UNITED WAY OF SIOUXLAND, IN CORPORA TED INDEPENDENT AUDITORS' REPORT DECEMBER 31, 2016 AND 2015

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1 INDEPENDENT AUDITORS' REPORT DECEMBER 31, 2016 AND 2015

2 CONTENTS Page Independent Auditors' Report 1-2 Basic Financial Statements: Statements of Financial Position... Statements of Activities... Statements of Functional Expenses... Statements of Cash Flows... Notes to Financial Statements Supplementary Information: Community Funding.... Comparison of Budget to Unrestricted Activity * * * * * * * *

3 HENJES, CONNER & WILLIAMS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 800 FRANCES BUILDING 505 F!Fffl STREET P.O. BOX 1528 SIOUX CITY, IOWA Pf!. (712) (800) FAX (712) INDEPENDENT AUDITORS' REPORT Board of Directors United Way of Siouxland, Incorporated Sioux City, Iowa We have audited the accompanying financial statements of UNITED WAY OF SIOUXLAND, INCORPORATED (a non-profit organization), which comprise the statements of financial position, as of December 31, 2016 and 2015, 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. Auditor's 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. 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. -1-

4 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the United Way of Siouxland, Incorporated as of December 31, 2016 and 2015, 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. Report on Supplementary Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information on pages is presented for 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. ' ~f;( J /J L ~~,re Certified Public Accountants Sioux City, Iowa June 13,

5 STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2016 AND 2015 ASSETS CURRENT ASSETS Cash and Cash Equivalents Certificates of Deposit Pledges Receivable - Note $ 1,631,678 $ 1,609, , ,092 2,553,667 2,409,186 Total Current Assets OTHER ASSETS Beneficial Interest in Community Foundation Fund- Note 3 Property and Equipment - Note 4 Total Other Assets Total Assets $ 4,285,345 $ 4,118,510 $ 760,017 $ 719, , ,598 $ 1,124,715 $ 1,118,312 $ 5,410,060 $ 5,236,822 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Partner Agency Funding Payable Initiative Funding Payable FOCUS Fund Grants Payable Payables to Designated Agencies - Note 8 Other Payables and Accrued Liabilities Total Current Liabilities NET ASSETS Unrestricted - Note 9 Temporarily Restricted - Note 8 Total Net Assets Total Liabilities and Net Assets $ 946,034 $ 960,492 43,067 34,309 50, , ,708 1,369 17,521 $ 1,431,372 $ 1,387,030 $ 1,127,816 $ 1,112,893 2,850,872 2,736,899 $ 3,978,688 $ 3,849,792 $ 5,410,060 $ 5,236,822 See Accompanying Notes to Financial Statements -3-

6 STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER31, 2016 PUBLIC SUPPORT AND REVENUE 2016 Campaign Contributions 2016 Bad Debt Expense 2017 Campaign Contributions Less: Designated Contributions - Note 8 Provision for Uncollectibles Net Assets Released from Restrictions: 2016 Campaign Contributions Less: Designated Contributions Provision for Uncollectibles Total Campaign and Reclassifications Temporarily Unrestricted Restricted Total $ 116,745 (15,083) 3,074,570 (315,062) (127,895) $ 2,733,275 $ 3,203,229 (329,454) (139,368) (3,074,570) 315, ,895 $ 102,794 $ 116,745 (15,083) 3,203,229 (329,454) (139,368) $ 2,836,069 Fundraising Events Revenue Less: Fundraising Events Expense Net Revenue from Fundraising Events $ 160,451 (125,055) $ 35,396 $ - $ 160,451 (125,055) $ 35,396 Special Contributions Interest Income Change in Value of Beneficial Interest in Community Foundation Fund- Note 3 Net Assets Released from Restrictions: Special Contributions $ 114,391 1,219 54, ,244 $ 117,423 (106,244) $ 231,814 1,219 54,815 Total Other Revenue $ 276,669 $ 11,179 $ 287,848 Total Support, Revenue and Reclassifications $ 3,045,340 $ 113,973 $3,159,313 COMMUNITY FUNDING Community Impact Funding: Partner Agency Funding Initiative Funding Le Mars Partner Agency Funding Community Response Funding: FOCUS Fund Grants Small Grants Imagination Library Beyond the Bell Women's Initiatives Scholarships $ 1,665, , ,355 $ 2,005,921 $ 100,000 16,527 24,372 19,276 67,096 24,202 $ - $ 1,665, , ,355 $ 2,005,921 $ 100,000 16,527 24,372 19,276 67,096 24,202 Total Community Funding $ 251,473 $ 2,257,394 $ - $ - $ 251,473 $ 2,257,394 See Accompanying Notes to Financial Statements -4-

7 (Continued) UNITED WAY OF SIOUXLAND, IN CORPORA TED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2016 Unrestricted FUNCTIONAL EXPENSES Finance and Administration $ 97,024 Resource Development 357,593 Communications and Marketing 55,383 United Way Services Community Impact Funding $ 127,879 Information and Referral 88,427 Miscellaneous Services 2,769 Imagination Library 8,522 Temporarily Restricted Total United Way Services $ 227,597 $ - Total Functional Expenses $ 737,597 $ - United Way of America Dues 35,426 Total Community Funding and Expenses $ 3,030,417 $ - Increase in Net Assets $ 14,923 $ 113,973 Net Assets at Beginning of Year 1,112,893 2,736,899 Net Assets at End of Year $ 1,127,816 $ 2,850,872 Total $ 97, ,593 55,383 $ 127,879 88,427 2,769 8,522 $ 227,597 $ 737,597 35,426 $ 3,030,417 $ 128,896 3,849,792 $ 3,978,688 See Accompanying Notes to Financial Statements -5-

8 STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2015 Temporarily Umestricted Restricted PUBLIC SUPPORT AND REVENUE 2015 Campaign Contributions $ 132, Bad Debt Expense (7,030) 2016 Campaign Contributions $ 3,074,570 Less: Designated Contributions - Note 8 (315,062) Provision for Uncollectibles (127,895) Net Assets Released from Restrictions: 2015 Campaign Contributions 3,061,765 (3,061,765) Less: Designated Contributions (322,092) 322,092 Provision for Uncollectibles (125,845) 125,845 Total Campaign and Reclassifications $ 2,739,526 $ 17,785 Fundraising Events Revenue $ 138,583 Less: Fundraising Events Expense (98,571) Net Revenue from Fundraising Events $ 40,012 $ - Special Contributions $ 158,503 $ 114,846 Interest Income 1,383 Change in Value of Beneficial Interest in Community Foundation Fund- Note 3 (21,577) Net Assets Released from Restrictions: Special Contributions 95,549 (95,549) Total Other Revenue $ 233,858 $ 19,297 Total Support, Revenue and Reclassifications $ 3,013,396 $ 37,082 COMMUNITY FUNDING Community Impact Funding: Partner Agency Funding $ 1,693,243 Initiative Funding 106,342 Le Mars Partner Agency Funding 239,633 $ 2,039,218 $ - Community Response Funding: FOCUS Fund Grants $ 7,306 Imagination Library 20,794 Beyond the Bell 18,378 Women's Initiatives 60,377 Scholarships 32,691 $ 139,546 $ - Total Community Funding $ 2,178,764 $ - Total $ 132,728 (7,030) 3,074,570 (315,062) (127,895) $ 2,757,311 $ 138,583 (98,571) $ 40,012 $ 273,349 1,383 (21,577) $ 253,155 $ 3,050,478 $ 1,693, , ,633 $ 2,039,218 $ 7,306 20,794 18,378 60,377 32,691 $ 139,546 $ 2,178,764 See Accompanying Notes to Financial Statements -6-

9 (Continued) UNITED WAY OF SIOUXLAND, INCORPORATED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2015 Temporarily Unrestricted Restricted FUNCTIONAL EXPENSES Finance and Administration $ 89,948 Resource Development 317,349 Communications and Marketing 96,955 United Way Services Community Impact Funding $ 127,437 Information and Referral 82,100 Miscellaneous Services 367 Imagination Library 10,638 Total United Way Services $ 220,542 $ - Total Functional Expenses $ 724,794 $ - United Way of America Dues 33,426 Total Community Funding and Expenses $ 2,936,984 $ - Increase in Net Assets $ 76,412 $ 37,082 Net Assets at Beginning of Year 1,036,481 2,699,817 Net Assets at End of Year $ 1,112,893 $ 2,736,899 Total $ 89, ,349 96,955 $ 127,437 82, ,638 $ 220,542 $ 724,794 33,426 $ 2,936,984 $ 113,494 3,736,298 $ 3,849,792 See Accompanying Notes to Financial Statements -7-

10 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2016 Finance Communiand Resource cations and United Way Administration Development Marketing Services Salaries $ 34,663 $ 193,110 $ 16,579 $ 161,258 Employee Benefits 4,248 25,484 2,188 21,281 Payroll Taxes 2,435 14,607 1,254 12,198 Total $ 405,610 53,201 30,494 Total Compensation $ 41,346 $ 233,201 $ 20,021 $ 194,737 Professional Fees 30,559 2, Supplies and Miscellaneous 3,757 2,994 Telephone 497 2, ,489 Postage and Shipping 2,762 2, Occupancy 1,262 7, ,321 Printing and Publications 1,700 81,296 32, Travel and Meetings 5,168 2, ,051 Conferences and Training 1,337 (110) (97) 2,670 Membership and Dues 4, Rental and Maintenance 956 5, ,790 $ 94,271 $ 341,074 $ 53,965 $ 213,804 Depreciation 2,753 16,519 1,418 13,793 Total Expenses $ 97,024 $ 357,593 $ 55,383 $ 227,597 $ 489,305 33,169 6,751 6,222 5,624 15, ,757 9,559 3,800 5,147 11,977 $ 703,114 34,483 $ 737,597 See Accompanying Notes to Financial Statements -8-

11 STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2015 Finance Communiand Resource cations and United Way Administration Development Marketing Services Salaries $ 33,407 $ 186,057 $ 16,360 $ 158,155 Employee Benefits 3,738 22,482 1,977 19,110 Payroll Taxes 2,399 14,427 1,269 12,263 Total $ 393,979 47,307 30,358 Total Compensation $ 39,544 $ 222,966 $ 19,606 $ 189,528 Professional Fees 24,501 8,681 1,200 Supplies and Miscellaneous 2,949 15,327 Telephone 509 3, ,603 Postage and Shipping 2,855 3, Occupancy 1,250 7, ,390 Printing and Publications 3,424 32,550 74,539 Travel and Meetings 4,150 2,078 2,285 Conferences and Training 3,236 Membership and Dues 3, Rental and Maintenance 970 5, ,956 $ 87,364 $ 301,807 $ 95,588 $ 207,329 Depreciation 2,584 15,542 1,367 13,213 Total Expenses $ 89,948 $ 317,349 $ 96,955 $ 220,542 $ 471,644 34,382 18,276 6,443 6,685 15, ,513 8,513 3,236 4,306 12,271 $ 692,088 32,706 $ 724,794 See Accompanying Notes to Financial Statements -9-

12 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER31, 2016 AND 2015 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH FLOWS FROM OPERA TING ACTIVITIES Cash Received from Contributions $ 2,903,991 $ 2,974,171 Cash Paid for Grants and Allocations Cash Paid to Employees and Suppliers Interest Received (2, 196,900) (699,885) 1,219 (2,195,310) (657,357) 1,383 Net Cash Provided by Operating Activities $ 8,425 $ 122,887 CASH FLOWS FROM INVESTING ACTIVITIES Distributions from Beneficial Interest in Community Foundation (Purchase) Sale of Certificates of Deposit Payment for Purchase of Equipment Net Cash Provided (Used) by Investing Activities $ $ 14,511 $ 92 (582) 14,021 $ 13,149 (92) (56,421) (43,364) Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year $ 22,446 $ 1,609,232 79,523 1,529,709 Cash and Cash Equivalents - End of Year RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH PROVIDED BY OPERA TING ACTIVITIES Change in Net Assets Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities: Depreciation Bad Debt Expense Change in Beneficial Interest in Community Foundation Fund In-Kind Contributions In-Kind Expenses (Increase) in Pledges Receivable Increase (Decrease) in Partner Agency Funding Payable Increase (Decrease) in Initiative Fund Grants Payable Increase in FOCUS Fund Grants Payable Increase (Decrease) in Payables to Designated Agencies Increase (Decrease) in Other Payables and Accrued Liabilities Total Adjustments Net Cash Provided by Operating Activities $ 1,631,678 $ 1,609,232 $ 128,896 $ 113,494 $ 34,483 $ 32, , ,925 (54,815) 21,577 (179,862) (163,279) 179, ,279 (298,932) (201,846) (14,458) 41,205 8,758 (4,399) 50,000 16,194 (18,224) (16,152) 3,449 $ (120,471) $ 9,393 $ 8,425 $ 122,887 See Accompanying Notes to Financial Statements -10-

13 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The United Way of Siouxland, Incorporated is a nonprofit corporation that assists other nonprofit organizations through cooperative fundraising, study, planning and action. The Organization is an autonomous member of the United Way of America. The Organization follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as the F ASB. The F ASB sets generally accepted accounting principles (GAAP) that the Organization follows to ensure they consistently report their financial condition, results of operations, and cash flows. References to GAAP issued by the F ASB in these footnotes are to the F ASB Accounting Standards Codification, sometimes referred to as the Codification or ASC. The financial statements of United Way of Siouxland, Inc. have been prepared on the accrual basis. Resources are classified for accounting and reporting purposes into three net asset categories according to externally (donor) imposed restrictions. A description of the three net asset categories is as follows: Unrestricted Net Assets - Net assets not subject to donor-imposed stipulations. Temporarily Restricted Net Assets - Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Organization and/or the passage of time. Permanently Restricted Net Assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the United Way. Generally, the donors of these assets permit the United Way to use all or part of the income earned on related investments for general or specific purposes. As of December 31, 2016 and 2015, United Way did not have any net assets meeting these specifications. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. All donor-restricted contributions are reported as temporarilyrestricted or permanently-restricted support that increases those net asset classes. Substantially all contributions are temporarily restricted by the donors to provide support to United Way for the next fiscal year. These temporary restrictions are removed by the passage of time. Pledges can be designated by donors to benefit specific agencies. United Way has adopted a policy of including these contributions in the campaign results in the statements of activities. These contributions are then deducted to reflect the amount of revenue recognized according to accounting principles generally accepted in the United States of America. The total amount raised on behalf of others for the years ended December 31, 2016 and 2015 were $329,454 and $315,062, respectively. Allocations to agencies are accrued in the period they are approved by the board of directors. -11-

14 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 Note 1 - (Cont.) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES When a donor-stipulated time restriction ends or a purpose restriction is accomplished, then the restricted net assets are reclassified to unrestricted net assets and are reported in the statement of activities as net assets released from restrictions. True endowment is subject to the restrictions of gift instruments requiring in perpetuity that the principal be invested and the income only be utilized. While internally designated net assets have been established by the governing board for the same purposes as true endowment, any portion of internally designated net assets may be expended. The Organization capitalizes all expenditures for land, buildings, and equipment in excess of $500; the fair value of donated assets are also capitalized. Depreciation is provided using the straight-line method over the estimated lives of the assets. The cost of providing service has been summarized on a functional basis. Expenses by function are allocated based on management's estimate of time and utilization. Donated securities, materials, and equipment are recorded at their estimated fair values at date of receipt as unrestricted support. A substantial number of volunteers have donated significant amounts of their time in the Organization's program services and fund-raising campaigns. These amounts have not been recorded as a donation or expense, according to the Organization's policy. In-kind donations and related expenses are reported in the financial statements as follows: Revenue: Fundraising Events Revenue... $ 65,471 $ 37,976 Special Contributions , ,303 $ $ Expenses: Fundraising Events Expense - Media Services and Materials... $ 65,471 $ 37,976 Finance and Administration - Professional Services... 7,300 5,250 Resource Development - Media Services and Materials... 74,499 45,514 Communications and Marketing - National Advertising... 32,592 74,539 $ 179!862 $ 163!

15 UNITED WAY OF SIOUXLAND, INCORPORATED NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) All Resource Development expenses are fundraising costs. The Organization considers all highly liquid debt instruments with a maturity of 90 days or less to be cash equivalents. Heart of the Midlands Combined Federal Campaign (CFC) is the Principal Combined Fund Organization for the area. Money that is designated to United Way of Siouxland by local government campaigns is processed by Heart of the Midlands CFC and remitted to United Way ofsiouxland. The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 - PLEDGES RECEIVABLE Unconditional promises are included in the financial statements as pledges receivable and revenue of the appropriate net asset category in the period the pledge is received. Allowances are provided for amounts estimated to be uncollectible. The allowance for uncollectible pledges is an estimate based upon a review of outstanding pledges receivable. The allowance is based upon historical experience, adjusted for economic conditions expected to affect the historical factors. Unconditional promises are expected to be realized in the following periods: Pledges Receivable.... Less: Allowance for Uncollectibles Pledges Receivable.... Less: Allowance for Uncollectibles Pledges Receivable.... Less: Allowance for Uncollectibles.... Current Portion (One Year or Less).... Long-Term Portion (One to Five Years).... $ 2,427,503 ( 139,368) 403,858 ( 138,326) 14,000 ( 14,000) $ 2,553,667 ( 2,553,667) $ 2,306,102 ( 127,895) 364,858 ( 133,879) $ 2,409,186 ( 2,409,186) -13-

16 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 Note 3 - BENEFICIAL INTEREST IN COMMUNITY FOUNDATION FUND United Way has established a board-designated endowment fund at Siouxland Community Foundation. The fund is administered by the Foundation for the benefit of United Way. The agreement can be terminated on December 31, of every odd year. The beneficiary of the Fund is the United Way of Siouxland or any other beneficiary designated by the Organization. The Foundation can only change the beneficiary if the donee no longer legally qualifies as a charity. Distributions are allowed annually at 5% of the average fair market value. The assets are recorded as investments on the statements of financial position at their fair values based on the Foundation's underlying investments. Virtually all fair value measurements are made using Level 1 inputs which are quoted prices in active markets for identical securities. Net realized and unrealized gains and losses on the investments are included in net change in value Investments at Cost... $ 709,078 $ 716,392 Unrealized Gain... 50,939 3,322 InvestmentsatFairMarketValue... $ $ The changes in the funds for the years ended December 31, 2016 and 2015 were as follows: Beginning of Year.... $ 719,714 $ 754,440 Investment Income.... $ 15,515 $ 16,945 Net Appreciation (Depreciation) ,698 ( 31,182) Management Fees.... ( 7,398) ( 7,340) Net Change in Value.... $ 54,815 $( 21,577) Distributions.... ( 14,512) ( 13,149) End of Year.... $ $ Note 4 - PROPERTY AND EQUIPMENT The cost and accumulated depreciation at December 31, 2016 and 2015, were as follows: 2016 Accumulated Cost Depreciation Net Land... $ 19,617 $ 19,617 Building ,980 $ 202, ,253 Furniture and Equipment , ,445 83, $ 699!870 $ 335)72 $ 364!698

17 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 Note 4 - PROPERTY AND EQUIPMENT (Cont.) 2015 Accumulated Cost Depreciation Land... $ 19,617 Building 463,980 $ 188,866 Furniture and Equipment , ,682 $ 707,146 $ 308,548 $ 19, , ,867 $ 398,598 Depreciation expense was $34,483 and $32,706 for 2016 and 2015, respectively. Note 5 - INCOME TAXES The United Way of Siouxland, Incorporated is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. Contributions to the United Way are deductible for income tax purposes. Management has concluded that any uncertain tax positions would be immaterial to the financial statements taken as a whole. Accordingly, the accompanying financial statements do not include any provision for uncertain tax positions, and no related interest or penalties have been recorded in the operating statement or accrued in the statements of financial position. Note 6 - EMPLOYEE BENEFIT PLANS Retirement Plan - The Organization has an employee led contribution pension plan. This plan covers substantially all employees who have completed one year of service and work more than 1,000 hours. Annually, the employer will match 100% of all employee contributions up to a maximum of 6% of a participant's salary. Retirement plan expense was $26,532 and $26,029 for December 31, 2016 and 2015, respectively. Flexible Benefit Plan (Cafeteria Plan) - The Organization has a flexible benefit plan for its employees. The plan allows employees to pay their group health insurance with pre-tax dollars. The employees pay 50% of the health insurance premiums, and the Organization pays the remaining 50% of the cost. The Organization's cost for this plan was $26,669 and $21,278 for December 31, 2016 and 2015, respectively. Note 7 - RISKS AND UNCERTAINTIES On December 31, 2016 and 2015, and at various times during the years, United Way had total bank balances greater than the FDIC insurance coverage limit. United Way has exposure on any amount that exceeds that limit in a financial institution, should that institution fail. -15-

18 NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2016 AND 2015 Note 8 - TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets at December 31, 2016 and 2015, consisted of the following: Time Restricted Pledges... $ 3,203, Pledges... $ 3,074,570 Less: Designated Contributions... ( 329,454) ( 315,062) Provision for Uncollectibles... ( 139,368) ( 127,895) Purpose Restricted Custody Accounts Beyond the Bell... 13,220 13,103 Women's Initiatives... 5,075 7,171 Imagination Library... 96,836 83,678 Siouxland Recovery Fund $ $ The 2017 and 2016 pledges included $345,031 and $327,763 of pledges accounted for as agency transactions, because the donors had specified beneficiaries. Of this amount, United Way has estimated a bad-debt allowance of $15,577 and $12,701, respectively. The designated payables are included in the financial statements as follows: 2017 Pledges Designated Contributions... $ Less: Provision for Uncollectibles... ( $ Payable Remaining from ,031 15,577) 329,454 61,448 Payables to Designated Agencies... $ Pledges Designated Contributions... $ Less: Provision for Uncollectibles... ( $ Payable Remaining from Payables to Designated Agencies... $ 327,763 12,701) 315,062 59, ,708 United Way of Siouxland is the fiscal agent for the Siouxland Recovery Fund which is restricted for a specific purpose. Funding decisions are made by a separate board. -16-

19 UNITED WAY OF SIOUXLAND, INCORPORATED NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015 Note 9 - UNRESTRICTED NET ASSETS Unrestricted net assets at December 31, 2016 and 2015, consisted of the following: Reserves - Sioux City... $ 675,861 $ 590,763 Reserves - Le Mars , ,422 1 Y2 Months Reserves from Investments , ,679 Total Reserves.... $ 1,194,286 $ 1,155,864 Investments in Excess of 1 Y2 Months , ,035 Board Designated - Community Impact Fund... 27,313 27,314 Board Designated - FOCUS Grants... 98, ,482 Board Designated - Small Grants... 8,983 15,000 Board Designated - Capital Improvement Fund... 57,996 46,579 Board Designated - Women's Power Lunch... 31,517 24,822 Land, Building and Equipment , ,598 Grants & Allocations Payable... ( 1,039,101) ( 994,801) $ 1,127,816 $ 1,112,823 United Way of Siouxland's reserve policy states a maximum of 4 months may be reserved for the purpose of continuing business. For 2016 and 2015, these amounts are calculated based on a budget of $3,411,000 and $3,332,000, respectively, with 1 Y2 months available from the unrestricted trust account. The budgeted expenses include amounts designated to agencies by donors. Note 10- LINE OF CREDIT During the year ended December 31, 2016, the Organization had $100,000 of unused line of credit with the bank to be drawn upon as needed, with interest at 1.250% above the prime rate. The line of credit expired November 1, Note 11 - SUBSEQUENT EVENTS In preparing the financial statements, the Organization has evaluated all subsequent events, for potential recognition or disclosure, through June 13, 2017, the date the financial statements were available to be issued. -17-

20 UNITED WAY OF SIOUXLAND, INCORPORATED COMMUNITY FUNDING FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 COMMUNITY IMPACT FUNDING Partner Agency Funding: American Red Cross... $ 105,315 The ARC of Woodbury County... 14,000 Big Brothers Big Sisters of Siouxland... 90,000 Boy Scouts of America - Mid-America Council... 41,130 Boys and Girls Clubs of Siouxland... 80,228 Boys and Girls Home and Family Services... 87,210 Catholic Charities ,825 Center for Siouxland... 88,631 Council on Sexual Assault and Domestic Violence ,396 The Crittenton Center ,484 Girls Inc. of Sioux City ,000 Girl Scouts of Greater Iowa... 30,848 Lutheran Services in Iowa... 15,570 Mary Elizabeth Daycare... 75,500 Mary J. Treglia Community House ,898 Native American Child Care Center... 43,600 Norm Waitt Sr. YMCA... 84,214 The Salvation Army... 60,000 Sanford Center ,274 Siouxland CARES About Substance Abuse... 36,435 Siouxland Center for Active Generations , 782 Siouxland Family Community Center... 30,015 Women Aware... 35,357 $ 1,665, $ 123,900 15,775 90,100 48,388 85,523 90, ,135 75, ,153 77, ,256 36,292 15,570 70, ,923 46,216 82,932 55, ,274 37,090 41,665 35,312 33,806 $ 1,693,243 Initiative Funding: Anti-Bullying (Returned to Funding Plan).... Earned Income Tax Credit Outreach... $ Every Classroom Counts.... First Teacher.... Imagination Library.... Iowa Reading Corps.... $ Le Mars Partner Agency Funding: Akron Fire Department... $ Bethany Christian Services.... Big Brothers Big Sisters of Siouxland.... Boy Scouts of America - Mid-America Council.... Center for Financial Aid.... Center for Siouxland.... Church of Damascus.... Council on Sexual Assault and Domestic Violence.... Floyd Valley Healthcare.... Gehl en Catholic Schools.... Girl Scouts of Greater Iowa ,096 35,000 58, ,854 3,500 2,500 18,000 2,000 7,500 5,000 1,000 40,000 13,600 5,000 2,000 $( 12,179) 8,780 5,017 12,096 35,128 57,500 $ 106,342 $ 5,000 18,300 5,000 7,500 5,390 3,000 40,000 9,000 3,

21 COMMUNITY FUNDING FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 COMMUNITY IMPACT FUNDING (Continued) ISU Extension and Outreach.... Le Mars Backpack Program.... Le Mars Collaborative Preschool Program.... Le Mars Community Schools.... Le Mars Daycare.... Le Mars Family Y.... Le Mars Fire and Rescue.... Life Skills Training Center.... Lucky Leprechauns.... Mid-Sioux Opportunity.... Noah's Ark Preschool.... Plains Area Mental Health.... Rejoice Food Pantry.... Rock Valley Senior Volunteers.... Siouxland Area Chapter American Red Cross.... Siouxland Youth for Christ.... Special Troopers Adaptive Riding School.... St. Mary's Schools.... 3,902 15,000 10,000 4,000 20,000 4,676 13, ,000 3,500 2,500 15,000 18,000 9,000 2,500 ( ,000 11,300 9,000 1,000) 22,000 3,600 6,200 10,000 2,000 12,000 3,500 4,051 17,500 18,000 10,000 $ COMMUNITY RESPONSE FUNDING FOCUS Fund Grants: Camp High Hopes... $ Heartland Counseling... Iowa Legal Aid... Iowa Reading Corps... Shesler Hall... $ Small Grants: Center for Siouxland... $ The Crittenton Center... Council on Sexual Assault and Domestic Violence... Heartland Counseling Services... I am Siouxland... Siouxland Human Investment Partnership... $ Imagination Library: Dollywood Foundation... $ Beyond the Bell: Siouxland Human Investment Partnership... $ W ' I... $ omen s n1t1at1ves.... Women's Power Lunch: Scholarships... $ 234,355 50,000 25,000 $ $ 25, ,000 $ 909 2,100 4,500 1,518 5,000 2,500 16,527 24,372 $ 19,276 $ 67,096 $ 24,202 $ 239,633 6,306 1,000 7,306 20,794 18,378 60,377 32,691 Total Community Funding... $ $

22 COMPARISON OF BUDGET TO UNRESTRICTED ACTIVITY FOR THE YEAR ENDED DECEMBER 31, 2016 PUBLIC SUPPORT AND REVENUE Public Support.... In-Kind Revenue.... Change in Value of Beneficial Interest in Community Foundation Fund.... Interest Income.... Total Support, Revenue and Reclassifications.... COMMUNITY FUNDING OPERA TING EXPENSES Salaries.... Employee Benefits.... Payroll Taxes.... Total Compensation.... Professional Fees.... Supplies and Miscellaneous.... Telephone.... Postage and Shipping.... Occupancy.... Printing and Publications.... Travel and Meetings.... Conferences and Training.... Membership and Dues.... Rental and Maintenance.... United Way of America Dues.... Campaign Incentives.... Total Administration.... Depreciation.... In-Kind.... Total Community Funding and Expenses.... Increase (Decrease) in Unrestricted Net Assets.... Budget $ 2,860, ,000 14,511 1,035 $ 2,975,602 $ 2,257,685 $ 410,000 60,110 31,556 $ 501,666 27,500 5,300 7,000 7,750 17,500 10,500 12,500 4,500 5,200 10,500 35,650 6,000 $ 651,566 $ 20,000 $ 100,000 $ 3,029,251 $( ) Unrestricted Actual $ 2,874, ,862 54,815 1,219 $ 3,110,811 $ 2,257,394 $ 405,610 53,201 30,494 $ 489,305 25,869 6,751 6,222 5,624 15,803 8,666 9,559 3,800 5,147 11,977 35,426 $ 624,149 $ 34,483 $ 179,862 $ 3,095,888 $

23 LE MARS CAMPAIGN COMPILED FINANCIAL STATEMENTS DECEMBER 31, 2016 AND 2015

24 CONTENTS Independent Accountants' Compilation Report Page Statements of Financial Position - Le Mars Campaign 2 Statements of Activities - Le Mars Campaign * * * * * * * *

25 HENJES, CONNER & WILLIAMS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 800 FRANCES BUILDING 505 F!Fftt STREET P.O. BOX 1528 SIOUX CITY, IOWA PH. (712) (800) FAX (712) To the Board of Directors United Way of Siouxland, Incorporated Sioux City, Iowa Management is responsible for the accompanying financial statements of UNITED WAY OF SIOUXLAND, INCORPORATED (a non-profit organization) - Le Mars Campaign, which comprise the statements of financial position - Le Mars Campaign as of December 31, 2016 and 2015, and the related statements of activities - Le Mars Campaign for the years then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements. Management has elected to omit substantially all of the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures and the statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Organization's financial position, results of operations, and cash flows. Accordingly, the financial statements are not designed for those who are not informed about such matters. ~ Urvvwt: ~~,tg Certified Public Accountants Sioux City, Iowa June 13,

26 UNITED WAY OF SIOUXLAND, INCORPORATED STATEMENTS OF FINANCIAL POSITION LE MARS CAMPAIGN DECEMBER 31, 2016 AND 2015 CURRENT ASSETS Cash and Cash Equivalents.... Pledges Receivable: 2017 Pledges, Net of Allowance of $17, Pledges, Net of Allowance of $11,702 and $16, Pledges, Net of Allowance of$16, Total Assets $ 342, ,323 6,838 $ 465~ $ 326,024 91,134 8,705 $ CURRENT LIABILITIES Partner Agency Funding Payable Payables to Designated Agencies Total Liabilities $ 113,178 20,452 $ 133,630 $ 113,870 17,034 $ 130,904 NET ASSETS Unrestricted.... Temporarily Restricted.... Total Net Assets.... Total Liabilities and Net Assets.... $ 28, ,234 $ 332,106 $ $ 22, ,408 $ 294,959 $ See Independent Accountants' Compilation Report -2-

27 STATEMENTS OF ACTIVITIES LE MARS CAMPAIGN FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 PUBLIC SUPPORT AND REVENUE 2017 Campaign Contributions.... Less: Provision for Uncollectibles.... Designated Contributions.... Special Contributions.... Net Assets Released from Restrictions: 2016 Campaign Contributions.... Less: Provision for Uncollectibles.... Designated Contributions.... Special Contributions.... Total Campaign and Reclassifications.... Investment Income.... Fundraising Income.... Total Support, Revenue, and Reclassifications Unrestricted Net Assets $ 10, ,057 ( 16,674) ( 17,034) 11,620 $ 282, ,929 $ 286, Temporarily Restricted Net Assets $ 330,772 ( 17,289) ( 20,452) 9,764 (294,057) 16,674 17,034 ( 11,620) $ 30,826 $ 30,826 Total Net Assets $ 330,772 ( 7,192) ( 20,452) 9,764 $ 312, ,929 $ 317,137 Community Funding.... Management Expense.... Total Expenses.... $ 250,475 29,515 $ 279,990 $ 250,475 29,515 $ 279,990 Increase in Net Assets.... Net Assets Beginning of Year.... $ 6,321 22,551 $ 30, ,408 $ 37, ,959 Net Assets End of Year.... $ $ $ PUBLIC SUPPORT AND REVENUE 2016 Campaign Contributions.... Less: Provision for Uncollectibles.... Designated Contributions.... Special Contributions.... Net Assets Released from Restrictions: 2015 Campaign Contributions.... Less: Provision for Uncollectibles.... Designated Contributions.... Special Contributions.... Total Campaign and Reclassifications.... Investment Income.... Fundraising Income.... Total Support, Revenue, and Reclassifications Unrestricted Net Assets $( 6,836) 318,058 ( 16,097) ( 29,353) 11,164 $ 276, ,848 $ 281, Temporarily Restricted Net Assets $ 294,057 ( 16,674) ( 17,034) 15,820 (318,058) 16,097 29,353 ( 11,164) $( 7,603) $( 7,603) Total Net Assets $ 294,057 ( 23,510) ( 17,034) 15,820 $ 269, ,848 $ 273,529 Community Funding.... Management Expense.... Total Expenses.... $ 254,797 30,331 $ 285,128 $ 254,797 30,331 $ 285,128 (Decrease) in Net Assets.... Net Assets Beginning of Year.... $( 3,996) 26,547 $( 7,603) 280,011 $( 11,599) 306,558 Net Assets End of Year.... $ $ $ See Independent Accountants' Compilation Report -3-