Page 7 - MIC3 Annual Report 2017

“A few days short of graduation we received
news that Hailey would walk, we were beyond

thrilled. We will never know the lengths everyone
went through to make this happen, but we will be
forever grateful. Thank you all so very much.”
—Kristi Queen

Financial Outlook MIC3 Annual Audit

ANNUAL DUES PAYMENTS To the Board of Directors
Military Interstate Children’s Compact Commission
FOR FISCAL YEAR 2018* Lexington, Kentucky
based on total amount due of $594,645
We have audited the financial statements of the Military Interstate
*AS OF 1 OCT 2017 Children’s Compact Commission (the Compact) for the year ended
June 30, 2017, and have issued our report thereon dated as of the
date of this letter. 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 to you in our letter dated July 23,
2017 and our engagement letter dated May 14, 2017. Professional
standards also require that we communicate to you the following
information related to our audit.
$98,484
SIGNIFICANT AUDIT FINDINGS
Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate
$496,161 accounting policies. In accordance with the terms of our engagement
letter, we will advise management about the appropriateness of
43 STATES PAID accounting policies and their application. The significant accounting
policies used by the Compact are described in Note 1 to the financial
(86%) statements. No new accounting policies were adopted and the
application of existing policies was not changed during 2017. We
noted no transactions entered into by the Compact 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.
TOTAL PAID 86% TOTAL OWED 14%
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
“The dues formula shall be based on the figure of one dollar events and assumptions about future events. Certain accounting
per child of military families eligible for transfer under this estimates are particularly sensitive because of their significance to
compact, and beginning in FY 2014 this calculation shall be the financial statements and because of the possibility that future
based upon the State in which each military family resides, events affecting them may differ significantly from those expected.
except that effective FY 2013, and each year thereafter,
no state dues assessment shall exceed the sum of sixty
thousand dollars ($60,000.00) per year and effective FY 2014, Difficulties Encountered in Performing the Audit
and each year thereafter, no state dues assessment shall be We encountered no significant difficulties in dealing with
less than two thousand dollars ($2,000.00).” management in performing and completing our audit.

7 FY 2017 ANNUAL REPORT | OCTOBER 2017