1. ________________________________________________________________________________ Members AICPA Division of Firms  Center for Public Company Audit Firms  Registered with Public Company Accounting Oversight Board 801 S. Grand Avenue, Suite 400, Los Angeles, CA 90017-4646  Member of the Government Finance Officers Association  (213) 873-1700  Fax (213) 873-1777  www.vasquezcpa.comwww.vasquezcpa.com Contact: Mr. Gilbert Vasquez, CPA  Dated: February 3 2015 Presentation to California Association for Bilingual Education

2. 2  The Engagement Team  Levels of Assurance  Audit Strategy  Summary of Audit Results a) Report of independent auditors b) Audit areas of emphasis c) Financial statements d) Report on internal control over financial reporting e) Summary of results of single audit  Required Communications AGENDA

3. 3 Gilbert Vasquez Managing Partner Benel Se-Liban Engagement Partner Arlene Cembrano Quality Control Reviewer Jonathan AgotAudit Manager Dorrett LambeyAudit Supervisor Ethan QuiambaoAudit Senior The Engagement Team

4. 4 LEVELS OF ASSURANCE

5. 5 AUDIT STRATEGY

6. 66 Summary of Audit Results

7. 77  Unmodified Opinion “Clean” Opinion  Audit performed in accordance with generally accepted auditing standards & government auditing standards  The financial statements fairly present, in all material respects, CABE’s:  Financial position  Results of operations  Changes in net assets  Cash flows REPORT OF INDEPENDENT AUDITORS

8. 8 Audit Focus AreaRisk/ConcernsFindings Cash and cash equivalents  Misappropriation of assetsNo material exceptions were noted. Accounts receivable  Receivables/revenue are recorded in the proper period  Valuation No material exceptions were noted. Accounts payable and accrued expenses  Material unrecorded liabilitiesNo material exceptions were noted. Net assets  Improper classification of the net assets as to restrictions. No material exceptions were noted. Expense allocation  Method is reasonable. No material exceptions were noted. AUDIT AREAS OF EMPHASIS

9. 9 Financial Statements

10. 10 Statements of Financial Position

11. 11 Statements of Activities

12. 12 Statements of Cash Flows

13. 13 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE  Material weakness and significant deficiencies – none noted  Noncompliance material to financial statements – none noted

14. 14 Federal Awards Internal control over its major programs:  Material weakness(es) identifiedNo  Control deficiency(ies) identified that are not considered to be material weaknesses?None reported Type of auditors’ report issued on compliance for its major programs:Unmodified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB A- 133?Yes, see Finding 14-01 Unmodified Opinion SUMMARY OF RESULTS OF THE SINGLE AUDIT

15. 15 Identification of major programs CFDA Number:Name of Federal Program or Cluster: 84.411C Dollar threshold used to distinguish between type A and type B programs: Auditee qualifies as low-risk auditee: Financial Statement Findings: Federal Award Findings: U.S. Department of Education Investing in Innovation (i3) Fund $300,000 No None For 2 out of 4 drawdowns tested, program funds were requested through advance payment and were in excess of the immediate needs of the program. SUMMARY OF RESULTS OF THE SINGLE AUDIT (Continued)

16. 16 SAS 114 – Auditors’ Required Communication to Those Charged with Governance

17. 17  Management has primary responsibility for the accounting principles used, including their consistency, application, clarity and completeness.  We are not aware of any consultations by management with other accountants about accounting or auditing matters.  We did not encounter any difficulties with management while performing our audit procedures that require the attention of the Audit Committee.  We encountered no disagreements with management on financial accounting and reporting matters as it relates to the current year financial statements.  CABE’s significant accounting policies are appropriate, and that management has applied its policies consistently with prior periods in all material respects.  No significant or unusual transactions or accounting policies in controversial or emerging areas for which there is lack of authoritative guidance or consensus were identified.  All adjustments were recorded and reflected in the audited financial statements. REQUIRED COMMUNICATIONS

18. 18  We confirm that we are independent of the Organization within the meaning of the independence, integrity and objectivity rules, regulations, interpretations, and rulings of the AICPA, the State of California Board of Accountancy, and other regulatory agencies.  No significant issues were discussed, or subject to correspondence, with management prior to retention.  No significant deficiencies or material weaknesses were identified  No irregularities, fraud or illegal acts or that would cause a material misstatement of the financial statements, came to our attention as a result of our audit procedures.  Management will provide us with a signed copy of the management representation. REQUIRED COMMUNICATIONS

19. 19 QUESTIONS? *** THANK YOU! We look forward to working closely with you and the management during the 2014-2015 audit. ________________________________________

20. 20 Benel Se-Liban, Partner – bse@vasquezcpa.combse@vasquezcpa.com Jonathan Agot, Manager – jagot@vasquezcpa.comjagot@vasquezcpa.com CONTACT INFORMATION