REPORT TO THE BOARD OF DIRECTORS

MEALS ON WHEELS FOR WESTERN NEW YORK, INC. AND RELATED ENTITY

DECEMBER 31, 2015

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June 29, 2016 Board of Directors Meals on Wheels for Western New York, Inc. and Related Entity 100 James E. Casey Drive Buffalo, New York 14206 We are pleased to present this report related to our audit of the consolidated financial statements of Meals on Wheels for Western New York, Inc. and Related Entity for the year ended December 31, 2015. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for Meals on Wheels for Western New York, Inc. and Related Entity’s financial reporting process. This report is intended solely for the information and use of the Board of Directors and management and is not intended to be and should not be used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have about this report. We appreciate the opportunity to continue to be of service to Meals on Wheels for Western New York, Inc. and Related Entity.

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Contents

Required Communications ....................................................................................................................................... 3 - 4

Summary of Significant Accounting Estimates ......................................................................................................... 5 - 6

Summary of Recorded Audit Adjustments ..................................................................................................................... 7

Exhibit A - Letter Communicating Control Deficiencies in Internal Control Over Financial Reporting ...................... 8 - 9

Exhibit B - Certain Written Communications Between Management and Our Firm ..................................................... 10

Engagement Letter

Representation Letter

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Required Communications

Generally accepted auditing standards (AU-C 260, The Auditor’s Communication with Those Charged with Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the consolidated financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process.

Area Comments

Our Responsibilities with regard to the Financial Statement Audit

Our responsibilities under auditing standards generally accepted in the United States of America have been described to you in our arrangement letter dated April 14, 2016. Our audit of the consolidated financial statements does not relieve management or those charged with governance of their responsibilities which are also described in that letter.

Overview of the Planned Scope and Timing of the Financial Statement Audit

We have issued a separate communication regarding the planned scope and timing of our audit and have discussed with you our identification of and planned audit response to significant risks of material misstatement.

Accounting Policies and Practices Preferability of Accounting Policies and Practices

Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice.

Adoption of, or Change in, Accounting Policies

Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Organization. The Organization did not adopt any significant new accounting policies nor have there been any changes in existing significant accounting policies during the current period.

Significant or Unusual Transactions

We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Management’s Judgments and Accounting Estimates

Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates in the attached “Summary of Significant Accounting Estimates.”

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Area Comments

Basis of Accounting The consolidated financial statements were prepared on assumption that the entity will continue as a going concern.

Audit Adjustments Audit adjustments proposed by us and recorded by the Organization are shown on the attached “Summary of Recorded Audit Adjustments.”

Uncorrected Misstatements There were no uncorrected misstatements identified during the current year audit.

Disagreements with Management We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the consolidated financial statements.

Consultations with Other Accountants We are not aware of any consultations management had with other accountants about accounting or auditing matters.

Significant Issues Discussed with Management

No significant issues arising from the audit were discussed with or the subject of correspondence with management.

Significant Difficulties Encountered in Performing the Audit

We did not encounter any significant difficulties in dealing with management during the audit.

Letter Communicating Control Deficiencies in Internal Control over Financial Reporting

We have separately communicated the control deficiencies in internal control over financial reporting identified during our audit of the consolidated financial statements, and this communication is attached as Exhibit A.

Certain Written Communications Between Management and Our Firm

Copies of certain written communications between our firm and the management of the Organization, including the representation letter provided to us by management, are attached as Exhibit B.

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Meals on Wheels for Western New York, Inc. and Related Entity Summary of Significant Accounting Estimates

Year Ended December 31, 2015

Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events and certain assumptions about future events. You may wish to monitor throughout the year the process used to determine and record these accounting estimates. The following describes the significant accounting estimates reflected in the Organization’s December 31, 2015 consolidated financial statements.

Estimate

Accounting Policy

Management’s Estimation Process

Basis for Our

Conclusions on Reasonableness

of Estimate Building and Equipment Depreciation

Management depreciates building and equipment additions over the estimated useful lives of the assets.

Management has been consistent in applying lives used for each class of asset.

The lives used to estimate depreciation appear reasonable.

Pledges and Accounts Receivable Allowance

Management estimates and establishes an allowance for doubtful accounts based on collection history and current credit conditions.

At year-end, management reviews the pledges, grants and accounts receivable detail and identifies old or questionable receivables and establishes a reserve.

Management’s process to evaluate receivables and establish an allowance appears reasonable.

Present Value of Pledges Receivable

Pledges receivable that are expected to be collected in future years are recorded at the present value of estimated future cash flows.

The discount on pledges receivable to be collected in future years is computed using a risk-adjusted interest rate applicable at the date of the pledge.

Management’s process for discounting pledges receivable expected to be collected is not likely to result in a material misstatement.

Functional Expenditures

Management estimates expenditures by functional class of major program services and supporting activities.

At year-end, management reviews and identifies expenditures attributable to a particular functional category and allocates expenditures that relate to more than one functional category.

The process used by management appears reasonable.

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Estimate

Accounting Policy

Management’s Estimation Process

Basis for Our Conclusions on Reasonableness

of Estimate Investments

The Organizations’ investments are valued at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, the Plan follows FASB ASC Topic 820, “Fair Value Measurements,” as it defines fair value and establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels of Level 1, 2, or 3.

Management has described the valuation techniques used for valuing investments at fair value in the consolidated financial statement footnotes. Additionally, management has broken out the investment into Level 1, 2, or 3 based on valuation hierarchy.

Management’s process to evaluate fair value and establish the fair value hierarchy for its investments appears reasonable.

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Meals on Wheels for Western New York, Inc. and Related Entity Summary of Recorded Audit Adjustments

Year Ended December 31, 2015

Effect — Increase (Decrease)

Description Assets Liabilities Equity Revenue Expense

To adjust discount on multiyear pledges receivable.

$ 3,300 $ - $ - $ 3,300 $ -

To adjust rental income to be recorded on the straight-line basis.

(3,549)

- - (3,549) -

To adjust At Your Service revenues.

(5,815)

- - (5,815) -

To adjust short-term and long-term pledges receivable in the amount of $13,686. - - - - -

Total Pretax Effect (6,064) $ (6,064) $ -

Balance Sheet Effect (Pretax) $ (6,064) $ - $ (6,064)

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Exhibit A – Letter Communicating Control Deficiencies in Internal Control Over Financial Reporting

To Management and Board of Directors of Meals on Wheels for Western New York, Inc. and Related Entity In planning and performing our audit of the consolidated financial statements of Meals on Wheels for Western New York, Inc. and Related Entity (the “Organization”) as of and for the year ended December 31, 2015, in accordance with auditing standards generally accepted in the United States of America, we considered the Organization's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Certain deficiencies in internal control that have been previously communicated to you, in writing, by us or by others within your organization are not repeated herein. Following are descriptions of other identified deficiencies in internal control that we determined did not constitute significant deficiencies or material weaknesses: Multiyear Pledges Receivable Pledges receivable expected to be collected in future years are recorded at the present value of estimated future cash flows. The related discounts should be computed using a risk-adjusted interest rate applicable to the date of the pledge. During our audit, we noted that management did not adjust the period used in the calculation to coincide with the remaining years for each pledge. This treatment is not in accordance with ASC 958 but the calculated variance was determined not to be material to the consolidated financial statements. We recommend that the Organization ensure their practice is in accordance with the accepted accounting policy related to pledges receivable.

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Adherence with Capitalization Policy Our audit procedures identified that capital expenditures less than $1,000 have been capitalized in several instances during the year. This is identified in the Organization’s capitalization policy, which requires that only asset purchases of greater than $1,000 are recorded as fixed assets. We recommend that the Organization adhere to its written policies so there is a consistent application of the capitalization of fixed assets within the Organization. Adherence to Investment Policies During our audit, we noted certain discrepancies between the year end investment balance allocation and the established investment policies adopted by the Board. We noted at December 31, 2015, the Organization’s investment allocation consisted of 82% equities compared to the investment policy’s allocation guideline of an upper limit of 80% total equities. The purpose of the adoption of an investment policy is to set forth the overall investment philosophy of the Organization as decided by its governing board. The policy should be the guiding rule and it should be followed and monitored for compliance. We suggest the Organization take steps to ensure that a quarterly monitoring of the investment mix is in line with the policy. A copy of the investment policy should be provided to the investment manager and reviewed at each meeting with the investment committee. An investment policy is a very effective means of protecting the assets of the Organization, and we suggest that a procedure be implemented and ensure it is monitored by the investment committee. Cyber Security The Organization currently does not have a technology vulnerability management and penetration testing program to protect itself from cybersecurity threats. New vulnerabilities and new attacker exploits are identified almost daily, leaving the Organization susceptible to attack. In addition, hardware and software vendors are releasing security upgrades on a routine basis which can be difficult for IT departments to keep current on, a testing program helps assure the proper security is in place. Periodic internal and external vulnerability and penetration testing should be performed at least annually to identify potential vulnerabilities and improve the security of your network, or whenever a significant change is made to the IT environment that could increase the potential to be compromised. This communication is intended solely for the information and use of management and the Board of Directors and is not intended to be, and should not be, used by anyone other than these specified parties.

Buffalo, NY June 24, 2016 .

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Exhibit B – Certain Written Communications Between Management and Our Firm

Engagement Letter – see attached Representation Letter – see attached