Conflue nc e Ac ade my, Inc . Audito r Co mmunic a tio ns And Re - PowerPoint PPT Presentation

Conflue nc e Ac ade my, Inc . Audito r Co mmunic a tio ns And Re sults Of T he Annua l Audit fo r the ye a r e nde d June 30, 2017

Co nflue nc e Ac a de my, I nc . Bo a rd o f Dire c to rs Co nflue nc e Ac a de my, I nc . a nd F rie nds o f Co nflue nc e Ac a de my St. L o uis, Misso uri De a r L a die s a nd Ge ntle me n: We a re ple a se d to ha ve the o ppo rtunity to me e t with yo u to disc uss the re sults o f o ur a udit e ng a g e me nt o f Co nflue nc e Ac a de my, I nc . inc luding Co nflue nc e Ac a de my L E A, Gra nd Ce nte r Arts Ac a de my L E A a nd F rie nds o f Co nflue nc e Ac a de my fo r the ye a r e nde d June 30, 2017. T he a c c o mpa nying re po rt pre se nts info rma tio n re g a rding the sc o pe o f o ur a udits a nd o the r ma tte rs, whic h summa rize the re sults o f o ur a udit e ng a g e me nt. We tha nk yo u fo r the o ppo rtunity to b e o f c o ntinue d se rvic e to Co nflue nc e Ac a de my, I nc . We ha ve re c e ive d e xc e lle nt c o o pe ra tio n a nd a ssista nc e fro m ma na g e me nt a nd sta ff, b o th with re spe c t to a c c e ss to re c o rds, suppo rting do c ume nta tio n a nd re spo nse s to inquirie s. No limita tio ns we re impo se d o n o ur a udit pro c e dure s o r the e xte nt o f o ur a udit. F o r Bo a rd And Ma na g e me nt Use Only 22

T a b le Of Co nte nts Co nflue nc e Ac a de my, I nc . Page E ng a g e me nt T e a m 1 Audito r Co mmunic a tio ns 2 - 10 Are a s T ha t Pro vide Oppo rtunity F o r I mpro ve me nt 11 Prio r Ye a r Oppo rtunitie s F o r I mpro ve me nt 12 Da ta Ana lysis: Summa ry o f Pro c e dure s 13 Be nfo rd’ s L a w 14 E me rg ing T e c hnic a l T o pic s 15 - 18 I nde pe nde nt Audito rs’ Re po rt On Additio na l I nfo rma tio n 19 Appe ndix A - Ma na g e me nt Re pre se nta tio n L e tte rs F o r Bo a rd And Ma na g e me nt Use Only 23

E ng a g e me nt T e a m Co nflue nc e Ac a de my, I nc . Jeff Winter Engagement Partner Brandi Lawyer and Pat Miller Engagement Managers Alyssa Ward Engagement Supervisor Emily Kraenzle Engagement Staff F o r Bo a rd And Ma na g e me nt Use Only 1

Audito r Co mmunic a tio ns Co nflue nc e Ac a de my, I nc . Bo a rd o f Dire c to rs Co nflue nc e Ac a de my, I nc . a nd F rie nds o f Co nflue nc e Ac a de my St. L o uis, Misso uri We ha ve a udite d the b a sic fina nc ia l sta te me nts o f Co nflue nc e Ac a de my, I nc . (the Ac a de my), whic h inc lude s se pa ra te a udits fo r Co nflue nc e Ac a de my L E A, Gra nd Ce nte r Arts Ac a de my L E A (GCAA), a nd F rie nds o f Co nflue nc e Ac a de my, a ll fo r the ye a r e nde d June 30, 2017. Our a udits we re pe rfo rme d in a c c o rda nc e with a uditing sta nda rds g e ne ra lly a c c e pte d in the Unite d Sta te s o f Ame ric a a nd, e xc e pt fo r F rie nds o f Co nflue nc e Ac a de my, the sta nda rds a pplic a b le to fina nc ia l a udits c o nta ine d in Go ve rnme nt Auditing Sta nda rds issue d b y the Co mptro lle r Ge ne ra l o f the Unite d Sta te s. T ho se sta nda rds re quire tha t we pla n a nd pe rfo rm the a udit to o b ta in re a so na b le a ssura nc e a b o ut whe the r the fina nc ia l sta te me nts a re fre e fro m ma te ria l missta te me nt a nd pre se nte d in a c c o rda nc e with a c c o unting princ iple s g e ne ra lly a c c e pte d in the Unite d Sta te s o f Ame ric a . Our a udits invo lve d pe rfo rming pro c e dure s to o b ta in e vide nc e suppo rting the a mo unts a nd disc lo sure s in the fina nc ia l sta te me nts. We a lso e va lua te d the a ppro pria te ne ss o f a c c o unting po lic ie s use d b y the Ac a de my a nd the re a so na b le ne ss o f sig nific a nt a c c o unting e stima te s ma de b y the Ac a de my’ s ma na g e me nt, a s we ll a s e va lua te d the o ve ra ll pre se nta tio n o f the fina nc ia l sta te me nts. Auditing sta nda rds re quire the a udito r to e nsure tha t tho se c ha rg e d with c o rpo ra te g o ve rna nc e re c e ive a dditio na l info rma tio n re g a rding the sc o pe a nd re sults o f the a udits tha t ma y a ssist the g o ve rning b o dy in o ve rse e ing the fina nc ia l re po rting a nd disc lo sure pro c e ss fo r whic h ma na g e me nt is re spo nsible . T he fo llo wing se c tio n de sc rib e s ma tte rs whic h a re re q uire d to b e re po rte d to yo u. T his info rma tio n is inte nde d so le ly fo r the use o f the Bo a rd o f Dire c to rs o f Co nflue nc e Ac a de my, I nc . a nd is no t inte nde d to b e a nd sho uld no t b e use d b y a nyo ne o the r tha n the se spe c ifie d pa rtie s. F o r Bo a rd And Ma na g e me nt Use Only 2

Audito r Co mmunic a tio ns (Co ntinue d) Co nflue nc e Ac a de my, I nc . ARE A COMME NT S Re po rts issue d b y Rub inBro wn L L P: Auditor s’ Re sponsibility Unde r U.S. Ge ne r ally Ac c e pte d Auditing Gra nd Ce nte r Arts Ac a de my, L E A Standards  Our re spo nsib ility, a s de sc rib e d b y pro fe ssio na l sta nda rds, is to An unmo difie d o pinio n o n the fina nc ia l sta te me nts o f  e xpre ss o pinio ns a b o ut whe the r the fina nc ia l sta te me nts Gra nd Ce nte r Arts Ac a de my, L E A. pre pa re d b y ma na g e me nt with o ur a ssista nc e a re fa irly An e mpha sis o f ma tte r re la te d to sub sta ntia l do ub t  pre se nte d, in a ll ma te ria l re spe c ts, in c o nfo rmity with U.S. a b o ut the L E A’ s a b ility to c o ntinue a s a g o ing c o nc e rn. g e ne ra lly a c c e pte d a c c o unting princ iple s a nd tha t Our I nde pe nde nt Audito rs’ Re po rt o n inte rna l c o ntro l  Co nflue nc e Ac a de my, I nc . a nd a ll re la te d e ntitle s (the o ve r fina nc ia l re po rting a nd o n c o mplia nc e a nd o the r Ac a de my) ha s c o mplie d in a ll ma te ria l re spe c ts with the ma tte rs b a se d o n a n a udit o f fina nc ia l sta te me nts a pplic a b le c o mplia nc e re q uire me nts o f its ma jo r fe de ra l pe rfo rme d in a c c o rda nc e with Go ve rnme nt Auditing pro g ra ms. Our a udit o f the fina nc ia l sta te me nts do e s no t Sta nda rds. re lie ve yo u o r ma na g e me nt o f re spo nsib ility fo r the a c c ura c y An unmo difie d o pinio n o n c o mplia nc e with  o f the fina nc ia l sta te me nts. re q uire me nts a pplic a b le to ma jo r fe de ra l pro g ra ms a nd o ur re po rt o n inte rna l c o ntro l o ve r c o mplia nc e in As pa rt o f o ur a udit, we c o nside re d the inte rna l c o ntro l o f the a c c o rda nc e with Unifo rm Guida nc e . Ac a de my. Suc h c o nside ra tio ns we re so le ly fo r the purpo se o f An unmo difie d o pinio n o n sta te c o mplia nc e  de te rmining o ur a udit pro c e dure s a nd no t to pro vide a ny re q uire me nts re la ting to a tte nda nc e a nd b udg e ts. a ssura nc e c o nc e rning suc h inte rna l c o ntro l. F rie nds o f Co nflue nc e Ac a de my  An unmo difie d o pinio n o n the fina nc ia l sta te me nts o f  F rie nds o f Co nflue nc e Ac a de my. Co nflue nc e Ac a de my, L E A  An unmo difie d o pinio n o n the fina nc ia l sta te me nts o f  Co nflue nc e Ac a de my, L E A. F o r Bo a rd And Ma na g e me nt Use Only 3

Audito r Co mmunic a tio ns (Co ntinue d) Co nflue nc e Ac a de my, I nc . ARE A COMME NT S Re po rts issue d b y Rub inBro wn L L P (Co ntinue d):  Auditor s’ Re sponsibility Unde r U.S. Ge ne r ally Ac c e pte d Auditing Standards (Continue d) Our I nde pe nde nt Audito rs’ Re po rt o n inte rna l c o ntro l  o ve r fina nc ia l re po rting a nd o n c o mplia nc e a nd o the r ma tte rs b a se d o n a n a udit o f fina nc ia l sta te me nts pe rfo rme d in a c c o rda nc e with Go ve rnme nt Auditing Sta nda rds. An unmo difie d o pinio n o n c o mplia nc e with  re q uire me nts a pplic a b le to ma jo r fe de ra l pro g ra ms a nd o ur re po rt o n inte rna l c o ntro l o ve r c o mplia nc e in a c c o rda nc e with Unifo rm Guida nc e . An unmo difie d o pinio n o n sta te c o mplia nc e  re q uire me nts re la ting to tra nspo rta tio n sta tute s, a tte nda nc e , a nd b udg e ts. Co nflue nc e Ac a de my, I nc . (Co nso lida te d)  An unmo difie d o pinio n o n the c o nso lida te d fina nc ia l  sta te me nt o f Co nflue nc e Ac a de my, I nc . An I nde pe nde nt Ac c o unta nts’ Re po rt a tte sting to  c e rta in de b t c o ve na nts re la te d to the Ac a de my, a s de fine d in the L o a n a nd T rust Ag re e me nt. F o rm 990 ta x re turn.  F o r Bo a rd And Ma na g e me nt Use Only 4