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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 W C) z Ld i17 0 w LU U) w LIJ (7 gn O 1^. N r .� W � uj Ix W .r c� cf1 I a5 C to G L iJJ CC qa z ❑ o 'D t�l < rev 0Lo E Z _o kw C 3 0 � W � u no Oo z i D — O 2 e b- Q r L O ] w o -Z i13 ll1 p�p Q Q *C LO > LLI 2 Q .yJ ,1 cyl z 1 r? -jo) 7:-a-j< Z cr 4T w w+ m cn f Q 4U E z Q1 LLL N < OI LL vG 0 CO M. P RZYBYS Z 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 § � k CL � o U ' to 2 2 � � k E - CL 3 � 0 ` ■ E q q §Ll 2 � a k - / � ■Jr AL± / C § ■ 3 2 � � 0 � c 22 0 E @ z J « U 4 E k � & � - s % J 2 LU 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; City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 5 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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)). City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 6 of 28 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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 City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement8 ARPA-007 Page 7 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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. City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 8 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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 City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreemeni ARPA-007 Page 9 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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 City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 10 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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 City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 11 of 18 CITY OF FAYETTEVILLE ARKANSKANSAS 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, City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 12 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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. City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 13 of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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. City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement# ARPA-007 Page 14 of 19 CITY OF .� FAYETTEVILLE ARKANS ARKANSAS 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. City of Fayetteville, AR and Magdalene Serenity House, Inc. City of Fayetteville Subrecipient Agreement8 ARPA-007 Page IS of 18 CITY OF FAYETTEVILLE ARKANS ARKANSAS 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>~