Asian Youth Center - RFP No. 2020-08 - Public Service Application for CDBG Food and Nutrition Program FINAL r
--11001
ASIAN YOUTH CENTER
SERVING ALL YOUTH&FAMILIES
June 29, 2020
City Clerk's Office
City of Rosemead
8838 E. Valley Blvd.
Rosemead CA 91770
Dear Reviewer:
Asian Youth Center(AYC), would like to apply for the CDBG-CV Food and Nutrition Program.
Please find our full proposal attached.
We would like to apply for $30,000 to run the proposed Emergency Food Program, but we
would be willing to discuss being the Lead Agency and Fiscal Sponsor for other non-profit
organizations as we have a great deal of experience with the administration of government
contracts including sub-contracting.
I, Michelle Freridge, am authorized as the legal representative of AYC to bind the corporation
and I can be reached at michelle.freridge@aycla.org or via mobile phone at 626-646-4855.
Please feel free to reach out to me if you have any questions, or to discuss the proposed program.
Thank you for your consideration in this matter.
Sincerely,
Michelle Fr: id.-
Executive Director
Asian Youth Cente
100 West Clary Avenue
San Gabriel, CA 91776
Ph: 626-646-4855
Email: Exec@asianyouthcenter.org
•
ASIAN YOUTH CENTER 100 WEST CLARY AVENUE PHONE:626-309-0622
WWW.ASIANYOUTHCENTER.ORG SAN GABRIEL CA 91776 FAX:626-309-0717
APPLICATION oSEteADfta,
FOR CDBG-FUNDED
PUBLIC SERVICE ACTIVITIES
Agency: Asian Youth Center(AYC)
Address: 100 West Clary Avenue, San Gabriel CA 91776
Telephone: 626-646-4855 E-mail: michelle.freridge@aycla.org
Contact Person/Title: Michelle Freridge, Executive Director
Federal Tax ID Number: 33-0383691 DUNS Number: 55-5952712
Program/Project Title: Emergency Food Program
Location of Proposed/Program Project: 100 West Clary Avenue, San Gabriel CA 91776
Amount of CDBG-CV funds requested for this project: $30,000- $100,000 (The$100,000
would be in case the City would like AYC to Act as the Lead Agency and Fiscal Sponsor in
partnership with other non-profit organizations.
Amount of Total Project Budget: $362,360 or$432,360 (with $70,000 passed through to
partner organizations)
Total Number of Persons who will directly benefit from this Project: AYC will provide a
minimum of 65 and a maximum of 120 low-income Rosemead City households per month (with an
estimated 4 people her household)with emergency food.
Number of unduplicated,LMI, Rosemead persons who will directly benefit from this
Project: 260—3,120 Although the total number of unduplicated residents will not be less than 260
and will not be more than 3, 120 because we do allow families to receive food if needed on a weekly, bi-
weekly, or monthly. However, some families may only use the service one.Although it is hard to
estimate unduplicated families, it is relatively easy to document and report after services are received.
Checklist of required documents that must be attached
Completed Application(All information must be complete on application to be p t-3
considered for funding including Federal Tax ID # and DUNS Number)
Xv Narrative on Organization/Agency (See attached instructions) 19.
JC Narrative on Project(See attached instructions) p 7
XCompleted Budget Sheet(Include line item costs associated to CDBG funds requested), p
Revenue Sheet and Certifications (Attached) 0
Qualifications of Program Administrator(2-page limit) z
Not required but may submit. Please note: these items may be requested later if selected to
receive funding: AYC will submit all these documents later Upon Request of the City.
r'(ivArticles of Incorporation/Bylaws p . Lel " t
1
Current Proof of non-profit determination, 501 (c)(3), unless furthering economic - ► 8- 15
development by way of microenterprises
List of Board of Directors (Please indicate Officers) p--
Organizational chart of the agency
Agency financial statement and copy of most recent audit e " 1 `
Certificate of Good Standing with the State
State and Federal Tax Determination Letters or other Third-Party verification that
agency is tax Exempt
Authorization from Board to request funds
Certificate of Insurance
All requests and submittals must be received by the City of Rosemead City Clerk's Office
by 10:00 a.m. on June 30, 2020. Your funding request should be submitted to:
City of Rosemead
City Clerk's Office
8838 E. Valley Blvd.
Rosemead, CA 91770
PROJECT BUDGET SHEET
Specific Cost CDBG Other Total
Item/description Amount Funds Amount
Requested Amount CDBG &
Other
Sources
To Be To Be 6,834
Food Determined Determined
To Be To Be 12,034
Bags & PPE Determined Determined
Deep Cleaning To Be To Be 47,176.36
Determined Determined
Facilities To Be To Be 12,000
Determined Determined
Personnel To Be To Be $202,285
Determined Determined
Indirect To Be To Be $47,265
Determined Determined
TOTAL 30,000 . $332,260.. $362,260
PROGRAM REVENUE
List all other program resources that have been secured for the program in which your organization
is applying for.
FUNDING SOURCE AMOUNT
CDBG from City of Rosemead $30,000 - $100,000*
CSBG from LA County $20,066
Funds from First Supervisorial District $10,000
Foundations $150,000
Individual donations & Fundraising Events
$152,294
TOTAL 362,360 - $462,360*
*If the City wants us to pass through $70,000 to other non-profit sub-contractors.
CERTIFICATIONS
I understand that no employee, board member, officer, agent, consultant, Subrecipient which are
receiving funds under a CDBG assisted program who have responsibilities with respect to the
CDBG activities or who participate in decision making process or have access to inside
information with regard to activities cannot obtain a personal or financial interest or benefit from
a CDBG assisted activity during their tenure or for one year thereafter(Federal Regulation 24 CFR
570.611). The City cannot reimburse for any payroll for board members of the agency.
/mo
Eyevorir- -011-01®16� �
Signature Position Date
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3
1) Organization/Agency narrative-recommendations for a good narrative include:
a) Mission and Vision Statement
The Asian Youth Center (AYC) exists to empower low-income, immigrant, and at-risk youth and
families, of all communities, to overcome barriers to success through culturally and linguistically.
competent education, employment, and social services. Our vision is to help all youth succeed
in school, at work, and in Life!
b) History of the organization/agency.
The Asian Youth Center (AYC) was founded in 1989 as the Asian Youth Project, by then City of
Monterey Park Councilwoman Judy Chu (founding Board President) and May L.To (founding Executive
Director)to address the needs of the Asian immigrant youth population in the San Gabriel Valley. Over
the last 30 years, AYC has expanded its scope to serve low-income, high-needs youth and families in
South Los Angeles, East Los Angeles and the Antelope Valley as well, while retaining our strong
connection with the Asian immigrant communities of the San Gabriel Valley. Our educational, social,
and employment services are culturally and linguistically (Chinese, English, Spanish, and Vietnamese)
competent, rigorously evaluated, and designed with evidenced-based principles.
c) Types of services the organization/agency currently provides.
In order to provide youth with prevention, intervention, skill development and all-around
support in home and in the community, AYC's programs are divided into four departments.
Youth & Family Services (YFS) programs are provided at school sites, community partner sites,
and in youth homes throughout the First, Second and Fifth Supervisorial districts of Los Angeles
County (this encompasses the Antelope Valley, East Los Angeles, South Los Angeles, and the
San Gabriel Valley.)The YFS programs are funded by the Los Angeles County Probation
Department and the Department of Health Services and seek to support positive youth
development and connection to the community through social emotional learning and case
management services. AYC helps youth and young adults envision a future where they can
fulfill their potential and then help them build the supports and connections,they need to
achieve it. In 2019,the YFS Programs served 957 youth,young adults and parents/family
members and posttests demonstrated significant increases in skills and self-esteem.
Educational Enrichment Services (EES) provides low-income and immigrant youth in the West
San Gabriel Valley, ages 5-14 with much needed after-school and summer school programming.
The programs have an academic focus on supplemental instruction in English Language Arts and
Math, as well as programming in STEAM, Health and Arts. Participating youth receive
homework assistance in all academic subjects, college and career preparation, recreation,
mentoring and participate in positive youth development activities. English scores improved an
average of 30%, Math scores by an average 20%.These programs are registered Heritage
Schools providing Chinese Language and other cultural education components as well. Last
W
year, AYC served 541 unduplicated individuals through Educational Enrichment Services
including the Emergency Food Program.
Employment Services increase employment success among low-income youth ages 14-24.
Services provide youth with access to and support for the completion of educational and
vocational assessment,job skills development, vocational training, paid work experience, and
job placement. Employment Services programs helped 85 youth in obtaining gainful
employment and achieving long-term success in the workplace by removing barriers and
providing opportunities to re-enroll in education and/or vocational school.
Community Outreach&Education in Chinese and Spanish provided services to 2,175 individuals
in 2018-2019. Additionally, it reached more than 25,000 people at outreach events and through
in-language press coverage. It is the department's mission to ensure that community members
receive up-to-date and linguistically appropriate information about issues that affect them on a
variety of topics including, but not limited to:Voter Registration; Parent Education; Medi-Cal and
Medicare and Cal FRESH eligibility; Domestic Violence; Immigration & Naturalization; Disaster
Preparedness & Relief; Women's Health & Mental Health; Health Care Access; and Water
Conservation.
d) Number of/Demographics of the individuals served.
In 2018-2019, AYC served 1,583 unduplicated individuals with services and reached more than
25,000 community members through community outreach and education. Seventy-Five percent
(75%) of individuals served lived in low-income households.
Of those individuals served, 56%were youth (ages 0-24) and 44%were adults including parents
and custodial grandparents. Of the 888 unduplicated youth served, 4%were ages 0-5, 23%
were ages 6-11 (elementary school), 5%were ages 12-13 (middle school), 51%were ages 14-17,
17%were ages 18-24. Sixty-four percent (64%) of youth were male, and 36% of youth were
female. Thirty percent (30%) of youth served were assessed as at-risk, 71%were on probation,
9%were in Foster Care, and 2%were homeless. Youth are considered "at-risk" when they have
been assessed with multiple risk factors that may include being from a low-income family, living
in a high crime or gang identified neighborhood, failing in school, learning English as a second
language, and/or engaging in risky or delinquent behavior.
Geographically, 62% of services were provided in the Fifth Supervisorial District (45% in the San
Gabriel Valley and 17% in the Antelope Valley). Twenty-five percent(25%)of services were
provided in Supervisorial District 1 (East Los Angeles to Pomona, including the City of
Rosemead), and 13% of services were provided in Supervisorial District 2 (South Los Angeles).
Thirty-three percent (33%) of all people served identified as Asian Pacific Islander,while 32%
identified as Hispanic or Latino, 16% as African American, 4% as Caucasian, and 3%as mixed
race. Twelve percent (12%) identified as other or their information is unknown. Sixty percent
(60%) of individuals receiving services spoke English, 27% spoke Chinese (Mandarin or
5
Cantonese), 10% spoke Spanish, 2% spoke Vietnamese, and 1%spoke another language (Arabic,
Burmese, and Lao).
2) Program/project narrative should include the following elements:
a) Brief description of proposed program/project including the need or problem to be
addressed.
AYC requests$30,000 in general operating support specifically to be used as needed to buy
food, materials & supplies, Personal Protective Equipment, pay for cleaning and pay staff to
scale up our current emergency food program to meet the needs of the low-income members
of the Rosemead community we will be serving over the next year during the ongoing COVID-19
Social Distancing Crisis. AYC has included a proposed budget but is willing to modify that budget
to meet City and CDBG guidelines as needed.
AYC's Emergency Food Program has been in operation for more than 10 years but has remained
relatively small -feeding 50 families each month with an estimated 30 meals worth of mostly
non-perishable groceries. Last Year, AYC's entire program served only 259 unduplicated
families, although some of those families were served once a month for 12 months, and some
only once. Due to the COVID-19 Crisis we have seen a huge increase in need for Emergency
food (from 60-70 families per month in January and February 2020 to 700-800 families per
month in April and Mary 2020. We anticipate that in order to continue to feed 600-1,000
families per month over the next fiscal year we will need an annual program budget of
$600,000. Since we anticipate that a minimum of 5% and a maximum of 15% of families served
will reside in the City of Rosemead we are asking for$30,000 to support services specifically for
the residents of the City of Rosemead and we will track and report specifically on those
residents and the services they received if funded.
Fifteen percent (15%) or 105-120 of the 700-800 families served in April and Mary were
residents of the City of Rosemead. We anticipate the need for the program will continue and.
perhaps even grow over the next year. We anticipate the need to feed 60-120 low-income
families who are residents of the City of Rosemead monthly weekly and our current program
simply does not have the resources to meet that need without additional financial support.
b) Population to be served and/or area to be benefited.
AYC will provide a minimum of 65 and a maximum of 120 low-income Rosemead City
households per month (although the total number of unduplicated residents will not be less
than 260 and will not be more than 3, 120 because we do allow families to receive food if
needed on a weekly, bi-weekly, or monthly basis) with emergency food. This program will
benefit the low-income residents of the City of Rosemead who might otherwise go hungry, not
only by providing food but also by increasing the likelihood that they will be able to comply with
the Safer At Home Order and social distancing best practices, slowing the spread of the virus
through the low-income communities as well.
c) Describe the work to be performed including the activities to be undertaken or the
services to be provided.
AYC will order/buy/transport food; sort and package the food into distribution units that hold
30 meals for each household; and schedule by appointment only pick-up appointments with
low-income families on a first come first served basis. AYC staff will collect and document all
income and residency qualifications which we are trained to do currently for CSBG funded
Emergency Food Programming. AYC staff will conduct outreach to Rosemead residents in
English, Chinese, and Spanish. AYC will submit monthly reports and invoices to the City of
Rosemead in compliance with CDBG requirements.
For$30,000, AYC will provide a minimum of 65 and a maximum of 120 low-income Rosemead
City households per month (although the total number of unduplicated residents will not be
less than 260 and will not be more than 3, 120 because we do allow families to receive food if
needed on a weekly, bi-weekly, or monthly basis) with emergency food by implementing the -
following.
d) Describe any partnerships to be used to maximize efforts and leverage funds.
AYC buys food from the Los Angeles Regional Food Bank which is also a 501(c)3 and allows us to •
keep the cost of food very low. We also receive in-kind donations of food and other supplies
from individuals and businesses.
AYC is interested in partnering with churches or other non-profit organization within the City of
Rosemead. However, these partnerships will have to be worked out in the future as they have
not been identified or established at this time.
• If appropriate, AYC would be willing to be the Fiscal Sponsor for and sub-contract to other non-
profit agencies. AYC has experience in sub-contracting government funds that includes training,
inspecting, and assisting non-profits who have never been responsible for government funding
in how to manage and implement government funds.
AYC understands that all potential partnerships would be subject to City approval.
e) Describe goals/objectives and the implementation schedule. Include the proposed
program/project budget specifying line item costs such as personnel, supplies, etc.
AYC will begin utilizing funds upon completion of a full contract with the City and
communication of City approval to proceed. AYC will use all funds within 1 year and will be
consistent with City and CDBG requirements for accounting, documentation, reporting, Etc.
AYC will order food, sort and package the food into distribution units that hold 30 meals for
each household and schedule by appointment only pick-up appointments with low-income
families on a first come first served basis.
3
AYC staff will collect and document all income and residency qualifications which we are
trained to do currently for CSBG funded Emergency Food Programming. AYC staff will conduct
outreach to Rosemead residents in English, Chinese, and Spanish.
AYC will submit monthly reports and invoices to the City of Rosemead in compliance with all
City and CDBG guidelines.
AYC will provide a minimum of 65 and a maximum of 120 low-income Rosemead City
households per month (although the total number of unduplicated residents will not be less
than 260 and will not be more than 3, 120 because we do allow families to receive food if
needed on a weekly, bi-weekly, or monthly basis) with emergency food by implementing the
following:
1. Weekly food orders @ LA Regional Food Bank for 2,000 gross lbs. of food (52 weeks x
$800= $41,600)
2. Bags for food distribution (52 weeks x 800 =41,600 X$164.28 per/1000= $6,834)
3. Weekly Facility deep clean (52 weeks x$907.18= $47,176.36)
4. PPE estimated at $100 per week x 52 weeks = $5,200
5. Facilities costs, utilities, Etc. estimated at$1,000 per month x 12 months $12,000
6. Staff time to pick-up, unload, sort, and distribute food. Staff time is required to schedule
both pick-ups and drops-offs (to high risk families) of food in a spread-out manner that
avoids close personal contact and is consistent with social distancing to keep staff and
clients safe.
1 Program Director x 20 hrs. x 52 weeks x$34.45 = $35,828 + 21% benefits at$7,523.88
_$43,351.88
1 Program Coordinators x 40 hours x 52 weeks x$21 = $43,680+ 21% benefits at
$9,172.80= $52,852.80
6 Program Assistants x 20 hrs. each x 52 weeks x$17 per hour=$106,080
Total Personnel: $202,285
Sub-Total Direct Costs: $315,095
Indirect Costs @ 15% including HR, fiscal, administration, Etc. =$47,265
GRAND TOTAL(Direct & Indirect): $362,260 *If acting as a Fiscal Sponsors and passing
through an additional $70,000 in CDBG Funds then the budget will be$432,260
f) Discuss the intended staffing for the program/project.
AYC proposes to implement this program expansion utilizing current staff(re-assigned from the
after-school and other programs that have been suspended) at our current facility (100 W.
Clary Avenue, San Gabriel, CA 91776) as well as in connection with potential partners in the City
to Rosemead to be developed. Current staff are bi-lingual in English and either Spanish or
Chinese.
AYC's Executive Director, Michelle Freridge, is responsible for overall oversight and reports to a
Board of Directors. Ms. Freridge completed a B.A. at Michigan State University•and a master's
degree in Public Administration at Western Michigan University before moving to Southern
California in 1999. After more than 20 years of direct service, development, management, and
contract compliance work in the non-profit sector, she attended Loyola Law School's evening
program and was admitted to the California Bar in 2011. As the Executive Director of the Asian
Youth Center (AYC) since 2012, she leads a 30-year-old community-based non-profit
organization that provides educational, employment and social services for more than 1,500
individuals annually in Los Angeles County. Michelle has dedicated her continuing legal
education in non-profit law matters and helps community groups with non-profit start-up,
strategic planning, and other challenges. Ms. Freridge is an Adjunct Professor at University of
the West, where she teaches MBA classes with a non-profit focus including non-profit finance.
Program Director, Nicholette Espinosa: (With Organizational Operations duties including
facilities, vehicles; Information Technology) Nicholette Espinosa is currently the Director of
Educational Enrichment & Employment Services at AYC and would be the Program
Administrator for the proposed CDBG funded Emergency Food Program. Mrs. Espinosa is a
cleared multiple subject credentialed teacher in the state of California. Mrs. Espinosa joined
AYC in 2012 and was promoted to the Director of Educational Enrichment Services in January
2013 and to Director of both Educational Enrichment Services & Employment Services in 2018.
She oversees all after-school educational and employment programs. She has more than
20 years of experience educating and managing youth programs. In addition to her program
oversight responsibilities, Mrs. Espinosa has taken on responsibility for AYC operational
functions as well including all vendors and tasks associated with AYC facilities (three buildings
and four rented offices), fleet (6 minivans), and Information Technology. In addition, Mrs.
Espinosa provides support for fundraising events and grants. She is bi-lingual in English and
Spanish.
g) Funding requested must be used to support coronavirus response.This will be highly
scrutinized. Describe how the request will specifically prevent, prepare for or
respond to the coronavirus.
AYC has scaled up the Emergency Food Program in response to the increased need for food
caused by the COVID-19 Crisis. We have also implemented full Personal Protective Equipment
(PPE) use including masks, gloves, aprons, and extensive cleaning that meets all OSHA and
Department of Health Guidelines. In addition, we have implemented food pick-up by
appointment only using social distancing and other best practices to reduce the spread of
COVID-19. Finally, Emergency Food supplies help low-income families shelter at home, also
reducing the spread, because without the Emergency Food many would have to leave home to
acquire the needed food to feed their families—even if it meant violating social distancing
recommendations. AYC understands and is willing to comply with and support
•
9
dCTO: A387211
FILE®
In the office of the Secret, of State
of the State of California
`i6 TD7er MAN
4 1990 o -
•
MARCH FONG EU, Secreta of State
CERTIFICATE OF AMENDMENT
OF
ARTICLES OF INCORPORATION.
JUDY CHU AND KENNETH FONG certify that:
1. They are the chairperson and the secretary,
respectively, of the ASIAN YOUTH PROJECT, a
California Corporation, California Corporation number
1469079.
2. Article I of the articles of incorporation of this
corporation is amended to read as follows:
I.
The name of this corporation is the Asian Youth
Center.
3 . The foregoing amendment of articles of incorporation
has been duly approved by the board of directors.
4. The Corporation has no members.
We further declare under penalty of perjury under the laws of
the State of California that the matters set forth in this
certificate are true and correct of our own knowledge.
DATE:
dr)ll90 %Ji C
CHU Chairperso
/(Zod,41
KENNETH FONG, cretary
KTF:ce 548.0
10
14690' 9
FILED
in the office of the Secretary of Stole
of it Stale of California
ARTICLES OF INCORPORATION
SEP 21 1989
OF
ASIAN YOUTH PROJECT 1 RCN let: EU, Sec eto,_of Stili:
I
The name of this corporation is the Asian Youth Project.
II
A. This corporation is. a nonprofit public benefit
corporation and is not organized for the private gain of nay
person. It is organized under the Nonprofit Public Benefit
Corporation Law for charitable purposes.
B. One specific purpose of this corporation is to
provide a full-service program to •serve the needs of Asian
youth in the San Gabriel Valley area who are experiencing
problems stemming from culture shock, family conflict and
other difficulties.
III
The name and address in the State of California of this
corporation' s initial agent for service of process is:
May L. To
Program Coordinator
Asian Youth Project
1111 South Atlantic Boulevard
Monterey Park, CA 91754
IV
A. This corporation is organized and operated
exclusively for charitable purposes within the meaning of
Section 501 (c) ( 3) of the Internal Revenue Code.
B.' No substantial part of the activities of this
corporation shall consist of carrying on propoganda, or
otherwise attempting to influence legislation, and the
corporation shall not participate or intervene in any
political campaign ( including the publishing or distribution
of statements) on behalf of any candidate for public office.
1`t
•
•
•
-
ARTICLES OF INCORPORATION
ASIAN YOUTH PROJECT
PAGE 3
DECLARATION
JUDY CHU and FRANCIS HONG declare under the penalty of
perjury under the laws of the State of California that they
are the president and vice-president, respectively, of the
Asian Youth Project, the unincorporated association referred
to in the Article of Incorporation to which this declaration
is attached, and that said association has duly authorized
its incorporation by means of said articles.
DATE: -D/gcl
07/(
CHU
esident
sian You h Project
IALC 14..A
FRANCIS HO
Vice President
Asian Youth Project
'Y 1
ARTICLES OF INCORPORATION
ASIAN YOUTH PROJECT
PAGE 3
DECLARATION
JUDY CHU and FRANCIS HONG declare under the penalty of
perjury under the laws of the State of California that they
are the president and vice-president, respectively, of the
Asian Youth Project, the unincorporated association referred
to in the Article of Incorporation to which this declaration
is attached, and that said association has duly authorized
its incorporation by means of said articles.
DATE:
yd_c,
g�
9eCHU
tsident
Sian You h Project
/11I -1M
FRANCIS HO
Vice President
Asian Youth Project
'3
ic Tl7 Department ofthet.St vici --
Q`�{II .Lj �7 Internal Revenue Service
P .O. Box 2508 In reply refer to : 0752861031
Cincinnati OH 45201 Dec . 30 , 2019 LTR 4168C 0
33-0383691 000000 00
00075604
BODC: TE
ASIAN YOUTH CENTER
100 CLARY AVE
SAN GABRIEL CA 91776-1374
021727
Employer ID number : 33-0383691
Form 990 required: YES
Dear Taxpayer :
We ' re responding Ito your request dated Dec. 20 , 2019 , about your
tax-exempt status .
We issued you a determination letter in December 1989, recognizing
you as tax-exempt under Internal Revenue Code (IRC) Section 501(c)
(03) .
We also show you're not a private foundation as defined under IRC
Section 509(a) because you' re described in IRC Sections 509(a) (1) and
170 (b) ( 1) (A) (vi) .
Donors can deduct contributions they make to you as provided in IRC
Section 170 . You' re also qualified to receive tax deductible bequests,
legacies, devises , transfers , or gifts under IRC Sections 2055, 2106,
and 2522.
In the heading of this letter , we indicated whether you must file an
annual information return. If you're required to file a return , you
must file one of 'the following by the 15th day of the 5th month after
the end of your annual accounting period:
- Form 990 , Rlleturn of Organization Exempt From Income Tax
- Form 990EZ,' Short Form Return of Organization Exempt From Income
Tax
- Form 99D-N , Electronic Notice (e-Postcard) for Tax-Exempt
Organizations Not Required to File Form 990 or Form 990-EZ
- Form 990-PF , Return of Private Foundation or Section 4947(a) (1)
Trust Treated as Private Foundation
According to IRC Section 6033(j ) , if you don 't file a required annual
information return or notice for 3 consecutive years, we' ll revoke
your tax-exempt status on the due date of the 3rd required return or
notice .
You can get IRS forms or publications you need from our website at
www. irs .gov/forms-pubs or by calling 800-TAX-FORM (800-829-3676) .
If you have questions , call 877-829-5500 between 8 a .m. and 5 p .m. , 'J
0752861031
Dec . 30 , 2019 LTR 4168C 0
33-0383691 000000 00
00075605
ASIAN YOUTH CENTER
100 CLARY AVE
SAN GABRIEL CA 91776-1374
local time, Monday through Friday (Alaska and Hawaii follow Pacific
time) .
Thank you for your cooperation.
Sincerely yours,
Teri M. Johnson
Operations Manager, AM Ops. 3
tS
AYC
BOARD OF DIRECTORS ROSTER 2020
President:Mary Wong First Vice President: Ricky Choi
Second Vice President:Bryan Chau Secretary: Eugene Harris
Treasurer:Raymond Ho Past-President:Helen Romero Shaw
Stephen Arce Eugene Harris
Vice President Chief of Police
Cathay Bank San Gabriel Police Department
Russell Arnold Raymond Ho
Educator Director of Investments
Downey Unified School District GE Properties Inc.
Lily Baba Bruce Lazenby
Community Member Executive Director of Business Development
Marissa Castro-Salvati Rose Hills Memorial Park and Mortuary
Government Relations Manager Steve Maekawa
Southern California Edison Chief Financial Officer
Adam Chang Garfield Medical Center
Attorney Damien Orozco
Kundani Chang Khinda Wilson LLP Owner& Founder
Henry Chang Iron Dog Fitness
VP,Branch Manager—Alhambra BC Sasha Perez
California Bank&Trust Student Engagement Manager
Bryan Chau The Campaign for College Opportunity
VP of Business Operations Helen Romero Shaw
Acceler8Networks Public Affairs Manager
Bruce Yu Chen Southern California Gas Company
Vice President Mary Wong
MYZ Financial &Insurance Services Chief Executive Officer
Ricky Choi Exact Tax
Community Relations Coordinator William Wu, J.D.
San Gabriel Valley Council of Governments Chief of Police
Compton Unified School District Police Dept.
Kenny Chung
Executive Vice President Elizabeth Yang
Hong Kong Realty Management Attorney
Law&Mediation Offices of Elizabeth Yang
Eileen Diamond
Chief Business Development Officer
San Gabriel Valley Medical Center
Updated—2.2020 )6
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INTERNATIONAL CPAs
ASIAN YOUTH CENTER
(A Nonprofit Organization)
FINANCIAL STATEMENTS
(with Independent Auditors' Report Thereon)
JUNE 30, 2019 AND 2018
ASIAN YOUTH CENTER
TABLE OF CONTENTS
Page
Independent Auditors' Report 1-2
Financial Statements
Statements of Financial Position as of June 30,2019 and 2018 3
Statement of Activities for the year ended June 30,2019 4
Statement of Activities for the year ended June 30,2018 5
Statements of Cash Flows for the years ended June 30, 2019 and 2018 6
Statement of Functional Expenses for the years ended June 30,2019 7
Statement of Functional Expenses for the years ended June 30, 2018 8
Notes to the Financial Statements 9-19
4 -a 18012 Sky Park Circle,Suite 200
�ttl Irvine,California 92614
tel 949-852-1600
fax 949-852-1606
INTERNATIONAL CPAs www.rjicpas.com
INDEPENDENT AUDITORS' REPORT
To the Board of Directors:
Asian Youth Center
San Gabriel, California
Report on the Financial Statements
We have audited the accompanying financial statements of Asian Youth Center (AYC or the Organization),
which compromise the statements of financial position as of June 30,2019 and 2018,and the related statements
of activities, cash flows and functional expenses for the years then ended, and the related notes to the financial
statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement,whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conduct our
audit in accordance with auditing standards generally accepted in the United States of America.Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether 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 auditor considers internal control relevant to the entity's preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly,we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
•
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
1
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Asian Youth Center as of June 30, 2019 and 2018, and the changes in its net assets and its cash
flows for the years then ended in accordance with accounting principles generally accepted in the United States
of America.
f 7 41„Xctiv.art. CMS.
Irvine, California
October 14,2019
2
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2019 ANI) 2018 •
2019 2018
Without Donor With Donor Without Donor With Donor
Restrictions Restrictions Total Restrictions Restrictions Total
ASSETS
Current assets
"Cash $ 1,198,937 $ 6,000 $ 1,204,937 $ 1,208,822 $ 3,223 $ 1,212,045
Accounts and grants receivable 275,128 - 275,128 241,185 - 241,185
Prepaid expenses 13,106 - 13,106 12,340 - 12,340
Total current assets 1,487,171 6,000 1,493,171 1,462,347 3,223 1,465,570
Other assets
Property and equipment,net 1,530,429 - 1,530,429 1,590,322 - 1,590,322
Deposits 1,700 - 1,700 1,700 - 1,700
Total other assets 1,532,129 - 1,532,129 1,592,022 - 1,592,022
Total assets $ 3,019,300 $ 6,000_ $ 3,025,300 $ 3,054,369 $ 3,223 $ 3,057,592
LIABILITIES AND NET ASSETS
Current liabilities
Accounts payable $ 34,891 $ - $ 34,891 $ 20,400 $ - $ 20,400
Accrued expenses 147,339 - 147,339 140,354 - 140,354
Deferred revenue 53,700 - 53,700 - -
• Long-term debt, current portion 12,706 - 12,706 17,639 - 17,639
Total current liabilities 248,636 - 248,636 178,393 - 178,393
Long-term debt, less current portion 443,457 443,457 685,451 685,451
Total liabilities 692,093 - 692,093 863,844 - 863,844
Net assets •
Without donor restriction:
Undesignated 2,277,207 - 2,277,207 2,140,525 - 2,140,525
Board designated reserve 50,000 - 50,000 50,000 - 50,000
2,327,207 - 2,327,207 2,190,525 - 2,190,525
With donor restriction: - 6,000 6,000 - 3,223 3,223
Total net assets _ 2,327,207 6,000 2,333,207 _ 2,190,525 3,223 2,193,748
Total liabilities and net assets $ 3,019,300 $ 6,000 $ 3,025,300 $ 3,054,369 $ 3,223 $ 3,057,592
9-5 The accompanying notes are an integral part of these financial statements.
3
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
Without Donor With Donor
Restrictions Restrictions Total
Revenue and support
Grants and contracts $ 1,845,453 $ - $ 1,845,453
Contributions 326,263 6,000 332,263
Program service fees - clients 226,359 - 226,359
Special Events 163,802 - 163,802
Costs of direct benefits to donors (51,638) - (51,638)
In-kind donations 52,420 - 52,420
Other income 23,269 - 23,269
Interest and dividends 496 - 496
Total revenue and support 2,586,424 6,000 2,592,424
Net assets released from restrictions 3,223 (3,223) -
Total revenue and support and
net assets released from restrictions 2,589,647 2,777 2,592,424
Functional expenses
Program activities 2,162,618 - 2,162,618
Management and general 166,136 - 166,136
Fundraising development 124,211 - 124,211
Total functional expenses 2,452,965 - 2,452,965
Change in net assets 136,682 2,777 139,459
Net assets, beginning of year 2,190,525 3,223 2,193,748
Net assets, end of year $ 2,327,207 $ 6,000 $ 2,333,207
The accompanying notes are an integral part of these financial statements.
4
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2018
Without Donor With Donor
Restrictions Restrictions Total
Revenue and support
Grants and contracts $ 2,031,905 $ - $ 2,031,905
Contributions 480,725 - 480,725
Program service fees - clients 244,968 - 244,968
Special Events 200,948 - 200,948
Costs of direct benefits to donors (42,061) - (42,062)
In-kind donations 45,700 - 45,700
Other income 7,930 - 7,930
Interest and dividends 923 - 923
Total revenue and support 2,971,038 - 2,971,037
Net assets released from restrictions 30,500 (30,500) -
Total revenue and support and
net assets released from restrictions 3,001,538 (30,500) 2,971,037
Functional expenses
Program activities 2,726,116 - 2,726,116
Management and general 249,370 - 249,370
Fundraising development 105,840 - 105,840
Total functional expenses 3,081,326 - 3,081,326
Change in net assets (79,788) - (30,500) (110,289)
Net assets, beginning of year 2,270,314 33,723 2,304,037
Net assets, end of year $ 2,190,525 $ 3,223 $ 2,193,748
The accompanying notes are an integral part of these financial statements.
5
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2019 AND 2018
2019 2018
Cash flows from operating activities:
Change in net assets $ 139,459 $ (110,289)
Adjustments to reconcile change in net assets to
net cash provided by (used in) operating activities:
Depreciation 105,123 99,536
Loss from disposals of donated properties - 10,845
Bad debt expense 10,000 -
Changes in operating assets and liabilities:
Accounts and grants receivable (43,943) 118,962
Prepaid expenses and deposits (766) 23,643
Inventory - (9,523)
Accounts payable 14,491 (58,620)
Accrued expense 6,985 (21,947)
Deferred revenue 53,700 (66,500)
Net cash provided by (used in) operating activities 285,049 (13,893)
Cash flows from investing activities:
Purchases of property and equipment (45,230) (5,600)
Net cash used in investing activities (45,230) (5,600)
Cash flows from financing activities:
Repayments on long-term debt (246,927) (18,119)
Net cash used in financing activities (246,927) (18,119)
Net decrease in cash (7,108) (37,612)
Cash, beginning of the year 1,212,045 1,249,657
Cash, end of the year $ 1,204,937 $ 1,212,045
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Income taxes -
Interest $ 20,928 $ 32,711
Supplemental disclosure of non-cash operating and investing
activities:
Donated computers reclassified from inventory
to property and equipment $ - $ 27,668
The accompanying notes are an integral part of these financial statements.
6
ASIAN YOUTH CENTER(A NONPROFIT ORGANIZATION)
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2019
Gang Educational Community
Intervention Home Base Conflict Pathway& Service Block Probation In-Home Department of Other Program Management Fund Total
Program Programs Resolution Vocational Grant Programs Services Health Programs Totals and General Development 2019
ERSONNEL
tlaries $ 218,476 $ 241,694 $ 124,774 $ 154,033 $ 60,653 $ 11,206 $ 51,905 $ 79,680 $ 431,360 $ 1,373,781 $ 21,048 $ 75,623 $ 1,470,451
tyrolltaxes 18,509 21,484 11,021 14,232 4,543 936 4,529 7,591 43,112 125,958 1,418 6,172 133,547
nployee benefits 14,628 16,199 7,213 10,578 3,172 602 3,038 2,767 14,062 72,258 169 5,282 77,710
tyrollfees 5,953 8,064 3,601 4,994 1,811 236 1,392 2,822 16,693 45,566 4,078 1,942 51,586
DIAL PERSONNEL 257,566 287,441 146,608 183,836 70,179 12,980 60,864 92,859 505,228 1,617,562 26,714 89,018 1,73
THER EXPENSES
ecounting and auditing 1,681 2,973 262 1,505 - 121 52 493 6,439 13,526 11,178 824 25,528
dvertising - - - - - - - - - - 51,900 - 51,900
atomobile and transportation 10,159 18,721 4,491 15,805 620 426 1,465 3,604 22,995 78,286 2,995 314 81,595
umputer supplies - - - - - - - - - - - - -
'differences staff development 276 505 65 311 - 40 22 127 1,734 3,080 917 1,109 5,106
epreciation 8,274 15,145 4,043 9,269 218 655 883 4,564 31,312 74,364 27,067 3,692 105,123
ues,fees,and subscriptions - - - - - - - 515 1,934 2,449 7,069 2,839 12,357
luipment maintenance 444 854 248 487 216 41 48 272 2,055 4,666 (18) 237 4,885
luipment rental 2,068 3,512 985 3,282 448 196 219 786 7,637 19,134 1,593 1,371 22,098
icility maintenance 1,372 2,443 1,026 1,367 401 119 193 903 11,513 19,337 6,361 1,548 27,246
icility rent 11,535 11,837 310 8,995 270 374 72 283 29,976 63,651 11 415 64,076
surance 7,944 9,433 2,740 7,142 489 782 1,141 1,594 19,665 50,930 1,385 2,350 54,664
[her expenses - 85 - 9 - - 3 - • - 97 16,711 803 17,611
dice supplies expenses 1,629 2,408 792 1,556 621 147 339 430 6,846 14,767 (2,059) 2,399 15,107
Aside services 114 476 107 102 - 41 21 553 3,423 4,837 3,536 5,042 13,415
inting - - - - - - - - 79 79 302 3,351
'ogram activities and supplies 14,230 410 3,448 2,075 211 5,123 36 6,004 30,719 62,257 1,587 4,191 . 6
ogram subcontractor - - 68,260 - - - - - - 68,260 348 - 68,608
tblie relations - - - - - - - - 1,250 1,250 1,580 45 2,875
;lephone 1,616 1,822 690 978 461 518 157 530 6,473 13,246 1,877 684 15,806
'operty tax - - - - - - - - - - 2,063 - 2,063
ink service charges - - - - - - - - - - 442 155 597
terest 2,095 3,770 848 2,484 24 180 197 938 7,817 18,353 1,656 918 20,928
centives - - - - - - - - - - 200 - 200
.ilities 2,675 4,284 1,345 3,881 1,005 345 329 802 17,821 32,487 724 2,906 36,117
)'1'A,OTHER EXPENSES 66,113 78,677 89,662 59,245 4,984 9,109 5,178 22,398 209,689 545,056 139,422 35,193 719,671
)TAL EXPENSES $ 323,679 $ 366,118 $ 236,271 $ 243,082 $ 75,163 $ 22,089 $66,042 $ 115,258 $ 714,917 $ 2,162,618 $ 166,136 $ 124,211 $ 2,452,965
The accompanying notes are an integral part of these financial statements.
` 7
ASIAN YOUTH CENTER(A NONPROFIT ORGANIZATION)
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED JUNE 30, 2018
•
Gang Educational Community
intervention Home Base Pathway& Service LA-Youth Probation Other Program Fund Total
Program Programs Vocational Block Grant WIOA Jobs Programs Programs Total General Development 2018
PERSONNEL
Salaries $ 262,320 $ 268,020 $ 228,542 $ 25,670 $ 137,664 $ 13,669 $ 189,017 $ 494,139 $ 1,619,040 $ 143,540 $ 57,050 $ 1,819,630
Payroll taxes 22,480 23,480 19,987 2,563 10,742 1,082 16,340 50,925 147,599 5,817 9,198 162,613
Employee benefits 19,125 20,149 12,361 2,395 10,380 935 11,246 16,245 92,836 10,026 6,440 109,302
Payroll fees 8,282 9,283 8,013 671 5,086 730 5,693 19,373 57,132 (13,551) 2,811 46,393
TOTAL PERSONNEL 312,206 320,931 268,903 31,300 163,872 16,417 222,296 580,682 1,916,607 145,832 75,499 2,137,938
OTHER EXPENSES
Accounting and auditing 2,544 2,288 2,231 (17) 709 101 1,789 5,644 15,289 1,226 752 17,268
Advertising - - - - - - - 30,525 30,525 113 25 30,663
Automobile and transportation 9,954 16,945 21,161 511 870 151 5,380 22,437 77,409 5,495 954 83,857
Computer supplies 44 62 51 13 - - 8 134 313 - 18 330
Conferences staff development 630 731 592 12 - - 272 1,455 3,691 1,500 506 5,698
Depreciation 10,695 13,537 11,872 61 - - 7,486 29,504 73,155 22,231 4,150 99,536
Dues, fees,and subscriptions 227 250 324 7 40 6 160 4,193 5,207 11,592 6,145 22,944
Equipment maintenance 418 529 460 45 150 26 300 1,141 3,069 1,423 • 164 4,656
Equipment rental 2,026 2,748 3,211 92 1,422 163 1,787 6,600 18,049 2,684 1,508 22,241
Facility maintenance 1,550 1,912 1,674 71 1,698 242 1,247 7,625 16,019 1,181 2,022 19,222
Facility rent 11,415 8,091 8,971 67 12,076 1,059 3,804 37,761 83,245 1,537 433 85,216
Insurance 6,257 6,797 6,012 105 2,770 469 4,179 14,336 40,925 8,117 2,125 51,167
Office supplies expenses 1,379 1,994 1,443 188 971 104 871 5,215 12,165 4,934 1,082 18,181
Outside Services 1,729 1,804 3,285 1 25 - 1,000 3,726 11,571 3,485 466 15,522
Printing 153 120 118 1 75 - 151 371 989 644 2,688 4,322
Program activities and supplies 7,983 310 5,346 224 115,292 53,196 9,410 61,441 253,203 22,359 265 275,827
Program subcontractor 88,000 - -- -
- -
-
88 000 - - 88.
Public relations - - - 1 - - - 70 71 1,019 1,180 2. 1
Telephone 2,406 3,382 3,329 65 1,534 159 2,237 5,574 18,688 1,519 910 21,117
Property tax - - - - - - - - - 2,234 - 2,234
Bank service charges - - - - - - - - - 539 71 •61 1
Interest 3,376 4,630 3,957 - - - 2,251 10,171 24,385 6,908 1,418 32,711
Incentives - - - - - - - - - 551 - 551
Utilities 3,026 3,925 3,920 214 2,888 311 2,527 16,730 33,541 2,247 3,459 39,246
TOTAL OTHER EXPENSES 153,811 70,057 77,959 1,660 140,520 55,988 44,861 264,654 809,510 103,538 30,341 943,389
TOTAL EXPENSES • $ 466,017 $ 390,988 $ 346,862 $ 32,960 $ 304,392 $ 72,404 $ 267,158 $ 845,336 $ 2,726,116 $ 249,370 $ 105,840 $ 3,081,327
The accompanying notes are an integral part of these financial statements.
9.1
S.^ 8
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION
Asian Youth Center (AYC or the Organization) is a nonprofit organization located in the San Gabriel area
of Los Angeles. AYC provides education, employment, health, and human services to low-income,
immigrant,and at-risk youth of all communities,to enhance their ability to contribute to the social,economic,
and cultural fabric of the United States. AYC was founded in 1989 to meet the social service and health
needs of Asian immigrant youth and families in the San Gabriel Valley. Over the years, the Organization
has grown from a small annual budget of$160,000, serving less than 100 youth in a small geographic area,
to the Organization it is today,with an annual budget of more than$4 million,serving more than 1,500 youth
and families over almost a third of Los Angeles County. Along the way, AYC expanded its scope and
services to include youth and families of all ethnicities, while still retaining its core cultural and linguistic
competence with Asian immigrants. Today, AYC provides services in Chinese, Vietnamese, Spanish and
English.
AYC's mission is to empower low-income, immigrant, and at-risk youth and families, of all communities,
to overcome barriers to success through culturally and linguistically competent education, employment, and
social services.
In order to provide youth with prevention, intervention, skill development and all-around support in home
and in the community,AYC's programs are divided into four departments:
Youth&Family Services (YFS)
YFS programs are provided at school sites, community partner sites, and in youth homes throughout the
First, Second and Fifth Supervisorial districts of Los Angeles County(this encompasses the Antelope Valley,
East Los Angeles, South Los Angeles, and the San Gabriel Valley.) The YFS programs are funded by the
Los Angeles County Probation Department and the Department of Health Services and seek to support
positive youth development and connection to the community through social emotional learning and case
management services. AYC helps youth and young adults envision a future where they can fulfill their
potential and then help them build the supports and connections they need to achieve it. In 2019, the YFS
Programs served approximately 1,000 youth, young adults and parents/family members and post-tests
demonstrated significant increases in skills and self-esteem. Programs include:
• Gang Intervention Program;
• Home Based&In-Home Case Management Services;
• Conflict Resolution Training Program; and
• Re-entry Intensive Case Management Services.
Educational Enrichment Services (EES)
EES provides low-income and immigrant youth in the West San Gabriel Valley,ages 5-14 with much needed
after-school and summer school programming. The programs have an academic focus on supplemental
instruction in English Language Arts and Math, as well as programming in STEAM, Health and Arts.
Participating youth receive homework assistance in all academic subjects, college and career preparation,
recreation, mentoring and participate in positive youth development activities. English scores improved an
average of 30%, and math scores by an average 20%. These programs are registered Heritage Schools
providing Chinese Language and other cultural education components.as well. Last year, AYC served
approximately 500 undocumented individuals through Educational Enrichment Services, including the
Emergency Food Program.
9
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 —ORGANIZATION (CONTINUED)
Educational Enrichment Services (EES) (Continued)
Programs include:
• Accelerating Children's Education after-school and summer school program;
• Project NEO after-school Program; and
• Friday Night Club.
Employment Services
Employment Services increase employment success among low-income youth ages 14-24. Services provide
youth with access to and support for the completion of educational and vocational assessment,job skills
development,vocational training,paid work experience,and job placement.Employment Services programs
helped approximately 85 youth in obtaining gainful employment and achieving long-term success in the
workplace by removing barriers and providing opportunities to re-enroll in education and/or vocational
school. Programs include:
• Educational Pathways &Vocational Opportunities; and
• Community Service Block Grant(CSBG)Employment Services.
Community Outreach&Education
Community Outreach & Education in Chinese and Spanish provided services to approximately 2,175
individuals in 2018-2019.Additionally,it reached more than approximately 25,000 people at outreach events
through in-language press coverage. It is the department's mission to ensure that community members
receive up-to-date and linguistically appropriate information about issues that affect them on a variety of
topics including, but not limited to: Voter Registration; Parent Education; Medi-Cal and Medicare and Cal
FRESH eligibility; Domestic Violence; Immigration & Naturalization; Disaster Preparedness & Relief;
Women's Health&Mental Health; Health Care Access; and Water Conservation.
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements are presented using the accrual basis of accounting. Under this
basis of accounting, revenues are recognized when they are earned, and expenses are recognized when
they are incurred.
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance
with accounting principles generally accepted in the United States of America. Contributions are recognized
as revenues in the period received.Net assets,revenues,gains,and losses are classified based on the existence
or absence of donor-imposed restrictions as prescribed for not-for-profit organizations by the Financial
Accounting Standards Board (FASB). Accordingly, the net assets of the Organization are classified and
reported as follows:
• Net Assets without Donor Restrictions -Net assets consist of resources that generally result from
revenue generated from providing services, collecting interest on investments, and receiving
contributions without donor restriction, less expenses incurred in providing program-related
services,raising contributions, and performing administrative functions.
10 as
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Net Assets with Donor Restrictions - Net assets consist of gifts of cash and other assets that were
received with donor stipulations that limit the use of the donated assets. When a donor restriction
expires, that is, when a stipulated time restriction ends or the purpose of the restriction is
accomplished, net assets with donor restrictions are reclassified to unrestricted net assets and
reported in the statements of activities and changes in net assets as net assets released from
restrictions. When donor restriction on contributions are satisfied in the same period as the receipt
of the contribution, the Organization reports both revenue and the related expense in the net asset
without donor restriction category.
Other net assets that are restricted by donors who stipulate that resources are to be maintained
permanently, but permit the Organization to expend all of the income (or other economic benefits)
derived from the donated assets.
Donor restricted contributions are reported as increases in net assets with donor restrictions. When
a restriction expires or relieved, net assets are reclassified from net assets with donor restrictions to
net assets without donor restrictions in the statement of activities. Except when donor restriction on
contributions are satisfied in the same period as the receipt of the contribution, the Organization
reports both revenue and the related expense in the net asset without donor restriction category.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
Cash
AYC maintains its cash balances at various financial institutions. The balances at these financial institutions
are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. At times, cash balances
may be excess of the insured limit. As of June 30,2019,AYC's bank balances exceed FDIC insured amounts
by approximately$570,000. The Organization has not experienced any losses in such accounts and believes
it is not exposed to any significant risk on its cash.
Accounts Receivable
Accounts receivable are recorded when contract provisions are met, and the supporting organization is
obligated to remit payments to the Organization. Management performs periodic credit evaluations of its
receivable balances and records an allowance for doubtful accounts when it is probable that all or a portion
of the receivable will not be collected. Management recorded a$10,000 allowance for doubtful accounts as
of June 30, 2019.
Grants
AYC receives a large portion of its total revenue and support under various grants,which pay
AYC based on reimbursable costs as defined by the grants. When donor restriction on contributions are
satisfied in the same period as the receipt of the contribution, the Organization reports both revenue and the
related expense in the net asset without donor restriction category. Reimbursements recorded under these
grants are subject to audit.Management believes that no material adjustments will result from any subsequent
audits. Management believes that all grants receivable as of June 30, 2019 and 2018 were fully collectible;
therefore, no allowance for doubtful grants has been recorded.
11 r>C�
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Contributions
Contributions received are recorded as contributions without donor restrictions or contributions with donor
restrictions depending on the existence and/or nature of any donor restrictions. Conditional contributions are
recorded as support in the period the condition is met. When donor restriction on contributions are satisfied
in the same period as the receipt of the contribution, the Organization reports both revenue and the related
expense in the net asset without donor restriction category.Deferred revenue represents grants received prior
to the related services being performed or conditions being met.
Donated Properties
Non-cash assets received as gifts or donations in-kind are recorded at fair market value on the date of the
gift or donation.
Fair Value Measurements
Assets and liabilities recorded at fair value in the statement of financial position are categorized based upon
the level of judgment associated with the inputs used to measure their fair value. In accordance with
FASB Accounting Standards Codification(ASC) 820,Fair Value Measurements and Disclosures, AYC is .
required to classify certain assets and liabilities based on the following fair value hierarchy:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2: Observable market-based inputs other than quoted prices in active markets for identical
assets or liabilities. This includes instruments that are primarily valued using valuation techniques
that use observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Prices or valuations that require inputs that are both significant to the fair value
measurement and unobservable.This is comprised of instruments whose fair value is estimated based
on a market approach using alternate techniques or internally developed models using significant
inputs that are generally less readily observable because of limited market activity or little
transparency.
FASB ASC 820 requires the use of observable market data if such data is available without undue cost and
effort.
The carrying amounts reported as of June 30,2019 and 2018 for cash,accounts and grants receivable,prepaid
expenses, inventory, accounts payable, accrued expense and long-term debt approximate their fair values
due to the short-term nature of these instruments or are based on interest rates available to the Organization
that are comparable to the current market rates.
Concentration of Credit Risk
The financial instruments which potentially subject AYC to credit risk are primarily cash and accounts and
grants receivable. AYC conducts ongoing credit evaluations but does not obtain collateral or other forms of
security. AYC believes its credit policies do not result in significant adverse risk, and historically, it has not
experienced significant credit-related losses.
12 �3O
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounts and Grants Receivable
Grants receivable are recorded when a granting agency is committed in writing and when qualifying
expenditures are made in connection with grants that provide for reimbursement of such expenditures. AYC
recorded a$10,000 allowance for doubtful accounts as of June 30, 2019.
Property and Equipment
Property and equipment are stated at cost. Depreciation and amortization are calculated utilizing the straight-
line method over the estimated useful lives of the assets as follows. AYC capitalizes all acquisitions with a
cost greater than $5,000 and a useful life greater than one year.
Building and improvements 30 years
Automobiles 5 years
Computers 5 years
Furniture and fixtures 5-10 years
Impairment of Long-Lived Assets
Long-lived assets,such as property and equipment,are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of
assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated
undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset
exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the
carrying amount of the asset exceeds the fair value of the asset. In the opinion of management,no long-lived
assets were impaired as of June 30, 2019.
Reclassifications
Certain amounts in the fiscal year 2018 financial statements have been reclassified to conform to the fiscal
year 2019 presentation and the provisions of FASB ASU 2016-14,Not-for-Profit Entities (Topic 958).
Functional Allocation of Expenses
Expenses that can be identified with a specific program or supporting service are charged directly to the
related program or supporting service. Certain expenses that are associated with more than one program or
• supporting service have been allocated among the programs and supporting services benefited based on
management's calculation of time spent and/or direct costs on various programs and services, approved by
agencies of governmental grants and contracts.
Advertising
Advertising costs are expensed as incurred. Advertising expense was approximately $52,000 and $31,000
for the years ended June 30,2019 and 2018,respectively.
13 31
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recent Accounting Pronouncements
In May 2014,the FASB issued ASU No. 2014-09,Revenue from Contracts with Customers(ASU 2014-09),
which is effective for non-public entities for annual reporting periods beginning after December 15,2018,as
amended. The new revenue recognition standard provides a five-step analysis of transactions to determine
when and how revenue is recognized. The core principle is that a company should recognize revenue to
depict the transfer of promised goods or services to customers in an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods or services.ASU 2014-09 shall be applied
retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The
Organization is currently evaluating the impact of the adoption of ASU 2014-09 on the financial statements
and has not determined the method of adoption or the impact of such adoption.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require lessees to
recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income
statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or
finance. Classification will be based on criteria that are largely similar to those applied in current lease
accounting pronouncements today, but without explicit bright lines. Lessor accounting is similar to the
current model but updated to align with certain changes to the lessee model and the new revenue recognition
standard.This ASU is effective for fiscal years beginning after December 15,2019,including interim periods
within those fiscal years. The Organization is currently evaluating the potential impact this standard will
have on their financial statements and related disclosures.
In August 2016, the FASB issued ASU 2016-14;Not-for-Profit Entities(Topic 958),which will improve the
current net asset classification requirements and the information presented in financial statements and notes
about a not-for-profit entity's (NFP's) liquidity, financial performance, and cash flows. The FASB's Not-
for-Profit Advisory Committee (NAC) and other stakeholders indicated that existing standards for financial
statements of NFPs are sound but could be improved to provide more useful information to donors, grantors,
creditors, and other users of financial statements. The amendments in this ASU are effective for annual
financial statements issued for fiscal years beginning after December 15,2017,and for interim periods within
fiscal years beginning after December 15, 2018. Application to interim financial statements is permitted but
not required in the initial year of application. Early application of the amendments in this ASU is permitted.
The Organization adopted this ASU during fiscal year 2019 and has adjusted the presentation of these
statements accordingly. The ASU has been applied retrospectively to all periods presented.
In June 2018, the FASB issued ASU 2018-08, Clarifying the Scope and the Accounting Guidance for
Contributions Received and Contributions Made(Topic 958).ASU 2018-08 clarifies and improves the scope
and the accounting guidance for contributions received and contributions made. This update should assist
entities in (1) evaluating whether transactions should be accounted for as contributions (nonreciprocal
transactions)within the scope of Topic 958 or as exchange(reciprocal)transactions subject to other guidance
and (2) determining whether a contribution is conditional. ASU 2018-08 is effective for fiscal years
beginning after December 15,2019,and early adoption is permitted.The Organization is currently evaluating
the impact of the provisions of ASU 2018-08 on the presentation of its financial statements.
14 �
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 3 -CONCENTRATION OF CREDIT RISK
Income Taxes
AYC is exempt from income taxes under Internal Revenue Code Section 501(c)(3) and Section 23701(d) of
the California Revenue and Taxation Code. Generally accepted accounting principles provide accounting
and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain.
Management has considered its tax positions and believes that all of the positions taken in its federal and
state exempt organization returns are more likely than not to be sustained upon examination. The
Organization's returns are subject to examination by federal and state taxing authorities, generally for three
years and four years,respectively, after they are filed.
Significant Concentration
AYC receives a significant amount of support from grants from three agencies. These agencies made up
approximately 13%, 19%, and 20% of support and grants for the year ended June 30, 2019 and 15%,
16%, and 17% for the year ended June 30, 2018. The grants receivable at June 30, 2019 from these
agencies made up approximately 0%, 20%, and 38% and at June 30, 2018 made up approximately 0%,
9%, and 23%.
NOTE 4—PROPERTY AND EQUIPMENT
Property and equipment at June 30, 2019 and 2018 consisted of the following:
2019 2018
Land $ 389,463 $ 389,463
Buildings and improvements 2,057,625 2,012,395
Automobiles 60,566 60,566
Computer equpiment 74,561 136,984
Furniture and equpiment 118,827 118,827
2,701,042 2,718,235
Less:Accumulatied depreciation (1,170,613) (1,127,913)
Net property and equpiment $ 1,530,429 $ 1,590,322
Depreciation expense for property and equipment amounted to $105,123 and $99,536 for the years ended
June 30, 2019 and 2018,respectively.
NOTE 5-AVAILABLE RESOURCES AND LIQUIDITY
AYC regularly monitors its liquidity required to meet its operating needs and other contractual commitments,
while also striving to maximize the investment of its available funds. AYC has various sources of liquidity
at its disposal, including cash. For purposes of analyzing resources available to meet general expenditures
over a 12-month period, AYC considers all contributions without donor restrictions and contributions with
donor restrictions for use in current programs which are ongoing,major, and central to its annual operations
to be available to meet cash needs for general expenditures.General expenditures include administrative and
general expenses, fundraising expenses and grant commitments expected to be paid in the subsequent year.
Annual operations are defined as activities occurring during the Organization's fiscal year.
15 a3
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 5 -AVAILABLE RESOURCES AND LIQUIDITY (CONTINUED)
The Organization manages its cash available to meet general expenditures following three guiding principles:
• Operating within a prudent range of financial soundness and stability;
• Maintaining adequate liquid assets; and
• Maintaining sufficient reserves to provide reasonable assurance that long-term grant commitments
and obligations with donor restrictions that support mission fulfillment will continue to be met,
ensuring the sustainability of the Organization.
In addition to financial assets available to meet general expenditures over the next 12 months,AYC operates
with a balanced budget and anticipates collecting sufficient revenue to cover general expenditures not
covered by donor-restricted resources.Refer to the statements of cash flows which identifies the sources and
uses of the Organization's cash and shows positive cash generated by operations for fiscal year 2019.
As of June 30, 2019, and 2018, the following table show the total financials assets held by the Organization
and the amounts of those financial assets that could readily be made available within one year of the balance
sheet date to meet general expenditures:
Total financial assets: 2019
Cash $ 1,204,937
Accounts and grants receivables 275,128
Total financial assets $ 1,480,065
The Organization's financial resources were earmarked as follows:
Total financial assets $ 1,480,065
Donor-imposed restrictions:
Restricted by donors for scholarship funds (6,000)
Less:Internal designations
Future expendable board designated reserves (50,000)
(56,000)
Total financial assets available for general use $ 1,424,065
The AYC governing Board has a liquidity policy of maintaining three months of operating expenses available
in cash. Additionally, it has set a target of an additional three months of operating expenses in the Board
designated reserve. This reserve may be undesignated by Board action. Once all goals for financial assets
are achieved, a budgeted portion of the reserve may be used for operations. To achieve these targets,AYC
forecasts its future cash flows and monitors its liquidity on a weekly basis and monitors its reserves on a
monthly basis.
16 S�11
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 6—COMMITMENTS AND CONTINGENCIES
Operating leases
AYC leases certain equipment under operating leases. The leases mature at various dates through Mareh
2023 and require monthly lease payments of approximately$1,200. AYC also leases certain office facilities,
some which mature through June 2020 and require monthly lease payments of approximately $1,800, and
some under month-to-month lease agreements. The total amount of rent expense, including month-to-month
rent expense, was approximately $64,100 and $107,000 for the years ended June 30, 2019 and 2018,
respectively.
Future minimum lease payments under the non-cancellable lease arrangements are as follows:
For the years ending June 30,
2020 36,000
2021 14,000
2022 14,000
2023 11,000
Total $ 75,000
Litigation
AYC is at times involved in various litigation matters in the normal course of business. Management does
not believe that any losses that may result from the resolution of these matters will have a material adverse
impact on the Organization's results of operations or financial position.
NOTE 7—LONG-TERM DEBT
AYC executed a $250,000 note payable with a financial institution on July 20, 2012. The mortgage note
payable is secured by land,buildings,and improvements. The note is payable in monthly payments of$1,399
including principal and interest starting November 10,2016 through July 10,2025, at which time the unpaid
principal balance is due. The interest rate is fixed at 4.5%. The principal balance of$5,672 were classified
in short-term and $228,568 were classified in long-term liabilities as of June 30, 2018. The debt was fully
repaid during the year ended June 30, 2019.
AYC executed a $500,000 mortgage note payable with a financial institution on July 16, 2012. Proceeds
from the note were used to purchase land and the affixed building,which secures the note.The note is payable
in monthly payments of$2,798 including principal and interest through September 1, 2025, at which time
the remaining principal balance is due. The interest rate is fixed at 4.5%. Principal balance of$12,706 and
$11,967 were classified in short-term and $443,457 and $456,883 were classified in long-term liabilities as
of June 30, 2019 and 2018,respectively.
Future minimum loan payments including interest under this note as of June 30 is as follows:
2020 33,576
2021 33,576
2022 33,576
2023 33,576
2024 33,576
Thereafter 288,283
Total $ 456,163
17 3S-
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 8—NET ASSETS RELEASED FROM RESTRICTION
The following net assets were released form restrictions as satisfaction of program restrictions were
achieved for the years ended June 30:
2019 2018
Net assets released from restriction:
Net assets restricted by the passage of time and programs:
May To Memorial Fund $ 3,223 $ 5,500
Weingart Foundation - 25,000
Total net assets released from restriction $ 3,223 $ 30,500
NOTE 9—NET ASSETS
Net assets are composed of the following as of June 30:
2019 2018
Net assets without donor restrictions:
Undesignated $ 2,277,207 $ 2,140,525
Board designated reserves 50,000 50,000
Total assets without donor restriction $ 2,327,207 $ 2,190,525
Net assets with donor restrictions:
May To Memorial Fund $ - $ 3,223
Cheau Wang Scholarship Fund 6,000 -
Total assets with donor restriction $ 6,000 $ 3,223
NOTE 10—SUBCONTRACT AGREEMENTS
AYC has a sub-contract agreement with the County of Los Angeles Gang Intervention Services in
conjunction with Jay Cee Dee Children's Home,Inc. dba Justice Children Deserve. AYC received$225,925
and $124,500 under this agreement and paid $68,608 and $88,000 for this service, during the years ended
June 30,2019 and 2018,respectively.
NOTE 11 -RETIREMENT PLANS
AYC maintains a Simplified Employee Pension Plan (SEP) for eligible employees. Under this plan, AYC
makes contributions to the plan equal to a percentage of the employees' salary. The percentage (3% for the
fiscal years ended June 30, 2019 and 2018) is determined each year by the Board of Directors. Plan
contribution expense for the years ended June 30, 2019 and 2018 totaled$5,345 and$5,217, respectively.
18 8(1
ASIAN YOUTH CENTER
(A NONPROFIT ORGANIZATION)
NOTES TO FINANCIAL STATEMENTS
NOTE 11 - RETIREMENT PLANS (CONTINUED)
AYC also provides a 403(b)Deferred Compensation Plan for its eligible employees.The plan allows eligible
employees to defer a portion of their annual compensation pursuant to the Internal Revenue Code. The AYC
does not provide matching contributions for this plan.
NOTE 12 - SUBSEQUENT EVENTS
Management has evaluated subsequent events through October 14, 2019, the date the financial statements
were available to be issued and determined there were no material subsequent events that require recognition
or disclosure in the financial statements.
19