAR ENDED JUNE 30, 2008 Program : Homeless Case Comprehensive Immunization Management Youth Services Contract Number : C-93-0689 C-99-497 C-93-0689 Contract Period : 7/1/07 - 6/30/08 7/1/07 - 6/30/08 7/1/07-6/30/08 Contract Amount : $ 28,454 $ 59,635 $ 20,000 Expenditures Salaries and Employee Benefits $ 28,454 $ 59,635 $ 20,000 Total 28,454 59,635 20,000 Amount Reimbursed by County $ 28,454 $ 59,635 $ 20,000 15 AXIS COMMUNITY HEALTH, INC. STATEMENT OF EXPENDITURES FOR COUNTY OF ALAMEDA GRANTS FOR THE YEAR ENDED NNE 30, 2008 Contract Name Alcohol and Drug Contract Number C-93-0689 Contract Period 7/1/07-6/30/08 Contract Amount $ 513,865 210 200 Primary Outpatient 202 200 Prevention AlcohoUDrues Teen Prop 36 Total Expenditures: Services and Supplies $ 132,393 $ 191,222 $ 137,611 $ 162,640 $ 623,866 Amount Reimbursed by County $ 132,393 $ ]91,222 $ 137,611 $ 162,640 $ 623,866 16 AXIS COMMUNITY HEALTH, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2008 Federal Pass-Through FEDERAL GRANTOR/PASS-THROUGH CFDA Entity Identifying Federal GRANTOR/PROGRAM OR CLUSTER TITLE Number Number Expenditures U.S. Department of Agriculture: Pass-Through Program From: State Department of Health & Human Services - Supplemental Food Program -WIC 10.557 99-12345&99-85771 $ 506,201 Total U.S. Department of Agriculture 506,201 U.S. Department of Health and Human Services; Pass-Through Programs From: Alameda County -Health Care Service Agency - Homeless Program 93.151 C-93-0689 28,454 Alameda County-Department of Public Health - Alcohol and Drug 93.959 C-93-0689 110,041 - Drug Medical 93.778 C-93-0689 6,488 - Drug and Alcohol Treatment and Substance Abuse Counseling 93.645 C-93-0689 18,000 Total U.S. Department of Health and Human Services 162,983 U.S. Department of Housing and Urban Development: Pass-Through Programs From: City of Pleasanton Community Development Block Grants - Pleasanton Woman's Health Center 14.218 N.A. 23,030 City of Livermore Community Development Block Grants - Access to Healthcare for Uninsured Liv. Fam. 14.218 N.A. 8,500 - Defibrillator 14.218 N.A. 2,003 Total U.S. Department of Housing and Urban Development 33,533 Total Expenditures of Federal Awards $ 702,717 N.A.: Not Available Note: The above schedule of expenditures of federal awards is prepared on an accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 17 Patel & Assoclates Telephone: (510) 452-505 ] 266 17ih Street, Suite 200 Fax: (510) 452-3432 Certified Public Accountant Oakland, California 946 1 2-41 24 a-mail: rameshCpatelcpa.com INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCLAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Board of Directors Axis Community Health, Inc. Pleasanton, California - We have audited the financial statements of Axis Community Health, Inc. (A Non-profit Organization) as of and for the year ended June 30, 2008, and have issued our report thereon dated December 18, 2008. We conducted our audit 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. Internal Control Over Financial ReQortine In planning and performing our audit, we considered Axis Community Health, Inc.'s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Axis Community Health, Inc.'s internal control over financial reporting. Accordingly, we do not express an'opinion on the effectiveness of Axis Community Health, Inc.'s internal control over financial reporting. A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects Axis Community Health, Inc.'s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of Axis Community Health, Inc.'s financial statements that is more than inconsequential will not be prevented or detected by Axis Community Health, Inc.'s internal control A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by Axis Community Health, Inc.'s internal control. is { ~ ~ . Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and other Matters As part of obtaining reasonable assurance about whether Axis Community Health, Inc.'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. This report is intended solely for the information and use of the management, the audit committee, board of directors, others within the organization, regulatory body, federal awarding agencies 'and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Oakland, California December 18, 2008 19 Patel & Associates Telephone: (510)452-5051 266 17ih Street, Suite 200 Fax: (510)452-3432 Certified Public Accountant Oakland, California 94C 12-4124 e-mail: ramesh@patelcpa.com INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Board of Directors Axis Community Health, Inc. Pleasanton, California Compliance We have audited the compliance of Axis Community Health, Inc. with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Ci~•cular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008. Axis Community Health, Int.'s major federal programs are identified in the summary of auditor's result section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Axis Community Health, Int.'s management. Our responsibility is to express an opinion on Axis Community Health, Int.'s compliance based on our audit. 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 Office of Management and Budget (OMB)' Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Those standards and OMB Circular A-I33 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 federal program occurred. An audit includes examining, on a test basis, evidence about Axis Community Health, Inc.'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. Our audit does not provide a legal determination of Axis Community Health Inc.'s compliance with those requirements. In our opinion Axis Community Health, Inc. complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008. Internal Control Over Compliance The management of Axis Community Health, Inc. is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs: Tn planning and performing our audit; we considered Axis Community Health, lnc.'s internal control hover'compliance with requirements ,that could have a direct and material effect on a major federal program in order :,to; determine our',auditing 1J h, Is i ~ ~ . I'! i procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Axis Community Health, Inc.'s internal control over compliance. A control deficiency in Axis Community Health, Inc.'s internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects Axis Community Health, Inc.'s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by Axis Community Health, Inc.'s internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by Axis Community Health, Inc.'s internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of the management, the audit committee, board of directors, others within the organization, regulatory body and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Oakland, California December 18, 2008 ' ~ i ' r ~ ~ AXIS COMMUNITY HEALTH, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30.2008 SECTION I -SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weaknesses identified? No • Significant deficiencies identified that are not considered to be material weaknesses? No Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: • Material weaknesses identified? No • Significant deficiencies identified that are not considered to be material weaknesses? No Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? No Identification of major programs: CFDA Number Name of Federal Program 10.557 Supplemental Food Program -WIC 93.959 Alcohol and Drug Program Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low-risk auditee? Yes 22 AXIS COMMUNITY HEALTH, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2008 SECTION II -FINANCIAL STATEMENT FINDINGS No matters were reported. SECTION III -FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. ' 23 AXIS COMMUNITY HEALTH, INC. STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30.2008 There were no material findings reported in the prior year. 24 • S coi~~ ~Y~ Ld rail v }t~arr<l.t:h Board Resolution Board of Directors RESOLUTION The Board of Directors of Axis Community Health endorses and approves this application to the City of Dublin requesting support to provide access to health care for uninsured and low income Dublin residents. James Paxson, Chair Axis Community Health Board of Directors Dated: ~2 ~ ~i 4361 Railroad Avenue, Pleasanton, CA 94566 ¦ Tel: 925.462.5544 ¦ Fax: 925.417.1503 ¦ www.axishealth.org -~a~~~ ~ Axis Community Health Insurance Information Axis Community Health maintains full insurance coverage at all times (see attached Certificate of Insurance), which includes: Commercial General Liability $1,000,000 Professional Liability $1,000,000 Automobile Liability $1,000,000 Workers' Compensation $1,000,000 Certificates of current coverage will be submitted to the City of Dublin as requested. CERTIFICATE OF LIABILITY INSURANCE OP ID pC DATE(MIWDD/YYYY) Axxsc-1 li 25 os PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Chapman ONLY AND CONFERS NO R[aHTS UPON THE CERTIFICATE License ~ 0522024 HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR P . O. Box 5455 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Pasadena CA 91117-0455 phone: 626-405-8031 Fax: 626-405-0585 INSURERS AFFORDING COVERAGE NAIC# INSURED 1NSURERA: NORCAL INSURER B: riaauey a GpoaiC Co Itrrylsr,d Axis Communityy Health INSURER c: Everest National 4361 Railroad Ave. INSURER D: U.5. S ecialt Pleasanton CA 94566 INSURER E: xraval.ra pr rt c cuuslC COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THB POLK:Y PEA100 INDICATED. NOTWITHSTANDINp _ ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WFTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OA MAV PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TEAMS, EXCLUSION3 AND CONOITiONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR NSR TYPE OF INSURANCE POLICYNUMBEq DA E MFVDDIYYY DATE M6VDD/YYY t16QTS GENERALIJABR.ITY EACH OCCURRENCE $ lOOOOOO E X COMMERCIALGENEAALLIABILITY 660693X4827TCT09 11/29/09 11/29/10 PREMISES {Eaacurence § 100000 CLAIMS MADE OCCUR MEDEXP(Arryoneperson) §SOOO A X Professional 610371 04/01/09 O4/O1/lO PERSONALBADVINJURY S IOOOOOO E X Liquor Liability 660693X4827TCT09 11/29/09 11/29/10 GENERAL AGGREGATE s 3000000 GEN'LAGGREpATELIMITAPPL[ESPER: PRODUCTS-COMPIOPAGG S 3000000 X POLICY LOC AUTOM061LELIABILITY COMBINED SINGLE LIMIT {S l,000OOO E ANYAUro 660693X4827TCT09 11/29/09 11/29/10 (Eaacadenl) , ' ALL OWNED AUTOS BODILY INJURY - SCHEDULED AUTOS (Per person) § ' X HIRED AUTOS ~ ~ ~ - ~ - ' ~ 8001LY INJURY § ' ' X NON-OWNED AUTOS (Per axider>h , . ~ ~ PROPERTY DAMAGE § (Per aaldenq GARAGE LIABILITY AUTO ONLY- EA ACCIDENT ~ S ANY AUTO OTHER THAN ~ ACC E " _ AUTO ONLY: AGG § EXCESS/UMBRELLA WABILri'Y EACH OCCURRENCE ' § lr OOO, OOO E X OCCUR ~ CLAIMSMADE Ct7P198OT4O2O9 11/29/09 11/29/10 AGGREGATE s 1 000 000 § DEDUCTIBLE ~ ~ § X AETENTK7N §SO, OOO § - WOAKE S CO PF-NSATION AND ENPLOYEAS' LIABILRY Y 1 N TORY LIMR3 ER ANY PROPRIETORfPARTNERIEXECUTIVr~ 6600000176091 10/01/09 lO/Ol/lO EL. EACH ACCIDENT S lOOOOOO OFFICEFVMEMBER EXCLUDEDT LI EL. DISEASE - EA EMPLOY S 1 OOOOOO (Mandatory in NH) ~ ' II yes, describe under SPECIAL PROVISIONS below EL DISEASE-POLICY LIMB § IOOOOOO OTHER B Crime Section CCP1152338-16 10/01/09 20/O1/lp Emp Dish 400000 D DirectorslrOfficers ZT70930914 08/01./09 OB/O1/10 Limit 2000000 DESCRIPTH)N OF OPERATIONS 1 LOCATEONS 1 VEHICLES /EXCLUSIONS ADDED 8Y ENDORSEMENT /SPECIAL PROVISIONS Evidence of coverage. 10 days notice of cancellation for non-payment of prenutlm. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED PQLK:IES BE CANCELLED BEFORE THE EXPIRATK)N DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 3O DAYS WRTrtEN NOTK:E TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LUIBILTTY OF ANY K1kD UPON THE INSURER, ITS AGENTS OA I REPRESENTATIVES. City of Dublin Au RREDR PRESENTATNE 100 Civic Plaza tlblin CA 94568 ACORD 25 (2009/01) ®1988-2009 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD IMPORTANT !f the certificate holder is an ADDITIONAL INSURED, the policy(ies} must be endorsed. A statement on this certificate does no# confer rights to the certificate holder in Ifeu of such endorsement(s). If SUBROGATION f5 WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER This Certificate of Insurance does not constitute a contract between the issuing insurers},.authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORU 25 (2009101) ac~~~~ ~ L° City of Dublin Fiscal Year 2010-2011 Application for Funds .a PPLICATION VERIFICATION I attest that the information runtaine~i in this Fy 2010-ZU 1 1 ~rr<int application i~ accurate and that the funds requested ~~~il~lrn>t supplant am ether monie< ~ecure~i b~~the ur~~ani~atiun. Attached is a resulu~i~m, letter, or other dc~~~urnen~ pro~~iding evidence that the 13o~ud of Directors approv~;d the application as submitted. Successful applir~u~ts ~~re required to submit a summary report as upon a~~ p~~ssible after suhmittin« the rcimhur~cment request, but nc>t I,~tcr than At?gust 31, 2O I I . Failure t~~ ~uhmi< a report ~~~ill result in incli~~ihilit~ f~~~r future fun~lin~~. Si~uatures: r F.xecutir~e Director Dale 2 ~t `'l Bo~ud President/Chairpersan Date s B, !L City of Dublin k'iscal Xear 2010-2011 Application for Funds CO~.LABQRAT7gI~3N llllrE~1CY qty ~'~AFFIDA IVIT I+~ORM ~ ' tc ~ ~ ~ F ' r Y o This forp~iis ~o~be completed hy~each~collaborahn~:orgatuza~ron~as~amed by the _ applicdnt agency in tlie,proposed proe~~progrant: ` t; f o Couipletedorins Ynust be subrtuti~,t at h~i~ of applicahona ~ ~,j ~ ~ q! ~ _4 , ~t ! tg ii' ~ ~ ds vx4 ~g t ' fit. Collaborattng~A~ency, Name: n ~ ,'T ~ ~ t ; L t r , Dubl in ~ rar-~ a ~";,,A ' ir.. i',= ` ?t E ~ t I Agent-~~Di~sion(Departmet~t:~:~=_~;~_~ ~ ~ ~ ~ t , n. ~ 8 i E a;} ...7 ~ " ro.,? ¢Trt7r s,~ 3rr Pro~ecl/Pro Title ~-;Access t:~b',ti'e~.Xt~ axe rfo~ TJninsured and LOWr,~Y€came gtiarn ~ 15 .t ~ ' "i' t ~ Dub 1 in ` Fzes,ident s~~ ~ ~ -~~'=:r~ ~ r' r,`.. ` ' r ' ~ f u.-a~- 4eEt` h Pe-~+ E~ thy' i ~ Pro~ect/P,cogram Ro~Ie De~i'tton ~a e,~, fac~ty space~,stalf su~~orl.,,et~)r '+rr f~ 4 i r' , d U 1 f e R ,o ~provi~e .~'ac~.i~y,: ~pace.~:one ay~eaoh wee~~ . ;r : >I .t 1, - . , r a tt ' f ~F'.'~ }~s N ~ ' ~E~v^Se5 .i., :ii' nJ:i ~ 9 ~...:i-,. ::N ~::i ti:'1` 1'y ' _ .azy, W . , -x - ,y'}a Ji iti::. :~1q.it tn4 r~Et.. -.....r:~„~'~.~ a-~ 3_..: , . f.,:j E,~ I' I -rax M. 'Y- ~ en 1' ~ ''4,f"~ f ~ ~ * ~..-N ar s. Agency ~rc~ec~'rogram Contaet Personx~ Lee Jouthas tt r t ~ a P' 1 3 ~ c a Duel%~'~f~3brary Manager ~ ~ Title ~ z, q d a. s l t ~ t ~ !~r tz r2~F„ ~ "~W4cc'-o`r ~~d_ - 3 cry' yy _ - Sr 925x,_ $0.3 7266 ~ l~ot~t;has@aclzbrary org a' ;;s Phone Erriail_ ...t J.. i L; r .:rte ~'E- - ~ y t' if v q, Ix,'~ - I attest that the~appli~ant agency and~~o~-~organizanon~agree to~~Yvo%,~ c~bllaborati~iely to implement the pr osed pro1ect~proas dent ]n the-FY24f~1 ~i l~ $?~fchiig<a~~plication. .r,~ - r.r'" 34'x'' Executive Due ~ - ~..4 Project/Program Contact Person Date a',r. acln av~o~°~ Internal Revenue Service Department of the Treasury P. O. Box 2508 Date: July 21, 2006 Cincinnati, OH 45201 Person to Contact: P;X1S COMMUNITY HEALTH INC Ms. Wallace 31-04021 4361 RAILROAD AVE Customer Service Specialist PLEASANTON CA 94566-6611 619 To11 Free Telephone Number: 877-829-5500 Federal Identification Number: 94-2232394 Dear Sir or Madam: This is in response to your request of July 21, 2006, regartling your organization's tax- . exempt status. In December 1972 we issued a determination letter that recognized your organization as exempt from federal income tax. Our records indicate that your organization is currently exempt under section 501(c){3} of the Internal Revenue Code. Our records indicate that your organization is also classified as a public charity under sections 509(a)(1) and 170(b)(1)(A}(vi} of the internal Revenue Code. Our records indicate that contributions to your organization are deductible under section 170 of the Code, and that you are qualified to receive tax deductible bequests, devises, transfers or gifts under section 2055, 2106 or 2522 of the Internal Revenue Code. if you have any questions, please call us at the telephone number shown in the heading of this letter. Sincerely; Janna K. Skufca, Director; TE/GE Customer Account Services