CONTINUING DEVELOPMENT, INC. REPORT ON EXAMINATION OF FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION

Transcription

1 CONTINUING DEVELOPMENT, INC. REPORT ON EXAMINATION OF FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016)

2 CONTENTS INDEPENDENT AUDITORS' REPORT... 1 Statement of Financial Position....4 Statement of Activities... 5 Consolidated Statement of Cash Flows... 6 Notes to Financial Statements... 7 ADDITIONAL INFORMATION Schedule of Expenditures of Federal and State Awards Combining Statement of Revenue and Expenses Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Report on Compliance for Each Major Federal Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance California State Department of Education Reporting: General Information Schedule of Expenditures by State Catagories- CDE Schedule of Capital Outlay Expenditures Utilizing Contract Funds - CDE Combining Schedule of Administrative Costs- CDE Schedule of Start up Costs - CDE Audited Final Attendance and Fiscal Reports- CDE Audited Final Reserve Account Cash Activity Report- CDE California State Department of Education Reporting- Unified School Districts: Schedule of Expenditures by State Categories- USD Schedule of Administrative Costs - USD Audited Final Attendance and Fiscal Reports - USD SCHEDULE OF FINDINGS AND QUESTIONED COSTS... 87

3 RANDOLPH SCOTT & COMPANY CERTIFIED PUBLIC ACCOUNTANTS, INC. INDEPENDENT AUDITORS' REPORT November 14, 2017 Board of Directors Continuing Development, Inc. San Jose, California Report on the Financial Statements We have audited the accompanying financial statements of Continuing Development, Inc., which comprise the statement of financial position as of June 30, 2017, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements. Management 1 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 oprnron on these financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of 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. NORTHERN CALIFORNIA- 1 COMMERCIAL BLVD.. SUITE 101, NOVATO, CA (415) SOUTHERN CALIFORNIA SANTA MONICA BLVD., BEVERLY HILLS, CA (888) /RSCOCPAS.COM Members of American Institute and California Society of Certified Public Accountants, The Center for Public CoJ11pany Atldit rirms rtnd Governmental Audit Quality Center

4 Board of Directors Continuing Development, Inc. November 14, 2017 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Continuing Development, Inc., as of June 30, 2017, and the changes in its net assets and its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opm1on on the financial statements as a whole. The accompanying schedule of expenditures of federal and state awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for C::odor'!:l/ LltAJarrlc fl lnifrwm r.:!llirl'!:lnro.) IV \...t'iui FlVV I \.IV \"'--'1111\JIIII... UI\o..4U IVV' anrl the f""l"'lmht"ninn c:t~tamo.ntc:. nf ar-ti\/"lt!"ec:::: 1\.A loll V"-111'-' 11111::3 _. - - t.-- Vow -, and 11 the supplemental reporting for the California Department of Education are presented for purposes of additional analysis and are 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 consolidated financial statements taken as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 14, 2017 on our consideration of Continuing Development, Inc.'s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with the Government Auditing Standards in considering Continuing Development, Inc.'s internal control over financial reporting and compliance. RANDOLPH SCOTT & COMPANY Members of Amer1can lnstrtute and California Society of Certified Public Accountants and SEC Practice Sectron 2

5 Board of Directors Continuing Development, Inc. November 14, 2017 Report on Summarized Comparative Information We have previously audited the Continuing Development, Inc.'s June 30, 2016 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated November 14, In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2016, is consistent, in all material respects, with the audited financial statements from which it has been derived. Certified Public Accountants, Inc. Novato, California 3 RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certified Public Accountants and SEC Practrce Sect ron

6 CONTINUING DEVELOPMENT, INC. STATEMENT OF FINANCIAL POSITION YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) ASSETS Unrestricted Temporarily Restricted Total All Funds CURRENT ASSETS Cash and Cash Equivalents (Note A) $ 3,500,295 $ 268,494 Grants and Accounts Receivable (Note D) 3,428,078 Prepaid Expenses 292,228 Total Current Assets 7,220, ,494 PROPERTY AND EQUIPMENT (Note E) 3,280 DEPOSITS 19,670 TOTAL ASSETS $ 7,243,551 $ 268,494 $ 3,768,789 $ 4,496,677 3,428,078 3,240, , ,253 7,489,095 7,926,303 3,280 49,541 19,670 19,670 $ 7,512,045 $ 7,995,514 LIABILITIES AND NET ASSETS CURRENT LIBILITIES Accounts Payable and Accrued Expenses $ 5,179,865 $ Due to CDE 804,723 CACFP Advance 15,700 Deferred Revenue 268,494 Refundable Advances 15,769 Total Liabilities 6,284,551 NET ASSETS Unrestricted 428,803 Temporarily Restricted (Note B) 268,494 Investment in Fixed Assets.3,280 CDE Reserve (Note F) 526,917 Total Net Assets 959, ,494 $ 5,179,865 $ 5,520, , ,795 15,700 15, , ,451 15, ,847 6,284,551 6,740, ,803 (53,294) 268, ,451 3,280 49, ,917 1 '149,793 1,227,494 1,255,490 TOTAL LIABILITIES AND NET ASSETS $ 7,243,551 $ 268,494 $ 7,512,045 $ 7,995,514 See Notes to Financial Statements. 4

7 CONTINUING DEVELOPMENT, INC. STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) Temporarily Unrestricted Restricted REVENUES California Dept. of Education $ 30,955,685 $ California Dept. of Education - Reserves 628,100 School Districts 2,001,898 Child and Adult Care Food Program 3,140,024 Program Fees: Certified 1,486,213 Non-Certified 14,494,147 Other Revenue 830, ,043 Net Assets Released from Donor Restrictions (Note C) Expiration of Time Restrictions (Note C) Total Revenue 53,536, ,043 EXPENSES Direct CDE Programs 44,318,796 School District Subcontracts 1,840,361 Center Private Pay 6,895,457 Total Expenses 53,054,614 CHANGE IN NET ASSETS $ 482,097 $ 159,043 Other Adjustements to Net Assets Additions/Dispositions of Equipment (Note A) Depreciation of Equipment (Note A) {46,260} (46,260) NET ASSETS, beginning of year 1,146, ,451 CDE Reserve (Note F) (622,876) NET ASSETS, end of year $ 959,000 $ 268,494 Total All Funds $ 30,955,685 $ 31,002, ,100 2,001,898 2,128,529 3,140,024 3,342,020 1,486,213 1,411,192 14,494,147 14,097, ,687 1,134,465 (24,393} 53,695,754 53,091,642 44,318,796 45,238,690 1,840,361 1,680,296 6,895,457 6,926,548 53,054,614 53,845,534 $ 641 '140 $ (753,892) (46,260} (93,872} (46,260) (93,872) 1,255, ,461 (622,876) 1,149,793 $ 1,227,494 $ 1,255,490 See Notes to Financial Statements. 5

8 CONTINUING DEVELOPMENT, INC. STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets Adjustments to reconcile net revenue to cash provided by operating activities Depreciation (Note E) Less Depreciation to Net Assets (Increase) decrease in assets: Grants and Accounts Receivable Prepaid Expenses Deposits Increase (decrease) in liabilities: Accounts Payable and Accrued Expenses Due to CDE CACFP Advance Deferred Revenue CDE Reserve Refundable Advances Total Adjustments Net Cash provided (used) by operating activities '140 (753,892) 46,261 93,872 (46,260) (93,872) (187,705) (545,454) (102,975) 14,942 (340,266) 997,889 (42,072) 189,830 (1 00) (1,400) 159, ,451 (622,876) 339,642 {232,078} 183,322 {1,369,028) 1,288,222 {727,888) 534,330 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of Property and Equipment & other additions Less Property & Equipment charged to investment in fixed assets Net cash provided (used) by investing activities: CASH FLOWS FROM FINANCING ACTIVITIES Net Cash provided (used) by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, beginning of year CASH AND CASH EQUIVALENTS, end of year (727,888) 534,330 4,496,677 3,962,347 3,768,789 4,496,677 Supplemental cash flow information Interest Paid See Notes to Financial Statements. 6

9 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 {With Comparative Totals for 2016) NOTE A- GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Continuing Development, Inc., (COl) was founded as a nonprofit public benefit corporation on January 31, COl's was formed to promote, stimulate, and assist the growth and development of children and other persons in need. CDI is both publicly and privately funded, with the majority of its public funding coming either directly or indirectly from the California Department of Education. Major Operating Programs Child Development Programs COl provides parents with child care through their Center Based, Migrant child care, Preschool and Extended Day Care programs. CDI has centers located throughout the state of California. Alternative Pavment Programs COl helps parents find child care through their Resource and Referral Network. The Alternative Payment (parental choice) and CaiWORKs programs give parents financial assistance for child care if they wish to pursue job training, find employment or further their education. Child and Adult Care Food Programs CDI also provides healthy meals to children eligible to participate in the Child and Adult Care Food Program administered by the California State Department of Education. Children at both centers and family day care homes participate in these programs. Accounting Policies Accrual Basis The accounting records of CDI are maintained on the accrual basis in accordance with accounting principles generally accepted in the United States of America. 7

10 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE A- GENERAl AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Accounting To ensure observance of limitations and restrictions placed on the use of resources available to the Agency, the accounts of the Agency are maintained in accordance with the principles of fund accounting. Fund accounting is the procedures by which resources for the various programs are classified for accounting and reporting according to the activities and objectives specified by donors, grantors, officials, and governing boards. Separate accounts are maintained for each fund. Accounting in accordance with ASC and 958~ CDI reports contributions of cash and other assets as restricted support if they are received with donor stipulations t~at limit the use of the asset contributed. When a donor restriction expires, that is, when a 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. In accordance with ASC , a contribution would be recognized when a donor makes a pledge to give that is, in substance, an unconditional promise. An allowance for uncollectible pledges receivable, if recorded, is based upon management's analysis of specific unconditional promises and on CDI's prior experience. 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, liabilities, net assets, and revenues and expenses for the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of financial instruments: Cash and cash equivalents: The carrying amount reported in the statement of financial position sheet for cash and cash equivalents approximates its fair value. 8

11 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE A- GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair Value of Financial Instruments- (Continued) Accounts receivable and accounts payable: The carrying amounts of accounts receivable and accounts payable in the statement of financial position approximates fair value. Concentrations of Credit Risk Financial instruments that potentially subject CDI to concentrations of credit risk consist principally of uninsured cash balances. CDI places its cash deposits with high credit quality financial institutions. At times, balances in COl's cash accounts may exceed the Federal Deposit Insurance Corporation (FDIC) limit of $250,000. Uninsured balances at June 30, 2017 were approximately$ 3, 782,000, Concentration of Revenue Sources During the year ended June 30, 2017, the Agency had two major restricted revenue sources, the California Department of Education and the Unified School Districts, which accounted for approximately 58% and 4% of the total revenue of the Agency. Cash and Cash Equivalents Cash is defined as cash in demand deposit accounts as well as cash on hand. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and investments so near their maturity that the risk of changes in value due to changes in interest rates is negligible. These are generally investments with maturity dates within three months of their acquisition date. Not included as cash equivalents are funds restricted as to their use, regardless of liquidity or the maturity dates of investments. Property and Equipment As further discussed in Note E, property and equipment are stated at cost. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are stated at cost, and amortized by the straight-line method over the estimated useful life or remaining term of lease, whichever is shorter. 9

12 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE A- GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property and Equipment- (Continued) CDI reports gifts of land, buildings, and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, CDI reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. CDI capitalizes all assets with a per unit value of $5,000 or more and expected life greater than 1 year, except where a grantor may impose a different threshold. Non-capital assets purchased with grantor funds are expensed in the period acquired in accordance with the grantor's Funding Terms and Conditions. Capital asset purchases are capitalized in the equipment fund balance, and depreciated over their useful live. Depreciation on these restricted assets is shown as a reduction to the restricted fund balance. Retirements are reflected as decreases to the furniture and equipment account, with a corresponding reduction in the restricted fund balance. In accordance with funding terms and conditions, title to those assets is retained by the State. Vacation Policy Regular full time and part time employees are eligible to use vacation days after three months of continuous employment. Full time and part time active employees will earn vacation time for each hour of paid time (excluding overtime work). Vacation accrues according to the following table: Years of Service Accrual Rate Per Hour Upon hire into Full Time or Part Time position (2 weeks prorated) After two (2) years of continuous service (3 weeks prorated) After seven (7) years of continuous service (4 weeks prorated) After twelve (12) years of continuous service (5 weeks prorated) After seventeen {17) years of continuous service (6 weeks prorated) Once an employee has reached the maximum accrual level of 300 hours, no additional vacation time may be accrued until after some portion of accrued vacation time is used. Earned vacation days are not paid in lieu of not taking time off. If an employee is terminated the accrued vacation will be paid off up to the maximum accrual level. Total accrued benefits at June 30, 2017 were $1,259,

13 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE A- GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Sick Leave Policy Regular full time and part time employees are eligible to use their accrued sick time after ninety (90) days of continuous employment. Full time and part time active employees will earn sick time for each hour they are paid wages based upon the following table: Type of Employee Salaried I Exempt employees Hourly I Non-Exempt employees Hourly I Non-Exempt employees (receiving salaried benefits) Accrual Rate Per Hour hours per hour worked hours per hour worked hours per hour worked The maximum sick balance is 200 hours. Once an employee has reached the maximum accrual level, no additional sick time will accrue until after some portion of the accrued sick time has been used. At the close of the final payroll of each calendar year, any employee who has a sick balance of 40 hours or greater will have 16 hours of sick time converted from their sick balance to their vacation balance. If the vacation balance is at the maximum level, then the sick time cannot be converted. Accumulated sick leave benefits are not recognized at fiscal year-end as liabilities of CDI because the payment of such benefits is not probable or estimable. Donated Materials and Services Donated materials and services are reflected as contributions in the accompanying statement of activities at their estimated values at the date of receipt. Allocation of Expenses Continuing Development Inc. reviews and updates its cost allocation plan annually. Continuing Development Inc. allocates its costs based on the relative benefits received by the programs or activities. Accordingly, the organization applies several methods for allocating costs: Direct Costs. Costs identified 1 00 percent to a specific program are charged directly to that program. Shared Direct Costs. Costs identified to specific multiple programs or activities are shared between the programs benefiting. Programs primarily use child days of enrollment and monthly enrollment numbers as the basis for allocations. 11

14 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE A- GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes The Agency is exempt from Federal and State income tax under Section 501 (c)(3) of the Internal Revenue Code, and Section (d) of the State of California Revenue and Taxation Code. Summarized Information for 2016 The financial information for the year ended June 30, 2016, is presented for comparative purposes only, and is not intended to be a complete financial statement presentation. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Organization's financial statements for the year ended June 30, 2016, from which the summarized information was derived. NOTE B -TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets are part of the net assets of CDI resulting from contributions and other inflows of assets whose use by CDI is limited by donor imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of CDI pursuant to those stipulations. At June 30, 2017, there were the following temporarily restricted net assets: Quality Rating Improvement System Contracts $ 268,494 NOTE C- NET ASSETS RELEASED FROM DONOR RESTRICTIONS Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes or by occurrence of other events specified by donors. For the year ended June 30, 2017, there were no net assets released from donor restrictions: 12

15 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE D - GRANTS RECEIVABLE At June 30, 2017, grants and accounts receivable consisted of the following: Grants and School District Receivable: Direct CDE Contracts $ School Districs Child and Adult Care Food Program Total Grants and School District Reivable $ 1,637, , ,336 2,320,507 Accounts Receivable 1, 1 07,571. Total Grants, School District and Accounts Receivable $ 3,428,078 =========== NOTE E - PROPERTY AND EQUIPMENT At June 30, 2017, property and equipment consisted of the following: Accumulated Net Book Cost Deereciation Value Leasehold Improvements $ 37,344 $ 34,064 $ 3,280 Equipment 3,105,570 3,105,570 Portables 818, ,132 Vehicles 25,300 25,300 Furnishings 27,000 27,000 $ 4,013,346 $ 4,010,066 $ 3,280 Total depreciation expense for the year ended June 30, 2017 was $ 46,260 charged directly to expense. Included above are portable buildings under capital lease with an asset value of $818,132 and accumulated depreciation of $818,132 at June 30, NOTE F - RESERVE ACCOUNT Child care contractors with the California Department of Education (CDE) are allowed, with prior CDE approval, to maintain a reserve account from earned but unexpended child development contract funds for three types of programs: Center Based, Resource and Referral, and Alternative Payment. Transfers from a reserve account are considered restricted income for child development programs, but may be applied to any of the contracts that are eligible to contribute to that particular program type. 13

16 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE F - RESERVE ACCOUNT- (Continued) CDI maintains two reserve accounts for their Center Based and Alternative Payment contracts, and funds are deposited into an interest bearing account. The reserve accounts balances at June 30, 2017 were $522,986 and $3,928, respectively, which is recorded as an asset in the cash account. Also, upon termination of all child development contracts with CDE, CDI would have to return the reserve funds to CDE, so the reserve account is recorded as a reserve in the amount of $526,917. The reserve account balance includes interest of $399 that the bank paid on the account balances during the year ended June 30, NOTE G - TRANSFERS Transfers primarily represent the utilization of unrestricted funds to cover restricted operating deficits or other transfers approved by the Board of Directors. NOTE H - EMPLOYEE RETIREMENT PLAN As indicated in Note J, CDI employees are eligible to participate in a group retirement annuity plan which allows participants to make tax deferred investment contributions. The plan qualifies under the provisions of Section 401 (k) of the Internal Revenue Code. Total employer contributions were $15,323. NOTE I- CHILD AND ADULT CARE FOOD PROGRAM The contractor had two nutrition agreements with CDE for Child and Adult Care Food Programs, as reported in the Schedule of Expenditures of Federal and Other Governmental Awards. However, no nutrition audit report schedules are included in the audit because (1) the contractor did not request reimbursement of audit costs; and (2) the audit is not a programspecific nutrition audit. Child Development Centers (CDC) is affiliated with CDI through a common Board of Directors and the utilization of a common management services company. CDI subcontracts a portion of its child care services to CDC. As a result of this participation, CDC received $125,601 in Child and Adult Care Food Program revenue earned through COl's contract with California Department of Education. 14

17 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE J- AFFILIATED ORGANIZATIONS Child Development Centers (CDC) is a nonprofit public benefit corporation that is affiliated with CDI through a common Board of Directors and the utilization of a common management services Company. CDC participates in CDI contracts. All of the financial information relating to CDC programs are reported on the books and in the audit report for CDC only. CDC has elected not to show consolidated financial statements. However, a summary of the financial data of CDC is as follows: Child Development Centers Year Ended June 30, 2017 Tota I Assets Total Liabilities Total Ending Net Assets Total Revenue and Support Total Expenses Current Year's Change in Net Assets $ 7,430,469 3,732,642 3,697,827 31,133,696 30,504,396 $ 629,300 Child Development, Inc. (CHILD) is a for-profit California subchapter S corporation. CHILD provides managerial services and resource assistance to help render child development services on behalf of CDI. There is no common control of management between CDI and CHILD. However, there are two interrelated transactions. 1) CHILD sponsors a 401 (k) plan for its employees. Employees of CDI are also eligible to participate in this plan at the expense of CDI. 2) In the ordinary course of business, CDI leased one building and 36 portable buildings from CHILD. Rent expense incurred on these lease agreements for the year ended June 30, 2017 was$ 823,

18 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE J- AFFILIATED ORGANIZATIONS- (Continued) CHILD has elected not to show consolidated financial statements. However, a summary of the financial data of CHILD is as follows: Child Development, Inc. Twelve Months Ended June 30, 2017 Tota I Assets $ 17,108,822 Total Liabilities 11,289,988 Total Ending Net Assets 5,818,834 Total Revenue and Support $ 31,822,509 Total Expense 29,892,324 Current Year's Net Income $ 1,930,185 NOTE K- COMMITMENTS AND CONTINGENCIES Commitments COl conducts administrative and program operations at various leased facilities. Future minimum payments under cancelable operating leases are as follows: Year Ending June 30, Thereafter $ 2,021,833 1,826,089 1,523,751 1,034,022 1,034,022 7,439,717 Total rent expense for the year ended June 30, 2017 was$ 2,723,

19 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE K- COMMITMENTS AND CONTINGENCIES- (Continued) Commitments- (Continued) CDI has various copier leases and maintenance contracts. Future minimum payments under non-cancelable copier leases and maintenances are as follows: Contingencies Copier Lease future minimum payments: Year Ending June 30, 2018 $ 83, , , Thereafter $ 181,958 Grant awards require the fulfillment of certain conditions as set forth in the instruments of grant. Failure to fulfill the conditions could result in the return of the funds to the grantors. CDI deems this contingency remote since, by accepting the grants and their terms, it has accommodated the objectives of the organization to the provisions of the grants. COl's management is of the opinion that the organization has complied with the terms of all grants. Continuing Development, Inc is subject to legal proceedings and claims that arise in the ordinary course of business. There is a range of possible outcomes for all legal matters in which Continuing Development, Inc is involved. Continuing Development, Inc does not believe any of the legal matters if adversely decided, are likely to have a material adverse effect on the Agency. Continuing Development, Inc.'s belief is based on the amounts involved and the types of litigation, and their current insurance coverage. The Agency is currently being audited by the California Department of Education. Assertations have been made by the state and the Company has responded to their comments providing them with the documentation requested. The California Department of Education has notified the agency, that fiscal year contracts are on Conditional Contract Status (GSA). The GSA included payment for amounts without appeal rights totaling approximately $8.8M, which the state agreed to suspend and waive payment until the appeal is heard by the Office of Administrative Hearings and such amounts are determined subject to recoupment. The Agency believes that the evidence presented, during the appeal process, will relieve the company of any amounts due to the state. 17

20 CONTINUING DEVELOPMENT, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) NOTE K- COMMITMENTS AND CONTINGENCIES - (Continued) Open Tax Years The Agency files information tax returns in the US and California. With few exceptions, the Agency is no longer subject to US federal and State of California income tax examinations by tax authorities for years before NOTE l-subsequent EVENTS The Agency has evaluated their financial position and activities from the June 30, 2017 year end of this report through November 14, 2017 which is the date that the financial statements 'vvere available to be issued. No materia! subsequent event items that required recognition or disclosure were identified. 18

21 ADDITIONAL INFORMATION

22 CONTINUING DEVELOPMENT, INC. SCHEDULE OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE Federal Entity Grantor I Pass-Through Grantor I CFDA Identifying Grant Award Amount Revenue Earned I Expenditures or Program Title Number Number Federal State Total Federal State Total U.S. De1:1artment of Agriculture: Pass-Through Program From: California DeQartment of Education- Child and Adult Care Food Program (Note J) $ 1,829,745 $ - $ 1,829,745 $ 1,829,745 $ - $ 1,829,745 Child and Adult Care Food Program - HOMES ,512,275 1,512,275 1,512,275 1,512,275 $ 3,342,020 $ - $ 3,342,020 $ 3,342,020 $ - $ 3,342,020 U.S. De1:1artment of Health & Human Services: Pass-Through Program From: California DeQartment of Education- Alternative Payment CAPP-6060 $ 582,776 $ 454,565 $ 1,037,341 $ 582,776 $ 454,565 $ 1,037,341 Alternative Payment - Stage 2 -- C2AP ,006,657 1,006,657 1,006,657 1,006,657 Alternative Payment- Stage C3AP ,573 93,961 99,534 5,573 93,961 99,534 Alternative Payment - Stage C3AP , , , ,045 Child Care Initiative Project CCIP ,000 1,112 11,112 10,000 1,112 11,112 Child Care Initiative Project CCIP ,000 2,444 24,444 22,000 2,444 24,444 General Child Care Center CCTR ,903,576 8,033,390 11,936,966 3,903,576 6,782,500 10,686,076 General Child Care Center CCTR ,793,014 1,793,014 1,793,014 1,793,014 Child Health Safety & Training CHST Child Health Safety & Training CHST ,046 1,900 3,946 2,046 1,900 3,946 Migrant Child Care -- CMIG ,933,824 1,933,824 1,929,866 1,929,866 Migrant Specialized Services -- CMSS , , , ,575 Migrant Child Care CMIG , , , ,080 Migrant Specialized Services -- CMSS , ,262 66,753 66,753 Family Literacy Support -- CPKS ,000 5,000 4,901 4,901 Resource & Referral CRRP , , ,423 53, , ,779 Resource & Referral CRRP , , ,304 12, , ,304 State Preschool CSPP ,076,513 14,374,583 15,451,096 1,076,513 10,947,319 12,023,832 State Preschool CSPP , , , ,470 Ventura County Office of Education- State Preschool - VCOE -- CSPP , , , ,707 Elk Grove Unified School District- General Child Care Center - EGUSD CCTR , , , , , ,218 General Child Care Center- EGUSD CCTR , , , ,384 Placer County Office of Education- State Preschool - PCOE -- CSPP ,186 39,186 5,090 5,090 $ 8,758,439 $ 28,469,457 $ 37,227,896 $ 8,758,439 $ 23,528,645 $ 32,287,084 Total Federal and State Awards $ 12,100,459 $ 28,469,457 $ 40,569,916 $ 12,100,459 $ 23,528,645 $ 35,629,104 Note 1. Basis of Presentation: The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of Continuing Development, Inc., and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Programs (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2. De Minimis Cost Rate: N 0 The Agency did not use the 10% de minimis cost rate within their financial statements.

23 CONTINUING DEVELOPMENT INC COMBINING STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 (With Comparative Totals for 2016) Direct School Center CDE District Private Pay I Total All Programs Programs Subcontracts General/ Others REVENUES California Dept of Education $ 30,955,685 $ - $ - $ 30,955,685 $ 31,002,769 California Dept of Education - Reserves 628, ,100 School Districts - 1,331, ,499 2,001,898 2,128,529 Child and Adult Care Food Program 2,934,009 79, ,663 3,140,024 3,342,020 Program Fees: Certified 1,396,100 74,362 15,751 1,486,213 1,411 '192 Non-Certified 8,803, ,229 5,236,115 14,494,147 14,097,060 Investment Income Other Revenue 122,599 1, , ,687 1,235,092 Net Assets Released from Donor Restrictions Total Revenue 44,840,296 1,940,347 6,915,111 53,695,754 45,236,514 EXPENSES Salaries - Certified 18,813, ,500 2,654,933 22,341,990 21,862,843 Salaries - Classified 2,860,804 85, ,283 3,934,492 4,063,364 Payroll Taxes 1,916,239 88, ,431 2,342,004 2,337,337 Employee Benefits 3,054, , ,940 3,626,884 3,937,475 Supplies 3,037, , ,304 3,693,798 4,322,737 Postage and Printing 105,346 5,768 12, , ,148 Personal Service Contracts 6,342, ,555 1,042,294 7,727,575 7,648,356 Provider Payments 3,490,256-3,490,256 3,263,314 Travel 124,452 4,447 32, , ,168 Training 54,201 2,643 18,902 75,746 93,550 Insurance 115,837 5,713 16, , ,511 Rent 2,341,975 79, ,056 2,919,896 2,949,317 Occupancy 1 '187,517 47,867 69,857 1,305,241 1,332,518 Telephone 296,204 15,331 81, , ,040 Equipment & Capital Purchases 114,403 5,043 38, , ,210 Repairs and Maintenance 241,717 3,541 6, , ,919 Legal Expenses 54,610 Depreciation Interest Expense Contributions Other Expenses 221,553 9, , , ,511 Total Expenses 44,318,796 1,840,361 6,895,457 53,054,614 45,066,465 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 521,500 $ 99,986 $ 19,654 $ 641,140 $ 170,049 I\) _,

24 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 20'17 Subtotal Center Subtotal Migrant Subtotal Resource Based Programs Programs & Referral Page 23 Page 25 Page 26 Subtotal Alternative Subtotal Other Payment Programs Total Direct Page 27 Page 28 CDE Programs REVENUES California Dept. of Education California Dept. of Education -Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue Net Assets Released from Donor Restrictions Total Revenue $ 25,002,293 $ 3,026,274 $ 340,985 $ 624,947 1,414,857 6,877 1,209,894 75,711-8,799,522 4,281-81,089 6,408 5,606 37,132,602 3, ,591 2,550,577 $ 35,556 $ 30,955,685 3, ,100 1,512,275 2,934, ,495 1,396,100 8,803,803 5,600 23, ,599 4,182,100 59,452 44,840,296 EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses 17,142,247 1,671,310 1,897, , ,047 1,677, ,356 15,864 2,755, ,568 31,907 2,747, ,974 23,029 89,336 3,872 2,984 5,883, ,608 (390) 95,753 9,175 2,384 45,930 5, ,197 5, ,209,555 47,800 36,063 1,085,401 78,934 6, ,156 19,179 12,500 98,106 11,592 1, ,913 57, ,309 1,662 1,582 36,488,015 3,120,328_ 343,383 18,813, ,976 38,608 2,860,804 41,021 2,498 1,916,239 94,439 (612) 3,054,575 6,622 5,145 3,037,434 8, ,346 68,788 1,752 6,342,726 3,490,256 3,490,256 16, ,452 1, , ,837 44,528 4,029 2,341,975 15,277 1,420 1,187,517 12,987 1, ,204 3, , ,717 1, ,553 4,311,322 55,748 44,318,796 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 644,587 $ (777) $ 3,208 $ (129,222) $ 3,704 $ 521,500 N N

25 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE REVENUES California Dept. of Education California Dept. of Education - Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue Net Assets Released from Donor Restrictions Total Revenue EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses EXCESS OF REVENUE OVER/(UNDER)EXPENSES General Child Care Preschool CCTR6267 CSPP 6533 $ 12,479,090 $ 12,518,302 $ 624, , , , ,020 8,242, ,826 11,926 5,032 22,707,648 14,355,922 9,920,621 7,201,707 1,072, , , ,508 1,568,489 1,185,795 1,715, ,349 56,179 33,157 3,969,568 1,912,300 61,060 34,625 28,624 16,446 70,688 38,509 1,430, , , , ,732 87,424 58,397 32, ,721 49, ,172 35,010 22,064,251 14,354,732 $ 643,397 $ 1,190 $ Family Literacy Subtotal Center CPKS 6096 ORIS Based 4,901 $ $ 25,002, ,947-1,414,857-1,209,894-8,799,522 64,131 81,089 4,901 64,131 lz, 132,602 1,958 17,961 17,142, ,897, ,207 1,677, ,755,273 2,730 32,341 2,747, ,336-2,100 5,883, , , ,197-2,209,555 1,085, ,156-6,947 98, , ,309 4,901 64,131 36,488,015 - $ - $ 644,587 N w

26 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE Orange Sacramento First 5 San County Dept County Office Joaquin of Education of Education - County QRIS QRIS QRIS Solano County Ventura County Office of Office of Education- Education- QRIS QRIS Total QRIS REVENUES California Dept. of Education California Dept. of Education - Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue Total Revenue $ $ - $ ,228 8, ,228 8,474 $ - $ $ 1,830 4,231 64,131 1,830 4,231 64,131 EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses 16, , ,633 8,474-2, , ,228 8,474-1,559 17, , ,830 2,285 32,341 2, , ,830 4,231 64,131 EXCESS OF REVENUE OVER/(UNDER)EXPENSES $ $ $ - - $ - $ $ 1\.) -""'

27 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30,2017 State Migrant Migrant Spec. Serv. State Migrant CMIG 6013 CMSS 6013 CMIG 6014 State Spec. Serv. CMSS 6014 Subtotal Migrant Programs REVENUES California Dept. of Education California Dept. of Education - Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue Total Revenue EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 1,929,866 $ 276,575 $ 753,080 $ 4,083 2,794 55,899 19,812 3,115 1,166 5, ,998, , ,560 1,052, , , ,486 15,567 55, ,896 19, '180 89,836 7,363 74, ,318 25,050 52,200 2, ,040 29,270 65,178 6, ,567 3, ,318 1,194 12,824 34,976 53, ,038 12,378 6,801 6,239 3,724 1,629 54,597 2, ,996, , ,212 $ 2,441 $ (3,566) $ 348 $ 66,753 $ 3,026,274 6,877 75,711 4,281 6,408 66,753 3,119,551 28,690 1,671,310 17, ,466 3, ,356 1, , ,974 3,872 14, ,608 9, ,269 5,512 47,800 78,934 19,179 11,592 57, ,662 66,753 3,120,328 - $ (777) N 01

28 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 Resource & Referral CRRP 6053 Resource & Referral CHST6053 CCDF Hlth & CCDF Hlth & Subtotal Safety Safety Resource & CRRP6054 CHST6054 Referral REVENUES California Dept. of Education California Dept. of Education - Reserves School Districts Child and Adult Care Food Program Program Fe~s: Certified Non-Certified Investment Income Other Revenue Total Revenue EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 155, , , , , ,149-1, ,748-2,588-6, , $ (20) $ 30 $ 180,304 3, ,985 5,576-5, ,880 3, , , ,047 8, ,864 31, ,907 8,250 2,662 23,029 2,049-2,984 (13,539) - (390) 1,235-2, ,315-36,063 3,897 6,485 6,389-12,500 1,436-1, , ,673 3, ,383 3,207 $ (9) $ 3,208 N 0'>

29 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 Alternative Alternative Pymt Alternative Pymt Payment Stage 2 Stage 3 CAPP 6060 C2AP 6053 C3AP 6053 Child Care Food Program DCH Subtotal Alternative Payment REVENUES California Dept of Education California Dept of Education - Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue Total Revenue EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses EXCESS OF REVENUE OVER/{UNDER)EXPENSES $ 1,037,341 $ 1,006,657 $ 506,579 $ 3, ,698 33,203 43, ,071,039 1,043, ,173 67, ,518 67,231 5,427 10,684 5,730 21,959 16, ,217 2, ,692 1, ,148 1,636 20, , , ,141 1, ' ,108 9,499 6,049 3,258 3,554 2,280 3,490 3,416 2,013 1, ,074,952 1,044, ,219 $ (3,913) $ (1,463) $ (10,046) $ - $ 2,550,577 3,153 1,512,275 1,512, ,495 5,600 5,600 1,517,875 4,182, , ,976 19,180 41,021 55,192 94,439 1,393 6,622 1,803 8,933 (19,221) 68,788 1,294,222 3,490,256 13,605 16, , ,872 44,528 6,185 15,277 4,068 12,987 3, ,975 1,631,675 4,311,322 (113,800) $ (129,222) N -...j

30 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 CCDF Infant I CCDF Infant I Toddler Toddler CCIP 6054 CCIP 6053 REVENUES California Dept. of Education $ 24,444 $ 11,112 California Dept. of Education - Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue 18,464 5,432 Total Revenue 42,908 16,544 EXPENSES Salaries - Certified Salaries - Classified 29,220 9,388 Payroll Taxes 1, Employee Benefits (719) 107 Supplies 3,308 1,837 Postage and Printing 221 Personal Service Contracts 1, Provider Payments Travel Training Insurance Rent 1,653 2,376 Occupancy 1, Telephone Equipment & Capital Purchases 39 Repairs and Maintenance 19 Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses 39,584 16,164 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 3,324 $ 380 Subtotal Other Programs $ 35,556 23,896 59,452 38,608 2,498 (612) 5, , ,029 1,420 1, ,748 $ 3,704 28

31 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE Ventura County OE CSPP 6637 Elk Grove General CCTR 6184 Placer County CSPP 6340 Total for School Districts REVENUES California Dept. of Education $ $ $ California Dept. of Education - Reserves School Districts 374, ,602 5,090 Child and Adult Care Food Program 12,775 65, Program Fees: Certified 74, Non-Certified 394,430 59,799 Investment Income Other Revenue 1,005 Total Revenue 387,482 1,486,902 65,963 EXPENSES Salaries - Certified 215, ,515 41,676 Salaries - Classified 20,140 64,142 1 '123 Payroll Taxes 22,936 60,674 4,724 Employee Benefits 25, ,742 9,295 Supplies 37,767 89,045 6,248 Postage and Printing 1,220 3, Personal Service Contracts 53, ,712 (356) Provider Payments Travel 895 3, Training 753 1, Insurance 300 5,413 Rent 5,501 68,266 6,098 Occupancy 1,360 43,850 2,657 Telephone 2,429 12, Equipment & Capital Purchases 891 4,147 5 Repairs and Maintenance (793) 4,394 (60) Legal Expenses Depreciation Interest Expense Contributions Other Expenses 242 9, Total Expenses 387,481 1,380,099 72,781 $ 1,331,399 79,352 74, ,229 1,005 1,940, ,500 85,405 88, , ,060 5, ,555 4,447 2,643 5,713 79,865 47,867 15,331 5,043 3,541 9,920 1,840,361 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 1 $ 106,803 $ (6,818) $ 99,986 29

32 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 Subtotal Other Preschool Total Center Private Pay I Other Privates Total Center Private Pay I General I Others REVENUES California Dept. of Education $ $ California Dept. of Education - Reserves School Districts 670,499 Child and Adult Care Food Program 21, ,301 Program Fees: Certified 9,939 5,812 Non-Certified 5,236,115 Investment Income Other Revenue ,058 Total Revenue 701,825 6,213,286 EXPENSES Salaries - Certified 360,033 2,294,900 Salaries - Classified 43, ,752 Payroll Taxes 36, ,833 Employee Benefits 62, ,260 Supplies 46, ,737 Postage and Printing 1,947 10,384 Personal Service Contracts 113, ,417 Provider Payments Travel 2,756 30,191 Training ,961 Insurance ,675 Rent 17, ,672 Occupancy 6,447 63,410 Telephone 2,824 78,989 Equipment & Capital Purchases 1,893 36,320 Repairs and Maintenance (253) 7,219 Legal Expenses Depreciation Interest Expense Contributions Other Expenses 1, ,209 Total Expenses 699,528 6,195,929 $ 670, ,663 15,751 5,236, ,083 6,915,111 2,654, , , , ,304 12,331 1,042,294 32,947 18,902 16, ,056 69,857 81,813 38,213 6, ,536 6,895,457 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 2,297 $ 17,357 $ 19,654 30

33 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 Ventura County Children & Rio School Oxnard School Hueneme Fam. First Total Other District District Elementary SD Commission Preschool REVENUES California Dept. of Education $ $ $ - $ $ California Dept. of Education - Reserves School Districts 60,750 94, , , ,499 Child and Adult Care Food Program 2,603 2,564 1,635 14,560 21,362 Program Fees: Certified 1,574 8,365-9,939 Non-Certified Investment Income Other Revenue Total Revenue 64, , , , ,825 EXPENSES Salaries - Certified 32,274 55,780 56, , ,033 Salaries - Classified 3,114 5,479 6,135 28,803 43,531 Payroll Taxes 3,365 5,622 5,680 21,931 36,598 Employee Benefits 4,910 6,083 8,962 42,725 62,680 Supplies 8,651 6,597 5,064 26,255 46,567 Postage and Printing ,120 1,947 Personal Service Contracts 10,593 21,213 21,278 60, ,877 Provider Payments Travel ,806 2,756 Training Insurance Rent 1,008 1,006 1,115 14,255 17,384 Occupancy 292 1, ,806 6,447 Telephone ,473 2,824 Equipment & Capital Purchases ,076 1,893 Repairs and Maintenance (145) (252) (280) 424 (253) Legal Expenses Depreciation Interest Expense Contributions Other Expenses , Total Expenses 65, , , , ,528 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ (141) $ 1, $ 1,836 $ (453) $ 2,297 w

34 CONTINUING DEVELOPMENT INC CONTRACT STATEMENT OF REVENUE AND EXPENSE YEAR ENDED JUNE 30, 2017 Riverside Healthier Kids Santa Clara County Foundation Superior Court Courts San Total Center Bernardino Private Pay I Courts Private Pay Other Privates REVENUES California Dept. of Education California Dept. of Education - Reserves School Districts Child and Adult Care Food Program Program Fees: Certified Non-Certified Investment Income Other Revenue Total Revenue $ - $ - $ , , ,945 76, , ,945 $ - $ - $ - 105, ,301-5,812 5,812 5,236,115 5,236, , , , ,385 5,478,954 6,213,286 EXPENSES Salaries - Certified Salaries - Classified Payroll Taxes Employee Benefits Supplies Postage and Printing Personal Service Contracts Provider Payments Travel Training Insurance Rent Occupancy Telephone Equipment & Capital Purchases Repairs and Maintenance Legal Expenses Depreciation Interest Expense Contributions Other Expenses Total Expenses 2, ,460 93, ,795 6,038 8,216 23,837 (3,540) 28,091 42,753 5,454 11, ,951 6,286 26, , ,964 3,261 4, , , , ,486 1,400 2,290,595 2,294,900 94, , ,752 9, , ,833 10, , ,260 6, , , ,199 10,384 9, , ,417 2,254 18,674 30, ,783 17, ,424 15,675 2, , ,672-63,410 63, ,986 78,989 1,965 34,273 36,320-7,219 7, , , ,871 5,440,796 6,195,929 EXCESS OF REVENUE OVER I (UNDER) EXPENSES $ 11,138 $ (11,912) $ (8,541) $ (11,486) $ 38,158 $ 17,357 (;.) N

35 RANDOLPH SCOTT & COMPANY FlED PUBLIC ACCOUNTANTS, INC. Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditors' Report November 14, 2017 Board of Directors Continuing Development, Inc. San Jose, California We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of Continuing Development, Inc., which comprise the statement of financial position as of June 30, 2017, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated November 14, Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Continuing Development, Inc.'s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Continuing Development, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of Continuing Development, Inc.'s internal control. A deficiency if7 internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. NORTHERN CALIFORNIA- 1 COMMERCIAL BLVD., SUITE 101, NOVATO, CA (415) SOUTHERN CALIFORNIA SANTA MONICA BLVD., BEVERLY HILLS, CA (888) /RSCOCPAS.COM Members of American Institute and California Society of Certified PubliC Accountants, The Center for Public Company Audit Firms and Governmental Audit Quality Center

36 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether Continuing Development, Inc.'s financial statements are free ot material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Certified Public Accountants, Inc. Novato, California RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certified Public Accountants and SEC Practice Sect ron 34

37 RANDOLPH SCOTT & COMPANY CERTIFIED PUBLIC ACCOUNTANTS, INC. Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance Independent Auditors' Report November 14, 2017 Board of Directors Continuing Development, Inc. San Jose, California Report on Compliance for Each Major Federal Program We have audited Continuing Development, Inc.'s compliance with the types of compliance requirements described in the Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of Continuing Development, Inc.'s major federal programs for the year ended June 30, Continuing Development, Inc.'s major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an op1n1on on compliance for each of Continuing Development, Inc.'s major federal programs based on our audit of the type of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Continuing Development, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. NORTHERN CALIFORNIA 1 COMMERCIAL BLVD., SUITE 101, NOVATO, CA (415) SoUTHERN CALIFORNIA SANTA MONICA BLVD., BEVERLY HILLS, CA (888) /RSCOCPAS.COM Members of American Institute and California Society of Certified Public Accountants, The Center for PubliC Company Audit cirms and Governmental Audit Quality Center

38 Report on Compliance for Each Major Federal Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Continuing Development, Inc.'s compliance. Opinion on Each Major Federal Program In our opinion, Continuing Development, Inc. complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, Report on Internal Control Over Compliance The management of Continuing Development, Inc. is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered Continuing Development, Inc.'s internal control over compliance with the types of requirements that could have a direct and material effect on a each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Continuing Development, Inc.'s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material non compliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certified Public Accountants and SEC Practice Section 36

39 Report on Compliance for Each Major Federal Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Certified Public Accountants, Inc. Novato, California.. RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certified Publrc Accountants and SEC Practice Section 37

40 SUPPLEMENTAL REPORTING REQUIREMENTS OF THE CALIFORNIA DEPARTMENT OF EDUCATION

41 CONTINUING DEVELOPMENT, INC. GENERAL INFORMATION YEAR ENDED JUNE 30, 2017 Agency name: Address of Agency: Type of Agency: State Department of Education Contract numbers: Continuing Development, Inc. 20 Great Oaks Boulevard San Jose, CA CA Nonprofit Public Benefit Corporation CAPP-6060 C2AP-6055 C3AP-6053 CCIP-6053 CCIP-6054 CCTR-6267 CHST-6053 CHST-6054 CMIG-6013 CMIG-6014 Alternative Payment Alternative Payment - Stage 2 Alternative Payment - Stage 3 Child Care Initiative Project Child Care Initiative Project General Child Care Center CCDF Health & Safety CCDF Health & Safety Mirgrant Child Care Mirgrant Child Care CMSS-6013 CMSS-6014 CPKS-6096 CRRP-6053 CRRP-6054 CFPM-3074 CSPP Migrant Special Services Migrant Special Services Family Literacy Support Resource & Referral Resource & Referral Renovation & Repair State Preschool CACFP - Centers CACFP - Day Care Homes President: Susan Dumars Report period: Number of days operating: Scheduled hours of operation Fiscal year ended June 30, 2017 Varies Varies 39

42 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 Subtotal Center Based Subtotal Subtotal Subtotal Migrant R&R AP ~total her Total CDE EXPENDITURES Pa e41 Pa e42 Pa e 43 Pa e 44 e45 Contracts Direct payments to providers $ Certificated salaries - 17,124,286 $ - $ - $ 3,490,256 1,528, $ - - $ 3,490,256 18,652, Classified salaries 1,897, , , ,976 38,608 2,850, Employee benefits 4,429, ,935 47, ,460 1,886 4,944, Books and supplies 2,895, ,121 27,510 18,724 5,405 3,143, Services and other operating expenses 6100/6200 Other approved capital outlay 10,077, ,719 60, ,906 9,849 10,883, New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses - service level exemption (a) 290, ,074 Indirect costs (b) Total expenses claimed for reimbursement (c) 36,423,884 3,120, ,383 4,311,322 55,748 44,254,665 Supplemental expenses Total Expenditures $ 36,423,884 $ 3,120,328 $ 343,383 $ 4,311,322 $ 55,748 $ 44,254,665 Notes: (a) Start-up expenses are composed of groups 1000 to (b) This is the indirect charged by the school district. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible.for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions. ~ 0

43 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 EXPENDITURES General Family Subtotal Child Care Preschool Literacy Center Based CCTR-6267 CSPP-6533 CPKS-6096 Pro rams Direct payments to providers $ - $ - $ - $ 1000 Certificated salaries 2000 Classified salaries 3000 Employee benefits 4000 Books and supplies 5000 Services and other operating expenses 6100/6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses- service level exemption (a) Indirect costs (b) Total expenses claimed for reimbursement (c) Supplemental expenses 9,920,1621 1,072,1631 2,526,130 1,829,820 6,715,049 22,064,251 7,201, ,476 1,903,303 1,063,268 3,361,978 14,354,732 1, ,730-4,901 17,124,286 1,897,107 4,429,646 2,895,818 10,077,027 36,423,884 Total Expenditures $ 22,064,251 $ 14,354,732 $ 4,901 $ 36,423,884 Notes: (a) No start-up expenses (b) This is the indirect charged by the school district. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions. +:>.,

44 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 EXPENDITURES State Migrant CMIG 6013 Migrant State Spec. Serv. Migrant CMSS 6013 CMIG 6014 State Spec. Serv. CMSS 6014 Subtotal Migrant Pro rams Direct payments to providers $ Certificated salaries 2000 Classified salaries 3000 Employee benefits 4000 Books and supplies 5000 Services and other operating expenses 6100/6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses- service level exemption (a) Indirect costs (b) Total expenses claimed for reimbursement (c) Indirect costs (b) Total Expenditures $ - 909, , , , , ,074 1,996,222 1,996,222 $ - $ - 177, ,389 15,567 55,543 26, ,102 29,009 54,641 30, , , ,212 $ 280,141 $ 777,212 $ - $ 28,690 1,528,092 17, ,387 5, , ,121 14, , ,074 66,753 3,120,328 $ 66,753 $ 3,120,328 Notes: (a) Start-up expenses are composed of groups 1000 to (b) This is the indirect charged by the school district. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions. ~ N

45 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 Resource & CCDF Resource & Referral H lth & Safety Referral EXPENDITURES CRRP 6053 CHST6053 CRRP6054 CCDF Hlth & Safety CHST6054 Subtotal Resource & Referral Direct payments to providers $ - $ - $ Certificated salaries 2000 Classified salaries 92, , Employee benefits 7, , Books and supplies 13, , Services and other operating expenses 42, , /6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses - service level exemption (a) Indirect costs (b) Total expenses claimed for reimbursement (c) 155, ,673 Supplemental expenses Total Expenditures $ 155,799 $ 956 $ 182,673 $ - $ , ,771 2,662 27, ,055 3, ,383 $ 3,955 $ 343,383 Notes: (a) No start-up expenses (b) This is the indirect charged by the school district. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing Jaws, regulations, and contract provisions..j::.. w

46 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 Alternative Alternative Pymt Alternative Pymt Payment Stage 2 Stage 3 EXPENDITURES CAPP 6060 C2AP 6055 C3AP 6053 CCFP- DCH and Ex ansion Subtotal Alternative Pa ment Direct payments to providers $ 886, ,092 $452, Certificated salaries 2000 Classified salaries 67, ,518 67, Employee benefits 27,386 27,204 6, Books and supplies 8,142 4,848 2, Services and other operating expenses 85,427 20,814 31, /6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses- service level exemption (a) Indirect costs (b) Total expenses claimed for reimbursement (c) 1,074,952 1,044, ,219 Supplemental expenses Total Expenditures $ 1,074,952 $ 1,044,476 $ 560,219 1,294,222 $ 235,031 74,372 3,196 24,854 1,631,675 $ 1,631,675 $ 3,490, , ,460 18, ,906 4,311,322 4,311,322 Notes: (a) No start-up expenses (b) This is the indirect charged by the school district. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions...!:: -!:>-

47 CONTINUING DEVElOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 EXPENDITURES CCDF Infant/ Toddler CCIP 6054 CCDF Infant/ Toddler CCIP 6053 ~total her rams Direct payments to providers Certificated salaries 2000 Classified salaries 3000 Employee benefits 4000 Books and supplies 5000 Services and other operating expenses 61 00/6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses- service level exemption (a) Indirect costs (b) Total expenses claimed for reimbursement (c) Supplemental expenses Total Expenditures $ 39,584 $ 16,164 $ 55,748 $ - $ - 29,220 1,246 3,568 5,550 39,584 - $ - 9,388 38, ,886 1,837 5,405 4,299 9,849 16,164 55,748 Notes: (a) No start-up expenses (b) This is the indirect charged by the school district. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the. original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions. ~ (J1

48 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EQUIPMENT EXPENDITURES AND SCHEDULE OF EXPENDITURES FOR BUILDINGS AND IMPROVEMENTS YEAR ENDED JUNE 30, 2017 Equipment Total Expendiures UNIT COST UNDER $7,500 PER ITEM - None. $ UNIT COST OVER $7,500 PER ITEM WITH PRIOR WRITTEN APPROVAL - None. UNIT COST OVER $7,500 PER ITEM WITHOUT PRIOR WRITTEN APPROVAL None. TOTAL EQUIPMENT EXPENDITURES $==== Buildings & Improvements UNIT COST UNDER $10,000 PER ITEM None. $ UNIT COST OVER $10,000 PER ITEM WITH PRIOR WRITTEN APPROVAL - None. UNIT COST OVER $10,000 PER ITEM WITHOUT PRIOR WRITTEN APPROVAL None. TOTAL BUILDING & IMPROVENTS $==== NOTE: Agency's capitalization threshold is $5,

49 CONTINUING DEVELOPMENT, INC. SCHEDULE OF ADMINISTRATIVE COSTS RELATING TO CALIFORNIA DEPARTMENT OF EDUCATION PROGRAMS FOR THE YEAR ENDED JUNE 30, 2017 Salaries: Certified Salaries Classified Salaries Employee Benefits Books and Supplies Services and Other Operating Expenses Depreciation or Use Allowance Total Administrative Costs General Migrant Child Care Child Care State Migrant State Center Preschool Migrant Spec. Serv. Migrant CCTR 6267 CSPP 6533 CMIG 6013 CMSS 6013 CMIG 6014 $ 1,087,442 $ 646,501 $ 96,464 $ 12,212 $ 23, ,576 74,014 11,319 1,069 3, , ,860 18,767 1,848 6, ,574 95,450 17,085 1,992 3, , ,806 39,347 2,113 8,049 $ 2,418,557 $ 1,288,631 $ 182,982 $ 19,234 $ 45,155 Migrant Spec. Serv. CMSS 6014 $ 4,046 2, ,061 $ 9,413..!:>. -..._J

50 CONTINUING DEVELOPMENT, INC. SCHEDULE OF ADMINISTRATIVE COSTS RELATING TO CALIFORNIA DEPARTMENT OF EDUCATION PROGRAMS FOR THE YEAR ENDED JUNE 30, 2017 Alternative Alternative CCDF Alternative Payment Payment Infant Payment Stage-2 Stage-3 Toddler CAPP 6060 C2AP 6055 C3AP 6053 CCIP 6054 Salaries: Certified Salaries $ - $ - $ - - Classified Salaries 3,868 3,780 2, Employee Benefits 1, Books and Supplies Services and Other Operating Expenses 55,971 24,672 15, Depreciation or Use Allowance $ CCDF Infant/ Toddler CCIP Total Administrative Costs $ 61,885 $ 29,353 $ 18, $ 371.,!:::.. co

51 CONTINUING DEVELOPMENT, INC. Schedule of Reimbursable Start-Up Expenses Year Ended June 30, 2017 Reimbursable Start-Up Expenses 1000 Certificated salaries 2000 Classified salaries 3000 Employee benefits 4000 Books and supplies 5000 Services/other operating expenses Subtotal $ State Migrant CMIG ,628 17,564 31,051 22,665 49, , /6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Total $ ==2=9=0,=0=74= 49

52 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs!Agency Name: Continuing Development, Inc. Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CCTR-6267 Independent Auditor's Name: Randolph Scott & ~or"~-'-~ CPA's Inc. COLUMN A COLUMN B ~~LUMNC COLUMN D COLUMN E SECTION I - CERTIFIED CHILDREN CUMULATIVE ADJUSTED DAYS AUDIT CUMULATIVE FISCAL ADJUSTMENT DAYS OF ENROLLMENT!FISCAL YEAR PER OF ENROLLMENT FORM CDFS 9500 ADJUSTMENTS YEAR PER AUDIT FACTOR PER AUDIT Infants (up to 18 months) Full-time-plus Full-time 3,3_43 ~~3 _ , Three-quar..,.,.,,,"' 1,506 1, , un"."""-'""" ~ FCCH Infants (up to 18 months) Full-time plus Full-time _ Three-qucu '"'.,-,i, '" Ullt:"llcto-lllllt: - - JQZQ Toddlers (18 up to 36 months) Full-time-plus , Full-time 17,J_Q6 Jl,_1_Q_6 _1_AOO 23, Three-quar,.,o.,-ti; oo" 3,794 3, , _,. i JQZQ Three Years and Older Full-time-plus 16,035 16, , Full-time 8~7 ~ _1_,000 88, Tho t:t: quaolt:o.,-do ot: 85,187 85, RM?!'iO One '"'''-tir"" 196, ,756 ~ 108, F -~" "1d/ Needs Full-time-plus Full-time ~()() Tho.,.,.quao<t:o.,-tii, ot: Ont: rraif-drnt: LimHed and Nor., Proficient ~..,... "Ufi"UO ot:"fjou<> Full-time 6,954 6,954 _1._1_()()_ 7, Thrbt:-qUao "".,.,, oot: 1,669 1,66_ , une-narr-time At Risk of Abuse or Neglect Full-time-plus F~ll-time JJ()()_ Three-quar,.,o.,-tlioo" One-half-time ~ Se,,Hely lic:ohl<>rl A<:;A ':lt:;t:; Full-time-plus F~ll-time - - ~ Thr&.,-quao,.,o.,-d, o" unt: nao-llint: - - ~!TOTAL-DAYS OF ENROLLMENT 426,132 - _426,~-!DAYS OF OPERATION 250!DAYS OF ATTENnANr.F 419, ,206 Comments - If, y attach additional sheets to explain adjustments: AUD 9500, Page 1 of4 (FY ) California Department of Education 50

53 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs!Agency Name: Continuing Development, Inc. Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CCTR-6267 ::>t:i..iiun II - NONCERTIFIED CHILDREN Report all children who were not certified, but who were served at the same sites as certified children.!days OF ENROLLMENT Infants (up to 18 'Ylonths; r.n1 lim~ A r.nliimn B COLUMN C CnlliMN D r.nl IMN E FISCAL YEAR PER FORM CDFS 9500 AUDIT CUMULATIVE FISCAL ADJUSTMENT ADJUSTMENTS YEAR PER AUDIT FACTOR ADJUSTED DAYS OF ENROLLMENT PER AUDIT ~"ull-time-plus Full-time Three-q1 ~ ~-'""" nt; lldii-liiiit; FC~~-t~~a~~~ (up to 18 months) Full-time Thr""-QI.. ~,,i, "" Onb.. o.-.i, Toddlers (18 up to 36 months) Full-time-plus Full-time Th"''.ru "'.-IArc.time On,a,-li;,., Three Years and Older Full-time:plus 23,802 23, ~.360 Full-time 36,667 36, , n i 90,513 90, , One-half-time 84,531 _ 4, ,4!g.050 >n::~l Needs "'' du;,...,, -nlus Full-time Three-ru,;, oo-.. alf-li;,.o ~600 Limited and Non-Fnglish JVI/vJG, Full-time-plus Full-time Thr""-"'' i One-half-time ~Q-855 At Risk of Abuse or Neglect "'' du;,...,,_nlus Full-time Three-ru +; Onb-o.aif-,i,, oo Severely Disabled Full-time-plus Full-time Thre<>-"',,..-~,,c.time One-half:time 0.8~!TOTAL DAYS OF FNROU.MENT 236,863 nr RR~ III1IHIII 180, Comments - If necessary, attach additional sheets to explain adjustments: AUD 9500, Page 2 of 4 FY California Department of Education 51

54 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CCTR-6267 COLUMN A COLUMN B COLUMN C CUMULATIVE AUDIT ADJUSTMENT CUMULATIVE FISCAL FISCAL YEAR PER INCREASE OR SECTION Ill REVENUE YEAR PER AUDIT.FORM (DECREASE) RESTRICTED INCOME Child Nutrition Programs $569,115 $0 $569,115 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Other (Specify): Subtotal $569,428 $0 $569,428 Transfer from Reserve 632,665 (7,718) 624,947 Family Fees for Certified Children 779, ,874 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 8,242,696 8,242,696 Head Start Program (EC 8235(b)) 0 Other (Specify): 10,579 1,347 11,926 TOTAL REVENUE $10,235,242 ($6,371) $10,228,871 SECTION IV REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 _$ Certificated Salaries 9,920,621 9,920, Classified Salaries 1,072,631 1,072, Employee Benefits 2,526,130 2,526, Books and Supplies 1,829,820 1,829, Services and Other Operating Expenses 6,715,049 6,715, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 0 Budget Impasse Credit 0 Indirect Costs. Rate: 0.00% (Rate is Self-Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $22,064,251 $0 $22,064,251 TOTAL ADMINISTRATIVE COSTS (included in section IV above) $2,418,557 $0 $2,418,557 FOR.CDEcA&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO): YES COMMENTS- If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):YES G2l NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 9500, Page 3 of 4 (FY ) California Department of Education 52

55 cy Name: AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Continuing Development, Inc. Vendor Nc Fiscal Year Ended: June 30, 2017 ~~~~~~ Contract No. CSPP-6533 SECTION I - CERTIFIED CHILDREN DAYS OF ENROLLMENT Three and Four Full-time-plus FISCAL YEAR PER FORM CDFS 8501 ADJUSTMENTS D NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the prog1 Comments - If necess attach additional sheets to AUD 8501, Page 1 of 4 (FY ) California Department of Education 53

56 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Continuing Development, Inc. Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CSPP-6533 <><:'-' 1 IVI'I II NONCERTIFIED CliiLDREN COLUMN A COLUMN B COLUMN C COLUMN D _ COLU_IVIN E Report all children who were not certified, but who were CUMULATIVE ADJUSTED DAYS served at the same sites as certified children. AUDIT!CUMULATIVE FISCAL ADJUSTMENT FISCAL YEAR PER OF ENROLLMENT ADJUSTMENTS YEAR PER AUDIT FACTOR FORM CDFS 8501 PER AUDIT DAYS OF ENROLLMENT Toddlers (18 up to 36 months) Full-time-plus Full-time 11 1_ Three-quar"'',.,,,,., On~,,u,-,, '"' Three and Four Year Olds Full-tim.,.nh '" 3,874 3, , Full-time 6,705 6, , Three-quar,.,,.,-ti;,,., O;,.,.,,a,-,ime 2J8B 2,Z _ , Exceptional Needs Full-time-plus Full-time Three-~r~ ov,,alf-tir,., Limited and No,. ~Er.-J!ish p, uficient Full-time-plus Full-time Three-qua;'"''.,-tit '"' One-half-time At Risk of Abuse or Neglect Full-time-piLls Full-time Three-quar..,,,.,, ''"' ;,.,-,,a,-,ime Severely Disabled Full-time-plus Full-time - - _ ~-qlla_r<t:: ::.-tirnt:_ One-half-time ~ - TOTAL DAYS OF ENROLLMENT 13,711 13,711 ~ _13,~.5~ Comments- If necessary, attach additional sheets to explain adjustments: AUD 8501, Pa g e2of4 FY California De p artment of Education 54

57 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CSPP-6533 COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL AUDIT ADJUSTMENT YEAR PER FORM INCREASE OR SECTION Ill -REVENUE CDFS 8501 (DECREASE) CUMULATIVE FISCAL YEAR PER AUDIT RESTRICTED INCOME Child Nutrition Programs $845,712 $30 $845,742 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $845,712 $30 $845,742 Transfer from Reserve - General 0 Transfer from Reserve - Professional Development 0 Subtotal $0 $0 $0 Family Fees for Certified Children 428,405 1, ,020 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 556, ,826 Head Start Program(f:C 8235(b)) 0 Other (Specify): 3,532 1,500 5,032 TOTAL REVENUE $1,834,475 $3,145 $1,837,620 SECTION IV - REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 7,206,303 (4,596) 7,201, Classified Salaries 827,224 (2,748) 824, Employee Benefits 1,977,410 (74,107) 1,903, Books and Supplies 1 '194,626 (131,358) 1,063, Services and Other Operating Expenses 3,825,063 (463,085) 3,361, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 0 Budget Impasse Credit 0 Indirect Costs. Rate: 0.00% (Rate is Self-Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $15,030,626 ($675,894) $14,354,732 TOTAL ADMINISTRATIVE COSTS lincludedinsectionlvabove) $1,550,720 ($262,089) $1,288,631 FOR CDE-A&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO):YES COMMENTS- If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):YES o NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 8501, Page 3 of 4 (FY ) California Department of Education 55

58 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Continuing Development, Inc. Vendor No Fiscal Year End: June 30, 2017 Contract No. CSPP-6533 COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL AUDIT ADJUSTMENT CUMULATIVE FISCAL YEAR PER FORM INCREASE OR YEAR PER AUDIT SECTION V- SUPPLEMENTAL REVENUE CDFS 8501 (DECREASE) Enhancement Funding $0 $0 Other (Specify): QRIS Grants 62,117 2,014 64,131 TOTAL SUPPLEMENTAL REVENUE $62,117 $2,014 $64,131 SECTION VI- SUPPLEMENTAL EXPENSES EXPENSES RELATED TO SUPPLEMENTAL REVENUE 1000 Certificated Salaries $18,561 $0 $18, Classified Salaries Employee Benefits 3,127 3, Books and Supplies 37,350 37, Services and Other Operating Expenses 3,079 2,014 5, EquipmenVOther Capital Outlay 0 Depreciation or Use Allowance 0 Indirect Costs 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 Other: e.g., Entertainment Expenses 0 TOTAL SUPPLEMENTAL EXPENSES $62,117 $2,014 $64,131 COMMENTS If necessary, attach additional sheets to explain adjustments: AUD 8501, Page 4 of 4 (FY ) California Department of Education 56

59 AUDITED FISCAL REPORT for Child Development Support Contracts Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2016 Contract No. CPKS-6096 Multi-Year Contract? (Check "No" Box or Enter Contract Period): No: or Period: Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A1 COLUMN A2 COLUMN B COLUMN C PRIOR YEAR'S AUD 9529 ENDING CURRENT AUDIT BALANCE FOR FISCAL YEAR ADJUSTMENT THIS CONTRACT PERFORM INCREASE OR (Multi-Year CDFS 9529 (DECREASE) Contract Only) CUMULATIVE THROUGH CURRENT FISCAL YEAR PER AUDIT SECTION I -REVENUE RESTRICTED INCOME Match Requirement $0 $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Subtotal $0 $0 $0 $0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $0 $0 $0 $0 SECTION II -REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $1,958 $0 $1, Classified Salaries Employee Benefits Books and Supplies 2,730 2, Services and Other Operating Expenses /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $0 $4,901 $0 $4,901 TOTAL ADMINISTRATIVE COSTS (inciudedinsectionllabovej $0 $0 $0 $0 FOR CDE-A&I USE ONLY: COMMENTS- If necessary, attach additional sheets to explain adjustments: D NO SUPPLEMENTAL REVENUES OR EXPENSES - Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9529, Page 1 of 2 (FY ) California Department of Education 57

60 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Continuing Development, Inc. Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CMIG-6013 ndependent Auditor's Name: qandlllpr Scott & (;()mpan~ CPA~ Inc. SECTION I - CERTIFIED CHILDREN DAYS OF ENROLLMENT COLUMt-1 A ~OIIIMIIIB COLUMN C COLUMN D COLUMN E CUMULATIVE I FISCAL YEAR PER FORM CDFS 9500 AUDIT CUMULATIVE FISCAL ADJUSTMENT ADJUSTMENTS YEAR PER AUDIT FACTOR ADJUSTED DAYS OF ENROLLMENT PER AUDIT Infants (up to 18 months} Full-time-plus , , Full-time 2,755 --~~ _1_.700 4, Th ree-quar,co o.-uo, oc cfo un".."""o-wnc 57 ] ~ FCCH Infants (up to 18 months} Full-time plus Full-time 1_,_400 - T no cc-.,uallco o.-.io oc one=half-time Toddlers (18 up to 36 months) FuJL+i~a-nJo oc 4, Full-time 4,278 _1,W3 _!_,400 5, Three-qu"''"' ;,-ti; ""' naif-tim" 198 ~ _!)_JJ_o_ Three Years and Older Full-time-plus , , Full-time 1,611 1_&±1 JJlOO 1, Three-quar,co ;,-do oc 2,021 2, ,51TI5o one-half-time 4,693 4,693 ~ 2, F Needs Full-time-plus Full-time 1? ~..1:_ Three-quar"'",-ti;, oc On.,-nalf-tirn" Limited and Non-English Proficient '=uii-liiii""i-'iu:> 4,201 4, , Full-time 5,2_5_ ~ _!JOO 5, Tl'u"c-yu"""'"-d" oc 1,380 1, ,13lfKbo r);:;a~h~lf.ti.:::;-a 198 ~ ~ At Risk of Abuse or Neglect ~o oiui~a.nl oc Full-time _1_.1_00 - Three-qUC.t<co ;,-liinc o-;;.,_nalf-tim., - ~ Severely fli.,,htorl Full-time-plus Full-time _1_._!300 - Three-quar,co,-do,"' One-half-time - - ~ TOTAL DAYS OF ENPn MJ:;NT 35,923 35,923~ IDAYS OF OPERATION IDAYS OF ATTENnANI';E 35,~ ~ D NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the Comments - If necessary, attach additional sheets to explain adjustments: _!)_JJ_D_ AUD 9500, Page 1 of4 (FY ) Cahforn1a Department of Educat1on 58

61 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Continuing Development, Inc. Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CMIG-6013 SECTION II - NONCERTIFIED CHILDREN COLUMNA COLUMN B COLUMN C COLUMN D COLUMN E Report all children who were not certified, but who were CUMULATIVE ADJUSTED DAYS served at the same sites as certified children. AUDIT CUMULATIVE FISCAL ADJUSTMENT FISCAL YEAR PER OF ENROLLMENT ADJUSTMENTS YEAR PER AUDIT FACTOR FORM CDFS 9500 PER AUDIT DAYS OF ENROLLMENT Infants (up to 18 months) Full-time-plus Full-time Three-quarters-time One-half-time FCCH Infants (up to 18 months) Full-time plus Full-time Three-quarters-time One-half-time Toddlers (18 up to 36 months) Full-time-plus Full-time Three-quarters-time 21 ' On-half-time Three Years and Older Full-time-plus Full-time Three-quarters-time One-half-time Exceptional Needs Full-time-plus Full-time Three-quarters-time One-half-time Limited and Non-English Proficient Full-time-plus Full-time Three-quarters-time One-half-time At Risk of Abuse or Neglect Full-time-plus Full-time Three-quarters-time One-half-time Severely Disabled Full-time-plus Full-time Three-quarters-time One-half-time TOTAL DAYS OF ENROLLMENT lf;r- ~,~!!;( j(vi]f%' Comments - If necessary, attach additional sheets to explain adjustments: AU D 9500, Page 2 of 4 (FY ) California Department of Education 59

62 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CMIG-6013 COLUMN A COLUMN B COLUMN C CUMULATIVE AUDIT ADJUSTMENT CUMULATIVE FISCAL FISCAL YEAR PER INCREASE OR SECTION Ill - REVENUE YEAR PER AUDIT FORM (DECREASE) RESTRICTED INCOME Child Nutrition Programs $4,083 $0 $4,083 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Other (Specify): First 5 4,415 4,415 Subtotal $8,498 $0 $8,498 Transfer from Reserve 0 Family Fees for Certified Children 55,899 55,899 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 3,115 3,115 Head Start Program (EC 8235(b)) 0 Other (Specify): 1,285 1,285 TOTAL REVENUE $68,797 $0 $68,797 SECTION IV - REIMBURSABLE EXPENSES u~rect Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 909, , Classified Salaries 113, , Employee Benefits 181, , Books and Supplies 112, , Services and Other Operating Expenses 389, , Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 290, ,074 Budget Impasse Credit 0 Indirect Costs. Rate: 0.00% (Rate is Self-Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $1,996,222 $0 $1,996,222 TOTAL ADMINISTRATIVE COSTS (included in section IV above) $182,982 $182,982 FOR CDE-A&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO): YES COMMENTS- If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):YES 0 NO SUPPLEMENTAL REVENUES OR EXPENSES Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 9500, Page 3 of 4 (FY ) California Department of Education 60

63 AUDITED FISCAL REPORT for Migrant Special Services Contracts Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CMSS-6013 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL ADJUSTMENT CUMULATIVE YEAR PER FORM INCREASE OR FISCAL YEAR PER SECTION I - REVENUE CDFS 9500-A (DECREASE) AUDIT RESTRICTED INCOME Other (Specify): $0 $0 $0 Subtotal $0 $0 0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME 0 TOTAL REVENUE $0 $U $0 AUDIT SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $177,872 $0 $177, Classified Salaries 15,567 15, Employee Benefits 26,921 26, Books and Supplies 29,009 29, Services and Other Operating Expenses 30,772 30,772 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $280,141 $0 $280,141 TOTAL ADMINISTRATIVE COSTS (inctudedinsectionttabove) $19,234 $19,234 DAYS OF OPERATION FOR CDE-A&I USE ONLY:. COMMENTS - If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9500-A, Page 1 of 2 (FY ) California Department of Education 61

64 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Continuing Development, Inc. Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CMIG-6014 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. SECTION I CERTIFIED CHILDREN DAYS OF ENROLLMENT COLUMNA C:OI limn B COLUMN C r.n1 limn D r.n1 limn E CUMULATIVE ADJUSTED DAYS AUDIT CUMULATIVE FISCAL ADJUSTMENT FISCAL YEAR PER OF ENROLLMENT ADJUSTMENTS YEAR PER AUDIT FACTOR FORM CDFS 9500 PER AUDIT Infants (up to 18 months) Full-tim<>-plus Full-time Three-qu:,.~, ~.. " ~ 00'""'""'"" FCCH Infants (up to 18 months) Full-time plus Full-time T ~~.':" ~ I "' One-half-time Toddlers (18 up to 36 months) Full-time-plus Full-time 1,887 1, , Three-qL " '"' Ul 11awdo11c -" Three Years and Older _F_lJII-time~plus Full-time 1 '115 1 ' , Three-quarters-time ,.,-.. alf-ti;,., 1,496 1, E1 -,.-.:~ '"' 'Needs _ftjii-ti~lus Full-time Throo.m "' Qne-half-time Limited and Non-English Proficient Full-tirr~t: fjru:s 3,065 3, ~ Full-time 7,149 7, ,RR~ qnn Three-qu: " ,.,-.. alf-ti;,., At Risk of Abuse or Neglect _F_LJII-time:elus Full-time Throo.m "' One-half-time Severely ~ v~~ -~ Ful'-tim.,~lu~ Full-time Three-qu: " Onb-,alf-,i,, '" 0.825!TOTAL DAYS OF ENROLLMENT 17,569 IDAYS OF OPERATION 250 -!DAYS OF ATTENDANCE 17,330 17,330 17,;~~~ 0 NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the Comments - If necessary, attach additional sheets to explain adjustments: AUD 9500, Page 1 of 4 (FY ) California Department of Education 62

65 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CMIG-6014 COLUMN A COLUMN B COLUMN C CUMULATIVE AUDIT ADJUSTMENT CUMULATIVE FISCAL FISCAL YEAR PER INCREASE OR SECTION Ill - REVENUE YEAR PER AUDIT FORM (DECREASE) RESTRICTED INCOME Child Nutrition Programs $2,794 $0 $2,794 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Other (Specify): First 5 0 Subtotal $2,794 $0 $2,794 Transfer from Reserve 0 Family Fees for Certified Children 19,812 19,812 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 1 '166 1 '166 Head Start Program (EC 8235(b)) 0 Other (Specify): TOTAL REVENUE $24,480 $0 $24,480 SECTION IV - REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $()_ 1000 Certificated Salaries 412, , Classified Salaries 55,543 55, Employee Benefits 116, , Books and Supplies 54,641 54, Services and Other Operating Expenses 138, , /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 0 Budget Impasse Credit 0 Indirect Costs. Rate: 0.00% (Rate is Self-Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $777,212 $0 $777,212 TOTAL ADMINISTRATIVE COSTS (inclllded in section 1v above) $182,982 ($137,827) $45,155 FORCDE-A&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO):YES COMMENTS- If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):YES 0 NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 9500, Page 3 of 4 (FY ) California Department of Education 63

66 AUDITED FISCAL REPORT for Migrant Special Services Contracts Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CMSS-6014 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL ADJUSTMENT CUMULATIVE YEAR PER FORM INCREASE OR FISCAL YEAR PER SECTION I - REVENUE CDFS 9500-A (DECREASE) AUDIT RESTRICTED INCOME Other (Specify): $0 $0 $0 Subtotal $0 $0 0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME 0 TOTAL REVENUE $0 :j)u $0 AUDIT SECTION II REIMBURSABLE EXPENSES 1000 Certificated Salaries $28,690 $0 $28, Classified Salaries 17,870 17, Employee Benefits 5,169 5, Books and Supplies Services and Other Operating Expenses 14,618 14,618 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $66,753 $0 $66,753 TOTAL ADMINISTRATIVE COSTS (includedinsectionllabove) $9,413 $0 $9,413 DAYS OF OPERATION FOR CDE-A&t USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AU D 9500-A, Page 1 of 2 (FY ) California Department of Education 64

67 AUDITED FISCAL REPORT for Resource and Referral Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CRRP-6053 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMNA COLUMN B COLUMN C AUDIT CUMULATIVE CUMULATIVE ADJUSTMENT FISCAL YEAR PER FISCAL YEAR PER INCREASE OR FORM CDFS 2507 AUDIT SECTION I REVENUE (DECREASE) RESTRICTED INCOME County Maintenance of Effort (EC 8279) $0 $0 $0 Subtotal $0 $0 $0 TRANSFER FROM RESERVE (Resource & Referral Only) 0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $0 $0 $0 SECTION II REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $ Classified Salaries 92,506 92, Employee Benefits 7,774 7, Books and Supplies 13,013 13, Services and Other Operating Expenses 42,486 42, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% (Rate is Self-Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $155,779 $0 $155,779 FOR CDE-A&I USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: [2] NO SUPPLEMENTAL REVENUES OR EXPENSES -Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 2507, Page 1 of 2 (FY ) California Department of Education 65

68 AUDITED FISCAL REPORT for Resource and Referral Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CRRP-6054 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL YEAR PER FORM CDFS 2507 AUDIT ADJUSTMENT INCREASE OR (DECREASE) CUMULATIVE. FISCAL YEAR PER AUDIT SECTION I - REVENUE RESTRICTED INCOME County Maintenance of Effort (EC 8279) $0 $0 $0 Subtotal $0 $0 $0 TRANSFER FROM RESERVE (Resource & Referral Only) 0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME Other (Specify): 5,576 5,576 TOTAL REVENUE $5,576 $0 $5,576 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $ Classified Salaries 114, , Employee Benefits 39,944 39, Books and Supplies 11,735 11, Services and Other Operating Expenses 16,172 16, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% (Rate is Self-Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $182,673 $0 $182,673 FOR CDE-A&I USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: [2] NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 2507, Page 1 of 2 (FY ) California Department of Education 66

69 AUDITED FISCAL REPORT for Child Development Support Contracts Agency Name: Continuing Development, Inc. Vendor No Fiscal Year End: June 30, 2017 Contract No. CHST-6053 Multi-Year Contract? (Check "No" Box or Enter Contract Period): No: 0 or Period: Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A1 COLUMN A2 COLUMN B COLUMN C PRIOR YEAR'S AUD 9529 ENDING CURRENT AUDIT BALANCE FOR FISCAL YEAR ADJUSTMENT THIS CONTRACT PERFORM INCREASE OR (Multi-Year CDFS 9529 (DECREASE) Contract Only) CUMULATIVE THROUGH CURRENT FISCAL YEAR PER AUDIT SECTION I - REVENUE RESTRICTED INCOME Match Requirement $0 $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Subtotal $0 $0 $0 $0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME Other (Specify): TOTAL REVENUE $0 $30 $0 $30 SECTION II -REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $0 $ Classified Salaries Employee Benefits Books and Supplies Services and Other Operating Expenses /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $0 $956 $0 $956 TOTAL ADMINISTRATIVE COSTS (included in section 11 above) $0 $0 $0 $0 FOR CDE-A&I USE ONLY: COMMENTS- If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES - Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9529, Page 1 of 2 (FY ) California Department of Education 67

70 AUDITED FISCAL REPORT for Child Development Support Contracts Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CHST-6054 Multi-Year Contract? (Check "No" Box or Enter Contract Period): No: 0 or Period: Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A1 COLUMN A2 COLUMN B COLUMN C PRIOR YEAR'S AUD 9529 ENDING CURRENT AUDIT BALANCE FOR FISCAL YEAR ADJUSTMENT THIS CONTRACT PERFORM INCREASE OR (Multi-Year CDFS 9529 (DECREASE) Contract Only) CUMULATIVE THROUGH CURRENT FISCAL YEAR PER AUDIT SECTION I - REVE;NUE RESTRICTED INCOME Match Requirement $0 $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Subtotal $0 $0 $0 $0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $0 $0 $0 $0 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $0 $ Classified Salaries Employee Benefits Books and Supplies 2,662 2, Services and Other Operating Expenses /6200 Other Approved Capital Outlay 0 ' 6400 New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $0 $3,955 $0 $3,955 TOTAL ADMINISTRATIVE COSTS (includedinsectionllabovej $0 $0 $0 $0 FOR CDE-A&I USE ONLY: COMMENTS- If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES -Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9529, Page 1 of 2 (FY ) California Department of Education 68

71 AUDITED FISCAL REPORT for CaiWORKS, Alternative Payment or Family Child Care Home Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 ~ Fiscal Year End: June 30, 2017 Contract No. CAPP-6060 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. Column A Column B Column C CUMULATIVE FISCAL AUDIT ADJUSTMENT YEAR PER FORM INCREASE OR SECTION I - REVENUE CDFS 9500-AP (DECREASE) CUMULATIVE FISCAL YEAR PER AUDIT RESTRICTED INCOME Child Nutrition Programs $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $0 $0 $0 TRANSFER FROM RESERVE (Alternative Payment Only) 0 FAMILY FEES FOR CERTIFIED CHILDREN 33,698 33,698 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME SECTION II - REIMBURSABLE EXPENSES TOTAL REVENUE $33,698 $0 $33,698 Direct Payments to Providers $886,801 $0 $886, Certificated Salaries Classified Salaries 67,196 67, Employee Benefits 27,386 27, Books and Supplies 8,142 8, Services and Other Operating Expenses 85,428 (1) 85, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $1,074,953 ($1) $1,074,952 TOTAL ADMINISTRATIVE COSTS (included in section 11 above) $61,885 $0 $61,885 DAYS OF OPERATION FOR CDE-A&I USE ONLY: COMMENTS- If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9500-AP, Page 1 of 2 (FY ) California Department of Education 69

72 AUDITED FISCAL REPORT for CaiWORKS, Alternative Payment or Family Child Care Home Programs Agency Name: Continuing Development, Inc. Vendor No Fiscal Year End: June 30, 2017 Contract No. C2AP-6055 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. Column A Column B Column C CUMULATIVE FISCAL AUDIT ADJUSTMENT YEAR PER FORM INCREASE OR SECTION I -REVENUE CDFS 9500-AP (DECREASE) CUMULATIVE FISCAL YEAR PER AUDIT RESTRICTED INCOME Child Nutrition Programs $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $0 $0 $0 TRANSFER FROM RESERVE (Alternative Payment Only) 3,153 3,153 FAMILY FEES FOR CERTIFIED CHILDREN 33,203 33,203 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME SECTION II - REIMBURSABLE EXPENSES TOTAL REVENUE $36,356 $0 $36,356 Direct Payments to Providers $857,092 $0 $857, Certificated Salaries Classified Salaries 134, , Employee Benefits 27,204 27, Books and Supplies 4,848 4, Services and Other Operating Expenses 20,814 20, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $1,044,476 $0 $1,044,476 TOTAL ADMINISTRATIVE COSTS (included in Section II above) $29,353 $0 $29,353 DAYS OF OPERATION FOR CDE-A&I USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: Rl NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 ifthere are no supplemental revenues or expenses to report. AUD 9500-AP, Page 1 of2 (FY ) California Department of Education 70

73 AUDITED FISCAL REPORT for CaiWORKS, Alternative Payment or Family Child Care Home Programs Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. C3AP-6053 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. Column A Column B Column C CUMULATIVE FISCAL AUDIT ADJUSTMENT YEAR PER FORM INCREASE OR SECTION I - REVENUE CDFS 9500-AP (DECREASE) CUMULATIVE FISCAL YEAR PER AUDIT RESTRICTED INCOME Child Nutrition Programs $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $0 $0 $0 TRANSFER FROM RESERVE (Alternative Payment Only) 0 FAMILY FEES FOR CERTIFIED CHILDREN 43,594 43,594 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME SECTION II - REIMBURSABLE EXPENSES TOTAL REVENUE $43,594 $0 $43,594 Direct Payments to Providers $452,141 $0 $452, Certificated Salaries Classified Salaries 67,231 67, Employee Benefits 6,498 6, Books and Supplies 2,538 2, Services and Other Operating Expenses 31,811 31, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $560,219 $0 $560,219 TOTAL ADMINISTRATIVE COSTS (included in Section II above) $18,363 $0 $18,363 DAYS OF OPERATION FOR CDE-A&I USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES -Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9500-AP, Page 1 of 2 (FY ) California Department of Education 71

74 AUDITED FISCAL REPORT for Child Development CCIP Support Contracts Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CCIP-6053 Multi-Year Contract? (Check "No" Box or Enter Contract Period): No: 0 or Period: Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. SECTION I - REVENUE COLUMN A1 COLUMN A2 COLUMN B COLUMN C PRIOR YEAR'S AUD 9529-CCIP ENDING BALANCE FOR THIS CONTRACT (Multi-Year Contract Only) CURRENT FISCAL YEAR PER FORM CDFS 9529-CCIP AUDIT ADJUSTMENT INCREASE OR (DECREASE) CUMULATIVE THROUGH CURRENT FISCAL YEAR PER AUDIT RESTRICTED INCOME Match Requirement $0 $2,224 $0 $2,224 County Maintenance of Effort (EC 8279) 0 Subtotai $0 $2,224 $0 $2,224 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME Match Requirement 0 Other (Specify): ,208 TOTAL REVENUE $0 $5,432 $0 $5,432 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $0 $ Classified Salaries 9,388 9, Employee Benefits Books and Supplies 1,837 1, Services and Other Operating Expenses 4,299 4, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $0 $16,164 $0 $16,164 TOTAL ADMINISTRATIVE COSTS (included in section 11 above) $0 $372 ($1) $371 FOR CDE-A&I USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: Rl NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9529-CCIP, Page 1 of 2 (FY ) California Department of Education 72

75 AUDITED FISCAL REPORT for Child Development CCIP Support Contracts Agency Name: Continuing Development, Inc. Vendor No. 43-B655 Fiscal Year End: June 30, 2017 Contract No. CCIP-6054 Multi-Year Contract? (Check "No" Box or Enter Contract Period): No: 0 or Period: Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. SECTION I - REVENUE COLUMN A1 COLUMN A2 COLUMN B COLUMN C PRIOR YEAR'S AUD 9529-CCIP ENDING BALANCE FOR THIS CONTRACT (Multi-Year Contract Only) CURRENT FISCAL YEAR PER FORM CDFS 9529-CCIP AUDIT ADJUSTMENT INCREASE OR (DECREASE) CUMULATIVE THROUGH CURRENT FISCAL YEAR PER AUDIT RESTRICTED INCOME Match Requirement $0 $4,888 $0 $4,888 County Maintenance of Effort (EC 8279) 0 Subtotal $0 $4,888 $0 $4,888 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME Match Requirement 13,576 13,576 TOTAL REVENUE $0 $18,464 $0 $18,464 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $0 $ Classified Salaries 29,220 29, Employee Benefits 1,246 1, Books and Supplies 3,568 3, Services and Other Operating Expenses 5,550 5, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Indirect Costs. Rate: 0.00% 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $0 $39,584 $0 $39,584 TOTAL ADMINISTRATIVE COSTS (included in section II above) $0 $876 $0 $876 FOR CDE-A&I USE ONLY: COMMENTS- If necessary, attach additional sheets to explain adjustments: 0 NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 2 if there are no supplemental revenues or expenses to report. AUD 9529-CCIP, Page 1 of2 (FY ) California Department of Education 73

76 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: Continuing Development, Inc. Fiscal Year End: June 30, 2017 Vendor No. 43-B655 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. RESERVE ACCOUNT TYPE (Check One): COLUMN A COLUMN B COLUMN C Alternative Payment PER AGENCY AUDIT ADJUSTMENT INCREASE OR (DECREASE) PER AUDIT LAST YEAR: 1. Beginning Balance (must equal ending balance from Last Year's AUD 9530-A) $7,079 $0 $7, Plus Transfers from Contracts to Reserve Account (based on last year's post-audit CDFS 9530, Section IV): Contract No. $0 $0 $0 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Total Transferred from Contracts to Reserve Account Less Excess Reserve to be Billed (enter as a positive amount any excess amount calculated by CDFS on last year's post-audit CDFS 9530) $0 $0 4. Ending Balance on Last Year's Post-Audit CDFS 9530 $7,079 $0 $7,079 THIS YEAR: 5. Plus Interest Earned This Year on Reserve Funds (column A must agree with this year's CDFS 9530-A, Section II) $3 $0 $3 6. Less Transfers to Contracts from Reserve Account (column A amounts must agree with this year's CDFS 9530-A, Section Ill; and column C amounts must be reported on this year's AUD forms for respective contracts): CSPP - General Contract No. $0 Contract No. 0 CSPP - Professional Development Contract No. $0 Contract No. 0 Subtotal $0 $0..2Q.. Other Contracts Contract No. C2AP6055 $3,153 $3,153 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Subtotal $3,153 $0 $3,153 Total Transferred to Contracts from Reserve Account 3, , Ending Balance on June 30, 2017 (column A must agree with this year's CDFS 9530-A, Section IV) $3,929 $0 $3,929 COMMENTS -If necessary, attach additional sheets to explain adjustments: AUD 9530-A, Page 1 of 1 (FY ) California Department of Education 74

77 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: Continuing Development, Inc. Fiscal Year End: June 30, 2017 Vendor No. 43-B655 Independent Auditor's Name: Randolph Scott & Com_pany, CPA's, Inc. RESERVE ACCOUNT TYPE (Check One): COLUMN A COLUMN B COLUMN C Center Based PER AGENCY AUDIT ADJUSTMENT INCREASE OR (DECREASE) PER AUDIT LAST YEAR: 1. Beginning Balance (must equal ending balance from Last Year's AUD 9530-A) $797,176 $391 $797, Plus Transfers from Contracts to Reserve Account (based on last year's post-audit CDFS 9530, Section IV): Contract No. CSPP-5516 $292,684 $0 $292,684 Contract No. CMIG ,565 46,565 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Total Transferred from Contracts to Reserve Account 339, , Less Excess Reserve to be Billed (enter as a positive amount any excess amount calculated by CDFS on last year's post-audit CDFS 9530) $0 $0 4. Ending Balance on Last Year's Post-Audit CDFS 9530 $1,136,425 $391 $1,136,816 THIS YEAR: 5. Plus Interest Earned This Year on Reserve Funds (column A must agree with this year's CDFS 9530-A, Section II) $544 $0 $ Less Transfers to Contracts from Reserve Account (column A amounts must agree with this year's CDFS 9530-A, Section Ill; and column C amounts must be reported on this year's AUD forms for respective contracts): CSPP - General Contract No. $0 Contract No. 0 CSPP - Professional Development Contract No. $0 Contract No. 0 Subtotal $0 $0 $0 Other Contracts Contract No. CCTR-6267 $632,665 $632,665 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Subtotal $632,665 $0 $632,665 Total Transferred to Contracts from Reserve Account 632, , Ending Balance on June 30, 2017 (column A must agree with this year's CDFS 9530-A, Section IV) $504,304 $391 $504,695 COMMENTS If necessary, attach additional sheets to explain adjustments: The above is the ending balance as reported to the state on form CDFS-9530-A. The Agency has calculated a current year's reserve in the amount of $3,958 and $716 on their CMIG-6013 and CMIG-6014 contract. This additional amount is recorded under CDE Reserve on the Consolidated Balance Sheet at June 30, Final determination on the reserve balance will be made by CDE. AUD 9530-A, Page 1 of 1 (FY ) California Department of Education 75

78 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: Continuing Development, Inc. Fiscal Year End: June 30, 2017 Vendor No. 43-B655 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. RESERVE ACCOUNT TYPE (Check One): COLUMN A COLUMN B COLUMN C Resource & Referral PER AGENCY AUDIT ADJUSTMENT INCREASE OR (DECREASE) PER AUDIT LAST YEAR: 1. Beginning Balance (must equal ending balance from Last Year's AUD 9530-A) $5,898 $0 $5, Plus Transfers from Contracts to Reserve Account (based on last year's post-audit CDFS 9530, Section IV): Contract No. $0 $0 $0 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Total Transferred from Contracts to Reserve Account Less Excess Reserve to be Billed (enter as a positive amount any excess amount calculated by CDFS on last year's post-audit CDFS 9530) $0 $0 4. Ending Balance on Last Year's Post-Audit CDFS 9530 $5,898 $0 $5,898 THIS YEAR: 5. Plus Interest Earned This Year on Reserve Funds (column A must agree with this year's CDFS 9530-A, Section II) $3 $0 $3 6. Less Transfers to Contracts from Reserve Account (column A amounts must agree with this year's CDFS 9530-A, Section Ill; and column C amounts must be reported on this year's AUD forms for respective contracts): CSPP - General Contract No. $0 Contract No. 0 CSPP - Professional Development Contract No. $0 Contract No. 0 Subtotal $0 $0 $0 other Contracts Contract No. $0 Contract No. 0 Contract No. 0 Contract No. 0 Contract No. 0 Subtotal $0 $0 $0 Total Transferred to Contracts from Reserve Account Ending Balance on June 30, 2017 (column A must agree with this year's CDFS 9530-A, Section IV) $5,901 $0 $5,901 COMMENTS- If necessary, attach additional sheets to explain adjustments: The above is the ending balance as reported to the state on form CDFS-9530-A. The Agency has calculated a current year's reserve in the amount of $644 on their CRRP-6053 contract. This additional amount is recorded under CDE Reserve on the Consolidated Balance Sheet at June 30, Final determination on the reserve balance will be made by CDE. AUD 9530-A, Page 1 of 1 (FY ) California Department of Education 76

79 CONTINUING DEVELOPMENT, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2017 EXPENDITURES Ventura County OE ~ CSPP-6637 Elk Grove General CCTR-6184 Placer County General CSPP-6340 Total for School Districts Direct payments to providers Certificated salaries 2000 Classified salaries 3000 Employee benefits 4000 Books and supplies 5000 Services and other operating expenses 6100/6200 Other approved capital outlay 6400 New equipment 6500 Replacement equipment Depreciation on assets not purchased with public funds Start-up expenses - service level exemption (a) Indirect costs (b) Total expenses claimed for reimbursement (c) Supplemental expenses $ - 215,309 20,140 48,268 39,878 63,886 14, ,407 $ - $ 616,515 64, ,417 97, ,922 1,380,099-41,676 1,123 14,019 6,889 9, ,088 $ 873,500 85, , , ,882 15,233 1,855,594 Total Expenditures $ 402,407 $ 1,380,099 $ 73,088 $ 1,855,594 Notes: (a) No start-up expenses (b) This is the indirect charged by the school district and is not an expenditure of COl. (c) Any food expenses have been allocated to the appropriate contracts. We have examined the claims filed for reimbursement and the original records supporting the transactions recorded under the contracts listed above to an extent considered necessary to assure ourselves that the amounts claimed by the contractor were eligible for reimbursement, reasonable, necessary, and adequately supported, according to governing laws, regulations, and contract provisions

80 CONTINUING DEVELOPMENT, INC. COMBINING SCHEDULE OF ADMINISTRATIVE COSTS RELATING TO SCHOOL DISTRICTS FOR THE YEAR ENDED JUNE 30, 2017 Ventura County Elk Grove Office of USD Education Center CSPP-6637 CCTR-6184 Salaries: Certified Salaries $ 22,486 $ 87,782 Classified Salaries 2,103 9,133 Employee Benefits 5,041 23,268 Books and Supplies 4,165 13,826 Services and Other Operating Expenses 6,672 62,496 Depreciation or Use Allowance USD's Indirect Cost 14,926 $ Placer County Office of Education CSPP Total Administrative Costs $ 55,393 $ 196,505 $ 307 Note: This schedule combines the administrative costs incurred by the Agency plus the indirect cost charged by the School Districts. 78

81 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs!Agency Name: Ventura County Office of Education Vendor N Fiscal Year Ended: June 30, 2017 Contract No. CSPP-6637 Independent Auditor's Name: Randolph Scott & Company, CPA's Inc. COLUMNA COLUMN B ~()~l)i\i!n C l<:;()lumn D COLUMN E SECTION I -CERTIFIED CHILDREN CUMULATIVE CUMULATIVE AUDIT DAYS OF ENROLLMENT FISCAL YEAR PER FORM CDFS 8501 ADJUSTMENTS ADJUSTED DAYS I ADJUSTMENT FISCAL YEAR PER OF ENROLLMENT FACTOR AUDIT PER AUDIT Three and Four Year Olds Full-time-plus Full-time Three-quar'"',-tit''" One-half-time 3,634 3, , Exceptional Needs Full-time-plus Full-time _!-3_D_()_()_ Three-quar,.,,.,-tii ole Ont: half-tit,,o:: 'i96 Limited and Non-English Proficient Full-time-plus Full-time U()Cl_[)_ Three-qu"'''"' """'''" Ontl.. IJalf-time 11,914 11, , At Risk of Abuse or Neglect Full-time-plus Full-time Three-quarters-time One-half-time Severely Disabled Full-time-plus Full-time Three-quarters-time One-half-time!TOTAL DAYS OF ENRnl 1 MJ:::NT 15,548-15,548~ IDAYS OF OPERATION IDAYS OF ATTENUANCE 15,477 15,477 0 NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the pro Comments - If necessary, attach additional sheets to explain adjustments: AUD8501,Page1of4 FY ) California Department of Education 79

82 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Ventura County Office of Education Vendor No Fiscal Year End: June 30, 2017 Contract No. CSPP-6637 COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL AUDIT ADJUSTMENT CUMULATIVE FISCAL YEAR PER FORM INCREASE OR SECTION Ill REVENUE YEAR PER AUDIT CDFS 8501 (DECREASE) RESTRICTED INCOME Child Nutrition Programs $12,775 $0 $12,775 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $12,775 $0 $12,775 Transfer from Reserve - General 0 Transfer from Reserve Professional Development 0 Subtotal $0 $0 $0 Family Fees for Certified Children 0 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 0 Head Start Program (EC 8235(b)) 0 Other (Specify) 0 Other (Specify) 0 TOTAL REVENUE $12,775 $0 $12,775 SECTION IV REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 215, , Classified Salaries 20,140 20, Employee Benefits 48,268 48, Books and Supplies 39, , Services and Other Operating Expenses 64,202 (316) 63, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 0 Budget Impasse Credit 0 Indirect Costs. Rate: 3.85% (Rate is Self-Calculating) 14,926 14,926 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $402,407 $0 $402,407 TOTAL ADMINISTRATIVE COSTS (included in section 1v above) $55,393 $0 $55,393 FOR CDE-A&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements ofthe California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO):YES COMMENTS - If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO): YES 0 NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 8501, Page 3 of 4 (FY ) California Department of Education 80

83 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs!Agency Name: Elk Grove Unified School District Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CCTR-6184 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. SECTION I - CERTIFIED CHILDREN DAYS OF ENROLLMENT r.n1 limn A COLUI\IIN B (:OL.UI\II('J_(: r.n1 limn[) COLUMN E CUMULATIVE FISCAL YEAR AUDIT PER FORM CDFS ADJUSTMENTS 9500 CUMULATIVE FISCAL YEAR PER AUDIT ADJUSTMENT FACTOR ADJUSTED DAYS OF ENROLLMENT PER AUDIT Infants (up to 18 months) Full-tim.,-plu~ Full-time - -.1}0_0 Three-quarters-time c,..,."""-'""" FCCH Infants (up to 18 months) Full-time plus Fuii-ITme Three-quarters-time One-half-time oaaters (18 up to 36 months) Full-time-plus Full-ti~ Tr -yu"' '"'~-lime - 1Q5~ - Or'""' -d"'" Three Years and Older Full-time-plus , , Full-time 6,817 6, , Three-quar,.,, ~-dr '" 9,627 ~_,_61Z_ aoz~ 7, One-half-time 14,637 14, , nat Needs Full-time-plus Full-time Thre;quarters-time {'\ '"'..-""'" "" Fl'l' " Limited and Non-English Proficient - Full-time Three-quar\"' ~-tir''" One-half-time At Risk of Abuse or Neglect Full-time-plus Full-time Thre~-n ~.-+Qco_+.ime One-half-time Severely Disabled Full-time-plus Full-time Thr ""-yuar ''"~-time Or i !TOTAL DAYS OF ENROLLMENT 34,005-34,005- IDAYS OF OPERATION IDAYS OF ATTENDANCE 33,722-33,722 D NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the prog Comments - If necessary, attach additional sheets to explain adjustments: 10J_~ _1~()()_ AUD 9500, Page 1 of 4 (FY ) California Department of Education 81

84 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Elk Grove Unified School District Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CCTR-6184 SECTION II NONCERTIFIED CHILDREN COLUMNA COLUMN B COLUMN C COLUMN D COLUMN E Report all children who were not certified, but who were CUMULATIVE CUMULATIVE ADJUSTED DAYS served at the same sites as certified children. FISCAl.. YEAR AUDIT ADJUSTMENT FISCAL YEAR PER OF ENROLLMENT PER FORM CDFS ADJUSTMENTS FACTOR AUDIT PER AUDIT DAYS OF ENROLLMENT 9500 Infants (up to 18 months) Full-time-plus Full-time Three-quarters-time One-half-time FCCH Infants (up to 18 months) Full-time plus Full-time Three-quarters-time One-half-time Toddlers (18 up to 36 months) Full-time-plus Full-time Three-quarters-time On-half-time Three Years and Older Full-time-plus Full-time 5,115 5, , Three-quarters-time 3,544 3, , One-half-time 3,743 3, , Exceptional Needs Full-time-plus Full-time Three-quarters-time One-half-time Limited and Non-English Proficient Full-time-plus Full-time Three-quarters-time One-half-time At Risk of Abuse or Neglect Full-time-plus Full-time Three-quarters-time One-half-time Severely Disabled Full-time-plus Full-time Three-quarters-time One-half-time TOTAL DAYS OF ENROLLMENT 12,402-12,402 [. J:I:I E!~ 9, Comments - If necessary, attach additional sheets to explain adjustments: AUD 9500, Page 2 of 4 (FY ) Cal1forn1a Department of Education 82

85 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Elk Grove Unified School District Vendor No Fiscal Year End: June 30, 2017 Contract No. CCTR-6184 COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL YEAR PER FORM AUDIT ADJUSTMENT INCREASE OR (DECREASE) CUMULATIVE FISCAL YEAR PER AUDIT SECTION Ill - REVENUE em=~!l~;nn RESTRICTED INCOME Child Nutrition Programs $65,849 $0 $65,849 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $65,849 $0 $65,849 Transfer from Reserve 0 Family Fees for Certified Children 74,016 74,016 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 394, ,430 Head Start Program (EC 8235(b)) 0 Other (Specify): 1,005 1,005 TOTAL REVENUE $535,300 $0 $535,300 SECTION IV - REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 616, , Classified Salaries 64,142 64, Employee Benefits 163, , Books and Supplies 97,103 97, Services and Other Operating Expenses 438, , /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 0 Budget Impasse Credit 0 Indirect Costs. Rate: 0.00% (Rate is Self~Calculating) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $1,380,099 $0 $1,380,099 TOTAL ADMINISTRATIVE COSTS (included in section 1v above) $196,505 $0 $196,505 FOR CDE-A&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO):YES COMMENTS- If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):YES 0 NO SUPPLEMENTAL REVENUES OR EXPENSES - Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 9500, Page 3 of 4 (FY ) California Department of Education 83

86 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs!Agency Name: Placer County Office of Education Vendor N, Fiscal Year Ended: June 30, 2017 Contract No. CSPP-6340 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A COL_tJMN B COLUMN C COlUMN 0 COLUMN E SECTION I -CERTIFIED CHILDREN CUMULATIVE CUMULATIVE ADJUSTED DAYS AUDIT ADJUSTMENT DAYS OF ENROLLMENT FISCAL YEAR PER FISCAL YEAR PER OF ENROLLMENT ADJUSTMENTS FACTOR FORM CDFS 8501 AUDIT PER AUDIT Three and Four Year Olds Full-time-plus Full-time Three-quarters-time One-half-time Exceptional Needs Full-time-piL., Full-time Three-quarlco,-ti; '" One-half-time Limited and Non-English Proficient Full-time-plus Full-time Three=guar\c,,-tir '" One-half-time At Risk of Abuse or Neglect J:ull-time-plus Full-time Three-quarters-time Onc-""" tir.. c Severely Disabled Full::li~ ~t: plus Full-time Three-quarters-time Ont:-r.. :~If-time TOTAL DAYS OF EN~I"'II MI;:NT 233 DAYS OF OPERATION DAYS OF ATTENDANCE o NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the Comments - If neces~ary, attach additional sheets to explain adjustments: AUD 8501, Page 1 of 4 (FY ) California Department of Education 84

87 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Placer County Office of Education Vendor No Fiscal Year Ended: June 30, 2017 Contract No. CSPP-6340 SECTION II - NONCERTIFIED CHILDREN COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E Report all children who were not certified, but who CUMULATIVE CUMULATIVE ADJUSTED DAYS were served at the same sites as certified children. AUDIT ADJUSTMENT FISCAL YEAR PER FISCAL YEAR PER OF ENROLLMENT ADJUSTMENTS FACTOR FORM CDFS 8501 AUDIT PER AUDIT DAYS OF ENROLLMENT Juuwf:j'"' (18 up to 36 months) F~ll::l~~e-plus Full-time Three-qual'"'',-tir''"' One-half-time Three and Four Year Olds Full-time-plus Full-time Three-qt."""'",_d,,,., ,,. "' ~- ~..-'"'"" F: '"'nnf;,..,n If Needs Full-time-plus Full-time Three-qua''"'',-tir''"' One-half-time Limited and Non-English Proficient Full-,i,ne-plus Full-time Three-quarters-time One-half-time At Risk of Abuse or Neglect Full-time-plus Full-time Three-'" ""''"-d"'"' n, '"-,.,,;, ov Severely Disabled Full-time-plus Full-time Three-quar,.,,,-tir,,., One-half-time - - TOTAL DAYS OF ENROLLMENT 1,553 1,553 -~ 1, Comments- If necessary, attach additional sheets to explain adjustments: AUD 8501, Pa g e 2 of 4 FY California De p artment of Education 85

88 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Placer County Office of Education Vendor No Fiscal Year End: June 30, 2017 Contract No. CSPP-6340 COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL AUDIT ADJUSTMENT CUMULATIVE FISCAL YEAR PER FORM INCREASE OR SECTION Ill -REVENUE YEAR PER AUDIT CDFS 8501 (DECREASE) RESTRICTED INCOME Child Nutrition Programs $728 $0 $728 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Subtotal $728 $0 $728 Transfer from Reserve - General 0 Transfer from Reserve - Professional Development 0 Subtotal $0 $0 $0 Family Fees for Certified Children Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 59,799 59,799 Head Start Program (EC 8235(b)) 0 TOTAL REVENUE $60,873 $0 $60,873 SECTION IV - REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 41,676 41, Classified Salaries 1 '123 1 ' Employee Benefits 14,019 14, Books and Supplies 6,889 6, Services and Other Operating Expenses 9,074 9, /6200 Other Approved Capital Outlay New Equipment (program-related) Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 Start-Up Expenses (service level exemption) 0 Budget Impasse Credit 0 Indirect Costs. Rate: 0.42% (Rate is Se!f Calculating) TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $73,088 $0 $73,088 TOTAL ADMINISTRATIVE COSTS (included in section 1vabove) $307 $0 $307 FOR CDFA&I USE ONLY: Independent Auditor's Assurances on Agency's compliance with Contract Funding Terms and Conditions and Program Requirements of the California Department of Education, Early Education and Support Division: Eligibility, enrollment, and attendance records are being maintained as required (check YES or NO): YES COMMENTS - If necessary, attach additional sheets to explain adjustments: Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO):YES Gil NO SUPPLEMENTAL REVENUES OR EXPENSES- Check this box and omit page 4 if there are no supplemental revenues or expenses to report. AUD 8501, Page 3 of 4 (FY ) California Department of Education 86