WEST HAVEN CHILD DEVELOPMENT CENTER, INC.

Michael Solakian, CPA 71 Harrison Avenue Branford, Connecticut 06405-3607 USA TEL: 203-483-8115 FAX: 203-483-0367 EMAIL: solakian@solakiancaiafa.com WEST HAVEN CHILD DEVELOPMENT CENTER, INC. Financial Statements and Schedules Years ended September 30, 2012 and 2011

Table of Contents Years ended September 30, 2012 and 2011 Page Independent Auditors' Report Statements of Financial Position 1 Statements of Activities 2 Statements of Functional Expenses 3 Statements of Cash Flows 4 Notes to Financial Statements 5-8 Supplementary Information Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 9-10 Report on Compliance with Requirements Applicable to Each Major Program, on Internal Control Over Compliance in Accordance with the State Single Audit Act 11 12 Schedule of Expenditures of State Financial Assistance and Related Notes 13 Schedule of Findings and Questioned Costs State Financial Assistance 14-15

Michael Solakian, CPA 71 Harrison Avenue Branford, Connecticut 06405-3607 USA TEL: 203-483-8115 FAX: 203-483-0367 EMAIL: solakian@solakiancaiafa.com To the Board of Directors West Haven Child Development Center, Inc.: INDEPENDENT AUDITORS' REPORT We have audited the accompanying statements of financial position of West Haven Child Development Center, Inc. as of September 30, 2012 and 2011, and the related statements of activities, functional expenses and cash flows for the years then ended. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of West Haven Child Development Center, Inc. at September 30, 2012 and 2011, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2012 on our consideration of the Organization s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and 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 Government Auditing Standards and should be considered in assessing the results of our audits. Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Solakian, Caiafa & Company, LLC December 31, 2012 THIS REPORT IS ISSUED WITH THE UNDERSTANDING THAT WHILE IT MAY BE REPRODUCED IN ITS ENTIRETY, EXTRACTS FROM IT OR REFERENCES TO IT SHALL FIRST BE SUBMITTED FOR OUR WRITTEN APPROVAL.

Statements of Financial Position September 30, 2012 and 2011 Assets 2012 2011 Cash and equivalents $ 170,660 255,771 Grants and accounts receivable 239,804 148,804 Inventory 1,110 - Prepaid expenses 7,392 31,100 Property and equipment, net of accumulated depreciation 16,368 20,250 $ 435,334 455,925 Liabilities and Net Assets Accounts payable and accrued expenses $ 36,397 36,026 Registration fee deposits 4,950 6,429 Total liabilities 41,347 42,455 Net assets: Unrestricted net assets 390,129 409,162 Temporarily restricted net assets 3,858 4,308 Total net assets 393,987 413,470 $ 435,334 455,925 See accompanying notes to financial statements. 1

Statements of Activities Years ended September 30, 2012 and 2011 Unrestricted 2012 Temporarily restricted Support and revenue: Government grants $ 1,174,617-1,174,617 1,153,796-1,153,796 Service and program fees 482,596-482,596 432,742-432,742 Contributions and other grants 23,076 23,076 16,566 16,566 Fundraising 15,558-15,558 17,385-17,385 Investment and other income 4,788-4,788 9,573-9,573 Net assets released from restrictions 450 (450) - 450 (450) - Total support and revenue 1,701,085 (450) 1,700,635 1,630,512 (450) 1,630,062 Expenses: Program 1,521,321-1,521,321 1,394,911-1,394,911 Management and general 188,728-188,728 232,833-232,833 Fundraising 10,069-10,069 9,332-9,332 Total Unrestricted 2011 Temporarily restricted Total expenses 1,720,118-1,720,118 1,637,076-1,637,076 Increase (decrease) in net assets (19,033) (450) (19,483) (6,564) (450) (7,014) Net assets beginning of year 409,162 4,308 413,470 415,726 4,758 420,484 Total Net assets end of year $ 390,129 3,858 393,987 409,162 4,308 413,470 See accompanying notes to financial statements. 2

Statements of Functional Expenses Years ended September 30, 2012 and 2011 2012 Management Program and general Fundraising Salaries $ 945,221 148,236-1,093,457 902,719 147,000-1,049,719 Employee benefits 356,260 - - 356,260 276,338 25,400-301,738 Payroll taxes 90,582 - - 90,582 74,759 11,005-85,764 Food 73,786 - - 73,786 72,028 - - 72,028 Supplies 16,295 11,530 10,069 37,894 23,589 11,125 9,332 44,046 Contractual services 4,224 23,287-27,511 2,670 28,065-30,735 Insurance 9,114 1,500-10,614 1,200 7,282-8,482 Rent 8,500 500-9,000 8,500 500-9,000 Training and travel 5,077 - - 5,077 17,822 - - 17,822 Repairs and maintenance 4,871 - - 4,871 5,864 - - 5,864 Other expenses 2,571 1,850-4,421 4,097 1,078-5,175 Depreciation 3,882 - - 3,882 3,945 - - 3,945 Telephone 938 1,825-2,763 1,380 1,378-2,758 Total functional expenses $ 1,521,321 188,728 10,069 1,720,118 1,394,911 232,833 9,332 1,637,076 Total 2011 Management Program and general Fundraising Total See accompanying notes to financial statements. 3

Statements of Cash Flows Years ended September 30, 2012 and 2011 2012 2011 Cash flows from operating activities: Increase (decrease) in net assets $ (19,483) (7,014) Adjustments to reconcile change in net assets to net cash used in operating activities: Depreciation and amortization 3,882 3,945 Decrease (increase) in operating assets: Grants and contracts receivable (91,000) (32,540) Inventory (1,110) 186 Prepaid expenses 23,708 (390) Increase (decrease) in operating liabilities: Accounts payable and accrued expenses 371 15,081 Registration fee deposits (1,479) 674 Net decrease in cash and equivalents (85,111) (20,058) Cash and equivalents beginning of year 255,771 275,829 Cash and equivalents end of year $ 170,660 255,771 See accompanying notes to financial statements. 4

Notes to Financial Statements September 30, 2012 and 2011 (1) Summary of Significant Accounting Policies Nature of Activities The West Haven Child Development Center, Inc. (Center) is a not-for-profit corporation organized under the laws of the state of Connecticut for the purpose of providing a comprehensive daycare and preschool program in West Haven, CT. Financial Statement Presentation The Center follows accounting for not-for-profit organizations as outlined in professional standards. The Center is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. The Center records restricted contributions whose restrictions are met in the same reporting period as unrestricted contributions. Restricted and Unrestricted Revenue and Support The Center also records contributions under professional standards governing accounting for contributions received and contributions made. Contributions are recognized as unrestricted, temporarily restricted or permanently restricted support, depending on the existence or nature of any donor restrictions when a promise is made that is, in substance, unconditional. Donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Donated Materials and Services The Center records donated equipment as contributions at their estimated fair values at the date of donation. The Center also recognizes as contributions any services requiring specialized skills. In addition to these services, volunteers donate time and perform a variety of tasks that assist the Center at the administrative office and daycare facilities. The value of such services has not been recognized in the accompanying financial statements as they do not meet the criteria for recognition under professional standards. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the Center to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 5 (Continued)

Notes to Financial Statements (1) Summary of Significant Accounting Policies (continued) Cash and Equivalents and Concentration of Risk The Center considers all highly liquid investments with a maturity date of six months or less to be cash equivalents. The Center also maintains its cash in bank accounts which, at times, may exceed federally insured limits. The Center has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash equivalents. Property and Equipment Property and equipment is carried at cost or, if donated, at the approximate fair value at the date of donation. The Center s policy is to capitalize property and equipment with an original cost or, if donated, a fair value at the date of donation of at least $1,000 and a useful life in excess of five years. Property and equipment, including leasehold improvements, is depreciated or amortized using the straight-line method. Equipment purchased with certain temporarily restricted contributions is considered to be owned by the grantor until fully depreciated and therefore is recorded as temporarily restricted net assets. The Center reclassifies temporarily restricted net assets to unrestricted net assets each period for the depreciation expenses related to these assets. The amount of temporarily restricted assets as of September 30, 2012 and 2011 was $3,858 and $4,308, respectively. Income Tax Status The Center is exempt from federal income taxes pursuant to provisions of Section 501(c) (3) of the Internal Revenue Code and has been classified as other than a private foundation. The Center has adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FASB ASC 740-10). As a result of the implementation, the Center did not recognize any liability for uncertain tax positions. The Center s returns for 2011, 2010 and 2009 are generally subject to examination for three years after they were filed. Expense Allocation The costs of providing various programs and other activities have been summarized on a functional basis in the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have been allocated among programs and supporting services benefited. Subsequent Events Subsequent events have been evaluated through December 31, 2012, which is the date the financial statements were available to be issued. 6 (Continued)

Notes to Financial Statements (2) Property and Equipment Property and equipment consists of the following as of September 30, 2012 and 2011: 2012 2011 Playground equipment $ 27,593 27,593 Office equipment 11,947 11,947 Kitchen and bathroom equipment 21,687 21,687 61,227 61,227 Less accumulated depreciation 44,859 40,977 (3) Operating Leases Property and equipment, net $ 16,368 20,250 The Center rents its administrative offices and day care facilities on a month to month basis from the City of West Haven ( City ). The rent is below fair market value, and management has not recorded any in-kind amounts in the accompanying financial statements. Rent charged to expense under this agreement for both of the years ended September 30, 2012 and 2011 was $9,000. (4) Employee Benefit Plan The Company has a 403(b) Profit Sharing Plan (Plan) which covers all full-time employees who are eligible for benefits. Employees may defer a portion of their salaries for deposit into an individual investment account. Employer contributions are made at the discretion of the Board of Directors based on a percentage of the employee's compensation to the total compensation of all employees. Employer contributions to the Plan totaled approximately $55,700 and $55,100 for the years ended September 30, 2012 and 2011, respectively. 7 (Continued)

Notes to Financial Statements (5) Major Revenue and Support The Center has entered into an agreement with the City to act as its Delegate Agency to provide daycare services to children who qualify for the daycare and preschool programs. Under the terms of the Delegate Agency contract, which is renewed annually, the Center receives reimbursement under a fee for service agreement from federal and state agencies which are passed through the City, to fund a substantial portion of the Center's operating costs. The Center received approximately $1,175,000 or 69% of its operating revenue and support, under direct or pass through fee for service agreements with various governmental agencies. Any significant decrease or elimination in these contracts would have a major adverse impact on the operations of the Center. The payments received from the state agencies are subject to audit as well as an ultimate determination of the allowability of program costs. Any disallowance subsequent to the completion of any program could result in additional liabilities to the Center. 8

Michael Solakian, CPA 71 Harrison Avenue Branford, Connecticut 06405-3607 USA TEL: 203-483-8115 FAX: 203-483-0367 EMAIL: solakian@solakiancaiafa.com 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 To the Board of Directors West Haven Child Development Center, Inc.: We have audited the financial statements of West Haven Child Development Center, Inc. as of and for the year ended September 30, 2012, and have issued our report thereon dated December 31, 2012. 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. Internal Control over Financial Reporting In planning and performing our audit, we considered the Organization s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control over financial reporting. 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. Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal con-trol over financial reporting that we consider to be material weaknesses, as defined above. 9 (Continued)

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization'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. This report is intended solely for the information and use of the audit committee, management, others within the Organization and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Solakian, Caiafa & Company, LLC December 31, 2012 10

Michael Solakian, CPA 71 Harrison Avenue Branford, Connecticut 06405-3607 USA TEL: 203-483-8115 FAX: 203-483-0367 EMAIL: solakian@solakiancaiafa.com REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE STATE SINGLE AUDIT ACT To the Board of Directors West Haven Child Development Center, Inc.: Compliance We have audited the compliance of West Haven Child Development Center, Inc. ( Organization ) with the types of compliance requirements described in the Office of Policy and Management Compliance Supplement that could have a direct and material effect on each of the Organization s major state programs for the year ended September 30, 2012. The major state programs are identified in the summary of auditor s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major state programs is the responsibility of the Organization s management. Our responsibility is to express an opinion on the Organization s compliance based on our audit. 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 State Single Audit Act (C.G.S. Sections 4-230 to 4-236). Those standards and the State Single Audit Act 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 state program occurred. An audit includes examining, on a test basis, evidence about the Organization 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. Our audit does not provide a legal determination of the Organization s compliance with those requirements. In our opinion, the Organization complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major state programs for the year ended September 30, 2012. 11 (Continued)

Internal Control Over Compliance Management of the Organization is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to state programs. In planning and performing our audit, we considered the Organization s internal control over compliance with the requirements that could have a direct and material effect on a major state program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the State Single Audit Act, 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 the Organization 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 state 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 noncompliance with a type of compliance requirement of a state program will not be prevented, or detected and corrected, on a timely basis. Our consideration of 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 deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of State Financial Assistance We have audited the basic financial statements of the Organization as of and for the year ended September 30, 2012, and have issued our report thereon dated December 31, 2012. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying Schedule of Expenditures of State Financial Assistance is presented for purposes of additional analysis as required by the State Single Audit Act and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the audit committee, management, the Office of Policy and Management, and state awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Solakian, Caiafa & Company, LLC December 31, 2012 12

Schedule of Expenditures of State Financial Assistance Year ended September 30, 2012 State Grantor Program Title State Grant Program Contract Number Identification Number Expenditures Department of Education: School Readiness 11000-SDE64000-12113 $ 508,620 Child Day Care Program 11000-SDE64000-12520 328,849 Total State Financial Assistance $ 837,469 Notes to Schedule Various departments and agencies of the State of Connecticut have provided financial assistance to West Haven Child Development Center, Inc. through grants and other authorizations in accordance with the General Statutes of the State of Connecticut. These financial assistance programs also fund various related programs. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Organization conform to generally accepted accounting principles as applicable to tax-exempt authorities. The following is a summary of the more significant policies relating to the aforementioned grant programs. Basis of Accounting The financial statements contained in the Organization s annual audit report are prepared on the accrual basis of accounting. The following is a summary of such basis: Revenues are recognized when earned. Expenditures are recorded when incurred. The Schedule of Expenditures of State Financial Assistance, contained in this report, is prepared based on regulations established by the State of Connecticut Office of Policy and Management. In accordance with these regulations (Section 4-236-5), certain grants are not dependent on expenditure activity, and accordingly, are considered to be expended in the fiscal year of receipt. These grant program receipts are reflected in the expenditures column of the Schedule of Expenditures of State Financial Assistance. 13

Schedule of Findings and Questioned Costs State Financial Assistance Year ended September 30, 2012 I. Summary of Audit Results Financial Statements Type of auditor s report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? yes X no Significant deficiencies identified? yes X none reported Noncompliance material to financial statements noted? yes X no State Financial Assistance Internal control over major programs: Material weakness (es) identified? yes X no Significant deficiencies identified? yes X none reported Type of auditor s report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Section 4-236-24 of the Regulations to the State Single Audit Act? yes X no The following schedule reflects the major programs included in the audit: State Grant Program State Grantor and Program Identification Number Expenditures Department of Education: School Readiness 11000-SDE64000-12113 $ 508,620 Child Day Care Program 11000-SDE64000-12520 $ 328,849 Dollar threshold used to distinguish between type A and type B programs $ 100,000 14 (Continued)

II. Summary of Findings Related to Financial Statements Required Under Generally Accepted Government Auditing Standards We issued reports, dated December 31, 2012, on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. Our report on compliance indicated no reportable instances of noncompliance. Our report on internal control over financial reporting indicated no instances of material weaknesses or significant deficiencies. III. Findings and Questioned Costs for State Financial Assistance No findings or questioned costs are reported relating to state financial assistance. 15

Michael Solakian, CPA 71 Harrison Avenue Branford, Connecticut 06405-3607 USA TEL: 203-483-8115 FAX: 203-483-0367 EMAIL: solakian@solakiancaiafa.com To the Finance Committee West Haven Child Development Center, Inc.: We have audited the financial statements of West Haven Child Development Center, Inc. (Center) for the year ended September 30, 2012 and have issued our report thereon dated December 31, 2012. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted and Government Auditing Standards As stated in our engagement letter dated April 23, 2012, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatements. Because an audit is designed to provide reasonable, but not absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or illegal acts may exist and not be detected by us. As part of our audit, we considered the internal control structure of the Center. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control structure. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Center s compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Center are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended September 30, 2012. We noted no transactions entered into by the Center during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There were no material estimates that we needed to evaluate.

Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 31, 2012. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a second opinion on certain situations. If a consultation involves application of an accounting principle to the Center s financial statements or a determination of the type of auditor s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Center s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. ******* This information is intended solely for the use of the Finance Committee, Board of Directors, and management of the Center, Inc. and should not be used for any other purpose. Solakian, Caiafa & Company, LLC December 31, 2012