BHEF Govvernance Letter Draft FY20

February __, 2021 To the Board of Directors Business Higher Education Forum 2025 M St NW, Suite 800 Washington, D.C. 20036 We have audited the financial statements of Business Higher Education Forum for the year ended September 30, 2020, and have issued our report thereon dated February __, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter dated December 3, 2020 Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Business Higher Education Forum are described in Note 2 to the financial statements. As described in Note 2, Business Higher Education Forum changed accounting policies related to its financial statement presentation by adopting FASB Accounting Standards Update (ASU) 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made during 2020. Accordingly, the accounting change has been retrospectively applied to prior periods presented as if the policy had always been used. We noted no transactions entered into by Business Higher Education Forum 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. 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 events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was: Management’s estimate of revenue recognized on grants and cooperative agreements is based on direct expenses charged to those grants and cooperative agreements and allocated indirect expenses. We evaluated the key factors and assumptions used to develop the recognition of contract revenue in determining that it is reasonable in relation to the financial statements taken as a whole. Given the significance of revenue recognition to the financial statements, our audit procedures included tests of expense transactions to determine that direct and indirect costs are accumulated in the appropriate cost pools. The financial statement disclosures are neutral, consistent, and clear. DRAFT Business Higher Education Forum February __, 2021 Page 2 of 3 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the audit. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February __, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to Business Higher Education Forum’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as Business Higher Education Forum’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. DRAFT Business Higher Education Forum February __, 2021 Page 3 of 3 Other Reporting Issues The footnotes disclose the adoption of FASB Accounting Standards Update (ASU) 2018-08 Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made which changes the presentation of Business Higher Education Forum’s financial statements. As a result of adopting ASU 2018-08, the following changes are reflected in the 2020 financial statements:  An emphasis of matter paragraph was included in the auditors’ report.  New financial statement disclosures: o Membership Revenue has been added to the Summary of Significant Accounting Policies, defining revenue recognition as well as the related deferred revenue. This information is intended solely for the use of the Board of Directors and management of Business Higher Education Forum and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Rubino & Company, Chartered DRAFT