UNITED WAY OF NORTHWEST ARKANSAS, INC. June 30, Financial Statements And Supplementary Information. With. Independent Auditor s Report

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1 Financial Statements And Supplementary Information With Independent Auditor s Report

2 Table of Contents Page Financial Statements Independent Auditor s Report Statement of Financial Position... 3 Statement of Activities and Changes in Net Assets... 4 Statement of Functional Expenses... 5 Statement of Cash Flows... 6 Notes to Financial Statements Supplementary Information Independent Auditor s Report on Supplementary Information Schedule of Grants, Allocations, Designations and Distributions

3 Independent Auditor s Report Board of Directors United Way of Northwest Arkansas, Inc. Lowell, Arkansas We have audited the accompanying financial statements of the United Way of Northwest Arkansas, Inc., which comprise the statement of financial position as of, and the related statements of activities and changes in net assets, functional expenses, and cash flows for the year 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. 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 the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Little Rock, Arkansas Fayetteville, Arkansas Raleigh, North Carolina Phoenix, Arizona Naples, Florida Yuma, Arizona An Independent Member of the BDO Alliance USA

4 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the United Way of Northwest Arkansas, Inc. as of, 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. Emphasis of Matter As discussed in Note 10 to the financial statements, beginning net assets have been restated to correct certain misstatements. Our opinion is not modified with respect to this matter. Certified Public Accountants Little Rock, Arkansas November 27, 2017

5 3 Statement of Financial Position Assets Current assets Cash and cash equivalents $ 1,209,693 Certificates of deposit 223,846 Promises to give, net 1,060,238 Other receivables 78,575 Total current assets 2,572,352 Property and equipment Buildings and improvements 627,138 Furniture and fixtures 79, ,885 Accumulated depreciation 216,323 Net property and equipment 490,562 Other assets Investments 1,273,094 Total assets $ 4,336,008 Liabilities and Net Assets Current liabilities Grants, allocations and distributions payable $ 1,448,161 Designations payable 157,038 Accrued expenses 52,153 Deferred revenue 5,000 Current portion of capital lease payable 1,219 Total current liabilities 1,663,571 Long-term liabilities Capital lease payable, less current portion 5,800 Total liabilities 1,669,371 Net assets Unrestricted 2,557,694 Temporarily restricted 108,943 Total net assets 2,666,637 Total liabilities and net assets $ 4,336,008 The accompanying notes are an integral part of these financial statements.

6 4 Statement of Activities and Changes in Net Assets For the Year Ended Revenues and other support Contributions Workplace annual campaign 2,399,529 Temporarily Unrestricted Restricted Total $ $ - $ 2,399,529 Discount (260,174) - (260,174) Designated contributions (206,102) - (206,102) Additional contributions 379, ,909 Contributions, net 2,313,162-2,313,162 In-kind donations 4,264,058-4,264,058 Grant income 160, , ,500 Special events 42,752-42,752 Warehouse membership fees 102, ,725 Investment income, net 87,801-87,801 Loss on sale of land (32,693) - (32,693) Other income 93,904-93,904 Released from restrictions 87,557 (87,557) - Total revenues and other support 7,119, ,943 7,228,209 Expenses Program services Children Living in Poverty 1,449,649-1,449,649 Gift-in-Kind Warehouse 4,512,450-4,512,450 Community Impact 269, , , ,539 Volunteer Income Tax Assistance 85,613-85,613 Other programs 151, ,346 Management and general 202, ,628 Fund-raising 376, ,859 Total expenses 7,154,090-7,154,090 Changes in net assets (34,824) 108,943 74,119 Net assets - beginning of year, as restated (Note 10) 2,592,518-2,592,518 Net assets - end of year $ 2,557,694 $ 108,943 $ 2,666,637 The accompanying notes are an integral part of these financial statements.

7 Statement of Functional Expenses For the Year Ended Program Services Children Living in Gift-in-Kind Community Poverty Warehouse Impact 211 In-kind $ - $ 4,241,415 $ - $ - Grants, allocations and distributions 1,443, Salaries, benefits and payroll taxes - 180, ,356 23,293 Program and marketing 3,493 4,021 14,171 79,279 Occupancy - 49,255 11,549 - Office administration 2,207 8,500 16,776 3,967 Depreciation - 20,256 4,750 - United Way Worldwide dues - 7,951 7,951 - Special events Professional fees Miscellaneous Insurance Total functional expenses $ 1,449,649 $ 4,512,450 $ 269,006 $ 106,539

8 5 Volunteer Income Tax Other Management Assistance Programs Total and General Fund-raising Total $ - $ - $ 4,241,415 $ - $ 9,643 $ 4,251, ,443, ,443,709 15,570 80, , , , ,614 68,147 56, ,382 10,581 63, , ,804 16,121 15,399 92,324 1,896 2,642 35,988 16,414 29,396 81, ,006 6,630 6,333 37, ,902 7,951 10,717 34,570-11,510 11, , ,070-13, ,302 9, , ,585-2,585 $ 85,613 $ 151,346 $ 6,574,603 $ 202,628 $ 376,859 $ 7,154,090 The accompanying notes are an integral part of these financial statements.

9 6 Statement of Cash Flows For the Year Ended Cash flows from operating activities Changes in net assets $ 74,119 Adjustment to reconcile changes in net assets to net cash provided by operating activities Depreciation 37,969 Changes in unrealized gain on investments (58,898) Realized gain on sale of investments (7,058) Loss on sale of land 32,693 Changes in operating assets and liabilities Promises to give 257,086 Prepaid expenses 4,523 Other receivable (78,575) Grants, allocations and distributions payable (193,109) Accrued expenses 12,132 Deferred revenue 5,000 Designations payable 41,453 Net cash provided by operating activities 127,335 Cash flows from investing activities Proceeds from sale of property and equipment 86,522 Purchase of property and equipment (24,176) Redemption of certificates of deposits 265,572 Proceeds from sale of investments 169,240 Purchase of investments (187,523) Net cash provided by investing activities 309,635 Cash flows from financing activities Payments on capital lease (1,092) Net cash used by financing activities (1,092) Net increase in cash and cash equivalents 435,878 Cash and cash equivalents - beginning of year 773,815 Cash and cash equivalents - end of year $ 1,209,693 Supplementary disclosure of cash flow information Cash paid during the year for interest $ 2,116 Supplementary disclosure of noncash transaction Acquisition of equipment through capital lease $ 8,111 The accompanying notes are an integral part of these financial statements.

10 7 Notes to Financial Statements 1. Nature of Operations and Summary of Significant Accounting Policies a. Nature of operations United Way of Northwest Arkansas, Inc. (the Organization ) is a nonprofit corporation. The Organization s mission is to unite the community to empower people and improve lives in the Benton, Madison and Washington counties in Arkansas, McDonald County in Missouri and Delaware County in Oklahoma. The United Way accomplishes its mission by conducting annual fund-raising campaigns, then allocating the resulting funds to organizations serving Children Living in Poverty, direct services, such as the Gift-in-Kind Warehouse, 211, Volunteer Income Tax Assistance and the Dolly Parton Imagination Library, and other community initiatives. b. Basis of presentation The Organization is required to report 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. Permanently restricted net assets represent net assets resulting from contributions where use is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the Organization. Temporarily restricted net assets represent net assets that are for the support of specific operating activities or are resulting from contributions whose use is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the Organization. All other net assets are considered to be unrestricted. The Organization had no permanently restricted net assets as of. c. 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 statement of financial position and the reported amounts of revenues and expenses in the statement of activities and changes in net assets. Actual results could differ from those estimates. d. Cash and cash equivalents For the purposes of the statement of cash flows, the Organization considers cash and cash equivalents and highly liquid cash investments with an original maturity of three months or less to be cash equivalents. e. Promises to give, net Contributions are recognized when the donor makes an unconditional promise to give monies or other noncash items to the Organization. Conditional promises to give are not included as support until the conditions are substantially met. The unconditional promises to give are expected to be collected within one year and are stated at their net realizable value. f. Other receivables Other receivables consist of fees, sponsorships and grants refunded, and are considered fully collectible by management. Therefore, no allowance for bad debts has been recognized. g. Investments and investment income Investments in marketable securities with readily determinable fair values and all investments in debt securities are reported at their fair values in the accompanying statement of financial position. Unrealized gains or losses are included in changes in net assets in the accompanying statement of activities and changes in net assets. Investment income includes dividend, interest and other investment income; realized and unrealized gains and losses on investments carried at fair value; and realized gains and losses on other investments and are reported net of investment management fees.

11 8 Notes to Financial Statements 1. Nature of Operations and Summary of Significant Accounting Policies (cont.) h. Property and equipment Property and equipment are stated at cost or fair market value of donated assets. Depreciation of property and equipment is computed on the straight-line method over the estimated useful lives of the related assets, which range from 3 to 40 years. Acquisition of property and equipment in excess of $500 and a useful life over one year are capitalized. i. Designations payable Accounting standards address transactions for which the Organization accepts a contribution from a donor and agrees to transfer those assets to an organization that is specified by the donor. These funds are referred to as designations payable and are reported as a separate line item in the accompanying statement of financial position. Contributions related to these funds are excluded from the Organization s statement of activities and changes in net assets. j. Revenue recognition The Organization recognizes special event, investment income and other revenue when earned, based on when the service is provided or the event occurs. k. Contributions Contributions, including unconditional promises to give, are recognized in the period the commitment is made. Conditional promises to give are not recognized until the conditions on which they depend are substantially met. Contributions of assets other than cash are recorded at estimated fair value at the date of gift. Gifts of cash and other assets received without donor stipulations are reported as unrestricted revenue and net assets. Gifts received with a donor stipulation that limits their use are reported as temporarily or permanently restricted revenue and net assets. When a donor 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. Gifts having donor stipulations which are satisfied in the period the gift is received are reported as unrestricted revenue and net assets. Gifts of land, buildings, equipment and other long-lived assets are reported as unrestricted revenue and net assets unless explicit donor stipulations specify how such assets must be used, in which case the gifts are reported as temporarily or permanently restricted revenue and net assets. Absent explicit donor stipulations for the time long-lived assets must be held, expirations of restrictions resulting in reclassification of temporarily restricted net assets as unrestricted net assets are reported when the long-lived assets are placed in service. Contributed services which increase nonfinancial assets such as property, as well as services contributed by individuals with specialized skills which would have otherwise been purchased, are reported as unrestricted supported. Other contributed services that enhance the Organization s programs, but are not so essential that they would otherwise be purchased are not recorded as support. Contributed services by individuals with specialized skills were $13,000 for the year ended.

12 9 Notes to Financial Statements 1. Nature of Operations and Summary of Significant Accounting Policies (cont.) l. Functional expenses Expenses are charged to programs based on direct expenditures incurred. Any expenditure not directly chargeable is allocated to programs based management s best estimate. m. Advertising The Organization follows the policy of charging the cost of advertising to expense as incurred. Advertising costs were $28,822 for the year ended. n. Income taxes The Organization has been recognized as tax-exempt pursuant to Section 501(c)(3) of the Internal Revenue Code and a similar code section under Arkansas state statutes. Accordingly, no provision for federal or state income taxes has been made. The Organization s policy with respect to evaluating uncertain tax positions is based upon whether management believes it is more likely than not the uncertain tax positions will be sustained upon review by the taxing authorities, then the Organization shall initially and subsequently measure the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The tax positions must meet the more-likely-than-not recognition threshold with consideration given to the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information at the reporting date. The Organization will reflect only the portion of the tax benefit that will be sustained upon resolution of the position and applicable interest on the portion of the tax benefit not recognized. Based upon management s assessment, there are no uncertain tax positions expected to have a material impact on the Organization s financial statements. The Organization is no longer subject to U.S. federal and state tax examinations by tax authorities for years before The Organization s federal and state tax returns are not currently under examination. The Organization recognizes interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended, the Organization did not recognize any interest or penalties. The Organization did not have any interest or penalties accrued at. o. Impairment of long-lived assets The Organization reviews the carrying value of long-lived assets for impairment whenever certain triggering events or changes in circumstances indicate that the carrying amounts of any asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the excess of the carrying amount over the fair value of the assets. Based on management s assessment, no impairment losses have been recognized during the year ended.

13 10 Notes to Financial Statements 1. Nature of Operations and Summary of Significant Accounting Policies (cont.) p. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) , Revenue from Contracts with Customers (Topic 606). ASU is the product of a joint project between the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue. ASU amends the Accounting Standards Codification ( ASC ) and creates a new Topic 606, Revenue from Contracts with Customers. This new topic describes a step by step process to achieve the FASB s core principle 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 those goods or services. The new topic also adds improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. ASU , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, issued in August 2015, defers the implementation of ASU for nonpublic entities to annual reporting periods beginning after December 15, Early adoption is permitted for reporting periods beginning after December 15, ASU may be applied either retrospectively or through the use of a modified-retrospective method. The Organization is evaluating the application of ASU and the effect it is expected to have on its financial statements. In February 2016, the FASB issued ASU , Leases (Topic 842). Accounting by lessors is largely unchanged from existing standards. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. The guidance requires all leases to be recorded as assets and liabilities on the financial statements of the lessee. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. Under this standard, leases are considered to either be finance leases or operating leases. This consideration determines the financial statement classification of payments on lease liabilities during the lease term but assets and liabilities are required to be recorded for both. For nonpublic entities, this guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, ASU is to be applied using a modified retrospective approach. The Organization is currently evaluating the impact of ASU on its financial statements. In August 2016, the FASB issued ASU , Not-for-Profit Entities (Topic 958). ASU is a project of the FASB to improve the current net asset classification requirements and information presented in financial statements and notes about a not-for-profit entity s liquidity, financial performance and cash flows. ASU amends ASC Topic 958. The amendments in this update make several improvements to current reporting requirements that address the following: complexities about the use of the currently required three classes of net assets that focus on the absence or presence of donor-imposed restrictions and whether those restrictions are temporary or permanent; deficiencies in the transparency and utility of information useful in assessing an entity s liquidity caused by potential misunderstandings and confusion about the term unrestricted net assets and how restrictions or limits imposed by donors, grantors, laws, contracts, and governing boards affect an entity s liquidity, classes of net assets, and financial performance; inconsistencies in the type of information provided about expenses of the period; and impediment of preparing the indirect method reconciliation if a not-for-profit

14 11 Notes to Financial Statements 1. Nature of Operations and Summary of Significant Accounting Policies (cont.) chooses to use the direct method of presenting operating cash flows. ASU is effective for annual reporting periods beginning after December 15, 2017, and for interim periods within fiscal years beginning after December 15, Application to interim financial statements is permitted but not required in the initial year of application. Early application is permitted. The Organization is evaluating the application of ASU and the effect it will have on its future financial statements. In November 2016, the FASB issued ASU , Statement of Cash Flows (Topic 230). ASU was issued to reduce diversity in practice in the presentation of changes in restricted cash or restricted cash equivalents in the statement of cash flows. ASU requires that restricted cash and restricted cash equivalents be included along with cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. For nonpublic entities this guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Organization early adopted ASU , which did not have a material effect on its statement of cash flows. 2. Investments Investments consist of the following: Cost Market Value Bonds $ 544,752 $ 547,463 Equities 438, ,676 Mutual funds 30,000 41,275 Unit trusts 33,400 45,680 $ 1,047,102 $ 1,273,094 Although investments may be converted to cash as needed, these funds are internally designated to be limited as to their use and, therefore, are carried as long-term investments. Investment income, net, consists of the following: Interest and dividend income $ 31,893 Realized gains 7,059 Unrealized gains 58,898 Investment fees (10,049) $ 87,801

15 12 Notes to Financial Statements 3. Line of Credit The Organization has an unsecured $100,000 line of credit with a local bank, interest at 2.55%, which matures April 16, There was no outstanding balance on the line of credit at June 30, Capital Lease Payable The Organization is obligated for certain equipment under a capital lease obligation that will expire in May The assets under the capital lease are being amortized over the shorter of the useful life of the asset or the lease term which is five years. The amortization related to the capital lease is included in accumulated depreciation in the accompanying statement of financial position and depreciation expense in the accompanying statements of functional expenses and cash flows. The assets under the capital lease are as follows: Equipment $ 8,011 Accumulated amortization 3,109 Net assets under capital lease $ 4,902 The capital lease has interest imputed of 24% and matures in May Future minimum lease payments under the capital lease are as follows: Present Value Interest Total 2018 $ 1,219 $ 1,575 $ 2, ,551 1,244 2, , , , ,562 $ 7,019 $ 3,927 $ 10,946

16 13 Notes to Financial Statements 5. Temporarily Restricted Net Assets Temporarily restricted net assets represent funds that are restricted by the contributor either as to time or specific purposes. The temporarily restricted net assets consist of the following: Capacity building program $ 68,793 Pilot driver education program 20,150 Volunteer income tax assistance 12,000 Book club 8,000 $ 108,943 Net assets released from donor restrictions when the purpose or time restrictions specified by the donors were satisfied as follows: Capacity building program $ 14,707 Pilot driver education program 4,850 Volunteer income tax assistance 68,000 $ 87, Retirement Plan The Organization has a defined contribution retirement plan covering substantially all employees. All employees at least 21 years of age and having completed one year of service are eligible to participate. Employees must have at least two years of service to receive employer matching contributions. The Organization makes up to a 4% matching contribution of eligible employee salary deferrals annually, and may, at its discretion, contribute an additional profit sharing amount. The Organization made contributions of $9,069 for the year ended. 7. Leases The Organization rents a building with an unrelated party under an operating lease that expires in 2019 and a copier that expires in Rent expense was $41,536 for the year ended June 30, Future minimum rental payments to be paid under these leases are as follows: 2018 $ 41, , , ,479 $ 70,837

17 14 Notes to Financial Statements 8. Concentrations of Risk Cash and cash equivalents are maintained with financial institutions, in which deposits are insured by the Federal Deposit Insurance Corporation. Investments, held at a brokerage firm, consist of money market funds, stocks, bonds and mutual funds. Money market balances are insured up to $500,000 by the Securities Investor Protection Corporation At, the Organization had uninsured balances of approximately $481,000. The majority of the Organization s revenue and support is derived from contributions and support from individuals and businesses located in Northwest Arkansas. The Organization is exposed to the risk of fluctuations in the areas in which it operates. The Organization is subject to a concentration of credit risk with respect to its promises to give and other receivables in the amount of $1,138,813 at. The Organization received contributions from two employers that represented approximately 21% and 8%, respectively, of total contributions for the year ended. These contributions include both the individual employee and the employer matching contribution. Promises to give from these two employers were approximately 37% and 15%, respectively, at June 30, The Organization received in-kind contributions from one contributor that represented approximately 91% of the total in-kind contributions for the year ended. 9. Fair Value Measurements Financial assets and liabilities recorded on the statement of financial position are categorized based on the inputs to the valuation techniques as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain corporate debt securities and derivative contracts.

18 15 Notes to Financial Statements 9. Fair Value Measurements (cont.) Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes long-term derivative contracts and real estate. In accordance with FASB ASC 820, Fair Value Measurements and Disclosures, the following are the major categories of assets and liabilities measured at fair value on a recurring basis using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3). Level I Level 2 Level 3 Total Bonds $ - $ 547,463 $ - $ 547,463 Equities 638, ,676 Mutual funds 41, ,275 Unit trusts 45, ,680 $ 725,631 $ 547,463 $ - $ 1,273,094 For investment securities traded in a market that is not active, fair value is determined using unobservable inputs or value drivers and is generally determined using expected cash flows and appropriate risk-adjusted discount rates. Expected cash flows are based primarily on the contractual cash flows of the instrument. The risk-adjusted discount rate is typically the contractual coupon rate of the instrument on the measurement date, adjusted for changes in interest rate spreads of the yields on comparable corporate or municipal bonds and yields on U.S. Treasuries between the date of purchase and the measurement date. 10. Restatement of Beginning Net Assets The Organization s beginning net assets have been restated due to the reporting of inventory that should have been expensed to conform with generally accepted accounting principles ( GAAP ) and for overstatement of designation payables. Correction of these errors resulted in the following changes to beginning net assets. Unrestricted Net assets at July 1, 2016, as previously reported $ 3,045,965 Correct inventory valuation (577,889) Correct beginning balance of designations payable 124,442 Net assets at July 1, 2016, as restated $ 2,592,518

19 16 Notes to Financial Statements 11. Subsequent Events Evaluation Date The Organization evaluated the events and transactions subsequent to its statement of financial position date and determined there were no significant events to report through November 27, 2017, which is the date the Organization issued its financial statements.

20 17 Independent Auditor s Report on Supplementary Information Board of Directors United Way of Northwest Arkansas, Inc. Lowell, Arkansas We have audited the financial statements of the United Way of Northwest Arkansas, Inc. as of and for the year ended, and have issued our report thereon dated November 27, 2017, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The supplementary information is presented for the purposes of additional analysis and is not a required part 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. Certified Public Accountants Little Rock, Arkansas November 27, 2017 Little Rock, Arkansas Fayetteville, Arkansas Raleigh, North Carolina Phoenix, Arizona Naples, Florida Yuma, Arizona An Independent Member of the BDO Alliance USA

21 18 Schedule of Grants, Allocations, Designations and Distributions For the Year Ended 99 Balloons, Inc. $ 172 American Cancer Society of St. Louis 14 American Red Cross, NWA Chapter 3,532 Animal Rescue of New Orleans 14 Apple Seeds, Inc. 25,000 Area Agency on Aging, Inc. 83 Arkansas Crisis Center 105 Arkansas Support Network, Inc. 75 Back2Back Ministries 29 Becky's Kids 15 Bella Vista Courtesy Van, Inc. 131 Benton County 4-H Club Foundation, Inc. 610 Benton County Human Society 24 Bentonville Childcare Enrichment Services 824 Bentonville Public Schools 63,000 Big Brothers Big Sisters of Northwest Arkansas 93,354 Boy Scouts of America - Westark Area Council 3,226 Boys & Girls Club of Benton County 102,790 Boys & Girls Club of Western Benton County 31,905 Brad Cohen Tourette Foundation, Inc. 29 Camp Boggy Creek 34 Capitol Hills Arts Workshop 355 CASA of Northwest Arkansas, Inc. 53,410 Children's Advocacy Center of Benton County, Inc. 35,146 Community Clinic - St. Francis House NWA, Inc. 756 Community Development Corporation of Bentonville/Bella Vista, Inc. - Havenwood 30,541 Compassion Ministries, Ltd. 12,686 Credit Counseling of Arkansas, Inc. 202 CRY America, Inc. 136 Delaware County Historical Society 1,000 Delta Gamma Foundation 136 Diamond Girls Scouts of Arkansas and Texas 30,948 Dogwood Literacy Council of Siloam Springs, Arkansas 234 Donald W. Reynolds Boys & Girls Club 52,649 Economic Opportunity Agency - Children's House 8,376 Economic Opportunity Agency - Head Start 46,177 Epic Compassionaries 467 Fayetteville Senior Activity and Wellness Center 211 Feed My Starving Children 451 Friends of Mobile Animal Shelter 69 Genesis House Incorporated 21,219 See independent auditor s report on supplementary information.

22 19 Schedule of Grants, Allocations, Designations and Distributions (cont.) For the Year Ended Gravette High School $ 100 Greater Twin Cities United Way 336 Hawaii Island United Way, Inc. 18 Helen R. Walton Children's Enrichment Center 134,491 Holston United Methodist Home for Children 69 International Mission Board for the Southern Baptist Convention 48 Jones Elementary (Springdale Schools) 446 Juvenile Diabetes Research Foundation 69 Lafayette House 414 Legal Aid of Arkansas 75,050 Leukemia Society, Gateway Chapter 581 Life Source, International 93 Life Styles, Inc. 7,936 Lincoln Consolidated Schools 60,000 Loaves and Fishes Too 152 Madison County 4-H Foundation 1,099 Magnolia Regional Health Center 69 McDonald County 2,022 McDonald County Bright Futures 220 Metro Women's Center 59 Nebraska Kidney Association 181 Northwest Arkansas Children's Shelter, Inc. 15,337 Northwest Arkansas Food Bank 2,883 Northwest Arkansas Head Start 96 Northwest Arkansas Rape Crisis, Inc. a/k/a Northwest Arkansas Center for Sexual Assault 490 Northwest Arkansas Women's Shelter 24,005 NPR Foundation 136 Office of Human Concern 434 Open Avenues 254 Ozark Guidance Center, Inc. 200 Ozark Literacy Council, Inc. 24,193 Paws and Claws Pet Shelter - Madison County 78 Peace at Home Family Shelter, Inc. 73,329 Potters House 91 Prairie Grove Public Schools 6,000 Prism Education Center 35,000 Razorback Foundation, Inc. 225 Restoration Ministries, Inc. 18,350 Rogers Activity Center 2,757 Samaritan Community Center 25,935 Saving Grace 29 See independent auditor s report on supplementary information.

23 20 Schedule of Grants, Allocations, Designations and Distributions (cont.) For the Year Ended SCI CAN Foundation $ 1,077 Seven Hills Homeless Center, Inc. 1,962 Siloam Springs Adult Development Center, Inc. 168 Siloam Springs Children's Center Foundation 130 Simpson Housing Service 22 Single Parent Scholarship Fund of Benton County, Inc. 1,833 Single Parent Scholarship Fund of Northwest Arkansas, Inc. 6,179 Special Olympics of Michigan, Inc. 29 Springdale Early Childhood Center 909 St. Jude's Hospital 83 Sunshine School & Development Center 83,668 Susan G. Komen Breast Cancer 128 The Church of Christ of Latter-day Saints, Provo, UT 241 The Elizabeth Richardson Center, Inc. 1,370 The Family Network, Inc. 20,000 The Manna Center 1,309 The Salvation Army - Northwest Arkansas Command 670 The Teen Action and Support Center 138,086 The University of Arkansas Foundation, Inc. 904 The Visitation Fund 355 Theatre Squared, Inc. 10,000 Trulaske College of Business 1,210 United Way of Adair County, Missouri 2,340 United Way of Delaware County, Oklahoma 3,517 United Way of Fort Smith, Arkansas 659 United Way of Greater Kansas City 14 United Way of Greater St. Louis 121 United Way of Northeast Arkansas 83 University of Arkansas School of Social Work 125,000 Village House, Inc. 179 Washington Regional Faith in Action 5,085 Washington School for Girls 709 WelcomeHealth 35,167 Youth Bridge, Inc. 35,432 Youth Strategies 300 Total grants, allocations, designations and other distributions 1,612,349 Less donor designations paid (164,649) Less adjustments for recipients who exited program (3,991) Net grants, allocations, designations and other distributions $ 1,443,709 See independent auditor s report on supplementary information.