accounting auditing

September 8, 2016

Audit Committee Disabled Citizens Foundation Champaign, Illinois

We have audited the financial statements of Disabled Citizens Foundation (the Foundation) for the year ended June 30, 2016, and have issued our report thereon dated September 8, 2016. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated July 12, 2016. Professional standards also require that we communicate to you the following information related to our audit:

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Foundation are described in Note 2 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the Foundation 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. The most sensitive estimate affecting the financial statements was management’s estimate of the useful lives of property and equipment. The useful lives are based upon the expected amount of time that the property and equipment will be in service for the operations of the Organization based on past experience. We evaluated the key factors and assumptions used to develop the estimated useful lives in determining that they were reasonable in relation to the financial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

2507 South Neil St. Champaign, Illinois 61820 Phone 217.351.2000 Fax 217.351.7726

CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

www. mhfa.net

Disabled Citizens Foundation Page 2 September 8, 2016 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 clearly trivial, and communicate them to the appropriate level of management.

• Management may choose not to correct certain misstatements due to qualitative and

quantitative factors, such as materiality. If applicable, these uncorrected misstatements are summarized on the attached Audit Difference Evaluation Form. Management has determined that their effects are immaterial, both individually and in the aggregate to the financial statements taken as a whole.

• The attached Adjusting, Eliminating, and/or Reclassifying Journal Entry Reports, as applicable, summarize misstatements that were corrected by management. These entries were either (1) provided by management or (2) identified during the performance of audit procedures and proposed to, discussed with, and approved by management.

Disagreements with Management

For purposes of this letter, a disagreement with management is 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 September 8, 2016. 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 Foundation’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.

Disabled Citizens Foundation Page 3 September 8, 2016 Other Audit 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 Foundation’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 Audit Committee, Board of

Directors, and management of the Foundation and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours, MARTIN, HOOD, FRIESE & ASSOCIATES, LLC

David W. Hood, CPA

10/10/2016 9:23 AM

Client: 3230 - Disabled Citizens Foundation Engagement: AUD - 3230 Disabled Citizens Foundation Period Ending: 6/30/2016 Trial Balance: TB Workpaper: TB-03 - Reclassifying Journal Entries Report

Account Description W/P Ref Debit Credit

Reclassifying Journal Entries JE # 1 N-02

2035 Current Portion of Notes Payable 28,865.00 2790 Current Portion of Notes Payable (Contra) 28,865.00

Total 28,865.00 28,865.00

To reclassify a portion of long term notes payable to the current portion, according to the refinanced amortization table. Discussed with and amount provided by Scott Burner, Accounting Manager, 8/4/16

1 of 1