tempe scottsdale casa grande · in making those risk assessments, the auditor considers internal...

TECHNICAL ASSISTANCE PARTNERSHIP

OF ARIZONA

Phoenix, Arizona

FINANCIAL STATEMENTS AND UNIFORM GUIDANCE SUPPLEMENTARY REPORTS

Years Ended June 30, 2017 and 2016

Fina

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INDEPENDENT AUDITORS’ REPORT To the Board of Trustees Technical Assistance Partnership of Arizona Phoenix, Arizona Report on the Financial Statements We have audited the accompanying financial statements of Technical Assistance Partnership of Arizona (a nonprofit organization), which comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Tempe • Scottsdale • Casa Grande www.hhcpa.com

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Technical Assistance Partnership of Arizona as of June 30, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary schedule of net assets information for the year ended June 30, 2017, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not required parts of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 19, 2017 on our consideration of Technical Assistance Partnership of Arizona’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Technical Assistance Partnership of Arizona’s internal control over financial reporting and compliance.

Tempe, Arizona September 19, 2017

TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASTATEMENTS OF FINANCIAL POSITIONJune 30, 2017 and 2016

2017 2016

CURRENT ASSETSCash and cash equivalents 486,980$ 313,892$ Accounts receivable 232,779 133,524 Loans receivable 34,447 - Promises to give 158,710 37,775 Prepaid expenses and other assets 68,149 28,289

TOTAL CURRENT ASSETS 981,065$ 513,480$

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts payable 19,771$ 26,615$

TOTAL CURRENT LIABILITIES 19,771 26,615

NET ASSETSUnrestricted 212,274 177,834 Temporarily restricted 749,020 309,031

TOTAL NET ASSETS 961,294 486,865

TOTAL LIABILITIES AND NET ASSETS 981,065$ 513,480$

See accompanying notes. 1

TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASTATEMENTS OF ACTIVITIESYears Ended June 30, 2017 and 2016

TemporarilyUnrestricted Restricted Total

REVENUES AND OTHER SUPPORTContributions 126,867$ 1,253,106$ 1,379,973$ Program revenue 1,754,705 - 1,754,705 Interest income 31 - 31 Net assets released from restrictions 813,117 (813,117) -

TOTAL REVENUES AND OTHER SUPPORT 2,694,720 439,989 3,134,709

GRANTS AND EXPENSESProgram expenses

Contributions to health carerelated organizations 111,632 - 111,632

Other program expenses 2,266,465 - 2,266,465

Total program expenses 2,378,097 - 2,378,097

Supporting expensesAdministrative expenses 255,067 - 255,067 Fundraising expenses 27,116 - 27,116

Total supporting expenses 282,183 - 282,183

TOTAL GRANTS AND EXPENSES 2,660,280 - 2,660,280

CHANGE IN NET ASSETS 34,440 439,989 474,429

NET ASSETS -BEGINNING OF YEAR 177,834 309,031 486,865

NET ASSETS - END OF YEAR 212,274$ 749,020$ 961,294$

2017


TemporarilyUnrestricted Restricted Total

175,714$ 543,991$ 719,705$ 436,779 - 436,779

3 - 3 520,686 (520,686) -

1,133,182 23,305 1,156,487

60,763 - 60,763 817,491 - 817,491

878,254 - 878,254

196,300 - 196,300 7,307 - 7,307

203,607 - 203,607

1,081,861 - 1,081,861

51,321 23,305 74,626

126,513 285,726 412,239

177,834$ 309,031$ 486,865$

2016

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASTATEMENTS OF FUNCTIONAL EXPENSESYears Ended June 30, 2017 and 2016

Program Administrative Fundraising Total

Grants 111,632$ -$ -$ 111,632$ Salaries 879,343 163,559 - 1,042,902 Payroll taxes 77,920 362 - 78,282 Professional fees 963,033 47,661 7,314 1,018,008 Occupancy 57,225 10,768 - 67,993 Office expense 76,195 6,146 5,007 87,348 Travel 38,563 2,592 631 41,786 Insurance 1,987 13,216 104 15,307 Facility fees 82,474 - 792 83,266 Meeting expenses 31,169 1,176 7,246 39,591 Education and training 11,446 2,852 - 14,298 Miscellaneous 47,110 6,735 6,022 59,867

2,378,097$ 255,067$ 27,116$ 2,660,280$

2017


Program Administrative Fundraising Total

60,763$ -$ -$ 60,763$ 348,768 119,674 - 468,442

27,059 4,672 - 31,731 287,414 32,943 300 320,657

34,771 12,907 - 47,678 47,971 4,418 1,224 53,613 14,418 1,119 - 15,537

1,062 9,213 - 10,275 19,506 100 3,795 23,401 11,119 559 1,933 13,611

7,772 215 42 8,029 17,631 10,480 13 28,124

878,254$ 196,300$ 7,307$ 1,081,861$

2016

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASTATEMENTS OF CASH FLOWSYears Ended June 30, 2017 and 2016

2017 2016

CASH FLOWS FROM OPERATING ACTIVITIESChange in net assets 474,429$ 74,626$

Adjustment to reconcile change in net assets tonet cash provided by operating activities:(Increase) decrease in:

Promise to give (120,935) - Accounts receivable (99,255) 30,420 Loans receivable (34,447) - Prepaid expenses (39,860) (10,824)

Increase (decrease) in:Accounts payable (6,844) 16,904

NET CASH PROVIDED BYOPERATING ACTIVITIES 173,088 111,126

NET INCREASE IN CASH AND CASH EQUIVALENTS 173,088 111,126

CASH AND CASH EQUIVALENTSAT BEGINNING OF YEAR 313,892 202,766

CASH AND CASH EQUIVALENTS AT END OF YEAR 486,980$ 313,892$


TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONA NOTES TO THE FINANCIAL STATEMENTS June 30, 2017 and 2016

NOTE 1 NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities Technical Assistance Partnership of Arizona (TAPAZ) was organized in 2000 as Atwood Health Foundation to promote health care, health education, healthy communities, health research and volunteerism in the State of Arizona. Grants are made to help organizations strengthen their capacity to improve the health of underserved populations and communities. TAPAZ also provides fiscal sponsorship for groups whose work furthers its mission in the community. TAPAZ’s programs are funded by contributions, grants and contracts. In February 2011, TAPAZ formally changed its name from Atwood Health Foundation to Technical Assistance Partnership of Arizona to more fully reflect the organization’s purpose. TAPAZ has entered into sponsorship agreements with incorporated Arizona nonprofit organizations as well as unincorporated associations. The sponsored projects work in areas such as providing support for Armed Services Veterans and their families, providing employment opportunities for youth aging out of the foster care system, developing community gardens and teaching workforce development, outreach efforts to provide AHCCCS coverage, expanding the Maricopa County food system, empowering young women with leadership & life skills, teaching life skills in schools, creating access to healthy foods in south Phoenix, and addressing statewide American Indian behavioral health issues. TAPAZ has determined that support of these projects furthers TAPAZ’s tax exempt purpose. Each sponsored project has a project director that is charged with managing the affairs of the project. Sponsorship agreements with each sponsored project stipulate that TAPAZ will act as the fiscal sponsor by receiving assets and incurring liabilities identified for the project and using them to pursue the objectives of the project. Per the agreement, TAPAZ will monitor the project activities to ensure they further TAPAZ’s charitable mission. TAPAZ will do this by taking responsibility for all community programs associated with these projects and by processing all accounting transactions relating to these projects. TAPAZ has variance power to disburse funds so as to accomplish the purposes of the projects as nearly as possible within TAPAZ’s sole judgment, subject to any donor-imposed restrictions and pursuant to approved budgets of the projects. The agreements further stipulate the sponsored projects have been delegated management of the project activities under the direction of the Board of Trustees of TAPAZ. Basis of Presentation The financial statements of TAPAZ have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables and other liabilities. TAPAZ reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets.

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NOTE 1 NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash and Cash Equivalents For purposes of the statement of cash flows, TAPAZ considers all highly liquid debt instruments purchased with an initial maturity of three months or less at date of acquisition to be cash and cash equivalents. Promises to Give Unconditional promises to give are recognized as revenues in the period the promise is received and as assets, decreases of liabilities or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met. In circumstances where it is aware of a specific amount where there may be an inability to meet the financial obligation, TAPAZ records a specific reserve to reduce the amounts recorded to what it believes will be collected. Promises are charged off against the allowance when they are deemed to be uncollectible. Promises to give at June 30, 2017 and 2016 are considered to be fully collectible by management and, accordingly, an allowance for doubtful accounts is not deemed necessary. Accounts Receivable Accounts receivable includes program service fees for sponsored projects as well as amounts receivable under cost reimbursement arrangements, and are carried at the outstanding balances less an allowance for doubtful accounts, if applicable. TAPAZ evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where it is aware of a specific amount where there may be an inability to meet the financial obligation, it records a specific reserve to reduce the amounts recorded to what it believes will be collected. Accounts are charged off against the allowance when they are deemed to be uncollectible. Accounts are past due when not paid within 30 days of invoicing. Accounts receivable as of June 30, 2017 and 2016 are considered by management to be fully collectible and, accordingly, an allowance for doubtful accounts has not been recorded. Contributions 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, including support restricted to be used for the fiscal sponsorship projects, is reported as an increase in temporarily or permanently restricted net assets 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 restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

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Contributions (Continued) Contributions of donated non-monetary assets (in-kind donations) are recorded at their fair values in the period received. Contributions of donated services are recorded at fair value if they create or enhance non-financial assets or require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donated services. The activities of TAPAZ are managed by employees of Vitalyst Health Foundation (“Vitalyst”) and take place in shared facilities with Vitalyst. Donated services from employees of Vitalyst received by TAPAZ are recognized as revenue and expense at the amount of the employee cost recognized by Vitalyst. Revenue Recognition Program revenue is recognized on a cost reimbursement basis when the related costs are incurred. Grant Expense Contributions to health care related organizations (grants) are distributed to support various public health initiatives in accordance with the mission of TAPAZ. All obligated grant distributions are expensed for financial statement purposes when approved by the Board of Trustees. Occasionally, a particular grant may be approved for distribution over a period of up to several years. Consequently, grants expense for a particular period may not reflect the actual amount distributed during the period. Functional Expenses Expenses are charged to programs and supporting services on the basis of the nature of the expense. Administrative expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of TAPAZ. Income Taxes TAPAZ qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (IRC) and, accordingly, there is no provision for income taxes. In addition, TAPAZ qualifies for the charitable contribution deduction under Section 170 of the IRC and has been classified as an organization that is not a private foundation under Section 509(a)(2).

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Income Taxes (Continued) TAPAZ recognizes uncertain tax positions in the financial statements when it is more-likely-than-not the positions will not be sustained upon examination by the tax authorities. At June 30, 2017 and 2016, TAPAZ had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. TAPAZ recognizes interest and penalties associated with income taxes in operating expenses. During the years ended June 30, 2017 and 2016, TAPAZ did not have any income tax related interest and penalty expense. Use of 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from these estimates. Date of Management’s Review In preparing these financial statements, TAPAZ has evaluated events and transactions for potential recognition or disclosure through September 19, 2017, the date the financial statements were available to be issued. NOTE 2 CONCENTRATIONS OF CREDIT RISK Financial instruments that subject TAPAZ to potential concentrations of credit risk consist of cash, accounts receivable, and promises to give. TAPAZ maintains its cash in bank accounts, which at times, may exceed federally insured limits. TAPAZ has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash balances. As of June 30, 2017 and 2016 accounts receivable include amounts due from three and five funding sources, respectively, which represent 88% and 77%, respectively, of the total accounts receivable balance. As of June 30, 2017 the promises to give balance includes amounts from two organizations. As of June 30, 2016 the promises to give balance includes amounts from one organization. Concentration of credit risk with respect to these receivables is limited due to TAPAZ’s relationship and history with these organizations.

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NOTE 3 RELATED PARTY TRANSACTIONS Included in promises to give at June 30, 2017 and 2016 is $15,000 and $37,775, respectively, due from Vitalyst, a supporting organization with common management and board members. NOTE 4 TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets consist of the following purpose restricted amounts for sponsored projects at June 30:

2017 2016Temporarily restricted net assets

Purpose restricted: For use by a specific sponsored project 269,997$ 217,073$

Unchained - Girls shelter - 79 Isaac Amaya Foundation – Scholarships - 10,000 Co-Hoots – Co-working space and capacity building for nonprofit organizations in Phoenix 187 4,387 Mindfulness First – Education 1,082 19,108 Tigermountain Foundation – People’s Garden in South Phoenix 20,000 20,000 Cultivating South Phoenix (CUSP) – Community farm in South Phoenix 3,512 38,384 Isaac School District – Technology services 4,650 - Maricopa County Food Systems Coalition – Community Food Assessment in Maricopa County 143,078 - AZ Coalition for Military Families – Veteran outreach 20,703 - Trinity Opportunity Alliance – Fund development strategy and program to link employers with youth aging out of the foster care system 285,811 -

749,020$ 309,031$

11


NOTE 5 IN-KIND DONATIONS TAPAZ benefited from donated services from Vitalyst valued at $76,865 and $67,114 during the years ended June 30, 2017 and 2016, respectively. These amounts have been reported as both contribution revenue and administrative expenses on the accompanying statements of activities and statements of functional expenses, and were used for overall management and general activities. NOTE 6 CONCENTRATIONS For the year ended June 30, 2017, approximately 44% of total revenue is made up of amounts from one donor and one program contract. For the year ended June 30, 2016, approximately 10% of total revenue is made up of amounts from one program contract. NOTE 7 SCHEDULE OF NET ASSETS SUPPLEMENTARY INFORMATION During the years ended June 30, 2017 and 2016, transactions were conducted between two sponsored projects. TigerMountain Foundation received revenue from Cultivate South Phoenix (“CUSP”) in relation to the implementation of a community garden. Interrelated accounts receivable and accounts payable of $3,574 and $5,805 at June 30, 2017 and 2016, respectively, have been eliminated in the statement of financial position. Interrelated revenues and expenses of $21,522 and $39,579 for the years ended June 30, 2017 and 2016, respectively, have been eliminated in the statement of activities. These revenues and expenses are included in the attached supplementary schedule of net assets information.

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONA

SUPPLEMENTARY INFORMATION

Year Ended June 30, 2017

TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASCHEDULE OF NET ASSETS INFORMATION

Balance Program Investment Sponsorship June 30, 2016 Contributions Revenue Income Fees

Unrestricted net assets: TAP-AZ General Funds 168,153$ 126,867$ -$ 31$ 194,531$ Ask Me Why I Hurt Fund 9,681 - - - - Sponsored Projects:

Arizona Organizing Project - - - - (1,120) Women's Health Coalition - - 115,689 - (8,620) Unchained - - 20 - (16) FIGG - - - - - Isac Amaya Foundation - - - - - Americorps - - - - - Men of Valor - - 5,233 - (475) Facts of Life - - 278,284 - (19,480) Co-Hoots - - - - - Mindfulness First - - - - (1,440) AZ Nonprofit Academy - - 10,202 - (752) Tigermountain Foundation - - 105,348 - (15,127) Three Precious Miracles - - 2,030 - (732) AZ Cancer Survivors Circle of Strength - - 6,889 - (1,664) AZ Carcinoid & Neuroendocrine Fdn - - - - (252) Cultivating South Phoenix - - 29,641 - (2,713) Phoenix Youth Circus Arts - - 22,830 - (3,519) Not Hungry Tonight - - - - (568) MAB TATTS - - - - - Women's Health Innovations of Arizona - - - - (17) Diana Gregory Outreach Services - - - - - Resilient Me - - - - (3,647) AZ Partnership for Health Communities - - 27,988 - (3,198) Statewide AZ Am. Indian Behavioral Health Forum - - 4,545 - (318) Isaac School District - - - - (4,219) A 2nd Act - - 5,471 - (1,509) Maricopa County Food Systems Coalition - - 3,561 - (1,241) AZ Coalition for Military Families - - 1,125,323 - (89,857) Trinity Opportunity Alliance - - - - (22,391) Eagle Pathway - - - - (112) Faye Evans Learning Center - - - - (2) Clown Town Healing Fest - - 7,067 - (5,148) Hushabye Nursery - - - - (170) Az Perinatal Education - - 1,505 - (699) Tribu - - - - (368) One Shared Root - - 19 - (482) iComply - - 2,060 - (1,212) Immersive Teaching STEAM Academy - - - - (1,169) Cesura - - - - (52) Achieving My Purpose - - 1,000 - (1,780)

DACA - - - - (462) HEAL - - - - -

177,834 126,867 1,754,705 31 -

For the Year Ended June 30, 2017

14

Other Direct Indirect BalanceGrants Expenses Expenses Releases June 30, 2017

(88,500)$ (90,599)$ (103,890)$ -$ 206,593$ (4,000) - - - 5,681

- (6,675) - 7,795 - - (156,848) (963) 50,742 - - (500) (12) 508 - - (980) - 980 - - (10,000) - 10,000 -

(2,605) - - 2,605 - - (5,125) (84) 451 - - (255,710) (3,094) - -

(360) (4,200) - 4,560 - - (37,135) (12) 38,587 - - (2,972) (7,572) 1,094 - (50) (247,688) (8,858) 166,375 - - (6,663) (8,017) 13,382 -

(500) (7,183) (3,195) 5,653 - - (1,975) (743) 2,970 - - (59,423) (24) 32,519 - - (22,408) (1,498) 4,595 - - (3,449) (11) 4,028 - - (947) - 947 -

(892) (250) (9) 1,168 - - - (45) 45 - - (54,518) (1,989) 60,154 - - (40,187) (1,073) 16,470 - - (11,484) - 7,257 - - (69,873) - 74,092 -

(14,725) (6,901) (2,151) 19,815 - - (10,212) (114) 8,006 - - (1,110,421) (3,105) 78,060 - - (61,290) (563) 84,244 - - (1,257) (870) 2,239 - - - (1) 3 - - (48,828) (13,474) 60,383 - - - (17) 187 - - (209) (333) (264) - - (4,800) - 5,168 - - (5,128) (518) 6,109 - - (4,435) (3,810) 7,397 - - (9,578) - 10,747 - - - (12) 64 - - (14,420) (2,320) 17,520 - - (6,000) - 6,462 - - - - - -

(111,632) (2,380,271) (168,377) 813,117 212,274

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASCHEDULE OF NET ASSETS INFORMATION (Continued)

Balance Program Investment Sponsorship June 30, 2016 Contributions Revenue Income Fees

Temporarily restricted net assets - program unrestricted:Sponsored Projects:

Arizona Organizing Project 4,931 16,000 - - - Women's Health Coalition 39,322 27,868 - - - AzCAH - - - - - Unchained 261 220 - - - CCYoga 317 - - - - FIGG 1,317 - - - - Mesa Urban Garden 107 - - - - Isac Amaya Foundation 330 1,850 - - - Americorps 2,605 - - - - Establishing Roots 61 - - - - LGBT Coalition 1,427 - - - - Men of Valor (318) 1,584 - - - Facts of Life 1 - - - - Co-Hoots 360 - - - - Mindfulness First 211 20 - - - AZ Nonprofit Academy 779 534 - - - Tigermountain Foundation 30,594 89,047 - - - Three Precious Miracles 6,888 8,517 - - - AZ Cancer Survivors Circle of Strength 10,116 17,773 - - - AZ Carcinoid & Neuroendocrine Fdn 1,867 3,614 - - - AZ Stroke Collaborative 1,568 - - - - Cultivating South Phoenix 19,050 650 - - - Phoenix Youth Circus Arts 917 5,011 - - - Not Hungry Tonight 4,586 8,116 - - - MAB TATTS 947 - - - - Women's Health Innovations of Arizona 918 250 - - - Diana Gregory Outreach Services - - - - - Resilient Me 15,884 52,249 - - - AZ Partnership for Health Communities 2,767 17,745 - - - Statewide AZ Am. Indian Behavioral Health Forum 8,698 - - - - Isaac School District 10,995 55,275 - - - A 2nd Act 3,986 15,829 - - - Maricopa County Food Systems Coalition - 6,724 - - - AZ Coalition for Military Families 43,875 198,238 - - - Trinity Opportunity Alliance - 600 - - - Eagle Pathway 1,706 1,602 - - - Faye Evans Learning Center - 25 - - - Clown Town Healing Fest - 78,399 - - - Hushabye Nursery - 2,449 - - - Az Perinatal Education - 8,508 - - - Tribu - 5,251 - - - One Shared Root - 6,948 - - - iComply - 15,250 - - - Immersive Teaching STEAM Academy - 16,700 - - - Cesura - 750 - - - Achieving My Purpose - 26,146 - - - DACA - 6,600 - - - HEAL - 5 - - -

Temporarily restricted net assets - program restricted: Sponsored Projects: -

Unchained 79 - - - - Isac Amaya Foundation 10,000 - - - - Co-Hoots 4,387 - - - - Mindfulness First 19,108 20,559 - - - Tigermountain Foundation 20,000 - - - - Cultivating South Phoenix 38,384 - - - - Isaac School District - 5,000 - - - Maricopa County Food Systems Coalition - 151,200 - - - AZ Coalition for Military Families - 10,000 - - - Trinity Opportunity Alliance - 370,000 - - -

309,031 1,253,106 - - -

486,865$ 1,379,973$ 1,754,705$ 31$ -$

For the Year Ended June 30, 2017

16

Other Direct Indirect BalanceGrants Expenses Expenses Releases June 30, 2017

- - - (7,795) 13,136 - - - (50,742) 16,448 - - - - - - - - (429) 52 - - - - 317 - - - (980) 337 - - - - 107 - - - - 2,180 - - - (2,605) - - - - - 61 - - - - 1,427 - - - (451) 815 - - - (1) - - - - (360) - - - - (2) 229 - - - (1,094) 219 - - - (166,375) (46,734) - - - (13,381) 2,024 - - - (5,653) 22,236 - - - (2,970) 2,511 - - - - 1,568 - - - 2,353 22,053 - - - (4,595) 1,333 - - - (4,028) 8,674 - - - (947) - - - - (1,168) - - - - (45) (45) - - - (60,154) 7,979 - - - (16,470) 4,042 - - - (7,257) 1,441 - - - (73,742) (7,472) - - - (19,815) - - - - 116 6,840 - - - (88,763) 153,350 - - - (55) 545 - - - (2,239) 1,069 - - - (3) 22 - - - (60,383) 18,016 - - - (187) 2,262 - - - 264 8,772 - - - (5,168) 83 - - - (6,109) 839 - - - (7,397) 7,853 - - - (10,747) 5,953 - - - (64) 686 - - - (17,521) 8,625 - - - (6,460) 140 - - - (1) 4

- - - (79) - - - - (10,000) - - - - (4,200) 187 - - - (38,585) 1,082 - - - - 20,000 - - - (34,872) 3,512 - - - (350) 4,650 - - - (8,122) 143,078 - - - 10,703 20,703 - - - (84,189) 285,811

- - - (813,117) 749,020

(111,632)$ (2,380,271)$ (168,377)$ -$ 961,294$

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONA

UNIFORM GUIDANCE SUPPLEMENTARY REPORTS

Year Ended June 30, 2017

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON

AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Trustees Technical Assistance Partnership of Arizona Phoenix, Arizona

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Technical Assistance Partnership of Arizona (a nonprofit organization), which comprise the statement of financial position as of June 30, 2017, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated September 19, 2017.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Technical Assistance Partnership of Arizona’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Technical Assistance Partnership of Arizona’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during out audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.


Compliance and Other Matters As part of obtaining reasonable assurance about whether Technical Assistance Partnership of Arizona’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the organization’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

To the Board of Trustees Technical Assistance Partnership of Arizona Phoenix, Arizona

Report on Compliance for Each Major Federal Program

We have audited Technical Assistance Partnership of Arizona’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Technical Assistance Partnership of Arizona’s major federal programs for the year ended June 30, 2017. Technical Assistance Partnership of Arizona’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditors’ Responsibility

Our responsibility is to express an opinion on compliance for each of Technical Assistance Partnership of Arizona’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Technical Assistance Partnership of Arizona’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Technical Assistance Partnership of Arizona’s compliance.


Opinion on Each Major Federal Program In our opinion, Technical Assistance Partnership of Arizona complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. Report on Internal Control over Compliance Management of Technical Assistance Partnership of Arizona is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Technical Assistance Partnership of Arizona’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Technical Assistance Partnership of Arizona’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.


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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONASCHEDULE OF EXPENDITURES OF FEDERAL AWARDSYear Ended June 30, 2017

Federal CFDA

Number Grantor'sNumber

FederalExpenditures

U.S. Department of LaborPass-through programs from:The Governor's Office of Youth, Faith and Family

Employment Service/Wagner-Peyser Funded Activities 17.207ISA-WP-GR-060116-01 285,093$ *

Arizona Department of Veterans' Services

Employment Service/Wagner-Peyser Funded Activities 17.207ISA-WP-GR-030116-01 648,218 *

Total U.S. Department of Labor 933,311

U.S. Department of Health and Human ServicesPass-through programs from:The Governor's Office of Youth, Faith and Family

Substance Abuse and Mental Health Services - Projects of

Regional and National Significance 93.243ISA-PFS-GR-17-

093016-01 102,655

Alliance for Community Health CentersCooperative Agreement to Support Navigators in

Federally-facilitated and State Partnership Marketplaces 93.332SNAVCA15024

2-02-00 81,251

Total U.S. Department of Health and Human Services 183,906

U.S. Department of AgricultureDirect Programs:

Local Food Promotion Program 10.172 15LFPPAZ0055 29,641

Pass-through programs from:Arizona Community Action Association

State Administrative Matching Grants for the Supplemental Nutrition Assistance Program 10.561 None 34,417

Total U.S. Department of Agriculture 64,058

TOTAL EXPENDITURES OF FEDERAL AWARDS 1,181,275$

* Denotes major program

Federal Grantor / Pass-Through Grantor / Program


TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS June 30, 2017 NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of TAPAZ under programs of the federal government for the year ended June 30, 2017. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule of Expenditures of Federal Awards presents only a portion of the operations of TAPAZ it is not intended to and does not present the financial position, changes in net position, or cash flows of TAPAZ. NOTE 2 CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS The program titles and CFDA numbers were obtained from the Catalog of Federal Domestic Assistance. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

B) TAPAZ has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2017 SECTION I – SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting:

Material weakness(es) identified? __ _ yes X no Significant deficiency(ies) identified that are not

considered to be a material weakness(es)? ____ yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs:

Material weakness(es) identified? ____ yes X no Significant deficiency(ies) identified that are

not considered to be a material weakness(es)? yes X none reported Type of auditors’ report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance? yes X no Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 17.207 Employment Service/Wagner-Peyser Funded Activities

Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? yes X no

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TECHNICAL ASSISTANCE PARTNERSHIP OF ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2017 SECTION II – FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS None Noted SECTION III – FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS None Noted

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