Loading...
HomeMy WebLinkAboutChildren's Services Council of Broward County - Public Financial ReportPopular Annual Financial Report A YEAR OF CARING AND CONNECTION 6600 WEST COMMERCIAL BLVD, LAUDERHILL, FL 33319 | 954-377-1000 | INFO@CSCBROWARD | CSCBROWARD.ORG FISCAL YEAR ENDED SEPTEMBER 30, 2021 1 | Page TABLE OF CONTENTS Introduction 2 Message from the President, CEO 4 Organizational Structure 5 Budget and Fiscal Policy 6 Governmental Fund Financial Information 8 Government-Wide Financial Activity 9 Where the Money Comes From 10 Where the Money Goes 11 Economic Conditions & Outlook 12 2 | Page INTRODUCTION About the CSC The Children's Services Council of Broward County (CSC) is an Independent Special Taxing District established by the voters of Broward County, Florida, on September 5, 2000. The CSC's mission is to provide the leadership, advocacy, and resources necessary to enhance children's lives and empower them to become responsible, productive adults through collaborative planning and funding of a continuum of quality care. The statute allows the Council to levy taxes of up to $0.50 per $1,000 of the assessed property tax value to accomplish this task. The CSC is not a component unit of any other governmental unit, nor does it meet the criteria to include any governmental organization as a component unit. The district's boundaries are coterminous with the boundaries of Broward County, the second most populated County in the state of Florida. An estimated 1.94 million people live in Broward County, of which an estimated 408,318 or 21% are children under 18 years old. Broward County is one of the most racially diverse counties in Florida, with 34.8% White Non-Hispanic, 30.20% Black Non- Hispanic, 31.00% Hispanic or Latino, and 4.0% Asian and other races. The County is flourishing with cultural and multi-ethnic diversity; 34% of the population is foreign-born compared to 13% nationwide (Census: 2020). Governing Board - The Council (as of 9/30/21) The eleven-member Council comprises five (5) individuals recommended by the Broward County Board of County Commissioners and appointed by the governor. Six (6) members are appointed by virtue of the office or position they hold within the community. Council Members are responsible for setting policies, prioritizing, and approving program and administrative funding. Each member brings an understanding of the diverse and multi-cultural needs of the Broward community and a firm commitment to improving the welfare of children and their families. 3 | Page About the Popular Annual Financial Report (PAFR) This report offers a simplified overview of the financial position of the Children's Services Council of Broward County to further enhance transparency and public awareness. It is presented in a logical format, which is easily understood by the public and other interested parties who do not have a background in public finance. Information for this report was extracted from the Children's Services Council's Annual Comprehensive Financial Report for the fiscal year ended on September 30, 2021. The Annual Comprehensive Financial Report outlines the CSC's financial position and operating activities for the year and conforms to generally accepted accounting principles (GAAP). Click on the link for more information about the Annual Comprehensive Financial Report. Financial Reporting Awards Award for Outstanding Achievement in Popular Annual Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the Children's Services Council of Broward for its Popular Annual Financial Report for the fiscal year ended September 30, 2020. This was the second year that the CSC received this award. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for the preparation of state and local government popular reports. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA to determine its eligibility for another award. Certificate of Achievement for Excellence in Financial Reporting The Children's Services Council of Broward County's Annual Comprehensive Financial Report for the year ended September 30, 2020, was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). This was the 19th consecutive year that the CSC has received this highest form of recognition for excellence in state and local government financial reporting. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 4 | Page MESSAGE FROM THE PRESIDENT/CEO      Dear Citizens of Broward County:  We are pleased to present the Popular Annual Financial Report (PAFR) for  the Children's Services Council of Broward County for the year ended  September 30, 2021. The PAFR summarizes the CSC's financial activities and  operating results so that the reader can more easily understand them.  Information presented in this report was obtained from the Annual  Comprehensive Financial Report (ACFR). The ACFR is prepared in accordance  with Generally Accepted Accounting Principles (GAAP) and was audited by the firm  Caballero, Fierman, Llerena & Garcia, LLP, receiving an unmodified opinion or "clean opinion." An  unmodified opinion means the Council's basic financial statements for the fiscal year ended September  30, 2021, are fairly presented in conformity with GAAP.   The PAFR, however, was not audited. The 5‐year trend condensed statements presented in this report  are presented on a non‐GAAP basis and do not include all the required financial statement  presentations and note disclosures. The PAFR is intended to simplify, not replace, the Annual  Comprehensive Financial Report. Copies of the PAFR and Annual Comprehensive Financial Report may  be requested from the Finance Department by calling (954) 377‐1000. The documents are also  available in electronic format on the CSC's website at: www.cscbroward.org.  This was a tough year, and the pandemic has definitely taken a toll on Broward's children and families,  the nonprofits, and our staff. Still, I believe there is robust evidence that our work over the year helped  alleviate some of the hardship. While working from home, our communication feedback loops  remained strong, and our culture of flexibility, responsiveness, and excellence were effective in  keeping our organization and the child‐serving agencies connected and functioning. Our mantra, "We  don't succeed unless the providers succeed, and the providers don't succeed unless the children and  families succeed," was truly manifested this year.    I extend sincere appreciation to the staff of the CSC, who provided countless hours of research in the  preparation and production of this report and the day‐to‐day work of the CSC. Special thanks go to the  Council Members for their vision, expertise, and dedicated service and support.      Sincerely,      Cindy Arenberg Seltzer President, CEO   5 | Page ORGANIZATIONAL STRUCTURE Our Staff The CSC has established a strong leadership role within the child-serving community and continues to build partnerships and programs that emphasize prevention. CSC's motto, "Our Focus is Our Children," guides the work of the CSC and is evidenced every day through staff's single focus on providing leadership, advocacy, and resources for children and families in need. 6 | Page BUDGET AND FISCAL POLICY The Budget Process By statute, the Council must submit a tentative budget and millage rate to the Broward County Commission by July 1. Once the Property Appraiser's Office determines the final property tax values, the Council must hold two public hearings in September as required under the Truth in Millage (TRIM) Act. Each year, following the required disclosures and the conduct of hearings for taxpayer comment, the Council Members set the final tax rates and adopt a budget. How Much Did the Average Homeowner Pay for The Children's Services Council? The average assessed value of a single-family home in Broward County was approximately $292,740 in 2021. Even though home values have steadily increased over the last five years, the CSC's millage rate has remained steady at .4882, or just under 49 cents of every $1,000 of assessed taxable value. Table 1 depicts the estimated taxes that would have been paid to the CSC by the average single-family homeowner over the last five years. In 2021 the average homeowner would have paid $143 for the year, approximately $2.75 per week, which is less than the cost of a kid's happy meal! Table 1. Year Average Assessed Home Value (AAV)* Change In AAV Tax Rate Paid to CSC Change in Dollars Paid 2021 292,740 5% 0.4882 $143 $7 2020 278,639 5% 0.4882 $136 $6 2019 265,891 5% 0.4882 $130 $7 2018 252,512 6% 0.4882 $123 $6 2017 239,059 6% 0.4882 $117 $7 * Source: Broward County Property Appraiser Note: The average assessed home value is the average value of a single-family home in Broward County. All values are assessed as of July 1, each tax year. Homestead exemptions, when applied, would decrease the AAV resulting in lower taxes paid. Property values are determined by the Property Appraiser on January 1.Program budget discussions are held by the Council in May. Preliminary values received from Property Appraiser June 1. Total Tentative Budget approved at June Council meeting. Final values are received from Property Appraiser July 1. TRIM hearings are held in September. Fiscal year begins on October 1. 7 | Page Budgetary Comparisons-General Fund The CSC's budget for 2020-2021 was $111.2 million and included a $3.5 million budget carry forward from the prior fiscal year and $6.6 million of fund balance. The Council increased the 2020-2021 fiscal year budget for needed programs using this $10.1 million without raising the millage rate. Actual revenues received were $0.1 million more than budget. Figure 1. Figure 2. Due to the continued effects of the COVID-19 pandemic, total actual expenditures were $30 million less than the budgeted $111.2 million. The pandemic is lasting much longer than many thought it would and has disrupted service delivery for the providers resulting in a significant underutilization of the contracts. $10.1 $7.8 $6.8 $5.3 $5.4 $101.3 $98.2 $90.9 $84.8 $77.8 $- $20 $40 $60 $80 $100 $120 2021 2020 2019 2018 2017 Mi l l i o n s Budget to Actual Revenues and Budgeted Fund Balance for the Last Five Years Budgeted Revenue Budgeted Fund Balance Actual Revenue $111.2 $105.6 $96.6 $89.4 $82.6 $81.2 $81.8 $84.3 $82.6 $75.7 $- $20 $40 $60 $80 $100 $120 2021 2020 2019 2018 2017 Mi l l i o n s Budget to Actual Expenditures for the Last Five Years Budget Actual 8 | Page GOVERNMENTAL FUND FINANCIAL INFORMATION Like other special districts, state, and local governments, CSC uses fund accounting to ensure compliance with finance-related legal requirements. Governmental fund information helps determine the financial resources available to finance the CSC's programs in the near term. In the fiscal year 2020-2021, Fund Balance increased by $20.1 million to $61.5 million, primarily due to the impact of COVID-19 on the ability of the nonprofits to deliver the contracted services. Tables 2 and 3 below show the General Fund financial information over the last five years. Table 2. 2021 2020 2019 2018 2017 Assets: Current Assets 70,150,858$ 51,578,936$ 31,514,108$ 27,418,888$ 25,790,002$ Total Assets 70,150,858$ 51,578,936$ 31,514,108$ 27,418,888$ 25,790,002$ Liabilities and Fund Balance: Total Liabilities 8,569,020 10,108,626 6,438,722 8,988,467 9,598,528 Fund Balance: Nonspendable 247,417 185,322 228,307 225,777 187,407 Committed 3,000,000 3,000,000 - - - Assigned 19,414,037 10,293,454 7,824,448 6,815,653 5,470,758 Unrestricted 38,920,384 27,991,534 17,022,631 11,388,991 10,533,309 Total Fund Balance 61,581,838 41,470,310 25,075,386 18,430,421 16,191,474 Total Liabilities & Fund Balance 70,150,858$ 51,578,936$ 31,514,108$ 27,418,888$ 25,790,002$ Condensed Balance Sheet - Governmental Funds CSC's total assets exceeded liabilities as at September 30, 2021 by $61,581,838 (Fund Balance). Table 3. 2021 2020 2019 2018 2017 Total Revenues 101,347,335 98,163,429 90,924,224 85,943,806 79,008,364 Total Expenditures 81,235,807 81,768,505 84,279,259 83,704,859 76,772,360 Net Change in Fund Balance 20,111,528 16,394,924 6,644,965 2,238,947 2,236,004 Condensed Operating Satement Governmental Funds CSC's total revenues exceeded expenditures by $20,111,528 in fiscal year 2021 (change in Fund Balance). 9 | Page GOVERNMENT-WIDE FINANCIAL ACTIVITY The Government-wide financial statements are designed to provide readers with a broad overview of the CSC's finances like a private sector business. These statements offer both long-term and short-term information about the CSC's overall financial condition. Tables 4 and 5 below show that the CSC's financial health or position has improved steadily over the last five years. In fiscal year 2021 total net position increased by $20.1 million dollars. Table 4. 2021 2020 2019 2018 2017 Assets: Current and other assets 70,150,858 51,578,936 31,514,108 27,118,888 25,490,002 Capital assets 6,665,223 7,004,338 7,335,452 7,510,054 7,284,713 Total assets 76,816,081 58,583,274 38,849,560 34,628,942 32,774,715 Deferred outflows of resources 2,587,456 2,919,467 2,631,963 2,851,488 2,701,600 Liabilities: Current 8,688,567 10,228,669 6,539,718 8,782,047 9,377,278 Noncurrent liabilities 4,638,569 9,838,531 7,917,109 6,922,984 6,319,790 Total liabilities 13,327,136 20,067,200 14,456,827 15,705,031 15,697,068 Deferred inflows of resources 4,713,146 200,362 532,126 616,905 363,813 Net Position: Invested in capital assets 6,665,223 7,004,338 7,335,452 7,510,054 7,284,713 Restricted for building acquisition 3,000,000 3,000,000 - - - Unrestricted 51,698,032 31,230,841 19,157,118 13,648,440 12,130,721 Total Net Position 61,363,255 41,235,179 26,492,570 21,158,494 19,415,434 Condensed Statement of Net Position CSC's total assets and deffered outlflows exceeded liabilities and deffered inflows as at September 30, 2021 by $61,363,255 (net position). Table 5. 2021 2020 2019 2018 2017 Expenses: Program Services 74,325,805 75,536,930 78,763,252 77,687,387 71,587,846 General Administration 6,893,454 7,884,027 6,826,896 6,512,032 6,052,262 Total Expenses 81,219,259 83,420,957 85,590,148 84,199,419 77,640,108 Revenues: Program Revenues - - - 1,112,377 1,209,290 General Revenues 101,347,335 98,163,429 90,924,224 84,831,429 77,799,074 Total Revenues 101,347,335 98,163,429 90,924,224 85,943,806 79,008,364 Change in Net Position 20,128,076 14,742,472 5,334,076 1,744,387 1,368,256 Net Position- beginning*41,235,179 26,492,707 21,158,494 19,414,107 18,047,178 Net Position- ending 61,363,255 41,235,179 26,492,570 21,158,494 19,415,434 * Beginning Net Position was restated in 2017, 2018 and 2020 due to other post employment benefits and the Florida Retirement System pension adjustments. Condensed Statement of Activities CSC's total revenues exceeded expenses by $20,128,076 in fiscal year 2021(change in net position). 10 | Page WHERE THE MONEY COMES FROM The CSC's total annual revenue in the fiscal year 2020-2021 was $101.34 Million. Figure 3 below shows the allocation of revenues for the fiscal year 2020-2021. Figure 3.  Grant revenues totaled $1,323,315 and included $422,279 of State matching funds from the State of Florida Department of Children and Families and $901,036 grant funding from the Antiterrorism and Emergency Assistance Program (AEAP).  Investment earnings totaled $116,029, a notable 88% decrease from the prior year. The decline is due to lower interest rates that were earned on investments.  Miscellaneous revenue includes local foundation grants, support from local collaborative events, training registration, and other revenue. Miscellaneous revenue for the current year equals $1,597,406, which reflects a 30 % increase from the prior year.  Property taxes are the CSC's primary source of revenue. For 2020-2021, property tax revenue significantly increased by $5.1 million from 2019-2020 due to a 4.7% increase in property values. Total property tax revenue was $98.31 million. $50 $60 $70 $80 $90 $100 $110 2021 2020 2019 2018 2017 Grant $1,323,315 $2,794,195 $152,956 $1,365,968 $1,398,945 Investment Earnings 116,029 955,209 1,388,744 857,633 419,042 Miscellaneous 1,597,406 1,232,535 1,318,978 1,288,106 1,199,909 Property Taxes 98,310,585 93,181,490 88,063,546 82,432,099 75,990,468 Mi l l i o n s Revenues Property Taxes Miscellaneous Investment Earnings Grant 11 | Page WHERE DID THE MONEY GO? Program Services and Support accounted for 91.5 cents of every dollar spent at the CSC in 2020-2021. General Administration and Capital Outlay accounted for 4.5 cents, while 4 cents were spent on Tax Collector and Community Redevelopment Agency (CRA) fees. Annual expenses totaled $81.2 million in the fiscal year 2020-2021. Figure 4. 2020-2021 Expenses  Tax Collector and Community Redevelopment Agency (CRA) fees decreased by 9% or $277,697 for $3.2 million. The CRA fees were reduced by $282,452 due to one particularly large CRA sunsetting; however, in other areas of the County, the CRA values continue to increase. The Tax Collector fees are based on the operating budget of the Property Appraisers Office and are allocated among the taxing districts. These fees slightly increased by $4,755 or .8% from the prior year.  General Administration and Capital Outlay expenses in 2021 totaled $3.5 million and represented 4.5% of total expenses demonstrating the Council's fiscal prudence, a very resourceful staff, and effective use of technology. The CSC continues to focus on providing services throughout the community with minimal administration costs.  Program Services and Support expenses totaled $74.3 million in 2020-2021, representing 91.5% of the CSC's total expenses. The CSC strives to maximize services for Broward's children and families and has carefully used fund balance to maintain or grow needed programs while maintaining a high level of accountability to the taxpayer. Due to COVID-19 disrupting normal service delivery, expenses for Program Services decreased, with the provider agencies drawing down only 71% of the budget. Figure 5 below shows the allocation of these expenses amongst the various service goal areas. 91.5% Program Services & Support 4.5% General Administration & Capital Outlay 4.0% Tax Collector & CRA Fees 12 | Page Figure 5. The CSC's Annual Performance Report for the FY 2020-2021, provides an in-depth analysis of the services provided during the year and the related outcomes in the above service goal areas. We encourage you to take some time to review how your tax dollars benefited the community. ECONOMIC CONDITIONS AND OUTLOOK While the initial effects of the COVID-19 pandemic negatively affected the local economy, and the pandemic continues to wreak havoc in the public health sector, there are indicators of an economic recovery underway. With the mild south Florida climate and companies transitioning to a remote working environment, there was an infusion of young professionals relocating to the area. Additionally, there were 14 targeted industry companies that relocated or expanded to the area, resulting in the creation of 2,482 high-value jobs. 13 | Page Major Initiatives The CSC engages in various community partnerships and system-building initiatives. Major initiatives in 2020-2021 included but was not limited to: • Hunger/Food insecurity. Recognizing the hunger needs throughout the community, the CSC works closely with various community partners to prevent childhood hunger and funds an array of hunger-related programs. Since the ongoing pandemic created distribution challenges, creative ways were used to get the food to the families in need, such as drive-through events, home delivery, socially distanced mobile pantries, etc. Expenditures for the various food programs totaled $488,600. • Back to School Extravaganza. The CSC and partners distributed 10,000 backpacks, 2,000 pairs of shoes, and 3,000 uniforms through funded providers and school social workers. The recipients of the backpacks are students identified by School District Social Workers as being economically disadvantaged and often housing insecure. The new backpacks contained grade- appropriate school supplies and gently used books. The CSC cost of the event was $95,700, with $94,400 donated from the community. • Broward Reads for the Record. Broward Reads for the Record is a national event created by JumpStart. This year's event took place on October 28, 2020, with 527 volunteers reading virtually to four- and five-year-old children who also received a copy of the book. The CSC and other partners expended $124,200 along with $8,900 in donations and purchased 40,000 books provided to children to begin their library collection. Feedback from volunteer readers and the schools was overwhelmingly positive. Prepared by CSC Financial Management If you would like this publication in an alternate format, please call (954)-377-1000 or email us at info@cscbroward.org Vision: The children of Broward County shall have the opportunity to realize their full potential, their hopes and their dreams supported by a nurturing family and community. Mission: To provide the leadership, advocacy, and resources necessary to enhance children’s lives and empower them to become responsible, productive adults through collaborative planning and funding of a continuum of quality care.