REPORT ON EXAMINATION OF FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION. YEAR ENDED JUNE 30,2016 (With Comparative Totals for 2015)

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1 COMMUNITY CHILD CARE COUNCIL. OF SONOMA COUNTY, INC. REPORT ON EXAMINATION OF FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION YEAR ENDED JUNE 30,2016 (With Comparative Totals for 2015)

2 CONTENTS INDEPENDENT AUDITORS' REPORT... 1 FINANCIAL STATEMENTS Statement of Financial Position Statement of Activities Combined Statement of Cash Flows NOTES TO FINANCIAL STATEMENTS... 7 ADDITIONAL INFORMATION Schedule of Expenditures of Federal and State Awards Combining Statement of Financial Position Combining Statement of Revenue, Expenses and Changes in Net Assets 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 SUPPLEMENTAL REPORTING REQUIREMENTS FOR THE CALIFORNIA DEPARTMENT OF EDUCATION General Information Schedule of Expenditures by State Categories Schedule of Equipment Expenditures and Expenditures for Buildings and Improvements Audited Final Reserve Account Cash Activity Report Audited Final Fiscal Reports Combining Schedule of Administrative Costs Relating to the California Department of Education Programs SCHEDULE OF FINDINGS AND QUESTIONED COSTS... 62

3 RANDOLPH SCOTT & COMPANY CERTIFIED PUBLIC ACCOUNTANTS I N c. Board of Directors Community Child Care Council of Sonoma County, Inc. Santa Rosa, California INDEPENDENT AUDITORS' REPORT November 14, 2016 Report on the Financial Statements We have audited the accompanying financial statements of Community Child Care Council of Sonoma County, Inc., which comprise the statement of financial position as of June 30, 2016, and the related statements of activities, and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our 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 consolidated 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. NORTHERN CALIFORNIA 1 COMMERCIAL BLVD., SUITE 101, NOVATO, CA (415) SOUTHERN CALIFORNIA 9663 SANTA MONICA BLVD., BEVERLY HILLS, CA (888) /RSCOCPAS.COM Members of American Institute and California Society of Certified Public Accountants, The Cantor for Public Company Audit F~rms and Governmental Audit Quality Center

4 Board of Directors Community Child Care Council of Sonoma County, Inc. November 14, 2016 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Community Child Care Council of Sonoma County, Inc., as of June 30, 2016, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Other Matters Our audit was conducted for the purpose of forming an opinion 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 Federal Awards (Uniform Guidance), the combining statements of financial position and revenue, expenses and changes in net assets, and the supplemental reporting requirements of the California Department of Education found on pages 32 through 61 is presented for purposes of additional analysis and is not a required part of the consolidated 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 consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated 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, 2016 on our consideration of Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, Inc.'s internal control over financial reporting and compliance. 2 RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certifred Public Accountants and SEC Practice Section ' ~

5 Board of Directors Community Child Care Council of Sonoma County, Inc. November 14,2016 Report on Summarized Comparative Information We have previously audited the Community Child Care Council of Sonoma County, Inc.'s 2015 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated December 1, In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2015 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 Practice Section

6 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY 2 INC. STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 (With Comparative Totals for 2015j Temporarily Total All Fund ASSETS Unrestricted Restricted 6/30/2016 6/30/2015 CURRENT ASSETS: Cash and Cash Equivalents (Note A) $ 419,734 $ 974,934 $ 1,394,668 $ 2,089,942 Accounts Receivable 8,670 8,670 4,555 Grants Receivable (Note D) 1,322,767 1,322, ,197 Prepaid Expenses 63,388 63,388 49,165 1,814, ,934 2,789,493 2,695,859 PROPERTY AND EQUIPMENT (Note E) 282, , ,223 DEPOSITS 46,002 46,002 21,415 TOTAL ASSETS $ 1,860,561 $ 1,257,129 $ 3,117,690 $ 3,030,497 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Line of Credit (Note F) $ - $ - $ - $ Accounts Payable and Accrued Expenses 315, , ,617 Accrued Provider Payments 1,017,252 1,017,252 1,009,274 CCFP Advance 21,300 21,300 23,858 Grant Payable (Note G) 182, , ,196 CDE Reserve (Note H) 117, , ,295 Parent Fee Advance ,038 1,655,306 1,655,306 1,701,278 COMMITMENTS AND CONTINGENCY (Note N) TOTAL LIABILITIES 1,655,306 1,655,306 1,701,278 NET ASSETS: Unrestricted 205, , ,220 Temporarily Restricted (Note B) 974, , ,776 Temporarily Restricted - Equipment 282, , , ,255 1,257,129 1,462,384 1,329,219 TOTAL LIABILITIES AND NET ASSETS $ 1,860,561 $ 1,257,129 $ 3,117,690 $ 3,030,497 See Notes To Financial Statements. 4

7 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) Temporarily Unrestricted Restricted REVENUES AND OTHER SUPPORT Grants and Contract Income $ 15,276,995 $ 518,399 $ Donations & Other Support 40,138 Parent Fees & Fee for Service 574,852 Interest & Investment Income Fund raising 78,950 Miscellaneous Income 13,236 Net Assets Released From Restrictions (Note C): Satisfaction of Program Restrictions 367,887 (367,887) Expiration of Time Restrictions 3,354 {3,354} Total Revenues and Other Support 16,355, ,158 Total All Fund 6/30/2016 6/30/ ,795,394 $ 15,187,034 40,138 36, , ,407 78, '186 13,236 4,193 16,502,570 15,839,686 EXPENSES AND LOSSES: Resource & Referral 348,900 Child Nutrition Programs 2,280,387 First 5 Programs 1,516,161 Alternative Payment 8,337,358 Child Care Centers 3,805,681 General I Unrestricted 30,184 Fundraising 19, , ,792 2,280,387 2,411,118 1,516,161 1,075,279 8,337,358 8,137,594 3,805,681 4,011,744 30,184 30,624 19,706 17,092 Total Expenses and Losses 16,338,377 16,338,377 15,980,243 CHANGE IN NET ASSETS 17, , ,193 (140,557) ADJUSTMENTS TO TEMPORARILY RESTRICTED NET ASSETS (Note A): Additions/Disposals to Restricted Equipment 19,394 Depreciation of Restricted Equipment (50,422) 19, ,908 (50,422) (50,979) NET ASSETS, Beginning of Year 188,220 1,140,999 1,329,219 1,418,847 NET ASSETS, End of Year $ 205,255 $ 1,257,129 $ 1,462,384 $ 1,329,219 See Notes To Financial Statements. 5

8 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY 1 INC. COMBINED STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) CASH FLOWS FROM OPERATING ACTIVITIES: Year Ended Change in Net Assets $ 164,193 $ (140,557) Adjustments to Reconcile Net Revenue and Support to Cash Provided by Operating Activities: Depreciation, net of amount charged to Net Assets (Note E) (Increase) I Decrease in Assets: Accounts Receivable (4,115) (497) Grants Receivable (770,570) 657,089 Prepaid Expenses (14,223) 44,618 Deposits (24,587) (3,025) Increase I (Decrease) in Liabilities: Accounts Payable and Accrued Expenses (26,897) (136,286) Accrued Provider Payments 7,978 56,105 CCFP Advance (2,558) 958 Grant Payable (21,747) 81,379 CDE Reserve (2,314) 24,077 Parent Fee Advance (434} 149 Total Adjustments (859,467} 724,567 Net Cash Provided (Used) By Operating Activities: (695,274) 584,010 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Equipment, net of amount charged to Net 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 (695,274) 584,010 CASH AND CASH EQUIVALENTS, beginning of year 2,089,942 1,505,932 CASH AND CASH EQUIVALENTS, end of year $ 1,394,668 $ 2,089,942 See Notes To Financial Statements. 6

9 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE A-GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Community Child Care Council of Sonoma County, Inc., (4Cs) was founded as a nonprofit public benefit corporation in The mission of the Community Child Care Council is to inspire our community to support the well-being of every child and to improve the quality and availability of child care in Sonoma County. 4Cs is primarily publicly funded through state and local governmental units. Major Programs Resource and Referral The Community Child Care Council is one of 59 statewide Resource and Referral organizations, and is a member of the California Resource and Referral Network. 4Cs Sonoma County R&R provides over 1,800 child care referrals to over 570 licensed family child care homes and child care centers annually. The services of the R&R are free to everyone. In addition to child care referrals, 4Cs offers regular trainings, and technical assistance over the phone and by . 4Cs assists clients by providing information about a range of topics including: child development; how to become a licensed child care provider; provider/parent relationships; choosing quality child care; working with children with special needs; childhood nutrition; advocacy; and a variety of other topics of concern for parents and providers. Child Health and Nutrition 4Cs is responsible for the administration of the Child and Adult Care Food Program (CACFP) which is federally funded by the United States Department of Agriculture and administered by the California State Department of Education, Nutrition Services Division. The Child Health and Nutrition Division reimburse licensed child care providers for nutritious meals and snacks served to children in their care. Child Development Services 4Cs operates twelve preschools/child development programs throughout Sonoma County. Fees are on a sliding scale. The ages served varies from center to center, but includes ages two to six years. The 4Cs centers offer eligible families a safe and caring, developmentally appropriate environment for their children, in both full and part-day programs. Parental Choice Voucher Program Parental-choice child care is available for income eligible families and those referred by Child Protective Services or CaiWORKs programs. Families may be eligible for free or low-cost child care services in a licensed or license-exempt child care facility. Families interested in child care may request to be placed on the centralized eligibility waiting list. 7

10 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Cort}Qarative Totals for 2015) NOTE A-GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accrual Basis 4Cs maintains its accounting records on the accrual method of accounting. Fund Accounting To ensure observance of limitations and restrictions placed on the use of resources available to 4Cs, the accounts of 4Cs are maintained in accordance with the principles of fund accounting. Fund accounting is the procedure 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. 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 Values 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 for cash and cash equivalents approximates its fair value. Accounts receivable and accounts payable: The carrying amounts of accounts receivable and accounts payable in the balance sheet approximates fair value. Advances and Deferred Revenue: The carrying value of 4Cs advances and deferred revenue approximates its fair value. Concentration of Credit Risk Financial instruments that potentially subject 4Cs to concentrations of credit risk consist principally of uninsured cash balances. 4Cs places its cash deposits with high-credit quality financial institutions. At times, balances in 4Cs's cash accounts may exceed the Federal Deposit Insurance Corporation (FDIC) limit of $250,000. The uninsured balances at June 30, 2016 were approximately $1,419,000. 8

11 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE A-GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Concentration of Revenue Sources During the year ended June 30, 2016, 4Cs had one major revenue funding source, the California Department of Education, which accounted for approximately 81% of the total revenue of 4Cs. 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 maturity dates of investments. Accounts Receivable The Organization does not maintain an allowance for estimated uncollectible accounts. When an account is determined uncollectible, it is deducted from the accounts receivable and charged to expense. The carrying amounts for accounts receivable reported in the statement of financial position approximates fair values. Prepaid Expenses Prepaid insurance and other costs are expensed ratably over their respective terms of agreement. Property and Equipment As further discussed in Note E, property and equipment with an asset value over $5,000 are stated at cost and/or at fair value at the time of donation. Assets are depreciated using the straight-line method over the estimated useful lives of the assets. Equipment and capital improvements funded by restricted grants are recorded as expenditures in the year of acquisition, in accordance with funding terms and conditions. These assets are then recapitalized by adding the acquisitions to the property and equipment account with a corresponding entry to the property and equipment net asset account. Subsequent depreciation on previously expensed assets is shown as a reduction directly to net assets. Retirements are reflected as decreases to the property and equipment account, with a corresponding reduction to net assets. Titles to those assets are transferred to 4Cs upon meeting the conditions of the grant. 9

12 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE A-GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Vacation and Sick Leave Benefits Accumulated unpaid employee vacation benefits are recognized as liabilities of 4Cs. During the first three years of employment, regular, full-time employees are entitled to a paid vacation of twelve (12) working days. After the third year of employment, regular, full-time employees are entitled to seventeen (17) days of vacation. After the fifth year, regular, full-time employees are entitled to the maximum of twenty-two (22) days. Part-time and school year employees are entitled to vacation days on a pro-rated basis reflecting their hours worked per week or the number of months worked respectively. The value of accumulated vacation at June 30, 2016 was approximately $206,298. Sick leave benefits are accumulated for each employee. The employees do not gain vested rights to sick leave. Accumulated sick leave benefits are not recognized as liabilities of 4Cs since payments of such benefits are not probable or estimable. Revenue Recognition Contributions and unconditional grants are recognized as support and revenues when they are received or unconditionally pledged. These contributions and gifts are shown as restricted support and revenues if they are subject to time or donor restrictions. Temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from restrictions when a stipulated time restriction ends, purpose restriction is accomplished, or both. However, temporarily restricted contributions and grants are reported as unrestricted support and revenues if the restriction is met in the same year that the gift is received. Conditional contributions are not recorded as support and revenues until the conditions are met. Payments classified as exchange transactions (reciprocal transfers between two entities in which goods and services of equal value is exchanged) are not recorded as other support and revenue until allowable expenditures are incurred. Allocation of Expenses The costs of operating the various programs and other activities have been summarized on a functional basis in the combining statement of activities. As further discussed in Note K, certain costs have been allocated among the programs benefited based upon the Agency's cost allocation plan. 10

13 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE A-GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Presentation of Expenses The statement of activities contains information about the costs associated with the Agency's services and how it uses its resources. This results in the expenses being reported by the Agency's major programs after administrative expenses have been allocated. The expenses of the Agency as allocated by their functional and natural classification are as follows: Program Management Services & General Fund raising Total Personnel Costs $ 4,857,077 $ 493,947 $ 1,694 $ 5,352,718 Outside Services 9,309,606 9,309,606 Rent & Occupancy 318,807 55, ,756 Supplies & Related Goods 783,028 12,908 4, ,078 Other Operating Costs 403,428 83,921 13, ,219 Income Taxes $ 15,671,946 $ 646,725 $ 19,706 $ 16,338,377 4Cs is exempt from federal and state income tax under Section 501 (c)(3) of the Internal Revenue Code, and Section (d) of the California Revenue and Taxation Code. Generally accepted accounting principles provide accounting and disclose guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Agency in its federal and state exempt organization tax returns are more likely than not to be sustained upon examination. The Agency's returns are subject to examination by federal and state taxing authorities, generally for three and four years, respectively, after they are filed. Summarized Financial Information for 2015 The financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the organization's financial statements for the year ended June 30, 2015, from which the summarized information was derived. 11

14 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE 8- TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets are part of the net assets of 4Cs resulting from contributions and other inflows of assets whose use by 4Cs is limited by donor- imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of 4Cs pursuant to those stipulations. At June 30, 2016, temporarily restricted net assets consisted of the following: Resource & Referral: R&R Network - Parent Voices $ 5,269 Other R&R programs 5,218 Child Nutrition Programs Kaiser Permanente 120 First 5 Programs First 5- Value in Preschool 559,238 Other First 5 Programs 31,131 Child Care Centers Restricted donations - Centers 304,542 General Other 69,416 $ 974,934 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. At June 30, 2016, temporarily restricted net assets released from donor restriction consisted of the following: Resource & Referral: R&R Network - Parent Voices $ 8,387 First 5 Programs First 5 -Value in Preschool 126,530 Other First 5 Programs 94,550 County of Sonoma 89,340 Child Care Centers: California Dept. of Education 40,337 General Other 12,097 $ 371,241 12

15 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTED- GRANTS RECEIVABLE At June 30, 2016, grants receivable consisted of the following: Resource & Referral: Child Nutrition Programs: First 5 Programs Alternative Payment Center Programs: General Fund: California Dept. of Education California Dept. of Education First Five County of Sonoma California Dept. of Education California Dept. of Education Renovation& Repair CDE -Child Care Food Program Roseland School District Other $ $ 21, , ,028 28, ,034 56,542 84,433 49, ,803 15,501 1,322,767 NOTE E- PROPERTY AND EQUIPMENT At June 30, 2016, property and equipment consisted of the following: Cost I Basis Accumulated Depreciation Building & Improvements $ 424,494 $ 186,932 Equipment 173, ,560 Vehicle 18,636 18,636 Furniture & Fixtures 81,442 81,442 $ 697,765 $ 415,570 $ $ Net Book Value 237,562 44, ,195 Depreciation expense for the year ended June 30, 2016 was $50,422 of which the entire amount was charged to the property and equipment net assets. NOTE F- LINE OF CREDIT 4Cs has a $1,000,000 unsecured revolving line of credit with Summit State Bank. The line of credit has a maturity date of February 5, 2018 and an interest rate of 4.5%. At June 30, 2016, there was no balance due on the line of credit. 13

16 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE G- GRANT PAYABLE At June 30, 2016, Grant Payable consisted of the following: Alternative Payment: California Dept. of Education Other Programs $ 160,776 21,673 $ 182,449 NOTE H- STATE CHILD DEVELOPMENT RESERVES Child development contractors with the California Department of Education (CDE) are allowed, with prior 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. The balance for each of the three reserve accounts at June 30, 2016 totaled $117,981, which is recorded as an asset in the cash account. Also, upon termination of child development contracts with the CDE, 4Cs would have to return the reserve funds to the CDE. As such, the offsetting balance of $117,981 is recorded as a liability in the Agency's financial statements. NOTE I- NUTRITION PROGRAMS 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 State Awards. No nutrition schedules are included in this audit because the audit is not a program-specific nutrition audit, and no program findings or adjustments were calculated with this audit. NOTE J- 403(b) RETIREMENT PLAN 4Cs maintains a contributory retirement plan available for its employees. It allows participants to make tax deferred investment contributions. The Plan qualifies under the provisions of Section 403(b) of the Internal Revenue Code of 1954, as amended. During the year ended June 30, 2016, 4Cs made no contributions to the plan. NOTE K- COST ALLOCATION PLAN The Agency updates its cost allocation plans annually or more frequently when there is a need due to changes in program enrollment or other cost drivers. The Finance Committee of the Agency reviews the cost allocation plan annually. Its written cost allocation plan, including descriptions and percentages is on file in the organization's main accounting office. 14

17 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE K- COST ALLOCATION PLAN - (Continued) The Agency applies several methods for allocating costs: Direct Costs. Costs identified 100 percent to a specific program are charged directly to that program. Shared Costs. Costs identified to specific multiple programs or activities are shared between the programs benefitting. Payroll costs are allocated using individual time sheets that report the actual time spent by employees in each program each day. Rent and associated utilities, telephone, maintenance, and insurance are allocated using the square footage of building space occupied by each program, according to floor plans and/or room measurements. Common areas are shared based on the percentage of personnel costs charged to a specific program to the total personnel costs of the Agency. Office expenses such as supplies, and postage and printing are allocated based on a transaction analysis of each of the programs. Other expenses such as office supplies, advertising, contracts/consultants, dues/fess and memberships are allocated based on FTE per department. NOTE L- SUBCONTRACT AGREEMENT The Agency entered into multiple subcontract agreements wh ere 4Cs operates certain center programs for the fiscal year ended June 30, These subcontracts are included in the schedule of expenditures of federal and state awards and the supplemental reporting requirements of the CDE in this audit report. The Agency received the following CDE contract funds under subcontract agreements: Roseland School District: State Preschool Prekindergarten & Family Literacy CSPP-5567 CPKS $ 621,787 2,500 $ 624,287 NOTE M -TRANSFERS The transfers represent primarily the utilization of unrestricted funds to offset restricted operating deficits. 15

18 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. NOTES TO FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016 (With Comparative Totals for 2015) NOTE N- COMMITMENTS AND CONTINGENCY Commitments: 4Cs leases various office space and equipment under non-cancelable agreements. The rent expense for the year ended June 30, 2016 was $344,360. Future minimum operating lease payments are as follows: Year Ending June 30th Office Space & Storage 2017 $ 249, , , ,120 $ 891,758 Contingency: 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. 4Cs 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. 4Cs management is of the opinion that the organization has complied with the terms of all grants. NOTE 0 - SUBSEQUENT EVENTS The Agency has evaluated their financial position and activities from the June 30, 2016 year end of this report through November 14, 2016 which is the date that the financial statements were available to be issued. No material subsequent event items that required recognition or disclosure were identified. 16

19 ADDITIONAL INFORMATION

20 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED JUNE 30, 2016 Federal Entity Grantor I Pass-Through Grantor I CFDA Identifying Grant Award Amount Expenditures or Earnings or Program Title Number Number Federal. ;;:;:"0State ' Total Federal. state Total U.S. De1:1artment of Health & Human Services: Pass-Through Program From: California DeQartrnent of Education- Resource & Referral CRRP-5060 $ 29,861 $ 193,487 $ 223,348 $ 29,861 $ 193,261 $ 223,122 Child Care Initiative Project CCIP ,000 3,332 33,332 30,000 3,332 33,332 CCDF Health & Safety CHST ,247 5,247 5,247 5,247 Alternative Payment CAPP ,459, ,374 2,151,091 1,234, ,300 1,816,005 Alternative Payment - Stage 2 -- C2AP ,076,649 4,076,649 3,927,107 3,927,107 Alternative Payment- Stage C3AP ,320,682 1,060,030 2,380,712 1,177,761 1,002,709 2,180,470 State Preschool / CSPP ,508 2,572,152 3,231, ,823 2,020,841 2,545,664 General Child Care Center / CCTR ,124 59, ,962 45,124 46,725 91,849 Prekindergarten & Family Literacy Program -- CPKS ,000 5,000 5,000 5,000 Facilities Renovation & Repair -- CRPM ,210 99,210 36,983 36,983 Roseland School District- State Preschool / CSPP , , , ,787 Prekindergarten & Family Literacy Program - CPKS ,500 2,500 2,500 2,500 Subtotal CCDF Cluster 3,550,139 9,385,359 12,935,498 3,047,521 8,441,545 11,489,066 County of Sonoma, Human Services DeQt.- Road to Early Achiev. & Develop of Youth CCCC-READ 794, , , ,962 $ 3,550,139 $ 10,180,005 $ 13,730,144 $ 3,047,521 $ 8,646,507 $ 11,694,028 U.S. De[!artment of Labor: Pass-Through Program From: Coun!Y of Sonoma, Human Services DeQt.- Workforce Investment Act ET -CCC-CS-1415 $ 80,000 $ $ 80,000 $ 20,420 $ $ 20,420 U.S. De[!artment of Agriculture: Pass-Through Program From: California DeQartment of Education- Child Care Food Program- Day Care Homes A $ 2,263,671 $ $ 2,263,671 $ 2,263,671 $ $ 2,263,671 Child Care Food Program - Centers F 200, , , ,719 County of Sonoma, DeQt. of Health Services- SNAP-Ed AOO 42,000 42,000 19,409 19,409 $ 2,506,390 $ $ 2,506,390 $ 2,483,799 $ $ 2,483,799 Total Federal and State Awards $ 6,136,529 $ 10,180,005 $ 16,316,534 $ 5,551,740 $ 8,646,507 $ 14,198,247 Note 1. Significant Accounting Policies: The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of Community Child Care Council of Sonoma County, Inc. and is presented on the accrual basis of accounting. The Federal 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 Awards (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. ->. (X) Note 2. De Minimis Cost Rate: The Agency did not use the 10% de minimis cost rate within their financial statements.

21 COMMUNITY CHILD CARE COUNCil OF SONOMA COUNTY, INC. COMBINING STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 (With Comparative Totals for 2015) Restricted Programs Support Services Resource & Child Nutrition Alternative Referral Programs First 5 Payment Child Care General & Total All Fund ASSETS Programs DCH Programs Programs Centers Unrestricted Fundraising 6/30/2016 6/30/2015 CURRENT ASSETS: Cash and Cash Equivalents $ 17,581 $ 24,371 $ 590,369 $ 189,399 $ 408,625 $ 164,323 $ $ 1,394,668 $ 2,089,942 Accounts Receivable 8,670 8,670 4,555 Grants Receivable 21, , , , ,515 15,501 1,322, ,197 Prepaid Expenses ,388 63,388 49,165 Due (to)/from Other Funds {14,674} {51,730} {230,903} 539,821 {544,265} 301,751 Total Current Assets 24, , , , , ,963 2,789,493 2,695,859 PROPERTY AND EQUIPMENT 282, , ,223 DEPOSITS 46,002 46,002 ~415 TOTAL ASSETS $ 24,545 $ 361,817 $ 590,369 $ 866,254 $ 401,545 $ 873,160 $ $ 3,117,690 $ 3,030,497 liabilities AND NET ASSETS CURRENT LIABILITIES: Line of Credit $ $ $ $ $ $ $ $ $ Accounts Payable and Accrued Expenses 315, , ,617 Accrued Provider Payments 340, ,855 1,017,252 1,009,274 CCFP Advance 21,300 21,300 23,858 Grant Payable 7, ,775 13, , ,196 CDE Reserve 6,644 28,624 82, , ,295 Parent Fee Advance ,038 Total Current Liabilities 14, , ,254 97, ,294 1,655,306 1,701,278 COMMITMENTS AND CONTINGENCY Total Liabilities 14, , ,254 97, ,294 _1,655,306 1,701,278 NET ASSETS: Unrestricted 205, , ,220 Temporarily Restricted 10, , ,542 69, , ,776 Temporarily Restricted - Equipment 282, , ,223 Total Net Assets 10, , , ,866 1,462,384 1,329,219 TOT AlliABIUTIES & NET ASSETS $ 24,545 $ 361,817 $ 590,369 $ 866,254 $ 401,545 $ 873,160 $ $ 3,117,690 $ 3,030,497,_ CD

22 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2016 (With ComQarative Totals for 2015) Restricted Programs Su~~ort Services Resource & Child Nutrition Alternative Referral Programs First 5 Payment Child Care General & Total All fund -~-~grams DCH Programs Programs Centers Unrestricted Fundraising 6/30/2016 6/30/2015 REVENUE Grants and Contract Income $ 324,439 $ 2,272,109 $ 1,513,844 $ 7,944,002 $ 3,593,842 $ - $ - $ 15,648,236 $ 15,346,887 Donations & Other Support 935 2,757 28,593 7,853 40,138 63,132 Parent Fees & Fee for Service 24, , ,232 1, , ,407 Interest & Investment Income Fund raising 2,270 33,921 42,759 78,950 81,186 Miscellaneous Income ,646 1, ,236 4,193 Total Revenue 352,554 2,272,369 1,513,844 8,337,358 3,798,463 30,212 50,612 16,355,412 16,025,805 EXPENSES Certified Salaries 175,703 93, , ,766 1,621,366 1,418 1,452 2,897,153 2,812,054 Classified Salaries 31, ,888 46, , ,865 1,476,938 1,484,332 Payroll Taxes 19,752 21,098 52,795 97, ,519 2, , ,582 Employee Benefits 15,510 21,007 40,077 91, , , ,744 Supplies: Program 6,926 1,322 2,327 10,796 42,364 1,479 3,405 68,619 82,229 Postage & Duplication 2,332 5,187 3,865 26,272 20, ,414 45,726 Food 1, ,083 3, , ,280 Client Support/Incentives 4,559 1, , ,567 27,095 Non-Capitalized Equipment 427 1, ,231 7,422 14,946 24,688 Other '158 3,682 25, ,754 44,559 Services & Other Operating Expenses: Telephone 5,924 2,048 2,765 10,010 16, ,071 39,177 Contracts & Consultants 29,231 17,745 25,070 74, ,108 3,052 11, , ,209 Provider Payments 1,961, ,070 6,863,426 9,094,485 9,309,606 Travel & Mileage 4,626 8,085 10,939 4,169 22, ,031 50,590 Dues, Fees & Memberships 7,220 1,867 2,391 12,009 12,857 3,717 2,343 42,404 42,445 Insurance 1,895 2,458 4,052 13,881 17,695 8,910 48,891 41,994 Utilities ,070 30,270 30,199 Rent 33,041 18,447 25,024 94, ,431 1, , ,557 Audit & Legal 2,743 3,204 5,792 18,002 5,860 35,601 18,298 Staff Training & Conferences 3, , , ,819 33,656 Other Expenses 1,584 1,783 2,952 13,353 69,796 3,494 92,962 86,083 Fund raising 33,899 33,899 40,102 Equipment & Capital Purchases 12,017 12, ,038 Total Expenses 348,900 2,280,387 1,516,161 8,337,358 3,805,681 30,184 19,706 16,338,377 15,980,243 CHANGE IN NET ASSETS 3,654 {8,018) {2,317) {7,218) 28 30,906 17,035 45,562 Adjustments To Net Assets: Transfers {3,654} 8,018 2,317 7,218 17,007 (30,906) UNRESTRICTED NET ASSETS, beginnin 188, , ,658 N 0 UNRESTRICTED NET ASSETS, end of year $ - $ - $ - $ - $ - $ 205,255 $ - $ 205,255 $ 188,220

23 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2016 Resource & Referral Programs COD Child Care Initiative Project Total Resource & COD CCIP Match First Five Other Resource & Referral Health & COD First Five Parent Parent R&R Referral Program Safet~ CCIP VIP Voices Voices Programs ~rams REVENUE Grants and Contract Income $ 223,122 $ 5,247 $ 33,332 $ 6,664 $ 20,387 $ 35,687 $ $ 324,439 Donations & Other Support Parent Fees & Fee for Service ,000 22,845 24,910 Fundraising 2,270 2,270 Total Revenue 223,842 5,247 33,677 6,664 24,267 35,687 23, ,554 EXPENSES Certified Salaries 105,390 1,225 26,060 6,125 11,291 25, ,703 Classified Salaries 30, ,164 Payroll Taxes 12, , ,615 2,636 19,752 Employee Benefits 11, ,575 2,817 15,510 Supplies: Program 1, ,000 1, ,926 Postage & Duplication 2, ,332 Food 1, ,781 Client Support/Incentives 3, ,559 Non-Capitalized Equipment Other Services & Other Operating Expenses: Telephone 5, ,924 Contracts & Consultants 6, , ,897 29,231 Travel & Mileage 2, , ,626 Dues, Fees & Memberships 6, ,220 Insurance 1, ,895 Utilities Rent 31, ,041 Audit & Legal 2, ,743 Staff Training & Conferences , ,748 Other Expenses 1, ,584 Total Expenses 223,842 5,247 33,677 6,664 24,267 35,687 19, ,900 N CHANGE IN NET ASSETS $ - $ - $ - $ - $ - $ - $ 3,654 $ 3,654

24 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2016 First 5 Programs Snap-Ed Farm First Five Value in First Five First Five & Valley of to School VIP PreK Preschool First Five ORIS ORIS the Moon ECC Scholarship Petaluma ORIS Stipends lnfant!t oddler REVENUE Grants and Contract Income $ 21,862 $ 224 $ 307,027 $ 126,530 $ 655,739 $ 143,095 $ 54,405 $ Total Revenue 21, , , , ,095 54,405 EXPENSES Certified Salaries 10, ,250 31, ,202 82,500 3,978 Classified Salaries 4, ,099 38,000 Payroll Taxes ,501 2,827 18,929 13, Employee Benefits ,442 2,858 11,415 9,532 Supplies: Program Postage & Duplication Client SupporUincentives ,080 50,000 Non-Capitalized Equipment Other SeNices & Other Operating Expenses: Telephone 1, Contracts & Consultants 7,228 10,672 1,561 1,731 Provider Payments 187,809 81,261 Travel & Mileage 1, ,962 Dues, Fees & Memberships Insurance 1, Utilities Rent 11,982 3,100 3,161 Audit & Legal 1, ,068 Staff Training & Conferences ,255 Other Expenses Total Expenses 20, , , , ,095 54,405 CHANGE IN NET ASSETS $ 912 $ - $ $ $ (201) $ $ $ County of Total Sonoma First 5 Read~ ~rams 204,962 $ 1,513, ,962 1,513, , ,174 2,070 46,186 10,100 52,795 7,117 40, ,327 1,988 3,865 49, , , ,765 3,878 25, ,070 1,797 10, ,391 1,235 4, ,781 25,024 2,432 5,792 1,455 19,285 1,569 2, ,990 1,516,161 (3,028) $ (2,317) N N

25 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2016 Alternative Payment Alternative Pymt Alternative Pymt Alternative CaiWorks CaiWorks Pa:tment Stage 2 Stage 3 REVENUE Grants and Contract Income $ 1,816,005 $ 3,927,107 $ 2,180,470 $ Parent Fees & Fee for Service 74, , ,645 Miscellaneous Income 1,783 5,441 3,422 Total Revenue 1,892,756 4,082,645 2,341,537 EXPENSES Certified Salaries 120, , ,760 Classified Salaries 115, , ,430 Payroll Taxes 22,598 46,785 27,310 Employee Benefits 23,103 44,067 23,434 Supplies: Program 2,479 4,974 3,343 Postage & Duplication 4,990 12,703 8,579 Non-Capitalized Equipment 1,074 2,500 1,657 Other 798 1,729 1,155 Services & Other Operating Expenses: Telephone 1,806 4,870 3,334 Contracts & Consultants 13,422 35,967 24,507 Provider Payments 1,550,451 3,371,194 1,933,666 Travel & Mileage 790 2,006 1,371 Dues, Fees & Memberships 2,182 5,832 3,932 Insurance 2,617 6,672 4,592 Utilities Rent 23,942 45,715 23,884 Audit & Legal 3,497 8,666 5,839 Staff Training & Conferences Other Expenses 2,796 6,269 4,288 Total Expenses 1,892,756 4,082,645 2,341,537 CHANGE IN NET ASSETS $ - $ - $ - $ County of Sonoma WIA Total Alternative Payment Programs 20,420 $ 7,944, ,710 10,646 20,420 8,337,358 9, , , , ,403 10,796 26,272 5,231 3,682 10, ,522 8,115 6,863, , ,009 13, ,138 18, ,353 20,420 8,337,358 - $ N w

26 ~ ~ $ COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY 1 INC. COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30, 2016 Child Care Center Programs State General AB172 Repairs & Roseland Preschool Center Literacy Maintenance CSPP-5567 Subtotal CSPP-5564 CCTR-5298 CPKS-5103 CRPM-3082 CPKS-5105 Centers REVENUE Grants and Contract Income $ 2,746,383 $ 91,849 $ 5,000 $ 36,983 $ 624,287 $ 3,504,502 Donations & Other Support Parent Fees & Fee for Service 139,779 26, ,232 Total Revenue 2,886, ,302 5,000 36, ,287 3,671,002 EXPENSES Certified Salaries 1,206,675 60,866 3, ,353 1,621,366 Classified Salaries 669,055 20, , ,865 Payroll Taxes 303,436 12, , ,519 Employee Benefits 179,085 4,403 48, ,992 Supplies: Program 30, ,000 7,710 40,123 Postage & Duplication 15, ,461 20,674 Food 110, ,058 Non-Capitalized Equipment 4, , ,422 Other 20, ,243 25,163 Services & Other Operating Expenses: Telephone 15, ,243 16,882 Contracts & Consultants 77,736 2,865 11,633 92,234 Travel & Mileage 16, ,612 22,002 Dues, Fees & Memberships 10, ,510 12,857 Insurance 13, ,921 17,695 Utilities 28, ,070 Rent 155,124 4,961 12, ,330 Audit & Legal 4, ,243 5,860 Staff Training & Conferences 3, ,594 Other Expenses 30, ,259 2,859 61,476 Equipment & Capital Purchases 5,000 7,377 12,377 Total Expenses 2,900, ,206 5,000 36, ,287 3,677,559 N.j::>. CHANGE IN NET ASSETS $ (13,653) $ 7,096 $ - - $ - $ (6,557)

27 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN NET ASSETS YEAR ENDED JUNE 30,2016 Child Care Center Programs coso Rotary First 5 Total Center Read Me Sonoma Co. Subtotal Center-Based General Donations a Sto!:Y Facility Funds Page 24 Programs REVENUE Grants and Contract Income $ $ $ $ 89,340 $ 3,504,502 $ 3,593,842 Donations & Other Support 314 2, ,757 Parent Fees & Fee for Service 166, ,232 Fundraising 33,921 33,921 Miscellaneous Income 1,711 1,711 Total Revenue 33,921 2,025 2,175 89,340 3,671,002 3,798,463 EXPENSES Certified Salaries 1,621,366 1,621,366 Classified Salaries 789, ,865 Payroll Taxes 384, ,519 Employee Benefits 231, ,992 Supplies: Program 2,241 40,123 42,364 Postage & Duplication 20,674 20,674 Food 2, , ,083 Non-Capitalized Equipment 7,422 7,422 Other 22 25,163 25,185 Services & Other Operating Expenses: Telephone 16,882 16,882 Contracts & Consultants 81,874 92, ,108 Travel & Mileage 22,002 22,002 Dues, Fees & Memberships 12,857 12,857 Insurance 17,695 17,695 Utilities 29,070 29,070 Rent , ,431 Audit & Legal 5,860 5,860 Staff Training & Conferences 3,594 3,594 Other Expenses ,853 69,796 Fund raising 33,899 33,899 Equipment & Capital Purchases 7,017 5,000 12,017 Total Expenses 33,921 2,025 2,241 89,935 3,677,559 3,805,681 N U1 CHANGE IN NET ASSETS - (ill)) (595) (6,557) (7,218)

28 RANDOLPH SCOTT & COMPANY CERTIFIED PUBLIC ACCOUNTANTS, INC. Report on Internal Control Over Financial Reporting and on Compliance and Other Matter Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Report Board of Directors Community Child Care Council of Sonoma County, Inc. Santa Rosa, California November 14, 2016 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 Community Child Care Council of Sonoma County, Inc., which comprise the statement of financial position as of June 30, 2016, 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 Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of Community Child Care Council of Sonoma County, Inc.'s internal control. A deficiency in 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. 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. 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 26

29 Report on Internal Control Over Financial Reporting and on Compliance and Other Matter Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Compliance and Other Matters As part of obtaining reasonable assurance about whether Community Child Care Council of Sonoma County, Inc.'s financial statements are free of 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. We noted certain matters that we reported to management of Community Child Care Council of Sonoma County, Inc. in a separate letter dated November 14, Purpose of this Repor! 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 ublic Accountants, Inc. Novato, California.. RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certified Public Accountants and SEC Practice Section 27

30 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 Auditor's Report November 14, 2016 Board of Directors Community Child Care Council of Sonoma County, Inc. Santa Rosa, California Report on Compliance for Each Major Federal Program We have audited Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, Inc.'s major federal programs for the year ended June 30, Community Child Care Council of Sonoma County, 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 opinion on compliance for each of Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, Inc.'s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. 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 Community Child Care Council of Sonoma County, Inc.'s compliance. NORTHERN CALIFORNIA- 1 COMMERCIAL BLVD., SUITE 101, NOVATO, CA (415) SOUTHERN CALIFORNIA 9663 SANTA MONICA BLVD., BEVERLY HILLS, CA (888) /RSCOCPAS.COM Members ol Amencan Institute and California Society of Certified Public Accountants. The Center for Public Company Audit Firms and Governmental Audit Quality Center 28

31 Report on Compliance for Each Major Federal Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance Opinion on Each Maior Federal Program In our opinion, Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, 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 Community Child Care Council of Sonoma County, 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. 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. RANDOLPH SCOTT & COMPANY Members of American Public Accountants and SEC Pract1ce Sect1on 29

32 Report on Compliance for Each Major Federal Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance 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 30 RANDOLPH SCOTT & COMPANY Members of American Institute and California Society of Certified Public Accountants and SEC Practice Section

33 SUPPLEMENTAL REPORTING REQUIREMENTS FOR THE CALIFORNIA DEPARTMENT OF EDUCATION

34 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. GENERAL INFORMATION YEAR ENDED JUNE 30, 2016 Council name: Address of Council: Type of Council: Community Child Care Council of Sonoma County, Inc. 131-A Stony Circle, Suite 300 Santa Rosa, CA California Nonprofit Public Benefit Corporation State Department of Education program numbers: C2AP-5061 C3AP-5059 CAPP-5067 CCIP-5060 CCTR-5298 CHST-5060 CPKS-5103 Alternative Payment - Stage 2 Alternative Payment - Stage 3 Alternative Payment Child Care Initiative Project General Child Care Center CCDF Health & Safety Prekind/Family Literacy CRPM-3082 CRRP-5060 CSPP F A Renovation & Repair Resource & Referral State Preschool CCFP Day Care Homes CCFP Center Based Executive Director: Melanie Dodson Report period: Number of days operating: Fiscal year ended June 30, 2016 Varies 32

35 CALIFORNIA DEPARTMENT OF EDUCATION COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2016 CDE Resource & Referral Programs CDE Alternative Payment Programs CDE Center-Based Programs Total CDE Child Development Programs Direct Payments to Providers 1000 Certified Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies $ - $ 6,863, , ,766 31, ,835 35, ,873 16,533 45, Services/Other Operating Expenses 90, , Capital Outlay - - Depreciation Start-Up Indirect Costs Total Expenses Claimed for Reimbursement 348,900 8,337,358 Supplemental expenses $ - $ 6,863,426 1,621,366 2,301, ,865 1,313, , , , , , ,532 19,394 19, ,805,681 12,491,939 TOTAL EXPENDITURES $ 348,900 $ 8,337,358 $ 3,805,681 $ 12,491,939 NOTE: NOTE: 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. Any food expenses have been allocated to the appropriate contracts. (.V (.V

36 CALIFORNIA DEPARTMENT OF EDUCATION COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE Direct Payments to Providers 1000 Certified Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies Child Care CCDF Resource Initiative Health & Referral Project & Safety CRRP-5060 CCIP-5060 CHST-5060 $ - $ - $ - 105,390 32,185 1,225 30, ,313 4, ,296 1,100 3, Services/Other Operating Expenses 60,141 2, Capital Outlay Depreciation Start-Up Indirect Costs Total Expenses Claimed for Reimbursement 223,842 40,341 5,247 Other Non-CDE Programs Total CDE Resource & Referral Programs $ - $ 36, , ,164 7,068 35,262 7,598 16,533 27,754 90,238 79, ,900 Supplemental expenses TOTAL EXPENDITURES $ 223,842 $ 40,341 $ 5,247 $ 79,470 $ 348,900 NOTE: 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. w ~

37 CALIFORNIA DEPARTMENT OF EDUCATION COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2016 Direct Payments to Providers 1000 Certified Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies Alternative Alternative Alternative Payment Payment Payment Stage 2 Stage 3 CAPP-5067 C2AP-5061 C3AP-5059 $ 1,550,451 $ 3,371,194 $ 1,933, , , , , , ,430 45,701 90,852 50,744 9,341 21,906 14, Services/Other Operating Expenses 51, ,668 72, Capital Outlay Depreciation Start-Up Indirect Costs Total Expenses Claimed for Reimbursement 1,892,756 4,082,645 2,341,538 Supplemental expenses Other Non-CDE Programs $ 8,115 $ 9,441 1,576 1,287 20,419 Total CDE Alternative Payment Programs 6,863, , , ,873 45, ,477 8,337,358 TOTAL EXPENDITURES $ 1,892,756 $ 4,082,645 $ 2,341,538 $ 20,419 $ 8,337,358 NOTE: 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. w ()l

38 CALIFORNIA DEPARTMENT OF EDUCATION COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE Direct Payments to Providers 1000 Certified Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies General Pre- State Child Care Kindergarten Preschool Center & Family CSPP-5564 CCTR-5298 CPKS-5103 $ - $ - $ - 1,206,675 60,866 3, ,055 20, ,521 16, ,666 2,069 1, Services/Other Operating Expenses 356,166 10, Capital Outlay 5, Depreciation Start-Up Indirect Costs Total Expenses Claimed for Reimbursement 2,900, ,206 5,000 Supplemental expenses TOTAL EXPENDITURES $ 2,900,083 $ 111,206 $ 5,000 Facilities Renovation & Repair CRPM-3082 $ - $ - - 2,347 27,259 7,377 36,983 $ 36,983 $ Subotal Center-Based Programs 1,271, , , , ,402 12,377 3,053,272 3,053,272 NOTE: 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. NOTE: Any food expenses have been allocated to the appropriate contracts. w (j)

39 CALIFORNIA DEPARTMENT OF EDUCATION COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY, INC. SCHEDULE OF EXPENDITURES BY STATE CATEGORIES YEAR ENDED JUNE 30, 2016 Direct Payments to Providers 1000 Certified Salaries 2000 Classified Salaries 3000 Employee Benefits 4000 Books and Supplies Subcontract Subcontract Other Roseland Roseland Non-CDE Preschool Prekinderg. Center CSPP-5567 CPKS-5105 Programs $ - $ - $ - 349, , , ,365 1,993 4, Services/Other Operating Expenses 39, , Capital Outlay - - 7,017 Depreciation Start-Up Indirect Costs Total Expenses Claimed for Reimbursement 621,787 2, ,122 Supplemental expenses TOTAL EXPENDITURES $ 621,787 $ 2,500 $ 128,122 Subtotal Center-Based Page 36 $ $ 1,271, , , , ,402 12,377 3,053,272 $ 3,053,272 $ Total CDE Center-Based Programs 1,621, , , , ,817 19,394 3,805,681 3,805,681 NOTE: 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. NOTE: Any food expenses have been allocated to the appropriate contracts. NOTE: All fundraising expenditures are charged to the Non-CDE center-based programs. (1.) -..,J

40 COMMUNITY CHILD CARE COUNCIL OF SONOMA COUNTY 1 INC. SCHEDULE OF EQUIPMENT EXPENDITURES AND SCHEDULE OF EXPENDITURES FOR BUILDINGS AND IMPROVEMENTS YEAR ENDED JUNE 30, 2016 State Renovation Total Preschool & Repair Equipment Equipment CSPP-5564 CRPM-3082 Expendiures UNIT COST UNDER ~ PER ITEM- None $ $ $ UNIT COST OVER P PER ITEM WITH PRIOR WRITTEN APPROVAL- None UNIT COST OVER ~ PER ITEM WITHOUT PRIOR WRITTEN APPROVAL - None. TOTAL EQUIPMENT EXPENDITURES $ $ $ State Renovation Total Preschool & Repair Buildings Buildings & Improvements CSPP-5564 CRPM-3082 & lmprov. UNIT COST UNDER ~ PER ITEM- Flowery Plumbing/Electrical Upgrades $ $ 7,377 $ 7,377 UNIT COST OVER ~ PER ITEM WITH PRIOR WRITTEN APPROVAL- Gold Ridge Expansion Construction in Progress 5,000 5,000 UNIT COST OVER ~ PER ITEM WITHOUT PRIOR WRITTEN APPROVAL- None. TOTAL BUILDING & IMPROVENTS $ 5,000 $ 7,377 $ 12,377 NOTE: Agency's capitalization threshold is $5,

41 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: Community Child Care Council of Sonoma County, Inc. Fiscal Year End: June 30, 2016 Vendor No. 49-B822 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. RESERVE ACCOUNT TYPE (Check One): COLUMN A COLUMN B COLUMN C 0 Center Based AUDIT [2] Resource and Referral ADJUSTMENT PER AGENCY INCREASE OR 0 Alternative Payment (DECREASE) PER AUDIT LAST YEAR: 1. Beginning Balance (must equal ending balance from Last Year's AUD 9530-A) $2,973 $0 $2, Plus Transfers from Contracts to Reserve Account (based on last year's post-audit CDFS 9530, Section IV): Contract No. CRRP $3,670 $0 $3,670 Total Transferred from Contracts to Reserve Account 3, , 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 $6,643 $0 $6,643 THIS YEAR: 5. Plus Interest Earned This Year on Reserve Funds (column A must agree with this year's CDFS 9530-A, Section II) $1 $0 $1 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 CSPP - Professional Development Contract No. $0 Subtotal $0 $0 $0 Other Contracts Contract No. $0 Subtotal $0 $0 $0 Total Transferred to Contracts from Reserve Account Ending Balance on June 30, 2016 (column A must agree with this year's CDFS 9530-A, Section IV) $6,644 $0 $6,644 COMMENTS- If necessary, attach additional sheets to explain adjustments: AUD 9530-A, Page 1 of 1 (FY ) California Department of Education 39

42 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: Community Child Care Council of Sonoma County, Inc. Fiscal Year End: June 30, 2016 Vendor No. 49-B822 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. RESERVE ACCOUNT TYPE (Check One): COLUMNA COLUMN B COLUMN C 0 Center Based AUDIT 0 Resource and Referral ADJUSTMENT PER AGENCY INCREASE OR 0 Alternative Payment (DECREASE) PER AUDIT LAST YEAR: 1. Beginning Balance (must equal ending balance from Last Year's AUD 9530-A) $30,979 $0 $30, Plus Transfers from Contracts to Reserve Account (based 1; on last year's post-audit CDFS 9530, Section IV):... Contract No. $0 $0 $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) $2,361 $2, Ending Balance on Last Year's Post-Audit CDFS 9530 $28,618 $0 $28,618 THIS YEAR: 5. Plus Interest Earned This Year on Reserve Funds (column A must agree with this year's CDFS 9530-A, Section II) $6 $0 $6 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 CSPP - Professional Development 1 :::...,::~:.. ii' Contract No. $0 Subtotal $0 $0 $0 Other Contracts.. Contract No. $0 Subtotal $0 $0 $0 Total Transferred to Contracts from Reserve Account Ending Balance on June 30, 2016 (column A must agree with this year's CDFS 9530-A, Section IV) $28,624 $0 $28,624 COMMENTS -If necessary, attach additional sheets to explain adjustments: ;... AUD 9530-A, Page 1 of 1 (FY ) California Department of Education 40

43 AUDITED RESERVE ACCOUNT ACTIVITY REPORT Agency Name: Community Child Care Council of Sonoma County, Inc. Fiscal Year End: June 30, 2016 Vendor No. 49-B822 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. RESERVE ACCOUNT TYPE (Check One): COLUMN A COLUMN B COLUMN C GJ Center Based Resource and Referral D Alternative Payment LAST YEAR: PER AGENCY AUDIT ADJUSTMENT INCREASE OR (DECREASE) PER AUDIT 1. Beginning Balance (must equal ending balance from Last Year's AUD 9530-A) $82,673 $0 $82, Plus Transfers from Contracts to Reserve Account (based.< on last year's post-audit CDFS 9530, Section IV): Contract No. CCTR $23 $0 $23 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 $82,696 $0 $82,696 THIS YEAR: 5. Plus Interest Earned This Year on Reserve Funds (column A must agree with this year's CDFS 9530-A, Section II) $17 $0 $17.: >:.: :.... :. 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):.':... I. CSPP - General. : :: :.. :..;.,.:.. c :;. ::....: Contract No. $0 CSPP - Professional Development :... Contract No. $0 Subtotal $0 $0 $0 Other Contracts 1.::; : Contract No. $0 Subtotal $0 $0 $0 Total Transferred to Contracts from Reserve Account Ending Balance on June 30, 2016 (column A must agree with this year's CDFS 9530-A, Section IV) $82,713 $0 $82,713 COMMENTS - If necessary, attach additional sheets to explain adjustments: AUD 9530-A, Page 1 of 1 (FY ) California Department of Education 41

44 AUDITED FISCAL REPORT for Resource and Referral Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CRRP Independent Auditor's Name: Randoleh Scott & Company, CPA's, Inc. COLUMN A COLUMN B COLUMN C AUDIT CUMULATIVE CUMULATIVE ADJUSTMENT FISCAL YEAR PER FISCAL YEAR PER INCREASE OR FORM CDFS 2507 SECTION I -REVENUE AUDIT (DECREASE) RESTRICTED INCOME County Maintenance of Effort (EC 8279) $0 $0 $0 Other {Specify): Fee for Service Subtotal $645 $75 $720 TRANSFER FROM RESERVE (Resource & Referral Only) 0 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $645 $75 $720 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $105,769 ($379) $105, Classified Salaries 30, , Employee Benefits 23, , Books and Supplies 4,550 (254) 4, Services and Other Operating Expenses 59, , /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 $223,993 ($151) $223,842 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 2507, Page 1 of 2 (FY ) California Department of Education 42

45 AUDITED FISCAL REPORT for Resource and Referral Programs Agency Name: Community Child Care Council of Sonoma Count~, Inc. Vendor No Fiscal Year End: June 30, 2016 Contract No. CRRP COLUMNA COLUMN B COLUMN C CUMULATIVE FISCAL YEAR PER FORM CDFS 2507 AUDIT ADJUSTMENT INCREASE OR (DECREASE) CUMULATIVE FISCAL YEAR PER AUDIT SECTION Ill- SUPPLEMENTAL REVENUE Enhancement Funding $3,685 ($3,685) $0 TOTAL SUPPLEMENTAL REVENUE $3,685 ($3,685) $0 SECTION IV- SUPPLEMENTAL EXPENSES EXPENSES RELATED TO SUPPLEMENTAL REVENUE 1000 Certificated Salaries $0 $0 $ Classified Salaries Employee Benefits Books and Supplies 527 (527) Services and Other Operating Expenses 3,503 (3,503) Equipment/Other Capital Outlay 0 Depreciation or Use Allowance 0 Indirect Costs 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 TOTAL SUPPLEMENTAL EXPENSES $4,030 ($4,030) $0 COMMENTS- If necessary, attach additional sheets to explain adjustments: AUD 2507, Page 2 of 2 (FY ) Cal1forma Department of Education 43

46 AUDITED FISCAL REPORT for Child Development CCIP Support Contracts Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CCIP-5060 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-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 SECTION I - REVENUE RESTRICTED INCOME Match Requirement $0 $6,664 $0 $6,664 County Maintenance of Effort (EC 8279) 0 Other (Specify): Fee for Services Subtotal $0 $7,009 $0 $7,009 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME Match Requirement 0 TOTAL REVENUE $0 $7,009 $0 $7,009 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $31,738 $447 $32, Classified Salaries Employee Benefits 0 5,061 (446) 4, Books and Supplies 0 1,106 (6) 1, Services and Other Operating Expenses 0 2, , /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 $40,340 $1 $40,341 TOTAL ADMINISTRATIVE COSTS (included in section II above) $0 $4,906 $0 $4,906 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 9529-CCIP, Page 1 of 2 (FY ) California Department of Education 44

47 AUDITED FISCAL REPORT for Child Development Support Contracts Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No 49-B822 Fiscal Year End: June 30, 2016 Contract No. CHST-5060 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 PER FORM 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 '176 $49 $1, Classified Salaries 51 (12) Employee Benefits Books and Supplies 3,545 (6) 3, Services and Other Operating Expenses 215 (37) /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 $5,247 $0 $5,247 TOTAL ADMINISTRATIVE COSTS (included in section 11 above) $0 $787 $0 $787 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 of2 (FY ) California Department of Education 45

48 AUDITED FISCAL REPORT for CaiWORKS, Alternative Payment or Family Child Care Home Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CAPP Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. Column A Column B Column C CUMULATIVE FISCAL AUDIT ADJUSTMENT CUMULATIVE FISCAL YEAR PER FORM INCREASE OR YEAR PER AUDIT SECTION I -REVENUE CDFS 9500-AP (DECREASE) RESTRICTED INCOME Child Nutrition Programs $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Other (Specify): Fee for Service 1,783 1,783 Subtotal $1,783 $0 $1,783 TRANSFER FROM RESERVE (Alternative Payment Only) 0 FAMILY FEES FOR CERTIFIED CHILDREN 74,968 74,968 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $76,751 $0 $76,751 SECTION II - REIMBURSABLE EXPENSES Direct Payments to Providers $1,550,451 $0 $1,550, Certificated Salaries 120, , Classified Salaries 115, , Employee Benefits 45,701 45, Books and Supplies 10,194 (853) 9, Services and Other Operating Expenses 50, , /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 $1,892,756 $0 $1,892,756 TOTAL ADMINISTRATIVE COSTS (included in Section II above) $70,748 ($1) $70,747 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 46

49 AUDITED FISCAL REPORT for CaiWORKS, Alternative Payment or Family Child Care Home Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. C2AP Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. Column A Column B Column C CUMULATIVE FISCAL AUDIT ADJUSTMENT CUMULATIVE FISCAL YEAR PER FORM INCREASE OR YEAR PER AUDIT SECTION I - REVENUE CDFS 9500-AP (DECREASE) RESTRICTED INCOME Child Nutrition Programs $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Other (Specify): Fee for Service 5,441 5,441 Subtotal $5,441 $0 $5,441 TRANSFER FROM RESERVE (Alternative Payment Only) 0 FAMILY FEES FOR CERTIFIED CHILDREN 150, ,097 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME SECTION II - REIMBURSABLE EXPENSES TOTAL REVENUE $155,538 $0 $155,538 Direct Payments to Providers $3,371 '194 $0 $3,371, Certificated Salaries 233,215 (1) 233, Classified Salaries 248,812 (1) 248, Employee Benefits 90,853 (1) 90, Books and Supplies 23,957 (2,051) 21, Services and Other Operating Expenses 114,615 2, , /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 $4,082,646 ($1) $4,082,645 TOTAL ADMINISTRATIVE COSTS (included in Section II above) $155,964 $0 $155,964 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 47

50 AUDITED FISCAL REPORT for CaiWORKS, Alternative Payment or Family Child Care Home Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No Fiscal Year End: June 30, 2016 Contract No. C3AP Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. Column A Column 8 Column C CUMULATIVE FISCAL YEAR PER FORM AUDIT ADJUSTMENT INCREASE OR CUMULATIVE FISCAL YEAR PER AUDIT SECTION I - REVENUE CDFS 9500-AP (DECREASE) RESTRICTED INCOME Child Nutrition Programs $0 $0 $0 County Maintenance of Effort (EC 8279) 0 Uncashed Checks to Providers 0 Other (Specify): Fee for Service 3,422 3,422 Subtotal $3,422 $0 $3,422 TRANSFER FROM RESERVE (Alternative Payment Only) 0 FAMILY FEES FOR CERTIFIED CHILDREN 157, ,645 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $161,067 $0 $161,067 SECTION II -REIMBURSABLE EXPENSES Direct Payments to Providers $1,933,665 $1 $1,933, Certificated Salaries 141, , Classified Salaries 128, , Employee Benefits 50,745 (1) 50, Books and Supplies 16,141 (1,407) 14, Services and Other Operating Expenses 70,796 1,407 72, /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 $2,341,536 $1 $2,341,537 TOTAL ADMINISTRATIVE COSTS (included in Section II above) $107,111 $0 $107,111 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 48

51 Name: AUDITED ATTENDANCE AND FISCAL PORT for California State Preschool Programs Community Child Care Council of Sonoma County, Inc. Vendor Nc Fiscal Year Ended: June 30, ~ Independent Auditor's Name: Randol Contract No. CSPP SECTION I -CERTIFIED CHILDREN DAYS OF ENROLLMENT Three and Four Full-time-plus 0/ds FISCAL YEAR PER FORM CDFS 8501 NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the program., attach additional sheets to ents: AUD 8501, Page 1 of 4 (FY ) California Department of Education 49

52 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No Fiscal Year Ended: June 30, 2016 Contract No. CSPP SECTION II - r.nl IIMI\1 A NONCERTIFIED CHILDREN COLUMN B COLUMN C COLUMN D_ (;OLUMN E Report all children who were not certified, but who were CUMULATIVE ADJUSTED DAYS AUDIT r.iimiii served at the same sites as certified children. 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 Three-quar'"'',-tir,,., '"" ocunime Three and Four Year Olds Full-tit. '" ~-'Ius Full-time Three-qual'"''.,-ti;, '" One-half-time Exceptional Needs Full-time-plus Full-time Three-quar'"'' ;:,-lir,,"' One-half-time Limited and Non-English Proficient Full-time-plus Full-time Three-quarters-time One-half-time At Risk of Abuse or f'vt:7glect Full-til,,.,.plus Full-time Three-quarters-time One:-,,alf-time Severely Disabled Full-,i,' oc-flius Full-time Three-quarters-time ~ - One:-,alf.ime!TOTAL DAYS OF ENROLLMENT 1,255-1,255 1, !Comments- If necessary, attach additional sheets to explain adjustments: AUD 8501, Page 2 of 4 (FY ) California De p artment of Education 50

53

54 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No Fiscal Year End: June 30, 2016 Contract No. CSPP 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 $0 Other (Specify): 8,192 (8, 192) 0 TOTAL SUPPLEMENTAL REVENUE $8,192 ($8, 192) $0 SECTION VI- SUPPLEMENTAL EXPENSES EXPENSES RELATED TO SUPPLEMENTAL REVENUE 1000 Certificated Salaries $0 $0 $ Classified Salaries Employee Benefits Books and Supplies 2,241 (2,241) Services and Other Operating Expenses EquipmenUOther Capital Outlay 6,017 (6,017) 0 Depreciation or Use Allowance 0 Indirect Costs 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 Other: e.g., Entertainment Expenses 0 TOTAL SUPPLEMENTAL EXPENSES $8,258 ($8,258) $0 COMMENTS- If necessary, attach additional sheets to explain adjustments: AUD 8501, Page 4 of 4 (FY ) California Department of Educa!Jon 52

55 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No Fiscal Year Ended: June 30, 2016 Contract No. CCTR Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. SECTION I -CERTIFIED CHILDREN DAYS OF ENROLLMENT COLUMN A COLUMN B COLUMN C COLUMN D COLUMN 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-time-plus Full-time Three-quar,.,, ~-tir, '" - - ~ ~ '" ooaoo oiooov FCCH Infants (up to 18 months) Full-time plus Full-time Three-quarters-time oc ooaonoo ~ ~ - Toddlers (18 up to 36 months) Full-time-plus Full-time 1,447 1~ , Three-quar'"'',..,j,,,, On-half-time...0.!!..0_ - Three Years and Older Full-time-plus Full-time J.1l 1.QOO Three-quar,,, :>-d'''"' One-half-time Jl.Q_ Jl.Q_ ~ Exceptional Needs Full-time-plus Full-time _ Three-quar'"'' :>-d'''"' One-half-time ~ - Limited and Non-English Proficient FL I'-';~. -~'"~ Full-time _1_.1_()()_ - Three-quar,,, :>-tir,,, One-half-time ~ At Risk of Abuse or Neglect Full-til"" -~1 ' Full-time _1_.1_00 - Thrcc.no,;, One-half-time ~ - Full-tirrc-~1 Severely Disabled Full-time ,;, Three-qL One-half-time ~ -!TOTAL DAYS OF ENROLLMENT 2,320 18!DAYS OF OPERATION 249 -!DAYS OF ATTENDANCE 2, ,338 0 NO NONCERTIFIED CHILDREN -Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the progran Comments - If necessary, attach additional sheets to ~~ents: 2~ AUD 9500, Page 1 of 4 (FY ) California Department of Education 53

56 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No Fiscal Year Ended: June 30, 2016 Contract No. CCTR SECTION II- NONCERTIFIED CHILDREN rnr ''"""'A COLlJMN B COLUMN C COl limn D COl limn 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 lnfaf~~~ti~~~~s 18 months) Full-time Three-quar,._, ~-,,, '" Ono:: ooan-<ioooo:: FCCH Infants (up to 18 months) Full-time plus Full-time Three-quarters-time Ono:: ooau-"'""' Toddlers (18 up to 36 months) Full-time-plus Full-time Three-quar.o::o ~-do,'"' nn.h"lf.hm<> Three Years and Older Full-time-plus Full:time Three-quar,._, ~-do,'" One: ooau-tir""' Exceptional Needs Full-time-plus Full-time Three-quart..,"-d,,'" One-half-time Limited and Non-English OVIIvlt;;I/L Full-tim<>-nl ~ Full-time Three-quar,._, "-ti;, '" One-half-time At Risk of Abuse or, v"''d'"'"' Full-time-plus Full-time Three-quar,._, "-tir, '" One-half-time Severely ~isabled Full-time-plus Full-time Three-quar,._, "-tiro'" One-half-time - -!TOTAL DAYS OF ENROLLMENT Comments - If necessary, attach additional sheets to explain adjustments: AUD 9500, Page 2 of 4 (FY ) California Department of Education 54

57 AUDITED ATTENDANCE AND FISCAL REPORT for General or Migrant Center-Based Programs Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CCTR COLUMN A COLUMN B COLUMN C CUMULATIVE AUDIT ADJUSTMENT FISCAL YEAR PER CUMULATIVE FISCAL INCREASE OR FORM YEAR PER AUDIT (DECREASE) SECTION Ill - REVENUE CDFS 9500 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 0 Family Fees for Certified Children 4,286 4,286 Interest Earned on Apportionments 0 UNRESTRICTED INCOME Family Fees for Noncertified Children 22,167 22,167 Head Start Program (EC 8235(b)) 0 TOTAL REVENUE $26,453 $0 $26,453 SECTION IV - REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 59,165 1,701 60, Classified Salaries 20,352 20, Employee Benefits 18,695 (1,753) 16, Books and Supplies 2,139 (70) 2, Services and Other Operating Expenses 10, , /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 $111,235 ($29) $111,206 TOTAL ADMINISTRATIVE COSTS (included in section 1v above) $2,704 $2 $2,706 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): 0 YES 0 NO - Explain any discrepancies. Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO): 0 YES 0 NO - Explain any discrepancies. COMMENTS- If necessary, attach additional sheets to explain adjustments: 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 55

58 AUDITED FISCAL REPORT for Child Development Support Contracts Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CPKS-5013 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 PER FORM 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 $3,472 $0 $3, Classified Salaries Employee Benefits Books and Supplies 1,000 1, 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 $5,000 $0 $5,000 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 of2 (FY ) California Department of Education 56

59 AUDITED FISCAL REPORT for Child Development CRPM Support Contracts Agency Name: Community Child Care Council of Sonoma County, Inc. Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CRPM-3082 Contract Term From: 7/1/2013 To: 6/30/2016 Independent Auditor's Name: Randolph Scott & Company, CPA's, Inc. COLUMN A1 COLUMN A2 COLUMN B COLUMN C PRIOR YEAR'S AUD 9529-CRPM CURRENT CUMULATIVE AUDIT ENDING FISCAL YEAR THROUGH ADJUSTMENT BALANCE FOR PER FORM CURRENT INCREASE OR THIS CONTRACT CDFS FISCAL YEAR (DECREASE) (Multi-Year CRPM PER AUDIT SECTION I - REVENUE Contract Only) RESTRICTED INCOME Prorated Portion for Nonsubsidized Enrollment $0 $1,724 $0 $1,724 Subtotal $0 $1,724 $0 $1,724 INTEREST EARNED ON APPORTIONMENTS 0 UNRESTRICTED INCOME TOTAL REVENUE $0 $1,724 $0 $1,724 SECTION II - REIMBURSABLE EXPENSES 1000 Certificated Salaries $0 $0 $0 $ Classified Salaries Employee Benefits Books and Supplies 6,136 2,347 8, Services and Other Operating Expenses 6,363 34,636 (7,377) 33, /6200 Other Approved Capital Outlay 36,444 7,377 43, New Equipment (program-related) 9,930 9, Replacement Equipment (program-related) 0 Depreciation or Use Allowance 0 NONREIMBURSABLE EXPENSES Nonreimbursable Capital Outlay 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT (Subsidized and Nonsubsidized) $58,873 $36,983 $0 $95,856 FOR CDE-A&I USE ONLY: COMMENTS - If necessary, attach additional sheets to explain adjustments: AUD 9529-CRPM, Page 1 of 1 (FY ) California Department of Education 57

60 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Community Child Care Council of Sonoma County, Inc. on behalf of:!agency Name: Roseland School District Vendor Nc Fiscal Year Ended: June 30, 2016 Contract No. CSPP-5567 Independent Auditor's Name Randolph Scott & Company CPA's, Inc. COLUMNA COLUMN B COLUMN C!COLUMN D COLUIII]N E SECTION I -CERTIFIED CHILDREN CUMULATIVE ADJUSTED DAYS AUDIT CUMULATIVE FISCAL ADJUSTMENT DAYS OF ENROLLMENT FISCAL YEAR PER OF ENROLLMENT FORM CDFS 8501 ADJUSTMENTS YEAR PER Al)DIT FACTOR PER AUDIT Three and Four Year Olds Full-time-plus Full-time Three-quarters-time Or,o:: alf-tir,," 4,540 4, , t=xct:fjuunal Needs Full-time-plus Full:time Three-quarters-time Or,c,,alf-tir '" Limited and Non-English niuficient Full-time-plus Full-time _ Three-quarters-time Or,c a..-tir '" 22,148 22, , At Risk of Abuse or Neglect Full-time-plus Full-time Three-quarters-time Or '" fh,t Severely Disabled Full-time-plus Full-time Three-quarters-time Or,c,,alf-tir '" - ) TOTAL DAYS OF EN~OLLMENT 26,688 26, DAYS OF OPERATION ,DAYS OF ATTENDANCE 26,685 26,685 0 NO NONCERTIFIED CHILDREN - Check this box, omit page 2, and continue to Section III if no noncertified children were enrolled in the program. Comments - If nar.~>~!>ary attach additional sheets to explain adjustments: AUD 8501, Page 1 of 4 (FY ) California Department of Education 58

61 AUDITED ATTENDANCE AND FISCAL REPORT for California State Preschool Programs Community Child Care Council of Sonoma County, Inc. on behalf of: Agency Name: Roseland School District Vendor No Fiscal Year End: June 30, 2016 Contract No. CSPP-5567 COLUMN A COLUMN B COLUMN C CUMULATIVE FISCAL AUDIT ADJUSTMENT CUMULATIVE FISCAL YEAR PER FORM INCREASE OR YEAR PER AUDIT SECTION Ill - REVENUE CDFS 8501 (DECREASE) 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 - General 0 t-----: 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 TOTAL REVENUE $0 $0 $0 SECTION IV - REIMBURSABLE EXPENSES Direct Payments to Providers (FCCH Only) $0 $0 $ Certificated Salaries 349, , Classified Salaries 100, , Employee Benefits 116, , Books and Supplies 15,878 (513) 15, Services and Other Operating Expenses 39, , /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) 15,000 (15,000) 0 TOTAL EXPENSES CLAIMED FOR REIMBURSEMENT $636,787 ($15,000) $621,787 TOTAL ADMINISTRATIVE COSTS (included in section 1v above) $39,427 ($15,000) $24,427 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): 0 YES D NO - Explain any discrepancies. Reimbursable expenses claimed above are eligible for reimbursement, reasonable, necessary, and adequately supported (check YES or NO): 0 YES D NO - Explain any discrepancies. COMMENTS - If necessary, attach addif1onal sheets to explain adjustments: 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 Educaf1on 59

62 AUDITED FISCAL REPORT for Child Development Support Contracts Community Child Care Council of Sonoma County, Inc. on behalf of: Agency Name: Roseland School District Vendor No. 49-B822 Fiscal Year End: June 30, 2016 Contract No. CPKS-5105 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 PER FORM 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 $438 $0 $ Classified Salaries Employee Benefits Books and Supplies 1,993 1, 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 $2,500 $0 $2,500 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 of2 (FY ) California Department of Education 60