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McPhillipsobertseans~~,~

Certified Public Accountants &Business Advisors

INDEPENDENT AUDITOR'S REPORT

To the Board of DirectorsHampton Roads Educational Telecommunications Association, Inc.

Norfolk, Virginia

We have audited the accompanying financial statements of Hampton Roads EducationalTelecommunications Association, Inc. (WHRO), which comprise the statement of financial position asof June 30, 2016, and the related statements of activities and cash flows for the year then ended, and therelated notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes

the design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with auditing standards generally accepted in the United States of

America. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation of

the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.

Town Point Center, Suite 1100 ~ 150 Baush Street ~ Norfolk, VA 23 51 0-1 638 ~ Office 757.640.7190 ~ Fax 757.640.7297 ~ www.mrdcpa.cam

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?if]b[ 1/01+ U Xcbcf YghUV`]g\YX U hfigh bUa]b[ RCMJ Ug h\Y ]bWcaY VYbYZ]W]Ufm cZ U W\Uf]hUV`Y `YUXUbbi]hm hfigh k\]W\ ]g \Y`X k]h\ Ub ibfY`UhYX h\]fX dUfhm- PbXYf h\Y hYfag cZ h\Y gd`]h,]bhYfYghU[fYYaYbh+ RCMJ ]g hc fYWY]jY 3' cZ h\Y ZU]f aUf_Yh jU`iY cZ h\Y hfigh UbbiU``m Zcf ]hg [YbYfU`gW]Ybh]Z]W UbX YXiWUh]cbU` igY ibh]` h\Y Xcbcfog XYUh\- <h h\Y h]aY cZ h\Y Xcbcfog XYUh\+ h\Y hfigh ]g hchYfa]bUhY+ UbX h\Y fYaU]b]b[ hfigh UggYhg UfY hc VY X]ghf]VihYX hc ch\Yfg- O\Y fYWY]jUV`Y Zcf h\Y gd`]h,]bhYfYgh U[fYYaYbh ]g WUff]YX Uh ZU]f jU`iY+ k\]W\ RCMJ \Ug Ygh]aUhYX VUgYX cb h\Y dfYgYbh jU`iY cZ]hg YldYWhYX ZihifY WUg\ ]bZ`ckg- O\Y Jf[Ub]nUh]cb fYWY]jYX &71+13/ Zfca h\Y hfigh ]b 1/05+ k\]W\ kUgfYWcfXYX Ug U fYXiWh]cb ]b h\Y fYWY]jUV`Y UbX U WcffYgdcbX]b[ fYW`Ugg]Z]WUh]cb Zfca hYadcfUf]`mfYghf]WhYX hc ibfYghf]WhYX bYh UggYhg- Jb Ub UbbiU` VUg]g+ RCMJ fYjU`iYg h\Y gd`]h,]bhYfYgh U[fYYaYbhfYWY]jUV`Y VUgYX cb Udd`]WUV`Y acfhU`]hm hUV`Yg UbX WiffYbh aUf_Yh WcbX]h]cbg- O\Y Jf[Ub]nUh]cbfYWcfXYX Ub ]bWfYUgY )XYWfYUgY* ]b h\Y jU`iY cZ h\Y gd`]h,]bhYfYgh U[fYYaYbh cZ )&11+4/8* UbX &30/+007 Zcfh\Y mYUfg YbXYX EibY 2/+ 1/05 UbX 1/04+ fYgdYWh]jY`m-

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

00

FGL= 3 k LGO=JJA?@LK

DbhUb[]V`Y UggYhg k]h\ Z]b]hY `]jYg UfY Uacfh]nYX cjYf h\Y]f Ygh]aUhYX igYZi` `]jYg- ?if]b[ h\Y mYUfYbXYX EibY 2/+ 1///+ RCMJ YbhYfYX ]bhc Ub U[fYYaYbh hc gY`` cbY cZ ]hg Yl]gh]b[ VfcUXWUgh]b[ hckYfgUbX h\Y fY`UhYX f][\h hc WcbghfiWh U bYk X][]hU` hckYf UbX hc `YUgY h\Y `UbX fY`UhYX hc h\Y hckYfg ibXYfU h\]fhm,Z]jY mYUf [fcibX `YUgY- Db Wcbg]XYfUh]cb Zcf h\Y gU`Y UbX h\Y Z]fgh hYb mYUfg cZ h\Y [fcibX `YUgY+RCMJ fYWY]jYX &0+64/+/// ]b WUg\+ h\Y f][\h hc igY h\Y Yl]gh]b[ hckYf Zcf UbU`c[ VfcUXWUgh]b[ )ibh]`h\Y UbU`c[ g][bU` ]g d\UgYX cih* UbX h\Y f][\h hc VfcUXWUgh ]hg g][bU` Zfca h\Y bYk hckYf Zcf h\]fhm,Z]jYmYUfg-

OckYf f][\hg Uh EibY 2/+ 1/05 UbX 1/04 UfY Ug Zc``ckg9

1/05 1/04Bfcgg>Uffm]b[<acibh

<WWiai`UhYX<acfh]nUh]cb

Bfcgg>Uffm]b[<acibh

<WWiai`UhYX<acfh]nUh]cb

OckYf f][\hg & 1+141+476 & 0+247+/37 & 1+141+476 & 0+20/+856

<acfh]nUh]cb YldYbgY Zcf YUW\ cZ h\Y mYUfg YbXYX EibY 2/+ 1/05 UbX 1/04 kUg &36+/70- AihifYYgh]aUhYX Uacfh]nUh]cb YldYbgY ]g Ug Zc``ckg9

TYUf <acibh1/06 & 36+/701/07 36+/701/08 36+/701/1/ 36+/701/10 36+/70

O\YfYUZhYf 548+023

OchU` & 783+428

FGL= 4 k AFN=KLE=FLK

DbjYghaYbhg Uh EibY 2/+ 1/05 UbX 1/04 Wcbg]gh cZ h\Y Zc``ck]b[9

1/05 1/04HcbYmaUf_Yh ZibXg & 25+/22 & 072+4/8A]lYX ]bWcaY 4+/20+707 3+546+8/5@ei]h]Yg 3+/84+678 2+867+468

OchU` ]bjYghaYbhg & 8+052+53/ & 7+708+883

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

01

DbjYghaYbh ]bWcaY )`cgg* Zcf h\Y mYUfg YbXYX EibY 2/+ Wcbg]ghg cZ h\Y Zc``ck]b[9

1/05 1/04DbjYghaYbh ]bWcaY & 442+267 & 43/+186=fc_Yf ZYYg )46+450* )5/+012*MYU`]nYX [U]b cb ]bjYghaYbhg 12+485 140+52/PbfYU`]nYX `cgg cb ]bjYghaYbhg )585+561* )5/0+776*

OchU` ]bjYghaYbh ]bWcaY )`cgg* & )066+148* & 018+806

DbjYghaYbh ]bWcaY )`cgg* ]g fYWcfXYX ]b h\Y Zc``ck]b[ bYh UggYh WUhY[cf]Yg ]b h\Y ghUhYaYbhg cZ UWh]j]h]YgZcf h\Y mYUfg YbXYX EibY 2/9

1/05 1/04PbfYghf]WhYX bYh UggYhg & )066+148* & 026+5/8OYadcfUf]`m fYghf]WhYX bYh UggYhg , )6+581*

OchU` ]bjYghaYbh ]bWcaY )`cgg* & )066+148* & 018+806

FGL= 5 k >8AJ N8DM=G> >AF8F;A8D AFKLJME=FLK

RCMJ \Ug WYfhU]b UggYhg h\Uh UfY jU`iYX ig]b[ U ZU]f jU`iY \]YfUfW\m- O\Y h\fYY `YjY`g cZ ZU]f jU`iY\]YfUfW\m Zcf fYWiff]b[ ZU]f jU`iY aYUgifYaYbhg UfY df]cf]h]nYX VUgYX cb h\Y ]bdihg hc jU`iUh]cbhYW\b]eiYg igYX hcaYUgifY ZU]f jU`iY UbX UfY Ug Zc``ckg9

" GYjY` 0 r eichYX df]WYg ]b UWh]jY aUf_Yhg Zcf ]XYbh]WU` UggYhg-

" GYjY` 1 r cVgYfjUV`Y ]bdihg h\Uh ]bW`iXY eichYX aUf_Yh df]WYg Zcf g]a]`Uf UggYhg; eichYX aUf_Yhdf]WYg h\Uh UfY bch ]b Ub UWh]jY aUf_Yh; cf ch\Yf ]bdihg h\Uh UfY cVgYfjUV`Y UbX WUb VYWcffcVcfUhYX Vm cVgYfjUV`Y aUf_Yh XUhU Zcf giVghUbh]U``m h\Y Zi`` hYfa cZ h\Y UggYhg-

" GYjY` 2 r ibcVgYfjUV`Y ]bdihg h\Uh UfY giddcfhYX Vm `]hh`Y cf bc aUf_Yh UWh]j]hm UbX h\Uh UfYg][b]Z]WUbh hc h\Y ZU]f jU`iY cZ h\Y UggYhg- GYjY` 2 UggYhg ]bW`iXY Z]bUbW]U` ]bghfiaYbhg k\cgYjU`iY ]g XYhYfa]bYX ig]b[ df]W]b[ acXY`g+ X]gWcibhYX WUg\ Z`ck aYh\cXc`c[]Yg cf g]a]`UfhYW\b]eiYg+ Ug kY`` Ug ]bghfiaYbhg Zcf k\]W\ h\Y XYhYfa]bUh]cb cZ ZU]f jU`iY fYei]fYg g][b]Z]WUbhaUbU[YaYbh ^iX[aYbh cf Ygh]aUh]cb-

O\Y Zc``ck]b[ hUV`Yg dfYgYbh RCMJog UggYhg h\Uh UfY aYUgifYX Uh ZU]f jU`iY cb U fYWiff]b[ VUg]g ZcfYUW\ \]YfUfW\m `YjY` Uh EibY 2/+ 1/05 UbX 1/049

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

02

1/05GYjY` 0 GYjY` 1 GYjY` 2 OchU`

HcbYm aUf_Yh ZibXg & 25+/22 & , & , & 25+/22

A]lYX ]bWcaY VcbXgPN , 3+620+554 , 3+620+554B`cVU` , 2//+042 , 2//+042

OchU` Z]lYX ]bWcaY VcbXg , 4+/20+707 , 4+/20+707

@ei]hm ZibXgPN 1+783+5/0 , , 1+783+5/0B`cVU` 017+484 , , 017+484DbhYfbUh]cbU` 0+/61+482 , , 0+/61+482OchU` Yei]hm ZibXg 3+/84+678 , , 3+/84+678

OchU` ]bjYghaYbhg & 3+020+711 & 4+/20+707 & , & 8+052+53/

Nd`]h ]bhYfYgh U[fYYaYbh & , & , & 0+/20+281 & 0+/20+281

1/04GYjY` 0 GYjY` 1 GYjY` 2 OchU`

HcbYm aUf_Yh ZibXg & 072+4/8 & , & , & 072+4/8

A]lYX ]bWcaY VcbXgDbhYfaYX]UhY , 4/2+713 , 4/2+713BcjYfbaYbh `cb[,hYfa , 2+/06+63/ , 2+/06+63/>cfdcfUhY \][\ m]Y`X , 683+305 , 683+305B`cVU` , 230+815 , 230+815

OchU` Z]lYX ]bWcaY VcbXg , 3+546+8/5 , 3+546+8/5

@ei]hm ZibXgGUf[Y WUd [fckh\ 423+011 , , 423+011GUf[Y WUd jU`iY 424+864 , , 424+864NaU`` WUd WcfY 421+76/ , , 421+76/NaU`` WUd [fckh\ 437+028 , , 437+028KiV`]W fYU` YghUhY 0/4+387 , , 0/4+387?YjY`cdYXaUf_Yhg 0+076+384 , , 0+076+384@aYf[]b[aUf_Yhg 423+37/ , , 423+37/

OchU` Yei]hm ZibXg 2+867+468 , , 2+867+468

OchU` ]bjYghaYbhg & 3+051+/77 & 3+546+8/5 & , & 7+708+883

Nd`]h ]bhYfYgh U[fYYaYbh & & & 0+025+030 & 0+025+030

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

03

O\Y Zc``ck]b[ hUV`Yg dfYgYbh U fYWcbW]`]Uh]cb cZ UggYhg ]b k\]W\ g][b]Z]WUbh ibcVgYfjUV`Y ]bdihg)GYjY` 2* kYfY igYX hc XYhYfa]bY ZU]f jU`iY Zcf h\Y mYUfg YbXYX EibY 2/+ 1/05 UbX 1/049

1/05 1/04AU]f jU`iY+ VY[]bb]b[ cZ mYUf & 0+025+030 & 7/7+312>Ug\ fYWY]jYX Zfca gd`]h ]bhYfYgh U[fYYaYbh )71+13/* )71+3//*>\Ub[Y ]b jU`iY cZ gd`]h ]bhYfYgh U[fYYaYbh )11+4/8* 30/+007

AU]f jU`iY+ YbX cZ mYUf & 0+/20+281 & 0+025+030

FGL= 6 k HJGH=JLQ 8F< =IMAHE=FL

KfcdYfhm UbX Yei]daYbh Uh EibY 2/+ 1/05 UbX 1/04 Wcbg]gh cZ h\Y Zc``ck]b[9

1/05 1/04GUbX & 266+566 & 266+566=i]`X]b[g UbX ]adfcjYaYbhg 4+247+4/6 4+242+740Aifb]g\]b[g UbX Yei]daYbh 10+132+664 10+036+547

15+868+848 15+768+075GYgg UWWiai`UhYX XYdfYW]Uh]cb )1/+574+243* )08+626+005*

KfcdYfhm UbX Yei]daYbh+ bYh & 5+183+5/4 & 6+031+/6/

FGL= .- k DAF=G> ;J=<AL

RCMJ \Ug U &4+4//+/// `]bY cZ WfYX]h k]h\ P=N =Ub_ PN< UbX \UX U VU`UbWY cZ &2+11/+657 UbX&2+327+170 cihghUbX]b[ cb h\Y `]bY Uh EibY 2/+ 1/05 UbX 1/04+ fYgdYWh]jY`m- <XjUbWYg cb h\Y WfYX]h `]bYUfY dUmUV`Y cb XYaUbX+ k]h\ ]bhYfYgh Uh U jUf]UV`Y fUhY YeiU` hc h\Y 2/ XUm GcbXcb DbhYf,=Ub_ JZZYfYXMUhY )GD=JM*+ d`ig 1-//'+ k\]W\ kUg 1-11' UbX 1-08' Uh EibY 2/+ 1/05 UbX 1/04+ fYgdYWh]jY`m- O\YWfYX]h `]bY ]g Wc``UhYfU`]nYX Vm U`` RCMJ ]bjYghaYbh UWWcibhg \Y`X Vm P=N UbX WUb VY hYfa]bUhYX UhUbm h]aY-

FGL= .. k ;8HAL8D D=8K=K H8Q89D=

RCMJ \Ug UWei]fYX &186+300 cZ WcadihYf UbX Wcd]Yf Yei]daYbh ig]b[ WUd]hU` `YUgYg k]h\ hYfag Zfcah\fYY hc Z]jY mYUfg UbX Ub ]adihYX ]bhYfYgh fUhY Zfca 1-8/' hc 4-60'-

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

04

AihifY a]b]aia `YUgY dUmaYbhg UfY Ug Zc``ckg9

TYUf <acibh1/06 & 32+5351/07 17+6681/08 17+6681/1/ 17+6681/10 3+685

023+668GYgg Uacibh fYdfYgYbh]b[ ]bhYfYgh )6+118*

OchU` WUd]hU` `YUgYg dUmUV`Y 016+44/GYgg WiffYbh dcfh]cb )3/+465*

OchU` `cb[,hYfa WUd]hU` `YUgYg dUmUV`Y & 75+863

FGL= ./ k =EHDGQ== 9=F=>AL HD8FK

RCMJ aU]bhU]bg U s3/2)V* fYh]fYaYbh d`Ub )h\Y K`Ub* WcjYf]b[ bcb,`YUgYX Yad`cmYYg+ bch WcjYfYX VmU Wc``YWh]jY VUf[U]b]b[ U[fYYaYbh+ UbX hYadcfUfm dUfh h]aY Yad`cmYYg k\c \UjY UWWiai`UhYX 0+///\cifg ]b U K`Ub mYUf- @ad`cmYYg aUm Wcbhf]VihY hc h\Y K`Ub giV^YWh hc h\Y `]a]hUh]cbg ]adcgYX Vm h\YDbhYfbU` MYjYbiY NYfj]WY- RCMJ aU_Yg U X]gWfYh]cbUfm Wcbhf]Vih]cb Zcf YUW\ Y`][]V`Y Yad`cmYYogWcadYbgUh]cb hc h\Y K`Ub- @ad`cmYf Wcbhf]Vih]cbg Zcf h\Y mYUfg YbXYX EibY 2/+ 1/05 UbX 1/04 hchU`YX&0/5+174 UbX &000+450+ fYgdYWh]jY`m-

FGL= .0 k 9G8J<<=KA?F8L=<F=L8KK=LK

=cUfX XYg][bUhYX bYh UggYhg ]bW`iXY eiUg],YbXckaYbh ZibXg k\]W\ Wcbg]ghg cZ ibfYghf]WhYX ]bWcaYk\]W\ h\Y VcUfX \Ug XYg][bUhYX Zcf dfc[fUa UbX giddcfh]b[ gYfj]WYg igY- O\YgY eiUg],YbXckaYbhZibXg Zc``ck h\Y gdYbX]b[ dc`]Wm cZ RCMJ YbXckaYbhg Ug X]gWiggYX ]b IchY 04- N]bWY U`` VcUfXXYg][bUhYX bYh UggYhg fYgi`h Zfca Ub ]bhYfbU` XYg][bUh]cb+ h\Ym UfY bch Wcbg]XYfYX hYadcfUf]`mfYghf]WhYX+ Vih UfY W`Ugg]Z]YX UbX fYdcfhYX Ug ibfYghf]WhYX bYh UggYhg-

=cUfX XYg][bUhYX bYh UggYhg Uh EibY 2/+ 1/05 UbX 1/04 UfY UjU]`UV`Y Zcf h\Y Zc``ck]b[ difdcgYg9

1/05 1/04Kfc[fUa UbX giddcfh]b[ gYfj]WYg & 8+/61+65/ & 7+800+/72

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

05

FGL= .1 k J=KLJA;L=< F=L8KK=LK

MYghf]WhYX bYh UggYhg Uh EibY 2/+ 1/05 UbX 1/04 UfY UjU]`UV`Y Zcf h\Y Zc``ck]b[ difdcgYg9

1/05 1/04

OYadcfUf]`m fYghf]WhYX@XiWUh]cb & 0+580+1/6 & 1+213+312Kfc[fUaa]b[ 0+/76+407 0+025+261QY\]W`Yg 0/+213 ,

OchU` hYadcfUf]`m fYghf]WhYX bYh UggYhg & 1+678+/38 & 2+35/+684

KYfaUbYbh`m fYghf]WhYX@XiWUh]cb & 0//+/// & 0//+///Kfc[fUaa]b[ 14+/// 14+///

OchU` dYfaUbYbh`m fYghf]WhYX bYh UggYhg & 014+/// & 014+///

IYh UggYhg kYfY fY`YUgYX Zfca Xcbcf fYghf]Wh]cbg Xif]b[ h\Y mYUfg YbXYX EibY 2/+ 1/05 UbX 1/04 Vm]bWiff]b[ YldYbgYg gUh]gZm]b[ h\Y difdcgYg cf h]aY fYghf]Wh]cbg gdYW]Z]YX Vm Xcbcfg Ug Zc``ckg9

1/05 1/04

@XiWUh]cb & 626+305 & 578+832Kfc[fUaa]b[ 038+234 71+3//QY\]W`Yg 18+565 ,

OchU` bYh UggYhg fY`YUgYX Zfca fYghf]Wh]cbg & 805+326 & 661+232

FGL= .2 k =F<GOE=FLK

RCMJog YbXckaYbh Wcbg]ghg df]aUf]`m cZ ZibXg XYg][bUhYX Vm ]hg =cUfX cZ ?]fYWhcfg Ug kY`` UgXcbcf,fYghf]WhYX YbXckaYbh ZibXg UbX UfY W`Ugg]Z]YX UbX fYdcfhYX VUgYX cb h\Y Yl]ghYbWY cfUVgYbWY cZ Xcbcf,]adcgYX fYghf]Wh]cbg-

'<B2>;5;4 &<.>1E? (;@2>=>2@.@5<; <3 ).C O\Y =cUfX cZ ?]fYWhcfg \Ug ]bhYfdfYhYX h\Y Pb]Zcfa KfiXYbhHUbU[YaYbh cZ Dbgh]hih]cbU` AibXg <Wh )PKHDA<* Ug fYei]f]b[ h\Y dfYgYfjUh]cb cZ h\Y ZU]f jU`iY cZh\Y cf][]bU` []Zh Ug cZ h\Y []Zh XUhY cZ h\Y Xcbcf,fYghf]WhYX YbXckaYbh ZibXg UVgYbh Yld`]W]h Xcbcfgh]di`Uh]cbg hc h\Y WcbhfUfm- RCMJ W`Ugg]Z]Yg Ug dYfaUbYbh`m fYghf]WhYX bYh UggYhg )U* h\Y cf][]bU` jU`iYcZ []Zhg XcbUhYX hc h\Y dYfaUbYbh YbXckaYbh+ )V* h\Y cf][]bU` jU`iY cZ giVgYeiYbh []Zhg hc h\YdYfaUbYbh YbXckaYbh+ UbX )W* UWWiai`Uh]cbg hc h\Y dYfaUbYbh YbXckaYbh aUXY ]b UWWcfXUbWY k]h\h\Y X]fYWh]cb cZ h\Y Udd`]WUV`Y Xcbcf []Zh ]bghfiaYbh Uh h\Y h]aY h\Y UWWiai`Uh]cb ]g UXXYX hc h\Y ZibX-O\Y fYaU]b]b[ dcfh]cb cZ h\Y Xcbcf,fYghf]WhYX YbXckaYbh ZibX h\Uh ]g bch W`Ugg]Z]YX ]b dYfaUbYbh`mfYghf]WhYX bYh UggYhg ]g W`Ugg]Z]YX Ug hYadcfUf]`m fYghf]WhYX bYh UggYhg ibh]` h\cgY Uacibhg UfYUddfcdf]UhYX Zcf YldYbX]hifY Vm RCMJ- Db UWWcfXUbWY k]h\ PKHDA<+ RCMJ Wcbg]XYfg h\YZc``ck]b[ ZUWhcfg ]b aU_]b[ U XYhYfa]bUh]cb hc Uddfcdf]UhY cf UWWiai`UhY Xcbcf,fYghf]WhYXYbXckaYbh ZibXg9

@8EHLGF JG8<K =<M;8LAGF8D L=D=;GEEMFA;8LAGFK 8KKG;A8LAGF* AF;,

IJO@N OJ ADI<I>D<G NO<O@H@ION

06

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McPhillips/o'~berts~K~PLC

Certified Public Accountants &Business Advisors

INDEPENDENT AUDITOR'S REPORTON SUPPLEMENTAL INFORMATION

To the Board of DirectorsHampton Roads Educational Telecommunications Association, Inc.Norfolk, Virginia

We have audited the financial statements of Hampton Roads Educational TelecommunicationsAssociation, Inc. as of and for the year ended June 30, 2016, and have issued our report thereon datedSeptember 12, 2016, which contained an unmodified opinion on those financial statements. Our auditwas performed for the purpose of farming an opinion on the 2016 financial statements as a whole.

The following schedules of functional expenses and changes in property and equipment are presented forpurposes of additional analysis and are not a required part of the financial statements. Such information isthe responsibility of management and was derived from and relates directly to the underlying accountingand other records used to prepare the financial statements. The information has been subjected to theauditing 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 otherrecords used to prepare the financial statements or to the financial statements themselves, and otheradditional procedures in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the information is fairly stated in all material respects in relation to thefinancial statements taken as a whole.

The June 30, 2015 supplemental information of Hampton Roads Educational TelecommunicationsAssociation, Inc. was audited by other auditors, whose report dated October 23, 2015, expressed anunmodified opinion. Certain 2015 amounts have been reclassified to conform with the current yearpresentation. The reclassifications had no impact on results of operations as previously reported.

September 12, 2016Norfolk, Virginia

Town Point Center, Suite 1100 ~ 150 Boush Street ~ Norfolk, VA 23510-1638 ~ Office 757.640.7190 ~ Fax 757.640.7297 ~ www.mrdcpa.com

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