2008 mesa united way audit

MESA UNITED WAY

FINANCIAL STATEMENTS

JUNE 30, 2008

MESA UNITED WAY

TABLE OF CONTENTS

JUNE 30, 2008

INDEPENDENT AUDITORS’ REPORT

FINANCIAL STATEMENTS 1

STATEMENT OF FINANCIAL POSITION 2

STATEMENT OF ACTIVITIES 3

STATEMENT OF FUNCTIONAL EXPENSES 4

STATEMENT OF CASH FLOWS 5

NOTES TO FINANCIAL STATEMENTS 6

LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms. 1

INDEPENDENT AUDITORS' REPORT Board of Directors Mesa United Way Mesa, Arizona We have audited the accompanying statement of financial position of Mesa United Way (an Arizona non-profit organization) as of June 30, 2008 and the related statements of activities, functional expenses, and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Organization’s financial statements as of and for the year ended June 30, 2007. The Organization’s financial statements as of and for the year ended June 30, 2007 were audited by other auditors whose report dated November 21, 2007 expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mesa United Way as of June 30, 2008, and the changes in its net assets and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

LarsonAllen LLP

Mesa, Arizona March 6, 2009

MESA UNITED WAY STATEMENT OF FINANCIAL POSITION

JUNE 30, 2008 (with summarized information as of June 30, 2007)

The accompanying notes are an integral part of this financial statement. 2

2008 2007

ASSETS

Cash and cash equivalents 488,333$ 731,938$ Cash held in trust 306,600 174,739 Investments 500,275 417,010 Unconditional promises to give, net 1,076,887 1,289,123 Donor designated promises to give 1,214,785 892,190 Grants receivable 13,040 12,737 Prepaid expenses 18,896 1,866 Assets held by others 983,928 1,154,968 Interest in charitable remainder trusts 124,352 401,248 Property and equipment, net 773,843 807,566

TOTAL ASSETS 5,500,939$ 5,883,385$

LIABILITIESAccounts payable and accrued expenses 56,402$ 69,936$ Unfunded pension liability 168,361 73,923 Cash held in trust 306,600 174,739 Donor designated payables 1,228,467 978,891 Agency allocations payable 1,489,600 1,846,007

Total liabilities 3,249,430 3,143,496

NET ASSETSUnrestricted 1,898,922 2,133,018Temporarily restricted 352,587 606,871

Total net assets 2,251,509 2,739,889

TOTAL LIABILITIES AND NET ASSETS 5,500,939$ 5,883,385$

LIABILITIES AND NET ASSETS

MESA UNITED WAY STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2008 (with summarized information for the year ended June 30, 2007)


Temporarily

Unrestricted Restricted 2008 2007

SUPPORT AND REVENUESCampaign contributions

Annual campaign 5,920,503$ -$ 5,920,503$ 5,204,213$ Less: Provision for uncollectible promises to give (246,577) - (246,577) (354,554) Less: Donor designated contributions (3,000,999) - (3,000,999) (2,005,468) Other contributions 7,779 - 7,779 50,007

Total campaign contributions, net 2,680,706 - 2,680,706 2,894,198

Special program grants 15,207 234,912 250,119 270,165 Special events income, net 5,796 - 5,796 46,658 Investment income (loss) (80,042) - (80,042) 215,294

Total support and revenues 2,621,667 234,912 2,856,579 3,426,315

NET ASSETS RELEASED FROM RESTRICTIONS 212,301 (212,301) - -

EXPENSESProgram services

Agency allocations 1,475,401 - 1,475,401 1,893,827 Community impact 390,268 - 390,268 275,580 Grant programs 211,148 - 211,148 200,905 Community awareness 376,050 - 376,050 315,393

Total program services 2,452,867 - 2,452,867 2,685,705

Supporting activities Administrative 207,425 - 207,425 271,755 Fundraising 279,067 - 279,067 423,918

Total supporting activities 486,492 - 486,492 695,673

Total expenses 2,939,359 - 2,939,359 3,381,378

CHANGE IN OPERATING NET ASSETS (105,391) 22,611 (82,780) 44,937

NONOPERATING REVENUE AND EXPENSENet periodic pension cost (128,705) - (128,705) - Change in value of interest in charitable remainder trusts - (276,895) (276,895) (9,500)

Total nonoperating revenue and expense (128,705) (276,895) (405,600) (9,500)

CHANGE IN NET ASSETS (234,096) (254,284) (488,380) 35,437

NET ASSETS – Beginning of year 2,133,018 606,871 2,739,889 2,704,452

NET ASSETS – End of year 1,898,922$ 352,587$ 2,251,509$ 2,739,889$

Totals

MESA UNITED WAY STATEMENT OF FUNCTIONAL EXPENSES



Total TotalAgency Community Grant Community Program Supporting

Allocations Impact Programs Awareness Services Administrative Fundraising Activities 2008 2007

Salaries -$ 226,986$ 79,909$ 55,204$ 362,099$ 61,436$ 123,891$ 185,327$ 547,426$ 556,705$ Employee benefits - 36,374 17,955 12,919 67,248 14,388 23,947 38,335 105,583 81,986 Payroll taxes - 16,242 5,714 3,953 25,909 4,384 8,845 13,229 39,138 39,562 Retirement plans - 12,029 4,057 4,036 20,122 4,323 4,819 9,142 29,264 27,989 Campaign supplies - - - - - - 22,218 22,218 22,218 56,704 Conferences and training - 4,115 4,586 2,687 11,388 2,555 1,911 4,466 15,854 10,326 Contracted services - 2,867 74,318 9,440 86,625 364 14,731 15,095 101,720 147,140 Depreciation - 12,941 - 23,827 36,768 12,941 12,941 25,882 62,650 68,967 Dues and subscriptions - 4,312 - 276 4,588 4,779 292 5,071 9,659 4,363 Insurance - 4,109 1,030 1,245 6,384 2,284 1,175 3,459 9,843 10,211 Marketing - - - 324 324 432 28,211 28,643 28,967 27,541 Meetings - 3,248 91 529 3,868 93 1,056 1,149 5,017 8,675 Occupancy/utilities - 3,704 6,625 978 11,307 3,347 2,877 6,224 17,531 17,673 Office expense - 5,156 1,990 2,021 9,167 3,351 6,187 9,538 18,705 13,642 Postage and shipping - 796 1,588 311 2,695 2,641 2,699 5,340 8,035 15,711 Processing fees - - - - - 6,264 2,674 8,938 8,938 5,581 Professional fees - - - - - 19,481 - 19,481 19,481 12,225 Property tax - - - - - 4,236 - 4,236 4,236 4,233 Printing - 351 6,192 252,306 258,849 337 2,453 2,790 261,639 229,046 Repairs and maintenance - 7,971 2,349 2,475 12,795 8,198 6,227 14,425 27,220 30,223 Telephone - 7,395 1,611 2,223 11,229 2,841 3,080 5,921 17,150 17,739 Travel - 2,544 2,187 226 4,957 3,893 3,234 7,127 12,084 6,059 Special events - - - - - - 3,323 3,323 3,323 51,764 United Way of America dues - - - - - 42,645 - 42,645 42,645 43,486 Equipment leases - 2,521 946 1,070 4,537 1,971 2,276 4,247 8,784 - Agency initiatives - 36,607 - - 36,607 241 - 241 36,848 - Agency allocations 1,475,401 - - - 1,475,401 - - - 1,475,401 1,893,827

Total expenses 1,475,401$ 390,268$ 211,148$ 376,050$ 2,452,867$ 207,425$ 279,067$ 486,492$ 2,939,359$ 3,381,378$

Supporting Activities

Totals

Program Services

MESA UNITED WAY STATEMENT OF CASH FLOWS



2008 2007

CASH FLOWS FROM OPERATING ACTIVITIESChange in net assets (488,380)$ 35,437$ Adjustments to reconcile change in net assets to net

cash provided by operating activitiesDepreciation 62,650 68,967 Change in allowance for uncollectible promises to give (228,640) 460,458 Change in value of interest in charitable remainder trusts 276,896 9,500 Net unrealized (gains) losses on investments 147,660 (131,134) Net realized loss on investments 1,052 - (Increase) decrease in

Cash held in trust (131,861) (7,212) Unconditional promises to give and donor

designated promises to give 118,281 (224,086) Grants receivable (303) (6,197) Prepaid expenses (17,030) 26,839

Increase (decrease) inAccounts payable and accrued expenses (13,534) (22,588) Unfunded pension liability 94,438 - Cash held in trust 131,861 9,756 Donor designated and agency allocations payable (106,831) (101,124)

Net cash provided (used) by operating activities (153,741) 118,616 CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of investments 1,091,268 108,530 Purchases of investments (1,152,205) (230,335) Purchases of property and equipment (28,927) (50,880)

Net cash used in investing activities (89,864) (172,685)

Net decrease in cash and cash equivalents (243,605) (54,069) CASH AND CASH EQUIVALENTS - Beginning of year 731,938 786,007

CASH AND CASH EQUIVALENTS - End of year 488,333$ 731,938$

MESA UNITED WAY NOTES TO FINANCIAL STATEMENTS

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NOTE 1 OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES

Nature of Operations Mesa United Way (the “Organization”) was officially established in November 1956 as a non-profit philanthropic corporation under the laws of the State of Arizona. The Organization conducts the annual United Way Campaign on behalf of itself and its agency programs. The Organization also assesses and prioritizes critical human care needs in Mesa, Arizona. The Organization addresses these needs through allocations to social service agencies and community organizations.

The Organization is dependent upon undesignated contributions from corporate and individual donors to support its program services. The level of such contributions can be affected by economic conditions. In addition, the choice on the part of some donors to designate their gifts to specific agencies can result in reduced funding available for distributions and allocations. A decrease in undesignated contributions could adversely affect the Organization’s ability to provide services and to invest funds in social service agency programs.

The Organization has the following programs:

Agency Allocations Mesa United Way's Community Investment Process empowers people who live or work in Mesa to help invest community care contributions where they matter most. Volunteers from Mesa schools, companies, churches, and neighborhoods work in teams, visiting each agency in their area of interest to see first-hand how lives are being changed. They ask in-depth questions about the organization to determine its financial health, client outcomes and areas in need of improvement. Once the visits have been completed, the teams make recommendations for funding to the Mesa United Way Board of Directors. In many cases, funding is increased over the previous year to help the agency better serve the needs of the community. Sometimes, however, the volunteers determine that the money would be better spent in a different program or agency, and recommend reducing or eliminating funding. The result is an assurance that donor contributions are spent wisely, and in a manner that has maximum positive impact on the people of Mesa. With the community care dollars over 35 social service agencies provide 60 programs to carry out programs that enable children to live in a safe environment, succeed in school and become responsible, contributing adults; programs that provide safe shelter, food and other services to Mesa residents facing unforeseen hardships; programs that enable people with special needs and disabilities to live up to their fullest potential; programs that help frail elderly people and those suffering from Alzheimer’s or other forms of dementia.


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POLICIES (CONTINUED)

Community Impact The Community Impact program is responsible for carrying out Mesa United Way’s mission. This program brings Mesa United Way staff together with volunteers, agencies, and companies in Mesa to help members of our community lead better, more self-sufficient lives. Community Impact is accomplished through funding agency and grant programs, developing and executing initiatives and building relationships between community members. Current initiatives are Ready to Learn, a program designed to educate parents and community members about early childhood brain development; Foster Care, designed to raise awareness of the number of foster care children in the community and how people can get involved in helping these children; and 85204, designed to increase financial stability for individuals and families in that zip code.

Grant Programs KidsCan! – KidsCan! is a program at two Mesa schools that provides a safe place for children to go between the hours of 3pm and 7pm. Mesa United Way uses community care fund dollars to fund this program.

Ready To Learn – The Ready to Learn program’s purpose is to educate parents and community members about the importance of early childhood brain development to ensure Mesa children are properly prepared to learn when they begin school. This goal is achieved partly by providing parent education classes and networking opportunities. A DES grant funding a collaboration of agencies providing activities that will ensure our children are prepared to learn which is achieved through the Mesa United Way created Family Fun Van. The Family Fun Van travels to various locations from October – May each year and helps prepare pre-school aged children for school through storytelling, crafts activities, and providing them with books to encourage reading. Mesa United Way also works with the Mesa Regional School Readiness Partnership to analyze community needs and issues around early childhood development. This program receives funding from Arizona Early Education funds.


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Grant Programs (continued) PRIDE Mini-Grants – Mesa United Way's PRIDE (People and Resources to Improve, Develop and Energize Mesa's Neighborhoods) Mini-Grants Program encourages and supports residents in their efforts to build safer, healthier, and more self-sufficient neighborhoods. By funding project ideas which have evolved from shared community concern, we help assure that the people who are most affected by an issue or challenge are the ones who plan, design and implement the solutions. The result is increased community participation in neighborhood events, more active neighborhood association membership, sharpened leadership skills among community members, more input into decision-making, improved community conditions and greater involvement by youth and seniors in activities that benefit their community. Emergency Food and Shelter Program – Mesa United Way became the administrator for Phase 22 of the Emergency Food and Shelter Program (“EFSP”) and has continued to administer for Phase 23, 24, and 25. EFSP was created in 1983 to supplement and expand the work of local social service agencies, both non-profit and governmental, in an effort to help people with economic (not disaster related) emergencies.

Community Awareness (Communications) The Marketing and Communications program is responsible for developing ideas and concepts that will educate the community about Mesa United Way with the intention of inspiring people to volunteer and donate. This is done through the creation of marketing materials that explain Mesa United Way’s vision, mission, accomplishments, and goals.

Gross Collections Summary A summary of the gross collections for the years ended June 30, 2008 is as follows:

Annual campaign (gross) 5,920,503$ Special program grants 250,119 Special events income, net 5,796 Other contributions 7,779

Gross collections 6,184,197$


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NOTE 1 OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Gross Collections Summary (continued) Functional overhead for a non-profit organization is defined as the expenses incurred in the administrative and fundraising supporting activities. These costs are detailed in the accompanying statement of functional expenses under the column titled “Total Supporting Activities.” The administrative and fundraising costs for the fiscal year ended June 30, 2008 totaled approximately $486,000. The Organization has established the Corporate Cornerstone program which allows corporations, foundations, small businesses and individuals to direct their contributions (including in-kind donations) toward underwriting annual administrative expenses, thus effectively lowering the percentage of regular campaign donations required to cover administrative and fundraising costs. The chart below summarizes the results of the Corporate Cornerstone program for the fiscal year ended June 30, 2008:

Total administrative and fundraising 486,492$ Less: Corporate Cornerstone donations (389,098) Less: In-kind donations (20,178) Less: Interest and Dividends (68,670) Less: Special events income, net (5,796)

Net administrative and fundraising 2,750$ Net administrative and fundraising as a percentage

of gross annual campaign 0.05%

Basis of Presentation The financial statements are presented in accordance with the Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. SFAS No. 117 established standards for external financial reporting by not-for-profit organizations and requires that information regarding its financial position and activities be classified into three net asset categories. Descriptions of the three net asset categories are as follows:

Unrestricted net assets – includes amounts not restricted by donors, whether or not designated for specific purposes by the Board of Directors.

Temporarily restricted net assets – includes amounts whose use by the Organization is restricted by donor imposed stipulations that either expire by passage of time or other specified future events, or can be fulfilled and removed by actions of the Organization pursuant to those stipulations.


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POLICIES (CONTINUED) Permanently restricted net assets – include amounts which require, by donor restriction, that the asset principal be invested in perpetuity and the income be used in accordance with donor stipulations.

Measure of Operations In its statement of activities, the Organization includes in its definition of operations all revenues and expenses that are an integral part of its programs and supporting activities. Nonoperating activity consists primarily of periodic pension costs and changes in the Organization’s interest in charitable remainder trusts.

Prior Year Summarized Information The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization’s financial statements for the year ended June 30, 2007, from which the summarized information was derived.

Cash and Cash Equivalents The Organization considers all highly liquid debt instruments with a remaining maturity of three months or less at date of acquisition to be cash equivalents.

Cash Held in Trust The Organization acts as a fiduciary for various donors. These funds will be released when donors request them to be transferred to various charitable organizations.

Investments Investments consist primarily of equity and fixed income mutual funds and are recorded at fair value as determined by quoted market prices. Investment income or loss (including realized and unrealized gains and losses on investments, interest and dividends) is included in the change of net assets in the accompanying statement of activities.


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Contributions The Organization accounts for contributions in accordance with SFAS No. 116, Accounting for Contributions Received and Contributions Made. Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence and/or nature of any donor restrictions. All donor-restricted support is reported as an increase in temporarily or permanently restricted net assets in the statement of activities depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily or permanently restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. However, if a restriction is fulfilled in the same time period in which the contribution is received, the Organization reports the support as unrestricted. Unconditional promises to give designated by donors to specific not-for-profit organizations are segregated as such in the accompanying financial statements as donor designated receivables and donor designated payables. Donors may choose to designate all or part of their contributions to be distributed to specific charitable organizations. These transactions are reported in the statement of activities as part of the current year Mesa United Way Annual Campaign and are then deducted as amounts designated to other organizations to arrive at net campaign revenue. Amounts so deducted are carried as liabilities until received and then paid to the designated charitable organization.

Contributions of donated non-monetary assets are recorded at their fair values in the period received. Contributions of donated services that create or enhance nonfinancial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair values in the period received. In-kind contributions include printing, food for receptions, rent, and advertising. In-kind contributions in the amounts of approximately $273,000 for the year ended June 30, 2008, are included in annual campaign and other contributions revenue. Corresponding amounts have been reflected as expenses in the accompanying financial statements.


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Contributions (continued) In-kind contributions were allocated among programs services and supporting activities as follows:

Program servicesCommunity impact -$ Grant programs 2,572 Community awareness 250,000

Supporting activitiesAdministrative - Fundraising 20,178

Total 272,750$

Property and Equipment Acquisitions of property and equipment in excess of $1,500 are capitalized. Property and equipment are stated at cost, or, if donated, at the approximate fair value at the date of donation. Depreciation of property and equipment is provided on a straight-line basis over the estimated useful lives of the respective assets.

Major additions and improvements are capitalized. Maintenance and repairs are expensed as incurred. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the accounts and gains and losses are included in the statement of activities.

Agency Allocations Payable Agency allocations payable are recorded when the Board of Directors has approved and communicated allocations to the recipient agencies as recommended by a review panel.

Income Taxes The accompanying financial statements do not include a provision for federal and state income taxes as the Organization is a not-for-profit organization exempt from the income taxes under Section 501(c)(3) of the Internal Revenue Code.

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 the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.


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Fundraising Costs The Organization expenses all fundraising costs as they are incurred.

Functional Allocation of Expenses The costs of providing the Organization’s programs and supporting activities have been summarized in the statement of functional expenses. Accordingly, certain costs have been allocated among the programs and supporting activities. These costs are allocated by the actual cost incurred, by estimated costs based on per hour rate of the employee who performed the service, or by estimates of benefits derived.

Reclassifications Certain reclassifications have been made to the 2007 financial statements to conform to the 2008 presentation. These changes had no effect on the change in net assets.

NOTE 2 UNCONDITIONAL PROMISES TO GIVE

A summary of annual campaign contributions, uncollected promises to give, and allowance for uncollectible promises to give at June 30, 2008 are as follows:

Original Allowance forAmount Uncollected Uncollectible Net

of Promises to Promises to PromisesContributions Give Give to Give

Unconditional promises to give 2007 campaign 1,230,275$ (246,577)$ 983,698$ Prior campaigns 363,430 (270,241) 93,189 Total unconditional promises to give 1,593,705 (516,818) 1,076,887 Donor designated promises to give 2007 campaign 509,482 - 509,482 Prior campaigns 705,303 - 705,303 Total donor designated promises to give 1,214,785 - 1,214,785 Total 5,920,503$ 2,808,490$ (516,818)$ 2,291,672$

As of June 30, 2008, unconditional promises to give reflect those amounts not collected from the annual campaign, conducted from July 2007 through May 2008. Promises include both unrestricted funds and donor-designated funds. A reserve for uncollectible amounts has been established based on historical collection rates.


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NOTE 3 INVESTMENTS

The Organization accounts for investments at fair value in accordance with SFAS No. 124, Accounting of Certain Investments Held by Not-For-Profit Organizations. Investments with readily determinable fair values are based on quoted market prices. Investments consisted of the following at June 30, 2008:

Mutual funds - equity securities 500,275$

Total investments 500,275$

Investment income loss (including the change in assets held by others described in Note 11) consisted of the following for the year ended June 30, 2008:

Interest and dividends 68,670$ Net realized losses (1,052) Net unrealized losses (147,660)

Total investment loss (80,042)$

The Organization provides for investment in a variety of investment funds. In general, investments are exposed to various risks, such as interest rate, credit and overall market volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of the investments will occur in the near term and that such changes could materially affect investment balances and the amounts reported in the balance sheet.

NOTE 4 INTEREST IN CHARITABLE REMAINDER TRUSTS

The Organization has been designated as an irrevocable beneficiary of various charitable remainder trusts, in accordance with its agreement with Ameritrust Network, Inc. These trusts are expected to be realized over approximately the next 50 years at their present value, using a discount rate of six percent, and an expected date of distribution based on trust stipulations and mortality tables. Changes in the valuation of this receivable are recorded in the accompanying financial statements as a change in the value of interest in charitable remainder trusts. Because of inherent uncertainties in estimating the value of these agreements, it is at least reasonably possible that these estimates will change within the near future.


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NOTE 5 PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at June 30, 2008:

Land 305,980$ Buildings and improvements 550,601 Vehicles 70,680 Furniture and equipment 215,714 Total property and equipment 1,142,975 Less - Accumulated depreciation (369,132) Property, net

and equipment 773,843$

Depreciation expense for the year ended June 30, 2008 totaled approximately $63,000.

NOTE 6 RELATED PARTY TRANSACTIONS

The Organization was required to pay monthly dues to United Way of America, its national affiliate, in the amounts of approximately $43,000 for the year ended June 30, 2008. At June 30, 2008, the Organization’s dues payable to United Way of America were approximately $21,000.


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NOTE 7 AGENCY ALLOCATIONS

Agency allocations payable and donor designated payables, as noted in the statement of financial position, were as follows, at June 30, 2008:

A&A Cottages 22,500$ Aid to Adoption of Special Kids 8,000 Advocates for the Disabled 28,000 Alzheimer's Allocation 10,000 Arizona Center for the Blind and Visually Impaired 14,000 Assistance for Independent 5,000 Boy Scouts of America Grand Canyon Council 84,000 Boys & Girls Club of the East Valley 161,000 Catholic Charities 16,000 Central Arizona Shelter Services 25,000 Child Crisis Center of the East Valley 50,500 Community I & R 7,500 Community Legal Services 50,000 East Valley Senior Services 116,400 EMPACT Suicide Prevention Center 12,000 Foundation for Blind Children 52,000 Gabriel's Angels 5,000 Gene Lewis Boxing 20,000 Girl Scouts Arizona Cactus Pine Council 5,000 Hemophilia Association 10,200 MARC Center 126,000 Mesa Family YMCA 10,000 PREHAB - Mesa Community Action Network 203,000 PREHAB of Arizona 137,700 Salvation Army 75,000 Save the Family Foundation 116,000 Shoe Box Ministries 5,000 Sirrine Adult Day Care Center 96,000 Teen Lifeline 14,500 Valley Center for the Deaf 4,300

Total agency allocations payable 1,489,600 Donor designated payable 1,228,467

Total 2,718,067$


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NOTE 7 AGENCY ALLOCATIONS (CONTINUED)

Agency allocations are paid monthly in twelve equal installments. Donor designations are paid quarterly as the donor designated promises to give are collected by the Organization.

NOTE 8 OPERATING LEASES

The Organization leases certain office equipment under various operating lease agreements, which expire at various times through February 2011. Minimum future rental payments under these non-cancelable operating leases are as follows:

Year Ending

June 30 Amount2009 10,217$ 2010 6,069 2011 2,405

Total minimum future rental payments 18,691$

Total rent expense under these operating lease agreements was approximately $12,000 for the year ended June 30, 2008.

NOTE 9 RETIREMENT PLANS

Defined Contribution Plan The Organization sponsors a defined contribution plan in which employees are eligible to participate after completing a full year of service and are at least 21 years of age. The plan provides for discretionary employer contributions, subject to limitations of the Internal Revenue Code. These discretionary contributions, determined by the Board of Directors, are allocated among participants based on annual compensation. The contribution to the CEO’s retirement plan is at 10% of her gross earnings.

Employer contributions to the plan amounted to approximately $29,000 for the year ended June 30, 2008.


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NOTE 9 RETIREMENT PLANS (CONTINUED)

Defined Benefit Pension Plan As of July 1, 1993 (the “Effective Date”), the Organization curtailed its defined benefit pension plan, with all participants becoming 100% vested and their monthly payment fixed. As a result, no benefits have accrued and no employees have entered the Plan after the Effective Date. As of June 30, 2008, the Organization’s projected benefit obligation to the participants of this plan was estimated to be approximately $235,000, of which approximately $168,000, was unfunded. The change in the projected benefit obligation is due to typical life expectancy changes of the remaining two participants.

NOTE 10 TEMPORARILY RESTRICTED NET ASSETS

Temporarily restricted net assets released from program restrictions during the year ended June 30, 2008 consisted of the following:

Special program grants 234,912$

Temporarily restricted net assets were available for the following purposes at June 30, 2008:

Youth initiatives 210,475$ Mesa partnership for children with special needs 3,401 Charitable remainder trusts 124,352 National Council on Aging initiative 14,359

Total temporarily restricted net assets 352,587$

NOTE 11 ASSETS HELD BY OTHERS

The Organization follows SFAS No. 136, Transfers of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions for Others. SFAS No. 136 establishes standards for transactions in which a community foundation accepts a contribution from a donor and agrees to transfer these assets, the return on investment of these assets, or both, to another entity that is specified by the donor.


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NOTE 11 ASSETS HELD BY OTHERS (CONTINUED)

SFAS No. 136 specifically requires that if a not-for-profit organization establishes a fund at a community foundation with its own funds and specifies itself as the beneficiary of that fund, it must record the fund as an asset and the community foundation must account for the fund as a liability. The Foundation has such funds with Mesa Community Foundation, Inc. (MCF). The amounts held by MCF at June 30, 2008 are recorded in the accompanying statement of financial position as assets held by others. The Organization may draw on these funds subject to the terms of the agreement when the funds were transferred to MCF. The activity associated with the changes in the funds is included in investment income in the accompanying statement of activities. Investments included in assets held by others consisted of the following at June 30, 2008:

Equities and equity funds 625,703$ Fixed income obligations and funds 280,476 Real estate funds 15,386 Commodities 10,208 Cash and money market funds 52,155

Total assets held by others 983,928$

NOTE 12 CONCENTRATION OF CREDIT RISK

Financial instruments that subject the Organization to potential concentrations of credit risk consist principally of cash and cash equivalents and receivables. The Organization maintains its cash in bank accounts, which at times may exceed federally insured limits. At times during the year the Organization’s bank balances may exceed federally insured limits. The Organization has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash balances. Concentrations of credit risk with respect to receivables are limited due to the large number of donors comprising the Organization’s receivable base.

2008 mesa united way audit

Documents

statement of cash flows

statement of activities

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united states of america

cash equivalents

net assets

prior year

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