EMERGENCY MEDICAL SYSTEMS, INC. (A Not-for-Profit Corporation)
Financial Statements and Independent Accountant’s Review Report June 30, 2025
ARIZONA
INDEPENDENT ACCOUNTANT’S REVIEW REPORT
To the Board of Directors of Arizona Emergency Medical Systems, Inc.
Fountain Hills, Arizona
We have reviewed the accompanying financial statements of Arizona Emergency Medical Systems, Inc. (an Arizona not-for-profit corporation), which comprise the statement of financial position as of June 30, 2025, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management’s financial data and making inquiries of management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.
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.
Accountant’s Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.
We are required to be independent of Arizona Emergency Medical Systems, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our review.
Accountant’s Conclusion
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.
Eckelberg & Wienshienk, P.C.
Eckelberg & Wienshienk, P.C.
Phoenix, Arizona
September 9, 2025
Prepaid expenses
Property and equipment, net
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation) Statement of Financial Position As of June 30, 2025 Accrued expenses
EXPENSES
ACTIVITIES
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation) Statement of Activities For the year ended June 30, 2025
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Statement of Functional Expenses
For the year ended June 30, 2025
Program Services
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation) Statement of Cash Flows For the year ended June 30, 2025
to reconcile change in net assets to net cash provided by (used in) operating activities:
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note 1 Description of the Organization
Arizona Emergency Medical Systems, Inc. (AEMS) a not-for-profit corporation without capital stock located in Fountain Hills, Arizona, was established on October 15, 1974. AEMS is a community-based, volunteer organization dedicated to improving emergency medical services (EMS) and trauma care for the Central Arizona region (which includes Maricopa, Pinal, and Gila counties).
Since 1974, AEMS has been bringing together physicians, nurses, EMTs, paramedics, and hospital administrators to ensure that emergency medical care is delivered in a coordinated manner, and that it is meeting the needs of the public.
Funding is primarily derived through a contract with Arizona Department of Health Services, and membership dues. In addition, AEMS hosts an annual EMS Odyssey Conference which generates participant and vendor participation fees. In 2025, the EMS Odyssey Conference was held as an online event.
Note 2 Summary of Significant Accounting Policies
Basis of Presentation
The financial statements of AEMS have been prepared in accordance with U.S. generally accepted accounting principles ("US GAAP"), which require AEMS to report information regarding its financial position and activities according to the following net asset classifications:
Net assets without donor restrictions: Net assets that are not subject to donorimposed restrictions and may be expended for any purpose in performing the primary objectives of the Organization. These net assets may be used at the discretion of AEMS management and the board of directors.
Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of AEMS or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity.
Donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statement of activities.
Arizona
Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note 2 Summary of Accounting Policies (continued)
Cash and Cash Equivalents
Cash equivalents consist of cash on deposit with banks. Cash equivalents represent certificates of deposits with short term maturities.
Receivables
Unconditional promises to give that are expected to be collected within one year are recorded at net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on those amounts are computed using risk-adjustment interest rates applicable to the years in which the promises are received. Discount amortization is included in contribution revenue. Conditional promises to give are not included as support until the conditions are met.
As of June 30, 2025 receivables consist of unconditional promises to give from member organizations, a contract with the State of Arizona, and funding from another organization. Arizona Emergency Medical Systems, Inc. uses the allowance method to determine the amount of uncollectible accounts receivable. Management evaluates all accounts receivable at year end and makes a determination as to collectibility. All accounts receivable were considered collectible, so there is no allowance account at June 30, 2025.
Use of Estimates
The preparation of financial statements in conformity with U. S. generally accepted accounting principles (GAAP) 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note 2 Summary of Accounting Policies (continued)
Property and Equipment
Purchases of equipment and software costing $150 or more are capitalized and recorded at cost. Depreciation is provided over the estimated useful lives of the assets and computed on straight-line and accelerated methods. Maintenance and repairs are charged to operating expenses as incurred. The cost of renewals and betterments that materially extend the useful lives of an asset or increase their productivity are capitalized. The costs and accumulated depreciation of assets sold or retired are removed from the account and any gain or loss is recognized in the year of disposition. Equipment received as a donation is recorded at its fair value at the date of donation. Such donations are reported as unrestricted contributions unless the donor has restricted the donated asset to a specific purpose. No such restrictions apply to the equipment of AEMS at June 30, 2025.
Long-lived Assets
Long-lived assets to be held and used are tested for recoverability whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the excess of the asset’s carrying amount over the fair value of the asset. Certain long-lived assets to be disposed of by sale are reported at the lower of carrying amount or fair value less cost to sell. During the year ended June 30, 2025, no long-lived assets were removed.
Donated Goods and Services
The contributions for services are recognized if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills that are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. Other volunteers may have donated their time AEMS programs during the year; however, these donated services are not reflected in the financial statements since the services do not require specialized skills.
Accrued Vacation and Sick Time
Vacation and sick time pay are recorded as a liability and updated at the end of each fiscal year. Accrued vacation and sick time are included in the accompanying statement of financial position; the amount accrued at June 30, 2025 was $19,344.
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note 2 Summary of Accounting Policies (continued)
Prepaid Membership Dues
Membership is optional and member organizations may choose a two-year membership which is paid in advance. These second-year membership payments are recorded as a liability to be recognized as income in the following fiscal year.
Functional Allocation of Expenses
The costs of providing the various programs and other activities have been summarized on a functional basis in the statement of activity Accordingly, costs have been allocated among program and management and general according to the activity benefited. Such allocations are determined by management on an equitable basis.
Concentration of Credit Risk
Financial instruments that potentially subject Arizona Emergency Medical Systems, Inc. to concentrations of credit risk consist principally of cash and cash equivalents. Arizona Emergency Medical Systems, Inc. places its cash deposits with financial institutions and generally limits the amount of credit exposure in any one financial institution to the amount of Federal Deposit Insurance Corporation (FDIC) insurance. From time-to-time, funds on deposit may exceed federally insured limits of $250,000. AEMS has not experienced any losses on its cash equivalents.
At June 30, 2025, an amount of $301,871 in deposits was held in a money market account. As such, these funds are not insured by the Federal Deposit Insurance Corporation (FDIC).
Income Taxes
Arizona Emergency Medical Systems, Inc. is a not-for-profit corporation whereby revenue is derived from contributions, grants and fees for program services and is not subject to federal or state income taxes under IRC Section 501(c)(3). In addition, Arizona Emergency Medical Systems, Inc. qualifies for the charitable deduction under Section 170 of the Code and is classified as an organization that is not a private foundation under Section 509(a)(1). Income determined to be unrelated business income would be subject to income tax. Management believes that it has appropriate support for any tax positions taken and as such, does not have any uncertain tax positions that are material to the financial statements.
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note
3 Availability and Liquidity
For purposes of analyzing resources available to meet general expenditures over a 12month period, the Organization considers all expenditures related to its ongoing activities of providing services to be general expenditures. Financial assets available for general expenditures available within one year from June 30, 2025, are as follows:
Note 4 Property and Equipment
Major classification of property and equipment at June 30, 2025 and their respective depreciation lives are summarized below.
Depreciation expense for the year ended June 30, 2025 was $578.
Note 5 Receivables
At June 30, 2025, receivables
of the following:
Management’s estimate of the allowance for doubtful accounts is based on the collectability of individual accounts. Arizona Emergency Medical Systems, Inc. evaluated the key factors and assumptions used to develop the allowance for doubtful accounts in determining that the allowance is reasonable in relation to the financial statements taken as a whole.
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note 6 Prepaid Expenses
Major classifications of prepaid expenses at June 30, 2025 were as follows:
Note 7 Donated Expenses
The contributions for services are recognized if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills that are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation.
During fiscal year ended June 30, 2025, AEMS received donated services related to the Obstetric Life Support (OBLS) initiative in the amount of $3,000. These services included attending meetings, developing and coordinating marketing and promotional materials. There were no donor-imposed restrictions associated with the donated services.
Approximately 2,587 volunteer hours were provided to Arizona Emergency Medical Systems, Inc. during the year ended June 30, 2025 for which no amounts have been recognized in the accompanying statement of activities, because the criteria for recognition of such volunteer effort under SFAS No. 116 have not been satisfied.
Note 8 Accrued Expenses
At June 30, 2025, accrued expenses
Note 9 Net Assets With Donor Restrictions
At June 30, 2025, net assets, in the amount of $23,500, were temporarily restricted for the 50th Anniversary Party to be held in October, 2025.
At June 30, 2025, there were no permanently restricted net assets.
Arizona Emergency Medical Systems, Inc. (A Not-for-Profit Corporation)
Notes to Financial Statements
June 30, 2025
Note 10 Functional Allocation of Expenses
The following outlines the Organization’s program services:
Education, Prevention & Training – functional expense category supports, coordinates, and implements learning opportunities, program development, and information sharing activities. Selected examples of education, prevention, and training activities include: Functional Group Topical Focus and Lunch N Learn presentations; EMS Odyssey Conference; pediatric training; RED Book; and the AEMS website.
Planning – functional expense category supports the various processes that support the development and implementation of activities pertaining to education, prevention, training, community outreach, resource distribution, and advocacy. Selected examples of planning activities include: Functional Group meeting coordination; transfer of care oversight; and categorization.
Community Outreach & Resources – functional expense category represents activities that provide awareness about EMS. Additionally, this category represents activities that support the procurement and distribution of additional resources for AEMS providers. Selected examples of Community Outreach and Resources activities include: AEMS Service Awards; Aces of Hearts Awards; and rural scholarship fundraising.
Advocacy – functional expense category supports AEMS involvement and leadership with issues affecting EMS through representation and involvement with various State Committees, AEMS Board of Governors, Functional Groups, AEMS committees and task forces, and partnership with other community organizations. Selected advocacy issues include: diversion; EPIC; stroke centers; categorization; cardiac arrest/SHARE program; trauma, disaster, pediatrics, and community paramedicine.
Note 11 Economic Dependency
Arizona Emergency Medical Systems, Inc. relies on a contract with the Arizona Department of Health Services for approximately 55.6% of its total support. The funding is contingent upon AEMS complying with contract requirements and the availability of future state funding. If this funding were discontinued by Arizona, there would be a material effect on the ability of AEMS to operate.
Note 12 Subsequent Events
In preparing these financial statements, Arizona Emergency Medical Systems, Inc. has evaluated events and transactions for potential recognition or disclosure through September 9, 2025, the date the financial statements were available to be issued. Arizona Emergency Medical Systems, Inc. is not aware of any material subsequent events.
