2017 Fiscal Audit
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Jobs for Arizona Graduates, Inc. Audited Financial Statements Year Ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) Stevenson CPA LLC Stevensoncpallc.com Jobs for Arizona Graduates, Inc. Audited Financial Statements Year Ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) CONTENTS Page Independent Auditors’ Report 1 Financial Statements Statement of Financial Position 2 Statement of Activities 3 Statement of Cash Flows 4 Statement of Functional Expenses 5 Notes to Financial Statements 6 –10 STEVENSON CPA LLC 1613 E MONTEBELLO AVE. PHOENIX, AZ 85016 INDEPENDENT AUDITORS’ REPORT Graciela Candia and the Board of Directors Jobs for Arizona Graduates 3320 W Cheryl Dr., Suite B220 Phoenix, AZ 85015 We have audited the accomPanying financial statements of Jobs for Arizona Graduates (a nonProfit organization), which comprise the statement of financial position as of June 30, 2017 (with comparative totals as of June 30, 2016), and the related statements of activities, cash flows and functional expenses for the year then ended (with comParative totals for June 30, 2016) and the related notes to the financial statements. The financial statements as of and for the year ended June 30, 2016 were audited by us and we expressed an unmodified opinion on them in our report dated March 17, 2017, but we have not performed any auditing procedures on those financial statements since that date. 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. Auditor’s Responsibility Our resPonsibility is to exPress an oPinion on these financial statements based on our audit. 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 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 auditor’s 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. Opinion In our oPinion, the financial statements referred to above present fairly, in all material resPects, the financial position of Jobs for Arizona Graduates as of June 30, 2017, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Phoenix, Arizona December 15, 2017 Jobs for Arizona Graduates, Inc. Statement of Financial Position As of the Year Ended June 30, 2017 (with comparative totals as of June 30, 2016) 2017 2016 ASSETS Current Assets Cash and cash equivalents $ 190,173 $ 150,106 Grants receivable and promises to give 131,564 275,555 Prepaid expenses 5,433 15,782 Total Current Assets 327,170 441,443 Other Assets Noncurrent promises to give 50,000 Deposits 2,577 2,577 Total Other Assets 2,577 52,577 Total Assets $ 329,747 $ 494,020 LIABILITIES AND NET ASSETS Current Liabilities Accounts payable $ 3,739 $ 18,600 Accrued payroll and time off 23,749 37,041 Deferred rent 3,582 2,214 Deferred revenue - 12,464 Total Current Liabilities 31,070 70,319 Total Liabilities 31,070 70,319 Net Assets Unrestricted 187,988 160,655 Temporarily restricted 110,689 263,046 Total Net Assets 298,677 423,701 Total Liabilities and Net Assets $ 329,747 $ 494,020 The accompanying notes are an integral part of these financial statements. 2 Jobs for Arizona Graduates, Inc. Statement of Activities For the Year Ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) 2017 2016 Temporarily Unrestricted Restricted Total Total Support and revenue Individual contributions $ 17,754 $ 1,000 $ 18,754 $ 12,432 Corporate contributions 380,118 - 380,118 202,377 Foundation grants 113,964 - 113,964 431,597 Government contracts 165,000 - 165,000 280,817 Contracts 83,034 - 83,034 580,348 Interest income 1,806 - 1,806 19 Net assets released from restriction 153,357 (153,357) - - Total support and revenue 915,033 (152,357) 762,676 1,507,590 Expenses Program 799,966 - 799,966 1,180,256 Administrative 75,846 - 75,846 64,939 Fundraising 11,888 - 11,888 15,992 Total expenses 887,700 - 887,700 1,261,187 Changes in net assets 27,333 (152,357) (125,024) 246,403 Net assets, beginning of year 160,655 263,046 423,701 177,298 Net assets, end of year $ 187,988 $ 110,689 $ 298,677 $ 423,701 The accompanying notes are an integral part of these financial statements. 3 Jobs for Arizona Graduates, Inc. Statement of Cash Flows For the Year Ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) 2017 2016 Operating activities Net income $ (125,024) $ 246,403 Adjustments to reconcile increase (decrease) in net assets to net cash used by operating activities: Grants receivable and promises to give decrease (increase) 193,991 (239,212) Prepaid expenses (increase) 10,349 (10,544) Deposits (increase) - (187) Accounts payable increase (14,861) 14,698 Accrued payroll and time off increase (13,292) 11,546 Deferred rent increase 1,368 2,214 Deferred revenue (decrease) (12,464) (86,996) Net cash provided by (used for) operating activities 40,067 (62,078) Net increase (decrease) in cash and cash equivalents 40,067 (62,078) Cash and cash equivalents Beginning of year 150,106 212,184 End of year $ 190,173 $ 150,106 The accompanying notes are an integral part of these finanical statements. 4 JOBS FOR ARIZONA GRADUATES, INC. Statement of Functional Expenses For the Year Ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) 2017 2016 Program Administrative Fundraising Cost Cost Cost Total Total Salaries $ 459,348 $ 48,739 $ 9,014 $ 517,101 $ 774,387 Payroll taxes 35,140 3,729 690 39,558 59,241 Employee related 36,519 2,030 464 39,014 18,171 Total payroll and related 531,007 54,498 10,168 595,673 851,799 Accounting fees - 10,706 - 10,706 14,802 Affiliation fees 21,379 - - 21,379 20,361 Distribution to schools 101,000 - - 101,000 85,000 Insurance 9,326 503 162 9,991 11,871 Office expense 17,358 6,296 469 24,123 24,775 Occupancy 25,898 2,506 707 29,111 30,267 Marketing and outreach 2,363 440 134 2,937 4,885 Professional development 6,315 543 55 6,913 13,100 Scholarships 5,500 - - 5,500 5,990 Supplies and services 62,702 - - 62,702 177,223 Travel 17,120 354 193 17,667 21,114 Total expenses $ 799,966 $ 75,846 $ 11,888 $ 887,700 $ 1,261,187 The accompanying notes are an integral part of these financial statements. 5 Jobs for Arizona Graduates, Inc. Notes to Financial Statements For the year ended June 30, 2017 (with comparative totals for the year ended June 30, 2016) NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Activities Jobs for Arizona’s Graduates, Inc. (JAG) is a not-for-profit corporation established in the State of Arizona. Jobs for Arizona Graduate’s mission is to help young people stay in school and to acquire the academic, personal, leadership and vocational skills they will need to be successful upon graduation. JAG’s programs are designed to provide education and training for Arizona high school students at risk of not graduating from high school, or leaving high school without a postsecondary plan. JAG programs are delivered to Arizona youth through four model applications: • College and Career Readiness Programs serving 10th - 12th grade students. JAG programs are delivered as an elective class in partnership with Arizona high schools. • Middle to High School Transition Programs serving 6th- 9thgrade students. JAG programs are delivered as a course section in partnership with Arizona middle and high school students. • JAG Works Program serving youth 16 - 24 years old. JAG Works programs operate in community- based settings, reaching youth who disengaged from high school and need additional support to connect with employment or further education. • JAG College Success program serving JAG students enrolled in postsecondary education at Community College and University partners. Basis of Accounting The accompanying financial statements have been prepared using the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. for non-profit organizations. Revenues are recognized when earned or when an unconditional promise to give is made, and expenses are recognized when incurred. Basis of Presentation JAG reports information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted.