1. June 16-17, 2016 OPEN – AUD – INFO 3-2 UNIVERSITY OF MISSOURI SYSTEM – BOARD OF CURATORS PRESENTED BY: RACHEL DWIGGINS, CPA & DANIELLE SOLOMON, CPA BKD NATIONAL HIGHER EDUCATION GROUP

2. June 16-17, 2016 OPEN – AUD – INFO 3-3 OUR GOALS FOR TODAY Attachments – Written communication with BKD Audit Approach Appendix: Personnel Audit TimelineAppendix: About BKD, LLP Engagements

3. June 16-17, 2016 OPEN – AUD – INFO 3-4 ENGAGEMENTS  Audit of financial statements of:  University of Missouri System  Capital Region Medical Center  Single Audit in accordance with OMB Uniform Guidance  Minimum Agreed-Upon Procedures required by NCAA for:  Columbia  Kansas City

4. June 16-17, 2016 OPEN – AUD – INFO 3-5 AUDIT TIMELINE  Preliminary audit work  Pre-audit planning meeting – April 13, 2016  Interim procedures, risk assessment and other planning – April/May 2016  Student financial aid testing – June 2016  Final audit work  Fieldwork procedures – August/September/October 2016  Issuance of financial statement audit – October 2016  Additional federal program testing – November/December 2016  NCAA procedures – November/December 2016

5. June 16-17, 2016 OPEN – AUD – INFO 3-6 AUDIT APPROACH – APPLICABLE FRAMEWORK  Financial reporting  U.S. Generally Accepted Accounting Principles  Auditing standards  Auditing standards generally accepted in the United States of America  Government Auditing Standards  Compliance  Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)

6. June 16-17, 2016 OPEN – AUD – INFO 3-7 AUDIT APPROACH – PLANNING  Risk assessment  Obtain an understanding of business and business environment  Interviews with management  Review of Board minutes and presentations  Evaluate where financial statements might be susceptible to material misstatement or fraud  Consider internal controls over financial reporting and whether they have been implemented  Perform walkthrough tests of controls  Review duties of employees for issues in control structure  Assess risk of material misstatement for significant financial statement amounts and disclosures

7. June 16-17, 2016 OPEN – AUD – INFO 3-8 AUDIT APPROACH – PRELIMINARY RISK ASSESSMENT  Financial Statement  Valuation of investments  Revenue recognition  Valuation of receivables and third-party payors  Presentation of net position  Other  Compliance  Risk management  Risk assessment procedures may identify others

8. June 16-17, 2016 OPEN – AUD – INFO 3-9 AUDIT APPROACH – NEW STANDARDS  GASB No. 72, Fair Value Measurement and Application  Additional note disclosures  GASB No. 73 and GASB No. 76  No anticipated effect on financial statements

9. June 16-17, 2016 OPEN – AUD – INFO 3-10 APPENDIX – BKD AUDIT PERSONNEL & ROLES NameRoleContact Details Abe ColeClient Relationship PartnerPhone: (816) 701-0226 E-mail: acole@bkd.com Rachel DwigginsLead Engagement PartnerPhone: (816) 489-4033 E-mail: rdwiggins@bkd.com Danielle SolomonHealthcare Engagement PartnerPhone: (314) 236-5176 E-mail: dsolomon@bkd.com Mary McKinleyConcurring Review PartnerPhone: (502) 963-0854 E-mail: mmckinley@bkd.com Ryan SivillEngagement Senior Manager for SystemPhone: (417) 522-0508 E-mail: rsivill@bkd.com Allison SwatersEngagement Senior Manager for Health System Phone: (816) 701-0248 E-mail: aswaters@bkd.com Jean NybergEngagement Director for CRMCPhone: (417) 865-8701 E-mail: jnyberg@bkd.com

10. June 16-17, 2016 OPEN – AUD – INFO 3-11 APPENDIX – ABOUT BKD  Annual Revenue: $496M  12th largest U.S. firm (Inside Public Accounting, 2015)  2,400 employees, including approximately 260 partners  Network of 34 offices serves clients in all 50 states & internationally  Largest North American member of Praxity, AISBL, a global alliance of independent firms

11. June 16-17, 2016 OPEN – AUD – INFO 3-12 WRITTEN COMMUNICATION WITH BKD