HomeMy WebLinkAbout16-23 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 16-23
File Number: 2022-242
MAGDALENE SERENITY HOUSE, INC:
A RESOLUTION TO AUTHORIZE MAYOR JORDAN TO SIGN A SUBRECIPIENT AGREEMENT WITH
MAGDALENE SERENITY HOUSE, INC. TO PROVIDE SUPPORTIVE RECOVERY HOUSING FOR
FORMERLY INCARCERATED WOMEN UTILIZING AMERICAN RESCUE PLAN ACT FUNDS IN THE
AMOUNT OF $128,789.00, AND TO APPROVE A BUDGET ADJUSTMENT
WHEREAS, the City of Fayetteville has received funding from the American Rescue Plan Act (ARPA) and invited
non-profit organizations to submit proposals for projects to fund with the available ARPA funding; and
WHEREAS, the Magdalene Serenity House submitted an application requesting $128,789.00 in American Rescue
Plan Act funds to renovate a house that will be used to provide supportive recovery housing to formerly incarcerated
women; and
WHEREAS, the project will provide access to safe and affordable housing through an Aftercare Program for residents
who have successfully completed a two-year residential program, increasing the total number served from 8 to 12
residents; and
WHEREAS, the Subrecipient Agreement would provide funding in the amount of $128,789.00 for renovations to the
house and the addition of two bedrooms, a bathroom, and living space to increase capacity.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section l: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a
Subrecipient Agreement with Magdalene Serenity House, Inc. to provide the amount of $128,789.00 in American
Rescue Plan Act funds to fund renovations to supportive recovery housing for formerly incarcerated women.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of
which is attached to this Resolution.
PASSED and APPROVED on January 3, 2023
Page 1
Resolution: 16-23
File Number.' 2022-242
A nnrnvrrl
Attest:
Kara Paxton, City Clerk Treasurer
Page 2
CITY OF
Pow,
FAYETTEVILLE
ARKANSAS
MEETING OF JANUARY 3, 2023
TO: Mayor Jordan and City Council
CITY COUNCIL MEMO
2022-242
THRU: Kit Williams, City Attorney
FROM: Blake Pennington, Assistant City Attorney
DATE: December 13, 2022
SUBJECT: MAGDALENE SERENITY HOUSE SUBRECIPIENT AGREEMENT
RECOMMENDATION:
A RESOLUTION TO AUTHORIZE MAYOR JORDAN TO SIGN A SUBRECIPIENT AGREEMENT WITH
MAGDALENE SERENITY HOUSE, INC. TO PROVIDE SUPPORTIVE RECOVERY HOUSING FOR
FORMERLY INCARCERATED WOMEN UTILIZING AMERICAN RESCUE PLAN ACT FUNDS IN THE
AMOUNT OF $128,789.00, AND TO APPROVE A BUDGET ADJUSTMENT
BACKGROUND:
Council Member Wiederkehr is sponsoring a resolution to authorize an ARPA subrecipient agreement with
Magdalene Serenity House, Inc.to provide supportive housing for formerly incarcerated women.
DISCUSSION:
BUDGET/STAFF IMPACT:
Budget Adjustment attached
ATTACHMENTS: Res Magdalene Serenity House - ARPA Funds - Council Member Wiederkehr51-signed,
BUDGET ADJUSTMENT
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
Civic Clerk Item No.: 2022-242
AGENDA REQUEST FORM
FOR: Council Meeting of January 3, 2023
FROM: Council Member Mike Wiederkehr
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
A RESOLUTION TO AUTHORIZE MAYOR JORDAN TO SIGN A
SUBRECIPIENT AGREEMENT WITH MAGDALENE SERENITY HOUSE,
INC. TO PROVIDE SUPPORTIVE RECOVERY HOUSING FOR FORMERLY
INCARCERATED WOMEN UTILIZING AMERICAN RESCUE PLAN ACT
FUNDS IN THE AMOUNT OF $128,789.00, AND TO APPROVE A BUDGET
ADJUSTMENT
APPROVED FOR AGENDA:
An ,e ae��r 12 - 9 - 2022
City Council Member
Mike Wiederkehr
36/.64& P "�tl
Asst. City Attorne Blake Pennington
Approved as to form
Date
12/09/2022
Date
RESOLUTION NO.
A RESOLUTION TO AUTHORIZE MAYOR JORDAN TO SIGN A SUBRECIPIENT
AGREEMENT WITH MAGDALENE SERENITY HOUSE, INC. TO PROVIDE
SUPPORTIVE RECOVERY HOUSING FOR FORMERLY INCARCERATED WOMEN
UTILIZING AMERICAN RESCUE PLAN ACT FUNDS IN THE AMOUNT OF $128,789.00,
AND TO APPROVE A BUDGET ADJUSTMENT
WHEREAS, the City of Fayetteville has received funding from the American Rescue Plan Act
(ARPA) and invited non-profit organizations to submit proposals for projects to fund with the
available ARPA funding; and
WHEREAS, the Magdalene Serenity House submitted an application requesting $128,789.00 in
American Rescue Plan Act funds to renovate a house that will be used to provide supportive
recovery housing to formerly incarcerated women; and
WHEREAS, the project will provide access to safe and affordable housing through an Aftercare
Program for residents who have successfully completed a two-year residential program,
increasing the total number served from 8 to 12 residents; and
WHEREAS, the Subrecipient Agreement would provide funding in the amount of $128,789.00
for renovations to the house and the addition of two bedrooms, bathroom, and living space to
increase capacity.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor
Jordan to sign a Subrecipient Agreement with Magdalene Serenity House, Inc. to provide the
amount of $128,789.00 in American Rescue Plan Act funds to fund renovations to supportive
recovery housing for formerly incarcerated women.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment, a copy of which is attached to this Resolution.
PASSED and APPROVED this 3rd day of January, 2023.
APPROVED: ATTEST:
an
LIONELD JORDAN, Mayor KARA PAXTON, City Clerk/Treasurer
CITY OF FAYETTEVILLE CITY OF FAYETTEVILLE
ARKANSAS AMERICAN RESCUE PLAN ACT
2022 SUBRECIPIENT GRANT APPLICATION
NOTE: Submission of a Subrecipient Grant Application provides no guarantee that the applicant will
receive funding. All organizations selected to receive funds will be subject to entering into a contract
with the City of Fayetteville and subject to the rules and regulations pertaining to the American Rescue
Plan Act.
Please review the City of Fayetteville American Rescue Plan Act 2022 Subrecipient Grant Application
Guide for more information on the required items listed in this application.
PART 1 APPLICANT IDENTIFICATION
Total Amount of Funding
$128,789.00
Requested (whole dollar)
Minimum $25,000
Applicant/Organization
Name
Magdalene Serenity House
Mailing Address
(street, city, zip)
P.O. Box 3394 Fayetteville, AR 72702
Organization Website
www.lovehealsnwa.org
SAM Unique Entity ID
CHAYZYKV6HC9
Number
Organization FEINISSN
F47-1870017
PART 2 APPLICANT CONTACT INFORMATION
Contact for Project
(name & title)
April Bachrodt LCSW, PhD - Executive Director
Contact Phone Number
479-313-1502
Contact Email
april@lovehealsnwa.org
Signature Authority
April Bachrodt LCSW, PhD - Executive Director
(name, title & email address)
aphl@lovehealsnwa.org
PART 3 PROJECT INFORMATION
Project Name
Supportive Recovery Housing for Formerly Incarcerated Women
Project Address
(street, city, zip)
1029 N Gregg Street Fayetteville, AR 72701
American Rescue Plan Act
PART 3 PROJECT INFORMATION continued
Is anyone with control over
the Organization (i.e. owner,
manager, director, board
member, or other) or any
lO Yes Q No
member of that person's
immediate family, an
employee or elected official
of the City of Fayetteville
If Yes, above, please identify
Our Executive Director's husband, Stefan Bachrodt, works in the
person and position with the
IT Department at the City of Fayetteville as a Network Analyst.
City
The goal of the project is to increase access to safe and
affordable housing for residents who have successfully
completed our two-year residential program. In this new
Project Summary
Aftercare Program, residents will pay low-cost rent, establish a
(brief synopsis of proposed
project)
positive rental history, repair their credit score, and save money
to help achieve full independence. Funding is requested to help
us complete important repairs to the house including essential
upgrades to the plumbing and electrical systems and the addition
of two bedrooms, a bathroom, and a living space to increase
capacity.
Magdalene Serenity House opened on September 29, 2017. We
provide a comprehensive, collaborative, and structured
residential program that can comfortably house up to 8 women
Describe previous
for two years at no cost to them. The proposed project is a much
experience in providing
similar services
needed addition to our two-year program due to the lack of safe
and affordable housing for our program graduates.
Programs will typically be
funded for a time period not
Our goal is to renovate and open the Aftercare House by
to exceed 12 months from
December 2022. We have hired our contractor, have a detailed
the signed date of the
budget and project plan. We have already raised $102,555 for
subrecipient agreement.
the renovation and are ready to begin once additional funding
Please describe your
has been secured.
organization's ability to plan
and utilized requested funds
within that timeframe.
American Rescue Plan Act
PART PROJECT BENEFICIARIES
Projected number of 4 direct Fayetteville beneficiaries/year.
Fayetteville beneficiaries
Because the federal rules vary depending on the type of project for which funds are being
requested, the city has grouped project requests in 3 focus categories- Social Services,
Economic, and Environmental. Please choose the corresponding category below that most
closely identifies your project.
PART 4A SOCIAL SERVICES APPLICATIONS ONLY
Will ALL beneficiaries live,
work and/or go to school in
Yes QNo
Fayetteville
Will ALL beneficiaries meet
US Treasury Low to
Yes Q No
Moderate Income (LMI)
Guidelines (please see
Application Guide, Exhibit
A.
Will ALL beneficiaries have
been negatively impacted by
Yes O No
COVID-19
Does this request respond
to a negative COVID-19
Yes O No
impact?
If answering Yes to the
COVID-19 directly impacts our resident population. According to
question above, please
describe the COVID-19
the CDC: "While nearly all states' overdose deaths increased
impact and how this
during the pandemic, Arkansas sits higher than the national
proposal will aid in
average." Expanding MSH will improve access to housing for
responding to the impact
recovering, formerly -incarcerated women at an increased risk for
housing insecurity —reducing overdose and homelessness rates.
Please indicate how the
MSH proposed expansion would meet eligibility standards by
proposed project meets
providing residence in recovery housing, behavioral health care,
eligibility standards and
and long-term recovery support for women living below the
requirements described in
the U.S. Department of the
median income. Formerly incarcerated women are already at a
Treasury's Final Rule for
high risk for homelessness, facing "more than 1,300
Coronavirus State and Local
criminal -record related barriers to housing" (NICCC). The
pandemic is estimated to further increase homelessness rates,
Fiscal Recovery Funds
reinforcing the need to improve access to supportive housing.
American Rescue Plan Act
3
PART 48 ENVIRONMENTAL APPLICATIONS ONLY
Please describe the effect of
the proposed environmental
impact or benefit. Please
indicate how the proposed
project meets eligibility
standards under the EPA's
Clean Water State
Revolving Fund (CWSRF),
Drinking Water State
Revolving Fund DWSRF),
or eligible projects as
described in the U.S.
Department of the
Treasury's Final Rule for
Coronavirus State and Local
Fiscal Recovery Funds. See
Subrecipient Application
Guide for more information.
PART 4C ECONOMIC APPLICATIONS ONLY
Please describe the
residents or industry sector
this grant request is intended
to serve or benefit. Please
indicate how the proposed
project meets eligibility
standards and requirements
described in the U.S.
Department of the
Treasury's Final Rule for
Coronavirus State and Local
Fiscal Recovery Funds.
Does this request respond to Yes No
a negative COVID-19 impact
If yes, please describe the
COVID-19 impact and how
this proposal will aid in the
City's economic recovery
American Rescue Plan Act
I PART 5 FAYETTEVILLE BUSINESS LICENSE I
City Code Chapter 118 Business Registry and Licenses delineates what businesses are
required to have a Fayetteville Business License. Submission of this grant application indicates
that, if required, a current business license is in place.
PART 6 SIGNATURE OF SIGNATURE AUTHORITY AND DATE t
I am an authorized employee/agent of the applicant organization and I am authorized to
submit this application.
I have read and reviewed the American Rescue Plan Act documentation. I understand that as
a subrecipient of the City of Fayetteville's American Rescue Plan Act funds, I will be
responsible for maintaining records, complying with provisions of the subrecipient agreement,
and providing any/all records and information necessary for the City of Fayetteville to report on
this award.
All applications and documentation are subject to disclosure pursuant to the Arkansas Freedom of
Information Act. All documentation may be provided to Federal and/or State government agencies
for accounting and auditing purposes.
ttue Director , ` -,29
Nam ITitie/Date
American Rescue Plan Act
5
PART 7 ORGANIZATION DESCRIPTION Provide a brief description of your organization
and the services offered
Year of Incorporation 12014
We help rebuild the lives of women who have experienced
trauma, sexual exploitation, addiction, and incarceration through
safe housing, long-term support, and community partnerships.
We provide a comprehensive, collaborative, and structured
Philosophy, Purpose and/or Mission Statement residential program that can comfortably house up to 8 women
for two years, at no cost to them.
Provide a brief description of your organization including information about programs and/or
services other than the proposed project.
Free Long-term, Safe Housing: MSH provides free housing in our Residential Program for up to
two years for a total of 8 residents. Residents do not pay any rent, fees, or bills to live in our
residential property. In addition, we provide feminine hygiene items, cleaning products, and
laundry detergentlsoftener for our residents to use at no cost.
Aftercare Program: We purchased a second property for an Aftercare Program for our residential
program graduates. This program will house a total of 4 residents for up to one year. In this
program, residents will be required to pay an affordable, fixed fee of $500 for rentlutilities and still
receive supportive services from the staff at MSH. Our goal is to give MSH graduates the
opportunity to apply real-wodd skills in a safe and supportive home environment.
Financial/Material Assistance: Almost all of our residents come into our program with nothing but
the clothes on their backs. We provide financial assistance to purchase clothing, hygiene
products, undergarments, toiletries, shoes, and any other necessary item the resident may need
to feel comfortable to begin the program. We also purchase food for our residents until they are
eligible for food stamps. Each resident receives a $20.00 stipend per week to spend at their
discretion until they obtain employment (typically after 90 days in our program).
Case ManagementlPersonal Advocacy: All of our residents meet with our Executive Director,
who is a Licensed Certified Social Worker, on a weekly basis. In these weekly sessions, our
Executive Director develops a treatment plan with individualized goals and action steps for each
of our residents.
American Rescue Plan Act
N.
PART 7 ORGANIZATION DESCRIPTION continued
7:1
Peer Support/Personal Advocacy: All of our residents are able to meet with our Peer Recovery
Specialist (PRS) on a weekly basis to receive one-on-one assistance in meeting their goals and
to connect the resident with resources in their community. Our PRS has shared experience with
our residents and is able to use her personal experiences and training to directly support our
residents and help them meet their needs.
On -Site Groups: We provide a weekly on -site Resident Support Program to support .our residents
in healing from trauma and recovering from substance abuse. Ali of our residents are required to
participate in at least 15 hours of supportive programming per week. Each group tailors to the
requests and needs of our residents per assessment from our Program Team. We also provide
life -skills groups such as financial management and job skills training.
Therapy: All of our residents are matched with a licensed therapist in the community to meet their
specific mental health needs. We partner with private practitioners and Community Clinic for
mental health and therapy services.
Court/Legal Advocacy: We provide courttlegal advocacy for all of our residents. Many of our
residents come into our program with outstanding legal issues and require our help.
Medical and Dental Care: We connect our residents with medical, dental, vision, and other
specialty care as needed. We cover all costs for any medical or dental care that is not covered by
a resident's insurance plan.
Matched Savings Program: All of our residents are eligible to participate in our matched savings
program. Residents who save $600 will receive an additional match of $600 from MSH.
Residents are eligible for this match twice for a total of $1200 contributed by MSH.
Transportation: We provide free transportation for our residents to all appointments, court dates,
AA/NA meetings, group outings, and to and from work for the first 6 months of employment.
Aftercare Support: We provide aftercare support to all of our graduates. This support includes
meeting with our Executive Director on an as -needed basis.
Family Reunification Services: We support our residents in reunifying with their children when
appropriate. We will connect our residents with an attorney to request visitation with their minor
children and supervise visitation on site.
American Rescue Plan Act
PART 8 PROJECT BUDGET Provide a descriptive line -item budget for the entire project
including the American Rescue Plan Act (ARPA) funds being requested. Provide
specific information on how American Rescue Plan Act funds will be used
and include any necessary supporting documentation. Please indicate
whether any American Rescue Plan Act funds have been requested or
received from other sources, and if so, provide detailed information on the
source and proposed use of those funds. Please indicate how you will spend
all awarded ARPA funding by the project end date.
Budget Item & Description
Total
Permit & Site Setup - Building Permits
800.00
Demo - Demo and waste/port a potty
6,700.00
Foundation - Foundationtwaterproofing
22,200.00
Concrete - Concrete patching/report patio & walkway
8,000.00
Framing - Framing
8,300.00
Electrical & Lighting - Electrical rough in 1 trimout
10,000.00
Plumbing - Plumbing rough in 1 topout I trimout
18,000.00
HVAC - Heating & Cooling - ductwork and basement units
9,250.00
Insulation - Batt insulation in basement walls, and blown attic insulation
1,800.00
Windows - Windows - 5 casement
2,300.00
Doors - Doors & Trim
3,500.00
Drywall - Drywall
10,000.00
Cabinets - Cabinets
4,750.00
Trim & Millwork - Millwork & Trim
10,000.00
Paint - Interior Paint
11,500.00
Concrete - Fix interior concrete cracks
1,800.00
Floor Coverings - Floor Coverings
10,160.00
Cabinets - Countertops
3,500.00
Miscellaneous - Tub surround
600.00
Plumbing - Plumbing fixtures
2,400.00
Electrical & Lighting - Electrical fixtures
700.00
Appliances - Appliance installation
300.00
Vanities - Kitchen backsplash
960.00
Hardware - Hardware
1,350.00
Exterior Trim & Decks - Fence
17,850.00
Cleanup - Final clean
300.00
Contingency - Contingency
21,000.00
Gutter - Gutter guard
600.00
Contractor fee - $5,000 to start, then 20% of cost plus labor
42,724.00
TOTAL BUDGET
$231,344.00
TOTAL PRIVATE FUNDS RAISED
$102,555.00
ARPA FUNDS REQUESTED
$128,789.00
American Rescue Plan Act
.1
PART 9 PROJECT DESCRIPTION Describe the proposed project and provide the information
requested under PART 9 of the American Rescue Plan Act 2022 Subrecipient
Application Guide. Please provide any additional Information that will assist in
evaluating the project.
Service Provided - The objective of the proposed project is to increase access to safe, affordable,
and supportive recovery housing to residents who have successfully completed our two-year
residential program. In December 2020, we purchased a second house to expand our program
services. Once renovated, this new house will have the capacity to house four of our residential
program graduates for up to one-year, increasing our total number served from 8 to 12 residents.
Unfortunately, the current structure of the house is limited to two occupants and we would like to
undergo renovations to add additional bedrooms, a bathroom, and living space to increase our
capacity. Also, due to the age of the house it is in need of several repairs. Thus, this funding
would be used to help us complete these important repairs and expand our program services to
meet the housing needs of our program graduates. In this new Aftercare Program, residents will
pay low-cost rent and receive weekly one-on-one support from our program team. This program
will ensure that our program graduates maintain a close connection to the supportive
environment of Magdalene Serenity House (MSH): promoting a sober lifestyle, empowering
community with fellow residents, and allowing for the maintenance of direct contact with our staff.
This is especially important in the event of an emergency or risk of relapse. Moreover, this
program will allow our program graduates to establish a positive rental history, repair their credit
score, and save money to help them achieve full independence as they work toward fully
reintegrating into the community.
Applicant Screening - All residents who have successfully completed our two-year residential
program will be eligible to reside at our Aftercare House and participate in our Aftercare Program.
Residents in this program will fill out an Aftercare Program application and agree to comply with
the Aftercare Program Handbook policies and Leasing Agreement.
Income Verification - All project beneficiaries are in the low -moderate income bracket. We verify
this designation on their Aftercare House Application and through a monthly review of their
income.
Project Benefit - Women remain the fastest growing prison population nationwide. Since 1980,
the number of women in Arkansas jails (1,456%) and prisons (1,213%) has dramatically
increased. Incarcerated women are disproportionately affected by health issues including
substance abuse, medical problems, and mental health needs. The addition of our Aftercare
Program prevents both reincarceration and homelessness of women who are already at a high
risk to experience this. In a 2020 Marshall Project survey of currently incarcerated people across
the country, "when respondents were asked what could have kept them out of prison, among the
top answers were access to affordable housing and living wages." Another research study
conducted by the Prison Policy Initiative states that "formerly incarcerated people are 10 to 13
times more likely to experience homelessness than people who have not been incarcerated."
American Rescue Plan Act
�J
PART 9 PROJECT DESCRIPTION continued
The addition of our Aftercare Program would allow our program to take action in reducing these
statistics as we provide access to dependable living quarters while simultaneously promoting both
lifestyle and psychological wellness —attributing to lower rates of re -incarceration and
homelessness of women who have experienced trauma, sexual exploitation, addiction, and
incarceration. By expanding our capabilities to house and connect with MSH residents, our
program is able to maintain a productive relationship over a longer period of time as we move
from a program that traditionally lasts two years to a projected length of up to three years. More
thorough access to care allows our staff increased time to positively benefit the lives of our
resident population and further improve upon the challenging difficulties they face as they work
toward achieving self-sufficiency and successfully reintegrating into the community.
Fit with Organizational Philosophy - Our mission is to rebuild the lives of women who have
experienced trauma, sexual exploitation, addiction, and incarceration through safe -housing,
long-term support, and community partnerships. As we have celebrated the graduation of women
from our two-year program, we have lamented the lack of affordable, safe housing in Northwest
Arkansas. Rental costs continue to increase and many landlords will not rent to felons. In
December of 2020 we successfully raised the total purchase price of the Aftercare House and
have raised an additional $102,555 for renovations. Unfortunately COVID-19, substantial supply
cost increases, and labor shortages have forced us to put the renovation project on hold. We
have three graduation candidates who will be eligible for our Aftercare House by the end of 2022.
The proposed Aftercare House is a bridge to independence and will allow our residents to
continue to heal and recover in a supportive environment as they work toward successfully
reintegrating into the community.
American Rescue Plan Act
10
PART 10 PROJECT TIMELINE Provide a complete and specific timeline for all activities
related to proposed project.
Proposed schedule:
June 1, 2022: Apply for building permit
June -July: Site prep
French drain installation and basement wall waterproofing
Galvanized water line replacement
Sewer line replacement
Interior demo
Interior framing
August: Rough -ins for plumbing, electrical, HVAC
Window replacement at basement
September.: Rough -in completion
Insulation and sheet rock
Front walkway
Fence repair and installation
October: Finish out with trim, doors, fixtures, flooring, paint.
End of Nov 2022: Project completion
January 2023: Aftercare House ready for full occupancy.
American Rescue Plan Act
11
PART 11 DATA COLLECTION, RECORD MAINTENANCE, AND REPORTING Describe how
the organization will collect data and maintain records to track program activities
and eligibility verification. Please also describe your organization's ability to
produce required documentation including financial reports, performance reports,
progress reports, expenditure information, etc
i
We will use the following means to collect data, maintain records, and track program activities.
Renovation Work - A spreadsheet will be developed to track each project activity in the
renovation project. Receipts and invoices for all project activities will be securely stored in our
accounting database and documented in Quickbooks. Project spreadsheet, receipts, invoices,
and financial reports will be included in funding release requests.
Aftercare House/Program - Upon completion of the renovation work, graduates from our two-year
program will be eligible to reside in our Aftercare House and participate in our Aftercare Program.
All resident applications will be stored on our secure agency Dropbox. We will document all
resident progress and verify monthly income in our secure agency Dropbox case management
system. Data will be made available when requested to track the appropriate use of the ARPA
funds.
American Rescue Plan Act
12
PART 12 PROJECT EVALUATION I OBJECTIVES AND OUTCOMES List the objectives (not
activities) of the proposed project. Describe how each objective will be measured to
determine if it has been met.
Use the following format
Objective #:
Outcome(s):
Method of Measurement:
Objective # 1: By December 1, 2022, the Aftercare House will be fully renovated as detailed in
the project plan/budget.
Outcome(s): By January 1, 2023, the MSH Aftercare House will be able to provide safe,
affordable, and recovery supportive housing to approximately four MSH program graduates for
up to one year.
Method of Measurement. Completion of items on project plan/budget.
American Rescue Plan Act
13
PART 13 PARTIAL FUNDING Indicate whether the project can proceed with partial funding.
If YES, indicate the minimum amount the applicant will accept with line items
arranged from highest to lowest priority. Describe the impact that partial funding will
have on the project. if NO, the project will not be considered for partial funding.
Yes, the project can proceed with partial funding. The minimum amount for the project to proceed
would be approximately $64,140.00 to help us cover a significant portion of the safety -related
renovation costs. The partial funding will still make a significant impact on our organization and
move us closer to opening our one-year Aftercare House.
Budget Item & Description
Permit & Site Setup - Building Permits
Demo - Demo and waste/port a potty
Framing - Framing
Electrical & Lighting - Electrical rough in 1 trimout
HVAC - Heating & Cooling - ductwork and basement units
Insulation - Batt insulation in basement walls, and blown attic insulation
Doors - Doors & Trim
Drywall - Drywall
Plumbing - Plumbing fixtures
Electrical & Lighting - Electrical fixtures
Contractor fee
TOTAL PARTIAL FUNDS REQUESTED
American Rescue Plan Act
14
TOTAL
800.00
6,700.00
8,300.00
10,000.00
9,250.00
1,800.00
3,500.00
10,000.00
2,400.00
700.00
$10,690.00
$64,140.00
PART 14 ADDITIONAL DOCUMENTATION CHECKLIST
Please provide these items with your application. See page 10 of the 2022 American Rescue
Plan Act Subrecipient Application Guide for more information
21
Accessibility Narrative
0
Board of Directors
21
Bylaws
21
Certificate of Good Standing
Financial Audit (see Application Guide for more information)
Intake Forms
Non -Profit Status Verification [IRS 501(c)(3) letter, IRS form 990 or 990-EZ, etc.]
Resumes (Executive Director and Project Coordinator)
System Award Management (SAM) UEI registration
Status of Funding (if applicable)
✓�
Additional Documentation Checklist (this page)
Additional Information
American Rescue Plan Act
15
h) \*
MAGDALENE
SERENITY HOUSE
Accessibility Narrative
EXISTING
The existing entry door is 36" wide. Interior hallways of the main level are either 42" or 48" wide.
The route through public spaces of the main level of the house meets Fair Housing Act accessibility
standards.
PROPOSED
The proposed remodel creates a new paved accessible path to the front door from the sidewalk at the
street and driveway.
The kitchen on the main level will meet Fair Housing Act accessibility standards.
Bedroom door hinges will be replaced with offset hinges to meet Fair Housing Act minimum door width
requirements.
In the main level bathroom, new receptacles will be at an accessible height.
Grab bars will be installed at the toilet and tub in the main bathroom.
MA
PO BOX 3394 /I FAYETTEVILLE, AR 72702 11479 3012326 II APRILtaLOVEHEALSNWA.ORG
Board of Directors 2022
Name
Phone#
Email
Occupation
Term Expiration
Lowell Grisham -
479-387-1972
lowellgrisharn&7mail.corn
Retired Rector of
February 2024
President
St. Paul's
Episcopal Church
Suzanne Stoner
479-409-6625
suzanne@stpaulsfay.org
Associate Rector
February 2024
of St. Paul's
Episcopal Church
Anne O'Leary -Kelly
479-387-5469
AO'leary-kellv@walton.uark.edu
Associate Dean,
February 2024
- Secretary
Walton College of
Business
Stacey Park
479-530-5560
stacey@parkco.net
Architect and
February 2024
owner of Parkco
Architects
Haley Hixson
479-304-9648
ha gyOmountsequoyah.org
Accountant at Mt.
February 2023
Sequoyah Center
Rogelio
303-229-3212
RGarciaContreras@walton.uark.
Director of the
February 2023
edu
Garcia -Contreras
Social Innovation
Initiative at the
Office of
Entrepreneurship
and Innovation in
the Walton
College of
Business.
Jane Gearhart -
479-841-0122
Retired
February 2024
Vice President
Casey Jones
479-957-5566
clones@fayetteville-ar.gov
Washington
February 2024
County District
Judge
Brooke Smith
501-416-8981
brookesmith1218(@gmail.com
Deputy Public
February 2023
Defender
Kristi Palmer
501-940-1591
kristipalmer2016@gmaii.com
Physician
February 2023
Pat Schram -
479-409-8788
sp chram55@yahoo.com
Retired
February 2025
Treasurer
BYLAWS OF
Magdalene Serenity House, Inc.
ARTICLE I
NAME; OFFICES AND REGISTERED AGENT; BOOKS AND RECORDS
Section 1.1. Corporate Name. The name of the Corporation is Magdalene Serenity House, Inc. (the
"Corporation").
Section 1.2. Principal Office. The Corporation has and will continuously maintain a principal
office in the City of Fayetteville or in Washington County, Arkansas. The Corporation may maintain
additional offices at such other place or places as the Board (defined below) shall from time to time
designate.
Section 1.3. Registered Office and Agent. The Corporation has and will continuously maintain a
registered office and agent in the State of Arkansas in accordance with the requirements of Arkansas law.
The registered office may, but need not, be identical to the principal office of the Corporation.
Section 1.4. Books and Records. The books and records of the Corporation are to be kept at its
principal office or at such other place or places as the directors of the Corporation shall from time to time
determine. The board of directors of the Corporation shall sometimes be collectively referred to as the
"Board" or the "Directors" and, individually, as a "Director".
ARTICLE II
PURPOSES
Section 2.1. Purposes. The Corporation is organized exclusively for charitable, educational,
religious, or scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code.
Without limiting the generality of the foregoing, the Corporation is organized and will be operated for the
purposes of providing housing, assistance in accessing food, medical, dental, addiction recovery, mental
health care, and/or prescription medicine needs for women with a history of trauma, sexual exploitation,
addiction, and incarceration in the Fayetteville -Springdale -Rogers Metropolitan Statistical Area.
ARTICLE III
MEMBERS
Section 3.1. Members. The Corporation has no members.
ARTICLE IV
BOARD OF DIRECTORS
Section 4.1. Authority. The affairs of the Corporation are managed by the Board. The Board may
exercise all powers, rights and privileges of the Corporation, whether expressed or implied in the Articles of
Incorporation or conferred by law or otherwise, and do all such acts and things which may be done by the
Corporation not otherwise prohibited by the Articles, these bylaws, or state law.
Section 4.2. Number and Term. The Board shall consist of at least five Directors but no more than
twenty-one Directors. The full term of office of elected Directors shall be three years, and to the extent
practical, taking into account increases or decreases in the number of Directors constituting the Board of
Directors, one third of the Directors shall be elected each year, in a self perpetuating manner, at the Annual
Meeting of the Board of Directors, the Directors so elected filling the place of retiring Directors. In the event
of a change in the number of Directors or in establishing the first full Board of Directors, the resolution
effectuating such change or electing the first full Board of Directors shall specify the years in which the terms
of the directorship thereby created shall first expire. Vacancies occurring in the Board of Directors, including
vacancies due to an increase in the number of Directors, may be filled by the Directors then in office. Any
Director may succeed herself or himself indefinitely.
Section 4.3. Qualifications. At all times, Directors must be at least 18 years of age.
Section 4.4. Attendance. Directors are expected to attend every regular, special, and annual
meeting. The attendance of a Director at any meeting shall constitute a waiver of notice of such meeting
unless such attendance is for the purpose of disputing the legality of the meeting.
Section 4.5. Vacancies. Any vacancy occurring on the Board due to the death, resignation,
removal or other disqualification of a Director shall be filled by the Board for the unexpired portion of
the term.
Section 4.6. Resignation, Removal. A Director may resign by delivering a written resignation to the
President or Secretary, or to the Board of Directors, or to the Corporation at its principal office. Such
resignation is effective upon receipt, unless specified to be effective at some other time, and acceptance
thereof is not necessary to make it effective unless the resignation so states. Any Director may be removed
from the Board of Directors, with or without cause, by the affirmative vote of at least two-thirds of the Board.
Section 4.7. Inactive Directors. A Director is considered inactive if he or she is absent from fifty
percent (50%) or more of the meetings within a six-month period. Inactive Directors may be suspended or
removed by the Board, but only after reasonable notice and an opportunity to be heard. Provided, however, a
Director who requests, and receives, from the Board or the President an excused absence regarding one or
more meetings, shall not be deemed absent, for purposes of such inactive status, with respect to such
meeting(s).
Section 4.8. Annual Meetings. The annual meeting of the Board is held on the afternoon of the first
Sunday of each February or at such other time within sixty (60) days of that date as determined by a vote of the
Board of Directors. Written notice of the annual meeting shall be sent at least 30 days before the meeting.
Section 4.9. Regular Meetings. Regular meetings of the Board are held at such places and at such
times as the Board may determine. There are a minimum of three regular meetings per year, in addition to
the annual meeting. With the prior consent of the President or his/her designee, a Director may participate in
a particular regular meeting of the Board by means of a conference telephone call, video conferencing,
web -based conferencing, or any other comparable means of communication.
Section 4.10. Special Meetings. Special meetings of the Board for any purpose may be called at
any time by any Officer or any two Directors. Notice shall be sent to each Director at least 24 hours prior to
the meeting, except in cases of emergency, in which case only the notice which is reasonable under the
circumstances is required. Said notice shall specify the purpose of the special meeting. A Director is
deemed present at a special meeting when, by means of a conference telephone, video-conferencing,
web-conferencing or any other means of communication all persons participating in the meeting can hear
each other simultaneously.
Section 4.11. Notice. Notice stating the place, day and hour of any special or annual meeting shall
be delivered to each Director either personally (including by telephone), by electronic mail or by regular mail
using the address listed in the Corporation's records. Notice is effective at the earliest of the following: (i)
when given, if given in person or by electronic mail; or (ii) 3 days after its deposit in the United States mail, as
evidenced by the postmark, if mailed with first-class postage affixed, or if sent by registered or certified mail,
return receipt requested.
Section 4.12. Quorum. A majority of the Board constitutes a quorum. Directors present at a
meeting who abstain from voting are counted toward the quorum, but such abstention constitutes neither an
affirmative nor negative vote. Any act by a quorum of the Board shall be an act by the Board, unless such
3
act requires a greater number of Directors by law or by these bylaws.
Section 4.13. Voting. When a quorum is present at any meeting, a majority of the Directors
present and voting shall decide any question unless provided otherwise by law, the Articles of
Incorporation, or other provisions of these bylaws. Voting may take place in person or by telephone or
videoconference or web-conferencing during the meeting.
Section 4.14. Written Consent in Lieu of Meeting. Any action required or permitted to be taken at
any meeting of the Board may be taken without a meeting if three-quarters of the Board unanimously
consents to the action in writing, which consent may be evidenced by a mail messages or other electronic
communication. The written consents must be filed with the records of the meetings of the Directors. Such
consents shall be treated for all purposes as a record of who attended and voted.
Section 4.16. Deferred Voting. During any meeting or proposed electronic vote, a majority of the
Officers, or one third of the Directors present, may elect to defer the vote on any matter being discussed.
Where less than a majority of the Officers are present at the meeting or available for written consent, the
choice to defer the vote may be made by any Officer present, provided he or she has previously obtained
written approval (by either US mail or email) of enough other Officers to constitute a majority of Officers.
Such request during any meeting must be made prior to any vote on the matter. The deferred vote shall be
taken at a subsequent meeting or by unanimous written consent.
Section 4.16. Compensation. Directors shall not receive any compensation in their capacities as
Directors, although they may be reimbursed for reasonable expenses associated with their position.
Section 4.17. Personnel. The Board is responsible for approving new positions and the hiring
and firing the Executive Director of the Corporation. The Board in conjunction with the Executive Director
shall determine if there is a need for paid employees. The Executive Director will be responsible for the
hiring and firing of paid staff members.
Section 4.18. Dues. The Corporation shall not assess dues.
ARTICLE V
WORK GROUPS
Section 5.1. Generally. The Board may designate and create one or more work groups, each of
which shall have at least one Director and each of which may include non -Directors. Each work group, to
the extent authorized by the Board, may exercise the authority of the Board in the management of the
Corporation, but only to the extent authorized by the Board. Said work groups can propose but shall not
have the authority to do the following: make, alter or amend the Articles of Incorporation or the bylaws;
elect, appoint or remove any member of any such work group, or any Director or Officer of the Corporation;
adopt a plan of merger, consolidation or dissolution; or authorize the sale, lease, exchange or mortgage of
all, or any portion of, the property and assets of the Corporation. The designation and appointment of any
such work group and the delegation thereto of authority shall not operate to relieve the Board, or any
individual Director, of any responsibility imposed by law.
Section 5.2. Standing Work Groups. The Corporation and the Board shall be assisted in carrying
out its functions by the use of the following work groups. No individual may serve as the chairperson of
more than one work group. Each board member shall be responsible to being an active member in at least
one working group.
5.2.A. Executive Work Group. The four officers serve as the members of the Executive Work
Group. Except for the power to amend the articles of incorporation and bylaws, the Executive Work
Group shall have all the powers and authority of the board of directors in the intervals between
meetings of the board of directors, and is subject to the direction and control of the full board.
5.2.13. Finance Work Group. The Finance Work Group shall be responsible for monitoring
the financial status of the Corporation. In addition, the Finance Work Group shall create annual
accounting budgets, provide financial reports, quarterly reviews and reconciliation of the
Corporation's records, advise the Corporation and its Directors regarding accounting and IRS
procedures, and implement policies for cash control, reporting and auditing. The Finance
Chairperson is the Treasurer of the Corporation.
5.2.C. Property Management Work Group. The Property Management Work Group shall be
responsible for planning and organizing all activities related to the Corporation's physical properties
including renovation, furniture and appliance acquisition, and maintenance.
5.2.D. Other Work Groups. Other Work Groups which the Directors are likely to call into
existence, and shape their mission and tasks, may include, but are not limited to, the following:
• Fundraising/Development Work Group —to assist Executive Director and Development
Director with fundraising and development efforts including event planning, fundraising
strategy, meetings with prospective donors, and other tasks as assigned.
• Speaker's Bureau Work Group —to identify local community groups and others interested
in learning more about Magdalene Serenity House. Connecting program staff with
interested parties.
• Statistics/Economics Work Group — to explore different strategies for measuring the impact
of the MSH program and how to present this data to different stakeholders.
Transition/Graduation Work Group — to discuss strategies and identify resources for
helping residents successfully transition and reintegrate into the community upon
graduation from MSH.
ARTICLE VI
OFFICERS
Section 6.1. Officers. The Officers of the Corporation shall consist of a President, a
Vice -President, a Secretary, and a Treasurer.
Section 6.2. Election. The Officers are elected from the membership of the Board of Directors, by
the Board of Directors, at the Annual Meeting of the Board. Officers serve one-year terms. An Officer may
be re-elected at the Annual Meeting each year until his or her term on the Board expires.
Section 6.3. Vacancies. Where a vacancy occurs in an office, the Board shall elect a replacement,
and the replacement shall hold office for the unexpired remainder of the vacant term.
Section 6.4. Removal. The Board may remove any Officer elected by the Board with or without
Section 6.5. Resignation. Any Officer may resign by delivering his or her written resignation to any
other Officer of the Corporation, or to the principal office. Such resignation shall be effective upon receipt,
unless specified to be effective at some other time, and acceptance thereof shall not be necessary to make it
effective unless the resignation so states.
ARTICLE VII
DUTIES OF OFFICERS
Section 7.1. President. The President is the chief executive officer of the Corporation. He or she
presides over meetings of the Board, plans and prepares agendas for each meeting, and supervises and
controls all corporate business and affairs.
Section 7.2. Vice -President. The Vice -President, in the absence of the President or in the event of
the President's inability or refusal to act, the Vice -President shall perform the duties of the office and, when
so acting, shall have all the powers of and be subject to all the restrictions upon the President.
Section 7.3. Secretary. The Secretary keeps the minutes of meetings of the Board, sees that all
notices are given in accordance with the bylaws or as provided by the law, and distributes minutes to the
N.
Board. The Secretary is the custodian of all official documents and papers of the Corporation. The Secretary
shall have such other duties and powers as designated by the Board.
Section 7.4. Treasurer. The Treasurer shall be the chief financial officer and the chief accounting
officer of the Corporation. He or she shall also be the Chairperson of the Finance Committee. He or she shall
be in charge of its financial affairs, funds, securities and valuable papers and shall keep full and accurate
records thereof. The Treasurer shall have such other duties and powers as designated by the Board.
ARTICLE VIII
FISCAL YEAR
Section 8.1. Fiscal Year. The fiscal year of the Corporation ends December 31.
ARTICLE IX
INDEMNIFICATION AND INSURANCE
Section 9.1. Indemnification. The Corporation shall, to the extent legally permissible, indemnify
each person who may serve or who has served at any time as an officer, Director, or employee of the
Corporation against all expenses and liabilities, including, without limitation, counsel fees, judgments, fines,
excise taxes, penalties and settlement payments, reasonably incurred by or imposed upon such person in
connection with any threatened, pending or completed action, suit or proceeding in which he or she may
become involved by reason of his or her service in such capacity; provided that no indemnification shall be
provided for any such person with respect to any matter as to which he or she shall have been finally
adjudicated in any proceeding not to have acted in good faith in the reasonable belief that such action was in
the best interests of the Corporation; and further provided that any compromise or settlement payment shall
be approved by a majority vote of a quorum of Directors who are not at that time parties to the proceeding.
The Corporation may, but is not required to, purchase and maintain insurance on all persons or classes of
persons it may indemnify to the full extent permitted by law.
Section 9.2. Heirs, Administrators; Amendment of Bylaws. The indemnification provided
hereunder shall inure to the benefit of the heirs, executors and administrators of persons entitled to
indemnification hereunder. The right of indemnification under this Article shall be in addition to and not
exclusive of all other rights to which any person may be entitled. No amendment or repeal of the provisions
of this Article which adversely affects the right of an indemnified person under this Article shall apply to such
person with respect to those acts or omissions which occurred at any time prior to such amendment or
repeal, unless such amendment or repeal was voted by or was made with the written consent of such
indemnified person.
7
Section 9.3. Contract for Indemnification. This Article constitutes a contract between the
corporation and the indemnified officers, Directors, and employees. No amendment or repeal of the
provisions of this Article which adversely affects the right of an indemnified officer, Director, or' employee
under this Article shall apply to such officer, Director, or employee with respect to those acts or omissions
which occurred at any time prior to such amendment or repeal.
Section 9.4 Other Insurance. The Board shall have the power to acquire any insurance deemed
necessary or proper in the conduct of the affairs of the Corporation.
ARTICLE X
CONTRACTS, LOANS, CHECKS, AND DEPOSITS
Section 10.1. Contracts and Loans. Unless authorized by the Board, no Officer, agent or employee
shall have the power or authority to bind the Corporation by any contract or promissory note or to render it
liable for any purposes. The Board may authorize any Officer(s) or agent(s) to enter into any contract or
execute and deliver any instrument in the name of and on behalf of the Corporation. Such authority may be
general or confined to specific instances.
Notwithstanding anything else in this Section 10.1, for any contract or loan obligation under $2,500, no
general or specific authorization of the Board is required; instead, any two Officers have the Board -delegated
authority to authorize such a contract or loan obligation.
Section 10.2. Checks. All checks, drafts, or other orders for the payment of money, notes, or other
evidences of indebtedness issued in the name of the Corporation shall be signed by the Executive Director if
the amount of payment does not exceed Five hundred dollars, $500. All checks, drafts, or other orders for the
payment of money, notes, or other evidences of indebtedness issued in the name of the Corporation in excess
of Five hundred dollars, $500, shall be signed by the Treasurer and the Executive Director, unless otherwise
authorized by the Board.
Section 10.3. Deposits. All funds of the Corporation not otherwise employed shall be deposited from
time to time to the credit of the Corporation in such banks, trust companies, or other depositories as the
Board may select.
ARTICLE XI
CONFLICT OF INTEREST
8
Section 11.1. Purpose. The purpose of this policy is to protect the interests of Magdalene Serenity
House, Inc., when it is contemplating entering into a Transaction which might benefit the personal,
business, or professional interests of a director or officer of the Organization, or when it might result in an
excess benefit Transaction.
Section 11.2. Duty to Disclose. With respect to any proposed Transaction in which a conflict of
interest may be present, a Director must disclose any Financial Interest that he or she has regarding the
proposed Transaction.
Section 11.3. Whether a Conflict of Interest Exists. The Disinterested Directors shall decide
whether a conflict of interest exists. The minutes of the meeting should reflect the disclosure of the Financial
Interest and the absence of the Interested Person during discussion and voting.
Section 11.4. Process. If no other more advantageous alternative Transaction is reasonably possible
under the circumstances, the Disinterested Directors may vote to authorize the proposed Transaction if the
proposed Transaction is: (a) in the Organization's best interests, (b) for the Organization's own benefit, and
(c) fair and reasonable.
ARTICLE XII
AMENDMENTS
Section 12.1. Amendments. The bylaws of the Corporation may be amended or repealed and new
bylaws may be adopted by the affirmative vote of the Board at any annual, regular, or special meeting of the
Board with notice setting forth the terms of the proposed amendment or repeal.
Adopted:
Secretary
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ASSOCIATES
CERTIFIED PUBLIC ACCOUNTANTS
October 7, 2021
To the Board of Directors
Magdalene Serenity House, Inc.
We have audited the financial statements of Magdalene Serenity House, Inc. for the year ended
December 31, 2020, and have issued our report thereon dated August 25, 2024. Professional
standards require that we provide you with information about our responsibilities under generally
accepted auditing standards, as well as certain information related to the planned scope and
timing of our audit. We have communicated such information in our letter to you dated January
23, 2021. Professional standards also require that we communicate to you the following
information related to our audit.
Sianificant Audit Matters
(Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the Organization are described in Note 1 to the financial
statements. As described in Note 1, the Organization adopted Accounting Standards Update No.
2016-01, Financial Instruments - Overall (Suhtopic 825-10): Recognition and Measurement of
Financial Assets and Liabilities, and Accounting Standards Update No. 2018-13, Fair Value
Measurement (Topic 820). We noted no transactions entered into by the Organization during the
year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. The most sensitive estimate
affecting the financial statements was:
Management's estimate of the lives of fixed assets is based on standards and trends in
the industry, as well as the House's maintenance practices and policy regarding
replacement of fixed assets. We evaluated the key factors and assumptions used to
develop the lives of fixed assets and in determining when depreciation should begin
and found that an adjustment was needed to the date in which leasehold improvements
should have started to be depreciated.
2594 E. Joyce Blvd.. Ste. 1
Fayetteville, Arkansas 72703
ft 479,444.8200 email: ma Ki)selectlanding.com
mmselectepa.com
Management's functional allocation of expenses to the programs is based on
management's experience and knowledge of the Organization's programs and
utilization of resources to serve the programs. We evaluated the key factors and
assumptions used to develop these estimates in determining that they are reasonable in
relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their
significance to financial statement users. The most sensitive disclosure(s) affecting the
financial statements ae the details for the loan and fixed assets.
The disclosure of fair value measurement in Note 5 to the financial statements. The
FASB defines fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the
measurement date. When measuring a fair value, a fair value hierarchy gives the
highest priority to quoted prices in active markets for identical assets or liabilities
(Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly
defined assumptions market participants would use in pricing an asset or liability.
Note 5 goes into great detail as to the definitions of levels within the hierarchy as
well as the valuation techniques used.
The financial statement disclosures are neutral, consistent, and clear.
Difculties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting,
or auditing matter, whether or not resolved to our satisfaction, that could be significant to the
financial statements or the auditor's report. We are pleased to report that no such disagreements
arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated August 25, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the Club's financial statements or
a determination of the type of auditor's opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the House's auditors.
However, these discussions occurred in the normal course of our professional relationship and
our responses were not a condition to our retention.
Bank reconciliations should be monitored monthly to ensure that the bank records and the
QuickBook records match, which they do in regards to the bank, but the register balance in the
reconciliations do not always match the general ledger like it should. This is, generally, caused
by the reconciliation being completed and then a change of a transaction prior to the date of the
reconciliation is recorded, and the reconciliation was not redone. We noticed this on the
December 2020 reconciliation. Transactions that are over a year old that have not cleared should
be cleared in the reconciliation and then a journal entry should be made to reverse the entry as if
it hadn't happened. This helps keep the reconciliation free of transactions that will likely never
clear.
In summary, the records are kept well. There are a few adjustments, which we have sent for
approval, acceptance and signature. We feel that the policies and procedures that are in place are
mostly being followed except where noted above.
This information is intended solely for the use of Board of Directors and management of the
House and is not intended to be, and should not be, used by anyone other than these specified
parties.
Very truly yours,
kv o
Przybysz & Associates. CPAs, P.C.
2594 E. Joyce Blvd.. Ste. I
Fayetteville. Arkansas 72703
Ph: 479.444.8200 email: marcl6ui selecilanding.com
www.selectepa.com
MAGDALENE SERENITY HOUSE, INC.
AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2020 AND 2019
P RZYBYS Z
ASSOCIATES
,juirao runix AW'OUMIANTS
MAGDALENE SERENITY HOUSE, INC.
DECEMBER 31, 2020 AND 2019
CONTENTS
Page
IndependentAuditors' Report ....................................................................................... 1-2
Financial Statements
Statements of Financial Position................................................................................... 3
Statementsof Activity................................................................................................. 4-5
Statements of Functional Expenses ....................................... .......................... .............. 6-7
Statementsof Cash Flows........................................................................................... 8
Notes to Financial Statements...................................................................................... 9-20
P RZYBYS Z
_&ASSOCIATE S
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report
To the Board of Directors
Magdalene Serenity House, Inc.
Fayetteville, Arkansas 72701
Opinion
We have audited the accompanying financial statements of the Magdalene Serenity House, Inc. (a
nonprofit), which comprise the statement of financial position as of December 31, 2020, and the
related statements of activities, functional expenses, and cash flows for the year then ended, and the
related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Magdalene Serenity House, Inc, as of December 31, 2020, and the changes in
net assets and its cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Our responsibilities under those standards are further described in the Auditors'
Responsibilities for the Audit of the Financial Statements section of our report. We are required to
be independent of Magdalene Serenity House, Inc. and to meet our other ethical responsibilities in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events considered in the aggregate, that raise substantial doubt about Magdalene
Serenity House Inc's ability to continue as a going concern within one year after the date that the
financial statements are available to be issued.
2594 E. Joyce Blvd., Ste. 1
Fayetteville, Arkansas 72703
Ph: 479.444.8200 email; marc](i4selectlanding.com
NywNy.selectepa.com
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
generally accepted auditing standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements, including omissions, are
considered material if there is a substantial likelihood that, individually or in the aggregate, they
would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 Magdalene Serenity House, Inc.'s internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about Magdalene Serenity House, Inc.'s ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control related matters that we identified during the audit.
4 4* Gllt+i�Q-
Przybysz & Associates, CPAs, P.C.
Fayetteville, Arkansas
August 25, 2021
ra
FINANCIAL STATEMENTS
MAGDALENE SERENITY HOUSE, INC.
STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31,
2020
2019
Assets
Current Assets
Cash and cash equivalents
$ 303,003 $
275.721
Pledges receivable
79,844
11,104
Prepaid expenses
6,516
982
Investments
39,659
39,101
Total Current Assets
429,022
326,908
Noncurrent Assets
Property and Equipment
Land
39,226
-
Building and improvements
783,431
593,464
Equipment
10,032
10,032
Furniture and fixtures
24,433
24,433
Vehicles
24,080
24,080
Accumulated depreciation
168,075
116,829
Net Property and Equipment
713,127
535,180
Total Assets
$ 1,142,149 $
862,088
Liabilities and Net Assets
Liabilities
Accounts payable $ 1,198 $ 2,119
Accrued liabilities 1,893 753
Paycheck Protection Program loan 31,800 -
Note payable 67,185 83,287
Total Liabilities 102,076 86,159
Net Assets
Without donor restrictions 965,513 773,654
With donor restrictions 74,560 2,275
Total Net Assets 1,040,073 775,929
Total Liabilities and Net Assets $ 1,142,149 $ 862,088
See accompanying notes to financial statements.
3
MAGDALENE SERENITY HOUSE, INC.
STATEMENT OF ACTIVITY
FOR THE YEAR ENDED DECEMBER 31, 2020
Without
With
Donor
Donor
Restrictions
Restrictions
Total
Revenue and Other Support
Contributions and grants
$ 281,166
$ 330,026 $
611,192
In -kind revenue
51,688
-
51,688
Interest and dividends, net of fees
651
651
Unrealized gain on investments
658
658
Other income
198
198
Net assets released from restrictions
257,741
257,741
-
Total Revenue and Other Support
592,102
72,285
664,387
Expenses
Program service
251,730
251,730
Management and general
85,031
85,031
Fund raising
63,482
- 63,482
Total Expenses
400,243
- 400,243
Change in Net Assets
191,859
72,285
264,144
Net Assets, Beginning of Year
773,654
2,275
775,929
Net Assets, End of Year
$ 965,513 $
74,560 $
1,040,073
See accompanying notes to financial statements.
4
MAGDALENE SERENITY HOUSE, INC.
STATEMENT OF ACTIVITY
FOR THE YEAR ENDED DECEMBER 31, 2019
Without With
Donor Donor
Restrictions Restrictions Total
Revenue and Other Support
Contributions and grants
$ 396,328 $
2,724 $ 399,052
In -kind revenue
51,000
- 51,000
Interest and dividends, net of fees
347
- 347
Unrealized gain on investments
904
- 904
Other income
370
- 370
Net assets released from restrictions
11,972
11,972 -
Total Revenue and Other Support
460,921
(9,248) 451,673
Expenses
Program service 244,341 - 244,341
Management and general 47,347 - 47,347
Fund raising 46,160 _ 46,160
Total Expenses 337,848 - 337,848
Change in Net Assets
123,073
(9,248)
113,825
Net Assets, Beginning of Year
650,581
11,523
662,104
Net Assets, End of Year
$ 773,654 $
2,275 $
775,929
See accompanying notes to financial statements.
MAGDALENE SERENITY HOUSE, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2020
Program
Management
Fund
Service
& General
Raising
Total
Compensation and Related Expenses
Salaries and wages $
87,789
$ 46,287 $
43,437 $
177,513
Employee benefits
4,593
2,421
2,273
9,287
Payroll taxes
7,775
4,098
3,847
15,720
Total compensation & related expenses
100,157
52,806
49,557
202,520
Occupancy
Rent
43,860
3,682
3,458
51,000
Repair and maintenance
1,093
-
1,093
Telephone
2,849
239
225
3,313
Utilities
12,677
1,064
999
14,740
Total Occupancy
60,479
4,985
4,682
70,146
Administration
Bank and credit card fees
2,288
-
2,288
Computer expenses
828
1,756
1,368
3,952
Conferences and training
1,130
-
1,130
Fundraising
3,288
3,288
In -kind
688
-
688
Insurance
5,667
3,125
447
9,239
Interest expense
2,876
241
227
3,344
Miscellaneous expense
4,450
-
4,450
Office expense
1,083
571
536
2,190
Postage
389
205
193
787
Professional fees
60
9,695
9,755
Program expenses
Resident needs
22,032
-
22,032
Household operations
5,832
-
5,832
Garden
1,722
-
1,722
Other
2,984
2,984
Security
630
-
630
Service fees
1,516
1,516
Vehicle
504
-
-
504
Total Administration
46,425
23,847
6,059
76,331
Total Expenses Before Depreciation
207,061
81,638
60,298
348,997
Depreciation
44,669
3,393
3,184
51,246
Total Expenses
$ 251,730 $
85,031 $
63,482 $
400,243
See accompanying notes to financial statements.
0
MAGDALENE SERENITY HOUSE, INC.
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2019
Program
Management
Fund
Service
& General
Raisin
Total
Compensation and Related Expenses
Salaries and wages $
91,721
$ 22,633 $
17,900 $
132,254
Employee benefits
1,692
418
330
2,440
Payroll taxes
7,884
1,946
1,539
11,369
Total compensation & related expenses
101,297
24,997
19,769
146,063
Occupancy
Rent
43,860
2,550
4,590
51,000
Repair and maintenance
404
-
404
Telephone
2,712
1,559
2,508
6,779
Utilities
4,055
236
424
4,715
Total Occupancy
51,031
4,345
7,522
62,898
Administration
Bank and credit card fees
-
2,246
-
2,246
Computer expenses
2,822
640
2,823
6,285
Commissions and fees
240
-
240
Conferences and training
$$7
-
887
Fundraising
-
-
9,283
9,283
Insurance
9,211
536
964
10,711
Interest expense
3,637
211
381
4,229
Office expense
1,019
586
943
2,548
Postage
173
100
161
434
Professional fees
-
9,500
9,500
Program expenses
Resident needs
13,923
-
13,923
Household operations
4,013
4,013
Garden
8,290
8,290
Other
812
812
Security
1,224
-
-
1,224
Service fees
-
1,494
1,494
Vehicle
610
-
-
610
Total Administration
46,861
15,313
14,555
76,729
Total Expenses Before Depreciation
199,189
44,655
41,846
285,690
Depreciation
45,152
2,692
4,314
52,158
Total Expenses
$ 244,341 $
47,347 $
46,160 $
337,848
See accompanying notes to financial statements.
7
MAGDALENE SERENITY HOUSE, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31,
2020
2019
Cash Flows From Operating Activities
Change in net assets
$ 264,144 $
113,825
Items not affecting cash
Depreciation
51,246
52,158
Unrealized loss on investments
(658)
(904)
(Increase) / decrease in:
Accounts receivable
(68,740)
(11,104)
Prepaid expenses
(5,534)
1,453
Increase / (decrease) in:
Accounts payable
(921)
(2,498)
Accrued liabilities
1,140
368
Net Cash Provided By Operating Activities
240,677
163,298
Cash Flows From Investing Activities
Net investment activity
100
36
Purchase of Aftercare house_
(229,193)
Net Cash Provided (Used) By Investing Activities
(229,093)
_
36
Cash Flows From Financing Activities
Proceeds from the Paycheck Protection Program loan
31,800
Principal payments on note payable _
(16,102)
(15,383)
Net Cash Provided (Used) By Financing Activities
_
15,698
_
(15,383)
Net Increase In Cash and Cash Equivalents
27,282
137,951
Cash and Cash Equivalents, Beginning of Year
275,721
137,770
Cash and Cash Equivalents, End of Year
$ 303,003 $
275,721
Supplemental Disclosure of Cash Flow Information
Interest paid $ 3,344 $ 4,229
See accompanying notes to financial statements.
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
Nature of Operations
Magdalene Serenity House, Inc. (the Organization) is a non-profit established in 2016. The Organization
is residential program that helps rebuild the lives of women who have experienced trauma, sexual
exploitation, addiction and incarceration by providing safe housing, long-term support and community
partnerships. The Organization provides a collaborative, comprehensive two-year residential program
that can comfortably house eight women, free of charge. The women must commit to achieve and
maintain a sober lifestyle, regain control of their lives and achieve financial independence.
In December 2020, the Organization purchased a house for an Aftercare program to help graduates
successfully reintegrate into the community through safe, supportive affordable housing. The new house
can accommodate up to four persons. Residents are charged monthly rent at below market rates and
the lease term is six months.
The Organization's primary source of revenue is derived from contributions and support from individuals,
private foundations and organizations.
1. Summary of Significant Accounting Policies
a. Recently Issued Accounting Standards
The Organization adopted the following standards during the year ended December 31, 2020:
In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-13, Fair Value
Measurement (Topic 820). This ASU amends the disclosure requirements for recurring and
nonrecurring fair value measurements by removing, modifying, and adding certain disclosures.
Adoption of this ASU did not have any effect on the financial statements.
In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial
Instruments- Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,
portions of which became effective in 2020. This ASU was issued to clarify and improve guidance
within the recently issued standards on credit losses, hedging and recognition and measurement of
financial instruments. Adoption of this ASU did not have any effect on the financial statements.
The Organization adopted the following standards during the year ended December 31, 2019:
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from
Contracts with Customers (Topic 606). The core principle of this guidance is that an entity 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 goods and
services. This ASU requires entities to make new judgements and estimates and provide expanded
disclosures about revenue. Adoption of this ASU did not have any effect on the financial statements.
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
1. Summary of Significant Accounting Policies (continued)
a. Recently Issued Accounting Standards (continued)
In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10):
Recognition and Measurement of Financial Assets and Liabilities. This ASU requires entities to
measure most investments at fair value with changes in fair value recognized through net income,
as well additional financial statement presentation and disclosure requirements. Adoption of this ASU
did not have any effect on the financial statements.
In June 2018, the FASB issued Accounting Standards Update No. 2018-08, Not-For-Prottt Entities
(Topic 958): Clarifying the Scope and Guidance for Contributions Received and Contributions Made.
This ASU establishes standards for characterizing grants and similar contracts with resource
providers as either exchange transactions or contributions with or without conditions. Adoption of
this ASU did not have any effect on the financial statements.
b. Basis of Accounting
The financial statements of the Organization have been prepared on the accrual basis of accounting
in accordance with U S. Generally Accepted Accounting Principles (GAAP) whereby revenues are
recognized as earned and expenses are recognized as obligations are incurred.
c. Financial Statement Presentation
Net assets of the Organization and changes therein are classified and reported as follows:
Net assets without donor restrictions - net assets that are not subject to or are no longer subject
to donor -imposed stipulations.
Net assets with donor restrictions - these net assets result from contributions or grant awards of
cash or other assets that are received with donor stipulations that limit the use of the donated
assets, either temporarily or permanently, until the donor restriction expires either with the passage
of time or by action of the Organization.
Revenues are reported as increases in net assets without donor restriction unless use of the related
assets is limited by donor -imposed stipulations. Expenses are reported as decreases in net assets
without donor restrictions. Gains and losses on investments and other assets or liabilities are reported
as increases or decreases in net assets without donor restrictions unless their use is restricted by
explicit donor stipulation or by law. Expirations of donor restrictions on the net assets (i.e., the
donor -stipulated purposes has been fulfilled and/or the passage of time has elapsed) are reported
as reclassifications between the applicable classes of net assets. The Organization has adopted a
policy to classify donor restricted contributions as without donor restrictions to the extent that donor
restrictions were met in the year the contribution was received.
10
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
1. Summary of Significant Accounting Policies (continued)
d. Financial Instruments
The Organization's financial instruments include cash and cash equivalents, pledges receivable
and accounts payable. The Organization's estimate of the fair value of all financial instruments does
not differ materially from the aggregate carrying value of its financial instruments recorded in the
accompanying statement of financial position. The carrying amount of these financial instruments
approximate fair value because of the short maturity of these instruments. Other financial instruments
held at year-end are investments which are stated at fair value.
e. Cash and Cash Equivalents
For purposes of the Statements of Cash Flows, the Organization considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents, excluding investment
sweep accounts.
f. Pledges Receivable
Unconditional pledges receivable that are expected to be collected within one year are recorded at
net realizable value. Unconditional pledges that are expected to be collected in future years are
recorded at the present value of their future cash flows. Ali of the Organization's pledges are due
within one year. The Organization believes that all pledges receivable are collectible and no allowance
for doubtful accounts is necessary at December 31, 2020 and 2019.
g. Prepaid Expenses
Payments made to vendors for services that will benefit future periods are recorded as prepaid
expenses using the consumption method by recording a current asset for the prepaid amount at
the time of purchase and reflecting the expense in the year which services are consumed.
h. Investments
Investments are carried at fair value. Investment income and gains that are initially restricted by
donor stipulation and for which the restriction will be satisfied in the same year are included in
net assets without donor restrictions. Other investment income, gains and losses are reflected in
the statements of activities as net assets without donor restrictions or net assets with donor
restrictions based upon the existence and nature of any donor or legally imposed restrictions.
11
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
1. Summary of Significant Accounting Policies (continued)
i. Donated Property and Equipment
Donations of property and equipment, if material, are recorded as support at their estimated fair
value. Such donations are reported as support without donor restrictions unless the donor has
restricted the donated asset for a specific purpose. Contributions of cash that must be used to acquire
property and equipment are reported as support with donor restrictions. Absent donor stipulations
regarding how long those donated assets must be maintained, the Organization reports expirations of
donor restrictions when the donated or acquired assets are placed in service as instructed by the
donor. The Organization reclassifies net assets with donor restrictions to net assets without donor
restrictions at that time.
i. Property and Equipment
The Organization records purchases of fixed assets at original cost. Expenditures for maintenance
and repairs are expensed as incurred. Depreciation is calculated using the straight-line method with
estimated useful lives as follows:
Years
Building and improvements 5 - 40
Equipment 3
Furniture and fixtures 3-7
Vehicles 5
It is the Organization's policy to capitalize all asset purchases with a cost greater than $1,500.
The Organization's depreciation expense for the years ended December 31, 2021 and 2019 was
$51, 328 and $52,158.
k. Compensated Absences
Employees earn paid time off (PTO) in varying amounts based upon full or part time employment
status with the Organization. Unused accrued PTO can carryforward from year to year, but can only
be used for parental or family medical leave. No unused accrued PTO is paid upon termination
from the Organization. Therefore no accrual for compensated absences is necessary at December 31,
2020 and 2019.
12
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
1. Summary of Significant Accounting Policies (continued)
I. Revenue Recognition
Conditional contributions and grants are those that contain a barrier that must be overcome before
the Organization is entitled to the assets transferred and a right of return of assets transferred or a
right of release of the donors obligation to transfer assets exists. Conditional contribution and grant
revenue is recognized when all barriers have been overcome. All other contributions and grants are
recognized when the donor makes a promise to give to the Organization that is, in substance,
unconditional. Contributions that are restricted by the donor are reported as increases in net assets
without donor restrictions if the restrictions expire in the fiscal year in which the contributions are
recognized. All other donor -restricted contributions are reported as increases in net assets with donor
restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net
assets without donor restrictions.
m. In -Kind Contributions
The Organization regularly receives contributions of supplies and other household items from various
donors. The Organization records these items at their estimated fair value when received.
n. Donated Services
Contributed services are recorded in the financial statements to the extent that those services create
or enhance a nonfinancial asset or meet the following criteria: a) the service requires specialized skills,
b) the service provided by individuals who possess those skills, and c) the service would typically need
to be purchased if not contributed. For the years ended December 31, 2020 and 2019, there were no
amounts recorded that met the criteria for recognition as described above, despite the considerable
value of donated time by volunteers to the mission of the Organization.
o. Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a functional
basis in the Statement of Activities and in the Statement of Functional Expenses. Directly
identifiable expenses are charged to programs and supporting activities. Expenses related to more
than one function are allocated to programs and supporting services. Expenses were allocated
using a variety of methods including employee time estimates, square footage and usage estimates.
p. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
13
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
I. Summary of Significant Accounting Policies (continued)
q. Reclassifications
Certain 2019 amounts have been reclassified in order to conform with the 2020 financial statement
presentation. Net assets and changes in net assets are unchanged due to these reclassifications.
2. Federal Income Tax
The Organization is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue
Code and a similar section of Arkansas statutes. Accordingly, no provision or liability for federal or state
income taxes has been included in the accompanying financial statements. In addition, the Organization
has been determined by the Internal Revenue Service not to be a private foundation within the meaning
of Section 509(a) of the Code.
Additionally, the Organization qualifies for the charitable contribution deduction under Section 170(b)(1)(A).
Generally accepted accounting principles require tax effects from an uncertain tax position to be
recognized in the financial statements only if the position is more likely than not to be sustained if
the position were to be challenged by a taxing authority. The assessment of the tax position is based
solely on the technical merits of the position, without regard to the likelihood that the tax position may be
challenged. If an uncertain tax position meets the more -likely -than -not threshold, the largest amount of
tax benefit that is greater than 50% likely to be recognized upon ultimate settlement with the taxing
authority is recorded. The Organization's primary tax positions relate to its status as a not -for -profit entity
exempt from income taxes and classification of activities related to its exempt purpose.
The Organization has analyzed its tax positions taken for filings with the Internal Revenue Service. It
believes that its filing positions will be sustained upon examination and does not anticipate any
adjustments that would result in a material adverse effect on its financial condition, results of operations,
or cash flows.
3. Bank Deposits
The Organization maintains its operating bank accounts in two local financial institutions. The
Federal Deposit Insurance Corporation (FDIC) insures accounts at each institution up to $250,000.
The Organization's cash balances may, at times, exceed these insured limits. At December 31, 2020
and 2019, the Organization had $60,383 and $14,596, respectively, in uninsured cash deposits. The
Organization does not believe that there is any significant risk associated with the concentrations of
credit nor has the Organization experienced any losses in such accounts.
14
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
4. Investments
The Organization maintains an account with an investment firm that contains cash and cash equivalents,
securities and other investments. Only the cash and cash equivalents in the account are FDIC insured
up to $250,000. The remaining investment balances are not insured by the FDIC or any other federal
government agency, nor are they protected against market losses on investments.
Investments are stated at fair value, which are estimated based on quoted market prices. Fair values
and unrealized appreciation (depreciation) is summarized as follows:
As of December 31, 2020 Cost Fair Value
Cash and cash equivalents $ 36,363 $ 36,263
Equities 1,972 3,396
Total $ 38,335 $ 39,659
As of December 31, 2019 Cost Fair Value
Cash and cash equivalents $ 36,363 $ 36,363
Equities 1,972 2,738
Total $ 38,335 $ 39,101
Investment expense is reflected on the statement of activities netted with interest and dividends.
Investment expense was $150 for both years ended December 31, 2020 and 2019.
5. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. Generally accepted
accounting principles establish a framework for measuring fair value that includes a hierarchy that
categorizes and prioritizes the sources used to measure and disclose fair value. When measuring a
fair value, a fair value hierarchy gives the highest priority to quoted prices in active markets for identical
assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Inputs are broadly
defined as assumptions market participants would use in pricing an asset or liability. The three levels
of the fair value hierarchy are described below:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or
liabilities, quoted prices in inactive markets, or other inputs that are observable or can be
corroborated by observable market data.
Level 3 - Unobservable inputs that reflect a reporting entity's own assumptions about the
assumptions that market participants would use in pricing an asset or liability.
15
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
5. Fair Value Measurements (continued)
Valuation techniques used need to maximize the use of observable inputs and minimize the use of
unobservable inputs. The valuation methods used may produce a fair value calculation that may not be
indicative of the net realizable value or reflective of future fair values. Furthermore, although the Organization
believes its valuation methods are appropriate and consistent with other market participants, the use
of different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different fair value measurement at the reporting date. There have been no changes in
the methodologies used at December 31, 2020.
The following table represents the Trust's investments that are measured at fair value on a recurring
basis at December 31, 2020:
Level Level Level Total
Cash and equivalents $ 36,263 $ - $ - $ 36,263
Equities 3,396 - 3,396
Total $ 39,659 $ - $ - $ 39,659
Equities are valued at market value as reported by the external investment fund manager
6. Property and Equipment
Activity of property and equipment consists of the following:
January 1,
December 31,
As Of
2020
Additions
Retirements 2020
Land
$ - $
39,226
$ - $ 39,226
Building and improvements
593,464
189,967
783,431
Equipment
10,032
- 10,032
Furniture and fixtures
24,433
-
24,433
Vehicles
24,080
24,080
Total
$ 652,009 $
229,193
$ - $ 881,202
In December 2020, the Organization purchased a house for its new Aftercare program. The house was
purchased in cash with donations received. The house is ready for occupancy, but the Organization
does have plans for future renovation of the basement which will cost approximately $115,000.
16
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
6. Property and Equipment (continued)
January 1, December 31,
As Of 2019 Additions Retirements 2019
Building and improvements $ 593,464 $ - $ - $ 593,464
Equipment 10,032 - - 10,032
Furniture and fixtures 24,433 - 24,433
Vehicles 24,080 - - 24,080
Total $ 652,009 $ - $ - $ 652,009
7. Paycheck Protection Program Loan
On May 8, 2020, the Organization received a loan of $31,800 from the Paycheck Protection Program
(PPP) under Division A, Title 1 of the CARES Act, which was enacted March 27, 2020. The loans and
accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for
eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. In April
2021, the Organization was granted 100% loan forgiveness by the Small Business Administration.
8. Note payable
In 2016, the Organization financed the remodeling of their facilities for $527,000. On December 29,
2017 the balance of the note was re -financed. The new note is due upon demand, but if no demand is
made, the Organization will make monthly payments of $1,621 including interest at 4.36% with the final
unpaid principal balance due December 29, 2022. The note is secured by the property and an assignment
of all rents on the property. The outstanding loan balance at December 31, 2020 and 2019 was $67,185
and $83,287 respectively.
Debt is scheduled to be repaid as follows:
December 31,
Principal
Interest
Total
2021
$ 16,815 $
2,631 $
19,446
2022
50,370
1,872
52,242
Total
$ 67,185 $
4,503 $
71,688
The activity of long-term debt is summarized below:
January 1, Debt Debt December 31,
As of 2020 Additions Retirements 2020
Promissory note $ 83,287 $ $ 16,102 $ 67,185
Total $ 83,287 $ - $ 16,102 $ 67,185
17
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
8. Note payable (continued)
January 1, Debt Debt December 31,
As of 2019 Additions Retirements 2019
Promissory note $ 98,670 $ - $ 15,383 $ 83,287
Total $ 98,670 $ - $ 15,383 $ 83,287
9. Rental Agreement I Related Party
The Organization's facilities are owned by St. Paul's Episcopal Church. St. Paul's Episcopal church
leases the facilities to the Organization free of charge under a verbal agreement that commenced in June
2016. The Organization has recorded in -kind revenue of $51,000 for both years ended December 31, 2020
and 2019 to reflect the value of the annual rent. The Organization rents the facilities on a month to month
basis and could cancel the lease at any time, although there is no intent to do so as of the date of these
financial statements.
10. Net Assets with Donor Restrictions
Net assets with donor restrictions were available for the following purposes:
As of December 31, 2020 2019
Aftercare program house renovations $ 54,957 $ -
Dental services 8,675 2,175
Resident food, hygiene products and mortgage 7,375 -
Lawncare 3,000 -
Tablets for telehealth 453 -
Artwork 100 100
Total $ 74,560 $ 2,275
11. Retirement Plan
The Organization sponsors a SIMPLE IRA plan for all employees who anticipate earning $5,000 during
the calendar year and have received at least $5,000 in compensation during the prior calendar year.
Employees can make pre-tax contributions to the plan with up to a 3% company matching provision.
Employer contributions to the plan for the years ended December 31, 2020 and 2019 were $4,368 and
$2,440, respectively.
18
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
12. Concentrations
Generally accepted accounting principles require disclosure of current vulnerabilities due to certain
concentrations. The Organization receives a significant amount of revenues from donations from
individuals and Organizations. Any large reduction in the level of support from these donations could
negatively impact the Organization. In addition, two donors accounted for approximately 41% and 44%
of total revenues and support during the years ended December 31, 2020 and 2019, respectively.
In addition, one different donor represented approximately 94% and 90% of the total pledges receivable
balance at December 31, 2020 and 2019, respectively,
13. COVID-19
On March 11, 2020, the World Health Organization categorized Goronavirus Disease 2019 (COVID-19)
as a pandemic. The spread of COVID-19 continues to cause global economic uncertainty as of the
date of this report. Due to the pandemic, the Organization was unable to hold any fundraising or other
special events and was limited in its ability to solicit individual donors. Staffing changes were made due
to a loss of volunteers and interns which was necessary for the safety of both the staff and residents.
The Organization also implemented social distancing practices as well as resident housing changes
such as maintaining an isolation bedroom and bathroom for any residents potentially exposed to the
virus. In addition, the Organization incurred additional expenditures for personal protection equipment,
cleaning supplies, training, and other costs necessary to ensure Center of Disease Control safety
guidelines. All of this had a negative impact on the Organization's operations. The Organization received
a $31,800 PPP loan (see Note 7), and additional funding from other sources totaling approximately
$95,000 to help minimize the loss of revenues. The Organization continues to monitor its operations,
liquidity, and capital resources to minimize the current and future impact of this unprecedented
situation.
14. Liquidity and Availability of Financial Assets
The Organization manages liquidity and reserves by operating within a prudent range of financial
responsibility, maintaining adequate liquidity to fund near -term operations and maintaining sufficient
reserves to provide reasonable assurance that long-term obligations will be met. The following reflects
the Organization's financial assets, reduced by amounts not available for general use within one year
because of contractual or donor -imposed restrictions or internal designations.
19
MAGDALENE SERENITY HOUSE, INC.
NOTES TO FINANCIAL STATEMENTS
FOR YEARS ENDED DECEMBER 31, 2020 AND 2019
14. Liquidity and Availability of Financial Assets (continued)
As of December 31,
2020
2019
Cash and cash equivalents
$ 303,003 $
275,721
Accounts receivable
79,844
11,104
Investments
39,659
39,101
Total financial assets available
422,506
325,926
Contractual or donor imposed restrictions:
Cash restricted for:
Aftercare program house renovations
54,957
-
Dental services
8,675
2,175
Resident food, hygiene products and mortgage
7,375
..
Lawncare
3,000
Tablets for telehealth
453
-
Artwork
100
100
Financial Assets Available to Meet Cash Needs for
Expenditures Within One Year
$ 347,946 $
323,651
15. Subsequent Events
The Organization has evaluated events and transactions for subsequent events that would impact the
financial statements for the year ended December 31, 2020 through August 25, 2021, the date the
financial statements were available to be issued. There were no subsequent events that require
recognition or disclosure in the financial statements.
20
Aftercare House Application
Rasic Information
Applicant Name: _
Date of Birth:
Race:
Email Address:
4u^&*
MAGDALENE
s: 1 'I i - I
. Age:
Ethnicity:
Phone:
Are you currently on parole? Q Yes No
Are you currently on probation? o Yes No
Supervising Officer Contact Info:
Mental & Physical Health:
Do you have any physical disabilities or limitations? Yes o No
If yes, can you please describe your physical disability and/or limitation(s)?
Are you currently on any medications? o Yes
If yes, please list medications:
Current Employer
Name of Employer:
Dates of Employment: From:
Position:
Attached Monthly Budget: Yes
No
P:7
To:
Wage:
Last Revised:4.14.2022 - Please do not replicate the application without prior authorization.
INTERNAL REVENUE SERVICE
P. O. BOX 2508
CINCINNATI, OH 45201
Date: J U H 0 3 2016
MAGDALENE SERENITY HOUSE INC
224 N EAST AVE
FAYETTEVILLE, AR 72701
Dear Applicant:
DEPARTMENT OF THE TREASURY
Employer Identification Number:
47-1870017
DLN:
27053082315026
Contact Person:
HAROLD J FODOR ID1# 31675
Contact Telephone Number:
(817) 829-5500
Accounting Period Ending:
December 31
Public Charity status:
170 (b) (1) (A) (vi)
Form 990/990-Ez/990-M Required:
Yes
Effective Date of Exemption:
September 30, 2014
Contribution Deductibility:
Yes
Addendum Applies:
No
We're pleased to tell you we determined you're exempt from federal income tax
under Internal Revenue Code (IRC) section 501(c)(3). Donors can deduct
contributions they make to you under IRC Section 170. You're also qualified
to receive tax deductible bequests, devises, transfers or gifts under
Section 2055, 2106, or 2522. This letter could help resolve questions on your
exempt status. Please keep it for your records.
Organizations exempt under IRC Section 501(c)(3) are further classified as
either public charities or private foundations. We determined you're a public
charity under the IRC Section listed at the top of this letter.
If we indicated at the top of this letter that you're required to file Form
990/990-EZ/990-N, our records show you're required to file an annual
information return (Form 990 or Form 990-EZ) or electronic notice (Form 99o-N,
the e-Postcard). If you don't file a required return or notice for three
consecutive years, your exempt status will be automatically revoked.
If we indicated at the top of this letter that an addendum applies, the
enclosed addendum is an integral part of this letter.
For important information about your responsibilities as a tax-exempt
organization, go to www.irs.gov/charities. Enter °4221-PC" in.the search bar
to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities,
which describes your recordkeeping, reporting, and disclosure requirements.
Letter 947
_2-
MAGDALENE SMUMITY HoUSE ZNC
We seat a copy of this letter to your representative as indicated in your
Power of attorney,
Sincerely,
F
Jeffrey . Cooper
Director, Exempt Organizations
Rulings and Agreements
Letter 947
SKILLS
• Non-profit administration
• Program design and evaluation
• Fundraising and development
• Data analytics & report writing,
• Clinical care and case
management
Legal advocacy
+ Web design, social media and
marketing
* Public speaking and grant writing
• Staff and intern supervision
+ Trained in Emotionally Focused
Therapy {EFT)
+ Smart Recovery Facilitator
EDUCATION
University of Kansas
August2009-201n
PhD in Social Welfare
University of Kansas
June 2008-May 2009
Master's in Social Work
University of Kansas
August 2003-May 2008
Bachelor's in Social Work
CONTACT
Phone (479) 313-1502
Email aprilbachrodt@gmail.com
L6000K F>1 1rffIENCF
EXECUTIVE DIRECTOR
Magdalene Serenity House I Sep 2018 Present
• Administration, program design and management
• Social media, marketing, web design, and management
• Resident care, case management, and treatment planning
• Community outreach, education, and training
• Fundraising, grant writing, and development
• Strategic planning, financial management, human resources
• Legal advocacy and Board management
FIELD INSTRUCTOR
University of Arkansas I May 2017 - Present
• Supervision of BSW, Advanced MSW, Clinical Counseling, English, and
Occupational Therapy interns.
PROGRAM DIRECTOR
Magdalene Serenity House I May 2017 Sep 2018
Administration, program design, and management
• Resident care, case management, and treatment planning
• Legal advocacy
ADJUNCT FACULTY
University of Arkansas - May 2017 - Sep 2018
• Taught Research Methods, Advanced Research Methods, Community
Practice, and Field Seminar
ASSISTANT PROFESSOR
University of Arkansas I Aug 2014 - May 2017
• Taught core research courses
+ Conducted grant funded research projects
* Grant writing, publication, and report writing
• Conference presentations and training
* Curriculum design, implementation, and evaluation
EDUCATION AND OUTREACH SPECIALIST
MOCSA I August 2009 - May 2010
• Designed and provided community education in schools on topics
including sexual assault, gender stereotypes, healthy relationships,
dating violence, and sexual harassment
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MAGDALENE
RENITY
To Whom it May Concern,
Magdalene Serenity House has not requested or received American Rescue Plan Act funds from other
sources.
With gratitude,
Dr. April Bachrodt, LCSW, PhD
Executive Director
Magdalene Serenity Houseapril@lovehealsnwa.or;z
PO BOX 3394 /I FAYETTEVILLE_ AR 72702 H 479 3012326 // APRiLCcd-LOVEHEALSNWA.ORG
D&W CONTRACTORS
NORTHWEST ARKANSAS . USA
Y.O. BOX 382
TONTITOWN. AR 72770
479-263-7263
MAGDALENE AFTERCARE HOUSE
1 029 N GREGG ST
FAYETTEVILLE AR
Item ' Description
Permit & Site Setup Building Permits
Demo Demo and waste/port a potty
Foundation Foundation/waterproofing
Concrete Concrete patching/report patio & walkway
Framing
Electrical & Lighting
Plumbing
H VAC
Insulation
Windows
Doors
Drywall
Cabinets
Trim & Millwork
Paint
Concrete
Floor Coverings
Cabinets
Miscellaneous
Plumbing
Electrical & Lighting
Appliances
Vanities
Hardware
Exterior Trim & Decks
Cleanup
Contingency
Gutter
Contractor fee
Tliank you,
Walter Potapov
I3 & W Contractors, Inc.
Framing
Electrical rough in / trimout
Plumbing rough in / topout / trimout
Heating & Cooling - ductwork and basement units
Insulation - batt insulation in basement walls, and blown attic
insulation
Windows - 5 casement
Doors & Trim
Drywall
Cabinets
Millwork & Trim
Interior Paint
Fix interior concrete cracks
Floor Coverings
Countertops
Tub surround
Plumbing fixtures
Electrical fixtures
Appliance installation
Kitchen backsplash
Hardware
Fence
Final clean
Contingency
Gutter guard
Contractor fee - $5,000 to start, then 20% of cost plus labor
Total
Estimate
4/25/2022
Total
800.00
6,700.00
22,200.00
8,000.00
8,300.00
10,000.00
18,000.00
9,250.00
1,800.00
2,300.00
3,500.00
10,000.00
4,750.00
10,000.00
11,500.00
1,800.00
10,160.00
3,500.00
600.00
2,400.00
700.00
300.00
960.00
1,350.00
17,850.00
300,00
21,000.00
600.00
42,724.00
$231,344.00
City of Fayetteville, Arkansas - Budget Adjustment (Agenda)
Budget Year Division Adjustment Number
/Org2 Non -Departmental (800)
2022
Requestor: Alderman, Mike Wiederkehr
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
A RESOLUTION TO AUTHORIZE MAYOR JORDAN TO SIGN A SUBRECIPIENT AGREEMENT WITH MAGDALENE SERENITY
HOUSE, INC. TO PROVIDE SUPPORTIVE RECOVERY HOUSING FOR FORMERLY INCARCERATED WOMEN UTILIZING AMERICAN
RESCUE PLAN ACT FUNDS IN THE AMOUNT OF $128,789.00, AND TO APPROVE A BUDGET ADJUSTMENT
RESOLUTION/ORDINANCE
COUNCIL DATE: 1/3/2022
ITEM ID#: 2022-242
Kevin Springer
721912022 4:20 PIVl
Budget Division Date
TYPE: D - (City Council)
JOURNAL#:
GLDATE:
CHKD/POSTED:
TOTAL
Account Number
128,789 128,789
Increase / (Decrease)
Expense Revenue
Project.Sub#
Project Sub.Detl AT
v.20221115
Account Name
2246.800.9246-4309.01
- 128,789
20023 2021 RE
Federal Grants - Operational
2246.800.9722-5315.00
128,789 -
20023 2021 EX
Contract Services
1 of ]
Magdalene Serenity House Subrecipient Agreement
City of Fayetteville Staff Review Form
2023-0349
Legistar N/File IDAARCHIVED
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Elizabeth Darden 3/14/2023 ACCOUNTING & AUDIT (131)
Submitted By Submitted Date Division / Department
Action Recommendation:
Recommend Mayor's signature of approval of a subrecipient agreement with Magdalene Serenity House, Inc.
amount of $128,789.00 to provide funding from the American Rescue Plan Act to fund a subrecipient grant
agreement that will expand the organization's supportive housing for formerly incarcerated female residents
currently residing in Fayetteville. Resolution 16-23 passed on 1/3/23 included the funding arrangements and
authorized Mayor Jordan to sign the subrecipient agreement.
Budget Impact:
Account Number Fund
Project Number
Budgeted Item? Current Budget
Funds Obligated
Current Balance
Does item have a cost?
Budget Adjustment Attached?
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Item Cost
Budget Adjustment
Remaining Budget
Project Title
I$
Previous Ordinance or Resolution e
Approval Date: 03/21/2023
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
TO: Mayor
THRU: Susan Norton, Chief of Staff
FROM: Elizabeth Darden, Grant Administrator
DATE: March 14, 2023
SUBJECT: Subrecipient Agreement — Magdalene Serenity House
STAFF MEMO
RECOMMENDATION:
Recommend Mayor Jordan's signature on the Magdalene Serenity House subrecipient
agreement.
BACKGROUND:
Resolution 16-23 passed and approved on 1/3123, authorized Mayor Jordan to sign a
subrecipient agreement with Magdalene Serenity House to expand the organization's supportive
housing for formerly incarcerated female residents in Fayetteville utilizing American Rescue
Plan Act Funds in the amount of $128,789.00.
DISCUSSION:
Magdalene Serenity House, Inc. submitted a request for funding under the ARPA program as a
subrecipient, to renovate their current property in order to increase the number of Fayetteville
residents they can assist.
BUDGET/STAFF IMPACT:
This Magdalene Serenity House, Inc. subrecipient program will be funded with American
Rescue Plan Act funds.
Attachments:
ARPA Subrecipient Contract with Magdalene Serenity House, Inc. and Resolution 16-23
attached at the end of the subrecipient contract.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
CITY OF
.� FAYETTEVILLE
ARKANS
ARKANSAS
SUBRECIPIENT AG REEM ENT for AMERICAN RESCUE PLAN
City of Fayetteville, AR
and
MAGDALENE SERENITY HOUSE, INC.
City of Fayetteville Subrecipient# ARPA-007
This Subrecipient Agreement (Agreement) is entered into and effective on this 21st
day of March 2023 between the aty of Fayetteville, hereafter referred to as ("the City) and
Magdalene Serenity House, Inc. (hereinafter referred to as "Magdalene" or the "subrecipient").
WHEREAS Magdalene Serenity House, Inc. requested funding to provide supportive recovery housing for
formerly incarcerated women; and
WHEREAS, The City of Fayetteville has received funding through the American Rescue Plan Act ("ARPA" or
the "Act"), from the United States Department of the Treasury; and
WHEREAS it shall be hereby disclosed this Agreement shall make Magdalene a subrecipient / pass -through
entity under 2 CFR 200.1 receiving a subaward under sections 602(c)(3) and 603(c)(3) of the Act and be
considered for this subaward to carry out a program or project on behalf of the City with the Citys Federal
award funding; and
WHEREAS, the otynotifies the subrecipient: (1) that this funding shall be considered a subaward of ARPA
funds; (2) subrecipient shall adhere to any and all compliance requirements for use of ARPA funds; and (3)
any and all reporting requirements for expenditures of ARPA funds; and
WHEREAS, this Agreement is reflective of requirements issued and identified with the AvI RUe of the
Department of the Treasury; that capital expenditures, in certain cases, can be appropriate responses to
the public health and economic impacts of the pandemic; and
WHEREAS the FHxa/ Rule of the Department of the Treasury maintains the eligibility of permanent
supportive housing as an enumerated use, and the City may use American Rescue Plan Act funds to expand
access to housing for specialized populations.
NOW, THEREFORE, in consideration of the covenants and conditions hereinafter set forth, the City and
subrecipient agree as follows:
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreement# ARPA-007
Page 1 of 19
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
1. INFORMATION REQUIRED BY THE UNIFORM GRANT GUIDANCE (UGG)4200.332�
a) Subrecipient Name (must match the name associated with its Unique Entity Identifier):
Magdalene Serenity House, Inc.
P.O. Box 3394
Fayetteville, AR 72702
EIN: 47-1870017
SubrecipienYs Unique Entity Identifier (formerly known as DUNS number): CHAYZYKV6HC9
b) Subaward Budget Period: Subaward budget period shall be set forth in Section 4 below.
c) Total Amount of Federal Funds obligated to the subreclpient by the City: $128,789
d) Name of Federal Awarding Agency and Contact Information:
United States Department of Treasury (US Treasury)
Attn: State and Local Fiscal Recovery Funds
1500 Pennsylvania Avenue NW,
Washington, DC 20220
SLFRP@tfeasury.goV
Telephone: 202-622-6415
WebsiLe: https;Hhome.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-
a nd-tribal-govem ments/state-and-loca I-fi sca I -recovery -fund
Contact Information for the City:
Paul A. Becker
Chief Financial Officer
113 W. Mountain
Fayetteville, AR 72701
pbecker@favetteville-ar.gov
Telephone: 479-575-8330
Contact Information for the Subreciplent:
Magdalene Serenity House, Inc.
Attn: April Bachrodt, Executive Director
P.O. Box 3394
Fayetteville, AR 72702
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreement# ARPA-007
Page 2 of 18
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
e) Assistance Listings Number and Title: 21.027 Coronavirus State and Local Fiscal Recovery Funds
(CSLFRF) (AKA the American Rescue Plan Local Recovery Funds, hereinafter AREA) See
htLps://sam.gov/fal/7cecfdef62dc42729a3fdcd449bd62b8/view
This subaward is a program grant and not for Research and Development.
f) Indirect Cost Rate: (de minimis cost rate) maximum of 10% of direct costs if indicated in the
budget.
2. AGREEMENT: This Agreement, contains the entire agreement and understanding between the parties
hereto and supersedes any prior or contemporaneous written or oral agreements, representations and
warranties between them respecting the subject matter hereof. This Agreement is also composed of
the following appendices:
a. Appendix A —Scope of Work& Project Allocation
b. Appendix B —Department of the Treasury, 31 CFR Part 35, RIN 1505-AC77, Comnavirus State
and Local Fiscal Recovery Funds, Action: Final Rule
c. Appendix C—Compliance and Reporting Guidance, State and Local Fiscal Recovery Funds
3. SUBCONTRACTING: Subrecipient is permitted to sub -contract with third parties to complete the scope
of work identified in this contract. Any subcontract or sub -sub recipient shall follow all federal, local
and state regulations. Subrecipient shall not be allowed to disperse funds in a subrecipient manner to
another third parry without prior written City approval.
4. PERIOD OF PERFORMANCE: This Agreement shall commence on the effective date stated above and
shall expire one year from commencement. The Agreement may be extended or shortened upon
mutual written agreement of the parties.
S. STANDARDS OF WORK: Subrecipient agrees that the performance of the work and services of this
Agreement shall conform to the highest professional standards.
6. TAXES: Subrecipient shall pay all current and applicable local, city, county, state and federal taxes,
licenses and assessments related to the Scope of Work to be performed by Subrecipient including but
not limited to those payments required by all federal, state and local laws, and any other laws and Acts
under which Subrecipient may be liable.
7. COMPLIANCE WITH APPLICABLE LAWS: Subrecipient shall perform all activities funded by this
Agreement in accordance with all applicable federal, state and local laws, including without limitation
laws which regulate the use of funds allocated under ARPA. The term "federal, state and local laws" as
used in this Agreement shall mean all applicable statutes, rules, regulations, executive orders,
directives or other laws, including all laws as presently in effect and as may be amended or otherwise
altered during the Agreement Term, as well as all such laws which may be enacted or otherwise become
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreementil ARPA-007
Page 3 of 18
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
effective during the Agreement Term. The term "federal, state and local laws" shall include, without
limitation:
a. Federal Requirements:
i. Subrecipient agrees to comply with the requirements of section 603 of the ARPA,
regulations adopted by Treasury pursuant to section 603(f) of the Act, and guidance
issued by Treasury regarding the foregoing. The Subrecipient also agrees to comply
with all other applicable federal statutes, regulations, and executive orders, and the
Subrecipient shall provide for such compliance by other parties in any agreements it
enters into with other parties relating to this award.
ii. Federal regulations applicable to this award include, without limitation, the following:
a. Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, 2 C.F.R. Part 200, other than such
provisions as Treasury may determine are inapplicable to this Award
and subject to such exceptions as may be otherwise provided by
Treasury. Subpart F —Audit Requirements of the Uniform Guidance,
implementing the Single Audit Act, shall apply to this award. The
following 2 CFR Part 200 Policy requirements are excluded from
coverage under this assistance listing: For 2 CFR Part 200, Subpart C,
the following provisions do not apply to the CSLFRF program: 2 C.F.R.
§ 200.204 (Notices of Funding Opportunities); 2 C.F.R. § 200.205
(Federal awarding agency review of merit of proposal); 2 C.F.A. §
200.210 (Pre -award costs);and 2 C.F.R. § 200.213(Reporting a
determination that a non -Federal entity is not qualified for a Federal
award). For 2 CFR Part 200, Subpart D, the following provisions do not
apply to the SLFRF program: 2 C.F.R. § 200.308 (revision of budget or
program plan); 2 C.F.R. § 200.309 (modifications to period of
performance); C.F.R. § 200.305 (b)(8) and (9) (Federal Payment).
b. Universal Identifier and System for Award Management (SAM), 2
C.F.R. Part 25, pursuant to which the award term set forth in Appendix
A to 2 C.F.R. Part 25 is hereby incorporated by reference. As SAM is
scheduled to be phased out, compliance with a successor
government -wide system officially designated by the Office of
Management and Budget (OMB).
c. Reporting Subaward and Executive Compensation Information, 2
C.F.R. Part 170, pursuant to which the award term set forth in
Appendix A to 2 C.F.R. Part 170 is hereby incorporated by reference.
d. OMB Guidelines to Agencies on Governmentwide Debarment and
Suspension (Nonprocurement), 2 C.F.R. Part 180, including the
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreement# ARPA-007
Page 4 of IS
CITY OF
FAYETTEVILLE
ARKANS
ARKANSAS
requirement to include a term or condition in all lower tier covered
transactions (contracts and subcontracts described in 2 C.F.R. Part
180, subpart B) that the award is subject to 2 C.F.R. Part 180 and
Treasury's implementing regulation at 31 C.F.R. Part 19.
e. Subrecipient Integrity and Performance Matters, pursuant to which
the award term set forth in 2 C.F.R. Part 200, Appendix %II to Part 200
is hereby incorporated by reference.
f. Govemmentwlde Requirements for Drug -Free Workplace, 31 C.F.R.
Part 20.
g. New Restrictions on Lobbying, 31 C.F.R. Part 21.
h. Uniform Relocation Assistance and Real Property Acquisitions Act of
1970 (42 U.S.C. §§ 4601-4655) and implementing regulations.
I. Generally applicable federal environmental laws and regulations.
iii. Statutes and regulations prohibiting discrimination applicable to this award include
without limitation, the following:
Title A of the CNII Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.) and
Treasury's implementing regulations at 31 C.F.R. Part 22, which
prohibit discrimination on the basis of race, color, or national origin
under programs or activities receiving federal financial assistance;
Subrecipient and its subcontractors, sub -recipients, sub -grantees,
successors, transferees, or assignees, shall comply with: Title VI of the
Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) and its
applicable federal statutory, regulatory authorities, other pertinent
directives, circulars, policy, memoranda, and guidance prohibiting
discrimination on the basis of race, color, national origin, age, sex, and
disability and give assurance that it will promptly take any measures
necessary to ensure such compliance.
b. The Fair Housing Act, Title VI II of the Civil Rights Act of 1968 (42 U.S.C.
§§ 3601 et sec.), which prohibits discrimination in housing on the
basis of race, color, religion, national origin, sex, familial status, or
disability;
c. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C.
§ 794), which prohibits discrimination on the basis of disability under
any program or activity receiving federal financial assistance;
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d. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et
sec.), and Treasurys implementing regulations at 31 C.F.R. Part 23,
which prohibit discrimination on the basis of age in programs or
activities receiving federal financial assistance; and
e. Title II of the Americans with Disabilities Act of 1990, as amended (42
U.S.C. §§ 12101 et sec.), which prohibits discrimination on the basis
of disability under programs, activities, and services provided or made
available by state and local governments or instrumentalities or
agencies thereto.
iv. Remedial Actions. In the event of the Subrecipieri noncompliance with section 603
of the Act, other applicable laws, Treasury's implementing regulations, guidance, or
any reporting or other program requirements, the City may impose additional
conditions on the receipt of a subsequent payments, if any, or take other available
remedies as set forth in 2 C.F.R. § 200.339. In the case of a violation of section 603(c)
of the Act regarding the use of funds, previous payments shall be subject to
recoupment as provided in section 603(e) of the Act.
v. Hatch Act. The Subrecipient agrees to comply, as applicable, with requirements of the
Hatch Act IS U.S.C. §§ 1501-1508 and 7324-7328), which limit certain political activities
of State or local government employees whose principal employment is in connection
with an activity financed in whole or in part by this federal assistance.
vi. False Statements. The Subrecipient understands that making false statements or
claims in connection with this award is a violation of federal law and may result in
criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages
and penalties, debarment from participating in federal awards or contracts, and/or any
other remedy available by law.
vii. Monitoring: The Subrecipient agrees to allow the City and the US Treasury to monitor
the subaward in accordance with all applicable statutes, regulations, OMB circulars,
and guidelines. The Subrecipient shall allow the City to have oversight of any
Subrecipient's spending and monitoring of specific outcomes and benefits attributable
to use of subaward funds by Subrecipient.
viii. Audits In accordance with the provisions of 2 CFR 200, Subpart F- Audit Requirements,
nonfederal entities that expend financial assistance of $750,000 or more in Federal
awards will have a single audit conducted for that year. Non-federal entities that
expend less than $750,000 a year in Federal awards are exempt from Federal audit
requirements for that year, except as noted in 2 CFR 200.503. The City is responsible
for resolving audit findings specifically related to the subaward and not responsible for
resolving cross -cutting findings (§200.332(d)(4)).
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ix. Disclosure of Information. Any confidential or personally identifiable information (PII)
acquired during the course of the subaward shall not be disclosed by the Subrecipient
to any person, firm, corporation, association, or other entity for any reason or purpose
whatsoever without the prior written consent of the City, either during the term of the
Agreement or after termination of the Agreement for any reasons whatsoever. The
Subrecipient agrees to abide by applicable federal regulations regarding confidential
information and research standards, as appropriate, for federally supported projects.
x. Conflicts of Interest. The Subrecipient understands and agrees it must maintain a
conflict of interest policy consistent with 2 C.F.R. § 200.318(c) and that such conflict of
interest polity is applicable to each activity funded under this award. Subrecipients
must disclose in writing to the City, as appropriate, any potential conflict of interest
affecting the awarded funds in accordance with 2 C.F.R. § 200.112.
b. City and Other City Requirements (see §201
i. Reporting: Subrecipient agrees to comply with any reporting obligations established
by the City as it relates to this award. Subrecipient shall submit a Monthly Grant Report
by the 6th of the month to the Contact for the City.
ii. Maintenance of and Access to Records:
a. The Subrecipient shall maintain records and financial documents
sufficient to evidence compliance with section 603(c) of the Act,
Treasury's regulations implementing that section, and guidance
issued by Treasury regarding the foregoing.
b. The US Treasury Office of Inspector General and the Government
Accountability Office, the City, or their authorized representatives,
shall have the right of access to records (electronic and otherwise) of
the Subrecipient in order to conduct audits or other investigations.
C. Records shall be maintained by Subrecipient for a period of five (5)
years after all funds have been audited, the audit resolved, and all
funds expended or returned to Treasury, whichever is later.
iii. Administrative Consideratlons. Where policies of the Subrecipient differ from those of,
such as travel reimbursement, fringe benefits, indirect costs, etc., the policies of the
subrecipient shall be applicable to cost incurrences under the Agreement provided
such policies comply with awarding agency regulations.
iv. Responsibilities. The Subrecipient agrees to furnish the necessary resources, materials,
services, and otherwise to do all things necessary for the performance of the work
described in Scope of Work, which is incorporated into the Agreement as Attachment
, along with the Budget required for that performance, which is incorporated into the
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Agreement as Attachment Band C respectively. (see Attachment B: Scope of Work and
Attachment C Budget). Subrecipient shall provide Monthly Reports as provided above.
v. Relationship of Parties. The parties are independent, and neither parry is the agent,
joint venturer, partner, or employer of the other.
vi. Rebudgeting and Prior Approvals. Subrecipient is permitted to rebudget direct costs,
if necessary, as described in the uniform guidance (§200.308) to better reflect
spending requirements, subject to the Citys written approval, and subject to the
federal awarding agency's policy and UGG's that would define requirements for prior
written approval (§200.407) before implementation.
vii. Monitoring Plan and Reporting. The City will monitor the Subrecipient to ensure that
the subaward is used for authorized purposes, in compliance with federal statutes,
regulations, and the terms and conditions of the subaward; and that subaward
performance goals are achieved, as required by §200.332(d). The City will monitor the
Subrecipient and identify any failures in the administration and performance of the
award. The monitoring plan will also serve to identify whether the Subrecipient needs
technical assistance.
In addition to program performance, The City will monitor financial performance as
required by §200.332(d)(1)). Monitoring will be used to document allowable and
unallowable costs, time and effort reporting and travel. Monitoring also will be used
to follow up on findings identified in an earlier monitoring visit, from document
reviews or after an audit to ensure the Subrecipient took corrective action
(§200.332(d)(2)).
As appropriate, the cooperative audit resolution process may be applied. The
monitoring plan may include on -site visits, follow-up, document and/or desk reviews,
third -parry evaluations, virtual monitoring, technical assistance and informal
monitoring such as email and telephone interviews.
The City will also issue management decisions for applicable audit findings as required
by §200.521 (§200.332(d)(3)). For reporting, UGG requires that the City and the
Subrecipient use OMB approved government -wide standard information collections
when providing performance information and data in reports.
The books and records of the Subrecipient shall be made available, if needed and upon
request, at subrecipient's regular place of business, for audit by personnel authorized
by the City or federal government. The Subrecipient books and records must be
retained for a period of five (5) years following receipt of final report, understanding
no other actions require an extension of the record retention period, such as open
audit findings, committed program income, or other reasons, as applicable.
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viii. Risk Assessments, Specific Conditions and Remedies. The City has conducted a risk
assessment as required by 4200.332(b) and determined the subrecipient's level of risk
as low. Risk assessments may be repeated throughout the project period after
scheduled reports, audits, unanticipated issues or other adverse circumstances that
may arise. In the event of noncompliance or failure to perform, the City has the
authority to apply remedies, as defined in the uniform guidance (4200.339), including
but not limited to: temporarily withholding payments, disallowances, suspension or
termination of the federal award, suspension of other federal awards received by the
subrecipient, debarment or other remedies including civil and/or criminal penalties, as
appropriate (4200.332(h). The City will also consider whether the monitoring results
of the Subrecipient necessitate adjustments to the its own record (see 4200.332(9)).
ix. Copyright/intellectual Property. The federal government will possess the entire
copyright, title, and interest in all materials, inventions or deliverables produced as a
result of this subaward, including use of logos, as appropriate. As a general principle,
subject to the rights of the federal government and with respect to any subject,
invention, material, or deliverable in which the City [and subrecipient] retain title
resulting from this subaward, the federal government shall have a nonexclusive,
nontransferable, irrevocable paid -up license to practice or have practiced for or on
behalf of the United States the subject invention, material or deliverable throughout
the world. The City and subrecipient will credit the federal award agency on any
materials, inventions or deliverables produced under the federal award and subaward.
C. Suspension and Debarment. Subrecipient represents that neither it nor any of its principals
has been debarred, suspended or determined ineligible to participate in federal assistance
awards or contracts as defined in regulations implementing Office of Management and Budget
Guidelines on Governmentwide Debarment and Suspension (Non -procurement) in Executive
Order12549. subrecipient further agrees that it will notify the City immediately if it or any of
its principals is placed on the list of parties excluded from federal procurement or non -
procurement programs available at www.sam.gov.;
d. DUNS Number. Subrecipient agrees and acknowledges the City may not grant the Subaward
and Subrecipient may not receive the Subaward unless Subrecipient has provided its Data
Universal Numbering System ("DUNS") number to the City. The DUNS number is the nine -digit
number established and assigned by Dun and Bradstreet, Inc. to uniquely identify business
entities;
e. Federal Funding Accountability and Transparency Act of 2006. Subrecipient agrees to provide
the City with all information requested by the City to enable the City to comply with the
reporting requirements of the Federal Funding Accountability and Transparency Act of 2006;
f. Licenses. Certifications, Permits Accreditation. Subrecipient shall procure and keep current
any license, certification, permit or accreditation required by federal, state or local law and
shall submit to the City proof of any licensure, certification, permit or accreditation upon
request; and
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g. Other City Agreements. Subrecipient shall fulfill all other agreements with the City and shall
comply with all federal, state and local laws applicable to programs funded by such
agreements.
8. LIMITATION OF FUNDING AND COMPENSATION: It is expressly agreed and understood that upon
execution of the Agreement, the City agrees to allocate no more than the amount $128,789 DOLLARS
for full and complete satisfactory performance of this Agreement. Drawdowns for the advance
payment of eligible expenses shall be made against the line item budgets specified in Appendix A in
accordance with the following procedures:
a. Subrecipient shall submit request to the City for the advance payment along with an invoice
or other documentation establishing the cost of the item.
b. The City will advance funds to Subrecipient forthe item.
c. Following Subrecipient's payment for the item, Subrecipient shall provide a receipt or other
proof of payment acceptable to the City within seven (7) days of payment.
d. The City may withhold advance funds for items if any required documentation has not been
provided for previous purchases within the time required by 8.c
Alternatively, the Subrecipient may request reimbursement for expenses by submitting monthly
invoices, itemized by budget category, along with copies of invoices, receipts, and other
documentation acceptable to the City. The City will then remit reimbursement payments to
Subrecipient within thirty (30) days of acceptance of the invoice.
9. SCOPE OF WORK: The Subrecipient shall perform all services according to the Scope of Work as
indicated in Appendix A Any deviation from the provisions detailed in the Scope of Work shall be
prohibited unless prior approval is granted by formal change order to this Agreement.
10. PUBLICITY AND USE OF NAME:
a. Any and all news releases, advertising, promotion, sales literature containing the City of
Fayetteville logo or name shall be subject to prior written approval of the other parry, and
subject to the prior written approval of the City, as appropriate. Any such publicity shall credit
the contributions of each party.
E. Neither party shall use the name,insignia, or trademark of the other party, nor any adaptation
thereof, nor the names of any of its employees in any advertising, promotion or sales literature
without the written consent of the other parry.
11. FISCAL AND ADMINISTRATIVE RESPONSIBILITIES:The Subrecipient agreesto comply with the provisions
of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR part 200) (the Uniform Guidance), including the cost principles and restrictions on
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general provisions for selected items of cost. as applicable, and all requirements and standards which
shall include but are not limited to the following:
a. Compliance with Federal Procurement Lawn The City hereby designates and the Subrecipient
hereby agrees to receive funding through the Clty's ARPA funding and to administer such
funding in accordance the United States Treasury Final Rule, 31 CFR Part 35, 87 FR 4446,
Coronavirus State and Local Fiscal Recovery Funds with this agreement. Compliance with
procurement laws shall be inclusive of all appendices within this Agreement.
All contracts for services and procurement for materials shall be carried out in compliance with
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards.
b. Compliance with Other Federal. State and Local Procurement: All contracts for services and
procurement for materials shall be carried out in compliance with and all other applicable
federal, state, and local rules and regulations, including regulations and policies from the City's
Purchasing Division.
City of Fayetteville Procurement Thresholds:
a. $0-$999: No quotes required
b. $1,000 - $2,499: minimum of 3 verbal quotes required
C. $2,500 - $34,999: minimum of 3 written quotes required
d. $35,000 and up: Formal sealed bid / solicitation process
i.Refer to State of Arkansas Procurement laws, City of Fayetteville Purchasing Policies and
Ordinances for requirements for formal solicitation processes.
c. Records and Reports: The Subrecipient shall, at a minimum, submit the following reports to
the City and report as required in Appendix C:
i. Monthly reports shall be submitted to the City fifteen (15) calendar days after month
end. Monthly reports shall be submitted on the City provided form and will provide
and outline funded activities undertaken during each month for the duration of the
project as it relates to Appendix A — Scope of Work & Project Allocation. Failure to
provide the required documentation and information will affect the funding in this
agreement and future requests for funding.
ii. A Final Summary Report due no later than thirty (30( calendar days after the end of
the Agreement period shall include a summary of all compiled information and
activities related to this Agreement
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iii. The Subrecipient agrees to maintain records and reports related to the project for a
period of no less than five years following the term of this Agreement.
iv. Access to Records (See §200.332(a)(5))
a. The City, its auditors, and if necessary, the federal agency, will be
provided access to the subrecipient's programmatic and financial
records (§200.337(a)).
It. The Subrecipient will maintain all programmatic and financial records,
including but not limited to:
I. records providing a full description of each activity
undertaken;
ii. records demonstrating that each activity undertaken meets
the national objectives of the federally- connected program;
iii. records required to determine the eligibility of activities;
iv. records required to document the acquisition, improvement,
use or disposition of real property acquired or improved with
the subaward assistance;
v. records documenting compliance with federal and local laws;
and
vi. financial records required by program regulations and the
Office of Management and Budget.
The Subrecipient shall retain all records pertinent to program
activities and financial expenditures incurred under this Agreement
for a period of three years after the date of submission of the final
expenditure report underthis award (§200.334). Notwithstanding the
above, if there are litigation, claims, audits, negotiations, written
notification from the federal program or cognizant agencies or the
City, or other actions that involve any of the records cited and that
have started before the expiration of the three year period, then such
records must be retained until completion of the actions and
resolutions of all issues (§200.334(a)), or the expiration of the three-
year period, whichever occurs later.
J. Documentation of Costs: The Subrecipient shall maintain records on materials purchased,
services performed, individuals and families served. All costs shall be supported by evidencing
in proper detail the nature and propriety of charges. All checks, payrolls, invoices, contracts,
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vouchers, orders or other accounting documents pertaining in whole or in part to this
Agreement shall be clearly identified and readily accessible.
Limitations on Expenditures. Subrecipient shall not be reimbursed or otherwise compensated
for any expenditures incurred or services provided prior to the Effective Date or following the
earlier of the expiration or termination of this Agreement. The City shall only reimburse
Subrecipient for documented expenditures incurred during the Agreement Term that are: (i)
reasonable and necessary to carry out the Scope of Work; (ii) documented by contracts or
other evidence of liability consistent with established federal, state and local procurement
guidelines; and (iii) incurred in accordance with all applicable requirements for the expenditure
of funds payable under this Agreement.
Improper Payments. Any item of expenditure by Subrecipient under the terms of this
Agreement which is found by auditors, investigators, and other authorized representatives of
the City, the U.S. Government Accountability Office or the Comptroller General of the United
States to be improper, unallowable, in violation of federal or state law or the terms of the
Notice of Prime Award or this Agreement, or involving any fraudulent, deceptive, or misleading
representations or activities of Subrecipient, shall become SubrecipienYs liability, to be paid by
Subrecipient from funds other than those provided by City under this Agreement or any other
agreements between City and Subrecipient. This provision shall survive the expiration or
termination of this Agreement.
g. Audited Financial Statements. In any fiscal year in which Subrecipient expends $750,000 or
more in federal awards during such fiscal year, including awards received as a subrecipient,
Subrecipient must comply with the federal audit requirements contained in 2 CFR § 200,
including the preparation of an audit by an independent Certified Public Accountant in
accordance with the Single Audit Act Amendments of 1996, 31 U.S.C. 7501-7507, and with
Generally Accepted Accounting Principles.' If Subrecipient expends less than $750,000 in
federal awards in any fiscal year, it is exempt from federal audit requirements, but its records
must be available for review by the City and appropriate officials of the U.S. Government
Accountability Office and the Comptroller General of the United States, and it must still have a
financial audit performed for that year by an independent Certified Public Accountant.
Subrecipient shall provide the City with a copy of Subrecipients most recent audited financial
statements, federal Single Audit report, if applicable (including financial statements, schedule
of expenditures of federal awards, schedule of findings and questioned costs, summary of prior
audit findings, and corrective action plan, if applicable), and management letter within thirty
(30) days after execution of this Agreement and thereafter within nine (9) months following
the end of SubrecipienYs most recently ended fiscal year.
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Closeout (see 200.332(a)(61): The City will determine whether all applicable administrative
actions areal required work have been completed by the Subrecipient at the end of the period
of performance. If the Subrecipient fails to complete the requirements, the federal awarding
agency or pass -through will proceed to closeout the award with the information available
(§200.344). The pass -through will note if closeout relates to the end of a 12-month period and
termination of subaward, or if the closeout relates to the end of a 12-month period and
preparation for an upcoming continuation period.
i. The City must provide timelines for completion of tasks (see §200.344).
ii. The City must identify submission dates of all performance and financial reports (no
later than 90 calendar days after the period of performance) (§200.344(a)).
iii. The City must describe requirements for liquidation of financial obligations iftheaward
is ending, or identification of carry-over of funds, if needed, to the next award period
(§200.344(b))
iv. The City must include completion of any other required closeout activities, such as
submission of deliverables, payments, if any, due to the Subrecipient from the City,
attribution to the federal agency and/or copyright or patent rights, and any accounting
of real or personal property (§200.344(c) and (0).
v. The Subrecipient must permitthe City and auditorsto have access to the subrecipient's
records and financial statements as necessary for audits and monitoring during the
record retention period of three years, or more as appropriate (§200.337(a)).
vi. The federal agency and/or City has the right to return to audit the program after
closeout at anytime during the record retention period and as long as the records are
retained, to conduct recovery audits including the recovery of funds, as appropriate
(§200.337(c)}.
12. COOPERATION IN MONITORING AND EVALUATION:
a. City Responsibilities. The City shall monitor, evaluate and provide guidance and direction to
Subrecipient in the conduct of Approved Services performed under this Agreement. The City
has the responsibility to determine whether Subrecipient has spent funds in accordance with
applicable laws, regulations, including the federal audit requirements and agreements and
shall monitor the activities of Subrecipient to ensure that Subrecipient has met such
requirements. The City may require Subrecipient to take corrective action if deficiencies are
found.
Subrecipient Responsibilities:
I. Subrecipient shall permit the City to carry out monitoring and evaluation activities,
including any performance measurement system required by applicable law,
regulation, funding sources guidelines or by the terms and conditions of the applicable
Notice of Prime Award, and Subrecipient agrees to ensure, to the greatest extent
possible, the cooperation of its agents, employees and board members in such
monitoring and evaluation efforts. This provision shall survive the expiration or
termination of this Agreement.
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ii. Subrecipientshall cooperate fully with any reviews or audits of the activities under this
Agreement by authorized representatives of the City, the U.S. Government
Accountability Office or the Comptroller General of the United States and Subrecipient
agrees to ensure to the extent possible the cooperation of its agents, employees and
board members in any such reviews and audits. This provision shall survive the
expiration or termination of this Agreement.
13. PROGRAM INCOME: It is not the intent of this Agreement to produce income relating from the Scope
of Work; however, income directly generated from the use funds associated with this Agreement by
the Subrecipient shall be returned to the City of Fayetteville.
14. MONITORING AND AUDITS: The City is required to ensure that federal funding requirements are met,
that the funds are used for the purpose of the program, and the Subrecipient complies with reporting
and auditing requirements. The City will monitor and audit the Subrecipient to assure the compliance
of project.
15. REMEDIES FOR NONCOMPLIANCE: If the Subrecipient fails to comply with any term in this Agreement,
the City may take one or more of the actions indicated in 2 CFR Part 200.338 Remedies for
noncompliance.
16. PERFORMANCE TERM EXTENSION: The City may consider an extension of the term of performance
based on justifiable circumstances beyond the control of the Subrecipient. The Subrecipient shall make
application and submit documentation to the City regarding such circumstances, and acceptance of a
proposal for the new time frame constitutes an amendment to this Agreement. Any such request for
extensions shall be subject to the written approval of the City. The decision of the City shall be final
and conclusive.
17. TERMINATION OF AGREEMENT: This Agreement may be terminated at any time by either party, upon
giving 30 calendar days written notice to the non -terminating party. This Agreement shall be
automatically terminated in the event that funds under federal award are discontinued by the awarding
agency for any reason. Such termination shall take effect upon receipt of written notice to Subrecipient
from the City. If there is a need to settle on an early termination, partial payment up to the termination
date would be determined by incurrence of allowable cost, by completion of task, by percent of time
completed up to the settlement, or some other method as defined by the City upon review of the
subrecipient's records.
18. CLAIMS AGAINST THE CITY: The Subrecipient agrees to defend, indemnify and save harmless the City
from any and all claims of any nature whatsoever which may arise from the Subrecipient's performance
of this Agreement; provided, however, that nothing contained in this Agreement shall be construed as
rendering the Subrecipient liable for acts of the City, its officers, agents or employees.
19. CONFLICTS OF I NTEREST: The Subrecipient represents that none of its employees, officers, or directors
presently have any interest, either directly or indirectly, which would conflict in any manner with the
Subrecipient's performance or procurement under this Agreement, and that no person having such
interest will be appointed or employed by the Subrecipient.
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20. BINDING EFFECT: This Agreement shall be binding upon and shall ensure to the benefit of the parties
hereto and their respective heirs and assigns; provided, however, that no assignment shall be effective
to relieve a parry of any liability under this Agreement unless the other parry has consented in writing
to the assignment and agreed to the release of such liability. The City and the Subrecipient hereby
acknowledge receiptof a duly executed copy of this Agreement complete with all Appendices attached
hereto.
21. PAYMENTS: Specific project completion dates may be negotiated during the contract term. Payment
may be reduced, delayed, or denied until acceptable work products are produced.
a. Costs shall be necessary, reasonable and directly related to the scope of the project in this
agreement. All costs shall be legal and proper. The budget included in Appendix A shall control
amounts of allowable expenditures within budget categories.
b. The total amount invoiced to the City over the course of the contract period shall not exceed
$128,789 Dollars, the agreed upon contribution of the City pursuant to Appendix A.
c. Unless advance payment is authorized by Section 8 above, on or before the fifteenth (15th)
day of each month and in any event no later than thirty (30) calendar days after the earlier of
the expiration or termination of this Agreement, Subrecipient shall submit invoices for the
most recent month ended, to the City, setting forth actual expenditures of Subrecipient in
accordance with this Agreement The Subrecipient shall provide backup documentation with all
invoices to show compliance with all federal, state and local laws.
d. The City may disapprove the requested compensation. If the compensation is so disapproved,
the City shall notify Subrecipient as to the disapproval. If payment is approved, no notice will
be given.
22. INSURANCE: Subrecipient shall, at all times throughout the Agreement Term, carry insurance in such
form and in such amounts as City may from time to time reasonably require against other insurable
hazards and casualties that are commonly insured against in the performance of similar services as are
to be provided under this Agreement. At a minimum, Subrecipient (or its contractor with respect to
the builders risk policy) shall maintain during the Agreement Term at least the following types and
limits of insurance coverage:
a. Workers compensation in amounts no less than required by law and statutory amount;
b. Commercial general liability insurance, including personal injury, contractual liability and
property damage, with limits of $1,000,000 per occurrence and $2,000,000 aggregate; and
c. Builder's Risk Policy upon the entire Project for the full cost of replacement at the time of
loss.
All policies (other than workers' compensation) providing such coverage shall name the City as an
additional insured with respect to Subrecipient's performance of services under this Agreement.
Subrecipient shall provide the City with certificates of insurance evidencing such coverage within
thirty (30) calendar days after execution of this Agreement, which certificates shall provide that
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreement# ARPA-007
Page 16 of 18
CITY OF
FAYETTEVILLE
ARKANSAS
the City shall receive thirty (30) days' advance written notice of any pending cancellation or non -
renewal of any of the coverages required by the City pursuant to this Agreement. Insurance
coverages that expire before the expiration of the Agreement Term shall be promptly renewed by
Subrecipient so that there is no gap in coverage and certificates of insurance evidencing such
renewal coverage shall be provided to the City, by a copy provided to the City immediately upon
renewal. SubrecipienYs failure to maintain insurance in the form and/or amounts required by the
Citypursuant to this Agreement shall be deemed a material breach of this Agreement and the City
shall have the right thereupon to terminate this Agreement immediately in addition to any other
remedy provided herein.
23. Changes in Scope or Price: Changes, modifications or amendments in scope, price or fees to this
agreement shall not be allowed without a prior formal contract amendment approved by the City in
advance of the change in scope, price or fees.
24. Freedom of Information Act: This Agreement is subject to the Arkansas Freedom of Information Act. If
a Freedom of Information Act request is presented to the City of Fayetteville, the subrecipient shall do
everything possible to provide the documents in a prompt and timely manner as prescribed in the
Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.). Only legally authorized
photocopying costs pursuant to the FOIA may be assessed for this compliance.
25. Jurisdiction: Venue to resolve any disputes shall be Washington County, Arkansas with Arkansas law
applying to the case. This Agreement shall be governed by and construed in accordance with the laws
of the State of Arkansas without regard to conflict of law principles.
26, Miscellaneous
a. Notices. Any notice, request, consent or approval required or permitted to be given under this
Agreement or pursuant to law shall be sufficient if in writing, and if and when sent by certified
or registered mail, with postage prepaid, to City's address or to the SubrecipienYs address as
listed below.
CITY OF FAYETTEVILLE, AR SUBREOPIEMT
ATTN: Mayor Lioneld Jordan ATTN: April Bachrodt, Exec, Director
113 W. Mountain P.O. Box 3394
Fayetteville, AR 72701 Fayetteville, AR 72702
b. Severability. If any term, provision, covenant or condition of this Agreement, or the
application thereof to any person, place or circumstance, shall be held to be invalid,
unenforceable or void, the remainder of this Agreement and such term, provision, covenant
or condition as applied to other persons, places and circumstances shall remain in full force
and effect.
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreement# ARPA-007
Page 17 of 18
CITY OF
��FAYETTEVILLE
ARKANS
ARKANSAS
c. Construction. The headings and captions of this Agreement are provided for convenience
only and are intended to have no effect in construing or interpreting this Agreement. The
language in all parts of this Agreement shall be in all cases construed according to its fair
meaning and not strictly for or against either party.
d. Rights Cumulative. The rights and remedies provided by this Agreement are cumulative, and
the exercise of any right or remedy by either party hereto (or by its successor(, whether
pursuant to this Agreement, to any other agreement, or to law, shall not preclude or waive its
right to exercise any or all other rights and remedies.
e. Assistance. The Subrecipient shall, during and after termination of services rendered, upon
reasonable notice, furnish such information and proper assistance to the City as may
reasonably be required by the City in connection with work performed by Subrecipient.
f. Compliance with Law. The Parties mutually represent that throughout the term of this
Agreement their respective performance under this Agreement shall be, and shall remain, in
compliance with all applicable federal, state and local laws and regulations.
CITY OF FA,�ETTEVILLE, AR MAGDALENE SERENITY HOUSE, INC.
By: ,A�'d
April Bachrodt, Executive Director
Attest:
By:
Kara
9
1 RkAN�
Date Signed: 03/21/2023
City of Fayetteville, AR and Magdalene Serenity House, Inc.
City of Fayetteville Subrecipient Agreement# ARPA-007
Page 18 of 18
14,
Magdalene Serenity House Subrecipient Agreement-Amendment No. 2
City of Fayetteville Staff Review Form
2024-0463
Item ID ARCHIVED
N/A
City Council Meeting Date-Agenda Item Only
N/A for Non-Agenda Item
Elizabeth Darden 7/15/2024 ACCOUNTING &AUDIT(131)
Submitted By Submitted Date Division/ Department
Action Recommendation:
Recommend Mayor's signature of approval for Magdalene Serenity House Subrecipient Agreement-Amendment#
2. Magdalene Serenity House Amendment#2 will extend the current subrecipient agreement to October 31, 2024
to allow more time to complete their renovation. Once the renovation has been completed, the Magdalene will be
able to provide supportive housing to more Fayetteville residents. Resolution 16-23 passed on 1/3/23 included the
budget and authorized Mayor Jordan to sign the original subrecipient agreement.
Budget Impact:
Account Number Fund
Project Number Project Title
Budgeted Item? Total Amended Budget $ -
Expenses (Actual+Encum) $ -
Available Budget
Does item have a direct cost? Item Cost $Is a Budget Adjustment attached? Budget Adjustment $ -
Remaining Budget
V20221130
Purchase Order Number: Previous Ordinance or Resolution# 16-23
Change Order Number: Approval Date: 07/19/2024
Original Contract Number:
Comments:
CITY OF
FAYETTEVILLE STAFF MEMO
ARKANSAS
TO: Mayor
THRU: Susan Norton, Chief of Staff
FROM: Elizabeth Darden, Grants Administrator
DATE: July 15, 2024
SUBJECT: Subrecipient Agreement— Magdalene Serenity House
RECOMMENDATION:
Recommend Mayor Jordan's signature on the Magdalene Serenity House subrecipient
agreement.
BACKGROUND:
Resolution 16-23 passed and approved on 1/3/23, authorized Mayor Jordan to sign a
subrecipient agreement with Magdalene Serenity House to fund a renovation that will provide
supportive recovery housing to formerly incarcerated female Fayetteville residents utilizing
American Rescue Plan Act Funds in the amount of$128,789.00.
DISCUSSION:
Magdalene Serenity House Amendment#2 will extend the current subrecipient agreement to
October 31, 2024 to allow more time to complete their renovation. Once the renovation has
been completed, Magdalene will be able to provide supportive housing to more Fayetteville
residents.
BUDGET/STAFF IMPACT:
This subrecipient program will be funded with American Rescue Plan Act funds.
Attachments:
Magdalene Serenity House Subrecipient Agreement—Amendment# 2, Magdalene Serenity
House Subrecipient Agreement—Amendment# 1, and Resolution 16-23 attached at the end of
the subrecipient contract.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
AMENDMENT#2 TO THE
SUBRECIPIENT AGREEMENT BETWEEN
THE CITY OF FAYETTEVILLE, ARKANSAS
AND
MAGDALENE SERENITY HOUSE
WHEREAS,on March 21,2023,pursuant to Resolution 16-23,the City of Fayetteville
and Magdalene Serenity House("Magdalene")entered into a subrecipient agreement to provide
funds in the amount of$128,789.00 to provide supportive recovery housing for formerly
incarcerated women; and
WHEREAS,on March 26,2024,Amendment#1 to the subrecipient agreement was
signed by Magdalene and the City extending the period of performance to August 31, 2024; and
WHEREAS, Magdalene has notified the City of continued construction and permit
delays on the project and has requested to extend the agreement to October 31, 2024.
NOW, THEREFORE,BE IT KNOWN TO ALL:
That the City of Fayetteville,Arkansas and Magdalene Serenity House,on this l2Siay
of ,2024,hereby agree that the Subrecipient Agreement dated March 21,2023,
as amended on arch 26,2024, shall be further amended to extend the Period of Performance to
August 31,2024, in accordance with the provisions of Section 4 of the Subrecipient Agreement.
The parties agree and understand that this Amendment is supplemental to their Agreement
and that it does not alter, amend or abridge any of the rights, obligations, or duties of the parties
not expressly addressed herein.
IN WITNESS WHEREOF, the parties hereto have caused their signatures to be set by
their authorized representative effective the date set forth herein a ove.
MAGDALENE SERENITY HOUSE CITY OF AYETT LEE
By By: ______
akama S on-Brooks, x cutrve Director L 0 .I JORDAN,Mayor
77:Date: /p2 - /.',0p� Date: 07/19/2024 ?����Ry`�/•TRe,�i,��
0 '•• ' •• • SG .
ATTE T: • G ••CI\
Se
_ . •sr.
wA �► _3:I'AYETTE.Vti_t_E;
.
KARA P , rty lerk/Treasuref 4>~